Al Salam Bank First Global Bank to Implement Daily Liquidity Management Service via Murabaha Contracts
Al Salam Bank, the largest and fastest-growing bank in the Kingdom of Bahrain, showcased the success of implementing J.P. Morgan Payments’ daily liquidity management service based on Murabaha contracts, becoming the first bank globally to deploy this service as a core component of its asset and liability management framework. The adoption of this innovative liquidity management tool reflects the bank’s pioneering approach in developing treasury and liquidity solutions, underscoring its ongoing commitment to embracing advanced solutions that enhance efficiency and improve performance.
This achievement was presented during the Bahrain Grand Prix Formula 1 race in Malaysia, attended by senior representatives from Al Salam Bank and J.P. Morgan Payments, highlighting the strength of the long-standing relationship between the two parties and their joint role in supporting and developing financial solutions on a global scale. The Murabaha-based daily liquidity management service is gaining increasing importance amid growing global demand for Sharia-compliant financial services, particularly in Asia, where the Islamic finance ecosystem continues to expand.
The service was launched in 2026, enabling banks to generate Murabaha-based returns on balances held in “nostro” accounts at J.P. Morgan Payments. Designed to enhance liquidity management and treasury operations, the service allows banks to deploy short-term funds effectively. This collaboration marks a significant milestone in the enduring relationship between Al Salam Bank and J.P. Morgan Payments, built on a shared commitment to innovation and excellence in financial services.
Commenting on the occasion, Rafiq Al-Naeeb, Group Chief Executive Officer at Al Salam Bank, stated: “This collaboration represents a key milestone in the development of liquidity management solutions within the financial services sector. We are proud that Al Salam Bank is the first globally to implement J.P. Morgan Payments’ daily liquidity management service based on Murabaha contracts. Our relationship with J.P. Morgan Payments reflects a clear strategic priority: translating our global network into practical and effective opportunities. This pioneering implementation also underscores our commitment to advancing banking solutions through innovation to meet evolving business needs.”
For her part, Hui Ching Wong, Head of J.P. Morgan Malaysia and Head of Corporate Sales for ASEAN at J.P. Morgan, said: “Our long-standing relationship with Al Salam Bank is rooted in trust and a shared commitment to developing solutions that keep pace with changes in treasury operations. This collaboration embodies the value created by combining our global payments capabilities with our deep understanding of our clients’ requirements.”
The implementation of this service reaffirms Al Salam Bank’s continuous efforts to strengthen its capabilities in the treasury and financial institutions sector by adopting global best practices. Through strategic partnerships and the provision of distinctive, innovative solutions, the bank continues to support the growth and development of the Islamic banking sector, delivering tangible value to all stakeholders.
