Islamic Finance begins transacting on NASDAQ Dubai Murabaha Platform for Islamic financing
Islamic Finance, a UAE-based leading Sharia’a-compliant financial institution, has carried out its first transaction on the NASDAQ Dubai Murabaha Platform, which provides Islamic financing services to a rapidly growing number of individual and institutional customers.
Officially launched in April 2014, the platform has completed a total of more than Dhs21 billion of transactions. It was set up by NASDAQ Dubai jointly with Emirates Islamic and is playing a key role in Dubai’s growth as the Capital of the Islamic Economy globally.
Clients of Aafaq – Islamic Finance and other companies can use the NASDAQ Dubai Murabaha Platform to execute streamlined transactions within minutes. As the platform expands it has the potential to make Dubai the international centre for processing Sharia’a-compliant financing.
His Excellency Essa Kazim, Chairman of Dubai Financial Market and Secretary General of Dubai Islamic Economy Development Centre (DIEDC), said: “The expansion of the NASDAQ Dubai Murabaha Platform underlines the continuing success of the initiative launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai, to develop Dubai as the global Capital of Islamic Economy, as overseen by His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, the Crown Prince of Dubai. By effectively serving the clients of Aafaq – Islamic Finance and other companies, the platform will provide growing support for the strengthening of the Islamic finance sector in the UAE.”
Sheikh Faisal Saoud Bin Khalid Alqassimi, Managing Director of Aafaq – Islamic Finance, said: “The NASDAQ Dubai Murabaha platform is a very attractive alternative to many other Islamic financing solutions, which can be subject to unexpected price movements, spreads and delays as well as poor liquidity. We are making use of the platform to offer our clients solutions for a variety of purposes, from personal finance to funds for company expansion.”
The platform makes use of Sharia’a-compliant Certificates that have been developed for the underlying assets of the financing transactions. Islamic banks, Islamic windows of conventional banks, and Islamic finance companies and their clients can make use of the platform through trading Certificates.
Abdul Wahed Al Fahim, Chairman of NASDAQ Dubai, said: “NASDAQ Dubai will build on the growing success of the platform to attract more financial institutions to join it from the UAE and beyond, so that their clients can also benefit from its many advantages. We are committed to further enhancing our Islamic financing infrastructure with the support of all market participants.”
Hamed Ali, Chief Executive of NASDAQ Dubai, said: “The NASDAQ Dubai Murabaha Platform meets the specific requirements of Sharia’a-compliant financing within a framework of international capital markets best practice. As a sophisticated and secure financing channel, it is set to cater to an increasing number of customers all over the world.”
Abdulla Al Awar, Chief Executive of DIEDC, said: “Aafaq – Islamic Finance’s decision to join the platform is another positive example of Islamic financial institutions in the UAE taking far-seeing and proactive steps to enhance the services that they offer to clients. This process is rapidly building critical mass in the Islamic financial sector in both quality and quantity.”