Gold in Islamic Finance

AAOIFI Shari’ah Standard on Gold, developed in

collaboration with the World Gold Council

Aram Shishmanian, CEO

World Gold Council

8 November, Manama, Bahrain

Gold up 20%, strongest H1 gain since 1980

Gold’s impressive price rise in a range of key currencies in 2016

Source: World Gold Council, Bloomberg as of 12 October 2016

Index Level

100

105

110

115

120

125

130

135

140

145

150

Jan Feb Mar Apr May Jun Jul Aug Sep

US dollars British pounds Euros Malaysian ringgit Indonesian rupiah Turkish lira

2 Gold in Islamic Finance AES presentation Nov 6 2016

Gold has outperformed in the past 10 years

Source: World Gold Council, Bloomberg as of 12 October 2016

* The Bloomberg Takaful Index was initiated on 16 April 2007. The performance reflects the Index’s movement since that date

117%

146% 147%

206%

229%

355%

94%

47%

12% 4%

-12% -29%

-52%

-100%

-50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

Gold(USD/GCC

currencyper oz)

Gold(Malaysianringgit / oz)

Gold (Euro /oz)

Gold(Indonesianrupiah / oz)

Gold(Sterling /

oz)

Gold(Turkish lira

/ oz)

BBGTakafulIndex*

DJ IslamicIndex

DXY Index DJ SukukIndex

USDMYR USDIDR USDTRY

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Gold in Local Currency Terms Financial Indices Currencies

Shift from West to East:

China: rapid growth to become the world’s largest gold

market

Source: Metals Focus, World Gold Council 4 Gold in Islamic Finance AES presentation Nov 6 2016

QE and NIRP

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37%

38%

25%

Less than 0%

Between 0-1%

Greater than 1%

Advanced Economy Sovereign Debt Outstanding (as of 27 July 2016)

Nominal Yields

Note: Sovereign debt from Australia, Canada, Denmark, Euro area (investment grade), Japan, Sweden, Switzerland, the United

Kingdom, and the United States

Source: Bloomberg

Central banks: from sellers to buyers

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New Investors

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Pension and insurance funds

Seeking security and financial protection

Middle Eastern Investors: Under supported

Source: World Gold Council

0

200

400

600

800

1,000

1,200

1,400

1,600

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

Tonnes

India China Middle East**

*Consumer demand comprises jewellery and total bar and coin demand. **Middle East comprises Saudi Arabia, United Arab

Emirates, Kuwait, Egypt, Iran and Other Middle East

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Gold ETP have grown rapidly elsewhere

Middle East falling behind

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

0

500

1,000

1,500

2,000

2,500

3,000

2003 2005 2007 2009 2011 2013 2015

US/oz Tonnes

North America Europe Asia Other Gold

ETP gold holdings in tonnes by region as of 31-Aug-16

Source: Respective ETP providers, Bloomberg, LBMA, World Gold Council

9 Gold in Islamic Finance AES presentation Nov 6 2016

The World Gold Council and AAOIFI partner on the

Shari’ah Standard on Gold

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Gold: Ultimate safe haven asset

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Gold: A Powerful Diversifier for Islamic Portfolios

-0.06

-0.01

0.02

0.10

0.12

0.13

-0.5 -0.4 -0.3 -0.2 -0.1 0 0.1 0.2 0.3 0.4 0.5

Takaful Index

FTSE NASDAQ Shariah Index

DJ Sukuk Index

Axis REIT

DJ Islamic Index

FTSE World Shariah Index

Source: World Gold Council, Bloomberg. 8-year returns and correlations used due to limitations on data availability for Islamic assets

Islamic Asset Classes Correlation to Gold (8 Year)

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Gold: A Long-Term Wealth Preservation Tool

Gold vs. Major World Currencies (1900-Present)

Source: World Gold Council, Bloomberg

13 Gold in Islamic Finance AES presentation Nov 6 2016