The Dubai Multi Commodities Centre and Borsa Istanbul have signed a Memorandum of Understanding (MoU) to extend its current scope of collaboration, specifically linked to the trade of bullion, they said in a joint statement Thursday.
Aside from further enhancing bilateral trade between Dubai and Istanbul, the terms of the MoU state that the two entities will collaborate to establishing a universal Shariah-compliant gold exchange for Islamic markets.
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Establishing such an exchange has been a topic of debate following a recent initiative by the World Gold Council and the Accounting and Auditing Organisation for Islamic Financial Institutions that allows gold to be used as a commodity to back Sharia-based financial products.
The terms of the MoU also cover a number of enhanced membership services that will benefit the Borsa Istanbul, DGCX and DMCC Tradeflow platforms alike. Within this framework, DMCC and Borsa İstanbul decided that spot and futures trading and settlement of gold and other precious metals on a single platform will be initiated.
Turkey is one of the UAE’s largest trading partners, with more than US$6.7 billion in bilateral trade last year. The UAE is currently home to more than 10,000 Turkish citizens, with more than 500 Turkish businesses operating in the country.
Ahmed Bin Sulayem commenetd: “At DMCC, we are dedicated to collaborating with international market players, and working towards establishing and sharing best practices to improve and strengthen the global commodities trade. That is why enhancing our partnership with Borsa Istanbul marks a natural evolution in how we seek to join and develop the global markets, and improve cross-border efficiencies in the precious metals trade.”