Al Salam Bank first to implement JP Morgan Payments' overnight murabaha solution

01/07/2026 05:43 AST

Al Salam Bank has announced its successful launch of JP Morgan Payments' overnight murabaha solution, becoming the first bank globally to implement this innovative murabaha-based liquidity management tool based on a murabaha sale structure.

The milestone reflects the bank's pioneering approach to treasury and liquidity management innovation, while reinforcing its commitment to adopt advanced solutions to enhance optimise efficiency and performance.

The collaboration was recently commemorated during an official visit by senior representatives from JP Morgan Payments to the bank's headquarters in Bahrain, highlighting the strategic importance of this relationship and its role in advancing murabaha-based financial solutions on a global scale.

Launched in March 2026, the overnight murabaha solution enables Al Salam Bank to generate murabaha-based overnight returns on balances held within its USD nostro account with JP Morgan Payments.

The solution is designed to enhance liquidity optimisation by enabling the bank to deploy short-term funds more efficiently, improve treasury efficiency, and manage its balance sheet more effectively. This achievement marks a significant step forward in the long-standing relationship between Al Salam Bank and JP Morgan, reflecting a shared commitment to innovation and excellence in financial services.

Commenting on the occasion, Al Salam Bank Group chief executive officer Rafik Nayed said: "We are proud to be the first bank globally to implement JP Morgan Payments' overnight murabaha solution, marking a key milestone in the evolution of liquidity management in our sector. This achievement reflects our ongoing commitment to delivering innovative, value-driven solutions that enhance the efficiency of our treasury operations while maintaining the highest governance standards.

"Our collaboration with JP Morgan Payments underscores the strength of our strategic partnerships with leading global institutions and supports our broader vision to drive sustainable growth, innovation, and excellence across our operations."

JP Morgan Bahrain Branch general manager Abdulla Aljanahi added: "This launch reflects a relationship built on trust and a shared focus on solving real client needs. We have a long-standing relationship with Al Salam Bank and we're proud to deliver a meaningful milestone in murabaha-based liquidity management, providing tangible impact for the bank's treasury operations."

The introduction of this solution underscores Al Salam Bank's continued focus on enhancing its treasury and financial institutions' capabilities through the adoption of globally recognised best practices. By leveraging strategic collaborations and introducing differentiated offerings, the bank remains well-positioned to support the development of the Islamic finance industry while delivering tangible value to its stakeholders.

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