Dubai: DMCC, the leading international business district that drives the flow of global trade through Dubai, has signed a Memorandum of Understanding with AQUA-INDEX, a global pioneer in water commodities trading. This landmark collaboration supports AQUA-INDEX's initiative to launch the world's first digital asset token backed directly by freshwater resources, revolutionising how water is traded, valued, and managed globally.
According to Emirates News Agency, the token - the first of its kind globally - is backed by verified, drinking-quality water stored in global reservoirs and will enable investors, hedgers, traders, and the general public to trade, hold, and take delivery of fresh water as a commodity. By combining financial innovation with water market expertise, the partnership offers a practical mechanism for unlocking new liquidity and transparency in global water supply chains.
Under the partnership, AQUA-INDEX will benefit from DMCC's extensive global network, world-class services, advanced infrastructure, and leading commodity marketplace, facilitating the effective trading and investment in water assets. AQUA-INDEX will enhance the availability and exchange of knowledge around global water usage and pricing and provide access to essential trading and hedging products for DMCC and its member companies. DMCC will not directly own or manage the token itself.
Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer of DMCC, remarked on the collaboration's significance in addressing global water scarcity issues, stating that nearly half the global population experiences water scarcity for at least part of the year. The partnership aims to create a transparent, neutral, and legally coherent structure and marketplace for water, securing the future of a resource that has long been undervalued. This initiative is a milestone in the formation of the DMCC Water Centre, which aims to attract leading companies in the sector to create a global hub in Dubai for water innovation, security, sustainable practices, and education.
Yaacov Shirazi, Chairman and Founder of AQUA-INDEX, highlighted the transformative potential of pricing water by its usage value, standardising water by its mineral content and quality, and introducing water as a new asset class for financial trading. This approach is expected to establish new levels of water management, preventing scarcity, contamination, and lack of access.
The announcement forms part of DMCC's ongoing efforts to establish the DMCC Water Centre, a dedicated ecosystem for the global water industry that positions Dubai as a central, neutral hub for water trading and innovation. The Water Centre aims to bring together WaterTech innovators, logistics providers, and commodity traders under one platform.