Dubais Islamic finance economy strengthened under DIEDC, DGCX agreement

The Dubai Gold and Commodities Exchange (DGCX) and the Dubai Islamic Economy Development Centre (DIEDC) today signed a Memorandum of Understanding (MoU), agreeing to share knowledge, promote Shariah Compliant finance, and help foster Dubai as the global capital of Islamic economy.

Abdulla Mohammed Al Awar, CEO of DIEDC, and Les Male, CEO of DGCX, signed the agreement at the DIEDC offices at a ceremony attended by senior representatives from both sides.

Under the MoU, DIEDC will work with DGCX to promote the Shariah Compliant Spot Gold contract, as well as any other Shariah Compliant commodity product subsequently developed by the exchange to cater for the Islamic finance sector, while positioning Dubai as the hub of the Islamic economy.

“In line with our shared goal to transform Dubai into the global capital of Islamic economy, this partnership articulates the commitment of DIEDC to connect relevant stakeholders of the Islamic economy, and transfer knowledge about Islamic finance instruments, such as Shariah Compliant gold and commodity trading. Encouragingly, these instruments are witnessing a high uptake in servicing the growing Islamic finance sector,” said Al Awar.

He added that with the contribution of the Islamic economy to Dubai's GDP increasing to 8.3 per cent in 2016, there is a responsibility to boost the burgeoning non-oil sectors, in keeping with the directives of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to further diversify the national economy and increase alternative revenue streams.

“Following the recent launch of the GCCs first and the worlds only Shariah Compliant Spot Gold contract, this partnership with DIEDC comes at an opportune time for the DGCX. Not only will it be a crucial building block towards introducing other successful Shariah-compliant products on our trading platform, but it will also help shape the progressive role Dubai is playing in developing the Islamic finance sector as a whole,” added Male.

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