On the 15th and 16th of June 2021, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) held its 21st meeting of its Governance and Ethics Board (AGEB) via video conference. Primarily, the board discussed the exposure draft of the governance standard on Islamic crowdfunding.  Why it Matters?  The aim of the exposure draft is to lay out a comprehensive framework for good governance of Islamic crowdfunding to overcome the significant risks of Shariah non-compliance and fraudulent practices in the crowdfund...

Fitch Ratings (Fitch) has affirmed Banque Saudi Fransi’s (BSF) Long-Term Issuer Default Rating (IDR) at ‘BBB+’, with a Negative Outlook. The ratings agency has also assigned BSF a ‘bbb’ Viability Rating (VR) and a National Long-Term Rating of ‘AA-(sau)’ with a Stable Outlook.   Ratings Rationale BSF’s Long-Term IDR’s Negative Outlook reflects the same on the Saudi sovereign, as the IDRs are driven by potential state support. BSF’s Support Rating (SF) and Support Rating Floor (SRF) indicate a high probabili...

MIDF Amanah Asset Management (MIDF Amanah AM) has launched a new environmental, social and governance (ESG) Mustadamah Fund (MAEM) on the 18th of June 2021. MAEM is an investment solution for the local equity market which integrates ESG based on the FTSE4Good Bursa Malaysia (F4GBM) Index’s constituent Shariah companies.  Why it Matters?   The MAEM, which has been fully screened by the Securities Commission of Malaysia, is MIDF Amanah AM’s first sustainable and responsible investment fund targeting medium to long-term sustainable capital appreci...

On the 21st of June 2021, United Arab Emirates (UAE)-based Al Yah Satellite Communications Company PJSC (Yahsat), announced an initial public offering (IPO) of a portion of its existing shares and its plans to apply for admission to the Abu Dhabi Securities Exchange (ADX) for all of its shares to be listed and traded. Individuals and other investors in the UAE will be able to buy at least 30% of Yahsat’s shares as part of the UAE retail offering, whilst qualified institution...

Datuk Seri Dr Shamsul Anuar Nasarah, Malaysia’s Minister of Energy and Natural Resources Ministry (KeTSA), stated that the country is concentrating on its power generation plan, targetting 31% of renewable energy (RE) within its installed capacity in 2025. This target is expected to go up to 40% in 2035, under Malaysia’s energy transition plan until 2040. At present, Malaysia has 7,995 megawatts (MW) in installed capacity for RE, and this is expected to...

The Parliament of the Republic of Maldives (People’s Majlis) has voted in favour of Maldives joining the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), which is part of the Islamic Development Bank (IsDB) Group. The motion was brought forward by the President of Maldives, Ibrahim Mohamed Solih during the Parliament’s sitting on the 21st of June 2021, according to local media reports.  Why it Matters?  Maldives had officially applied for ICIEC membership on the 4th of...

RAM Ratings (RAM) has reaffirmed the AA3/Stable rating of Trinity Asia Ventures Berhad’s (TAVB or the Issuer) MYR 52 million Tranche 1 Islamic Medium Term Notes (IMTN), under its MYR 1.5 billion Sukuk Musharakah Programme (IMTN Programme). TAVB is a special-purpose funding vehicle of Malaysian property developer, Trinity Group.   Ratings Rationale The Tranche 1 IMTN is backed by sale and purchase agreements (SPAs) signed with buyers for Trinity Lemanja (the Project), which is a high-rise residen...

Saudi Arabia-based investment management and financial advisory company Watheeq Financial Services (Watheeq) is launching a Shariah-compliant SAR 100 million (USD 26.7 million) closed-ended venture capital (VC) fund that will invest in property technology (PropTech) start-ups in Saudi Arabia and the Middle East and North Africa (MENA) region.  Why it Matters?  Following the COVID-19 pandemic, real estate companies have been forced to digitise to ensure business continuity, which has led to increased investment in PropTech&nbs...

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group has launched the ‘SheTrades’ initiative in Egypt. This is a programme designed to help women achieve economic empowerment by supporting access to new markets and improving competitiveness through the use of digital technologies to facilitate their business growth. The SheTrades initiative is implemented by the International Trade Ce...

According to the United Nations Global Compact (UNGC), Malaysia's market for environmental, social, and governance (ESG)-related projects needs MYR 45 billion in funding over the coming five years. Although the trend in ESG-related project investments is at its early stages, there is now greater interest in looking into the sustainable requirements of the country. Why it Matters? Malaysian investors are taking a greater interest in the social and environmental impacts of their investments and are therefore, now more concerned about greater accountability...