DUBAI: Abu Dhabi’s Al Hilal Bank has executed the world’s first sukuk transaction using blockchain technology, it said on Monday.
The Islamic bank used the distributed ledger technology, best known as the underpinning of crypto-currency Bitcoin, to sell and settle in the secondary market a small portion of its $500 million five-year sukuk, issued in September.
“Al Hilal Bank is aiming to transform the sukuk market through embracing blockchain and integrating it into their infrastructure, paving the way for innovative digitized Islamic sukuk,” it said.
A bank spokeswoman said the size of the deal was $1 million, sold by Al Hilal to a private investor.
Applied to capital raising exercises, blockchain technology is expected to simplify issuance and trading, and also improve regulatory oversight.
The World Bank issued in August the world’s first public bond using only blockchain.
Jibrel Network, a Switzerland-headquartered fintech company with offices in Dubai, was involved in the transaction.
Abu Dhabi’s Al Hilal Bank uses blockchain to sell sukuk in secondary market
Abu Dhabi’s Al Hilal Bank uses blockchain to sell sukuk in secondary market
- “Al Hilal Bank is aiming to transform the sukuk market through embracing blockchain and integrating it into their infrastructure, paving the way for innovative digitized Islamic sukuk”
- Blockchain technology is expected to simplify issuance and trading, and also improve regulatory oversight
Closing Bell: TASI sheds points to close at 10,416
RIYADH: Saudi equities closed sharply lower on Sunday, with the Tadawul All Share Index falling 109.44 points, or 1.04 percent, to 10,416.65.
Losses were mirrored across other benchmarks, with the MT30 Index declining 11.31 points, or 0.81 percent, to 1,378.35, while the Nomu Parallel Market Index dropped 186.91 points, or 0.80 percent, to 23,244.02.
Trading activity saw 136 million shares change hands, with a total value of SR2.40 billion ($640 million).
On the stock level, gains were led by Flynas Co., which closed at SR64.10, up SR3.10, or 5.08 percent.
Arabian Mining Co. ended the session at SR88, rising SR4, or 4.76 percent, while Saudi Industrial Export Co. settled at SR2.20, gaining SR0.10, or 4.76 percent.
Raoom Trading Co. also advanced, closing at SR62.75, up SR1.70, or 2.78 percent, and Saudi Cable Co. finished higher at SR148, adding SR3.40, or 2.35 percent, bucking the broader market weakness.
On the losing side, Mutakamelah Cooperative Insurance Co. posted the steepest decline, closing at SR10.54, down SR0.96, or 8.35 percent.
Wafrah Co. for Industry and Development followed, ending at SR19.50, falling SR1.50, or 7.14 percent.
Shares of Consolidated Grunenfelder Saady Holding Co. retreated sharply, closing at SR8.92, down SR0.68, or 7.08 percent, while Leejam Sports Co. slid to SR94, shedding SR6.80, or 6.75 percent.
Saudi Research and Media Group Co. also ended the session notably lower, closing at SR127, down SR9, or 6.62 percent.
On the announcements front, Naqi Water Co. said it has signed an addendum to its previously disclosed contract to purchase a bottled drinking water production line for its new factory in Riyadh, expanding the project scope to include two independent production lines instead of one.
The amendment increases total production capacity to 120,000 bottles per hour, up 20 percent from the previously targeted capacity, enhancing operational flexibility, reliability, and production stability.
The total contract value has been repriced to €9.58 million ($11.28 million), compared with the originally announced €8.54 million, reflecting the expanded scope and the adoption of innovative packaging solutions aimed at reducing plastic usage and lowering production costs.
The company said the financial impact is expected to commence in the fourth quarter of 2026.
Naqi Water Co.’s shares closed at SR57.40, declining SR1.60, or 2.71 percent, following the disclosure.
