The UAE Cabinet has made a significant decision that could have a substantial impact on commodity trading businesses, particularly those operating in non-designated free zones, including entities in the Dubai Multi Commodities Centre (DMCC).
This decision, outlined in Ministerial Decision 265 of 2023, comes into effect from June 1, 2023.
Inclusion of ‘Trading of Qualifying Commodities’:
One of the key changes introduced by this decision is the inclusion of ‘Trading of Qualifying Commodities’ as a qualifying activity.
This new activity category provides an opportunity for relief to traders operating in non-designated free zones, including various global entities established in DMCC.
Qualifying Commodities encompass a range of commodities, including metals, minerals, energy, and agricultural products.
These commodities are traded in their raw form on Recognised Commodities Exchange Markets.
Positive Impact on Commodity Trading:
This move by the UAE government has the potential to significantly benefit the commodity trading landscape, offering new opportunities and advantages for businesses in this sector.
It reflects the UAE’s commitment to creating a favorable business environment and attracting global traders.
Review and Compliance:
If you are involved in commodity trading in the UAE, it is crucial to review the details of this decision and understand how it may enhance your operations.
Staying compliant with the new regulations is essential to leverage the benefits offered by this decision.
