Sharjah Islamic Bank (SIB), one of the leading national banks in the UAE, has joined Nasdaq Dubai’s Murabaha platform for Islamic financing.

With this move, SIB has become the first bank to join the facility since the official launch of the Nasdaq Dubai Murabaha Platform last month.

The platform is the ideal alternative to many traditional Islamic financing solutions, which can carry a risk of losses through price movements, spreads and poor liquidity as well as delays.

Through this platform, individual and institutional clients of SIB will be able to complete financing transactions efficiently and easily, within minutes.

Mohammed Abdulla Al Gergawi, the board chairman of Dubai Islamic Economy Development Centre, described Murabaha as a key milestone in achieving the initiative to develop Dubai as the global Capital of Islamic Economy. "SIB’s decision to make use of Nasdaq Dubai’s platform reflects the future vision for the growth of the Islamic finance sector in the UAE," he remarked.  

DFM chairman Essa Kazim said the Murabaha offers significant benefits of efficiency and speed to  individuals and companies seeking a Sharia’a financing framework.

"SIB’s membership of the platform demonstrates the capacity and willingness of financial institutions in the UAE to collaborate productively with each other in the interests of their clients and the ongoing progress of the Islamic finance sector," he stated.

Sharjah Islamic Bank CEO Mohamad Abdalla said: “We are very excited to offer the platform’s services to a wide variety of our clients for a range of purposes, from mortgages and personal finance to funding for corporate growth and expansion. The platform is an excellent fit with SIB’s strategy of enhancing its provision of reliable and efficient Islamic solutions on a cost effective basis to meet the needs for participants.”

Nasdaq Dubai chairman Abdul Wahed Al Fahim said: “SIB’s initiative in being the first bank to join the platform since its launch demonstrates its  commitment to enhancing the Islamic financing environment in the region. Nasdaq Dubai and Emirates Islamic will build on the growing success of the platform to attract more UAE and regional banks, so that their clients can also benefit from its advantages.”

Nasdaq Dubai CEO Hamed Ali pointed out that Murabaha bridges best practice international capital markets standards with the specific requirements of Sharia’a financing. "We have created a reliable and effective facility that provides clients with the confidence that all aspects of their  Islamic financing needs are fully catered for," he added.-TradeArabia News Service