MANAMA: Bahrain Bourse has introduced the Murabaha service for banks and corporates.
The initiative is a part of Bahrain Bourse’s (BHB) continuous efforts to develop the Capital Market in the Kingdom of Bahrain, and in line with BHB’s strategic goal of Cultivating Capital Raising and Investment Opportunities.
The service aims to meet the growing needs of Interbank, corporate and retail clients, which supports Bahrain Bourse’s efforts to expand and diversify its provided services and cater to various market segments through a new and unique line of service.
The Murabaha service is provided through the utilization of Sharia’a-compliant Ijara Sukuk, as the underlying asset for all the Murabaha transactions. An online service offering unique advantages to financial institutions and clients seeking Sharia’a-compliant solutions and trading opportunities, will be used for facilitating Ijara Sukuk-based Murabaha transactions.
“The Murabaha service aims to further bolster the Kingdom of Bahrain’s position as a hub for Shariah-compliant transactions. The roll-out of the Ijara Sukuk-based Murbaha aims to enhance product development and innovation within Islamic finance, which is expected to deepen Islamic debt market in the Kingdom,” Shaikh Khalifa bin Ebrahim Al-Khalifa, Chief Executive Officer of Bahrain Bourse, said.
“The service is set to attract further regional and international interest to help better address the shariah-compliant financing solutions on behalf of a growing range of businesses and individuals. The innovative service further complements our existing asset class offerings,” Shaikh Khalifa, added.
The Murabaha service offers significant reductions in processing time for its participants, and is playing a growing role in the expansion and position of the Kingdom of Bahrain as the global capital of the Islamic economy.
