At the 2016 Dubai Precious Metals Conference, the World Gold Council hosted a successful seminar to update industry participants on the latest developments in the creation of a global Shari’a Standard on Gold-the Standard. The event kicked off the schedule and showcased gold product ideas that will be enabled by the Standard.
Following the conference, the World Gold Council, the market development organisation for the gold industry, is delighted to announce that it has signed a Memorandum of Understanding with the DMCC (the Dubai Multi Commodities Centre) to facilitate the promotion and adoption of the Standard in Dubai, as well as to provide global expertise and insight to the local gold market.
At the beginning of 2016 the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) took on the development of a global Shari’a Standard on Gold, including Shari’a rulings for gold-based financial products, in co-operation with the World Gold Council and Amanie Advisors.
As part of this initiative, the World Gold Council will work with the DMCC to promote the Standard regionally, including engaging with the Islamic financial services industry in Dubai on the Standard’s adoption and practical use. In addition, the World Gold Council will share its knowledge and experience at events organised by the DMCC in support of the regional gold market.
Natalie Dempster, Managing Director, Central Banks and Public Policy of the World Gold Council, said: “As the Islamic financial services market grows in size and importance, so does the need for a greater understanding of the application of Shari’a guidance on the use of gold. While there is currently limited guidance for gold coins and bars, there is virtually no guidance on gold elsewhere in the financial sector.
“We intend to address this need with the Standard and ultimately provide greater access to gold in the Islamic world. Dubai is a major gold market, and we are looking forward to working with the DMCC as part of our Shari’a Standard on Gold initiative, as well as providing market insights and context to the local industry.”
Ahmed Bin Sulayem, Executive Chairman of the DMCC, said: "Supporting the World Gold Council in the development of a Shari’a Standard on Gold is exciting for DMCC as it will open doors to new markets and enable industry participants to trade with confidence.”
“This initiative further reinforces Dubai’s position as the centre of global trade with a world leading infrastructure and continuously expanding services and platforms, including DGCX, which now offers spot gold contracts; regulatory standards such as the Dubai Good Delivery; and Islamic Finance options like the Commodity Murabaha via our DMCC Trade flow platform.
“By continuing to introduce new services and working with partners such as the World Gold Council, we enable businesses and financial institutions to trade to the highest performance globally."