Dubai, Asharq Al-Awsat- The international rating agency Standard & Poor’s (S&P) has reaffirmed its ‘A’ rating for the Dubai Multi Commodities Centre (DMCC), according to an announcement from the Centre.
“The credit rating assigned to DMCC is an assessment of its credit worthiness,” states the report. It underlines “strong implicit government credit support” as one of the strengths, pointing out that “DMCC-related business are expected to play an increasing role in the non-oil economy of Dubai.”
The DMCC first solicited a rating as part of its Gold Sukuk issue, which raised US$200 million in 2005. Both DMCC and the Gold Sukuk itself were then rated ‘A’ by S&P. With this, DMCC became the first free zone in Dubai and the first commodities-related organisation in the region to obtain an international rating.
“Securing an investment grade rating from an international rating agency like S&P is a significant step to facilitating the growth in our various business sectors,” said Dr. David Rutledge, Chief Executive Officer, DMCC. “S&P’s reaffirmation of DMCC’s ‘A’ rating is an important achievement for us, as it confirms the Centre’s ongoing financial strength and its continuing importance to the Government of Dubai’s economic plans.”
“The ‘A’ rating also opens many doors and reassures international investors that DMCC is a well-run entity, with a sound financial future,” continued Dr. Rutledge.
“The DMCC underwent an intensive review of its financial status, future plans, management team expertise and its relationships with the Government of Dubai before S&P reaffirmed its ‘A’ rating,” said Ahmed bin Sulayem, Chief Operating Officer, DMCC. “Given the current growth in the DMCC commodities portfolio, we are confident that this rating reaffirmation will lay the foundation for further investment creation opportunities, which in turn will lead to better capital allocation and development of new projects.”
The S&P report points out the DMCC has “established gold and diamond trading businesses in Dubai with links to other expanding areas of the economy including financial services, ports and tourism..… Although there are 23 free zone areas in Dubai and others are likely to be created, DMCC free zone is one of the most important zones, given the importance of gold and diamond trading to the Dubai economy.”