The Central Bank of the United Arab Emirates (CBUAE) and the Saudi Central Bank (SAMA) have released a joint statement to mark the launch of the ‘Aber Project’, a combined initiative to develop a blockchain-based digital currency.  According to the statement, the project seeks to look into the feasibility of issuing digital currency for use between the two banks with the aim of creating a cross-border payment system that will reduce costs and transfer time between banks in both the Gulf...

Results of a survey conducted by Siemens Malaysia indicate that half of the country’s small and medium enterprises (SMEs) have been unable to adjust to the new normal imposed by the Movement Control Order (MCO) during COVID-19. Referring to those firms that have embraced digitalization, Adam Yee, Chief Executive Officer, Siemens Malaysia, noted that COVID-19 had pushed some SMEs to adopt digital business practices to ease the effects of the pandemic on business operations and to ensure continuity, growth and survival.&nbs...

Oman’s Capital Market Authority (CMA) has announced that the sultanate’s inaugural sovereign Sukuk issuance for retailers, valued at OMR 25 million, has been fully subscribed, according to local media reports. Furthermore, the issuance has been listed on the Sukuk market of the Muscat Securities Market until its maturity and will be available for trading.  The Series 5 Oman Sovereign Sukuk is made up of 25 million trust certificates worth OMR 25 million, set to mature on the 24th of November 2022. The CMA stated that the offer was fully subscribed by...

S&P Global Ratings (S&P) has reaffirmed Qatar Islamic Bank’s (QIB) Issuer Credit Rating at ‘A-/A-2’, with a Stable Outlook, according to local media reports.  The ratings reflect S&P’s view of QIB’s strong corporate banking franchise, its relatively conservative management, as well as the bank’s position as the largest Islamic bank in Qatar.  Meanwhile, QIB’s Stable Outlook reflects S&P’s view that the bank’s financial profile will remain mostly stable over the ensuing 12 – 24 mon...

Egypt-based financial services provider, Sarwa Capital has successfully closed its inaugural Sukuk issuance of EGP 2.5 billion on the 25th of November 2020, according to local media reports The Shariah-compliant Mudarabah Sukuk, which was issued by Sarwa Capital’s subsidiary, Sarwa Sukuk Company, has a seven-year tenure and received a credit rating of A- by Middle East Ratings and Investors Service (MERIS). Proceeds of the Sukuk issuance will be used to further expand Sarwa Capital’s subsidiary Contact Cre...

The Islamic banking industry has great potential to improve financial inclusion in Pakistan, according to Seema Kamil, Deputy Governor of the State Bank of Pakistan (SBP).  Addressing the inaugural session of the Islamic Finance Expo & Conference held on the 26th of November 2020, Kamil stated that the SBP fully supported the Islamic banking industry in Pakistan and added that the industry could enhance the outreach of Shariah-compliant financial services. Local media reported that the SBP was making strides towards achieving targets se...

Speaking at the Indonesia Islamic Festival Webinar event on the 26th of November 2020, Luky Alfirman, Director General of Financing and Risk Management of the Ministry of Finance, highlighted the potential of the Islamic economy in helping Indonesia move towards positive territory in the last quarter of 2020.  Given that the Government of Indonesia is targeting to improve the national economy in the short term, the master plan for Islamic economics and finance should work in favour of this improvement.  According to...

Being a finance and technology hub, experts believe London in the United Kingdom (UK), is well set to direct substantial growth in the Islamic finance space, supported by Fintech-led innovation.  Speaking to Arab News, Youness Abidou, Chief Executive Officer of Shariah-compliant property investment firm Nester, stated that despite the yet unknown impacts of Brexit and COVID-19, London is perfectly set to take advantage of the exponential growth anticipated within the Islamic finance industry over the next decade. &nbs...

Data from the United Arab Emirates (UAE)-based Emirates Islamic via its latest Islamic Banking Index report, revealed that the share of Islamic banking assets to total assets in the UAE grew to 18.8% in June 2020 from 17.3% in 2013. Meanwhile, penetration of Islamic financing has further increased with 60% of survey respondents having at least one Shariah-compliant product, compared to a rate of 55% in 2018.  According to local media reports, the data points to the increased popularity of Islamic b...

Islamic banking, Shariah