The Dubai Gold & Commodities Exchange (DGCX), the largest and most diversified derivatives exchange in the Middle East, is waiving fees for its Shari’ah Compliant Spot Gold Contract symbol (DGSG), as per a press release from DGCX.
Having now received regulatory approval from the UAE Securities and Commodities Authority (SCA), the fee waiver for DGSG will run from 21 August 2023 until 31 December 2023. During this period, DGCX will waive all DGCX and Dubai Commodities Clearing Corporation (DCCC) fees, including those associated with trading, clearing and delivery. This fee waiver excludes the SCA fee of USD 0.03.
DGCX is also seeking approval from SCA to waive fees for its Gold Futures contract and will update the market accordingly.
Against a backdrop of global inflationary pressure and economic uncertainty, the demand for gold has remained robust as investors seek safe-haven assets. In the first half of 2023, the price of gold increased by 5.4%, closing at USD 1,912.25/oz at the end of the period. Excluding developed market stocks, gold has outperformed nearly all other major assets this year, demonstrating its role as a reliable store of value.
Louis Hems, Commercial Director of DGCX, said: “Having seen significant growth in the DGCX Shari’ah Compliant Spot Gold Contract since its launch in 2018, we expect the waiving of fees to attract greater volumes and act as a catalyst for the contract over the long-term by bringing in new investors from across the region and around the world. At the same time, the increasing demand for gold in the current economic environment, alongside the steady growth of the Islamic finance industry, is adding further support to volumes and liquidity. DGCX is committed to working closely with its members to create a market that is as efficient and fair as possible.”
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
