Bangladesh is looking to attract investors from established Islamic finance markets like the United Arab Emirates (UAE) and Malaysia, to buy-in to its Sukuk issuances, in the hope of attracting long-term Shariah-compliant financing. Experts convened at the conference titled ‘Sukuk: The New Investment Opportunity in Bangladesh’ held in the UAE with the aim of promoting Bangladesh as another potential investment destination for foreign investors. The four-day seminar was organised by the Bangladesh Securities and Exchange Commission (BSEC) with the aim of attracting foreign...

Malaysia Airlines has announced that it will be redeeming its MYR 1.5 billion Sukuk Musharakah early. The filing made by CIMB Investment Bank on Bank Negara Malaysia’s Fully Automated System for Issuing and or Tendering (FAST), in the second week of February 2020, stated that the redemption would take place in full. The Sukuk had been issued to raise funds for general investment and working capital purposes. On the 17th of September 2020, Malaysia Airlines had issued notices stating its deferral of payments to bondholders, ahead of its periodic distribution dat...

A Study on the Acceptability of Islamic Banking in IndiaIslamic banking

The Impact of Service Quality and Product Quality towards Customers Satisfaction in Islamic Banking: The Moderating Role of Customer Knowledge Halal, Islam, Islamic banking, Shariah

Two of the Muslim world’s largest economies, Turkey and Indonesia have announced ambitious plans for infrastructure development. More than anything, the funding of these ambitions will be the main challenge. Faced with inadequate domestic savings and capital formation, the financing of development infrastructure becomes a huge challenge for developing countries.  They often have little choice but borrowing externally to fund pressing development needs. Such debt financing however, causes a number of problems....

Westports Malaysia (Westports) has been assigned a long-term rating of AAA/Stable on its MYR 2.0 billion Sukuk Musharakah Programme 2011/2031. Westports is the private operator of Malaysia’s largest container terminal and multi-cargo port (the Port), through its privatisation agreement with the Government of Malaysia and the Port Klang Authority running up until 2054.  The AAA rating reflects the strategic location and strong market position of the Port, as well as the Port’s established relationships with major international shipping lines...

Takaful Oman Insurance SAOG (Takaful Oman) has become the first Takaful company in the world to establish its debut Sukuk Al Mudarabah Trust Certificate Issuance Programme. The transaction represents a perpetual Sukuk programme established by a Takaful company.  Through Takaful Sukuk SPC, a special purpose company set up by Takaful Oman purely for this Sukuk programme, the first series of Sukuk certificates worth OMR 6 million were successfully issued. Takaful Oman will use the net proceeds of the Certificates to strengthen the...

Indonesia-based engineering and construction company Wijaya Karya (WIKA) is set to issue Sukuk and conventional bonds collectively worth IDR 3 trillion, as stated in by WIKA’s management in the prospectus.  The Shelf Registration Sukuk Mudarabah I Wijaya Karya Phase II Year 2021, carries a principle value of IDR 500 billion, and the funds will go towards meeting working capital projects. These infrastructure and building projects are Shariah-friendly and is part of the PUB Sukuk Mudharabah I Wijaya Karya, which has a target fund ra...

Based out of Bangladesh, Southeast Bank has received the green light from the Central Bank, Bangladesh Bank, to provide Islamic banking services across all its business locations, along-side its conventional banking services.  Media reports state that permission was granted by Bangladesh Bank following the submission of an application in this regard by Southeast Bank.  Following the approval, Southeast Bank will now find it easier to provide all technology-backed and modern Shariah-compliant banking services from all its branch locatio...

Moody’s Analytics (Moody’s) reported a pick-up in Malaysia’s industrial production in December 2020, up 4.1% year-on-year (YoY), following two months of declines amidst the COVID-19 pandemic. According to a report issued on the 9th of February 2021, Moody’s stated that the growth in manufacturing was led by electrical products and transport equipment, whilst consumer products, mining and electricity weighed down on industrial production.  Production of electrical products grew 7.6% YoY in December 2020, following a rise of...