World Gold Council signs memorandum of understanding with the DMCC to support the promotion and adoption of a Shari’a standard on gold in Dubai
Published 25 April, 2016
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 Tradeflow 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."
Further information on the proposed Shari’a Standard on Gold can be found here: www.gold.org/shariah
For further information please contact:
World Gold Council
T +44 207 826 4700
T +44 203047 2166
Note to editors:
World Gold Council
The World Gold Council is the market development organisation for the gold industry. Working within the investment, jewellery and technology sectors, as well as engaging in government affairs, our purpose is to provide industry leadership, whilst stimulating and sustaining demand for gold.
We develop gold-backed solutions, services and markets, based on true market insight. As a result, we create structural shifts in demand for gold across key market sectors.
We provide insights into the international gold markets, helping people to understand better the wealth preservation qualities of gold and its role in meeting the social and environmental needs of society.
Based in the UK, with operations in India, the Far East, Europe and the US, the World Gold Council is an association whose members include the world’s leading and most forward thinking gold mining companies.
DMCC is the authority on trade, enterprise and commodities in Dubai—home to the world’s leading businesses of today, and tomorrow. The most successful markets create conditions that enable producers, traders and consumers to thrive.
DMCC is a Dubai Government Authority committed to developing these ideal conditions and has a strong track record in commodity trade facilitation where we encourage and support business through the platforms we provide. These include our Free Zone, commodity exchanges, legal and regulatory frameworks and our real estate offering.
DMCC is developing the ‘Burj2020 District’ as part of our DMCC Free Zone expansion strategy to provide leading businesses with a commercial property offering unique to the Dubai marketplace. Indispensable to the economic growth of the nation, we - together with our members - deliver strong performance today, and sustainable growth tomorrow.
DMCC. Made for Trade.