Turkey and the UAE sign the first Islamic Murabaha financing deal

0
103

The Turkish sovereign wealth fund signed the first international Islamic Murabaha financing deal with the UAE’s Sharjah Islamic Bank, worth $100 million.

A statement issued by the Fund on Wednesday explained that it concluded its first Islamic financing deal with Sharjah Islamic Bank through a Murabaha financing agreement worth $100 million with a maturity of 3 years.

He added that the deal is the first mutual Murabaha financing provided by Sharjah Islamic Bank to a global sovereign fund.

He stated that the deal aims to strengthen international markets’ confidence in the Turkish economy.

-Advertisement-



For his part, Director General of the Turkish Sovereign Wealth Fund, Arda Armut, confirmed that the deal is “part of the sustainable development vision and the mission of supporting recovery and deepening financial markets.”

He added that the sovereign wealth fund continues its work to make Turkey “an important player in Islamic finance and diversify tools in this field.”

In turn, Mohammed Abdullah, CEO of Sharjah Islamic Bank, expressed his welcome for Turkey’s support by providing the first bilateral Murabaha financing with an international sovereign fund.

He added that this cooperation will contribute significantly to increasing international Islamic financing opportunities in Turkey, and is an indication of the Bank of Sharjah’s determination to respond to the financing needs of strategic institutions of a country like Turkey.​​​​​​