A memorandum of understanding (MoU) was signed between Kuwait Finance House – Bahrain (KFHB) and the Social Insurance Organisation (SIO) to provide government employees with shari’a compliant financing facilities.
“The aim of the agreement is to provide financial services in the form of personal finances to government employees. Through the utilization of Kuwait Finance House – Bahrain, the current retirement pension will be replaced for retirees in both the civil and private sectors in accordance with the Kingdom’s retirement laws. This initiative is based on the recommendations of the esteemed government of Bahrain to the Social Insurance Organisation (SIO) to introduce a lending system that complies with Islamic law, according to the consensus between legislative and executive power,” KFH-B in a statement said.
The MoU was signed by Zakariya Sultan Al- Abbasi, CEO of SIO, and Abdulhakeem Yaqoob Alkhayyat, Managing Director and CEO of KFHB, at the Headquarters of KFHB in the World Trade Center.
Zakariya Sultan expressed his appreciation in signing the MoU which will meet the needs of a large number of the participants and offer them a variety of financing facilities to suit their preferences. He also thanked KFHB for their efforts in providing finance that suit the employees’ needs in both the civil and public sectors.
Abdulhakeem Alkhayyat expressed his appreciation of this initiative and the signing of the MoU.
Alkhayyat also said that the MoU is in-line with the Bank’s strategy that aims to increase its client base by diversifying its services and providing innovative products that match the needs of the market. Employees will benefit from the signing of this MoU as they will receive lower rates on their Islamic finance from KFHB whereas SIO will be acting as the guarantor.