In an attempt to develop a Shariah-compliant finance industry, the Palestinian Central Bank is enticing local banks to its first issuing of Islamic bills.
The largest Shariah-compliant bank in the territories, the Palestine Islamic Bank, will submit a bid of up to $10 million, which the Arab Islamic Bank said it would probably participate in. The Palestine Monetary Authority intends to sell up to $50 million of sukuk to local banks. This will mature in about 18 months and will be the central bank’s first debt offering, according to Governor Jihad al-Wazir.