Jeddah (TDI): Relations between the Middle East and China’s derivatives markets are set to strengthen following a new cooperation deal signed between the Gulf Mercantile Exchange and the Shanghai Futures Exchange.
Under the deal, GME, the Middle East’s leading international energy and commodities futures exchange, and SHFE, one of China’s primary commodity trading platforms, will join hands for a range of strategic initiatives.
These include market research, joint product development, the exchange of insights on market trends, and investor education efforts, a joint statement released by both exchanges said.
Managing Director of GME, Raid Al-Salami, said that this partnership is a major step toward strengthening alignment between China and the Gulf in commodities trading.
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“We value our collaboration with SHFE and look forward to the opportunities this deal will unlock for both sides.”
The deal follows a strong performance year for GME. In January, the exchange reported a 12% increase in total trading volume for 2024, reaching 1.32 million contracts — up from 1.18 million the previous year.
Front-month contract volumes went up 20% to a record 959,565 contracts, while total physical exposure up by 11%, reflecting GME’s commitment to boosting market accessibility and supporting sustainable development.
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Formerly known as the Dubai Mercantile Exchange, GME has a long-standing reputation as a major player in the region’s commodities sector.
Established with the vision of creating globally accessible derivatives markets for Middle East commodities, the exchange has continued to evolve in scope and ambition.
A major milestone came last year when the Saudi Tadawul Group acquired a third strategic stake in the exchange. This acquisition led to a rebranding from DME to GME, signaling a renewed focus on building out commodity markets in Saudi Arabia and across the wider Gulf Cooperation Council as part of a long-term strategic roadmap.
With this new partnership, GME and SHFE are poised to play a major role in shaping the future of commodity trading between two of the world’s most dynamic economic regions.
