Dubai Multi Commodities Centre (DMCC) has announced the inaugural Commodity Murabaha transaction on its DMCC Tradeflow platform. The transaction took place between Noor Islamic Bank and Commercial Bank of Dubai, marking the official launch of the DMCC Tradeflow Islamic product portfolio. According to Ahmed Bin Sulayem, Executive Chairman, DMCC, the DMCC Tradeflow pioneered the use of an electronic central registry of commodity ownership in Dubai. The commodities available on DMCC Tradeflow include oil products, foodstuffs and base metals and if required these goods can be inspected easily by Shari’ah scholars.
Award-winning Shariah product developer and advisor, Shariah Capital, announced today that Shaykh Yusuf Talal DeLorenzo, internationally-renowned Shariah scholar, Chief Shariah Officer and Board Member of Shariah Capital, has relocated to the Dubai office in order to lead the Company's growing Gulf initiatives.
In addition to assuming responsibilities for Shariah Capital's Dubai's office, Shaykh Yusuf has been named the General Manager of Dubai Shariah Asset Management (DSAM), Shariah Capital's joint venture company with the Dubai government's Dubai Commodity Asset Management (DCAM), a wholly-owned subsidiary of the Dubai Multi Commodities Centre.
Reuters reported on 7 January that the Dubai Multi Commodities Centre Authority (DMCC) and Shariah Capital launched an index tracking the performance of Islamic hedge funds investing in commodities.The index performance will be calculated and reported by Thomson Reuters (TRI.TO). The index is based on four hedge funds, part of the DSAM Kauthar Commodity Fund and investing in gold, energy, natural resources and mining. Each fund has received start capital of $50 million from the DMCC.
Peter Cooper reported on 9 April on Business 24/7 about the Sharia compliant Exchange Traded Fund (ETF) by Dubai Multi Commodities Centre (DMCC) and World Gold Council. The ETF will be backed by physical Gold deposited under the Almas Tower of DMCC. After approval of the regulatory body Dubai Financial Services Authority (DFSA) a secondary market will be operated by listing the ETF on the Dubai International Financial Exchange (DIFX).
DMCC has taken a share in London-listed Shariah Capital, which is supervising the compliance. Other Gold ETFs usually used derivatives to replicate the performance of Gold.
Source: http://www.business24-7.ae/cs/article_show_mainh1_story.aspx?HeadlineID=...