Deloitte and Isra: Characteristics of Global Gold Investment Markets for Sharia-Based Investment Solutions

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The current COVID-19 pandemic and its economic consequences have highlighted new market services that are leveraging digital transformation by shaping new business models; gold, in particular, is the subject of Deloitte’s latest report.

Deloitte’s Middle East Islamic Finance Knowledge Center, in collaboration with the International Shariah Research Academy (ISRA), has launched a new report on the industry, “Characteristics of Global Gold Investment Markets for Sharia-Based Investment Solutions”. The report assesses the current state of gold investment markets in major Islamic financial markets and analyzes the main economic and commercial drivers of gold trading and investment, in particular Sharia-compliant product offerings. , and examines the opportunities that gold as a commodity provides for Sharia law. innovative investment solutions.

“Deloitte Middle East leverages its global capabilities and expertise to deliver personalized Islamic financial services in a dynamic and changing landscape. For more than ten years, our Islamic finance news series has provided practical market insights and knowledge that can be turned into business opportunities for our clients, ”said Khaled Hilmi, Financial Services Industry Leader, Deloitte Middle East.

In addition, Deloitte’s report examines the Sharia-compliant gold market in seven countries, as well as the regulatory and policy environment, the products offered by various market institutions, and regional differences in these markets.

The report also aims to present a high-level approach to align Maqasid al-Shariah with the SDGs and ESGs and examines how IIFS can leverage technology to design products that will diversify their product offering and increase social value for markets and societies. Finally, the analysis of gold investment markets and the need for new Sharia-based investment products revealed a number of key points that industry leaders need to push forward.

“ISRA has always focused on finding a practical solution based on Sharia guidelines for the Islamic financial market around the world. In the current global situation, the focus must be on achieving the goal of Sharia (Maqasid al-Sharia) in all of our products and services that we offer to our stakeholders, ”said Prof. Mohamad Akram Laldin , Executive Director of the International Sharia Research Academy. for Islamic finance.

“Our collaborative, cross-sectoral approach to studying Sharia-compliant innovation in global gold markets has resulted in excellent and insightful practice and policy development in the countries and markets we examined. The prospects for developing financing and investment products along the global gold value chain are critical. For example, our study reveals that investors and financial institutions will benefit from the development of the gold sukuk market for small investors in upstream and downstream gold investments, ”says Dr Hatim El Tahir, Director of Deloitte Islamic Finance Knowledge Center.

“The UAE market being one of the major gold hubs in the world, and the faith that Noor Capital has in the importance of digitalization in local and regional markets, has led us to develop a platform to trade advanced electronics to meet the growing demand for sharia gold. investments. Our technology completes the cycle from gold refiners and gold brokers / traders to end users, ”said Abdullah Al Swaidi, Executive Director of Strategy, Noor Capital.
To view the full report, click here.

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