The Dubai Gold & Commodities Exchange (DGCX) and the Shanghai Futures Exchange (SHFE) have formed a “strategic alliance” aimed at boosting cooperation in product development, clearing and technology.

DGCX is the leading commodity exchange in the time zones between London and East Asia, while the SHFE dominates commodities futures in China, they said.

“The agreement with Shanghai Futures Exchange, one of Asia’s prominent markets, will open a new window of opportunities for market participants in both regions,” said Malcolm Wall Morris, DGCX ceo, in a statement.

“It will enable us to jointly pursue initiatives aimed at higher efficiencies and improved liquidity,” he added.

SHFE lists contracts for aluminium, zinc, and gold, and is planning to launch steel futures later this year.

DGCX offers contracts in gold, silver, and steel rebar; the latter was the first steel futures contract when launched last year.

The United Arab Emirates is now China’s biggest trading partner in the Gulf, with 2007 trade volume of AED 74.9 billion (.39 billion).

“This opportunity will allow both regions to leverage their knowledge and expertise in the energy and metals arena,” said Nishat Bandali, chief marketing officer of DGCX, in the statement.