As part of its commitment to positioning the Kingdom of Bahrain as the regional fintech hub and global capital of the Islamic economy, Bahrain Islamic Bank (BisB) has signed an agreement with Bahrain Bourse for a Murabaha Financing framework using a Shari’a complaint lending service, with the underlying being Ijara Sukuk provided by the Central Bank of Bahrain (CBB). The signing ceremony was held virtually and attended by the Chief Corporate & Institutional Banking at BisB, Mr, Wesam Baqer, and COO of Bahrain Bourse, Narjes Farookh Jamal.
With the rising trend for ethical alternatives and Shari’a compliant financing solutions prompting a rise in Sukuk issuances, the newly offered Murabaha service is set to address the growing market demand, further develop the capital market in the Kingdom of Bahrain as well as positioning the Kingdom on the map to gain additional investment interest opportunities both on a regional and international level.
Adding this Murabaha service introduces a new underlying asset to the Bank’s existing commodity Murabaha facility structure, currently conducted via local and international brokers, further diversifying the structure and enhancing its framework given that it is actioned via a digital system which decreases the processing time exponentially.
“With this agreement, we wanted to contribute to elevating the Kingdom’s position and maintain its competitiveness on the Islamic finance map which continues to hold significant growth potential. Moreover, on the heels of launching our latest open banking service, with the lending servicing being a digital Islamic offering, it comes in line with our efforts to promote and expand financial technology in the Kingdom,” said the Chief Corporate & Institutional Banking at BisB, Mr. Wesam Abdulaziz Baqer.
Narjes Farookh Jamal, COO of Bahrain Bourse, commented stating, “The launch of the Murabaha Sukuk service aims to enhance the diversification of services offered by Bahrain Bourse through providing new Shariah-compliant financing solutions to participating bank and their underlying clients. The Murabaha service aims to further bolster the Kingdom of Bahrain’s position as a regional and international hub for Shariah-compliant transactions.”