Manama, Bahrain –7th June 2020 – As part of the ongoing efforts towards the development of Islamic banking and promoting Capital Market in the Kingdom of Bahrain, the Central Bank of Bahrain (CBB) in collaboration with Bahrain Bourse has developed a Murabaha Sukuk Service for clients and Banks, which is a Shari’ah compliant liquidity and borrowing tool.
In this regard, Mrs. Hesa Abdulla Al Sada, the Director of Banking Services at the Central Bank of Bahrain emphasised that “providing such Shari’ah 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 center for Islamic banking”.
Under this service and through an electronic platform provided by Bahrain Bourse, the lending party purchases the sukuk from the Central Bank of Bahrain, and after having ownership of the sukuk, sells it to the borrowing party as a deferred sale.
Mrs. Narjes Farookh 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 Shariah-compliant financing solutions. Emphasizing that Bahrain 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.