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DMCC also announced that it will develop and manage a range of Shariah-compliant investment products focused on commodities, through a joint venture initiative between DCAM and Shariah Capital, a US-based, publicly-traded company on the Alternative Investment Market (AIM) of the London Stock Exchange.
The joint venture entity, Dubai Shariah Asset Management, will be owned 51% by DCAM and 49% by Shariah Capital.
Ahmed bin Sulayem, Executive Chairman, DMCC, commented:
"DMCC has progressively established itself as a provider of innovative products in its mandate to promote Dubai as the region's pre-eminent commodity trading hub. DCAM and DSAM will serve as vehicles which offer the region's first commodity-linked Shariah-compliant investment products. We believe such products will be of great interest to institutions and high net worth individuals who are looking beyond the traditional investment areas, and want to participate in the commodity boom in a sustainable and Shariah-compliant manner".
Dr. David Rutledge, Chief Executive Officer, DMCC, said: "DMCC's primary mission is to provide physical, financial and market infrastructure to all participants operating along the commodities value chain. Our initial objective was to develop the physical and market infrastructure critical for building a commodities marketplace in the region. We have done that, with exceptional success, in a remarkably short period of time. The launch of DCAM and DSAM sets similar goals in commodities management, and demonstrates DMCC's commitment to lead our industry in global commodities trading and investment".
To confirm its commitment to the development of Shariah-compliant, commodity-backed investment products, DMCC intends to purchase a 4.99% equity share of Shariah Capital as part of the joint venture arrangement for DSAM, after which Dr. Rutledge is expected to be nominated to join Shariah Capital's Board of Directors.
Eric Meyer, Chairman and Chief Executive Officer of Shariah Capital, spoke enthusiastically about the DSAM partnership and DMCC's equity stake in Shariah Capital: "DMCC has taken a pioneering step in leading the concept of an investment company structure to develop a DMCC-backed brand of Shariah-compliant commodity-linked investment products. DMCC's unique focus on commodities and precious metals will distinguish the DSAM brand, and we believe, establish a new specialty asset class in Shariah. We also look forward to welcoming DMCC as one of our investors, and Dr. Rutledge to our Board of Directors".
Shaykh Yusuf Talal DeLorenzo, Chief Shariah Officer of Shariah Capital, described the Shariah integrity of DSAM: "Both DMCC and Shariah Capital are committed to establishing a brand of Shariah-compliant investment products that meet the most stringent conditions of Shariah compliance. Our goal is to maintain the highest Islamic standards while sourcing strategies that deliver superior Shariah-compliant returns".
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Posted by Eman Hassan
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