NBD launches Gold Savings Certificates

Investors can invest in gold products without physical purchase of the precious metal. The GSC will be issued in paper format and it allows investors to purchase certificates in 500gm or 10kg denominations, with a one-off fee of Dh50 and an annual storage charge of 0.30 per cent. The certificates will be issued for a five year period from the date of purchase, and will be redeemable investment at any time, in either gold bars or the cash equivalent.

R. Douglas Dowie, General Manager, National Bank of Dubai (NBD), said: "NBD is a pioneer of investment products and customers demand innovative solutions that help them minimise risk and manage their portfolios, GSC provide private and corporate investors a combination of benefits from effective hedging against inflation, portfolio diversification and instant liquidity. Our research findings have established that there is a demand and interest for a retail bullion-banking product in UAE. The GSC can be used as a hedging instrument and a risk diversifier in ones investments.

Moaz Barakat, World Gold Council, Managing Director, Middle East, Turkey and Pakistan, said: "Launch of Gold Savings Certificate by NBD in association with The World Gold Council, will give investors who have a keen interest in gold a new product offering to satisfy their needs. The GSC will add to Dubai's title as the 'City of Gold' underlying its role in promoting bullion, gold jewelery industry in the region."