The Central Bank of Yemen in the city of Aden confirmed, on Monday, the expansion of the scope of Islamic sukuks, by diversifying financial products to enhance their role as one of the most important monetary policy tools, with a capital of more than 260 billion Yemeni riyals.

The bank said that the Sukuk and Islamic Products Unit held an exceptional meeting with the bank’s Sharia Supervisory Board, within the framework of strengthening its pivotal role in developing sovereign Islamic financial products.

The Bank’s Deputy Governor, Muhammad Banaja, stressed that Islamic Sukuks are not just a financial instrument, but rather a basic pillar in achieving financial and monetary balance, pointing to the widespread use and adoption of these tools in financial markets and institutions. 

Banaja renewed the bank’s Board of Directors’ commitment to supporting the Sukuk and Islamic Products Unit, to achieve more tangible successes, noting that it (the Sukuk Unit) is currently implementing Mudaraba contracts in cooperation with 13 local banks, with a total financing capital amounting to 260 billion Yemeni riyals, which reflects confidence in Local banks with their capabilities, according to Banaja.