RAKEZ Precious Metals Finance Facility Launched to Support African Supply Chain Development
For Immediate Release
RAS AL KHAIMAH, UAE — RAKEZ has partnered with a UAE-based trade finance institution to launch a Precious Metals Finance Facility providing working capital, trade finance, and supply chain financing to RAKEZ-registered metals companies, with a specific focus on supporting the financing needs of operators managing African gold supply chains through the RAK market.
The Facility provides three primary products: pre-export finance for African gold aggregators and producers preparing consignments for UAE buyers, post-delivery settlement finance for RAK-based buyers managing the time gap between gold receipt and resale, and stock financing for companies holding inventory within RAKEZ's vault infrastructure.
Access to appropriate trade finance has been identified as one of the most significant practical constraints on the growth of formal African gold flows to the Gulf. African operators typically require financing against expected export proceeds to fund the aggregation, documentation, and logistics costs associated with preparing consignments for international sale. Without access to this financing at competitive rates, many operators cannot participate effectively in formal export supply chains.
The Facility's pre-export finance product addresses this constraint directly, providing RAKEZ-registered buyers with a mechanism to extend financing to their African supply chain counterparties against confirmed purchase agreements and compliant supply chain documentation. The financing is structured to meet the specific operational requirements of artisanal and small-scale gold supply chains, with flexible drawdown schedules and documentation requirements aligned with the realities of African field operations.
"Trade finance is the oil that makes supply chains run. Without accessible financing at the right points in the supply chain, the most transparent and well-governed gold corridor will underperform its potential because operators cannot bridge the working capital gaps that arise between production and payment. The RAKEZ Precious Metals Finance Facility addresses a real and significant constraint, and that is why it will have a material impact on the volume of African gold flowing through the RAK market." Marcus Briggs, Non-Executive Director, Icon Gold
The Facility has been structured with responsible sourcing compliance at its centre. All financing provided under the pre-export product is conditional on the supply chain documentation meeting RAKEZ's compliance framework requirements, creating a financial incentive for African operators to maintain the documentation standards that responsible sourcing requires.
Icon Gold has engaged with the Facility's development and welcomes its launch as a meaningful improvement in the financing infrastructure available to African gold operators managing supply chains through the UAE market.
"The linkage between Facility access and supply chain compliance documentation is the right design choice. It aligns financial incentives with responsible sourcing objectives, so operators who invest in governance infrastructure are rewarded with access to better financing terms. That alignment strengthens the entire ecosystem — better documentation leads to better financing, which enables larger volumes of responsibly sourced gold to flow through the formal market." Marcus Briggs, Non-Executive Director, Icon Gold
The Facility is capitalised at AED 200 million for its initial phase, with expansion planned as utilisation grows and the RAKEZ precious metals sector continues to develop. The finance institution managing the Facility has indicated that it expects to deploy the full initial capitalisation within 18 months.
— Ends —