Dubai's total trade with China hit Dh98.8 billion in 2008, and of this, Dh95.2 billion was generated from imports, Dh919 million from exports and the remaining Dh742 million came from re-exports.

Dubai Multi Commodities Centre (DMCC) yesterday met with a trade delegation from Shenzhen, China in order to boost trade ties between the two locations.

Top of the agenda was how to improve gold trade between Dubai and Shenzhen.

The Middle East accounts for 20 per cent of the world's $50 billion market for diamonds and diamond jewellery, according to a recent McKinsey report.

Retail diamond sales in the GCC region is worth around $2.5 billion a year.

China is the world's largest platinum consumer and the second largest gold consumer.

China's retail diamond jewellery market is worth $1.75 billion.

"Regarding the possible co-operation between DMCC and Shenzhen, more than 90 per cent of Shenzhen companies are focused on the domestic business but we want to expand outside China. The DMCC is a good platform and channel to the international market," Ni Zewang, executive vice-governor of the People's Government of Luohu District, said.

Wang Xinxian, secretary of the Communist Party of China (CPC), said China could learn a lot from Dubai's own gold industry.

"Shenzhen is a very young city but has a population of 12 million which is looking for new designs of jewellery to meet the different needs. We would like to learn more from Dubai from design and manufacturing to sales and distribution," Xinxian said.

Following the delegation's visit, the "most likely" next step for the DMCC is to sign a Memorandum of Understanding (MoU) with Shenzhen to boost gold and jewellery trade.

More than 70 per cent of jewellery in China is traded in Shenzhen, Zewang said.

"Both Dubai and Shenzhen have risen over the decades from once small fishing villages to global economic centres. In that sense, the two cities share a common history&

"We are confident that this collaboration will facilitate an even more conducive business environment for both sides and prove beneficial for commodities traders in both Dubai and Shenzhen," Ahmad Bin Sulayem, executive chairman, DMCC, said in a statement.

Last year, His Highness Shaikh Mohammed Bin Rashid Al Maktoum, Vice- President and Prime Minister of the UAE and Ruler of Dubai, visited China to strengthen ties.

Following the visit, the DMCC signed an MoU with the People's Government of Panyu District to increase cooperation towards mutual growth and the promotion of jewellery trade between the two countries, with particular focus on diamonds and coloured stones.