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.
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