SAB has delivered the world’s first Shariah-compliant repo transaction on blockchain, debuting a faster, safer way for Islamic-style bank lending.
Islamic Repo Goes Digital and Instant
For the first time, Islamic repo, a short-term Islamic lending tool, was completed using a blockchain-based digital contract instead of paperwork.
- Leverages Oumla’s secure and scalable infrastructure
- Enables real-time settlement with digital smart contracts
- Tokens ensure transparency, auditability, and risk management
Officials emphasize this move aligns with the Kingdom’s broader push for fintech innovation and Shariah-compliant modernization.
SAB Accelerates Financial Digitalisation
This milestone builds on SAB’s Vision 2030-aligned strategy:
- Born from discussions at SAB’s 2024 Virtual Assets Summit
- Supports liquidity management and Islamic finance automation
- Reduces manual processing, error risk, and delays
Broader Context: KSA Adopts Blockchain Fast
Saudi Arabia is rapidly expanding its blockchain ecosystem:
- Blockchain-based businesses in KSA grew 51% over the past year
- Oumla previously partnered with Avalanche and Chainlink to power domestic blockchain infrastructure
- SAB earlier led on blockchain trade finance in 2019 via a letter of credit use case
Together, public and private institutions are increasingly adopting tokenized finance to support liquidity, transparency, and Islamic banking growth.
What exactly is an Islamic repo?
It’s a Shariah-compliant repo where banks lend against collateral but avoid interest, using profit-sharing or lease structures.
How does blockchain improve this?
It enables real-time settlement, instant auditability, improved automation, and better liquidity control.
Why is this a global first?
No bank in the world has previously executed an Islamic repo entirely via blockchain-based smart contracts—until now.
By executing the first blockchain-customized Islamic repo, SAB and Oumla are setting a global benchmark in digital Islamic finance. As the Kingdom accelerates its digital transformation, this could pave the way for broader use of sharia-compliant tokenized contracts across MENA.
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