DGCX Spot Gold Contract Receives New Shari'ah Certification

SEATTLE (Scrap Monster): The Shari’ah-compliant Spot Gold Contract by the Dubai Gold & Commodities Exchange (DGCX) has received a new Shari’ah certification. The compliance pronouncement was issued by Minhaj Advisory, a leading Dubai-based Islamic advisory firm. According to them, the contract was found to meet all the necessary Shari’ah requirements in accordance with Islamic rules and principles.

Les Male, CEO, DGCX noted that the certification will encourage new participants to trade and invest in the contract, while providing additional confidence to existing investors. He expressed delight on receipt of the certification and hoped that it will boost the exchange’s progressive role in developing the Islamic finance sector. The increasing popularity clearly demonstrates the growing potential of Islamic finance across the UAE and the entire GCC region, he added.

The exchange in collaboration with Ayedh Dejem Group from the Kingdom of Saudi Arabia had launched the GCC’s first ever Shari’ah-compliant Spot Gold product in March last year. Amanie Advisors LLC, a leading global Islamic Finance advisory firm, has been advising the DGCX on this initiative. The Shari’ah-compliant Spot Gold contract was also certified by reputed Sharia scholars.

The DGCX Shari’ah Compliant Spot Gold Contract had witnessed record volumes on first day of trading. The product traded volume of 84 Kilograms worth USD 3.56 million, on its opening day. The grand success of the fist-of-its-kind product to be launched in the GCC was a strong demonstration of the appetite for exchange-traded Islamic products among investors.