Dubai: The Dubai Gold and Commodities Exchange (DGCX) is preparing to launch a dirham-denominated gold contract, marking a major step in the UAE’s efforts to strengthen its position as a global hub for precious metals trading.
Ahmed Bin Sulayem, Executive Chairman and CEO of the Dubai Multi Commodities Centre (DMCC) and Chairman of DGCX, said the new contract will be physically deliverable and available in both spot and monthly futures formats, extending up to 12 months.
The launch — pending approval from the Central Bank of the UAE and the Securities and Commodities Authority — aims to reduce exposure to USD-trading risks and encourage trading in the UAE’s national currency.
“The new contract supports the UAE’s broader strategy to internationalise its financial markets, deepen dirham liquidity, and strengthen the role of the dirham in regional commodity settlements,” Bin Sulayem said.
In addition, DGCX plans to introduce a daily benchmark gold contract— similar to those issued by the London Bullion Market Association (LBMA) and Shanghai Gold Exchange — providing a regionally relevant price reference and enhanced transparency.
To further expand global reach, the exchange is exploring 24-hour trading and same-day settlement, connecting trading hours from Hong Kong to New York.
All physically settled contracts, including the new dirham-denominated futures, will be deliverable directly into DMCC vaults, integrating both physical and financial settlement.
Founded in 2005, DGCX is the Middle East’s largest derivatives exchange, with average daily trading volumes rising by 30% in the first half of 2025. With gold prices above $4,000 per ounce, the new contract is expected to attract major international investors to Dubai’s rapidly expanding commodities market.
