Speaking at an online forum organised by the Vietnamese Ministry of Foreign Affairs and Ministry of Agriculture and Rural Development, Vice President of the Vietnam Chamber of Commerce and Industry, Hoang Quang Phung stated that with a Muslim population of nearly 2 billion globally, expenditure on Halal food is expected to increase to USD 15 trillion by 2050 from USD 1.4 trillion in 2020, presenting significant opportunities for growth. Information from a media report states that the participation of Vietnamese businesses in the global Halal food market has been limited,...

Fitch Ratings (Fitch) expects asset drawdowns and increased external support to be vital for Oman’s continued smooth funding as it predicts Oman’s economy to fall behind the fiscal consolidation targets set out in the Government of Oman’s new medium-term fiscal plan (MTFP). According to Fitch, Oman’s fiscal deficit is expected to double to 18% of the gross domestic product (GDP) in this fiscal year reducing to 7% in 2024, which is lower than the MTPF expectation of a 2% deficit in 2024. Fitch suggests that the differen...

The Bank of England (BOE) has announced the launch of a new Shariah-compliant deposit facility which is set for the first quarter of 2021. Called the Alternative Liquidity Facility (ALF) and structured as a Wakalah fund-based facility, deposits from Islamic banks will be backed by a fund of high-quality Shariah-compliant assets, the returns of which will be given back to depositors in place of interest. Given the long-standing challenges faced by Islamic banks in efficient liquidity management, Executive Director-Markets at the BOE, Andrew Hauser,...

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has said that it is currently working on a standard for online Islamic crowdfunding. According to Senior Manager - Standards Implementation and Strategic Developments at AAOIFI, Dr Rizwan Malik, the aim of the standard is to create a comprehensive framework with detailed governance guidelines on areas pertaining to cybersecurity and their related disclosure requirements.  The standard has been discussed at a working group, with a preliminary study already approved by the AAOIFI...

According to the State of the Global Islamic Economy (SGIE) Report 2020/2021, total investment in the global Halal economy reached USD 11.8 billion in 2019/2020, down 13% year-on-year due to the impact of COVID-19. Investments were dominated by Indonesia with a total of 38 halal investment transactions (25% of all deals recorded), followed by Malaysia with 31 transactions.  Rafiuddin Shikoh, CEO and Managing Director of Dinar Standard, highlighted that Indonesia and Malaysia’s dominance of global Halal investments indicate the strong growth...

Saudi Arabia’s Cabinet has approved a new Saudi Central Bank Law, which includes changing the name of the Saudi Arabian Monetary Authority (SAMA) to the Saudi Central Bank, with direct reporting to the Saudi King, Salman bin Abdulaziz Al-Saud, according to local media reports.  The new legislation stipulates that the Saudi Central Bank shall replace SAMA in all its rights and obligations, while retaining its financial and administrative independence, in line with international best practices for central banks. However, the Saudi Central Bank will continue...

Turkey’s gross domestic product (GDP) increased by 6.7% year-on-year (YoY) in the third quarter of 2020 (3Q 2020) compared to the same quarter of the previous year, according to data published by the Turkey Statistical Institute (TurkStat) on the 30th of November 2020.  Prior to this, Turkey’s GDP expanded by 4.4% YoY in the first quarter of 2020 and contracted by 9.9% YoY in the second quarter of 2020 (2Q 2020), due to the impact on activity when lockdowns were imposed to curb the spread of COVID-19, according to local media reports. ...

RAM Ratings (RAM) has reaffirmed the AAA/Stable rating of Sarawak Energy Berhad’s (SEB) MYR 15 billion Sukuk Musyarakah Programme (2011/2036).  The reaffirmation reflects RAM’s expectation that the credit metrics of SEB will remain strong in the medium term, supported by robust business fundamentals amid the maturing Sarawak Corridor of Renewable Energy. In addition, the support given by the Sarawak state government and the Federal Government to SEB is also a factor in the reaffirmation. According to RAM, SEB is wholly owned by the Sar...

Financial stability risks are harder to detect without data on climate-related financial risks, which has made this a top priority for regulatorsA realisation of physical risks could accelerate transition risk, with an amplifying effect on climate-related financial stability risks, slower growth, and reduced financing growthFSB sees cross-border exposures as a force for global financial stability, but for recipient countries of cross-border financing it could amplify climate-related risks The Great Financial Crisis of 2007-2009 was a transformative event in the financial sector. Some...

S&P Global Ratings (S&P) has affirmed the ‘B/B’ long- and short-term issuer credit ratings of Turkey-based Albaraka Turk Katilim Bankasi, also known as Albaraka Turk Participation Bank (Albaraka Turk), while maintaining the outlook on the long-term rating as Negative. The rating agency also affirmed the bank’s issue ratings at ‘CCC’ and assessed its stand-alone credit profile at ‘B-‘, according to local media reports.  The rating affirmation balances the expected weakening of the Alb...