World Gold, Dubai Commodities Plan Gold Share Venture
Source: Bloomberg (4/7/08)
Dubai Multi Commodities Centre, a tax-free business park in the United Arab Emirates, plans to start a venture with the World Gold Council to trade the first Islamic securities backed by gold bullion.
Through a joint venture called Dubai Gold Investments, the partners plan to create Dubai Gold Shares and list them on the Dubai International Financial Exchange Ltd., they told reporters at a briefing in Dubai today.
Dubai Gold Shares will comply with Islamic Shariah law, WGC Chief Executive Officer James Burton said at the briefing. The shares will allow holders to gain from advances in the price of gold without having to insure, store and move the metal, he said.
The venture follows exchange-traded gold securities started by the WGC on nine other exchanges including bourses in London, New York, Singapore and Paris. Those securities held gold worth $24.2 billion at the end of March, according to notes distributed at the briefing.