This collaboration is expected to improve access to the Shariah-compliant gold market for Islamic investors.
WGC, in a release, stated that the meeting assessed current market practices related to identified gold related documentation and products. Deliberations were aimed to inform and obtain input from key stakeholders including regulators, financial institutions, law firms, exchanges, industry associations and Shari’ah scholars on standardised product documentation through a series of discussions including the use of the Allocated Gold Agreements, Gold Consignment Agreements, gold swap product confirmation and other products such as ETFs and gold Sukuk.
Natalie Dempster, managing director of Central Banks and Public Policy at the World Gold Council, commented: “The World Gold Council is delighted to be working with IIFM to educate the financial services market and build awareness of the range of gold products available to investors. This collaboration offers the opportunity to provide greater access to the gold market and open up a new investment class for Shari’ah compliant investors to deploy their wealth and diversify market risks.”
Dr. Şenol Duman, executive vice-president of Borsa Istanbul, stressed out the importance of Stock Markets and the role of Borsa Istanbul for the development of Islamic Capital Market products. He stated: “We are delighted as Borsa Istanbul to host this important Consultative meeting and we are devoted to the development of the Islamic Financial Sector, the Precious Metals Market and the Capital Markets. Therefore we trust this meeting to be beneficial for all the participants and we hope for a fruitful outcome.”
Ijlal Ahmed Alvi, chief executive of the IIFM, who chaired the meeting, stated: “ This consultative meeting is a first step in achieving the common goal of developing a suite of Shari’ah-complaint standard documentation and product confirmations for use by institutions who are already active in Islamic finance as well as those who are looking to expand services in Shari’ah-complaint gold related asset class. We are grateful to Borsa İstanbul for hosting this important meeting and to all the participants for their valuable input and guidance. The outcome of the meeting will enable IIFM and World Gold Council to assess and prioritise the standardisation of certain gold related documentation and products to be developed in the next phase”.