Sharjah Islamic Bank (SIB) has recently launched a Sharia’ a compliant ‘Commodity Murabaha’ financing solution for its Corporate Banking customers, in cooperation with DMCC (Dubai Multi Commodities Centre). This new product will enable SIB clients to benefit from the online Trade Flow platform of DMCC, to conduct commodity Murabaha transactions for bank’s corporate and retail customers.
The new service was launched following a partnership agreement signed between SIB and DMCC, at a ceremony held in the Head office building of SIB and attended by His Excellency Mohammed Abdullah, CEO of Sharjah Islamic Bank and His Excellency Ahmed Bin Sulayem, Executive Chairman & CEO of DMCC, and His Excellency Ahmed Saad DCEO of Sharjah Islamic Bank, as well as a number of senior officials of both sides.
Murabaha is a particular kind of sale where the seller expressly mentions the cost of the sold commodity, and sells it to the buyer by adding some profit thereon. Thus, Murabaha is a sale of a commodity on spot cash basis or deferred price. DMCC online Trade flow solution provides Sharia ’a compliant Commodity trade through advanced solution and the electronic platform.
His Excellency Mohammed Abdullah said, “We, at Sharjah Islamic Bank, are looking to improve our services provided to individuals and companies alike. This cooperation will enable us to improve the quality of our banking services by reducing the time to execute Murabaha transactions by considerable time. Murabaha Financing is one of a preferred mode of short term financing, as it provides flexible financing options that meet the requirements of the customers.”
“We are delighted that Sharjah Islamic Bank has become the latest member of DMCC Tradeflow. Through our innovative, transparent, and regulated platform we remove barriers to trade and enable entities to register possession and ownership of commodities stored in the UAE,” said Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC.
“DMCC will continue to work with partners to develop its Shariah-compliant financial products and in turn, cement Dubai’s growing reputation as the Islamic Finance capital of the world,” he added.
Sharjah Islamic Bank is constantly seeking to provide innovative and market-leading products and services which are designed to meet the requirements of the retail and corporate customers, through adopting the UAE Vision 2021, which aims to achieve a competitive, knowledge and innovation-based economy.