Bahrain-based investment banking organization GFH Financial Group (GFH) has entered into an agreement with Bahrain’s national stock exchange, Bahrain Bourse (BHB) and the Central Bank of Bahrain (CBB) to extend BHB’s Murabaha service to its clients.
Launched in May 2020, BHB’s Murabaha service utilizes Shari’a-compliant Ijara Sukuk as the underlying asset for the undertaking of Murabaha transactions.
With the agreement in place, GFH will now be able to significantly expand its business line by accessing the Murabaha online service which offers unique Shari’a-compliant solutions and trading opportunities that can facilitate the continued growth of GFH’s treasury and capital markets business activities.
By using the Murabaha service, GFH will benefit from a significant reduction in processing time for its clients while supporting the ambitions of Bahrain to become the global capital of the Islamic economy through its continued expansion.
“We’re extremely pleased to sign this agreement with Bahrain Bourse for the use of its innovative Murabaha service. Access to the platform is another important step among our broader efforts to further build our trading activities and the service will provide us with new opportunities and greater efficiency as we do so. We look forward to maximizing the benefits of the service and to continue contributing to the growth of the Islamic capital markets and Bahrain’s leadership in Islamic banking and finance overall.”
Meanwhile, Mrs. Narjes Jamal, Chief Operating Officer of Bahrain Bourse remarked that “We are pleased to see the growing demand for the Murabaha service since its launch last year. Bahrain Bourse is continuously seeking to offer alternative investment solutions to meet the requirements of a broader range of individual and institutional investors, as this comes in line with BHB’s effort to enhance the investment environment and develop the capital market in the Kingdom of Bahrain.”