Saudi-based sharia-compliant fund manager Albilad Capital has partnered with the Dubai Gold and Commodities Exchange (DGCX) to provide pricing data for its recently launched gold ETF.
The exchange-listed instrument, which Albilad claims is the region’s first physically backed and sharia-compliant gold ETF, will use data from DGCX’s Sharia Compliant Spot Gold Contract for its benchmark pricing.
The ETF, primarily aimed at retail investors, will invest 95% of its assets in physical gold purchased from the DGCX and stored in a secure vault in Dubai.
Since its launch in early June, Alibilad Capital has invested in 780 kilograms of gold valued at US$42.67 million.
The collaboration was hailed as “a significant milestone in the development of both gold and Islamic finance markets across the region” by DGCX chief executive, Les Male.
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