DGCX Partnership Offers Pricing Data for Gold-backed ETF

SEATTLE (Scrap Monster): The Dubai Gold and Commodities Exchange (DGCX) has announced that it has partnered with Riyadh, Saudi Arabia-based Albilad Capital to provide pricing data for its recently launched gold-backed Exchange Traded Fund (ETF). The region’s first physically-backed gold ETF, in compliance with Shari’ah requirements, was launched earlier this month.

According to exchange press release, the ETF will use data from the DGCX’s Shari’ah Compliant Spot Gold Contract (DGSG) for its benchmark pricing. Also, at least 95% of the Tadawul-listed ETF’s assets will be invested in physical gold and stored in a secured vault in Dubai. Since its launch, Albilad Capital has invested in nearly 780 kilograms of gold, it noted.

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The collaboration between the UAE and Saudi Arabia is considered a significant milestone in the development of gold and Islamic finance markets across the region. The new initiative is expected to help investors to easily own and trade the yellow metal, in compliance with the Islamic religious law and investment principles.

Commenting on the development, Les Male, CEO, DGCX noted that the exchange looks forward to foster more fruitful partnerships, in order to further build and shape the landscape across the region over the coming months and years.