DDIA, NYMEX to explore setting up Energy and Commodity Exchange ABU DHABI, Feb 15, 2004 (WAM) --The Dubai Development and Investment Authority ("DDIA") today announced a Memorandum of Understanding ("MOU") with the New York Mercantile Exchange ("NYMEX"), to jointly explore, in the coming months, the development of the Dubai Mercantile Exchange ("DME"), the region's first commodity futures exchange. According to Mohammed Al Gergawi, Chairman of the Board of DDIA, DME will strengthen Dubai's ties with the international finance and commodities trading community, attract FDI, leverage the modern infrastructure which is responsible for making Dubai the region's premiere trading hub, and transfer risk management skills to the region, according to a press release issued today. Addressing the impetus behind such an exchange, Gergawi states, "Trading has always been at the heart of the Arab world and is a key driver behind the Dubai Mercantile Exchange. Every major trading hub worldwide has developed a commodity exchange except for the Middle East, which is home to 65% of the world's crude oil and 40% of the world's natural gas reserves." Gergawi emphasized the importance of making Dubai a trading hub, as per the vision of General Sheikh Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Minister of Defence and stressed the participation of the private sector in furthering the economic development of Dubai. Commenting on the role of DME for the region, Vincent Viola, Chairman of NYMEX states "The DME will enable the region to become a serious player in the world's energy and commodities markets, creating greater efficiency and providing a mechanism for managing risk in a regulated and well structured trading environment." The exchange will comprise of traditional exchange components including a trading floor and clearing house. The project envisions the establishment of a training institution for empowering the region's talented youth to operate successfully in the modern derivatives environment. In addition, NYMEX will offer top UAE candidates training through internships on its trading floors in New York. The joint study will focus on the creation of new and differentiated products, primarily revolving around commodities such as crude oil, natural gas, electricity futures and metals such as aluminium and gold. In reference to DDIA's partner, NYMEX, Gergawi states, "We are pleased to explore this opportunity with NYMEX, the largest energy exchange in the world. NYMEX believes in the vision of s General Sheikh Mohammed for Dubai and has clearly demonstrated its expertise in the sector given a 130-year history in the business. They are not just the largest player in the sector, but one of the most innovative market institutions in the commodities arena." Discussing the merits of basing the exchange in Dubai, NYMEX President J. Robert Collins states, "We are pleased to be part of such an important project, and feel that Dubai's state-of-the art infrastructure, pro-business environment and diversified base of talent and resources will contribute greatly to the projects success." Given the importance of the Middle East in the oil & gas world, the DME is expected to greatly enhance the sophistication of the local and regional players, and attract business to Dubai's already booming economy. According to Collins, this is best accomplished via a "true partnership with DDIA" in which a transfer of skill and focus on long-term sustainability is the key to success. MORE WAM-VV 12 51 CCCCQQE