Dubai Islamic Bank (DIB) has launched a two-year Islamic certificate which enables investors to capitalise on commodity market movements without tying up all of their capital.

The Al Islami Aquantum Dirham Certificate offers exposure to a diversified portfolio of 12 highly liquid and tradable commodity markets, including energy, agriculture and livestock.

The Core Index systematically takes long and short positions in selected commodity futures contracts, with the objective of profiting from relative changes between the prices of futures contracts with different maturities for the same underlying commodity.

Investors enjoy a high level of capital protection without the requirement to tie-up all their capital for the whole investment period.

Investors receive 90 per cent of their total investment within two business days from the issue date, with profit distributed at maturity based on the performance of the Index. The Certificate is denominated in UAE dirhams with a minimum investment of Dh100,000 ($27,200).

“In today’s challenging economic climate, the Al Islami Aquantum Dirham Certificate stands out as it returns 90 per cent of the investment in two working days from the issue date, while earning returns on 100 per cent of the invested amount,” said Dr Adnan Chilwan, deputy CEO - chief of Consumer & Wholesale Banking, DIB.

“The Certificate gives medium term investors the opportunity to gain exposure to a wide range of commodities, in a Sharia compliant manner and without locking up their capital.”

The Al Islami Aquantum Dirham Certificate is issued by the Royal Bank of Scotland (RBS) and will be solely distributed by DIB in the UAE.

The certificate has been approved by the Fatwa and Sharia Supervisory Board of Dubai Islamic Bank. – TradeArabia News Service