CBB and Bahrain Bourse launch Murabaha Sukuk Service

TDT | Manama

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. This is as part of the ongoing efforts towards the development of Islamic banking and promoting the capital market in the Kingdom of Bahrain.

In this regard, CBB Banking Services director Hesa Abdulla Al Sada emphasised that “providing such a 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 CBB, and after having ownership of the sukuk, sells it to the borrowing party as a deferred sale.

Bahrain Bourse chief operating officer Narjes Farookh Jamal commented: “The launch of the Murabaha Sukuk service will enhance the diversification of services offered by Bahrain Bourse by providing new Shari’ah-compliant financing solutions.

“Emphasising 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.”