DUBAI: The Dubai Gold and Commodities Exchange, DGCX, has received a new Sharia certification for its Sharia Compliant Spot Gold contract (DGSG). The Sharia Pronouncement, Fatwa, was issued by Minhaj Advisory, a leading Dubai-based Islamic advisory firm, and determined that DGSG meets all the necessary Sharia 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 Sharia 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 Sharia compliant in December 2017.

“We are confident that this Fatwa will encourage new participants to trade and invest in the world’s only exchange traded Sharia compliant gold product, while giving additional confidence to existing Islamic investors,” said Les Male, CEO of DGCX. “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.”

“Our vision is to lead and excel in meeting the needs of financial institutions in accordance with the rules and principles of Shari’ah,” said Professor Yousuf Abdullah Al Shubaily, Sharia Advisor, Minhaj Advisory. “With this unique product, the DGCX has demonstrated its commitment to meeting the standards put forward by the Accounting and Auditing Organisation for Islamic Financial Institutions, AAOIFI, while underpinning Dubai’s vision to become the global capital of Islamic finance.”

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 Sharia 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.