The Dubai Gold and Commodities Exchange (DGCX) plans to launch a new sharia-compliant spot gold contract by the end of March, aiming to tap demand for bullion from Islamic investors in the Middle East.
The DGCX said it had appointed INTL FCStone as the market maker for the contract, which is physically backed by gold and the first of its kind to be listed on an exchange in the region.
A number of sharia-compliant gold products have been launched since last year, after the Bahrain-based Accounting and Auditing Organization for Islamic Financial Institutions issued rules covering the use of bullion.
The DGCX and Saudi conglomerate Ayedh Dejem Group started developing the contract in August of last year, which has now been certified by Islamic finance consultancy Amanie Advisors.
(Reporting by Bernardo Vizcaino; Editing by Amrutha Gayathri)