DGCX’s Spot Gold Contract Receives Further Shari’ah Certification
Minhaj Advisory issues Shari’ah Pronouncement (Fatwa) determining that contract is in line with Islamic rules and principles
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 leading 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 LLC, another leading 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.”
Professor 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.
About DGCX: Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing global participants to trade, clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives and financial infrastructure. DGCX is an electronic commodity and currency derivatives exchange with over 200 members from across the globe, offering futures and options contracts covering the precious metals, energy, equities and currency sectors. DGCX is a subsidiary of DMCC (Dubai Multi Commodities Centre), a Dubai Government Authority for trade, enterprise and commodities. For more information: www.dgcx.ae
DGCX also owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC). DCCC is federally regulated by the Securities & Commodities Authority (SCA) and is recognized as a Third-Country CCP by European Securities Markets Authority (ESMA) with over 90 clearers from across the globe. For more information: www.dccc.co.ae
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