IslamicFinance.de

Al Baraka Islamic Bank and Bahrain Bourse (BHB) have signed an agreement allowing the bank to buy and sell Sharia-complaint ijara sukuk through the exchange. Proceeds from the sukuk will contribute to facilitating the bank’s financing operations for its underlying clients. The agreement aims to diversify the commodities available for underlying clients when conducting a commodity-based murabaha transaction to include government-based sukuk issued by the Central Bank of Bahrain.

The Bahrain’s stock exchange has plans to launch a financing tool and real estate investment trusts. The range of Islamic investment products will include a novel equity-based murabaha financing tool and Islamic real estate investment trusts. It is seeking to attract regional funds from bigger markets such as Saudi Arabia, Qatar and the United Arab Emirates; Islamic financial products are a major part of the strategy. The exchange aims to host trading of sukuk (Islamic bonds), which at present is mostly done over the counter, said Shaikh Khalifa bin Ebrahim Al-Khalifa.

The launch of "Murabaha" through equities programme by the Bahrain Bourse (BHB) has moved closer to implementation with the exchange appointing Dr Shaikh Osama Mohammed Bahar as its Sharia adviser. His scope of work will include the review and approval of all Sharia-compliant securities, funds, and other investment instruments. The role will also include the review of all Sharia-based products to ensure compliance with underlying Sharia principles. In addition, he will be responsible for the issuance of Sharia statements (fatwa) with regards to Sharia-compliant securities listed on the bourse, and supervising its operations to ensure their compliance with underlying Sharia principles. BHB's strategy aims at enhancing market liquidity, and providing a wider range of products and solutions.