DUBAI, United Arab Emirates, 6 December 2016 -- Accounting and Auditing Organisation for Islamic Financial Institutions (" AAOIFI ") Shari'ah Standard No. 57 on Gold and Its Trading is announced with pleasure by the Islamic Accounting and Audit Organization of Financial Institutions and the World Gold Council Controls No. 57 Shariah Standard for the Management of Gold and Its Transactions (the "Standard"). The Standard deals with Shariah rules governing all forms and types of gold, and covers Shariah parameters relating to gold trading, as well as the corresponding rules for institutional gold-type financial products.

The standard will define for the first time the specific rules governing gold as an investment vehicle in the Islamic financial sector. Until now, there have been no rules in this regard. The new standard states that gold investment can be made as long as all the relevant rules of Sharia law are met, including those relating to the possession of gold and the proper calculation of Zakah.

Dr. Hamed Hasan Merah, Secretary General of AAOIFI, said: "This important Shariah standard is the culmination of a great deal of effort by the AAOIFI Shariah Committee and will be the leading and most influential authoritative Shariah standard for the Islamic finance industry worldwide. It contains AAOIFI existing series standard additions, covered in the current environment at the same time dealing with gold aspects related mechanism of islamic law, which is expected to face liquidity management of islamic finance related products, development consistent with islamic sharia law related rules and precepts of new investment products. Hopefully this will be a big positive step forward for the Islamic finance industry."

This standard will help unlock a new type of investment asset, thereby enabling Islamic banks and other financial institutions to develop their customer base and facilitate the development of a wider range of savings, hedging and diversification products.

Commenting on Aram Shishmanian, chief executive of the World Gold Council, says: "This is a groundbreaking move for Islamic investors and the industry as a whole. We are happy to now have clear Sharia guidelines that allow investment in gold. Gold is a proven store of wealth that Islamic investors can now use to protect their wealth and diversify their market risk."

The AAOIFI Islamic Council finalised the discussion of the standard (No. 57) and approved the final wording of the standard at its meeting on 17 November 2016 solstice 19 November 2016. The development of the standard followed the usual rigorous AAOIFI process and was combined with a consultation period including public hearings involving all key stakeholders, designed to ensure that the final standard becomes a practical tool for the industry.