India's MCX Recognises UAE Good Delivery Gold in Boost to Bilateral Bullion Trade

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MCX recognises UAE Good Delivery gold: what it means for UAE bullion investors and GCC portfolios

India's Multi Commodity Exchange of India (MCX) has formally accepted UAE Good Delivery Standard-accredited gold bars for settlement on its Gold Mini 100-gram futures contracts, effective 15 April 2026.
Three UAE refineries are now eligible: Al Etihad Gold FZCO, Emirates Gold DMCC, and Sam Precious Metals FZ LLC, as named in MCX Circular No. PMT/178/2026.
The recognition builds on the India-UAE Comprehensive Economic Partnership Agreement (CEPA), under which bilateral gold trade grew from approximately USD 3 billion to USD 17 billion between 2022 and 2025.
UAE Good Delivery accreditation requires minimum 995 fineness, AED 55.1 million tangible net worth, annual production of at least ten metric tonnes, and independent responsible sourcing audits.
For UAE advisors, the development strengthens the investment case for physical gold as a portfolio diversification tool, with enhanced cross-border liquidity and exchange-level price discovery.
UAE-refined gold remains VAT-exempt, preserving after-tax returns for GCC investors holding physical bullion.

A New Milestone for the Emirates Bullion Market Committee's Gold Accreditation Framework

The Emirates Bullion Market Committee established the UAE Good Delivery Standard in November 2021 to create a nationally governed quality framework for UAE-refined bullion. India's MCX recognition in April 2026 confirms that UAE-refined gold now meets the settlement standards required on one of Asia's most active commodity exchanges - a significant step in the integration of the UAE-India bullion corridor under the Comprehensive Economic Partnership Agreement (CEPA).

For alternative investment professionals across the GCC, the development adds tangible commercial substance to gold's case as a portfolio asset. Access to Indian commodity exchange liquidity through UAE-sourced gold, combined with the preferential tariff treatment afforded under CEPA's Tariff Rate Quota (TRQ) mechanism, reduces friction in the supply chain and broadens the channels through which UAE advisors can position physical gold for clients seeking diversification.

What MCX Has Recognised - and Why It Matters

On 6 April 2026, MCX issued Circular No. PMT/178/2026, formally accepting UAE Good Delivery (UAEGD) Standard-accredited gold bars for physical settlement on its Gold Mini 100-gram futures contracts. The circular took effect on 15 April 2026 and applies to Gold Mini contracts with May 2026 and later expiry dates - meaning the change is already active across current trading cycles.

The recognition designates three specific UAE refineries as eligible: Al Etihad Gold FZCO, Emirates Gold DMCC, and Sam Precious Metals FZ LLC. Gold bars from these refineries meeting minimum fineness of 995 parts per thousand now qualify as Good Delivery for MCX settlement purposes, placing UAE-refined bullion on equivalent footing with bars from other internationally recognised refining centres. Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade and Chairman of the Emirates Bullion Market Committee, welcomed the decision, stating it "reflects the integrity and transparency of the UAE's gold supply chains and the confidence international markets place in our regulatory framework."

How the UAE-India Bullion Corridor Was Built

The MCX circular is the latest step in a deliberate four-year regulatory sequencing. The UAE Good Delivery Standard launched in November 2021, establishing the technical foundation. The India-UAE CEPA entered force on 1 May 2022, providing preferential customs duty treatment on gold imports from the UAE - a 1 percentage point advantage over standard duty rates, subject to an annual TRQ. Crucially, only UAEGD-compliant bars qualify for import under the concessional quota, creating direct commercial incentive for Indian importers to source from accredited UAE refineries.

In terms of scale, bilateral UAE-India gold trade grew from approximately USD 3 billion in 2022 to USD 17 billion by 2025. India now sources roughly 19-21% of its total gold imports by value from the UAE - a fundamental shift from the country's historically peripheral supplier role. As Khaleej Times reported on this development, the UAE has surpassed the UK to become the world's second-largest gold trading hub, with over USD 129 billion in annual precious metals trade. The TRQ itself has expanded progressively, from 120 metric tonnes in FY 2022-23 to 160 metric tonnes in FY 2024-25, reflecting the growing commercial appetite on both sides.

What the UAE Good Delivery Standard Actually Requires

Eligibility for UAEGD accreditation sets a high bar. Applicants must hold a minimum tangible net worth of AED 55.1 million (approximately USD 15 million) and demonstrate three consecutive years of operations. They must also produce at least ten metric tonnes of gold annually across each of the prior three years. Independent third-party auditors inspect refinery premises and conduct laboratory assaying before the Emirates Bullion Market Committee issues formal accreditation.

The responsible sourcing component is equally demanding. UAE refineries must follow a five-step due diligence framework aligned with OECD guidelines for conflict minerals, covering supply chain risk assessment, mitigation strategy, and annual audit reporting to the UAE Ministry of Economy. As part of the UAE's broader positioning as a global alternative assets hub, this governance architecture signals to international counterparties that UAEGD gold has been sourced through audited, responsible supply chains. That responsible sourcing verification is an increasingly important qualifier for institutional buyers. Only three of approximately ten active UAE refineries currently hold UAEGD status, making the accreditation a genuinely selective designation.

What This Means for Alternative Investment Advisors in the UAE

For advisors building gold into client portfolios, the MCX recognition strengthens the investment case for UAE-refined physical bullion. It adds exchange-traded liquidity and transparent price discovery in one of the world's largest gold-consuming markets. Research from the World Gold Council shows that a 2.5% gold allocation improves portfolio Sharpe ratios by approximately 12% on average, reflecting gold's consistently low correlation with equities and fixed income. UAE client appetite is already high: 57% of affluent UAE investors planned to allocate to gold in 2025, according to HSBC's Affluent Investor Snapshot - a 5-percentage-point increase from the prior year's cohort.

In practical terms, the Gold Mini contract - covering 100-gram bars - is well-suited to mid-sized commercial hedging and incremental portfolio implementation, without requiring exposure at full kilogram contract scale. UAE-refined gold also remains VAT-exempt, preserving after-tax returns in a way that gold held in many other jurisdictions cannot match. For GCC clients with family business interests or commodity trading operations spanning both UAE and Indian markets, the alignment of refinery standards with MCX settlement requirements reduces operational complexity and creates cleaner hedging structures. Advisors tracking how commodity-linked exposure is being repositioned across GCC portfolios may also find relevant context in our earlier analysis on energy-linked alternatives reshaping UAE portfolio allocations.

What Clients are Asking their Advisors

What is the UAE Good Delivery Standard for gold?

The UAE Good Delivery Standard is a national accreditation framework established in November 2021 by the Emirates Bullion Market Committee, overseen by the UAE Ministry of Economy. It certifies that gold bars from accredited UAE refineries meet strict requirements on purity (minimum 995 fineness), weight, responsible sourcing, and governance. Only three UAE refineries currently hold active UAEGD accreditation, out of approximately ten operating within the country.

Which UAE refineries are now eligible for delivery on MCX India?

MCX Circular No. PMT/178/2026, effective 15 April 2026, names three UAE refineries: Al Etihad Gold FZCO, Emirates Gold DMCC, and Sam Precious Metals FZ LLC. These are the three currently active UAEGD-accredited refineries. The recognition applies to Gold Mini 100-gram futures contracts with May 2026 and later expiry dates - it does not yet extend to the larger 1-kilogram Gold contract.

How does the UAE Good Delivery Standard compare to the LBMA standard?

The London Bullion Market Association (LBMA) Good Delivery Standard is the longer-established benchmark governing global over-the-counter gold trading through bilateral bank relationships. The UAE Good Delivery Standard is a newer, nationally governed framework modelled on similar technical principles - purity, weight, responsible sourcing, and third-party audit - but overseen by UAE federal institutions rather than the LBMA. A refinery may hold one, both, or neither accreditation independently; the two are separate certification processes.

What does the MCX gold recognition mean for UAE investors?

UAE-refined gold bars from the three accredited refineries are now accepted for physical settlement on MCX, one of India's largest commodity exchanges. For UAE-based investors or family offices with Indian market exposure, this creates direct linkage between UAE-sourced bullion and Indian exchange liquidity. Combined with the CEPA preferential tariff quota - which grants concessional duty rates on UAE gold entering India - it reduces the cost and complexity of positioning UAE-refined bullion within the Indian supply chain.