Abu Dhabi Global Market (ADGM) on Monday announced its collaboration with Al Hilal Bank and Jibrel Network to develop and test the next generation of shariah-complaint sukuk transactions.
The pilot scheme is based on distributed ledger technology (DLT) in the ADGM Regulatory Laboratory (RegLab), a statement said.
It added that UAE-based Al Hilal Bank has partnered with FinTech firm Jibrel Network to pilot the first Shariah-compliant purchase and settlement sukuk transaction using blockchain technology.
The partnership was made possible through the Plug and Play ADGM innovation platform, where financial institutions in the MENA region can accelerate their digital transformation agenda by connecting with FinTech startups locally and globally.
Jibrel Network will work with Al Hilal Bank to accelerate the adoption of DLT for the Islamic finance sector under the supervision of the Financial Services Regulatory Authority (FSRA) of the ADGM.
Alex Coelho, CEO of Al Hilal Bank, said: “We are proud to be the first bank to launch a ‘smart blockchain Islamic sukuk; once again the bank has demonstrated that it has the capabilities of leading in the competitive market of Islamic banking.
"The partnership between Al Hilal and UAE incubated startup, Jibrel, highlights ADGM’s success in attracting, nurturing and fostering innovation.”
Talal Tabbaa, co-founder of Jibrel added: “We will be able to provide Islamic financiers with the necessary tools to facilitate Islamic agreements with the same speed, volume and efficiency experienced in conventional finance, and potentially develop new digital asset classes that were previously unimaginable.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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