Murabahah Agreement Between GCT and the IsDB Under Examination by Tunisia’s ARP 

Tunisia’s Assembly of the Representatives of the People (ARP) commenced an investigation on the 8th of June 2021, into a bill concerning the approval of the guarantee agreement and the Murabahah agreement concluded between the Tunisian Chemical Group (GCT) and the Islamic Development Bank (IsDB). According to a media report, the inquiry which relates to a USD 50 million (approximately TND 136 million) financing arrangement, guaranteed by the Tunisian State is expected to be repaid over a one-year period, commencing from the date of the first disbursement. The funding will be used by GCT to finance its supply of raw materials, which includes phosphate, sulphur, ammonia or other chemical products.

Why it Matters?

At a meeting held on the 25th of...