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Dubai to launch gold shares on DIFX
The Dubai Multi Commodities Centre (DMCC) and World Gold Council (WGC) have formed a new company to launch exchange-traded gold securities in Dubai to offer a Sharia-compliant investment choice.
- By Shakir Husain, Staff Reporter
- Published: 18:58 April 7, 2008
Dubai: The Dubai Multi Commodities Centre (DMCC) and World Gold Council (WGC) have formed a new company to launch exchange-traded gold securities in Dubai to offer a Sharia-compliant investment choice.
The dollar-denominated Dubai Gold Shares will be traded on the Dubai International Financial Exchange (DIFX) after the companies receive approval from the Dubai Financial Services Authority.
The shares will be fully backed by physical gold and allow investors to gain exposure to gold bullion.
WGC, an industry body funded by the world's leading gold mining companies, said Dubai Gold Shares will be part of its portfolio of exchange-traded gold (ETG) products.
Officials of both WGC and DMCC did not disclose their share in the Dubai Gold Investments joint venture.
The physical gold bars backing the product will be of Dubai and London Good Delivery Standard, and held in the vaults of the custodian, DMCC, and sub-custodian, HSBC.
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