Khaleeji Commercial Bank (KHCB), one of the leading Islamic Banks in the Kingdom of Bahrain, has recently signed an agreement with Bahrain Bourse (BHB), allowing the Bank to utilise the Ijara Sukuk issued by the Central Bank of Bahrain (CBB) as underlying assets to complete Murabaha Finances; a new and innovative Shari’a-compliant brokerage service introduced by the Bourse through its electronic platform in replacement of Commodity Murabaha.
BHB CEO Shaikh Khalifa bin Ebrahim Al Khalifa, CBB Executive Director of Banking Operations Shaikh Salman bin Isa Al Khalifa, and KHCB CEO Mr. Sattam Sulaiman Algosaibi have recently signed the agreement through visual communication.
As per this agreement, KHCB will be able to benefit from this innovative service by expanding the Bank’s Asset Management and introducing diversified financial solutions that serve various fields. This new service will also reduce the time needed to complete transactions that are related to Murabaha Financing, as the purchasing and selling process is done through BHB as a Local Broker and through an advanced electronic platform.
On this occasion, KHCB CEO Mr. Sattam Sulaiman. Algosaibi stated: “This agreement comes as a new addition to the process of developing the banking services offered by the Bank. It also serves the reinforcement of our leading products and services, which we have begun to formulate a supportive digital infrastructure in line with the Bank’s new strategy.”
Mr. Algosaibi added: “The Sukuk Murabaha service with BHB will meet the growing demand for Shari’a-compliant financing solutions. This will contribute to the improvement of services provided to our valuable clients, in addition to cementing the distinguished position of the Kingdom of Bahrain as a leading financial hub for Islamic banking. We value the sincere efforts exerted by the CBB and BHB to develop this sector through the introduction of such leading initiatives.”