Commodity Brokerage
Commodity Brokerage
THE SECTOR WITH HIGH RETURNS
Dubai Forecast
According to The World Bank, Dubai’s overall growth is expected to reach 3.5% in 2022 as the latest developments in Eastern Europe have caused an upsurge in energy prices. In the second half of 2021, Dubai revealed stability in its economic growth with exports and private consumption contributing to 50% of the region’s GDP.
The progressive upturn from the pandemic has steadily increased household spending and, towards the end of 2022, the retail sector is expected to reach pre-COVID levels. Resilient manufacturing activities combined with the global transition to a greener economy will create a huge demand for metal products, which comprises 20% of Dubai’s exports. Infrastructure investments are expected to contribute 30% to the GDP, which will be extremely beneficial for the region as it is one of the world’s leading aluminum producers.
Tourism is another vital sector, which accounts for 10% of the GDP, and its revenues will inevitably increase since the pandemic restrictions have been removed. Regardless of the intense regional competition, 60% of its tourists come from the Middle East. Moreover, the country’s political and social environment combined with the opening of the Dubai International Exhibition and Convention Center tend to attract numerous visitors and foreign investors.
UAE Trends
The commodity market is a prosperous sector that ensures high returns on investment, yet it is open to unpredictable situations that reduce its value. During the first year of the pandemic, commodity exporters and importers were severely affected since the demand for energy, oil, metal, and agricultural products was eliminated and thus prices dropped to a very low level.
According to the World Bank, energy prices plunged 40%, while the non-energy ones decreased only by 5% in 2020. Yet, although oil prices were expected to surpass $42 per barrel of crude oil (BBL) in 2021, indicating a robust recovery, the greater demand came to double the potential figure and raise it to $78 per barrel. The UAE has announced the expansion of energy production. Moreover, metal prices declined by 13% while agricultural prices remained stable due to the industry’s resistance to financial operations and the stocks’ high performance.
The UAE is among the top performers, reinforcing its global position in exportation, re-exportation, and production. In 2020, the region ranked fifth in the production of refined aluminum with an output of approximately 2,500,000 metric tons while it was positioned seventh in crude oil production, creating 3.657 million barrels per day. Furthermore, it ranked 15th in natural gas production with an output of 55 billion m3 and seventh in worldwide exports since it transported 67,000 metric tons. The OPEC+ agreement facilitates the UAE’s share in global oil production since it defines that few countries will concentrate on surplus production.
Dubai is the pioneer state in commodity contracts, especially gold, diamonds, and precious metals within the UAE, increasing its competitive advantage through a triangular intersection between Europe, Africa, and India.
Investors are interested in the state’s operations, which provide almost one-fourth of the international gold trade.
The Securities and Commodities Authority, established in Dubai and consisting of the Abu Dhabi Securities Exchange and the Dubai Financial Market, ensures financial stability and investment awareness through detailed studies that provide advice to entrepreneurs on how to invest in commodities based on supply and demand. As the UAE’s market manages multiple commodities, metals, contracts, and equities, it has developed various centers and organizations that support economic actions.
The Dubai International Financial Centre and the Dubai Multi Commodities Centre offer a state-of-the-art infrastructure for a successful commodities marketplace, putting Dubai at the heart of global fiscal operations by specializing in gold, diamonds, pearls, and tea. Moreover, the Dubai Gold & Commodities Exchange has more than 200 members globally to merchandise equities, metals, hydrocarbon currencies, and hydrocarbons, trading 12.73 million contracts in 2020. The Dubai Pearl Exchange and the Dubai Diamond Exchange trade pearls, precious gems, and diamonds while the Dubai Mercantile Exchange offers crude oil, which is benchmarked on handling commodities and energy futures.
Pursuing diversified investment opportunities, the Dubai Financial Market introduces new equity futures contracts and the Securities & Commodities Authority creates regulations to boost the market status and entrepreneurs’ confidence through short-selling transactions. They align regional standards with international ones to permit foreign investors to overdraft facilities.
THE SECTOR WITH HIGH RETURNS
Dubai Forecast
According to The World Bank, Dubai’s overall growth is expected to reach 3.5% in 2022 as the latest developments in Eastern Europe have caused an upsurge in energy prices. In the second half of 2021, Dubai revealed stability in its economic growth with exports and private consumption contributing to 50% of the region’s GDP.
The progressive upturn from the pandemic has steadily increased household spending and, towards the end of 2022, the retail sector is expected to reach pre-COVID levels. Resilient manufacturing activities combined with the global transition to a greener economy will create a huge demand for metal products, which comprises 20% of Dubai’s exports. Infrastructure investments are expected to contribute 30% to the GDP, which will be extremely beneficial for the region as it is one of the world’s leading aluminum producers.
Tourism is another vital sector, which accounts for 10% of the GDP, and its revenues will inevitably increase since the pandemic restrictions have been removed. Regardless of the intense regional competition, 60% of its tourists come from the Middle East. Moreover, the country’s political and social environment combined with the opening of the Dubai International Exhibition and Convention Center tend to attract numerous visitors and foreign investors.
UAE Trends
The commodity market is a prosperous sector that ensures high returns on investment, yet it is open to unpredictable situations that reduce its value. During the first year of the pandemic, commodity exporters and importers were severely affected since the demand for energy, oil, metal, and agricultural products was eliminated and thus prices dropped to a very low level.
According to the World Bank, energy prices plunged 40%, while the non-energy ones decreased only by 5% in 2020. Yet, although oil prices were expected to surpass $42 per barrel of crude oil (BBL) in 2021, indicating a robust recovery, the greater demand came to double the potential figure and raise it to $78 per barrel. The UAE has announced the expansion of energy production. Moreover, metal prices declined by 13% while agricultural prices remained stable due to the industry’s resistance to financial operations and the stocks’ high performance.
The UAE is among the top performers, reinforcing its global position in exportation, re-exportation, and production. In 2020, the region ranked fifth in the production of refined aluminum with an output of approximately 2,500,000 metric tons while it was positioned seventh in crude oil production, creating 3.657 million barrels per day. Furthermore, it ranked 15th in natural gas production with an output of 55 billion m3 and seventh in worldwide exports since it transported 67,000 metric tons. The OPEC+ agreement facilitates the UAE’s share in global oil production since it defines that few countries will concentrate on surplus production.
Dubai is the pioneer state in commodity contracts, especially gold, diamonds, and precious metals within the UAE, increasing its competitive advantage through a triangular intersection between Europe, Africa, and India.
Investors are interested in the state’s operations, which provide almost one-fourth of the international gold trade.
The Securities and Commodities Authority, established in Dubai and consisting of the Abu Dhabi Securities Exchange and the Dubai Financial Market, ensures financial stability and investment awareness through detailed studies that provide advice to entrepreneurs on how to invest in commodities based on supply and demand. As the UAE’s market manages multiple commodities, metals, contracts, and equities, it has developed various centers and organizations that support economic actions.
The Dubai International Financial Centre and the Dubai Multi Commodities Centre offer a state-of-the-art infrastructure for a successful commodities marketplace, putting Dubai at the heart of global fiscal operations by specializing in gold, diamonds, pearls, and tea. Moreover, the Dubai Gold & Commodities Exchange has more than 200 members globally to merchandise equities, metals, hydrocarbon currencies, and hydrocarbons, trading 12.73 million contracts in 2020. The Dubai Pearl Exchange and the Dubai Diamond Exchange trade pearls, precious gems, and diamonds while the Dubai Mercantile Exchange offers crude oil, which is benchmarked on handling commodities and energy futures.
Pursuing diversified investment opportunities, the Dubai Financial Market introduces new equity futures contracts and the Securities & Commodities Authority creates regulations to boost the market status and entrepreneurs’ confidence through short-selling transactions. They align regional standards with international ones to permit foreign investors to overdraft facilities.
PARTNER SOLUTIONS
Customized Strategies
The Royal Partnership provides bespoke, full-service commodity contract brokerage solutions to streamline your operations and make data-driven decisions. We conduct thorough research to stay abreast of the latest trends and generate valuable insights that facilitate trade execution and risk management to trade your commodity contracts at low transaction costs as per the supply and demand analysis.
Following your fiscal objectives and market tendencies of domino effects, we establish diversified portfolios that ensure sustainable performance and long-term returns on investments. Our company leverages the latest technology to produce insightful data analytics that strengthen your challenging agreements and manage your expenses based on specific terms and conditions for various commodities.
We set up detailed contracts between entrepreneurs and intermediaries, supporting adjustments, cancelations, and failures to promote the acquisition of commodity contracts. Working with professionalism and integrity, we apply customized strategies that reflect your brand and ensure maximum efficiency of order execution. At The Royal Partnership, our experts prepare quotes and charts to indicate cost-effective wealth funds that give you a competitive advantage in the market while mitigating risks.
PARTNER SOLUTIONS
Customized Strategies
The Royal Partnership provides bespoke, full-service commodity contract brokerage solutions to streamline your operations and make data-driven decisions. We conduct thorough research to stay abreast of the latest trends and generate valuable insights that facilitate trade execution and risk management to trade your commodity contracts at low transaction costs as per the supply and demand analysis.
Following your fiscal objectives and market tendencies of domino effects, we establish diversified portfolios that ensure sustainable performance and long-term returns on investments. Our company leverages the latest technology to produce insightful data analytics that strengthen your challenging agreements and manage your expenses based on specific terms and conditions for various commodities.
We set up detailed contracts between entrepreneurs and intermediaries, supporting adjustments, cancelations, and failures to promote the acquisition of commodity contracts. Working with professionalism and integrity, we apply customized strategies that reflect your brand and ensure maximum efficiency of order execution. At The Royal Partnership, our experts prepare quotes and charts to indicate cost-effective wealth funds that give you a competitive advantage in the market while mitigating risks.
THE ROYAL PARTNERSHIP TRADING BENEFITS
Enhance your Revenue
At The Royal Partnership, we are committed to offering superior, cost-effective trading experiences that enhance your revenue and reduce risks. Our professionals collaborate with partners to comprehend their objectives and needs to establish resilient schemes with prosperous trading margins that make you feel unique.
We go the extra mile to ensure stability in supply and demand by mitigating the negotiation barriers between the parties and capitalizing on profitable economic cycles to achieve the maximum ROI. Your dedicated account managers ensure continuous support with seamless high-quality customer service while respecting your preferences.
We conduct detailed research to generate analyses and reports, staying abreast of the latest securities and commodities authority regulations to offer insights on active commodities that increase your market share. Following our advanced tools, we evaluate your position and provide immediate consultancy on commodity market trading to gain high returns. The firm streamlines your operations by implementing commodity trading features that improve your portfolio’s diversification and security.
By working with us, you gain access to a wide network of contacts that enhance your negotiation skills and commodity options as per your expectations and budget. Our associations with pioneer suppliers facilitate cost reduction through favorable compensation terms.
THE ROYAL PARTNERSHIP TRADING BENEFITS
Enhance your Revenue
At The Royal Partnership, we are committed to offering superior, cost-effective trading experiences that enhance your revenue and reduce risks. Our professionals collaborate with partners to comprehend their objectives and needs to establish resilient schemes with prosperous trading margins that make you feel unique.
We go the extra mile to ensure stability in supply and demand by mitigating the negotiation barriers between the parties and capitalizing on profitable economic cycles to achieve the maximum ROI. Your dedicated account managers ensure continuous support with seamless high-quality customer service while respecting your preferences.
We conduct detailed research to generate analyses and reports, staying abreast of the latest securities and commodities authority regulations to offer insights on active commodities that increase your market share. Following our advanced tools, we evaluate your position and provide immediate consultancy on commodity market trading to gain high returns. The firm streamlines your operations by implementing commodity trading features that improve your portfolio’s diversification and security.
By working with us, you gain access to a wide network of contacts that enhance your negotiation skills and commodity options as per your expectations and budget. Our associations with pioneer suppliers facilitate cost reduction through favorable compensation terms.