Dubai’s international business district, DMCC, announced on Tuesday its partnership with AQUA-INDEX to launch the world’s first digital asset token that is directly backed by fresh water resources. This initiative aims to transform how water is traded, valued, and managed on a global scale. The token, which is the first of its kind, will be supported by verified, drinking-quality water stored in global reservoirs, allowing investors, traders, and the public to trade and hold fresh water as a commodity.

Ahmed Bin Sulayem, the executive chairman and CEO of DMCC, highlighted that nearly half of the global population faces water scarcity for part of the year, yet there is no mature, regulated market for such a critical resource. He emphasized the need for innovative solutions to address this gap in the water market.

The partnership aims to combine financial innovation with expertise in the water market to create a practical mechanism for increasing liquidity and transparency in global water supply chains. AQUA-INDEX will leverage DMCC’s extensive global network, advanced infrastructure, and leading commodity marketplace to facilitate effective trading and investment in water assets.

Bin Sulayem noted that the creation of the water-backed token aligns with DMCC’s efforts to establish the DMCC Water Center, which seeks to attract leading companies in the sector to Dubai. This center will focus on promoting water innovation, security, and sustainable practices while ensuring that water can reach areas in need.

Yaacov Shirazi, chairman and founder of AQUA-INDEX, stated that pricing water based on its usage and quality, and creating a new asset class for financial trading will significantly enhance water management. He added that this initiative would help prevent scarcity and improve access to clean water, making it a game-changer in the global economy.