Central Bank of Bahrain launches key murabaha service

Sharia-compliant liquidity and borrowing tool launched


MANAMA: The Central Bank of Bahrain (CBB) in collaboration with Bahrain Bourse (BHB) has developed a murabaha sukuk service for clients and banks, which is a Sharia-compliant liquidity and borrowing tool.

In this regard, Hesa Al Sada, the director of banking services at the CBB, emphasised that “providing such Sharia-compliant product contributes to the diversification of Islamic transactions opportunities, improves the depth of debt market, and enhances the kingdom’s position as a financial centre for Islamic banking.”

Under this service and through an electronic platform provided by Bahrain Bourse, the lending party purchases the sukuk from the CBB, and after having ownership of the sukuk, sells it to the borrowing party as a deferred sale.

Narjes Jamal, chief operating officer of Bahrain Bourse, said, “The launch of the murabaha sukuk service will enhance the diversification of services offered by Bahrain Bourse by providing new Sharia-compliant financing solutions.”

The bourse is continuously working on developing the investment environment by providing alternative investment options to meet the requirements of a wider range of institutional and individual investors.

© Copyright 2019 www.gdnonline.com

Copyright 2020 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.