WGC consults Amanie Advisors in creating Global Shariah Standard
World Gold Council (WGC) seeks advice from the Amanie Advisors that is an advisory firm in Islamic finance solutions & Islamic markets in creating Global Shariah Standard on the metal, Gold. WGC along with the Amanie Advisors to explore the possibility of making a global Shariah standard on gold have issued a draft as part of diligence with the industry.
The WGC and Amanie Advisors are together searching out the Islamic finance scholars and practitioners to offer them enough data to define the global Shariah standard on gold as well as meet out their specific prerequisites. According to the WGC’s statement of December 3, 2015, the standard aims to create absolute guidelines on how to use the yellow metal in Islamic financial tool and transactions. Further, having an accepted norm would help WGC to develop broad ambit of Shariah-compliant gold products as well as provide much clarity for Islamic finance investors. Moreover, this technique makes Shariah-compliant tools more prevalent and diverse. Aram Shishmanian, CEO of the WGC, in the support of the research says that the Islamic financial services marketplace is growing and is gaining importance. Hence, the demand for greater understanding and the application of Shariah guidance on the employment of gold is needed. He clearly states that there are some guidelines for gold coins and bar, but when to talk about the gold elsewhere in the financial sector there is virtually no guidance. Islamic banking and finance is governed by the Koran and includes risk sharing. According to a Bloomberg report, Shariah-compliant finance prohibits the involvement in businesses along with the interest payments. The report admits that the Islamic bonds pay returns based on an underlying asset in the cast of a profit rate.