DUBAI - The Dubai Gold and Commodities Exchange (DGCX) signed MoU Wednesday with Industrial and Commercial Bank of China (ICBC) and Agricultural Bank of China (ABC) to cement strategic ties.

The Memorandum of Understanding (MoU) is aimed at paving way for the DGCX and ICBC to collaborate in areas of product development and on the potential provision of high quality banking services that are essential to support cross-border derivatives business in the Middle East and Asia, DGCX said in an e-mailed statement.

The MoU will also explore the possibility of ICBC becoming a settlement bank with the clearinghouse of the Exchange, DCCC. Such a move would facilitate the bank's access to DGCX's flourishing products and services, and eventually support clearing of Renminbi (Chinese currency) products.

Zhou Xiaodong, General Manager of ICBC Abu Dhabi (AD) Branch said the signing of this MoU "is to seek further collaboration regionally, particularly in the area of product development.

There is no doubt more opportunities and cooperation will be brought into the fruitful future of both UAE and China.

Fang Min, General Manager of ABC said promoting the precious metals and commodities business has been a focus area for such cooperation in the Middle East.

On March 10, Bank of China was appointed as a settlement bank for Dubai Commodities Clearing Corporation, a subsidiary of the DGCX.

In 2015, DGCX posted record-breaking trading volumes of over 14.5 million contracts, an increase of 23 percent year-on-year.

In 2014, China, surpassing India, became the biggest trade partner of the UAE as bilateral trade hit nearly $50 billion.