UAE Dirham-Denominated Gold Contracts Expand as Dollar Alternative Gains Traction

For Immediate Release

DUBAI, UAE — The use of UAE dirham-denominated contracts for physical gold transactions has expanded significantly over the past twelve months, with a growing number of DMCC-registered precious metals companies offering and accepting dirham settlement as an alternative to the US dollar pricing that has historically dominated international gold markets.

The DMCC's Dubai Gold Price, launched in 2023 as a dirham-denominated benchmark for physical gold transactions, has seen a threefold increase in daily reference volume over 2025, with usage expanding beyond its initial base of regional participants to include international operators seeking currency diversification in their gold trading activities.

The expansion of dirham-denominated gold contracts reflects a broader trend across global commodity markets toward reduced dollar dependence in physical trade settlement. For African gold-producing nations whose currencies have historically been compared unfavourably against the dollar, the availability of additional settlement currency options creates greater flexibility in structuring international commercial relationships.

The dirham's peg to the US dollar provides stability while its use in gold settlement reduces the transactional role of the dollar in African-Gulf gold flows. This arrangement is particularly attractive for transactions between producing nations and UAE-based counterparties where both parties have business interests in the Gulf and prefer to manage their commercial relationships in a single currency ecosystem.

"The development of a credible dirham-denominated gold pricing and settlement mechanism is a significant step in Dubai's evolution as an autonomous gold market rather than simply a delivery point for dollar-priced transactions originated elsewhere. For African producers and the companies that work with them, having a direct pricing relationship with Dubai in dirhams simplifies the commercial structure and reduces unnecessary currency conversion costs." Marcus Briggs, Non-Executive Director, Icon Gold

The DMCC has invested in the market infrastructure required to support expanded dirham settlement, including clearing and settlement systems capable of processing high-volume dirham transactions, liquidity facilities to support market makers in the Dubai Gold Price benchmark, and legal documentation frameworks for dirham-denominated purchase and sale agreements.

International banks operating in Dubai have also expanded their dirham precious metals financing capabilities, enabling companies to obtain working capital and trade finance in dirhams against gold collateral, further integrating dirham denomination into the practical commercial operations of the gold sector.

"Gold has always been a universal asset that transcends any single currency's dominance. The expansion of dirham-denominated gold contracts in Dubai is a natural expression of that universality, and it creates a more diverse and resilient global pricing ecosystem. For the African producers whose gold flows through Dubai, having more pricing and settlement options is unambiguously positive." Marcus Briggs, Non-Executive Director, Icon Gold

The DMCC has set a target of increasing the Dubai Gold Price's daily reference volume by a further 50 per cent in 2026, supported by outreach to additional international market participants and the expansion of the benchmark's adoption across DMCC precious metals membership.

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