DGCX, FMA sign MoU in Sudan to enhance gold market across Africa

The Dubai Gold & Commodities Exchange (DGCX) on Tuesday announced the signing of a Memorandum of Understanding (MoU) with the Financial Markets Regulatory Authority (FMA) in Sudan to strengthen bilateral cooperation in the trading of gold between the UAE and Sudan through the exchange of experiences. The agreement will see the DGCX and FMA collaborate on areas of mutual benefit, foster collaboration, and exchange knowledge around gold trading.

Sudan is ranked as the third largest producer of gold in Africa, and earlier last year begun allowing private traders to export the precious metal in an effort to raise revenue. In line with this initiative, FMA aims to strengthen the gold market in Sudan by facilitating trading and investment. Through this collaboration with the DGCX, it will be able to benefit from the expertise of the Middle East’s leading and most diversified derivatives and commodities exchange.

Les Male, CEO of DGCX, said: “We are delighted to forge a partnership with Financial Markets Regulatory in Sudan, the first of many collaborations this year, and work together towards strengthening the gold market across Africa. The DGCX is strategically located between the Far East, Europe and Africa, serving as a unique, global gateway for traders and investors.

With this in mind, alongside our deep knowledge and expertise of commodities trading, we are confident that we will bring tremendous value to FMA and Sudan’s gold export market, while achieving our vision to expand our international footprint and facilitate more cross-border trading.”

Dr. Shawgi Azmi Mahmoud, Director General of FMA, said: “The Financial Markets Regulatory Authority in Sudan is pleased to partner with the DGCX and benefit from their expertise to advance opportunities for investors and traders within the market. The establishment of a gold exchange by the Sudanese Government represents an important milestone for the country. We expect this collaboration to play an instrumental role in driving the growth of gold trading within the country and the region. Sudan is renowned for its gold production with an average production rate of 70-100 tonnes of gold per year, which is why this strategic partnership will help develop the economy significantly. Together with the cooperation of the regulators in UAE, we look forward to offering new products and services for our members to further serve and benefit the two countries.”

The Dubai Gold & Commodities Exchange (DGCX) is the region’s leading derivatives exchange and has played a pioneering role in developing the regional market for derivatives trading, clearing and settlement.

The DGCX owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC). DGCX & DCCC are regulated by the Securities & Commodities Authority (SCA). It is recognised as a licensed Central Clearing-Counterparty (CCP) by SCA and a Third-Country CCP by European Securities Markets Authority (ESMA).

The DGCX’s strategic geographic location in Dubai between the Far East, Europe and Africa serves as a unique, global window for traders and investors. With over 100 members across the world, the DGCX drives liquidity in the market by offering a broad range of futures and options contracts covering base and precious metals – including the world’s only Shari’ah Compliant Spot Gold Contract – hydrocarbons, equities and currencies.