Al Hilal Bank is now officially the first Islamic bank in the world to leverage Blockchain technology for the resale and settlement of an Islamic Sukuk. Blockchain was used to transact a secondary market deal in Al Hilal Bank’s US$500m Senior Sukuk which will mature in September 2023. Islamic Sukuk is one of the fastest growing asset classes with US$97.9 billion worth of Sukuks issued in 2017 and has inspired an innovative digitization by the Blockchain technology.
These ‘Smart Sukuks’ ensure safer transactions with robust Shariah compliance and unlocks new opportunities. The initiative is the result of joined efforts of Al Hilal Bank’s Digital Transformation team with Jibrel Network, a UAE-based FinTech. Smart Sukuks will provide transactional efficiencies and significantly reduce the bloated overheads associated with issuing and settling Islamic Sukuks.