DGCX inks a pact with Industrial and Commercial Bank of China
Dubai, April 13, 2016: The Dubai Gold & Commodities Exchange (DGCX) today announced that it has signed a Memorandum of Understanding (MOU) with Industrial and Commercial Bank of China Limited (ICBC), the largest Chinese bank in the world. This understanding paves way for both institutions to collaborate in areas of product development and on the potential provision of high quality banking services that are essential to support cross-border derivatives business in the Middle East and Asia.
The MOU will also explore the possibility of ICBC becoming a settlement bank with the clearinghouse of the Exchange, DCCC. Such a move would facilitate the bank's access to DGCX's flourishing products and services, and eventually support clearing of RMB products.
ICBC, the largest bank in the world by total assets and market capitalization, is listed on both the Hong Kong Stock Exchange and Shanghai Stock Exchange. The bank is well-known for its diversified business structure, strong innovation capabilities and market competitiveness. In December 2009, Abu Dhabi Branch of ICBC (ICBC-AD) was granted the wholesale banking license by the Central Bank of U.A.E, which made it the first Chinese bank to commence its operations in the country. With its business scope covering traditional commercial banking and investment banking services, ICBC-AD provides a range of financial solutions to its customers and is supported by the strong international expertise of ICBC.
Gaurang Desai, CEO of DGCX, said: "The partnership with ICBC is important for DGCX as we continue to develop our product offering for Chinese products. Asia and the China in particular, is a core growth area for us, especially in the context of the acceleration of the RMB internationalization process. ICBC is strongly facilitating development of Chinese economic and trade relations globally, and we look forward to closely working with them to drive greater collaboration between our markets."
Mr. Zhou Xiaodong, General Manager of ICBC Abu Dhabi Branch said: "ICBC entered the Middle East market in 2008 and has five branches in the GCC. The signing of this MOU today is to seek further collaboration regionally - particularly in the area of product development. There is no doubt more opportunities and cooperation will be brought into the fruitful future of both UAE and China."