Bursa Malaysia and FTSE Russell have launched the FTSE4Good Bursa Malaysia Shariah (F4GBMS) index on the 5th of July 2021, which is designed to track Shariah-compliant constituents in the FTSE4Good Bursa Malaysia (F4GBM) index.  Why it Matters? The newly-launched F4GBMS index will serve as a basis for fund managers to develop new investment products made up of a portfolio of Shariah-compliant equities guided by sustainable investing principles. The new index is a Shariah version of the F4GBM index, which plays a vital role in recognising public-listed companies tha...

In a statement issued on the 5th of July 2021, Hery Gunardi, General Treasurer of the Islamic Economic Community (MES) Central Executive, has stated that the potential of the Halal industry in Indonesia that could be financed via Islamic banks lies between IDR 420 trillion and IDR 714 trillion. Islamic banking is also expected to play a crucial role in strengthening Indonesia’s sustainable Halal food and Halal fashion ecosystem. Why it Matters?  Gunardi elaborated that although the financing&nbs...

Small Medium Enterprise Development Bank Malaysia (SME Bank), an agency under Malaysia’s Ministry of Entrepreneur Development and Cooperatives, has announced its MYR 3 billion sustainability Sukuk Wakalah Programme (Sukuk), which will focus on six initial key sectors of energy, manufacturing, waste, water, transport and building. According to a statement issued by SME Bank on the 5th of July 2021, the agency is the first development financial institution (DFI) in Malaysia to issue a sustainability Sukuk to meet its funding and working capital requirement.   ...

Datuk Seri Mohamed Azmin Ali, Malaysia’s Senior Minister cum Minister of International Trade and Industry, is on a three-day Trade and Investment Mission (TIM) visit to Qatar, with the aim of attracting more investments into Malaysia, whilst enhancing bilateral relations. The Malaysian Minister will participate in one-on-one business meetings with prominent leaders of Qatari companies in the retail service, cybersecurity and other sectors, leading to the expansion of Malaysia’s footprint in the global&n...

RAM Ratings (RAM) has reaffirmed the respective ratings of Quill Retail Malls (the issuer)’s MYR 350 million Sukuk Murabahah (2017/2024), with a Negative Outlook. The Class A Sukuk Murabahah with an outstanding value of MYR 200 million was reaffirmed at AA1, whilst the Class B Sukuk Murabahah with an outstanding of MYR 60 million was reaffirmed at AA3. The Class C Sukuk Murabahah with an outstanding amount of MYR 20 million was reaffirmed at A2 and the&nb...

According to news reports, Pakistan International Airlines (PIA) is set to issue a 10-year Sukuk, worth up to PKR 20 billion, in July 2021, to meet its working capital requirements and to settle a part of PIA’s existing financing facilities. ‘PIA Sukuk-I’ is to be privately issued with a government guarantee and categorised as a public sector Sukuk.   Why it Matters?  The Sukuk has been given statutory liquidity requirement (SLR) eligible status by the Ministry of Finance. Haris Munawar, Head of Investment Bankin...

Saad Abdulaziz AlKhalb, Chief Executive Officer (CEO) of the Saudi Export-Import Bank (Saudi EXIM Bank), and Hani Salem Sonbol, CEO of the International Islamic Trade Finance Corporation (ITFC) signed a new framework agreement to boost the private sector and promote exporting companies in Saudi Arabia.   Why it Matters? The agreement will contribute towards the Government of Saudi Arabia’s efforts in developing the export sector, banks and other financial institutions in the country. T...

In a statement issued on the 2nd of July 2021, Bank Negara Malaysia (BNM) confirmed its receipt of 29 applicants for a digital banking license, following the end of a six-month application period on the 30th of June 2021. The diverse group of applicants ranged from banks, industry conglomerates, technology firms, e-commerce operators, fintech players to cooperative and state governments. Out of the 29 applicants, up to five will be granted licenses, with successful parties notified in the first quarter of 2022.  &n...

S&P Global Ratings (S&P Global) expects the Islamic finance industry to continue its growth by 10-12% in 2021 and 2022, despite the fact that gross domestic product growth in some countries is expected to be lower than that which it had been historically. Why it Matters? Mohamed Damak, Global Head of Islamic Finance and Sector Lead, Financial Institutions, the Middle East and Africa, at S&P Global, noted that the Islamic finance industry would benefit from strong financing growth in Saudi Arabia in...

Effectiveness of Hedging Accounting Methods: A Case of Islamic Profit Rate Swap ContractSukuk