Middle Policy Analyst at the Fiscal Policy Agency (BKF) of the Ministry of Finance (MoF) Indonesia, Mochamad Imron has stated that the MoF is prepared to offer its full support to develop the Islamic financial services sector in Indonesia. According to Imron, the MoF has the main task of regulating the development of Islamic finance in the country, and also plays a role in moving the market, through the creation of instruments that people can invest in, such as state Sukuk.Why it Matters? Director of Shariah Financial Services National Committee for Shariah Economics and Fin...

The United Nations Institute for Training and Research (UNITAR) will enable the ‘International Dialogue on the Role of Islamic Social Financing in Achieving the Sustainable Development Goals (SDGs)’ through a series of virtual seminars. This initiative, in collaboration with the Islamic Development Bank (IsDB) commenced during the holy month of Ramadan and will be held through November 2021. Why it Matters? The latest United Nations (UN) global economic forecast released on the 11th of May 2021, indicates that&nbs...

Performance and Risks: Islamic Indices and Compared to Conventional IndicesIslam

Moody’s Investor Services (Moody’s) has reconfirmed Qatar International Islamic Bank’s (QIIB) long-term credit rating at A2, with a Stable Outlook, affirming the bank’s robust financial position.  Rating Rationale The rating reflects the strength and robustness of Qatar’s economy, which is rated Aa3/Stable. According to Moody’s Credit Opinion Report on QIIB, the bank has solid asset quality, driven by an adjusted non-performing financing ratio of 1.5% as of December 2020, compared to a 2.0% average for Qatari banks. The bank’s a...

Malaysian Rating Corporation (MARC) has assigned MARC-1IS/A+IS ratings to Serba Dinamik Holdings’ (Serba Dinamik) MYR 500 million multi-currency Islamic Commercial Papers (ICP) Programme and MYR 1.5 billion Islamic Medium-Term Notes (IMTN) Programme with a combined limit of MYR 1.5 billion, with a Stable Outlook. Serba Dinamik is an international oil and gas solution provider based in Malaysia.  Ratings Rationale The ratings reflect Serba Dinamik’s operations and maintenance (O&M) order book, based on a strong track record in the O&am...

In the first quarter of 2021 (1Q 2021), the economy of Malaysia saw a 0.5% year-on-year (YoY) contraction, which, although negative, was still an improvement from the 3.4% YoY contraction in the fourth quarter of 2020 (4Q 2020).  Why it Matters?  All economic sectors saw improvement in 1Q 2021, led by the manufacturing sector, which grew 6.6% YoY compared with its 3.0% rise in 4Q 2020. Governor of Bank Negara Malaysia, Datuk Nor Shamsiah Mohd Yunus, stated that even though there is now a third round of a movement control order (MCO 3.0), the country’s gr...

The General Council for Islamic Banks and Financial Institutions (CIBAFI), which is the global umbrella of Islamic financial institutions, has strengthened its commitment to support sustainability and responsible business practices within the Islamic financial services industry. This took place at a virtual roundtable meeting held on the 10th of May 2021 to discuss various aspects on developing a CIBAFI Sustainability Guide for Islamic Banking Industry, which was attended by CIBAFI Sustainability Working Group members, regulators and international industry experts. W...

Islamic assets in Indonesia saw a 23.52% year-on-year increase up to February 2021 (from the start of 2021), reaching a total of IDR 1,836 trillion, according to the Financial Services Authority (OJK). Although this increase is significant, Islamic assets still account for a mere 9.96% in the financial market.  Why it Matters?  The potential for Islamic finance to grow is high despite the young age of Islamic banks compared to their conventional counterparts, and there is room for development, especially given that the country has a co...

Fitch Ratings (Fitch) has affirmed Emirates Islamic Bank’s (EI) Long-term Issuer Default Rating (IDR) at A+ with a Stable Outlook. In addition, Fitch has rated EI’s Viability Rating (VR) at bb-.  Ratings Rationale The ratings of EI are in line with Emirates NBD Bank (ENBD; rated A+/Stable/F1), supporting Fitch’s view that EI is a vital subsidiary of its 99.9% shareholder. ENBD’s IDR’s reflect the support available from United Arab Emirates (UAE) authorities (AA-/Stable) if required. Given EI’s role as ENBD’s Islamic fi...

Fraser & Neave Holdings (F&N) has announced that its wholly-owned subsidiary F&N Capital plans to undertake a Sukuk Murabahah Programme of up to MYR 3 billion in nominal value, according to a Bursa Malaysia filing dated the 7th of May 2021. The Programme consists of a proposed Islamic Commercial Papers (ICP) Programme, and proposed Islamic Medium-Term Notes (IMTN) Programme, both of which are based on the Shariah principle of Murabahah via a Tawarruq arrangement.  Why it Matte...