Bahrain’s Al Salam Bank has become the first bank in the world to implement JP Morgan Payments’ overnight murabaha solution, introducing a new liquidity management tool designed to improve treasury operations and strengthen financial efficiency.
The solution, launched in March 2026, allows the bank to generate overnight murabaha-based returns on US dollar balances held in its JP Morgan Payments account. It is structured using a murabaha sale arrangement in line with Islamic finance principles.
According to the bank, the new system is designed to optimise the use of short-term funds, improve treasury management and support more effective balance sheet management.
The milestone was marked during a visit by senior representatives from JP Morgan Payments to Al Salam Bank’s headquarters in Bahrain, underscoring the strategic partnership between the two institutions and their collaboration in advancing Islamic finance solutions.
Al Salam Bank Group Chief Executive Officer Rafik Nayed said the launch represents an important step in the evolution of liquidity management, reflecting the bank’s commitment to introducing innovative solutions that enhance operational efficiency while maintaining high governance standards.
He added that the collaboration with JP Morgan Payments supports the bank’s broader strategy of driving sustainable growth through partnerships with leading international financial institutions.
Abdulla Aljanahi, General Manager of JP Morgan’s Bahrain branch, said the launch builds on a longstanding relationship between the two organisations and delivers a practical solution that addresses the bank’s treasury management needs.
The introduction of the overnight murabaha solution forms part of Al Salam Bank’s wider efforts to strengthen its treasury capabilities through the adoption of internationally recognised financial practices.
The bank said the initiative also reinforces its role in supporting the continued development of the Islamic finance sector while delivering greater value for customers and stakeholders.
