Speaking at the presentation of the 2021 Budget to Parliament for debate, Turkey’s Vice President, Fuat Oktay stated that the prime aim of the 2021 Budget is to ensure stable and predictable steps to allow Turkey’s economy to progress in the midst of the on-going global restructuring due to COVID-19.  According to the Vice President,  a key objective of the Government of Turkey is to permanently reduce inflation to low, single-digits through the implementation of the Budget initiatives. The Government also expects the unemployment rate...

Islamic finance: from sacred intentions to secular goals?Fatwa, Fiqh, Islam, Islamic banking, Maqasid, Riba, Ummah

RAM Ratings (RAM) has reaffirmed the AAA(s) ratings of Islamic securities issued by the funding conduits of Khazanah Nasional, which is the investment arm of the Government of Malaysia. The ratings all have a Stable Outlook  The Khazanah-related securities reaffirmed as AAA(s)/Stable by RAM comprises of the MYR 7.0 billion Islamic medium-term note (MTN) Sukuk Musyarakah Programme (2006/2041) issued by Rantau Abang Capital, the MYR 20.0 billion multi-currency Islamic Securities Programme (2009/2044) issued by Danga Capital, the&...

Indonesian trade and consumer good issuer, Tiga Pilar Sejahtera Food (AISA) or TPS Food has announced plans to buy back a number of Sukuk and bonds that have been issued by the company over 2013 to 2016 worth IDR 476.98 billion, according to local media reports.  According to a disclosure submitted to the Indonesia Stock Exchange (IDX) on the 3rd of December 2020, TPS Food has submitted a plan to repurchase TPS Food I Bond Year 2013 (Bond I), Sukuk Ijarah TPS Food I Year 2013 (Sukuk I), and Sukuk Ijarah TPS Food II Ye...

Saudi-based specialist in asset management, Alkhabeer Capital, has announced the initial public offering (IPO) of its latest Islamic fund launch, namely the Alkhabeer Diversified Income Traded Fund (Islamic Fund), according to local media reports.  The Islamic Fund, which is a closed-ended traded fund regulated by the Saudi Capital Market Authority (CMA), has a fundraising target of USD 266 million (SAR 1 billion), and will be listed on Tadawul, the Saudi stock exchange. The minimum subscription amount is set at SAR 1,000 (100 units), at the price of SAR 10...

The Government of Bangladesh will raise BDT 80 billion through Sukuk in December 2020, according to the Bank and Financial Institutions Division under the country’s Ministry of Finance. This is the inaugural Sukuk issuance in the Government of Bangladesh’s history, which will be used to meet its widening budget deficit. According to local media reports, the five-year Sukuk issuance will comprise of two tranches, with the yield yet to be fixed, and will be open to Islamic banks to invest.Meanwhile, sources from commercial banks in Bangladesh have stated that the is...

The delayed effects of a credit boom that increased demand for consumer goods and services, together with a fall in the TRY against the USD, led to Turkey’s consumer price inflation rising to 14.0% year-on-year (YoY) in November 2020, from 11.9% YoY in October 2020. Data from the Turkish Statistical Institute marked November’s inflation rate as the highest level recorded over the last fifteen months.  According to the Central Bank, food prices rose 21% YoY in  November 20...

Data from Indonesia’s Central Statistics Agency (BPS) showed that Indonesia’s gross domestic product contracted 3.49% year-on-year (YoY) in the third quarter of 2020, an improvement from the 5.32% contraction recorded in the second quarter of this year. Despite this leading the country into an economic recession, recent improvements in macro-economic indicators lead the authorities to believe that the worst is over.  Indonesian President, Joko Widodo,  noted that an improvement in the import of raw materials an...

On the 4th of December 2020, Fitch Ratings (Fitch) downgraded to BBB+, Malaysia’s Long-Term Foreign Currency Issuer Default Rating (IDR) from A+, with the Outlook improving to Stable from Negative. Key factors leading to the downgrade include a weakening in the country’s credit metrics as Malaysia’s economy has been severely impacted by the COVID-19 crisis, despite relief measures swiftly being put in place by the authorities. According to Fitch, Malaysia’s fiscal burden has increased as a result of these relief measures. In addition, political unce...

Determinants of Dealing with Islamic Banks Operating in Palestine from the Viewpoint of Traditional Bank ClientsIslamic banking, Murabaha, Participation