The DMCC in partnership with the Commercial Bank of Dubai and Rocks International DMCC launched the DMCC Tradeflow  earlier this month.

The  DMCC Tradeflow  is a dedicated online platform for “registering  possession and ownership of commodities stored in UAE-based facilities”, said the organisation.

Under the scheme, all diamonds registered with DMCC’s Tradeflow platform - which will act as the central registry -  can be used as collateral for trade finance loans.

“Commercial Bank of Dubai will act as the financier and Rocks International DMCC as the independent Collateral Manager,” DMCC said.

“Loans for Diamonds adds enormous value to DMCC’s Tradeflow platform and further cements Dubai’s position among the top three diamond centres in the world,” said Gautam Sashittal, DMCC Chief Executive Officer. “It is an innovation that will change the way rough diamond trade is financed. Establishing diamonds as collateral for loans with Tradeflow will not only add to DMCC’s complete portfolio of diamond trading products and services but also support increasing volumes of diamond trade through Dubai.”

DMCC noted that   the trade in diamonds has increasingly shifted from West to East, thus enabling Dubai and its commodities trading hub DMCC to become “one of the top three diamond trading centres in the world”. A similar shift has occurred in the financing of diamond trading, which the DMCC is helping to establish in the UAE, the organisation added.

The Loans for Diamonds scheme has evoked strong interest from local banks.

 “We are extremely pleased to enter into this strategic partnership with DMCC and Rocks International,” said Peter Baltussen, Commercial Bank of Dubai CEO. “This unique offering provides an innovative mechanism for diamond traders to use their diamonds as collateral for funding their business growth needs. We see this as a catalyst for the development of the diamond industry in line with Dubai’s position as a global diamond trading centre and a hub for trade between the East and West."

Ludwig Coelst, Managing Director of Rocks Middle-East DMCC, said: “We are very glad that our ideas and hard work are now materialising into a product that is absolutely new for the diamond industry in Dubai and across all main diamond trade centres. With the joint efforts from CBD and DMCC Tradeflow we are sure this next step will enable the diamond trade and banking finance in Dubai to grow further.”