Abu Dhabi’s Al Hilal Bank uses blockchain to sell sukuk in secondary market

The Islamic bank used the distributed ledger technology, best known as the underpinning of crypto-currency Bitcoin. (File/AFP)
Updated 26 November 2018
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Abu Dhabi’s Al Hilal Bank uses blockchain to sell sukuk in secondary market

  • “Al Hilal Bank is aiming to transform the sukuk market through embracing blockchain and integrating it into their infrastructure, paving the way for innovative digitized Islamic sukuk”
  • Blockchain technology is expected to simplify issuance and trading, and also improve regulatory oversight

DUBAI: Abu Dhabi’s Al Hilal Bank has executed the world’s first sukuk transaction using blockchain technology, it said on Monday.
The Islamic bank used the distributed ledger technology, best known as the underpinning of crypto-currency Bitcoin, to sell and settle in the secondary market a small portion of its $500 million five-year sukuk, issued in September.
“Al Hilal Bank is aiming to transform the sukuk market through embracing blockchain and integrating it into their infrastructure, paving the way for innovative digitized Islamic sukuk,” it said.
A bank spokeswoman said the size of the deal was $1 million, sold by Al Hilal to a private investor.
Applied to capital raising exercises, blockchain technology is expected to simplify issuance and trading, and also improve regulatory oversight.
The World Bank issued in August the world’s first public bond using only blockchain.
Jibrel Network, a Switzerland-headquartered fintech company with offices in Dubai, was involved in the transaction.


US-Saudi business council reports $13bn in contracts

Updated 24 May 2019
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US-Saudi business council reports $13bn in contracts

  • Improved oil prices, combined with a government focus on spending, contributed to the rise, the council said

LONDON: The value of joint Saudi-US contracts rose to $13 billion in the first quarter of 2019, according to a business council report.

That marked the highest value of awarded contracts since the first quarter of 2015, the US-Saudi Arabian Business Council said.

The value of contracts awarded during the first quarter amounted to about half of the total value in all of last year, it added.

The contracts “included many vital projects, notably in the oil, gas, water and transport sectors,” Abdallah Jum’ah, the co-chair of the council, was reported as saying by Asharq Al-Awsat.

Energy was the top sector, with $3.1 billion of the value of contracts awarded, with many struck by Saudi Aramco. 

Improved oil prices, combined with a government focus on spending, contributed to the rise, the council said.

The construction sector also looks set for a recovery after many projects were put on hold due to the oil-price crash.

“If the pace of awarding construction contracts witnessed during the first quarter of 2019 continues for the rest of the year, the index of awarding construction contracts may return to the range we witnessed before the canceling and postponing of mega projects due to lower oil revenue,” the council said.