Al Kawthar Leasing Launches 1St Issuance of Modaraba Sukuk in Capital Market after Jordan Securities Commission Approval

Chairman of the Jordan Securities Commission JSC, Emad Abu Haltam, stressed the government’s priority to develop the capital market in the Executive Program of the Economic Modernization Vision for the Years 2026-2029, in particular activating and developing Islamic Sukuk issuances referred to in the Second Phase of the Executive Program during a speech at a ceremony organized by Al Kawthar Leasing Company, under the patronage of the Governor of the Central Bank of Jordan CBJ Dr. Adel Sharkas, to celebrate the launch of the 1st issuance of Islamic Modaraba Sukuk for the Private Sector in the Kingdom.

Abu Haltam stated, such issuance will provide a financial base for companies and an investment window for those wishing to invest in sukuk as well as shares, bonds, and mutual investment funds and the opportunity is available to invest in tradable sukuk. He clarified Sharia-compliant contracts are not limited to Modaraba merely, there are other contracts such as Ijarah Muntahia Bittamleek (Lease-to-Own), Morabaha (Cost-plus Finance “Sale”), Istisna’a (Manufacturing “Forwards”), and other types of contracts. 

He appreciated efforts of CBJ, Central Sharia Supervisory Commission CSSC, Board of Commissioners of Islamic Finance Sukuk BCIFS and JSC Team of Sukuk Issuances. He anticipated future issuances and indicated capital market readiness to issue Islamic Sukuk, to develop financial instruments that are Sharia-compliant and to fulfill the requirements of global financial markets.

The issuance is valued at JD 15 million - first of its kind in the Private Sector - occurring as a result of developments in the legislative and regulatory framework of Islamic Finance in Jordan and introducing advanced financial instruments that are Sharia-compliant and tradable in accordance with best international practices.