Diamond Standard Co., the U.S.-based creator of the world’s first regulator-approved diamond commodities, has received a Shariah Fatwa enabling its products to be used in Islamic finance transactions across the GCC.
Issued by Sheikh Dr. Mohamed Ali Elgari, a prominent figure in Islamic banking, the Fatwa deems the company’s diamond coins and bars compliant with Shariah principles. This approval paves the way for their use in asset-backed Islamic structures such as Murabaha, where interest is prohibited and transactions must involve real assets.
“Diamonds offer a compliant, efficient alternative to traditional metals used in Murabaha, cutting storage and delivery costs by up to 97%,” said a company spokesperson.
Diamond Standard’s physical coins and bars, made from standardized sets of natural diamonds, could offer Islamic banks a cost-effective and compliant solution, especially as regulatory scrutiny increases on paper-based commodity deals.
The firm plans to launch a GCC-based trading and commodity holding company, supported by tax-free, audited storage through the Dubai Multi Commodities Centre (DMCC). It has already raised $280 million in capital and is in talks with Gulf investors to establish a local diamond hub, potentially creating over 200 jobs in trading, custody, and Shariah-compliant finance.
Dubai’s positioning as a regional hub for innovative financial products strengthens with this move, aligning both with Islamic values and global investment trends.
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