Comparative Analysis of Customer Loyalty in Islamic and Conventional Banks: A Literature ReviewHalal, Islam, Islamic banking, Sales

As a follow up to the Government of Indonesia’s first edition of its biweekly auction of State Shariah Securities (SBSN) in 2021, a total of IDR 4.7 trillion has been raised through the auction of five additional series of SBSN (Greenshoe Option Sukuk) on the 13th of January 2021.  According to a statement issued by the Directorate General of Budget Financing and Risk Management (DJPPR), Ministry of Finance, the SBSN Series offered at the additional auction conducted by Bank Indonesia were PBS-027, PBS-017, PBS-029, PBS-0...

Inflation in Saudi Arabia increased to 3.4% year-on-year (YoY) in 2020, according to the latest data from the General Authority for Statistics. Government data indicated that the prices of food and beverages (up 9.0% YoY), along with transport (up 3.8% YoY) were the main drivers of inflation in 2020.  According to media reports, this increase was led by the tripling of VAT in July 2020, amidst lower oil prices and the COVID-19 pandemic. The VAT increase to 15% caused a spike in inflation in the second half of 2020. This followed a deflationary trend in 2019 (-2.1% YoY) an...

New Zealand-based financial services company EFCO Limited (EFCO) has received Shariah certification from Shariyah Review Bureau (SRB), which is a Bahrain-based Shariah advisory firm licensed by the Central Bank of Bahrain, according to media reports.  EFCO is integrating Shariah compliance into its assets and debt-based products. The collaboration will allow SRB to oversee and supervise the Shariah-compliant aspect of EFCO’s asset financing and personal loans.  According to media reports, there is currently no enterprise in New Zealan...

Malaysian-based water meter manufacturer and supplier, George Kent (Malaysia) Berhad (George Kent) has lodged two Sukuk Wakalah Programmes with the Securities Commission Malaysia on the 14th of January 2021.  According to a Bursa Malaysia filing, George Kent lodged Islamic Commercial Papers (ICP) under the ICP Programme of up to MYR 100 million in nominal value, and Islamic Medium-Term Notes (IMTN) under the IMTN Programme of up to MYR 500 million in nominal value. The ICP Programme and IMTN Programme have a combined aggregate limit...

The Hajj Financial Management Agency in Indonesia (BPKH) has stated its plans to invest IDR 3 trillion in Bank Muamalat Indonesia (BMI). According to BPKH, this investment which has been pending from 2020 is in accordance with the Annual Investment Plan as stated in the Work and Budget Plan. Speaking at a virtual press conference on the 13th of January 2021, Iskander Zulkarnain, a member of the BPKH Implementing Agency noted that BPKH had plans to invest via both Tier 1 equity of IDR 1 trillion and Tier 2 subordinated Sukuk of IDR 2 trillion. ...

RAM Rating Services (RAM) has reaffirmed the AAA/Stable ratings of Gulf Investment Corporation’s (GIC) MYR 3.5 billion Sukuk Wakalah Bi Al-Istithmar Programme (2011/2031) and its MYR 400 million Senior Unsecured Bonds (2008/2023). In addition, RAM has reaffirmed the AAA/Stable/P1 corporate credit ratings of GIC.  GIC is a supranational financial institution owned equally by the six Gulf Cooperation Council (GCC) states, with a mandate to support the region’s development. The ratings reflect the extraordinary support that GIC...

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has announced that all of its standards are now available for free on its website in both English and Arabic. The AAOIFI highlighted that these standards should only be accessed through its official website and that the Institution would not take responsibility for ‘other versions’ of the standards that are found on various social media platforms. Previously, the AAOIFI had made available only its Shariah standards online free of charge. The AAOIFI stated that its Executi...

Malaysian Rating Corporation (MARC) has assigned preliminary ratings of MARC-1IS and A+IS to George Kent (Malaysia) Berhad’s (George Kent) proposed MYR 100 million Islamic Commercial Papers (ICP) Programme and MYR 500 million Islamic Medium-Term Notes (IMTN) Programme, with a combined limit of MYR 500 million, with a Stable Outlook.  George Kent is a Malaysian-based water meter manufacturer and supplier for residential, industrial and commercial sectors, and provides metering solutions for clients in Malaysia and abroad. MARC’s assigned ratings...

Arada, a property developer in Sharjah, based in the United Arab Emirates (UAE), announced the confirmation of a new Shariah-compliant loan facility worth AED 300 million from Dubai Islamic Bank and a smaller facility (AED 37 million) from Ajman Bank.  The facilities, which were announced on the 11th of January 2021, are set to assist Arada in the funding of its on-going and planned residential projects. Prior to this, Arada has taken out loans totalling AED 2 billion in 2017 and 2018.  In December 2020, Arada launched plans for a community deve...