Monday, 21st February 2005 (3190 views)

The Dubai Metals and Commodities Centre (DMCC) has detailed plans for a gold-linked Islamic investment fund.

Under the terms of the project, an intended principal amount of at least $200 million would be established, in conjunction with the Dubai Islamic Bank (DIB), with some of the funds being used to develop market infrastructure, including three purpose-built towers.

DIB will act as lead arranger to develop a financial arrangement in accordance with Sharia law, as the DMCC's gold and precious metal chief Colin Griffith explained to Gulf News.

"Providing investors with the option to receive payments denominated in gold bullion as an alternative to the dollar is illustrative of DMCC's leading role in the gold and commodity markets," he declared.

"The financing should ensure the credit profile of the DMCC Free Zone is transparent to investors, and is made available to as wide a cross section of investors as feasible."

 

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