CBB and Bahrain Bourse launch Murabaha Sukuk Service

      Published on Wednesday, 10 June , 2020      741      
CBB and Bahrain Bourse launch Murabaha Sukuk Service

The Central Bank of Bahrain (CBB) has developed a Murabaha Sukuk Service in collaboration with Bahrain Bourse.

The service is a part of the ongoing efforts towards the development of Islamic banking and the promotion of the capital market in the Kingdom of Bahrain.

The Shari’ah compliant liquidity and borrowing tool is for clients and banks.

In this regard, 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. 

After having ownership of the sukuk the party sells it to the borrowing party as a deferred sale.

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.

Category Bahrain News, Business | 2020/06/10 latest update at 5:00 PM
Source : Internet | Photocredit : Google
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