The Dubai Gold & Commodities Exchange (DGCX), the largest and most diversified derivatives exchange in the Middle East, announced the launch of the GCC’s first Shari’ah Compliant Silver Spot Contract (DSSC), aimed at providing investors with a reliant and transparent platform for trading the white metal.
Having received regulatory approval from the UAE Securities and Commodities Authority (SCA), the new contract will be available for trading from 27 October 2023. DGCX will also be waiving its fees for the DSSC contract until 31 December 2023. With the launch of DSSC, investors will, for the first time, be able to invest in physical silver through an exchange in the GCC with the benefit of a central counterparty clearing house, mitigating credit risk. .
Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, said: “The world will see accelerating demand for silver as the precious metal is increasingly used in industries like solar energy and investors maintain their focus on asset diversification. This, combined with the increasing maturity of the global Islamic finance industry, has created the ideal environment for DGCX to launch the region’s first Shari’ah Compliant Silver Spot Contract. Based on our discussions with the market and the success of our Shari’ah Compliant Gold Spot Contract launched in 2018, we expect to see significant interest in DSSC from both traders and investors looking to access silver in a secure and reliable way. We look forward to working closely with our members to continue bringing innovative contracts to the market in the months and years ahead.”
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
