(MENAFN- Khaleej Times) Malabar Gold & Diamonds, a leading global jewellery retailer with a strong retail network of over 195 outlets spread across nine countries, has announced the conclusion of a first of its kind Shariah-compliant bullion financing solution.
National Bank of Fujairah (NBF) has structured the bullion financing solution, the jewellery group said.
The gold standard sets out the Shariah rules for trading and transacting in the metal whereby the latter joins equities, real estate, Islamic bonds and takaful as vehicles approved for Islamic finance. The standard lays out a clear guidance on the permissibility to trade in gold and makes it possible for Islamic investors to deploy to grow their wealth, diversify their portfolios, and protect them against market risks in a Shariah-compliant manner.
Abdul Salam K.P., group executive director of Malabar Group, said the group is looking at expanding its presence across the GCC and reinforcing itself as a prominent regional player.
The transaction marks the first-ever Shariah-compliant bullion financing in accordance with the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) standards in the precious metals industry in the UAE.
"We are delighted that we have been at the forefront of this major transaction in the gold and jewellery market," said Vince Cook, CEO of NBF.
"The transaction reflects our continued commitment to delivering innovative products and quality service to our customers in the precious metals industry. This transaction underscores NBF's focus to develop the Shariah-compliant banking sector and cement our NBF Islamic team's capabilities to lead the development of new products," said Cook.
Maya Marissa Malek, managing director of Amanie Advisors, applauded NBF and Malabar Gold for taking the lead in introducing and transacting the first AAOIFI-compliant Islamic gold financing transaction, which is a niche segment in the Islamic banking space.
"NBF has amassed valuable expertise in gold-based transactions over the years in the conventional space and we are very pleased indeed to see this expertise being applied in its Islamic window offerings as well," said Malek.
Malabar Gold & Diamonds is the flagship company of Malabar Group, a leading diversified Indian business conglomerate. Established in 1993 in Kerala, Malabar Gold & Diamonds today has a strong retail network and 13 wholesale units in addition to offices, design centres and factories spread across India, the Middle East and Far East. With an annual turnover of $4.5 billion, the company currently ranks among the Big 5 jewellery retailers globally.
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Issac John Associate Business Editor of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.
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