The Central Bank of Bahrain (CBB), in collaboration with Bahrain Bourse, has rolled out a new Murabaha Sukuk Service that will be fully Shari’ah compliant. The new Islamic liquidity and borrowing tool is a major step forward for the CBB’s ongoing efforts to promote Capital Market in the Kingdom in accordance with Islamic laws and practices.
The service, alongside the electronic platform provided by Bahrain Bourse, will allow the lending party to buy the sukuk from the CBB. They can then sell the same to the borrowing party at a deferred sale.
According to Mrs. Hesa Abdulla Al Sada, the Director of Banking Services at the Central Bank of Bahrain, the new initiative will go a long way in diversifying Islamic transaction opportunities in the Kingdom while simultaneously enhancing the depth of the debt market. Not only that, but it also bolsters Bahrain’s claim to being a major financial center for Islamic banking, she noted.
Meanwhile, Mrs. Narjes Farookh Jamal, Chief Operating Officer of Bahrain Bourse, chipped in by saying: “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.”