MANAMA: Bahrain-headquartered Al Baraka Banking Group (ABG) has announced the launch of Islamic commodity murabaha financing service.
The announcement came as Al Baraka Banking Group and Bahrain Bourse signed an agreement during a virtual ceremony attended by the group’s president and chief executive Adnan Ahmed Yousif, Bahrain Bourse chief executive Shaikh Khalifa bin Ebrahim Al Khalifa, and Central Bank of Bahrain executive director of banking operations Shaikh Salman bin Isa Al Khalifa.
“The ABG-Bahrain Bourse agreement is seen as a major boost to Bahrain’s position as an emerging hub for Sharia-compliant transactions as it adds a new dimension to product development and innovation within the Islamic finance sector. The transactions through this platform will strengthen the Islamic debt market of the kingdom,” said Mr Yousif.
He added that the agreement is in line with the group’s efforts to expand and diversify the services it provides, and cater to various market segments through a new and unique line of service for its core client base.
Having a new commodity broker service in the local market provides more flexible Islamic finance alternatives and helps reduce reliance on international commodity brokers as a sole service provider.
Shaikh Khalifa said, “We are pleased to welcome Al Baraka Group on-board our murabaha service as we continue to work toward enhancing the Sharia-compliant initiatives across Bahrain’s capital market, providing a wide spectrum of investment opportunities on both a regional and global level.”
ABG’s murabaha service clients will benefit from significant reductions in processing time as well as bolstering Bahrain’s position as the global capital of the Islamic economy.
The murabaha service is provided through the utilisation of Sharia-compliant ijara sukuk, as the underlying asset for all the murabaha transactions.
An online service offering unique advantages to financial institutions and clients seeking Sharia-compliant solutions and trading opportunities will be used for facilitating ijara sukuk-based murabaha transactions.
© Copyright 2020 www.gdnonline.com
Copyright 2020 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).