Dubai Multi Commodities Centre (DMCC) announced yesterday it is proposing to build a cotton trade corridor through Dubai with the objective of establishing the emirate as a key link in the global cotton supply chain.
Imports and re-exports through Dubai were nominal with major re-export destinations being Pakistan and Algeria.
The memorandum of understanding, which coincided with the recent visit to the UAE of Islam Karimov, the Uzbekistan President, was signed by Ahmed bin Sulayem, Executive Chairman, DMCC, and Mirzakhidov Khurshid, Chairman of the State Joint Stock Company, Uzprommashimpeks.
Elyor M Ganiev, the Uzbekistan Minister of Foreign Economic Relations and International Trade, who was present at the signing ceremony, said: “Uzbekistan and the UAE have a history of friendly relations, and we look forward to building on this through strengthening our economic partnerships.
According to the terms of the memorandum of understanding, Uzbekistan’s cotton exports will be routed through the proposed cotton distribution hub in Dubai, for feeding Uzbek cotton into Asian markets.
The partnership also underlines DMCC’s efforts in creating industry specific infrastructure for facilitating physical trade in a wide range of soft commodities, including cotton.
The special purpose, DMCC-owned trading entity will offer online quotes and provide easy access to Uzbek cotton with convenient shipments to consumers in the Sub-continent, China and other Asian countries.
In addition, DMCC will facilitate trade finance for cotton inventory purchased by traders and stored in Dubai through its indigenously developed global multi commodities receipt.
Dr David Rutledge, Chief Executive Officer, DMCC, said: “After the success of Dubai Tea Trading Centre, we are now proposing a cotton distribution hub, with the objective of establishing Dubai as an important global centre for cotton trade.”
MoU to set up DMCC cotton trade corridor