Sidra Capital joins Malaysia's Bursa Suq Al-Sila' to boost Islamic finance reach


KUALA LUMPUR: Sidra Capital has officially become a commodity trading participant on Bursa Suq Al-Sila’ (BSAS), Malaysia’s premier Islamic commodity trading platform.

The move positions Sidra Capital alongside central banks, international financial institutions, and global commercial banks.

"Sidra Capital is a well-established player in Islamic asset management, specialising in real estate and private finance.

"As we expand in the Asia-Pacific region, direct access to BSAS strengthens our competitive edge in offering Shariah-compliant solutions,” said its Vice Chairman Ghassan Soufi in a statement.

Meanwhile, Sidra Capital Singapore Chief Executive Officer Arif Rahim said direct access to BSAS enhances its ability to execute private credit transactions more cost-effectively by removing intermediaries.

BSAS is a key platform for Shariah-compliant liquidity management, particularly for tawarruq (commodity murabaha) transactions. Since its launch in 2009 with a daily trading volume of just US$20 million, BSAS has grown significantly, now averaging approximately US$10 billion in daily trades. (US$1=RM4.28)

Previously, such trades were typically executed through brokers on global commodity exchanges such as the London Metal Exchange.

BSAS, part of Bursa Malaysia Berhad, eliminates the need for traditional brokers and leverages advanced trading technology to streamline Islamic finance transactions, offering institutions greater speed and transparency. - Bernama

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