DMCC-Uzprommashimpeks MoU to Set Up Cotton Trade Corridor

Dubai Multi Commodities Centre (DMCC) announced that 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.

In this regard, DMCC has signed a Memorandum of Understanding (MoU) with Uzprommashimpeks, a trading company set up under Uzbekistan’s Ministry of Foreign Economic Relations and International Trade.

In 2007, global cotton production touched 26.74 million tons, with Uzbekistan being the second largest exporter after the US. Imports and re-exports through Dubai were nominal with major re-export destinations being Pakistan and Algeria.

The MoU, which coincided with the recent visit to the UAE of H.E. Islam Karimov, the Uzbekistan President, was signed by Ahmed Bin Sulayem, Executive Chairman, DMCC and Mr. Mirzakhidov Khurshid, Chairman of the State Joint Stock Company, Uzprommashimpeks.

According to the terms of the MoU, 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 Dubai-based, 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.

Source: Dubai Multi Commodities Centre