Supply@ME, the fintech platform that provides a unique Inventory Monetisation service to European manufacturing and trading companies, has announced it is authorised to offer SYME’s Shariah-compliant Inventory Monetisation Platform to companies in the Middle East and North Africa (MENA) region.
Further to the announcement on 3 November 2020, in which Supply@ME first announced plans to launch a product tailored for the Islamic finance sector, the company has now received approval from the Shariah Scholar Board. SYME is now able to market its dedicated, Shariah-compliant investment product with its fund specialist – which is yet to be announced.
The announcement from the Shariah Scholar Board reads: “An official pronouncement has been released by Sheikh Dr.Mohamed Elgari and Sheikh Yusuf Talal DeLorenzo in their capacity as members of the Shariah scholar board (the “Sharia Scholar Board”) in relation to the inventory monetisation service.
“The functional and the legal structure of the Inventory Monetisaton Investment (“Inventory Monetisation Structure”) has been presented to the Shariah Scholar Board. The Shariah Scholar Board, following a review in compliance with the AAOIFI Shariah standards, hereby approves the Inventory Monetisation Structure as acceptable within the principles of Shariah.”
In receipt of this authorisation, Supply@ME has begun working with its local partner iMASS to manage the onboarding of an initial portfolio of MENA region client companies – first announced to the London Stock Exchange on 11 January 2021.
This news comes at a time where the potential for growth of the inventory monetisation asset class is significant, for beneficiaries and investors alike. Supply@ME estimates the underserved inventory finance market in the UAE is worth some USD $50bn.
In a speech during UK Islamic Finance Week 2020, the Bank of England’s executive markets director, Andrew Hauser, described Islamic finance as “strikingly well suited to [respond] to some of the biggest challenges we will all face in rebuilding our economy once Covid has passed.”
Earlier this month, Supply@ME closed a deal with Lenovo Financial Services META (Middle East, Turkey and Africa) to offer SYME’s inventory monetisation platform to Lenovo’s network of customers in the region.
Alessandro Zamboni, Supply@ME Capital plc Chief Executive, said: “I’m thrilled to have the opportunity to deliver our unique inventory monetisation investment product into the growing Islamic finance sector. Indeed, the Bank of England has recently commented that certain key aspects of Islamic finance make it particularly well suited for financing the post-Covid recovery. This resonates strongly with Supply@ME’s own mission to help and support business owners to create liquidity from their stock, thereby optimising inventory days, especially during this crucial phase of the economic cycle.