Shariah-compliant gold shares planned


DMCC aims to operate and manage this initiative through Dubai Commodities Asset Management (DCAM), a 100 percent DMCC-owned UAE-based investment company set up last month. DCAM has been established with the objective to develop and seed commodity-linked investment products for distribution in the UAE and other markets. DCAM and the WGC will establish a joint venture company (Dubai Gold Investments — DMCC) ahead of the launching.

Dubai Gold Shares will provide investors with secure, low-cost access to owning gold bullions, without the additional costs normally associated with insuring, storing and transacting in physical gold. Each security will allow investors to gain exposure to precise amounts of specifically identified and exclusively-owned gold bullion, and provides investors, for the first time, with the opportunity to trade holdings in gold bullion on the DIFX in a Shariah-compliant manner.

Dubai Gold Shares will form an integral part of the Exchange Traded Gold (ETG) family of products, established as a result of an initiative by the World Gold Council, the marketing organization funded by the world’s leading gold mining companies.

Gold held by products in the Exchange Traded Gold stable now exceeds $ 24.2bn, or 806 tons as of March 31, and represents more than 86 percent share of the market for this category of security. Securities within the ETG family are currently listed on the London, New York, Johannesburg and Australian stock exchanges, with secondary listings in Mexico, Singapore, Euronext Paris, Deutsche Boerse and on Borsa Italiana.

James Burton, chief executive officer of the World Gold Council, said, “It is the long-term mission of Exchange Traded Gold, supported by the World Gold Council, to remove the barriers to investing in gold across the globe. Our partnership with the DMCC brings together our collective strengths to allow institutions and individuals seeking Shariah-compliant financial products a simple, secure and efficient method of accessing physical gold without having to compromise on their Islamic principles.”

Ahmed ibn Sulayem, executive chairman of DMCC, said, “Dubai Gold Shares will bring about increased transparency in Dubai’s gold markets, and will give a significant boost to Dubai’s position as a leading financial center. More importantly, it will ensure greater integration between the physical and financial markets and will meet the increased investor appetite for gold.”


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