Ducab adopts Sharia-compliant hedging
Ducab produces about 105,000 tonnes of copper cables per year
Power cables and wires manufacturer Ducab has taken a strategic initiative to convert its conventional metals hedging practices into Islamic structures.
With regard to the development of this innovative hedging arrangement, Andrew Shaw, managing director of Ducab, said, “Ducab is delighted to enter into this arrangement, particularly as we are the first regional cable manufacturing company to initiate metals hedging practices into Islamic structures, It is also gratifying to receive the support of respected financial institutions locally and internationally.
He added: “Strengthening Islamic economic principals are an integral part of our overall approach to growth and development, we will further continue to explore such ideas in other parts of our business. We hope that risk management practices globally in the metals industry will adopt these practices in the coming months.”
The ultimate objective of this initiative is to persuade global metal exchanges to adopt the product as one of the standard traded offerings. This new hedging opportunity will be placed under the spotlight at the 2013 Global Islamic Economy Summit, which will take place on 25 and 26 November, as Ducab seeks to promote the Sharia-compliant hedging to other major companies in the MENA region.