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UAE set for Islamic securities repo facility launch

The UAE central bank is to launch a repurchase facility for Islamic certificates of deposits to provide a new liquidity tool for the country's banks, Reuters has reported. The new facility is based on a Murabaha concept, a circular showed. "The Shari'ah-compliant facility, which accepts the central bank's Islamic certificates of deposits as collateral, is introduced to provide a source of liquidity to banks," the central bank said.