In a small town, one hour drive from the Malaysian capital, a new high -insurance treasury has emerged to embody the growing demand for gold products and services designed in line with the provisions of Islamic Sharia.
The Swedish Loomis AB unit, which specializes in the circulation of criticism and alloys, in cooperation with the local security company E2S Group, supervises the management of the facility located in the city of Nelay with a storage capacity of 20 tons. This step is an attempt to benefit from the growth of the Islamic alloys sector in the country.
“There is a desire among local alloys to obtain appropriate storage facilities,” said Jeremy Payh, head of Loomis International in Singapore, during an interview before the site’s opening last week in front of a group of traders and officials of refineries and bankers. He added that many local banks recently launched investment products under the so -called halal gold, amid the increasing demand for them.
Gold in Islamic finance
Gold achieved an exceptional performance between basic commodities during the past year, supported by the increasing demand from central banks and investors. Prices recorded a record in April, while expectations, with the possibility of the US Federal Reserve to reduce interest rates, indicate strong opportunities for more gains.
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Among the most prominent of these expectations, what the Goldman Sachs Group indicated with the possibility of an ounce of $ 4,000.
According to Standard Charged PLC, the size of the global Islamic finance market reached about $ 5.5 trillion last year, with expectations of an increase to 7.5 trillion dollars by 2028. Gold is a suitable option for this sector, as it is characterized by an investment asset that it does not generate benefits, which is compatible with Islamic law controls.
But there are other considerations, as investments must be linked to specific alloys, and ownership is transferred directly through transactions. This contradicts some practices in some global markets, as the balances are not always linked to clear material assets.
“Gold actually meets many requirements for the investor who adheres to Islamic principles, it does not generate benefits, and is considered a tangible origin.” Said Luis Hems, the Dubai Gold and Community Exchange, said: “Gold already meets many requirements for the investor who adheres to Islamic principles, as it does not generate benefits, and is considered a tangible origin.”
Halal gold is a preferred option in Malaysia
Investment in gold that is compatible with Islamic law is witnessing a growing momentum in Malaysia and a number of other countries. The gold -backed index -backed index fund in Malaysia has achieved record levels this year, while almost three times trading in Islamic gold contracts on the Dubai Stock Exchange during the first half of the year.
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The Bank Rakyat, who launched a product in April that allows customers to invest online in gold within the controls of Sharia, said that “the demand for investment products in gold is very high.”
She added that customers “convert their savings from cash to gold.”
However, a lack of awareness remains an obstacle to the spread of these investments, according to Andro Nileor, President of the Middle East and Public Policy in the World Gold Council, who participated in setting guidelines for golds -compatible with Sharia.
Nilor said, “There are many assumptions that gold is not considered compatible with Islamic law unless the investor is able to take home … It is necessary to make a greater effort to raise the level of awareness.”
