The Gulf Commodity Exchange, recognized as the first international exchange for futures and commodities in the Middle East, has announced a memorandum of understanding with the Shanghai Futures Exchange (SHFE). This agreement aims to establish a framework for strategic cooperation between the derivatives markets in the Middle East and China.

The memorandum focuses on enhancing collaboration in key areas such as joint contracts, sharing insights on market development, conducting joint research, and implementing educational initiatives for investors. This partnership reflects both parties’ commitment to increasing market transparency and supporting the development of futures markets in the region.

Rayed bin Khalifa Al-Salami, the Director General of the Gulf Commodity Exchange, emphasized their pride in partnering with one of the world’s most advanced exchanges. He stated that this memorandum represents a significant step towards joint efforts between China and the Gulf region in commodity trading. By exchanging knowledge, expertise, and vision, they aim to pave the way for futures contracts more closely aligned with regional needs, enhance market transparency, and boost investor participation on both sides.

The areas of cooperation outlined in the memorandum include the exchange of knowledge related to market development, infrastructure, and regulatory frameworks. It also involves supporting relevant studies and research, exchanging personnel to enhance mutual understanding between the markets, and developing joint educational programs for investors and members.

This partnership aligns with the Gulf Commodity Exchange’s efforts to bolster the Gulf region’s position as a global hub for commodity trading and matches the Shanghai Exchange’s strategy for international expansion and connecting major global markets.