DGCX to launch Sharia compliant spot gold contract

DGCX to launch Sharia compliant spot gold contract
The partnership will enable both entities to expand their presence in Saudi and Gulf markets

Dubai - Mubasher: The Dubai Gold and Commodities Exchange (DGCX) has reached an agreement with Ayedh Dejem Group to launch the first Sharia compliant Spot Gold contract in the Middle East, to be traded on an international exchange.

According to an official statement issued on Saturday, the partnership will enable both entities to expand their presence in the Saudi market, as well as in the GCC Islamic Finance market, and to attract the interest of regional Islamic financial institutions and banks.

The CEO of the DGCX, Gaurang Desai said, “We are looking at this product to develop local markets and unlock the potential of gold trading in the region. We continually look to work with partners that allow us to capitalize on these opportunities.”

“We are delighted to collaborate with the Ayedh Dejem Group as we believe the new Spot Gold contract will encourage new and existing institutional participants to invest and trade in Sharia compliant products. As the largest derivatives bourse in the Middle East, we are confident of the product’s success and establishing more such partnerships and launching additional products in the future,” Desai added.

“Bringing Sharia compliant products to a wider audience will continue to garner interest from the local populous as well as other global entities that are looking for a route into the newest and fastest growing sector of the mainstream financial markets. Amanie Advisors LLC, the leading global Islamic Finance advisory firm, have been selected to advice on the initiative,” Desai further indicated.

Meanwhile, Ayedh Bin Dejem said that the group is committed to delivering high quality products and services to our customers.

“In addition, this partnership is further evidence of how we are contributing to the growth of the Islamic Finance market. We believe our partnership with DGCX supports our vision to enhance cross-border collaboration as it offers access to the regional gold and commodities market, providing customers with improved hedging and investment solutions in compliance with Sharia law,” Bin Dejem explained.

Source: Mubasher