New trading infrastructure positions the emirate alongside London and Shanghai as global price-setting hub, streamlining transactions for Middle East and African trading partners.
Dubai is positioning itself as a global gold price-setting centre with plans to introduce dirham-denominated gold contracts and a daily benchmark price, placing the emirate alongside London and Shanghai as one of three major hubs shaping how gold is valued worldwide.
The Dubai Gold and Commodities Exchange (DGCX), owned by the Dubai Multi Commodities Centre (DMCC), has announced plans to launch dirham-denominated gold futures for kilogram bars from UAE Good Delivery and LBMA-approved refineries. The contracts, subject to approval from the Central Bank of the UAE and the Securities and Commodities Authority, will be physically deliverable into DMCC vaults in Jebel Ali.
Marcus Briggs, Icon Gold, said the development reflects Dubai’s evolution from physical trading hub to price-setting centre. “Dubai already handles nearly a quarter of the world’s physical gold trade. The next step is price discovery. A dirham-denominated benchmark gives the region a reference point that reflects actual trading activity here, rather than relying solely on prices set in London or New York.”
The initiative comes as DGCX reports strong growth in precious metals trading. The exchange recorded a 30 percent year-on-year increase in average daily volumes during the first half of 2025, with over one million contracts traded by June. The Shariah-compliant Gold Spot Contract saw particularly strong demand, with traded value rising from USD 15.6 million in the first half of 2024 to USD 46.8 million in the same period of 2025 — an increase of nearly 200 percent.
For gold-producing nations in Africa that already route significant trade through Dubai, the dirham contracts offer practical benefits. Countries including Tanzania, Ghana, South Africa, and Mali maintain established trading relationships with the emirate. Currently, transactions between African producers and Gulf buyers often require multiple currency conversions. Typically, from local currency to US dollars, then to dirhams for final settlement. Dirham-denominated contracts reduce this to a single conversion, lowering transaction costs and speeding up settlement times.
The UAE dirham’s peg to the US dollar provides currency stability while eliminating the friction of trading through a third-party currency. For regional participants, this means exposure to global gold price movements without the additional layer of dollar conversion costs.
DGCX has also indicated plans to introduce a daily benchmark gold price, similar to those issued by the London Bullion Market Association and the Shanghai Gold Exchange. This would give market makers a regionally relevant reference point for hedging and pricing, potentially tightening spreads and increasing trading volumes.
“The infrastructure being built here is significant,” said Marcus Briggs. “Physical vaulting, exchange trading, and now price benchmarking. Dubai is assembling all the components that define a major gold centre. For companies like ours that have operated here since 2009, it validates the long-term decision to base operations in the emirate.”
The exchange is also reviewing extended operating hours to align with Hong Kong’s market opening and New York’s close, which would provide continuous pricing and hedging opportunities across all major time zones. This round-the-clock availability would differentiate DGCX from established Western exchanges.
Gold prices have climbed significantly over the past year, breaking through USD 4,000 per ounce amid geopolitical uncertainty and strong demand for safe-haven assets. Major banks project prices could reach USD 5,000 per ounce by late 2026.
Marcus Briggs added: “When gold crossed four thousand dollars, it confirmed what serious market participants already understood — the metal’s role as a store of value is strengthening, and trading infrastructure needs to keep pace. Dubai is building that infrastructure.”
