World Gold Council Wants to Create Standard to Avoid Islamic Finance Disputes
- Centralized rules have support of banks and investment funds
- Scholars are still divided on using the metal to back sukuk
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The World Gold Council is seeking to create a global standard to make the metal’s use in Islamic finance more cost effective by eliminating disputes among scholars.
The 18-member council and Amanie Advisors issued a consultation draft in November to Shariah professionals and practitioners. The WGC has also held bilateral meetings with banks and investment funds, who say that such a template will lead to more gold-backed products, Natalie Dempster, its London-based managing director of central banks and public policy, said in a Dec. 24 e-mail interview.