On Feb. 23, the U.S. run SPDR Gold Shares ETF was certified as Sharia Law compliant, making it the first gold based financial instrument to be open to the new Islamic statutes on gold ownership for the world's 1.6 billion Muslims.
Run by State Street Global Advisors, and reportedly backed by $30 billion in physical gold, the ETF could soon become a springboard for new investment from the Islamic community.
U.S. asset management company State Street Global Advisors has announced that a huge exchange-traded fund for investment in gold has been certified as being compliant with Islamic financial law.
The question of whether ETFs themselves comply with Islamic law has not been addressed. However, the certification by Amanie Advisors of Malaysia, a leading sharia advisory company specializing in Islamic financial institutions, is expected to stimulate investment in the gold ETF within the Muslim world.
The fund, called SPDR Gold Shares, is one of the world's largest ETFs backed by gold bullion, having a net asset balance of more than $30 billion. Managed and marketed by State Street Global, it is listed on the New York Stock Exchange. - Asia.Nikkei