Al Kawthar Leasing Company Reinforces its Leadership Position with the Issuance of the First Private Sector Islamic Mudarabah Sukuk in Jordan
Amman, Jordan
Al Kawthar Leasing Company announced that it has obtained all official approvals from the Jordan Securities Commission, the Central Sharia Committee, and the Jordan Sukuk Council to issue the first Islamic Mudarabah Sukuk by the private sector in Jordan. As part of this unprecedented national achievement, the Sukuk will be listed for trading on the Amman Stock Exchange.
This milestone issuance reflects the institutional and regulatory readiness of the Jordanian capital market to accommodate advanced Islamic financing instruments. It also reinforces Al Kawthar Leasing Company’s position as a leading institution in the Islamic finance sector and represents a qualitative leap in the development of Islamic financing instruments, supporting the diversification of funding sources and keeping pace with market aspirations.
For his part, His Excellency Dr. Hayel Daoud, the External Sharia Advisor appointed by Al-Kawthar Leasing Company for the sukuk issuance, affirmed that this Mudarabah issuance constitutes a first for the private sector in the Hashemite Kingdom of Jordan. He explained that the Mudarabah sukuk are fully compliant with the provisions of Islamic Sharia, thereby enhancing confidence in Islamic finance instruments and supporting the diversification of funding sources in the national economy.
In this context, Dr. Basel Al-Shaer, Chairman of the Sharia Supervisory Board at Al Kawthar Leasing Company, highlighted that the Company is the first Sharia-compliant leasing company in Jordan, operating under the supervision of an independent Sharia Supervisory Board, which reinforces its commitment to the highest standards of governance and transparency.
On this occasion, Mr. Jamal Fariz, General Manager of Al Kawthar Leasing Company, stated that the issuance reflects the company’s pivotal role in diversifying funding sources and delivering innovative Islamic financing solutions that meet the needs and aspirations of both corporate and individual clients. He added that it contributes to supporting economic growth and strengthening Jordan’s position as a regional leading hub for Islamic finance, opening new horizons for sustainable growth and investment.
The total nominal value of the sukuk under this program amounts to JOD 15 million, to be issued in multiple tranches, expected return of 6% on the first tranch for sukuk holders based on the nominal value of the sukuk.
It is worth noting that Al-Kawthar Leasing Company is a subsidiary of Arab Jordan Investment Bank (AJIB), founded in 2022. The company is the first financial leasing firm in the Kingdom to operate in full compliance with Islamic Sharia principles, under the supervision of an independent Sharia Supervisory Board. Al-Kawthar Leasing Company is committed to providing integrated Islamic financing solutions that meet the needs and requirements of various customer segments, including both corporates and individuals.
