Al Hilal Bank, one of the leading Islamic banks in the UAE, has partnered with Jibrel Network, a UAE-based FinTech, to successfully pilot the first Shariah-compliant purchase and settlement sukuk transaction on the blockchain. 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.
Leveraging the conducive regulatory regime of the ADGM RegLab to test innovative FinTech solutions, 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 “SmartBlockchain Islamic Sukuk; once again the bank has demonstrated that it has the capabilities of leading in the competitive market of Islamic banking. Moreover, the advantages of using smart contracts range from cost efficiency, robust Shariah compliance, to the unlocking of new opportunities. 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 are firm believers that by combining Jibrel’stried and tested smart contract solutions with the world-class industry expertise held by Al Hilal Bank’s Digital Transformation Team, 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.”
Richard Teng, CEO of FSRA said: “As an International Financial Centre and FinTech thought leader, ADGM is pleased to play a strategic and contributing role in establishing an ecosystem that enables cutting-edge technology providers to collaborate with innovative local financial institutions in delivering value across financial markets. We look forward to supporting Al Hilal and Jibrel in the ADGM RegLab to build solutions that will enhance and transform the Islamic finance sector and offerings.”