Dubai: DGCX waives fees for Shariah-compliant spot gold contract

Dubai: DGCX waives fees for Shariah-compliant spot gold contract

The Dubai Gold & Commodities Exchange (DGCX) on Tuesday said it waived fees for its Shariah-compliant spot gold contract (DGSG) after receiving regulatory approval from the UAE Securities and Commodities Authority.

The largest and most diversified derivatives exchange in the Middle East said the fee waiver for DGSG would run from August 21, 2023, until December 31, 2023.

It said all DGCX and Dubai Commodities Clearing Corporation fees were waived, including those associated with trading, clearing and delivery. However, the fee waiver didn’t include the SCA fee of $0.03.

The exchange said it was also seeking approval from SCA to waive fees for its Gold Futures contract and would update the market accordingly.

Against a backdrop of global inflationary pressure and economic uncertainty, the demand for gold has remained robust as investors seek safe-haven assets.

In the first half of 2023, the price of gold increased by 5.4 per cent, closing at $1,912.25 per ounce at the end of the period. Excluding developed market stocks, gold has outperformed nearly all other major assets this year, demonstrating its role as a reliable store of value.

“Having seen significant growth in the DGCX Shariah-compliant spot gold contract since its launch in 2018, we expect the waiving of fees