Bahrain-based GFH Financial Group (GFH) has announced the launching of a BHD 37.6 million (USD 100 million) Sukuk Fund following a signing with Credit Suisse for the provision of financing and fund administration services.Why it Matters?The Shariah-compliant managed fund holds a portfolio of sovereign, quasi sovereign and corporate sukuk and sukuk-related securities, spanning a number of countries and issuers. According to Salem Patel, Head of Asset Management at GFH, the fund will capitalise on post-pandemic economic growth and recovery. Returns to the fund are to be generated via active...

The Saudi Central Bank (SAMA) has announced the government’s approval of the licensing of a third digital bank, D360 Bank on the 15th of February 2022, with a capital of SAR 1.65 billion (USD 440 million).Why it Matters?The spread of finance technology witnessed in the Middle East has enabled growth for digital banks. Saudi Arabia saw a push towards the adoption of digital banking and electronic payments by businesses and consumers instigated by the pandemic thus reversing the initial relatively slow adoption. Digital banks in the country have been formed in line with the objectives...

The International Islamic Trade Finance Corporation (ITFC) and the government of Egypt have signed an EGP 23.6 billion (USD 1.5 billion) agreement to fund and support the import of petroleum and supply commodities, as reported by ITFC’s Chief Executive Officer (CEO) Hani Sonbol on the 15th of February 2022.Why it Matters? The long-standing partnership between the Egyptian government and the ITFC had resulted in various projects contributing to supporting the sectors of trade and industry, small and medium enterprises, and women's empowerment projects, in addition to supporting the co...

Al Salam Bank (Al Salam) has recorded BHD 21.4 million (USD 56.7 million) in net profit attributable to shareholders in 2021, representing a growth of 134% from 2020 when earnings stood at BHD 9.1 million (USD 24.2 million), as reported in a press release dated 13th of February 2022.Why it Matters?The recorded increase comes on the back of higher returns from Al Salam’s core business activities in comparison to 2020. Shaikh Khalid bin Mustahail Al Mashani, Al Salam Chairman, attributed the performance to the successful implementation of growth initiatives as well as organic growth an...

Swiss Fintech100 company CREALOGIX and Malaysia’s Sedania As-Salam Capital Sdn Bhd (SASC) pledged to continue their efforts to fortify digital adoptions for Malaysian Financial Institutions through a series of joint enhanced digital solutions in aims to support post-pandemic recovery.Why it Matters?In line with its 'Digital Solutions for All' campaign, SASC has worked with CREALOGIX on various programs to jointly create conventional and Islamic digital banking deliverables. The alliance between the two companies leverages Sedania’s API capabilities and CREALOGIX’s provisi...

The Coalition for a Sustainable and Inclusive Recovery of the Private Sector (the coalition) reported its commitment to over USD 5.55 billion of financing to small and medium-sized enterprises (MSMEs) in Africa between mid-2020 and the end of 2021, in an announcement made on the 16th of February 2022.Why it Matters?MSMEs play a critical role in the economy of Sub-Saharan Africa’s economy, making up 90% of trade and over half the jobs in the region. Yet, limited access to finance plays a major hurdle to growth topped by negative the impacts of the health crisis. The financing committed exceeded...

Turkish banks have received authorisation to issue Dollar-denominated Sukuk as announced by Turkey’s Treasury and Finance Ministry on the 15th of February 2022, marking the country’s return to the global bond markets in 2022.Why it Matters?Turkey’s last bond sale was in September 2021, preceding a policy of interest rates cuts. Refinitiv data reports that a USD 2 billion Eurobond and a USD 1.1 billion domestic bond are due to for payment by the country on the 21st of February 2022 and 25th of February 2022, respectively. In 2021, the country’s Treasury obtained fina...

The Indonesian Ministry of Religious Affairs (the Ministry) is urging its staff in regional offices for the massive dissemination of information on Zakat empowerment assistance programmes to the public in efforts to consolidate Zakat and prompt more Zakat payers.Why it Matters?The Ministry emphasised the need for solidifying Zakat, beyond literacy theories, as a tool that would benefit the public and the local economy. Among the key factors behind Zakat programmes is raising awareness among the public regarding Zakat and accordingly the lack of dissemination of information would defeat the pur...

The Central Bank of Iran (CBI) is expected to launch a Central Bank Digital Currency (CBDC) with no exact dates for commencement revealed, as stated by Mehran Moharamian, the Vice Governor for Information Technology Affairs at the CBI in January 2022.Why it Matters?Efforts by the CBI to digitalise its currency began in 2018 when it instructed its executive arm, the Informatics Services Corporation (ISC), to build a CBDC. Through the CBI’s plan to pilot the CBDC, Iranians are expected to be able to facilitate seamless local and international trades via digital currencies. Iran was one of the fi...

The Takaful sector in Malaysia continues to see strong growth fuelled by a 46.7% jump in family takaful in the first half of 2021 (H121) followed by a 13.5% growth in general takaful, according to Fitch Ratings (Fitch) through its “Malaysia Takaful Dashboard: 2022” report.Why it Matters? The growth in the sector was motivated by public awareness of takaful products, supportive government initiatives, lifting of Covid-19 movement restrictions and economic recovery. The industry is expected to continue improving its penetration rates, business models and technological capabilitie...