Dubai Exchange Launches Sharia-compliant Silver Spot Contracts

Dubai Gold and Commodities Exchange has announced the launch of Sharia-compliant Silver Spot contracts,
allowing investors to hedge against inflation by trading physical silver.
This move comes after the exchange received regulatory approval from the Securities and Commodities Authority.

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The new contract will be available for trading starting from October 27,
allowing investors to trade physical silver through a Gulf-based exchange for the first time,
utilising the presence of a central clearinghouse to manage counterparty risk.

The new silver spot contract is based on Sharia principles,
with the physical silver backed by a 999.9 purity silver bar weighing 900 ounces,
complying with the UAE Good Delivery Standard.
Contract delivery will be facilitated through the “TradeFlow” platform,
part of the Dubai Multi Commodities Centre.

Ahmed Bin Sulayem, CEO of the Dubai Gold and Commodities Exchange, highlighted the growing demand for silver and expects the Sharia-compliant silver spot contract to draw significant interest from traders and investors seeking a secure and reliable way to trade the precious metal.

The increased demand for silver is driven by the desire to hedge against rising inflation, with all major categories of silver demand recording record increases in 2022, totalling 1.242 billion ounces, an 18% increase.

In addition to silver spot contracts, the Dubai Gold and Commodities Exchange also offers futures contracts for silver and gold, as part of its efforts to diversify its product offerings and expand the range of available financial assets for investors.

Dubai Exchange Launches Sharia-compliant Silver Spot Contracts

Dubai Exchange

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