Saudi-based Islamic Bank, Al Rajhi Bank has announced that it has ended negotiations and discontinued the merger plan between its wholly-owned subsidiary, Al Rajhi Banking and Investment Corporation (Malaysia) Berhad (Al Rajhi Malaysia) and Malaysian Industrial Development Finance (MIDF).  According to media reports based on a statement issued to Tadawul on the 8th of November 2020, Al Rajhi Bank stated that the termination of negotiations was a result of unmet agreements between the two parties. Talks for the possible merger were initially anno...

Fitch Ratings (Fitch) has revised Saudi Arabia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to Negative from Stable, while affirming the IDR at ‘A’. The revision of Outlook reflects weakening of Saudi Arabia’s fiscal and external balance sheets, exacerbated by the COVID-19 pandemic and plummeting oil prices.  Fitch expects the Saudi budget shortfall to widen to 12.8% of gross domestic product (GDP) from 4.5% in 2019, reflecting a 33% decline in oil revenue, a 5% drop in non-oil revenue, and a 1% increase in spending compared to last yea...

Qatari businesses are looking to explore cooperation on Islamic banking with the Philippines, particularly regarding collaboration in various ventures such as fintech, furniture manufacturing, agro industry, renewable energy and industrial parks development in Mindanao, according to local media reports.  According to Greg Loayon, Chairman of the Philippine Business Council Qatar, who was speaking at the Mindanao-wide Ecozone Summit held recently, there are several potential opportunities for synergy between Qatar and the Philippines. Highlighting previous t...

The expected progress in global trade, coupled with improvements in consumer and business confidence, will see Malaysia’s gross domestic product (GDP) grow between 6.5% and 7.5% in 2021, according to the Ministry of Finance (MoF). The MoF’s forecast is in line with that of Bank Negara Malaysia (BNM), which is between 5.5% and 8.0% for 2021.  According to the MoF’s Economic Outlook 2021 report, the growth is anticipated to be supported by the pace of improvement that has picked up in the third quarter of 2020, parti...

Revising expectations, Fitch Solutions Country and Industry Research reported in a note on the 6th of November 2020, that it now expects Indonesia’s gross domestic product (GDP) for 2021 to grow 6.1%. This is an improvement from the previous GDP forecast for 2021 of 3.3%. The report highlighted however that recovery was expected to be bumpy, given the on-going effects of the COVID-19 pandemic, as Indonesia’s economy comes out of a 1.3% contraction in 2020, anticipated by Fitch Solutions.  Indonesia slipped into a recession in the third quarter of 2020 (3Q 20...

The Great Financial Crisis that began in 2007 was the beginning of the era of systemic crisesEscalating risks relating to climate change and biodiversity issues will become the ‘new normal’ rather than an exceptionFinancial institutions are not ready yet to measure their risks or respond but regulators are moving quickly so financial institutions should start to act The Great Financial Crisis was a watershed moment in ways that are only becoming clear in hindsight. For one, it may have been the first in a series of systemic crises that will force financial institutions to...

Indonesian-based financial services provider Permodalan Nasional Madani (PNM) has issued debt securities worth IDR 200 billion under its Sukuk Mudharabah IV Year 2020 Phase 1 Series A (Sukuk), to help fund the company’s business activities, according to local media reports.  The Sukuk, which is offered with a trading unit of IDR 20 billion and floating profit sharing, has a tenure of 3 years, and will be issued without a public offering. PNM started distributing the Sukuk electronically on the 27th of October, 2020, with the paymen...

Qatar’s economy is anticipated to rebound in both domestic and foreign demand according to FocusEconomics, a global provider of economic analysis and forecasts. Researchers at FocusEconomics forecast a 2.9% increase in Qatar’s gross domestic product (GDP) in 2021 and a 3.6% increase in 2022, as reported by media sources.   In the third quarter of 2020, Qatar’s economy was seen to have recovered, with the non-energy private sector Purchasing Managers' Index reported to be significantly higher compared to the second quarter of 2020 (2Q 2020), as restr...

Turkey’s gross domestic product (GDP) is anticipated to contract by 2.5% in 2020, according to the European Commission’s (EC) Autumn 2020 Economic Forecast report released recently, as reported by local media.  The latest GDP forecast is an upgrade of EC’s May 2020 forecast of a 5.4% economic decline for 2020. Although activity rebounded quickly over June to September 2020, EC noted that vulnerabilities and withdrawals of policy stimulus will weaken the strength of economic recovery.  Meanwhile, Turkey’s GDP is forecast to grow by 3.9%...

Standard and Poor’s (S&P) has retained Egypt’s credit rating of domestic and hard currencies at level B, with a Stable Outlook, according to local media reports.  The rating, which has been maintained for the second time in six months in 2020 (last rated in April 2020), is a sign of continued confidence of credit rating institutions in Egypt’s economic strength and ability to cope with the COVID-19 pandemic, according to Egyptian Minister of Finance, Mohamed Maait.  Maait stated that the rating reflects Egypt’s balanced economic performance c...