Islamic finance roundup: Omani lender launches Shariah-compliant medical finance solution
Here's a roundup of key developments across the Islamic finance ecosystem during the month of October
Editor's note: Muzn Islamic Banking has launched a Shariah-compliant product to facilitate ethical financing for medical treatments both in Oman and abroad.
Meanwhile, a UAE-based JV has launched a pilot program for what it calls the world's first real-world Mudarabah smart contract. An economic zone has partnered with a digital bank to offer Shariah-compliant products.
Company News
United Kingdom
Sonali Bangladesh UK boosts Shariah-compliant services with Finastra
Sonali Bangladesh UK (SBUK), a London-based financial institution focused on trade finance for Bangladesh, has partnered with Finastra to enhance its banking operations.
The lender will faciliate transactions through the Finastra Essence core banking solution hosted on Microsoft Azure Cloud.
The new system will cater to both Shariah-compliant and conventional banking needs. Its CEO Masum Billah emphasized the need for a flexible platform to meet evolving demands. (IBS Intelligence)
Indonesia
HAQQ partners with KNEKS, BUMR to enhance Shariah-compliant financial services
HAQQ Association has teamed up with the National Committee for Sharia Economy and Finance (KNEKS) and PT BUMR Industri Terhubung Indonesia to advance Indonesia's Shariah economy through technology and innovation.
The partnership aims to leverage blockchain and Shariah-compliant financial services to create new opportunities for businesses, investors, and communities. (The Jakarta Post)
Oman
Muzn launches Shariah-compliant medical finance solution
Muzn Islamic Banking has launched a Shariah-compliant medical finance product to provide flexible and ethical financing for medical treatments both in Oman and abroad.
Muzn is National Bank of Oman's Islamic banking window. Salima Obaid Issa Al-Marzoqi, Chief Islamic Banking Officer at NBO emphasized the importance of healthcare and the alignment of the product with Shariah principles, ensuring access to quality medical care for customers. (Zawya)
UAE
Firoza Finance launches $2m pilot for world’s first real-world Mudarabah smart contract
Firoza Finance, a UAE-based joint venture between Liberty Finance and HAQQ Network, has launched a pilot program for what it claims is the world’s first real-world Mudarabah smart contract.
The initiative, which has a budget of $2 million, aims to revolutionize Islamic finance by integrating technology with traditional financial principles.
The move highlights Firoza Finance's commitment to innovation in the financial sector. (Arabian Business)
Qatar
Tech firm launches platform for tokenized Islamic finance contracts
Qatar-based Blade Labs has launched a platform designed for tokenized Islamic finance contracts, specifically Murabaha contracts, aimed at expanding Sharia-compliant lending.
This blockchain-based platform allows lenders to reach a broader customer base while adhering to Islamic principles.
The innovation offers secure and tokenized transactions, opening up opportunities for non-financial institutions as well. (Bitcoin News)
UAE
RAKEZ partners with ruya to offer Sharia-compliant digital banking solutions
Ras Al Khaimah Economic Zone (RAKEZ) has signed a preliminary agreement with ruya, a UAE-based digital Islamic community bank, to expand Sharia-compliant banking options for RAKEZ clients.
This partnership offers RAKEZ clients digital-first banking solutions aligned with Islamic finance principles. With ruya’s app, users can conveniently open and manage corporate accounts without hidden costs or minimum balance requirements. (Zawya)
Investment
Cameroon
BDEAC approves Islamic finance window to boost project funding
Shareholders of the Central African States Development Bank (BDEAC) approved the establishment of an Islamic finance window.
This new initiative is designed to diversify and enhance the bank's resources while complementing its conventional financing.
The Islamic finance window aims to attract and allocate funds to states and businesses in accordance with Islamic law, expanding BDEAC's financial capabilities. (Business In Cameroon)
UAE
ADX and FTSE Russell launch Islamic Index
TSE Russell, an LSEG business, and Abu Dhabi Securities Exchange (ADX) have launched the FTSE ADX 15 Islamic Index (FADXI15).
This new index combines FTSE Russell’s expertise with ADX’s influence in the GCC to provide a benchmark tailored for Shariah-compliant investments.
(LSEG)
Operational Developments
Bahrain / Egypt / Türkiye
Al Baraka enhances operations in Egypt, Turkey via new platform
Bahrain-based Islamic finance provider Al Baraka Group has extended its trade finance platform to clients of Al Baraka Bank-Egypt and Al Baraka Bank Turkey.
This platform will enable local importers and exporters to engage with international partners, aiming to enhance trade finance service efficiency and competitiveness through Al Baraka’s network across Asia, Africa, and Europe. (Zawya)
