Diamond Standard announces Fatwa: The ideal solution for Islamic finance
Diamond Standard Co., producer of the world's only regulator-approved natural diamond commodities, today announced a historic milestone for the Islamic finance industry: the issuance of a Fatwa by Sheikh Dr. Mohamed Ali Elgari, approving the use of diamond commodities to enable more efficient and more proper Islamic finance applications.
Dr. Elgari is an esteemed authority in Islamic finance, having served as Professor and Director of the Centre for Research in Islamic Economics at King Abdulaziz University, and as Shariah board member for organizations including AAOIFI, Islamic Fiqh Academy, Abu Dhabi Islamic Bank, BlackRock, Citibank, Dubai Islamic Bank, Emirates NDB, HSBC, Standard Chartered and other banks worldwide.
A New Era for $5 Trillion of Islamic Finance
The Fatwa signifies a pivotal breakthrough for Islamic finance, where the lending of money with interest is prohibited under Shariah. Instead of directly lending money, the annual settlement for $5 trillion of global loan and bond transactions must be asset-backed, through structures like commodity Murabaha.
Until now, commodity Murabaha used metals like nickel, copper, or aluminum. These assets were often created on paper, as options and warrants—a practice now in conflict with AAOIFI Standard 62, which requires the title to the commodity to be delivered to the borrower. Gold, silver, and food commodities are not permitted for Murabaha, and use of metals can result in substantial storage and delivery costs. In contrast, Diamond Standard commodities are a Shariah compliant, fully deliverable and fungible physical asset, with custody and delivery costs up to 97% less than that for metals like copper.
After the issuance of Standard 62, a consortium of Islamic banks asked Diamond Standard to develop a commodity Murahaba solution, with audited physical custody in a Muslim majority country.
Technology Meets Tradition
Diamonds are a $1.2 trillion natural resource that was inaccessible to investors. Diamond Standard commodities—physical Coins and Bars—contain optimized and equivalent sets of diamonds, transparently sealed with a wireless computer chip. Since the commodities are all equal, they trade easily on spot exchanges, with a daily market price reported by Bloomberg. The wireless chip enables each commodity to issue an electronic title of ownership, recorded and traded securely on a public blockchain. This innovation supports instant title transfer and remote audit, and eliminates all uncertainty. The commodities are approved to settle CFTC-regulated futures and options in the U.S., and the commodity production is internally audited by Deloitte.
GCC Expansion and Islamic Trading Platform
To provide a standing pool of commodities to support Islamic applications, and enable investors to allocate to diamonds as a newly accessible natural resource, Diamond Standard is launching a commodity holding and trading company in the Gulf Cooperation Council (GCC) region. This entity will:
Supply Shariah-compliant diamond commodities to Islamic finance institutions and trading platforms for Murabaha via an active market making desk.
Offer a listed fund vehicle for equity and Sukuk investors seeking to invest in hard assets, expecting the value of diamonds to increase due to Islamic and investment demand.
Anchor the development of new manufacturing, exports, and trading in the GCC region.
This Diamond Standard commodity holding company has secured $280 million in capital commitments and is in discussions with GCC anchor investors to finalize the location of diamond importing, production and trading in the region. The initiative is expected to create over 200 new jobs, relating to commodity operations, import and export, marketing, trading, custody, and lending–as well as Islamic finance jobs.
Tax Free Custody at DMCC
Diamond Standard also announced that it had selected the Dubai Multi Commodities Centre (DMCC) as the venue to provide audited, tax-free custody for the Diamond Standard commodities. This will benefit Islamic banks and investors by avoiding the tariffs on diamonds entering the U.S. and elsewhere.
Unlocking a New Future
Cormac Kinney, Founder and CEO of Diamond Standard, stated:
'We intended to unlock $1.2 trillion of natural diamonds as an investment asset, but their dense value, combined with modern technology, has surprisingly made diamonds ideal for Islamic finance. We are honored to offer this asset to strengthen Islamic values.'
By establishing Shariah-compliant diamond commodities, Diamond Standard is pioneering a new asset class for Islamic finance—fusing centuries-old ethical values with the latest innovations in blockchain and commodities, and offering borrowers and investors an unexpected, but ideal solution for modern Islamic financial transactions.
For more information, visit
https://www.diamondstandard.co/islamic-finance
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Campaign ME
17 hours ago
- Campaign ME
The shifting sands of luxury: redefining luxury through culture-drive experiences
The concept of 'luxury' is evolving in the MENA context. Redefining luxury means it's no longer just about flaunting a lavish lifestyle or possessing shiny goods – it's now a complex weave of real experiences, culture immersion, and intimate significance. It's the seconds that stay with you – moments we'll help last by connecting with people and places and encouraging a connection and understanding. Today's luxury customers throughout the region have a complex form of cultural identity, social aspiration, and personal satisfaction. The quest for exclusivity, custom experiences and real stories isn't simply about status; it's about creating and expressing identity, standing out with intention and building genuine emotional connections. For brands to genuinely connect with this audience, they must be aware of these multi-strand aspirations and design brands that, together with experiences resonate personally and culturally. From old world opulence to cultural re-invention The industry in the region is at a major turning point – moving away from the traditional 'black box' aesthetic and one-size-fits-all luxury ideal towards an era of collaboration, local flavour and storytelling. Globalisation and technological revolution have brought luxury into a sphere where creative excellence and cultural legacy merge, through which the extraordinary is constantly being sought. It's about tying art and authenticity together, borrowing from tradition, art, music, and craft to create full-bodied experiences that are not only beautiful but meaningful. Brands are now threading these cultural aspects into their designs to form increased emotional connections. They are raising luxury from mere things to stories with soul – experiences that respect history while embracing the new. Honouring the past through contemporary artistry Consider Louis Vuitton's 'Savoir Rever' exhibition as an example of celebrating regional culture inspired by Middle Eastern motifs, Islamic art and traditional crafts like detailed embroidery and calligraphy. Laced with these cultural notes, placed within the context of an established house with tradition and heritage, with one foot firmly planted in today and the other striding confidently into the future. During the exhibition, guests stepped into immersive worlds such as traditional souks and historical architecture — transformed through modern materials and digital technology. It was a sensory trip where history married contemporary art. This show wasn't only an homage to local know-how; it was about Louis Vuitton as a visionary bridge, forging a bridge between the past and the future, providing culturally resonant, meaningful luxury experiences which speak deeply to those interests through depth, authenticity, and storytelling. Culture in motion: A lens for redefining luxury Cartier's 'A Journey of Wonders' at the Al Shindagha Museum exemplified this new era. More than a showcase of exquisite craftsmanship, it was a tribute to the UAE's rich cultural legacy. Cartier wove local traditions into every piece, creating a deeply emotional bond rooted in history while demonstrating limitless innovation. It was more than jewellery; it was an immersive, sensory experience – an artistic celebration of culture that elevates luxury into memorable, heartfelt encounters. From ownership to experience: redefining luxury The rules of luxury are changing today. It is no longer only about owning beautiful things; it is about experiencing a story, an emotion, a genuine connection born of culture and creativity. The new luxury is about a journey of discovery and personal meaning – matters that linger long after the experience is over. In this bright, moving landscape, brands that engage in local heritage, innovate through collaboration and tell stories will win. They will redefine the very meaning of luxury – an adventure into the extraordinary, where people do not just possess things but understand and feel the cultural pattern that makes them unique. By Pauline Rady, Regional Managing Director – Client Lead at WPP Media MENA
Campaign ME
a day ago
- Campaign ME
Secrets of success for international brands in the Middle East
The Middle East has become a hot bed for businesses looking to expand into new markets and tap into a consumer set open to new brands and experiences. A young and vibrant population, riding a wave of positivity, alongside governments with money and intent to invest in building infrastructure and opportunities makes it an exciting market to move into. But as global brands turn their attention to this region they must do so with an awareness of cultural nuances. Their approach to marketing and brand building cannot be a carbon copy of other territories – brands must adapt their messaging, trajectory and ambition. Putting customers at the centre of activity is a golden rule for brands no matter where they operate. And so, applying that tenet to the Middle East means respecting local values and attitudes – and demonstrating that through the brand's storytelling. Beyond advertising There are lessons to be learned from some of the biggest global brands that have successfully moved into the region. Take Nike for example – the global sportswear brand has not only featured athletes from the region in its advertising but also considered them in its product line. Nike's marketing campaigns in the region often feature local athletes and stories, building aspirational narratives that people can easily connect with. But it went one step further with the launch of the Nike Pro Hijab in 2017, catering to Muslim female athletes. This was a major milestone as it anchored the brand with an inclusion message that resonated deeply across the region. It demonstrated a genuine understanding and respect for the local culture and empowered women within it. IKEA has similarly taken a thorough approach to adapting for the local market. The furniture brand can teach us all some things about how to craft a 'glocal' strategy. In particular, cultural sensitivity is a must. While its core product range is consistent across the globe, IKEA still makes subtle but significant adjustments to fulfill local needs. These include larger furniture pieces and tailored options to accommodate bigger living spaces and family gatherings. It also makes sure that the selection of materials can accommodate the region's hot and dry climate. And in a similar way to many luxury brands, IKEA creates specific collections and campaigns for Ramadan and Eid. Adapting products and services to the local customer base and using local talent in advertising are important but if this is as far as it goes the risk is that cultural sensibility is a veneer rather than a strategy. The best practice adopted by some brands it to establish significant bases in the region and become local employers. Pepsi has a long history of success in the Middle East, with high market penetration. This is due to strong local investments in facilities, employing thousands of locals and sourcing within the region. PepsiCo is perceived as a global brand that wants more than just to sell products; it wants to be an integral part of the local economy and therefore, the local community. It has also invested in local R&D centres to tailor its product portfolio to local consumer preferences. Mistakes – some brands have made a few Some brands have come unstuck because they have expanded into the region thinking like westerners. Campaigns must appeal to an audience which admires global brands but is also fiercely proud of its local heritage, culture and values. Public sentiment can quickly shift and with it, loyalty. So, any brand serious about making its mark must monitor public sentiment. Social media is a useful tool here. And interestingly, one of the most successful brands in the Middle East – TikTok – is tapping its largest audience, the youth. TikTok has made huge efforts to connect with local influencers. The platform understood the rise of local trends and the importance of fostering local communities. The introduction of TikTok Shops has been a game-changer, especially in the Gulf's booming e-commerce market. TikTok has shown that it cares and nurtures the creative community in the Gulf. It ran the Creator Hub programme to discover and support new creators. Course correction for brands Entering new regions is not easy and even the most successful of brands can make missteps. When that happens, change. Course correction is not an admission of failure; it's a sign of responsiveness and strategic depth. Coming into the region with an open mindset will go a long way. When brands reposition to better reflect local aspirations, values or lifestyles they are more likely to be welcomed. Whether introducing modest fashion lines, halal food certification or Arabic language packaging, modifying products will help make global brands feel part of the region. Global brands need to be on the ground, employing local people and working with local partners and influencers – and then they will find the right tone of voice and approach. In a region as nuanced as the Middle East, the most successful global brands are those that listen, learn and evolve. By Nancy Villanueva, CEO, Iberia and Middle East, Interbrand
Gulf Today
2 days ago
- Gulf Today
Diamond Standard announces Fatwa: The ideal solution for Islamic finance
Diamond Standard Co., producer of the world's only regulator-approved natural diamond commodities, today announced a historic milestone for the Islamic finance industry: the issuance of a Fatwa by Sheikh Dr. Mohamed Ali Elgari, approving the use of diamond commodities to enable more efficient and more proper Islamic finance applications. Dr. Elgari is an esteemed authority in Islamic finance, having served as Professor and Director of the Centre for Research in Islamic Economics at King Abdulaziz University, and as Shariah board member for organizations including AAOIFI, Islamic Fiqh Academy, Abu Dhabi Islamic Bank, BlackRock, Citibank, Dubai Islamic Bank, Emirates NDB, HSBC, Standard Chartered and other banks worldwide. A New Era for $5 Trillion of Islamic Finance The Fatwa signifies a pivotal breakthrough for Islamic finance, where the lending of money with interest is prohibited under Shariah. Instead of directly lending money, the annual settlement for $5 trillion of global loan and bond transactions must be asset-backed, through structures like commodity Murabaha. Until now, commodity Murabaha used metals like nickel, copper, or aluminum. These assets were often created on paper, as options and warrants—a practice now in conflict with AAOIFI Standard 62, which requires the title to the commodity to be delivered to the borrower. Gold, silver, and food commodities are not permitted for Murabaha, and use of metals can result in substantial storage and delivery costs. In contrast, Diamond Standard commodities are a Shariah compliant, fully deliverable and fungible physical asset, with custody and delivery costs up to 97% less than that for metals like copper. After the issuance of Standard 62, a consortium of Islamic banks asked Diamond Standard to develop a commodity Murahaba solution, with audited physical custody in a Muslim majority country. Technology Meets Tradition Diamonds are a $1.2 trillion natural resource that was inaccessible to investors. Diamond Standard commodities—physical Coins and Bars—contain optimized and equivalent sets of diamonds, transparently sealed with a wireless computer chip. Since the commodities are all equal, they trade easily on spot exchanges, with a daily market price reported by Bloomberg. The wireless chip enables each commodity to issue an electronic title of ownership, recorded and traded securely on a public blockchain. This innovation supports instant title transfer and remote audit, and eliminates all uncertainty. The commodities are approved to settle CFTC-regulated futures and options in the U.S., and the commodity production is internally audited by Deloitte. GCC Expansion and Islamic Trading Platform To provide a standing pool of commodities to support Islamic applications, and enable investors to allocate to diamonds as a newly accessible natural resource, Diamond Standard is launching a commodity holding and trading company in the Gulf Cooperation Council (GCC) region. This entity will: Supply Shariah-compliant diamond commodities to Islamic finance institutions and trading platforms for Murabaha via an active market making desk. Offer a listed fund vehicle for equity and Sukuk investors seeking to invest in hard assets, expecting the value of diamonds to increase due to Islamic and investment demand. Anchor the development of new manufacturing, exports, and trading in the GCC region. This Diamond Standard commodity holding company has secured $280 million in capital commitments and is in discussions with GCC anchor investors to finalize the location of diamond importing, production and trading in the region. The initiative is expected to create over 200 new jobs, relating to commodity operations, import and export, marketing, trading, custody, and lending–as well as Islamic finance jobs. Tax Free Custody at DMCC Diamond Standard also announced that it had selected the Dubai Multi Commodities Centre (DMCC) as the venue to provide audited, tax-free custody for the Diamond Standard commodities. This will benefit Islamic banks and investors by avoiding the tariffs on diamonds entering the U.S. and elsewhere. Unlocking a New Future Cormac Kinney, Founder and CEO of Diamond Standard, stated: 'We intended to unlock $1.2 trillion of natural diamonds as an investment asset, but their dense value, combined with modern technology, has surprisingly made diamonds ideal for Islamic finance. We are honored to offer this asset to strengthen Islamic values.' By establishing Shariah-compliant diamond commodities, Diamond Standard is pioneering a new asset class for Islamic finance—fusing centuries-old ethical values with the latest innovations in blockchain and commodities, and offering borrowers and investors an unexpected, but ideal solution for modern Islamic financial transactions. For more information, visit
