A recent evaluation by The Asian Banker, analysed the performance of the 100 largest Islamic banks in the world across 23 countries during the COVID-19 pandemic based on results of the first six months of the financial year 2020 (1H FY2020). Total assets of the Islamic banks in the study were valued at USD 1.03 trillion, compared to USD 903.9 billion in the previous year’s evaluation, based on FY 2018 data. The Asian Banker has developed a scorecard (the Islamic Bank Scorecard) reflectin...

A webinar hosted by private-sector entities of the Islamic Development Bank (IsDB) Group, in collaboration with IsDB Group Business Forum “THIQAH” under the Arab-Africa Trade Bridges (AATB) programme discussed issues such as key trade, finance and investment mechanisms aimed at promoting regional trade. The discussion involved three of the IsDB Group’s entities: The International Islamic Trade Finance Corporation (ITFC), the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the Islamic...

Executive Director of the Indonesian Shariah Insurance Association (AASI), Erwin Noekman, noted that Shariah insurance in Indonesia will face a number of challenges which both the industry and regulators need to prepare for. First, Noekman discussed the openness in the main regional market by way of the Association of South East Asian (ASEAN) Framework Agreement on Services (AFAS). AFAS was formed as a cooperation to achieve economic integrity in the service sector within the ASEAN region. According to local media rep...

From Sukuk issuance through Securities Crowdfunding (SCF) – an information technology-based crowdfunding service platform – in Indonesia is expected to be implemented in 2021, according to local media reports. Currently, issuances through SCF cannot be carried out in Indonesia due to constraints on the permit from Indonesia’s Financial Services Authority (OJK).  OJK Deputy Director of Shariah Capital Market, Arief Machfoed, indicated that to date no special Fatwa has been issued by the National...

Most Muslim countries, being commodity producers have witnessed serious pressure on their currencies arising from a widespread fall in commodity prices. While none of the GCC currencies, all of which are pegged to the USD, appear at risk of devaluation, currencies of countries like Malaysia and Indonesia have come under intense pressure. One would have thought that the worst hit would be those depending on one or a narrow group of commodities. Those with a manufacturing based ought to be impacted less. Yet, this is clearly not the case. The GCC coun...

Saudi-based fintech Tamam Financing Company (Tamam), recently announced the certification of its microfinance app considering Shariah principles by Shariyah Review Bureau (SRB), according to local media reports. The Tamam app will provide Shariah-compliant microfinance services in Saudi Arabia.  In addition, the Saudi Arabian Monetary Authority (SAMA) has officially licensed Tamam to provide microfinancing services to consumers across Saudi Arabia.  In alignment with Saudi Arabia’s Vision 2030 Financial Sector Development Plan, Tamam...

According to a statement released by CIMB Investment Bank, a nominal value of MYR 400 million out of Maxis Broadband’s Sukuk Murabahah worth up to MYR 10 billion will be cancelled on the 4th of February 2021, following the purchase of securities or Sukuk, as reported in local media. CIMB Investment Bank, acting as the sole principal adviser and lead arranger for the Sukuk Murabahah programme, noted that Maxis Broadband had purchased the Sukuk Murabahah on the open market, and that the Sukuk Murabahah would be cancell...

Global Sadaqah, a Malaysia-based fintech startup, has raised MYR 450,000 via an issuance on a Shariah-compliant equity crowdfunding platform Ethis Malaysia, according to media reports. The fundraising campaign, which was open for 72 hours, attracted investors from 10 countries and surpassed the minimum target of MYR 200,000. According to media reports, the investment will be used to expand Global Sadaqah’s service offerings in Malaysia, adopt emerging technologies and increase the start-up’s presence in key markets. Currently, the main focus is to provide funds for...

The Pakistan Credit Rating Agency (PACRA) has upgraded the Insurer Financial Strength (IFS) rating of Takaful Pakistan to ‘A’ from ‘A-’, while maintaining a Stable Outlook, according to a statement released on the 1st of February 2021.  According to PACRA, Takaful Pakistan has witnessed unprecedented growth since 2018, following the takeover by new shareholders and the Chief Executive Officer. The company, which initially focused on motor Takaful, has since expanded into health and miscellaneous Takaful, with the business seeing large and rapid growth.&...

Malaysia’s Finance Minister, Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz (Tengku Zafrul), has maintained Malaysia’s gross domestic product (GDP) forecast at between 6.5% and 7.5% for 2021. Speaking at the virtual Bursa Malaysia Forum on the 2nd of February 2020, Tengku Zafrul believes Malaysia is expected to thrive on higher oil prices and a solid recovery in the global export market. Tengku Zafrul stated that during the establishment of Malaysia’s MYR 322.5 billion Budg...