St. LOUIS (ResourceInvestor.com) -- Gold Fields, the world's fourth largest gold producer, says it intends to list on the Dubai stock exchange by the end of October. By doing so, the company will become the first gold company to list on the Dubai International Financial Exchange (DIFX), the company said in its press release.
The company is already listed in New York [NYSE:GFI], London [LSE:GOF], Johannesburg [JSE:GOGOF] and on the Euronext and Swiss exchanges [SWX:GOLI].
"The DIFX is ideally situated to access both Western and Eastern financial markets given Dubai's optimal time zones, political stability, ultra-modern and efficient trading hubs and international business practices," the company said.
"This listing will enable Gold Fields to access this largely untapped market and traders in the region will now also be able to add pure gold shares to their portfolios."
Dubai is known as the City of Gold, being situated as the entry point for physical gold moving into the Middle East, Central Asia and the Indian Sub-continent.
Ian Cockerill, CEO of Gold Fields, commented: “Gold Fields has always sought to break new ground. In the same way that we seek out gold in the four corners of the earth, we are also constantly searching for efficient sources of capital to fund our ambitious international growth strategy.”
DIFX currently has 16 member banks including Morgan Stanley, Barclays Capital and Merrill Lynch and expects to welcome many more regional and international issuers and members in the near future, according to the exchange’s website.
According to the Gold Fields press release, Dubai has the highest per capita rate of gold consumption in the world totaling $5.8 billion in 2004, or 14% of Dubai’s GDP. In 2005 the gold loving country imported 522 tonnes of gold, up from the 2004’s 502 tonnes.
Dubai's top eight trading partners for gold are India, Switzerland, UK, Malaysia, Saudi Arabia, U.S., Singapore and South Africa.
Dubai also launched the world's newest commodities exchange and the first such marketplace in the Middle East, The Dubai Gold and Commodities Exchange (DGCX), on November 22. Currently, DGCX trades futures in gold, silver, fuel oil, steel, cotton, currency and freight rates.
Last year, Ross Norman of TheBullionDesk.com, said he looks at the prospects of Dubai becoming the “epicenter of global gold trade.” He said “things move fast in Dubai” and the city “has an enviable record for doing things well and doing things on time.”
James Turk, chairman and founder of GoldMoney.com, also said: “With all of the money now flowing to the Middle East because of the rise in energy prices, the new Dubai exchange is well placed."
“We believe that the Dubai International Financial Exchange is superbly placed and structured to be the gateway to accessing capital in the Gulf and beyond. We look forward to working with the regulatory authorities in Dubai to achieve a successful listing of our shares on their exchange,” added Cockerill.
Gold Fields said it may not be through with listing on foreign exchanges, as Cockerill told Reuters SA: "There may be even more (listings) in the future in the Far East... the world's investment dollars are increasingly moving towards the east and companies need to follow the money."
Gold Fields shares were trading down 10 cents at $16.68 in mid-morning trade on the NYSE.
