Saudi-based Riyad Bank has stated that it plans for the issuance of US Dollar-Denominated Tier 1 Capital Sukuk with an undetermined value, according to a filing on the Saudi Stock Exchange (Tadawul).Why it Matters?The purpose of the offer is for the improvement of Riyad Bank’s capital base and fulfilment of its financial and strategic needs. The issuance is expected to take place via a special purpose vehicle (SPV) and by way of an offer to eligible investors in Saudi Arabia and abroad.Details The offer will be subject to approval from regulatory authorities as has been approved...

In a press release dated 5th of February 2022, Kuwait Finance House (KFH) group announced that its volume traded in the Sukuk market surpassed USD 16 billion in 2021, adding that the group had acquired a significant share of the secondary market trading in Sukuk with some transactions exceeding USD 200 million.Why it Matters?The high volume of Sukuk trading comes as a result of several factors, including sovereign issuances in the Gulf Cooperation Council (GCC) countries in order to bridge the gap of the budget deficit caused by the drop in oil prices and the low-profit rates which had mad...

The government of Indonesia is aiming to raise IDR 11 trillion (USD 764 million) through the auction of six series of Government Shariah Securities (SBSN) or Government Sukuk. The series consist of one Shariah Treasury Note (SPNS) and five series of Project-Based Sukuk (PBS).Why it Matters? The auction is the third auction by the government and is expected to be held on the 8th of February 2022. The funds raised from the Sukuk are to be used to meet the financing target fixed in Indonesia’s 2022 State Budget with the assets backing the six Sukuk series being projects or activities in...

Saudi-based Emaar the Economic City Co. (Emaar EC) announced that it has inked a rescheduling agreement with the Saudi British Bank (SABB) leading to the revision of terms of its SAR 976.25 million (USD 260.2 million) long-term Tawarruq financing facility.Why it Matters?  The revised terms of the facility include a grace period and a repayment in semi-annual instalments from June 2023 until December 2029 (previously September 2014 to September 2021). The rescheduling is in aims to facilitate Emaar EC's cash flow position and enhance its ability to move forward with its growth plans.Detail...

Saudi Arabia’s Bank AlJazira (BAJ) has recorded a profit surge of over SAR 1 billion (USD 266 million) in 2021. This represents a 2,876% increase in profit from 2020’s gains which had stood at SAR 33.8 million (USD 9.01 million).Why it Matters?The increase in profit was motivated by a fall in net impairment charge for financing and other financial assets to SAR 951 million (USD 253.5 million) and an increase of 8% in operating income. The operating income was increased on the back of a rise in net financing and investment income, net gains on derecognition of financial assets m...

Bank Negara Malaysia (BNM) has an Exposure Draft open for comment through the end of March 2022 about how Malaysian banks and insurers will need to prepare for climate risksModeled on the Basel principles for climate risk management & supervision, these show how quickly Islamic markets regulators may move on climate-related risks in the financial sectorFinancial institutions should expect a lengthy, complex but rewarding process to transform their risk assessment and management systems to cover climate risks and to build a culture that can respond to changes in how climate-related ris...

The General Council for Islamic Banks and Financial Institutions (CIBAFI) has issued the CIBAFI Special Report on the Global Islamic Funds: Trends, Challenges, and Opportunities on the 27th of January 2022 in aims to reflect the recent developments of the global Islamic funds market and highlight the key trends and opportunities that will shape its future.Why it Matters?Since 2012, the global Islamic funds market has witnessed continuous growth, seeing a rise of more than 300 percent in Assets under Management (AUM).  Showcasing results from a survey conducted by CIBAFI on Islamic fun...

Bahrain-based Al Salam Bank (Al Salam) has agreed to acquire the consumer banking portfolio of investment firm Ithmaar Holding, according to a bourse filing to the Dubai Financial Market (DFM) on the 28th of January 2022. The acquisition includes the consumer banking business of Ithmaar Bank, Ithmaar Holding’s ownership stake in both Bank of Bahrain and Kuwait, and the global Takaful group, Solidarity Group Holding.Why it Matters?The transaction aligns with the Central Bank of Bahrain’s (CBB) objectives to develop the Islamic finance industry. It aims to position Al Salam Bank...

Dubai Islamic Bank (DIB) announced on the 1st of February 2022 that it had joined the digital blockchain platform UAE Trade Connect (UTC) as an official member in line with the bank’s efforts to enhance mitigation of fraud risk and transition towards a fully digitised trade finance ecosystem safely.Why it Matters?Through distributed ledger technology, UTC reduces the risk of fraudulent transactions, assisting DIB and other United Arab Emirates (UAE) banks with centralised, organised, and immutable data that enhances trust, transparency, and privacy between parties. The platform also...

The Saudi Food and Drug Authority (SFDA) plans to make Halal certification obligatory for local and imported food products containing meat, poultry and all similar products. The suggested enforcement date of the obligation is the 1st of July 2022 as prescribed in the updated draft regulation.Why it Matters? As per the new obligation, the SFDA will require a Halal certificate to be issued for any food product that is raw or in a component of any other food item consisting of gelatine, collagen, animal rennet, animal fats and oils. The following will also still be applicable for food product...