The Dubai Gold and Commodities Exchange (DGCX), a leading derivatives exchange, has signed a strategic agreement with Global Islamic Financial Services (GIFS) to partner on the development of Islamic derivatives and commodities.

The memorandum of understanding (MoU) also aims to promote the DGCX’s Shari’ah gold contract, which adheres to Shari’ah principles for the ownership of gold.

Under the MoU, both organizations will collaborate on areas of mutual benefit, including the development of Islamic future contracts and products, and the sales and promotion of Islamic financial products.

The agreement will also provide DGGX and GIFS with opportunities to schedule visits, meetings, and workshops to facilitate consideration of new products and services across innovative, emerging areas of Islamic finance.

Les Male, CEO of DGCX, said: “As the Islamic economy grows in the UAE, wider region and in a growing number of world markets, the signing of an MoU with the Global Islamic Financial Services firm represents an exciting development for the DGCX, as we seek to diversify our suite of Shari’ah compliant finance products and services. The MoU presents both parties with significant opportunities to enrich the global market for Islamic finance and collaborate on the development of relevant, innovative new financial products to market participants.”

Mufti Ismail Desai, CEO of the Global Islamic Financial Services Firm, said: “With the advancement and development of Islamic Finance in the UAE and globally, we at GIFS seek to enhance the industry through the development of unique and innovative structured financial and investment products that are Shariah Compliant.

“This collaboration between GIFS and DGCX presents a unique opportunity to provide a truly unique and innovative suite of Shariah Compliant financial solutions in the region and globally. Our global clients from over 26 countries ranging from banks, asset management firms, Takafol companies and Governments including Central Banks can now access these unique shariah solutions via the DGCX platform under this momentous partnership.”

Earlier this year, the DGCX announced that it was exploring opportunities to launch a new Shari’ah based Silver Futures Contract, owing to the growing popularity of the silver metal as well the growing demand for Islamic financial products. – TradeArabia News Service