DGCX plans bullion offering expansion amid increased demand

Louis Hems, commercial director at Dubai Gold & Commodities Exchange (DGCX), said that the most pronounced growth for DGCX is expected to come from the precious metals segment. This is being driven by increasing demand for structured hedging instruments and exchange-cleared products.

Within precious metals, DGCX's most liquid product is its 1kg physical gold contract and cash-settled gold futures.

The physical contract is primarily used by market participants seeking exposure to locally deliverable gold aligned with UAE Good Delivery standards, and continues to serve as a reliable store-of-value instrument within the regional market. In contrast, the gold futures are predominantly used for hedging purposes.

"In recent months, we have seen a marked increase in activity, including several record trading days in March, as participants actively managed price risk in response to evolving geopolitical and macroeconomic conditions," said Hems.

DGCX closed 2025 with 30% year-on-year growth in overall trading volumes, and Hems said the focus is to build on this strong momentum.

The exchange is looking to expand its bullion offering. Alongside its existing Shariah-compliant 1 kg physical gold contract (T+1 settlement), the plan is to introduce a same-day (T+0) gold bar contract, as well as a small-denomination product designed to broaden retail participation by Q3 2026.

"This is a targeted step to deepen liquidity and strengthen the regional bullion ecosystem, with CCP-cleared gold products aligned to UAE Good Delivery standards and the requirements of the physical market," said Hems. "In parallel, we are engaging with institutional participants to further develop accessible, exchange-cleared bullion solutions across the Middle East."

At a regional level, local participants remain highly active in the physical gold segment, reflecting the UAE’s position as one of the world’s leading hubs for gold trading by volume.

At the same time, Hems continues to see robust demand from proprietary trading firms, particularly in the DGCX's flagship INR-USD futures suite, which remains a core instrument for managing rupee exposure.

"India will continue to be central to our offering," said Hems. "Our INR-USD futures contract has been one of DGCX’s most successful products, and we see continued demand driven by the scale and complexity of India’s trade and capital flows."

He also noted that there is growing interest from Chinese market participants and the exchange is actively engaging with stakeholders to explore the potential for introducing more China-focused products in the future, subject to regulatory alignment.

"DGCX benefits from a highly international membership base, with direct onboarding capabilities across the UAE, UK, EU, Singapore and other key financial centres, enabling strong connectivity to global trading flows," he said.

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DGCX witnessed strong growth in 2025, underlining efforts to grow the emirate’s regional hub.