UAE: In an ethical finance and fintech development, O Gold, a UAE digital gold investment platform, has partnered with Mawarid Finance, a Shariah compliant financial institution in the UAE, to develop and launch the region’s first Shariah compliant gold-backed prepaid card.
Bandar Alothman, the founder of O Gold, commented: “Our objective is to offer customers ethical financial products that combine the timeless value of gold with practical modern use. This partnership with Mawarid Finance is a significant milestone in our mission to bring inclusive and Shariah compliant innovation to the market.”
The collaboration will offer individuals another way to engage with gold, expanding its role as a traditional store of value to a financial tool. The prepaid card will allow users to transact with gold in a Shariah compliant manner, providing an alternative to conventional financial products that are not asset-backed, aligning with its demand in the digital age.
“Leveraging our deep expertise in Shariah compliant finance, Mawarid Finance is excited to collaborate with O Gold in this groundbreaking initiative. This partnership allows us to extend the benefits of real asset-backed value to a wider audience through a convenient and ethically sound prepaid card,” added Rashid Qubaisi, the CEO of Mawarid Finance.
The joint initiative shows a wider trend in the UAE and beyond, where there is increasing demand for digital, asset-backed financial solutions that comply with Shariah principles. Many organizations have launched similar products.
UAE-based Fasset, an Islamic fintech, used blockchain technology to enable fractional ownership of real-world assets like gold. FAB Private Banking partnered with fintech firm Gilded to offer institutional-quality physical gold to clients and Kinesis Money listed a gold-backed digital currency on the Shariah compliant Emirex exchange in Dubai. Additionally, US-based precious metals mining and blockchain development company Dignity Gold listed its Shariah compliant gold-backed security token DIGau on the Green-X digital asset exchange in April 2024, to expand its presence in global markets.
Meanwhile, in Malaysia, Bank Rakyat Malaysia introduced the eGold Account-I, an Islamic digital gold investment platform, enabling users to own and trade 999.9-quality gold and convert digital holdings into physical gold. Bursa Malaysia also launched the Bursa Gold Dinar, a digital platform allowing users to buy and sell 24k gold.
Other international players like digital wealth management app Versa and New York-based fintech platform Wahed, also introduced Shariah compliant gold investment options including gold-tracking funds and gold-backed debit cards.
