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DMCC and Shariah Capital to develop investment products

DUBAI — The Dubai Multi Commodities Centre (DMCC) and Shariah Capital, Inc., have signed an agreement to explore the development of Shariah-compliant investment products based on hard assets such as commodities and precious metals, according to a joint announcement yesterday.

A US-based organisation with a DIFC-registered office in Dubai, Shariah Capital Inc. is a multi-dimensional company that creates and customises Shariah-compliant financial products and provides Shariah compliant consulting and advisory related services.

In its capacity as Shariah adviser, Shariah Capital will work with DMCC senior management to convert the centre's expertise in securitising commodities inventoried in Dubai into DMCC-branded investment tools whose underlying physical assets represent Shariah compliant financing and investment opportunities.

Shariah Capital also will work with investment managers exclusive to DMCC, with a specific focus on DMCC strategies involving precious metals and related commodities that can be configured and monitored for Shariah compliance and distributed to Islamic investors in multiple markets. It is anticipated that such products, taking advantage of Dubai's ready infrastructure, will be seeded by the DMCC and listed on local exchanges.

Eric Meyer, Chairman and CEO of Shariah Capital, commented: "Commodity-based assets represent an enormous untapped opportunity for investors interested in Islamic products and investment tools. The problem has been that there are not enough Shariah-compliant, professionally-managed, commodity-linked products at the investment-grade level."