DUBAI: A Dubai-based commodities exchange yesterday launched a Shariah-compliant tradable security backed by gold, the first of its kind, which will be traded on the NASDAQ Dubai stock exchange.
Investors have been rushing into gold as concerns mount over the financial sector and the global economy, pushing the price of gold above $1,000 an ounce last month.
Gold rose more than 1 percent yesterday to $950 an ounce.
Dubai gold securities, the first exchange traded commodity (ETC) complying with Shariah law, are aimed at the increasingly popular Islamic finance market.
The securities were launched at an event in Dubai involving the World Gold Council (WGC), NASDAQ Dubai and the Dubai Multi Commodities Center (DMCC). “Dubai gold securities will establish a benchmark for investors looking for innovative solutions to invest in commodities within the framework of Islamic finance,” DMCC Executive Chairman Ahmed bin Sulayem said.
