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The Saudi Arabian Development Institute, the Islamic Development Bank Group (IsDB), has collaborated with a Tunisian startup to develop inter-bank blockchain tools, a press release confirmed on 29 November.
IsDB, which will lead the project through its private sector subsidiary, the Islamic Corporation for Private Sector Development (ICD), wants to improve the liquidity management of Islamic financial institutions and increase overall efficiency.
The institute has signed an agreement with iFinTech Solutions, based in Tunis, a dedicated group that describes itself as an "investment consulting company focused on alternative financial solutions based on Islamic principles".
The impetus behind the blockchain for the initiative lies in the relative disadvantage that Islamic banks have on the world stage, with institutions limited by the funding options provided by international central banks, noted Reuters on December 3rd.
Ayman Sejiny, CEO of ICD, added in the press release:
"L & # 39; IT will always play an important role in the financial system: we will constantly follow our service orientation strategy and help our partners with innovative FinTech compliant Sharia solutions."
Saudi Arabia has traditionally copied many other jurisdictions in maintaining an official risk-averse position on cryptocurrencies while defending the blockchain.
In September, the country saw its first bank enter the R3 Rope platform, a month after regulators urged consumers not to exchange cryptoassets.
The debate on the compatibility of industry with Islam also continues, Turkey adopting a conservative position which, as reported by Cointelegraph, subsequently proved to be particularly unpopular with a US mosque.
Last week, a bank based in Abu Dhabi also announced that it had completed the "first" suduk (a legal instrument also known as "sharia compliant" bonds) with blockchain.
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