Fitch Ratings (Fitch) has affirmed Kuwait International Bank’s (KIB) long-term Issuer Default Rating (IDR) at A+, and viability rating (VR) at bb- with a Stable Outlook. The Stable Outlook on KIB’s IDR reflects the outlook on the Kuwaiti sovereign rating.According to the Fitch report issued on the 22nd of December 2020, KIB’s IDRs reflect a high level of support from the Kuwaiti authorities, if required. It considers Kuwait’s strong capacity to support the domestic banking system as reflected by its sovereign rating (AA/Stable) and willingness to continue support irre...

Egypt’s Cairo for Investment and Real Estate Development (CIRA) has approved the issuance of Sukuk Ijarah worth EGP 600 million for a maximum period of 48 months at its latest Extraordinary General Meeting (EGM), according to media reports. The Sukuk Ijarah, which is Shariah-compliant, tradable and non-convertible, will be offered in a private placement for eligible institutions and individuals, according to a CIRA statement on the Egyptian Exchange on the 23rd of December 2020, as reported by media. EFG Hermes has been appointed as the issuance manager of the Sukuk Ijarah...

In a statement issued on the 23rd of December 2020, Pengurusan Air Selangor (Air Selangor) announced the successful completion of its inaugural issuances under its recently established Sukuk Murabahah Programme. These consist of a 30-year Islamic Medium-Term Notes (IMTN) programme and a 7-year Islamic Commercial Papers (ICP) issuances, with a maximum combined limit of MYR 10 billion in nominal value. In relation to the Sukuk Murabahah programme, the company reported that it had raised MYR 50 million through the ICP issuance and MYR 1.1 billion from the IMTN issuance across four ten...

Dubai, United Arab Emirates, is working towards strengthening its circular economy, having recently approved the 2021 Agenda of the Council, which states the creation of a circular economy as amongst its key aims. In 2019, Dubai hosted a workshop series named “Hacks” pertaining to the opportunities and challenges posed by a circular economy. This introductory event saw 50 key stakeholders, proposing solutions to speed up the transition to a circular economy across six dimensions: market readiness, innovation, funding & capital, skills development, regulatory readiness, a...

Indonesia’s Finance Ministry has downgraded the country’s 2020 economic growth forecast further ahead of the seasonal December holidays. Sri Mulyani Indrawati, Indonesia’s Finance Minister, stated on the 21st of December 2020 that the Government of Indonesia now forecasts the country’s gross domestic product (GDP) to contract between 1.7% and 2.2% year-on-year (YoY) in 2020. This is primarily driven by lower household spending, which accounts for more than fifty percent of the country’s GDP. Indrawati stated that household spending is expected to decline by...

Bangladesh Bank (BB) and the Finance Ministry of Bangladesh have signed a Memorandum of Understanding (MoU) on the 22nd of December 2020 to raise BDT 80 billion worth of Sukuk for the implementation of a safe water supply project, according to local media reports. The Sukuk, which is the first of its kind in Bangladesh, will be issued as per the ‘Bangladesh Government Investment Sukuk Guidelines, 2020’ on the 30th of December 2020, according to the MoU. The Finance Ministry is the originator of the Sukuk, and BB, which is the country’s central bank, will act as a speci...

Indonesia’s 2021 Economic Outlook is optimistic about the country’s growth in 2021, citing three key contributors to the recovery, which are set to lead to Indonesia’s economic growth coming in at between 4.8% and 5.8% year-on-year (YoY). First, according to Bank Indonesia Governor, Perry Warjiyo, Indonesia’s exports are expected to increase as the global economy as well as the economies of its main trading partners, China and the United States of America (USA) show improvement. Warjiyo noted that the global economy is forecast to grow by 5.0%...

Saudi-based Arabian Aramco Total Services Company (AATSC), a subsidiary of Saudi Aramco Total Refining and Petrochemical Company, has announced the partial redemption of its semi-annually scheduled Sukuk Musharakah on the 21st of December 2020, according to a Tadawul statement.  A total amount of SAR 141.746 million representing 3.78% of the total nominal value of the company’s Sukuk was distributed, according to the redemption schedule of the Sukuk prospectus issued on the 10th of September 2011, which was approved by the Capital Market Authorit...

Egypt’s trade deficit declined by 32.4% year-on-year (YoY) to USD 2.7 billion in September 2020, from USD 4.0 billion in the same month in 2019, according to the country’s Central Agency for Public Mobilization and Statistics (CAPMAS).  Foreign trade data published in CAPMAS’ monthly bulletin stated that the value of Egypt’s exports fell 2.8% YoY to USD 2.3 billion in September 2020, compared to USD 2.4 billion in September 2019. The decrease in the value of exports was attributed to a reduction in commodities including crude oil (down 38.4% YoY), petroleum...

RAM Rating Services (RAM) has reaffirmed the rating of Batu Kawan’s MYR 500 Million Islamic Medium-Term Notes (IMTN) Programme (2013/2023) at AA1/Stable.  Batu Kawan is a Malaysian-based investment holding company with subsidiaries involved in chemical manufacturing, transportation, property investment, investment holding and plantations. RAM’s reaffirmation reflects Batu Kawan’s ability to maintain a robust financial profile in spite of the COVID-19 pandemic. RAM also reported that despite a disruption in dem...