H.H. Sheikh Hamdan bin Mohammad: NASDAQ Dubai Murabaha manifests collaboration among Dubai's economic components
WAM DUBAI, 1st April, 2014 (WAM) -- Dubai has launched a new comprehensive Islamic Murabaha platform to provide local and regional banks with Shariah compliant financing solutions as part of Dubai's Islamic Economy vision.
The Crown Prince of Dubai and the patron of the "Dubai, Capital of Islamic Economy" initiative, H.H. Sheikh Hamdan bin Mohammad bin Rashid Al Maktoum, asserted that the new platform represents an ideal example of the importance and effectiveness of collaboration amongst various business entities in Dubai to support the government's Islamic Economy vision.
"The strategy we launched a few months ago to position Dubai as the capital of Islamic Economy is moving forward according to plan, and simultaneously on various sectors to achieve the aims set by His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the U.A.E. and Ruler of Dubai, and within the required timeframe. We will launch further initiatives in the near future according to the strategic plan which will create new products and add value to various institutions active in the Islamic economy sectors," he said.
The new comprehensive Islamic Murabaha platform provides local and regional banks with Shariah compliant financing solutions. The new platform is reliable and highly efficient, enabling the execution of transactions within minutes. More than AED 7 billion worth of transactions have been completed through the platform during the pilot stage. The platform will further fortify Dubai's position as the capital of Islamic Economy.
The new facility, called the NASDAQ Dubai Murabaha Platform, is the outcome of a partnership between NASDAQ Dubai and Emirates Islamic that aims to service a growing number of regional banks by providing effective solutions for the financing needs of their institutional and individual clients. Transactions on the platform are completed in minutes and eliminate the risk of losses that often occur in traditional transactions through spreads, price movements, or poor liquidity.
H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates NBD Group, which is the parent company of Emirates Islamic, assured that Dubai "is well positioned to develop Shariah compliant financial services and solutions based on international best practices, supported by its vast experience and rich history in finance and banking. Emirates Islamic bank has successfully managed to conclude more than AED 2 billion worth of transactions through this platform during the pilot stage. We will further expand our operations, resources and customer base of leading banks over the coming period to actively participate in transforming Dubai into the capital of Islamic Economy."
Minister of Cabinet Affairs, Chairman of the Executive Office of His Highness Sheikh Mohammed bin Rashid Al Maktoum and Chairman of the Board of Dubai Islamic Economy Development Centre, Mohammed Abdulla Al Gergawi, said that the launch of NASDAQ Dubai Murabaha is an important step which will help to attract various financial institutions to the Murabaha business benefiting from advanced technology and sophisticated trading standards and within a sound legal framework, offering innovative Islamic finance solutions for institutions and individuals in the region.
He added, "This platform is highly significant for our national economy, which will greatly benefit from it as a result of its high level of liquidity and daily trading volumes. However the ultimate goal is to provide a regional and international platform to further fortify Dubai's position as the capital of Islamic Economy and support other sectors which contribute to the Islamic Economy, including Halal industries and products and financial services." Dubai's location gives it a substantial time-zone advantage in providing a highly competitive international Murabaha financing platform for the growing Islamic financing sector.
As a secure, viable and highly sophisticated financing channel, this platform can be expanded to cater to an increasing number of customers all over the world.