London — The Dubai Gold & Commodities Exchange said Monday that INTL FCStone will act as marker maker for its physically-backed Sharia-compliant gold contract, in a bid to attract some of the estimated $2 trillion Sharia-compliant investments across the globe.
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Trading will commence on the DGCX March 29, 2018.
"DGCX has been working with Ayedh Dejem Group from the Kingdom of Saudi Arabia to launch the Sharia Spot Gold contract, which will be the Gulf Cooperation Council's first ever Sharia-compliant spot gold product to be listed on a regulated exchange platform," it said in a statement.
The contract is certified by Sharia scholars and in line with The Accounting and Auditing Organization for Islamic Financial Institutions standards.
DGCX CEO Les Male said: "INTL FCStone will bring much-needed liquidity to the marketplace and ensure that we have a strong start to trading...This contract is designed to meet the requirements of the varied trading needs of our customer base within the UAE, Saudi Arabia and the wider GCC region. Our partnership with INTL FCStone will attract more global investment to this product."
Barry Canham, global head of the precious metals business at INTL FCStone, said Dubai and the MENA region "are integral markets for our global precious metals business, and we look forward to promoting greater investment in the area alongside DGCX."