The Central Bank of Yemen confirms its commitment to supporting and leading the Islamic securities and products unit

The Central Bank of Yemen, headquartered in the interim capital Aden, confirmed on Monday the support of the Sukuk and Islamic Products Unit in the bank, due to the banks’ confidence in its capabilities, which amount to 260 billion Yemeni riyals in financing.

This was stated by the Deputy Governor, Dr. Muhammad Omar Banaja, during the extraordinary meeting of the Bank’s Sharia Supervisory Board during the year 2024, which was organized by the Bank’s Sukuk and Islamic Products Unit.

According to the bank’sstatement , the meeting witnessed the presentation of a comprehensive vision to expand the scope of Islamic bonds, through diversifying financial products to enhance their role as one of the most important tools of monetary policy, with a focus on supporting the economic infrastructure.

The Authority commended the great interest given by the Board of Directors of the Central Bank to developing this unit, which reflects a strategic vision towards financial innovation and sustainability.

The Deputy Governor stressed that Islamic bonds are not just a financial instrument, but rather a fundamental pillar in achieving financial and monetary balance, pointing to the widespread use and adoption of these instruments in markets and financial institutions.

The Bank’s Board of Directors renewed its commitment to support the Sukuk and Islamic Products Unit, to achieve more tangible successes, as it is currently implementing Mudaraba contracts in cooperation with 13 local banks, with a total financing capital of 260 billion Yemeni riyals, which reflects the confidence of local banks in its capabilities.

It is noteworthy that this meeting comes within the framework of enhancing its pivotal role in developing sovereign Islamic financial products; to explore new horizons for developing these strategic financing tools.