Gambiaj.com – (BANJUL, The Gambia) – The Central Bank of The Gambia has issued three Sukuk Al-Salam bills worth a total of GMD56.25 million (approximately US$763,700) as part of efforts to manage liquidity in the banking system while expanding the country’s Islamic finance instruments.
The short-term Islamic securities, structured with maturities of 91 days, 182 days, and one year, are direct obligations of the Government of The Gambia and are designed to provide investors with Shariah-compliant alternatives to conventional Treasury bills.
According to information from the central bank, the Sukuk bills are issued at a discount and redeemed at their face value upon maturity, allowing investors to earn returns in a manner consistent with Islamic financial principles that prohibit interest payments.
The issuance forms part of the central bank’s broader strategy to strengthen liquidity management and diversify public debt instruments by incorporating Islamic finance products alongside conventional government securities.
Under the operational structure, the Central Bank of The Gambia acts as the government’s agent in the issuance process, conducting regular tenders in which banks and other investors submit bids to purchase the instruments.
Officials say the introduction and continued issuance of Sukuk-Al-Salaam bills is intended to deepen the domestic financial market by attracting investors seeking Shariah-compliant investment options while providing the government with an additional channel for short-term financing.
The instruments, commonly referred to in official auction results as Sukuk-Al-Salaam (SAS), are typically limited to maturities of not more than one year, making them suitable tools for short-term fiscal financing and monetary operations.
Financial analysts note that the move reflects growing interest in Islamic finance across West Africa, where governments and financial institutions are increasingly adopting Shariah-compliant instruments to broaden their funding base and strengthen financial sector resilience.
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