Sharjah Islamic Bank launches ‘Commodity Murabaha’ service in cooperation with DMCC

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.