Founder of Sooq Althahab: Shariah-compliant gold sales surge by 20% amid rate cuts and price hikes

TDT | Manama

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Nawaf Saeed, founder of “Sooq Althahab,” the first digital platform for purchasing and investing in gold in compliance with Islamic Sharia, emphasized that the ongoing rise in gold prices has driven more investors to allocate their capital towards gold, viewing it as a rewarding opportunity amidst current economic fluctuations. With interest rates declining and gold reaching a record high of approximately $2,622 per ounce (31.75 BD per gram), the “Sooq Althahab” has observed a 20% increase in demand for Sharia-compliant gold investments.

“Buying gold bullion is among the most popular methods of investing in gold due to its purity, high value, and availability in various sizes and weights, which allows investors to tailor their purchases to fit their budgets and financial objectives,” stated Nawaf Saeed.

“Islamic investment in gold offers a solid hedge against inflation and market volatility, and holding gold provides investors and individuals with a sense of security and stability, particularly since it represents a tangible asset that can be safely stored in vaults or banks.”

Nawaf Saeed highlighted the significance of acquiring gold as a crucial asset in the face of inflation, noting that its price tends to increase over time, providing individuals and novice investors with a secure investment pathway.

For those starting their investment journey, converting cash savings into gold bullion offers a viable alternative to keeping funds in banks, especially given the declining interest rates. “ Sooq Althahab” app further enhances this opportunity by offering Sharia-compliant Musharaka (partnership) contracts.

“These contracts not only enable gold to serve as a hedge against inflation by increasing its value, but they also function within a secure environment to generate liquidity and profits, creating an additional revenue stream,” stated Nawaf Saeed.

Additionally, various Sharia-compliant investment options are available, including gold-backed Musharaka contracts and gold savings accounts. According to projections, gold is expected to remain a safe haven in 2024 amidst ongoing economic and geopolitical uncertainties, prompting investors to seek stability and security