Dubai: The Dubai Gold & Commodities Exchange (DGCX) has announced the exemption of fees for its Shari’ah Compliant Spot Gold Contract (DGSG).
Regulatory approval has been granted by the UAE Securities and Commodities Authority (SCA), and the fee waiver for DGSG will be in effect from August 21, 2023, until December 31, 2023, according to a statement released by the exchange.
During this stipulated period, DGCX is set to waive all fees associated with DGCX and Dubai Commodities Clearing Corporation (DCCC), encompassing fees related to trading, clearing, and delivery. Notably, the SCA fee of $0.03 is excluded from this waiver.
In addition to these changes, DGCX is in the process of seeking SCA’s approval to extend the fee waiver to its Gold Futures contract.
“Having seen significant growth in the DGCX Shari’ah Compliant Spot Gold Contract since its launch in 2018, we expect the waiving of fees to attract greater volumes and act as a catalyst for the contract over the long-term by bringing in new investors from across the region and around the world,” said Louis Hems, Commercial Director of DGCX. “The increasing demand for gold in the current economic environment, alongside the steady growth of the Islamic finance industry, is adding further support to volumes and liquidity.”
Given the prevailing backdrop of global inflationary pressures and economic uncertainties, the demand for gold remains steadfast as investors actively seek safe-haven assets. In the first half of 2023, gold prices recorded a 5.4 per cent increase, culminating at $1,912.25 per ounce at the end of the period. In a noteworthy trend, gold has outperformed almost all other major assets this year, excluding developed market stocks. This robust performance underscores gold’s reliability as a store of value.