Sharia-compliant gold standard to attract massive Islamic investments


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A new Sharia-compliant standard for gold is expected to attract massive Islamic investments over the next five years and lead to the creation of at least five new Islamic gold products next year, officials said on Monday.

The World Gold Council (WGC), the market development body that is based in London, and the Accounting and Auditing Organisation for Islamic Financial Institutions (Aaoifi), the Islamic standard setting body, which is based in Bahrain, have developed the standard, which was officially published on Monday.

The standard will help to answer questions from all stakeholders, Islamic scholars to merchants, about how to invest gold in a Sharia-compliant way in the US$2 trillion Islamic finance industry.

“If just 1 per cent of Islamic assets were to go into gold in the next five years, that would be equivalent to 500 tonnes of gold,” said Natalie Dempster, the WGC’s managing director of central banks and public policy. In the third quarter of this year, gold demand was 992.8 tonnes, according to the WGC. With the Islamic finance industry forecast to grow to $3tn in the next decade, according to Standard & Poor’s, the potential for growth is big.

Already a few international players in the gold industry are interested in launching between five and seven products next year, according to Mohd Daud Bakar, founder and chief executive chairman of Amanie Group, which helped the WGC and Aaoifi develop the standard. These products could include a Sharia-compliant exchange-traded funds (ETFs), which are listed on an exchange, tracking indexes.

SPDR Gold Trust, the world’s biggest gold ETF, is expected to be Sharia-compliant, Ms Dempster said.

ETFs are expected to be one of the more popular products as the standard is adopted by gold players. Although gold demand fell in the third quarter by 10 per cent, the only segment to register growth was ETFs.

The net addition of 145.6 tonnes in ETFS in the third quarter took the total assets under management in these products to 2,335.6 tonnes, the highest since April 2013, according to WGC. Online platforms that sell gold products will also target the Sharia-compliant market.

Islamic banks could also use gold as a high-quality liquid asset to comply with more stringent Basel III banking standards that are being phased in. High-quality liquid assets can be composed of cash or assets that can be converted into cash at little or no loss of value.

“Gold can comply with the regulations of central banks and Basel III,” said Mr Bakar. “This can open up a lot of interesting products because gold is very liquid.”

dalsaadi@thenational.ae

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Important questions to consider

1. Where on the plane does my pet travel?

There are different types of travel available for pets:

  • Manifest cargo
  • Excess luggage in the hold
  • Excess luggage in the cabin

Each option is safe. The feasibility of each option is based on the size and breed of your pet, the airline they are traveling on and country they are travelling to.

 

2. What is the difference between my pet traveling as manifest cargo or as excess luggage?

If traveling as manifest cargo, your pet is traveling in the front hold of the plane and can travel with or without you being on the same plane. The cost of your pets travel is based on volumetric weight, in other words, the size of their travel crate.

If traveling as excess luggage, your pet will be in the rear hold of the plane and must be traveling under the ticket of a human passenger. The cost of your pets travel is based on the actual (combined) weight of your pet in their crate.

 

3. What happens when my pet arrives in the country they are traveling to?

As soon as the flight arrives, your pet will be taken from the plane straight to the airport terminal.

If your pet is traveling as excess luggage, they will taken to the oversized luggage area in the arrival hall. Once you clear passport control, you will be able to collect them at the same time as your normal luggage. As you exit the airport via the ‘something to declare’ customs channel you will be asked to present your pets travel paperwork to the customs official and / or the vet on duty. 

If your pet is traveling as manifest cargo, they will be taken to the Animal Reception Centre. There, their documentation will be reviewed by the staff of the ARC to ensure all is in order. At the same time, relevant customs formalities will be completed by staff based at the arriving airport. 

 

4. How long does the travel paperwork and other travel preparations take?

This depends entirely on the location that your pet is traveling to. Your pet relocation compnay will provide you with an accurate timeline of how long the relevant preparations will take and at what point in the process the various steps must be taken.

In some cases they can get your pet ‘travel ready’ in a few days. In others it can be up to six months or more.

 

5. What vaccinations does my pet need to travel?

Regardless of where your pet is traveling, they will need certain vaccinations. The exact vaccinations they need are entirely dependent on the location they are traveling to. The one vaccination that is mandatory for every country your pet may travel to is a rabies vaccination.

Other vaccinations may also be necessary. These will be advised to you as relevant. In every situation, it is essential to keep your vaccinations current and to not miss a due date, even by one day. To do so could severely hinder your pets travel plans.

Source: Pawsome Pets UAE

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The%20specs
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