Dubai Gold Securities LLP today announced that it had accepted Morgan Stanley as an Approved Applicant in connection with the ongoing offering on NASDAQ Dubai of Dubai Gold Securities, the MENA region’s first and only Shariah-compliant ETC.
The acceptance of Morgan Stanley as an Approved Applicant is in line with Dubai Gold Securities LLP’s strategy of attracting leading financial institutions as participants in the primary market for Dubai Gold Securities.
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. Further, we believe that Morgan Stanley’s participation in the offering will serve only to enhance volumes and to tighten pricing in the market for the securities’said Grant Collins, Senior Managing Director at Dubai Commodity Asset Management, the marketing agent for Dubai Gold Securities.
Elaborating further, Sameer Meralli, Managing Director, Dubai Commodity Asset Management, said, ‘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.
Peter FitzGerald, Chief Operating Officer, NASDAQ Dubai, said: ‘Morgan Stanley’s 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.’ Dubai Gold Securities LLP is incorporated in the Dubai International Financial Centre and can offer up to 1 billion Dubai Gold Securities under the Exempt Offer in accordance with the Offered Securities Rules of the Dubai Financial Services Authority. Dubai Gold Securities were first admitted to trading on NASDAQ Dubai on 2 March 2009