Emirates Islamic in $500m Murabaha deal on Nasdaq Dubai platform

|By Arabian Post Staff| Emirates Islamic and French financial institution Natixis announced the completion of a US$50 million Collateralised Murabaha deal on the Nasdaq Dubai Murabaha Platform.

It is the largest collateralised Murabaha transaction closed by Emirates Islamic this year, and the first of its kind executed on the Nasdaq Dubai Murabaha Platform.

A joint initiative between Nasdaq Dubai and Emirates Islamic, Nasdaq Dubai’s Murabaha platform provides a unique solution for banks and other financial institutions, and their corporate and individual customers, to conduct Shari’a-compliant transactions in a streamlined, flexible and transparent manner. The efficiency with which Emirates Islamic’s deal with Natixis was concluded is anticipated to entice other financial institutions to further leverage the ground-breaking Nasdaq Dubai platform.

Hamed Ali, Chief Executive of Nasdaq Dubai, pointed out that the transaction underlines the growing appeal of the Nasdaq Dubai Murabaha Platform to international as well as regional participants. Since its launch in 2014, the platform has expanded significantly both in the value of certificates transferred and the number of participants, he said.

The Nasdaq Dubai Murabaha platform offers significant advantages over alternative Murabaha channels such as fixed price certificates with no spread. The platform can be used equally to help a company raise capital to expand, or an individual for personal finance. The platform utilizes Shari’a-compliant Certificates that are held in Nasdaq Dubai’s Central Securities Depository (CSD). The Certificates represent an undivided ownership interest in a pool of Shari’a-compliant assets such as, but not limited to, Sukuk, Private Equity and Real-Estate