Dubai Gold Securities LLP had accepted Morgan Stanley as an Approved Applicant in connection with the ongoing offering on NASDAQ Dubai of Dubai Gold Securities, the MENA regions first and only Shariah-compliant ETC.
The Participant Agreement executed with Dubai Gold Securities LLP allows Morgan Stanley to create Dubai Gold Securities subject to it depositing the physical gold bullion that backs every security in issue with the Custodian (HSBC Bank USA, NA) to the offering. Similarly, Morgan Stanley will be able to redeem Dubai Gold Securities and take physical delivery of the underlying physical gold bullion.
The fact that Morgan Stanley has chosen to become an Approved Applicant is indicative of the growing institutional interest in and awareness of Dubai Gold Securities, says Grant Collins, senior managing director at Dubai Commodity Asset Management, the marketing agent for Dubai Gold Securities. Further, we believe that Morgan Stanleys participation in the offering will serve only to enhance volumes and to tighten pricing in the market for the securities he commented.
Since launch, the product has attracted significant interest from Islamic financial institutions, asset managers, and private banks who view Dubai Gold Securities as a cost-effective, efficient, Shariah-compliant alternative to a physical gold trade. The participation by Morgan Stanley underpins the commitment to service such demand for Dubai Gold Securities in the region, says Sameer Meralli, managing director, Dubai Commodity Asset Management.
Morgan Stanleys participation will further increase awareness in the market of this Shariah-compliant product, which is unique in the Middle East. As the international exchange serving the region, NASDAQ Dubai is delighted to host trading of DGS for retail and wholesale investors, says Peter FitzGerald, chief operating officer, NASDAQ Dubai.
L.D.