Saudi-based Mudaraba Financial company (MFC) has partnered with Shariyah Review Bureau (SRB) to ensure all aspects of its digital sukuk (Islamic bonds) issuance platform to meet the requirements of sharia approval.   

 

In line with Saudi regulatory frameworks for the innovation of financial technology (Fintech) in the capital market, the platform automates the sukuk issuance process, said a statement from SRB, which is licensed by the Central Bank of Bahrain and has hundreds of clients covering multiple industries around the world. 

 

SRB pointed out that its services have grown in demand as financial institutions digitize and look for ways to speed-up the sharia compliance management process and to reduce costs of sharia board overheads. 

 

Over the years, it has strongly established itself as one of the leading sharia advisory companies in the Saudi Arabia. The CBB-licensed firm leads with a dedicated team of sharia consultants and auditors based out of Bahrain with more than 30 scholars covering 19 countries, it added. 

 

On the partnership, Mudaraba CEO Mosaed Al Enezy said: "The pandemic amplified the need for digital solutions in every aspect of life. Sukuk issuance picked up during the second half of 2020, as governments took measures to alleviate the hit to their fiscal budgets."

 

"We wanted to optimize the issuance, trading and management of this instrument for the Islamic capital market. Our platform automates the sukuk process, streamlines the intermediaries using technology and minimize the substantial operational costs and third-party charges in Islamic capital markets," he added. 

 

Al Enzy said: "Automation isn't enough, we needed to assure our customers that the underlying modality, its processes, legal documents have been reviewed and subsequent transactions are periodically audited by the leading Islamic industry experts."

 

"That’s why we partnered up with SRB, who will complement and enhance our existing sharia control functions, while allowing us to continue focus on providing superior financial services to our customers," he added.

 

On its new venture with Mudaraba, CEO Yasser S. Dahlawi said: "In the past two years we have seen financial products being automated to deliver effective and efficient services. The pandemic has accelerated digital adoption and we believe MFC's platform will competitively scale-up the issuance and settlement practice of the Sukuk market."

 

"We will add Sharia assurance and value be leveraging our scholarly expertise and Sharia audit capabilities as they promote their sukuk solution regionally," he added.-TradeArabia News Service