Gold Standard in Islamic Finance ‘Almost There’ for Submission

by Claudia Carpenter

Gold products used in Islamic finance would need to be physically-backed and allocated to the underlying asset, according to a draft of a standard for Shariah gold being developed.

“We are almost there” with a final proposal, said Mohd Daud Bakar, a Shariah scholar who is writing the draft for the Accounting and Auditing Organisation for Islamic Financial Institutions, the Bahrain-based industry group that sets Shariah standards in finance. The committee formed to develop the gold standard will meet once more next Sunday and then submit the proposal to AAOIFI’s Shariah Board, he said in an interview in Dubai on Sunday.

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