Dubai Multi Commodities Centre (DMCC), the free zone authority on trade, enterprise and commodities in the emirate, has signed a MoU with Borsa Istanbul to set up an universal Sharia-compliant gold exchange for Islamic markets.

The MoU is aimed at extending the current scope of collaboration, and explore how DMCC can offer insight as the two entities work towards launching a single platform for spot and futures trading and settlement of gold and other precious metals, said Ahmed Bin Sulayem, the DMCC chairman after signing the agreement with Himmet Karadağ, the chairman of the  Borsa İstanbul board and executive committee

The duo also disscussed the setting up of delivery centres in Istanbul and Dubai, he stated.

In addition to gold and other precious metals and precious stones such as diamond and pearl, DMCC offers the trading of a wide range of commodities including tea on both spot and futures markets.

Borsa İstanbul, on the other hand, offers both spot and futures trading platforms for precious metals such as gold, diamonds and precious stones. Gold futures contracts are also offered to the investors on Borsa İstanbul.

This agreement will pave way for establishing a Gold Exchange of the Islamic countries as ordered by Turkish President Recep Tayyip Erdoğan, remarked  Karadağ.

This cooperation is expected to further strengthen the position of Istanbul and Dubai in the global physical gold trade as a result of the synergy to be created by the common efforts, he stated.

The potential of the gold trade is expected to be realised as other Islamic countries take part in this cooperation, he added.-TradeArabia News Service