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In its capacity as Shariah advisor, 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. The team at DMCC has the vision to translate this investor need into a serious product initiative. We are privileged that the DMCC has chosen Shariah Capital to join it in this important effort."
Ahmed bin Sulayem, Executive Chairman, DMCC said: "DMCC is constantly exploring new avenues for opportunities to service the growing needs of its stakeholders. There has been increasing interest among local investors in Shariah-compliant investments, and DMCC is keen to expand the scope of its activities to include the development of commodities asset-based investment vehicles. Shariah Capital has a well-established global reputation and the DMCC looks forward to working closely with them to offer our clients valued-added services."
Shaykh Yusuf Talal DeLorenzo, Chief Shariah Officer of Shariah Capital, will lead the Shariah process for DMCC's new products. "Existing Murabaha offerings have long relied on foreign metal exchanges," Shaykh Yusuf said, "even to the point of stretching credibility. The DMCC, with its own warehouse receipt system for commodities inventoried in the UAE, is in a unique position to take a different approach, one we believe will result in products backed by the full faith and credit of the Dubai government that offer higher returns and greater transparency to the Shariah-compliant investor. It is very exciting to think about the range of commodity-linked investment products that could be developed with DMCC, and I am confident that Shariah Capital will bring all of its creative disciplines to the task."
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Posted by Medilyn Manibo, Assistant News Editor
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