The Dubai Gold & Commodities Exchange (DGCX) has received a new Shari'ah certification for its Shari'ah Compliant Spot Gold contract (DGSG).
The Shari'ah Pronouncement (Fatwa) was issued by Minhaj Advisory, a Dubai-based Islamic advisory firm, and determined that DGSG meets all the necessary Shari'ah requirements in line with Islamic rules and principles. The DGCX, with the support of Ayedh Bin Dejem Group, one of the largest oil transportation and storage platforms in the region, launched the GCC's first and the world's only Shari'ah Compliant Spot Gold contract in March last year. Amanie Advisors, another global Islamic Finance advisory firm, was involved with advising DGCX on the product structure, and issued a Fatwa affirming that it is Shari'ah compliant in December 2017.
Les Male, CEO of DGCX, said: "We are delighted to receive further Shari'ah certification for our Spot Gold Contract, and help shape the progressive role Dubai is playing in developing the Islamic finance sector. We are confident that this Fatwa will encourage new participants to trade and invest in the world's only exchange traded Shari'ah compliant gold product, while giving additional confidence to existing Islamic investors. These types of financial instruments are significantly increasing in popularity, and greatly reflect the growing potential of Islamic finance across the UAE and wider GCC region."
Yousef Abdullah Al Shubaily, Shari'ah advisor, Minhaj Advisory, said: "Our vision is to lead and excel in meeting the needs of financial institutions in accordance with the rules and principles of Shari'ah. With this unique product, the DGCX has demonstrated its commitment to meeting the standards put forward by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), while underpinning Dubai's vision to become the global capital of Islamic finance."
Matar Al Zahrani, CEO, Ayedh Bin Dejem Group, added: "Islamic finance is extending its influence across the globe with more and more institutions embracing Shari'ah compliant instruments. DGCX's Shari'ah Compliant Spot Gold Contract is a terrific example of this, and its success shows the growing appetite for Islamic financial products and services."
Last year, the DGCX partnered with the Dubai Islamic Economy Development Centre (DIEDC) to strengthen Dubai's Islamic finance economy, agreeing to share knowledge, promote Shari'ah compliant finance, and put a framework in place to help introduce other successful Islamic products on the DGCX trading platform with the aim of ensuring that as a hub, Dubai remains at the forefront of the Islamic financial economy.