As highlighted by Fitch Ratings (Fitch), prospects for Indonesia's Islamic banking sector are predicted to be positive on the back of steady economic recovery and continuing regulatory forbearance, as highlighted by Fitch Ratings (Fitch).Why it Matters? Among the main catalysts for growth in the medium-term are favourable government policies and regulations, increased availability of Islamic liquidity-management products, digitalisation increase and the organic growth of the newly formed Bank Syariah Indonesia. Nonetheless, some challenges remain, including the limited product offerings by...

Egypt's Financial Regulatory Authority (FRA) is in the process of developing new financing products, including micro and macro digital finance products, sustainable green microfinance products and financing tools, in a bid to keep up with global developments and provide the best international practices and new types of investment funds to achieve the sustainable development goals (SGDs), as highlighted by the Deputy Chairperson of the FRA, Islam Azzam in a recent interview.Why it Matters?The FRA is studying the feasibility of Islamic microfinance and a product to serve the agricultural sec...

Morocco-based Group Holmarcom (Holmarcom) announced the launch of the country’s first Islamic insurance company, Takafulia Assurance, as per a press release dated 10th of February 2022.Why it Matters?The insurance institution represents a step forward in advancing Islamic or participative banking that remains relatively new and underdeveloped. Takafulia Assurance intends to gradually develop insurance services covering individuals, professionals, and businesses through packages targeting market segments seeking Shariah-compliant insurance products. According to Lakbira Sbeih, Deputy...

Kuwait Finance House (KFH) has recorded net profit amounting to KWD 243 million (USD 803 million) in 2021, a 64% increase from 2020, approximating pre-pandemic levels. Why it Matters?KFH has a strong capital base with a Market Capitalisation (MC) of KWD 7.6 billion (USD 25.13 billion). Abdulwahab Essa Al-Rushood, the Acting Group Chief Executive Officer (CEO) of Kuwait Finance House (KFH), stated that the group had taken steps in utilising digitalisation as KFH continued to provide its digital banking services despite the Covid19 crisis, assisted by the Central Bank of Kuwait’s...

Bahrain’s banking sector is currently focused on digital transformation as the sector continues to evolve, according to Jean Christophe Durand, CEO of the National Bank of Bahrain (NBB).Why it Matters?Bahrain unveiled an economic growth plan in 2021 aiming to raise USD 30 billion of investments to rebound from the impact of the pandemic on the economy and to balance its budget by 2024. Through the pandemic, the country’s banks have benefited from a relatively advanced digital infrastructure, with NBB making digitisation initiatives central to its ambition to become a leading fo...

The Takaful sector in Indonesia continues to see strong growth, recording a 9% share of the country’s overall insurance market in the first 11 months of 2021 (11M21) on the back of an increase in life Shariah products by 41% year-on-year (YoY) as highlighted by Fitch Ratings (Fitch) in its report “Indonesia Takaful Dashboard: 2022”.Why it Matters?The Takaful sector is expected to benefit from rising capitalisation in the long run as more insurers in Indonesia choose Takaful over conventional insurance. Other factors which are expected to contribute to its long-term growth...

Saudi-based Arabian Drilling Company (ADC) has successfully raised SAR 2 billion (USD 533 million) domestically through its first Sukuk issuance.Why it Matters?ADC was able to increase the size of its issuance from SAR 1.6 billion (USD 426 Million) due to high interest from several investor groups for the transaction, making a final order booked of more than SAR 5.5 billion (USD 1.46 Billion). According to Ali Alghamdi, Managing Director of ADC, the energy market in its current state is ideal for growth opportunities and the issuance was designed to increase awareness of ADC’s operat...

The Qatar Stock Exchange (QSE) aims to introduce more Islamic investment products as the country aims to become a global Sukuk hub on the back of government facilitation of initiatives, the spread of Islamic banking products and the increase in education about such products, according to Rashid Ali Al-Mansoori, Board Member and Former Chief Executive Officer (CEO) of the QSE.Why it Matters?Plans for the establishment of an Environmental, Social and Governance (ESG) index are in progress with the assistance of Morgan Stanley Capital Investment (MSCI) and are expected soon for roll out. With...

Thailand’s Ministry of Commerce will implement plans for the export of chicken and other Halal food to Saudi Arabia. The decision comes about after the resumption of full diplomatic relations and the exchange of ambassadors between the two countries in the first meeting in 33 years. The meeting took place on the 25th of January 2022 during a visit by Thailand’s Prime Minister Prayut Chan-o-cha to Riyadh.Why it matters?Trade between Thailand and Saudi Arabia was valued at USD 7.30 billion in 2021, made up of imports from Saudi Arabia, totaling USD 5.53 billion in contrast to USD...

Boost Holdings (Boost), Axiata Group Berhad’s (Axiata) fintech arm, is offering micro, small and medium enterprises (MSMEs) financing of up to MYR 100,000 (USD 23,900) through a Shariah-compliant financing scheme named Capital Plus.Why it Matters?Capital Plus aims to assist MSMEs in sustaining their business through the various challenges posed by the pandemic, particularly maintaining a steady cashflow, according to Boost’s Chief Executive Officer (CEO), Anthony Sheyantha Abeykoon. A three-month moratorium is thus incorporated into the scheme along with a maximum tenure of 15...