UAE to offer Islamic repo 23 June 2011UAE Reporter: Ben Wilkie
Image: Shutterstock
The United Arab Emirates Central Bank is now accepting Islamic certificates of deposit as collateral.
The new Islamic facility is designed to provide increased liquidity to the market and users will need to sign a 'collateralised murabahah facility agreement' A murabahah contract is a sale and deferred payment trnasaction where the cost and profit margin are agreed in advance - it removes the requirement for interest charges, which are not permitted under Shariah law.
NO FEE, NO RISK 100% ON RETURNSIf you invest in only one securities finance news source this
year, make sure it is your free subscription to Securities Finance Times
Image: Shutterstock 