The International Islamic Trade Finance Corporation (ITFC), part of the Islamic Development Bank (IsDB) Group, has approved a USD 15 million Murabahah Financing Facility with Bangladesh-based Prime Bank. The financing will enable Prime Bank to provide Islamic financing to small and medium-sized enterprises (SMEs) and facilitate cross-border import transactions of the bank’s private sector businesses, according to a recent ITFC statement. The Murabahah Financing Facility will help boost the recovery of SMEs post pandemic, and is part of ITFC’s co...

The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank (IsDB), has signed a memorandum of understanding (MoU) with Uzbekistan’s SQB Securities, an investment banking arm of Joint-Stock Company (JSC) O`zbekiston Sanoat-Qurilish Banki, to development Islamic finance and the capital markets in Uzbekistan. According to a statement issued by the ICD on the 26th of January 2021, the MoU will encompass training courses on Islamic finance as well as its products and services for Uzbekistan’s...

Saudi lender National Commercial Bank (NCB, also known as AlAhli Bank) has completed the issuance of additional Tier 1 Sukuk worth USD 1.25 billion (SAR 4.69 billion), with the settlement implemented on the 26th of January 2021, according to a recent Tadawul filing. NCB issued a total of 6,250 bonds, based on the minimum denomination and total issue size, at USD 200,000 par value, with a perpetual maturity. The Sukuk were sold at a return of 3.5% per annum from the date of issue up to (but excluding) the 26th of January 2027. According to the bourse filing,...

Fitch Ratings (Fitch) states that the recently announced merger between Masraf Al Rayan (MAR) and Al Khaliji Commercial Bank (AKCB) will remain neutral to AKCB’s Issuer Default Rating of AA-/Stable, which is driven by sovereign support. The merger is conditional on obtaining the Qatar Central Bank’s regulatory approvals and is anticipated to be completed in the first half of 2021. AKCB and MAR will continue to function separately until the merger takes effect. Thereafter, only MAR will survive and continue to operate as an Islamic bank...

Kazakhstan’s Damu Entrepreneurship Development Fund (DEDF), a government-led small business development fund, stated that it has recently signed off on agreements with Islamic banks in the country. The aim of these agreements is to provide support to small and medium-sized enterprises (SMEs) with the DEDF having commenced this initiative in April 2020 via the Islamic Finance program. The DEDF has obtained USD 24 million from Al Hilal Bank and USD 7 million from Kazakhstan Ijarah Company for further lending on preferential terms to the SMEs. The fund uses both ...

The enhanced AA1(s)/Stable rating of Pendidikan Industri YS Sdn Bhd’s (PIYSB) MYR 150 million Bai’ Bithaman Ajil Islamic Debt Securities (2008/2022) (BaIDS) has been reaffirmed by RAM Ratings (RAM). The rating reflects the robust support of the Selangor State Government (the State) which has boosted PIYSB’s debt-servicing metrics. According to RAM, the State, which approved an MYR 205.5 million allocation for all BaIDS repayments between 2012-2022, has been settling all dues on behalf of PIYSB since January 2012. In late 2020, PI...

According to the World Economic Situation and Prospects 2021 report published by the United Nations (UN), Egypt’s Gross Domestic Product (GDP) is anticipated to rise by 5.4% in 2021. The report attributes this expected growth to the country’s strong recovery of domestic demand and absence of severe balance-of-payments constraints. Egypt’s GDP for 2020 is estimated at 0.2% for 2020. These growth forecasts come despite the challenges posed by the COVID-19 pandemic in 2020.  The report added that higher fiscal expenditures in Egypt&nbs...

The International Islamic Trade Finance Corporation (ITFC), part of the Islamic Development Bank (IsDB) Group, has announced the upcoming launch of the second phase of the Aid for Trade Initiative for Arab States (AfTIAS 2.0), set to take place in June 2021, in a bid to mitigate the impact of the COVID-19 pandemic on trade in the Arab region, according to an ITFC statement.  The announcement was made during a recent webinar hosted by the ITFC in coordination with the League of Arab States (LAS), which included high level officials, partners a...

Supported by the rollout of the COVID-19 vaccine and the economic recovery of its trading partners, Turkey's economy is expected to expand by around 6% in 2021, according to the International Monetary Fund (IMF). This is higher than the 5.0% growth rate forecast previously in October 2020.   The IMF attributed this recovery to speedy monetary and credit expansion, which comprised policy rate cuts, inexpensive, rapid lending growth by state-owned banks and changes to regulations to boost credit in 2...

Fitch Ratings (Fitch) believes that Nigeria’s infant Islamic finance industry shows growth potential. The Sukuk market in Nigeria, currently in early stages of development, holds less than a 0.5% share of the global Sukuk market, according to International Islamic Financial Market's 2020 Sukuk database. The proclaimed growth potential by Fitch is based on Nigeria being the most populous country in Africa; having the fifth largest Muslim population in the world. In addition, the industry is also witnessing rising Government support. At end-2019, the African continent held less than 2% sha...