New subsidiary seen as lateral expansion into commodities and derivatives trading
DUBAI – United Arab Emirates: Daman, one of the leading financial services companies in the region, today announced the launch of Daman Commodities DMCC, a subsidiary which will be involved in commodities and futures trading at the Dubai Gold and Commodities Exchange (DGCX), part of the Dubai Multi -Commodities Centre (DMCC).
Daman Commodities has already been granted a licence as a Broker and Clearing Member by the DGCX to carry out trading activities in gold and commodities.
At a press conference held in Dubai today, Mr. Shehab Gargash, Managing Director, Daman, said: “This is a logical lateral expansion for Daman as we grow. Going forward, we see excellent opportunities in commodities and futures. Commodities have witnessed a remarkable interest as a new area for expanded services in the region, although the region has traditionally been home to many experienced customers.”
“DGCX, which has established Dubai’s name as a leading centre for commodities trading, has also registered increasing per day volumes in gold and silver futures. Thus the setting up of Daman Commodities at the DGCX could not have come about at a better time,” Mr. Gargash added.
Gold prices have created successive 25-year records and silver prices have seen 23-year highs over the last few months. The trend is expected to continue well into the next few months, according to market experts.
“The new initiative is also part of Daman’s plans to expand into related areas of strategic interest. We will continue to build our brand and look for opportunities to expand our portfolio and reach across a wider section of the investment community,” Mr. Gargash remarked.
Mr. Ahmed bin Sulayem, Chief Operating Officer DMCC, and Director DGCX said: “In a very
short period, the DGCX has gone from strength to strength and has begun to put its mark in the Middle East Region. Moreover, record gold prices have not had any impact either on the volume or deterred trading activities by investors and the business community at the DGCX. We see this as a sign of the DMCC increasingly aligning itself with other exchanges. We welcome Daman Commodities which will play an important role as a new member bringing their local market knowledge base as a solid structure for commencing trading activities.”
The Daman Commodities DMCC office, will commence operations on June 5th,2006 and will begin trading in gold and precious metals. The office operation will expand to the full range of DGCX traded products in the future.
Daman was formed in mid 2000 by a group of prominent UAE investors to cater to the growing need for in-depth, professional financial services that are tailored to the Arab World region. Daman’s grass roots understanding of the fast changing dynamics of the region have made the group a specialist operating in this space.
Now a leading financial services firm in the Arabian Gulf, the group is known for providing international standard quality services as well as innovative investment and asset management options, wealth management and advisory services.
Daman today is a diverse and dynamic operation which includes a dedicated brokerage arm (Daman Securities LLC) which began trading operations in early 2005. Now established with an operational office in the DMCC, Daman will begin operations in DIFX soon.
The Dubai Multi Commodities Centre (DMCC) is a strategic initiative of the Dubai government created to establish a commodity market place in Dubai. Rated ‘A’ by Standard & Poor’s, it provides industry-specific market infrastructure and a full range of facilities for the gold & precious metals, diamonds & coloured stones, energy and other commodities industries.
DMCC is also a free zone authority offering 100% business ownership, a guaranteed 50 year tax holiday and freehold property options. Launched in 2002, this strategic government initiative has been established to support the specific needs of its core segments – Gold & Precious Metals, Diamonds & Coloured Stones, Energy and Other Commodities industries.
DMCC is a free zone authority offering market participants of the commodities industry and support services invaluable business incentives, including 100% business ownership, a guaranteed 50-year tax holiday on personal and income taxes. DMCC offers a one stop shop facility for processing of all documentation including immigration, registration and licensing for investors. The DMCC offers a purpose-built infrastructure available on a freehold or leasehold option.
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