CBB ties up with Bahrain Bourse to launch sukuk service
COMMERCIAL NEWS
Central Bank of Bahrain (CBB) has joined hands with Bahrain Bourse to develop a Murabaha sukuk, a shari’ah compliant liquidity and borrowing tool, as part of the ongoing efforts towards the development of Islamic banking and promoting capital market in the kingdom.
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.
Hesa Abdulla Al Sada, the director of banking services at CBB, 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”.
Bahrain Bourse COO Narjes Farookh Jamal said: "The launch of the Murabaha sukuk will enhance the diversification of our services by providing new shariah-compliant financing solutions."
'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," he added.-TradeArabia News Service
