tl;dr
Saudi Awwal Bank (SAB), partly owned by HSBC, has executed the world's first Islamic Repo transaction using blockchain technology in partnership with blockchain provider Oumla. This blockchain-based Islamic Repo replaces traditional paperwork with smart contracts, enhancing speed, security, and tran...
Saudi Awwal Bank (SAB), a Riyadh-based joint stock company partially owned by HSBC, has pioneered the world’s first Islamic Repo transaction on blockchain technology. In partnership with Oumla, a blockchain infrastructure provider, SAB has enabled lending between banks in strict adherence to Islamic finance principles, benefiting from blockchain’s speed, security, and transparency.
The blockchain-enabled Islamic Repo replaces traditional paperwork with smart digital contracts that securely and immutably record transactions. This innovation improves asset and liquidity management for banks while minimizing risk. Victor L. Phillipe, SAB’s Virtual Assets and Currency Lead, praised Oumla’s expertise and support throughout the implementation.
Oumla, a Saudi-based layer 1 blockchain platform, recently partnered with Avalanche to establish Saudi Arabia’s first fully KSA-hosted layer 1 blockchain. This collaboration aims to bolster startups and SMEs, promoting technological advancement across Saudi Arabia and the broader MENA region.
Reflecting this momentum, Saudi Arabia’s Ministry of Commerce reported a surge in new business licenses in Q2 2025, especially in high-growth sectors like blockchain, AI, and Big Data analytics. The country now boasts 1.72 million valid business records, with blockchain companies growing by 51% to exceed 4,000 registrations. This dynamic growth underscores Saudi Arabia’s accelerating embrace of digital innovation and advanced technologies in its economic landscape.