DGCX to launch region’s first Shariah-compliant spot gold contract

DUBAI / WAM

The Dubai Gold & Commodities Exchange (DGCX) and Ayedh Dejem Group, a conglomerate from the Kingdom of Saudi Arabia, have agreed to develop and launch the Middle East’s first-ever Shariah-compliant spot gold contract to be traded on an international exchange.
The partnership enables both entities to increase their presence in the Saudi Arabian and wider GCC Islamic finance market, and attract the interest of regional Islamic financial institutions and banks. This development is reflective of the growing potential of the Saudi Arabian and wider GCC regions’ Shariah-compliant gold markets.
According to the World Gold Council, Saudi Arabia’s gold demand stood between 60 and 85 tonnes. This is the highest in the Middle East and sixth in the world, representing almost 30 percent of demand across the
region. Shariah-compliant gold investments are worth an estimated USD$2 trillion, which means the decision to launch this new contract is ideally timed.
Gaurang Desai, Chief Executive Officer of the DGCX, said, “We are looking at this product to develop local markets and unlock the potential of gold trading in the region. We continually look to work with partners that allow us to capitalise on these opportunities. We are delighted to collaborate with the Ayedh Dejem Group as we believe the new spot gold contract will encourage new and existing institutional participants to invest and trade in Shariah-
compliant products.”
Ayedh Bin Dejem, Chairman of the Group, said, “We are committed to delivering high- quality products and services to our customers, and, in addition, this partnership is further evidence of how we are contributing
to the growth of the Islamic
finance market.”