PRESSR: Mekyal announces Shari’a compliance certification for its crowd-funding Sukuk model

First published: 12-May-2024 20:27:52

KSA - In a significant development to Saudi based fintechs, Mekyal Financial Technologies Company is thrilled to announce that it has received Sharia compliance certification from the Shariyah Review Bureau (SRB) for its Sukuk issuance platform. This certification marks a critical milestone for Mekyal, aligning its innovative offerings with Sharia principles and enabling investors to finance small and medium enterprises (SMEs) through its crowdfunding model.

Mekyal's dynamic electronic platform serves as a gateway for investors looking to finance SMEs. By issuing Murabaha Sukuks, the company facilitates investment opportunities whilst ensuring these opportunities yield returns under strict adherence to risk management and transparency standards. "Our platform is designed to revolutionize how investments are made in SMEs, providing a compliant, efficient, and transparent medium for all parties involved," stated Moussa Hawas, President of Corporate Finance at Mekyal Financial Technologies. He emphasized the company's commitment to leveraging technology to serve customer interests and uphold the highest standards of compliance and ethics.

The review and certification process was rigorously conducted by the Shariyah Review Bureau, a globally recognized Sharia advisory firm licensed by the Central Bank of Bahrain. With over 19 years of experience in providing Sharia advisory and audit services to traditional financial institutions, the fintech community stands to benefit greatly from SRB's expertise. "Mekyal's approach to integrating Sharia-compliant processes into their platform not only enhances functionality but also broadens accessibility for investors seeking Sharia-compliant financing options," remarked Yasser Dahlawi, CEO of SRB. He further highlighted SRB's role in periodical auditing and reporting to instill investor confidence and support Mekyal's strategic growth initiatives.

This announcement comes at an opportune time as a January report by S&P Global forecasts that global Sukuk issuance is expected to reach between $160 billion and $170 billion in 2024. This surge is driven by increased financing needs in core Islamic finance countries and easing liquidity conditions worldwide, underscoring the growing market demand for compliant financial instruments.

As Mekyal continues to develop its platform, the collaboration with SRB will be instrumental in maintaining compliance and fostering innovation within the parameters of Islamic finance. This partnership underscores a shared commitment to enhancing the financial landscape and offering robust investment solutions that align with moral and ethical finance practices.

For more information on Mekyal, you can contact mhawas@mekyal.com. 

For all Shari’a Advisory related queries, you can contact hashim@shariyah.com. 

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