UAE - The Dubai Gold & Commodities Exchange (DGCX) said the first-ever Shariah compliant spot gold contract would go live on March 29.
INTL FCStone, a leading international financial services firm, will be the market maker for the product. The physically-backed Sharia-compliant gold contract is the first-of-its-kind and will mark DGCX's entry into the Islamic finance sector. The launch is strategically placed at a time when Sharia-compliant investments across the globe are worth an estimated $2 trillion, with gold constituting a sizable proportion of those investments, the exchange said in a statement.
Les Male, CEO of DGCX, said given INTL FCStone's expertise and capability in precious metals trading, it would bring much-needed liquidity to the marketplace and ensure a strong start to trading.
"There is already a tremendous amount of interest to hedge and invest in this product given the recent trends in global geopolitics and increased volatility in gold. This contract is designed to meet the requirements of the varied trading needs of our customer base within the UAE, Saudi Arabia and the wider GCC region. Our partnership with INTL FCStone will attract more global investment to this product," said Male.
DGCX has been working with Ayedh Dejem Group from Saudi Arabia to launch the Sharia spot gold contract, which will be the GCC's first ever Shariah-compliant Spot Gold product to be listed on a regulated and reputed Exchange platform.
Amanie Advisors, a leading global Islamic Finance advisory firm, has been advising the DGCX on this initiative.
"Gold remains a good hedge against inflation as well as any financial uncertainties and is therefore a preferred asset within any prudent investment portfolio. DGCX's Shariah-compliant Spot Gold will have a wider appeal among investors in the region and worldwide," Male said.
Barry Canham, global head of the precious metals business at INTL FCStone, said Dubai and more broadly, the Mena region, are integral markets for global precious metals business.
Copyright © 2018 Khaleej Times. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).