Khalij Commodities (“KC”) is a Shari’a compliant commodity trading business which facilitates its clients, especially Islamic financial institutions, to execute commodity Murabaha transactions. The salient features of Khalij Commodities include the following:
Regulated Status: Khalij Commodities is the only Shari’a compliant commodity trading platform which is offered by an entity which is fully authorised and regulated by the Financial Conduct Authority. Further, being a regulated entity, Khalij Commodities is fast becoming the commodity service provider of choice for Islamic financial institutions.
Shari’a compliance: The services offered by Khalij Commodities are fully Shari’a compliant and certified by world renowned Shari’a Scholars. The operations of Khalij Commodities are also monitored for on-going Sharia compliance.
Ease of use: As Khalij Commodities has been set up as an easy to use commodity trading platform, with all the relevant notices built into the system. Further, being an online platform, it can be accessed and used using a computer or mobile device from all parts of the world – all you need is an internet connection. Access is available 24 hours a day and 365 days a year.
Cost efficient: As Khalij Commodities is part of a Khalij Group which offers diversified services to its clients in Islamic finance industry, Khalij Commodities offers the most cost effective solution to its client on the commodity Murabaha transactions.
Trading of physical commodities: Although Khalij Commodities transacts on prices quoted on the London Metal Exchange (LME), as Khalij Commodities works with metal traders (rather than metal brokers), all transactions on Khalij Commodities platform represents physical commodities and physical trade.
Physical delivery: Khalij Commodities has a unique feature whereby physical commodities can be traded on the platform as well. Although, physical delivery of commodities is ‘claimed’ by other commodity service providers, Khalij Commodities deals and trades in physical commodities and physical delivery can also be arranged for all commodities purchased through the platform.
Title of ownership: Commodities acquired on Khalij Commodities, the ownership of the physical commodities is transferred to the customer. This is different to other commodity Murabaha service providers where the service provider holds the title as the agent for the customer.