Dubai Multi Commodities Centre (DMCC), a leading international business hub, has entered into a memorandum of understanding with Aqua Index, a global frontrunner in water commodity trading. This pivotal partnership will support Aqua Index’s initiative to launch the world’s first digital asset directly backed by freshwater resources, representing a significant transformation in the global trading, valuation, and management of water resources.
### A Groundbreaking Digital Asset
This innovative digital asset is unique on a global scale, being backed by high-quality, potable freshwater stored in global reservoirs. It will enable investors, hedge fund managers, traders, and the general public to trade, hold, and receive freshwater as a core commodity. The collaboration merges financial innovation with expertise in water markets, providing a practical mechanism to enhance liquidity and improve transparency within global water supply chains.
### Leveraging DMCC’s Extensive Network
Aqua Index will greatly benefit from DMCC’s vast global network, world-class services, and advanced infrastructure, which facilitate effective trading and investment in water assets. The company aims to enhance the availability and exchange of knowledge regarding water usage and pricing globally, granting access to trading and hedging products available to DMCC and its member firms, while clarifying that DMCC will not own or directly manage the digital asset.
### Remarks from Leadership
At this event, Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer of DMCC, stated, “Close to half of the world’s population experiences water scarcity for at least part of the year, yet water remains the only vital resource lacking a mature and organized market. We take pride in collaborating with Aqua Index to construct a transparent, neutral, and legally sound framework for water to secure the future of this often-underestimated resource. This partnership is a significant step in our efforts to establish a water centre at DMCC, where we will not only emphasize the importance of water but also attract leading companies to create a global hub in Dubai focused on innovation, water security, sustainable practices, and education, ensuring access to water in areas facing shortages of this vital, mobile resource.”
### Vision of Aqua Index
Jacob Shirazi, Chairman and Founder of Aqua Index, commented, “Pricing water according to its utility value, standardizing it based on mineral content and quality, and transforming it into a new class of tradable asset marks a revolutionary change in the global economy. This approach will establish new levels of water management that prevent scarcity, pollution, and inaccessibility. Water, as a collateral tool, will have a significant monetary impact enabling countries and municipalities to enhance their infrastructure capabilities. Through this new initiative of tokenized water resources, Aqua Index provides a practical verification of this concept. The combination of our patented innovative solutions with the capabilities of DMCC’s water centre is set to revolutionize water systems.”
### Future Developments
This announcement is part of DMCC’s ongoing efforts to establish its water center, a new ecosystem dedicated to the global water industry that reinforces Dubai’s position as a central and neutral hub for water trading and innovation. The water center brings together water technology innovators, logistics providers, and commodity traders under a single platform. The introduction of a water-backed token is a cornerstone of DMCC’s water center strategy, providing new tools for risk hedging, improving resource allocation, and financing critical infrastructure in water-stressed regions.
Further details regarding the trading mechanism for the digital token, delivery points, and related regulatory frameworks will be announced in due course.