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Tuesday, April 16, 2024

Dubai’s DGCX waives Shariah gold contract fees

The Dubai Gold & Commodities Exchange (DGCX) has waived fees for its Shariah-compliant spot gold contract (DGSG) following regulatory approval from the UAE Securities and Commodities Authority.

This fee waiver for DGSG will be effective from August 21, 2023, until December 31, 2023. The waiver includes all DGCX and Dubai Commodities Clearing Corporation fees, except for the SCA fee of $0.03.

The DGCX is also seeking SCA’s approval to waive fees for its Gold Futures contract and will provide updates accordingly.

The demand for gold remains strong due to global inflation and economic uncertainty, positioning it as a safe-haven asset.

In the first half of 2023, gold prices rose by 5.4%, closing at $1,912.25 per ounce. Gold has outperformed most major assets this year, proving its value as a reliable store of wealth.

Louis Hems, DGCX’s commercial director, noted the growth of the Shariah-compliant spot gold contract since its launch in 2018.

The fee waiver aims to attract more volumes and investors, benefiting the contract’s long-term prospects. The DGSG contract adheres to Shariah principles and is certified by reputable scholars.

Each contract is backed by 1kg of segregated gold bars meeting UAE Good Delivery standards.

The exchange plans to introduce new contracts, including the Shariah Compliant Silver Spot Contract, pending review by the UAE Securities and Commodities Authority.

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