Built on Tezos blockchain, Bahrain based Real World Tokenization entity INABLR Middle East recently graduated from the Central Bank of Bahrain’s regulatory sandbox having piloted the first blockchain enabled fractional Sukuk Investment platform. Once INABLR receives its license in around six months, it will become the first global entity to offer fractionalized Sukuk (Islamic Bonds).
Speaking to Lara on the Block Anver Jalaldeen, Founder & Executive Chairman of INABLR, explained that after three years in the Central Bank of Bahrain’s regulatory sandbox he is proud of the accomplishment.
Jalaldeen who previously held the position of Senior Vice President Head of Investment Banking at Sharjah Islamic Bank, came up with the idea of democratizing Islamic Sukuks to allow not only those who held $1000 to invest but also those who had just a $100.
For INABLR and its team, the fractional tokenization of Sukuk aims to empower retail investors by providing them with opportunities to diversify their portfolios and participate in previously inaccessible markets.
Jalaldeen explains, “Once we get the license, which should be in six months, we will become the first entity in the world to offer fractionalized Sukuk. This means clients with even $100 will be able to participate in a Sukuk offering. We are democratizing this Islamic financial product so that retailers across the globe can be part of this.”
Being part of the regulatory sandbox and working the Central Bank allowed INABLR to prove that tokenization of Sukuk on blockchain was safe.
He says, “We worked on everything, KYC, AML, security, custody and other elements that are involved in the process we built a platform that is dedicated to compliance, transparency, and regulatory excellence.”
Tezos Blockchain provided INABLR with a grant. This does not mean that in the future INABLR cannot be built on other blockchain platforms.
Jalaldeen adds that Bahrain was the best location to carry out a real-world assets tokenization pilot as well as receive a license. He notes, “Bahrain has been at the forefront of digital assets and blockchain regulation, and we are very happy to have started our journey here. Bahrain offers a clear licensing for VASPs in terms of categories.”
He is interested in also setting up in Qatar and other GCC and MENA countries in the future. He explains, “We are looking to expand globally either by offering our solution as a B2B, B2C or white labelled solution.”
It is noteworthy that Qatar has shown strong interest in tokenization and the development of digital assets.
With a Sukuk market size of $10 billion in GCC, the tokenization of real-world assets and sukuks in particular will be a significant feat. Next could be the tokenization of real estate and maybe one day sovereign Sukuks.
For Jalaldeen “The CBB’s commitment to fostering innovation has been instrumental in our success. INABLR is not only focused on fractionalizing Sukuk but also aims to revolutionize access to a wide range of real-world assets that are traditionally available only to institutional investors.”
