Finance & Capital Market

Dubai brokerage launches Islamic commodity account

Dubai-based brokerage I-Deal said it has launched the region’s first Shariah-compliant managed commodity account, ”Mawthooq.”

The innovative new offering is a professionally managed investment account that provides Shariah-compliant opportunities to invest in precious metals using DGCX’s gold and silver markets, said the company in a statement.

The product makes investments in the precious metals market simple, easy and cost-effective for Shariah-compliant investors while also offering an efficient means of diversifying Islamic investment portfolios.

On the new product, Sufian Ali Saeed Binsuloom, the chairman of I-Deal commercial broker said: "Mawthooq allows Shariah-compliant investors to pursue potentially high returns in the gold and silver markets. Our robust risk management system supports our strategic and business planning to trade efficiently for clients. We are glad that the product has already been well received by Shariah- compliant investors in UAE and GCC markets."

DGCX chief executive Gary Anderson said: "We welcome this initiative by I-Deal to provide a Shariah-compliant product that will invest in DGCX gold and silver futures contracts. I-Deal’s Mawthooq account is an innovative offering that fills a key gap in the market for Shariah-compliant investments in the precious metals market."

"By making investments in this market more convenient and accessible for Shariah-compliant investors, “Mawthooq” is a valuable addition to the pool of Islamic investment products available in the region," stated Anderson.

“We believe such product innovation will play a crucial role in the success of Dubai’s strategy to build itself into the global capital of the Islamic Economy.” he added.  

While the product uses DGCX contracts, the client investment activity is strictly Shariah-compliant. All trading transactions involving the Managed Commodity Account including payments and deliveries are conducted in a Shariah-compliant manner.-TradeArabia News Service