S&P Global Ratings (S&P Global) has stated that Malaysia’s third quarter 2020 economic performance will play a vital role in deciding 2020’s overall economic growth. According to Asia-Pacific Economist at S&P Global, Vishrut Rana, normalisation in economic activity and household spending, together with a reduced number of new COVID-19 cases would support economic growth in the country. Rana added that good progress in the containment of COVID-19 as well as the developments in movement restriction, along with normalisation of activity have positione...

Qatar Fintech Hub (QFTH), co-founded by Qatar Development Bank (QDB), is planning to include fintech firms specializing in Islamic finance, the regulatory system and small and medium-sized enterprises (SMEs), under the first round of its fintech Incubator and Accelerator Programmes (IAP), according to a senior official of QFTH. According to Abdulaziz bin Nasser al-Khalifa, the Chief Executive Officer of QDB, the main focus of the first phase of the IAP will be on payment technology whilst still being open to other areas. The first round of the IAP will concentrate on payments...

Bangladesh-based Mercantile Bank (MB) has launched TAQWA, a Shariah-based Islamic Banking service, with the Chairman of MB, Morshed Alam (Member of Parliament), inaugurating the service on the 29th of June 2020 in a virtual ceremony.  TAQWA services will be initially offered via MB’s Islamic banking window at its ten branches across the country, along with its conventional banking services.  According to Alam, the new Islamic banking facility will meet special client demands, and will simultaneously ensure all types of client services in additi...

According to a statement issued to the Bourse, Saudi Automotive Services Company (SASCO) said that it has finalised a Shariah-compliant credit facility worth SAR 250 million with Arab National Bank. In addition to letters of guarantee at SAR 75 million, SASCO noted that the credit facility includes a long-term loan, with a seven-year tenure worth SAR 150 million as well as a twelve-month, short-term facility worth SAR 100 million. SASCO stated that the funds will be used to finance its expansions, boost its core operations, build new fuel stations, as well as towards meeting work...

Zurich Insurance Indonesia (ZII), a subsidiary of the Zurich Insurance Group (ZIG), is to be converted into a Shariah general insurance company set to be operational by 2021, subject to approval by regulators. The new Shariah-compliant company will operate under the name of Zurich General Takaful Indonesia (ZGTI). At present, ZII offers customers life insurance solutions via Zurich Topas Life (ZTL) and general insurance through Asuransi Adira Dinamika (Adira Insurance). Adira Insurance was taken over by ZIG in an 80% acquisition in November 2019. Once the conversion is...

South-African-based Eskom Holdings SOC (Eskom), a 100% state-owned electricity utility, is planning to issue Sukuk worth ZAR 1 billion (USD 58 million), as it seeks to diversify borrowing sources with the aim of reducing its cost of financing.  According to Eskom’s Spokesman, Sikonathi Mantshantsha, the company has appointed a lead arranger to work on the timeline for the proposed Sukuk issuance.  Eskom has about ZAR 450 billion in debt with no current plans to seek additional Government funding. Accordingly, Eskom has assessed t...

Tenaga Nasional Berhad (TNB), the largest electricity utility in Malaysia, is planning to raise up to MYR 12 billion through two Sukuk programmes, to fund investments, future capital expenditure, general corporate requirements, as well as its working capital needs. In addition, the proceeds from these Sukuk programmes are expected to be utilized towards refinancing any existing financing facilities of TNB or its subsidiaries and to defray any fees and expenses for the two Sukuk programmes, said TNB. The Sukuk Wakalah programmes which were lodged w...

Steady business and operational growth, combined with customer adoption across the nation, have allowed Islamic banks and Islamic banking windows to acquire a 15.1% stake in Pakistan's overall banking industry assets, as of end March 2020. Pakistan’s Islamic banking sector consists of 5 full-fledged Islamic banks and Islamic banking windows of 17 conventional banks, which operate through a network of 3,250 branches across the nation.   Asset values of Islamic banks and Islamic banking windows increased...

Dubai Islamic Bank (DIB) has listed a USD 300 million Sukuk on the Nasdaq Dubai on the 30th of June 2020. According to a press release, this issuance was a tap on the USD 1 billion Sukuk due 2026 listed by DIB on 16th of June 2020. On the 23rd of June 2020, DIB sold this USD 300 million Sukuk with maturity in January 2026. The funds raised will go towards supporting DIB’s customers and businesses as economies start to re-build from the impacts of COVID-19.  DIB set a margin of return at 240 basis points over mid-swaps for th...

Malaysia Digital Economy Corporation (MDEC) has launched an e-commerce campaign as a part of the National Economic Recovery Plan (PENJANA), focusing on Micro and Small and Medium-sized Enterprises (MSMEs). Ending on the 30th of September 2020, the campaign aims to motivate local businesses to embrace e-commerce to widen their market reach. According to MDEC, the Government of Malaysia has set aside MYR 70 million for the programme under PENJANA to assist local businesses in sustaining their operations and enhancing their productivity gradually.&nb...