Shariah-Compliant Mortgage-Backed Securities Launched by Kuwait Finance House – Bahrain

Kuwait Finance House (KFH) –Bahrain has launched Shariah-compliant mortgage-backed securities, as announced in a statement issued by the bank. This involves the Sukuk being issued against a portfolio of lease (Ijara) financing contracts related to a housing finance scheme named Mazaya; the ultimate beneficiary would be the Sukukholders. This is the second issuance under KFH – Bahrain’s securitisation programme.

Why it matters?

Managing Director and Chief Executive Officer of KFH – Bahrain, Abdulhakeem Alkhayyat, believes that the issuance of these mortgage-backed securities would stimulate the housing market, which is one of the most significant contributors to Bahrain’s economic development. All stakeholders are set to b...