The Government of Algeria has examined and adopted a draft executive decree stating the conditions, regulations and modalities needed for the successful undertaking of Takaful businesses in the country. According to media reports, no date has been announced for the publication of the Takaful regulations.  A statement issued in this regard highlighted that the establishment of Takaful operations in the country, which maintained compliance with Islamic Shariah law principles, would support the Government’s action plan for the development of alternative finance in Alge...

RAM Ratings (RAM) has reaffirmed MNRB Holdings (MNRB or the Group)’s AA3/Stable Rating of Senior Sukuk and A1/Stable Rating of Subordinated Sukuk of its MYR 320 million Sukuk Murabahah Programme (2019/-). In addition, RAM has reaffirmed Malaysian Reinsurance’s (Malaysian Re or the Reinsurer; a wholly-owned primary subsidiary of MNRB) Insurer Financial Strength (IFS) Ratings at AA2/Stable/P1 and its MYR 250 million Subordinated Medium-Term Note Programme (2015/2030) at AA3/Stable.  According to RAM, the one-notch difference between...

Telekom Malaysia (TM) issued a statement on the 8th of February 2021, noting its intent to repurchase all outstanding Islamic Medium-Term Notes (IMTN) before they mature. These Islamic bonds were initially issued at a nominal value of up to MYR 2 billion. The MTNs comprise seven tranches with coupon rates between 3.93%-4.50% and maturities ranging and the 25th of June 2021 and the 23rd of June 2023. According to the statement, TM will hold an extraordinary general meeting on the 1st of March 2021 to obtain approval from&nb...

Maybank Investment Bank Research (MIBR) anticipates Malaysian-based RCE Capital (RCE) is likely to be eligible for Shariah status by November 2021, according to a report released on the 7th of February 2021.  According to MIBR, there are currently only three Shariah-compliant financial services companies in Malaysia (BIMB Holdings, Bursa Malaysia and Syarikat Takaful Malaysia Keluarga), with RCE’s closest-listed peers AEON Credit Service and MBSB Bank classified as non-Shariah compliant. If RCE obtains Shariah status, MIB...

Qatar Islamic Bank (QIB) announced the launch of its online payment management solution for large corporate clients, with the fully automated service allowing for greater ease, safety and speed of transactions.  A statement released by QIB indicated that it’s the first Islamic bank to fully enable automated transactions supported by enterprise resource planning (ERP) systems. The system, which operates using a host-to-host framework encrypts all data in transit.  Tarek Fawzi, QIB’s Wholesale Banking Group General Manager, noted that the new system...

Moody’s Investors Service (Moody’s) has affirmed the A3 issuer rating of CIMB Islamic Bank (CIMB Islamic), while maintaining a Stable Outlook, according to a statement issued on the 5th of February 2021.  According to Moody’s, CIMB Islamic’s A3 issuer ratings are placed two notches above the bank’s baa2 baseline credit assessment (BCA), reflecting Moody’s expectation of a very high level of support from CIMB Bank, as well as the Government of Malaysia.  The baa2 BCA of CIMB Islamic accounts for the bank’...

Data pertaining to the headline seasonally adjusted IHS Markit Saudi Arabia Purchasing Manager’s Index (PMI) showed a marginal increase from 57.0 in December 2020, to 57.1 in January 2021; the highest recorded since November 2019.   According to media reports, this expansion was driven by a spike in new orders in January 2021, resulting from improving market conditions, a rise in online sales, and higher demand for exports.  David Owen, Economist at IHS Markit, highlighted that the acceleration in non-oil activity growth in 2021 was indicative of a recov...

Indonesia’s  gross domestic product (GDP) declined to 2.07% year-on-year (YoY) in 2020, according to the Statistics Indonesia (BPS). This followed 5.0% GDP growth YoY reported in 2019. Reports state that GDP fell more than expected in the fourth quarter of 2020 (4Q 2020), down 2.19% YoY – leading to Indonesia’s first full year contraction since the 1998 Asian Financial Crisis. The hardest hit sectors in Indonesia included household consumption, transportation and tourism, according to BPS data.  The contraction of 2020 was due to...

Bank Negara Malaysia (BNM) announced its plans to allocate additional funding by way of MYR 2 billion for the Targeted Relief and Recovery Facility (TRRF), bringing the total to MYR 4 billion. According to the statement, another MYR 200 million was set up towards Disaster Relief Facility (DRF) 2021.   The main aim of this new fund according to BNM, is to reduce financial burdens on Small and Medium Enterprises (SMEs) and to cover costs of repairs and the replacement of damaged business assets. The DRF is mainly directed at the flood-affected districts, as identified...

Malaysian Rating Corp (MARC) has lowered its economic growth projection for Malaysia in 2021, to 5.6%, compared to its estimate of 6.4% previously made in January 2021. This follows an expected 5.7% contraction in Malaysia’s gross domestic product (GDP) in 2020, anticipated to be the worst economic decline since the 1997/98 Asian Financial Crisis. In comparison, Malaysia’s Finance Ministry forecasts GDP to contract by 4.5% for 2020 and positive economic growth of between 6.5% and 7.5% for 2021. The estimated decline in GDP in 2020 incorporates the effects of the COVID-1...