Last month, the Central Bank of Bahrain (CBB) and Bahrain Bourse (BHB) launched a murabaha sukuk service for clients and banks and now Bahrain’s popular investment bank, SICO has signed an agreement to offer the same.
A virtual signing ceremony between the officials of SICO, the CBB and the Bahrain Bourse confirmed the development.
Najla Al Shirawi, SICO chief, told the media, “We are extremely pleased to be part of this platform and would like to commend the CBB and the Bahrain Bourse for their efforts in offering innovative solutions that support Sharia-compliant asset management services.”
Mr. Shirawi added that the new partnership and other collaborative efforts will pave the way for SICO to extend its footprints across Bahrain and other parts of the Middle East.
The bank’s current murabaha facility structures will be boosted with the addition of the new service. The murabaha is based on preferences of local and international brokers, and is capable of boosting the demand for sukuk issuances. In addition, it also supports Sharia-compliant financing services and help sukuk trading volumes on the Bahrain Bourse to grow.
The platform’s premium structuring and documentation, process seamless transactions while maintaining competitive funding and serving customers efficiently.
According to Shaikh Khalifa bin Ebrahim Al Khalifa, BHB chief, the challenges which are faced by banks today are addressed by the creative Sharia-compliant solution, the ijara sukuk-based murabaha service. Different banks can offer murabaha through an efficient process through the unique service without any problem.