Thursday, May 1, 2014

I-Deal debuts region’s first Islamic managed commodity account


IFN Asia Forum 2014
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UAE: I-Deal Commercial Broker, a Dubai-based commodity trading firm, has introduced MAWTHOOQ, a Shariah compliant managed commodity account. Touted as the first to be introduced in the region, the account provides an avenue for investors to invest in precious metals using Dubai Gold and Commodities Exchange (DGCX) gold and silver markets in a Shariah compliant manner.

At a minimum investment margin of US$200,000, MAWTHOOQ facilitates investments in the precious metals market making it simple, easy and cost-effective for Shariah compliant investors. Although the account uses DGCX contracts, client investment activities are strictly Islamic. All trading transactions including payments and deliveries are conducted in a Shariah compliant manner. The account is approved by the Shariah Supervisory Board of Amanie Advisors, who will continuously monitor the product across the transaction cycle to ensure its compliance with Shariah principles.

According to Gary Anderson, CEO of DGCX, the account fills a key gap in the market for Shariah compliant investments in the precious metals asset class. “By making investments in this market more convenient and accessible for Shariah compliant investors, MAWTHOOQ is a valuable addition to the pool of Islamic investment products available in the region,” he explained.

Sufian Ali Saeed Binsuloom, the chairman of I-Deal, shared similar views and pointed out that MAWTHOOQ was well received by Shariah compliant investors in the UAE and GCC markets. “Our managed commodity account, MAWTHOOQ, allows Shariah compliant investors to pursue potentially high returns in the gold and silver markets. Our robust risk management system supports our strategic and business planning to trade efficiently for clients.”

The development of the account is said to be an innovation in the industry. It provides Shariah compliant investors access to a wider selection of investments and to different assets classes.

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