Dubai Gold Securities has approved Morgan Stanley to trade its product on the Nasdaq Dubai stock exchange.

Grant Collins, Senior Managing Director of Dubai Commodity Asset Management, the marketing agent for Dubai Gold Securities said: "The fact that Morgan Stanley has chosen to become an applicant is indicative of the growing institutional interest in, and awareness of, Dubai Gold Securities."

Dubai Gold Securities stated that Morgan Stanley shall redeem them, and has been authorized to take physical delivery of the gold bullion.

The global economic crisis had pushed the investors, worldwide, to believe in investing safely in gold.

Gold has mainly been purchased by the individuals rather than the institutions because of the high prices, resulting from high investor demand.

Against each security, known as the 'Dubai Gold', the gold is physical available and kept in the safe custody of HSBC, with one ounce of gold representing one share.

The Dubai Multi Commodity Centre (DMCC) launched Dubai Gold Securities during March keeping in view the high demand for product in the UAE markets.

According to Sameer Meralli, Managing Director of Investments of Dubai Commodities Asset Management (DCAM), a unit of DMCC, the instrument traded about 28,000 times.

The value of each security varied between $90 and $95; and it traded about $2.5 million.

Collins said, "We believe that Morgan Stanley's participation in the offering will serve only to enhance volumes and to tighten pricing in the market for the securities."