Indonesia’s Financial Services Authority (OJK) has stated that Waqf Sukuk can be an attractive alternative investment option for Indonesian investors in the future, according to local media reports.  According to Hoesen, Executive Head of the Capital Market at OJK, who was speaking at the Shariah Investment Week 2020, the development of Waqf Sukuk is attractive to investors as it combines both business and spiritual aspects.  Hoesen added that the development of Waqf Sukuk and Waqf assets is an important component of helping Indonesia achieve its target of be...

The Reserve Bank of Australia, the country’s central bank, plans to license Australia’s first Islamic bank in early 2021, according to media reports.  The Islamic Bank of Australia (IBA), touted to be Australia’s first 100% digital Islamic bank, will offer Shariah-compliant home and small and medium enterprise financing. Media reported that the lender will be fully digital apart from its headquarters in Sydney.  According to Dean Gillespie, Chief Executive Officer of IBA, the lender provides primarily cloud-focused services, enabling low costs. Gillespie added tha...

Malaysia’s Ministry of Finance and Bank Negara Malaysia both remain positive on the country’s anticipated economic recovery in 2021, expected to range between 6.5% to 7.5%. Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz stated that given the commercialisation of a COVID-19 vaccine in the first half of 2021, the global economy will perform better. Malaysia, being a country with an open economy, is expected to benefit from these positive effects as the global economy expands.  Speaking at a medi...

According to AmBank Research Chief Economist and Economic Action Council member, Anthony Dass, sustainable investing is set to become a part of the new normal as companies gain increasing awareness of evolving stakeholder expectations regarding Environmental, Social and Governance (ESG) Initiatives.  In relation to this, Dass noted that the Government of Malaysia’s sustainability initiatives outlined in the Budget 2021 were a step in the right direction to push the private sector, in particular th...

Data from the annual State of the Global Islamic Economy Report 2020-21 (the Report), shows an anticipated 8.0% year-on-year (YoY) growth in consumer spending across core Islamic economy sectors (excluding Muslim-friendly travel) in 2020/21. According to the Report, consumer spending is forecast to rise at a 3.1% Compound Annual Growth Rate over 2018/19 through 2023/24 to reach a market size of USD 2.4 trillion at the end of the forecast period, from USD 2.02 trillion in 2018/19.  This rebound follows an expected 8.1% YoY...

Malaysian Rating Corporation (MARC) has affirmed Lebuhraya DUKE Fasa 3’s (DUKE 3) MYR 3.64 billion Sukuk Wakalah rating of AA-IS, while concurrently revising the rating outlook to Stable from Negative.  According to MARC, DUKE 3 is a toll concessionaire that is undertaking the Setiawangsa-Pantai Expressway (SPE) project under a concession agreement with the Government of Malaysia due to end on the 5th of August 2069.  The rating affirmation is based on DUKE’s structured Sukuk repayment profile, which provides the toll conce...

The Hub Power Company (Hubco), Pakistan’s largest independent power producer, has announced the issuance of PKR 6 billion worth of Sukuk to finance its capital expenditures, according to a company statement released on the 13th of November 2020.  The five-year Sukuk was issued by Hubco’s wholly-owned subsidiary, Hub Power Holdings Limited with Arif Habib Limited appointed as arranger and Meezan Bank Limited as Shariah advisor, according to local media reports.  The Sukuk, which was subscribed by financial institutions, investment com...

Indonesian Vice President Ma’ruf Amin has encouraged the development of research in the Halal industry to enable the country to expand competitive Halal products, according to local media reports.  Speaking at the International Halal Conference webinar held recently, Amin stated that the success of the Halal industry in Indonesia is dependent on the ability to produce useful products with a high commercial value, adding that strong research was essential to help the country compete in the global Halal market.   Amin noted that one strategic move to develop th...

Fitch Ratings (Fitch) has stated that lower business volumes, reduced profit rates, as well as higher financing impairment charges will continue to affect the performance of Islamic banks in Kuwait.  Although sector asset quality will continue to weaken, Fitch notes that the full impact will be overshadowed by financing deferral initiatives and regulatory flexibility for the recognition of impairments, as permitted by the Government of Malaysia. According to Fitch, prolonged economic ...

Data from Bank Negara Malaysia (BNM) revealed that Malaysia’s gross domestic product (GDP) for the June-September 2020 quarter (3Q 2020) contracted 2.7% year-on-year (YoY), indicating a turnaround from the 17.1% YoY decline recorded in the second quarter of 2020.  The 3Q 2020 results came on the back of improvements across the manufacturing, services, mining, and constructions sectors, according to BNM Governor, Nor Shamsiah Yunus. Accordingly, Yunus noted that BNM’s full-year 2020 GDP assumption remained unchanged, sinc...