The Central Bank of the Islamic Republic of Iran (CBI) and the Ministry of Industries, Mining and Trade have agreed to allow Iranian companies to use cryptocurrencies in settlements with partners abroad. The decision comes about after the first meeting of a joint Foreign Exchange Working Group (FXWG) between the Ministry and CBI leading to the approval of several measures to facilitate Iran’s foreign trade, including the use of cryptocurrency.Why it Matters?  The cryptocurrencies space in Iran is still unregulated to a large extent. Cryptocurrencies and blockchain systems will assist Iran...

The debut sustainable Sukuk issued by Saudi National Bank (SNB) has received high investor interest, enabling a USD 750 million sale after demand reached USD 3.2 billion on the 12th of January 2022. According to a bank document, the five-year Sukuk tightened from an initial guidance price of around 110 basis points (bps) over U.S. Treasuries (UST) to launch at 85 bps over UST.Why it Matters?Environmental, social and governance (ESG) related debt instruments like sustainable Sukuk or green bonds are forecasted to grow further in the Gulf region as governments are keen on meeting the swellin...

Abu Dhabi Islamic Bank (ADIB) has raised more than AED 587 million (USD 160 Million) via the ADIB Global Sukuk Fund.Why it Matters? The funds raised by ADIB demonstrate the strong market demand for Shariah-compliant investment products. Among the key features that attracted investors to the fund was its daily liquidity, investment grade average rating, low volatility, relatively short duration, and the option for regular attractive quarterly income distribution, as stated by ADIB Global Head of Wholesale Banking Groups, Michael Gregory Davis.Details The fund is fashioned to make avai...

Malaysia-based KPJ Healthcare Berhad (KPJ) announced the establishment of a MYR 3 billion (USD 718.4 million) Sukuk Wakalah programme allowing the group to issue Islamic medium-term notes (Sukuk Wakalah) and Sustainability Sukuk Wakalah periodically. The group stated that its wholly-owned subsidiary, Point Zone (M) Sdn Bhd, has lodged the programme with the Securities Commission Malaysia on the 12th of January 2022.Why it Matters?The issuance aims to finance KPJ’s expansion activities, working capital requirements and general corporate purposes. All issuances shall follow the su...

Lucid Group Inc (Lucid), the American electric vehicle manufacturer, is still in discussions with the Saudi Arabian government over the location of its new factory anticipated for establishment in the country.Why it Matters?In April 2019, Saudi Arabia’s Public Investment Fund (PIF) injected USD 1 billion into Lucid, resulting in a 67% stake in the firm. Lucid’s Chairman Andrew Liveris stated that since the company is now successfully producing and selling cars in the United States (US), attention has now shifted to its operations in the Middle East and specifically, the new fac...

The General Administration of Endowments under Qatar’s Ministry of Awqaf and Islamic Affairs (AWQAFM) announced on the 10th of January 2022 that it plans to launch several categories of new endowments in 2022 to support the nation’s various societal needs.Why it Matters?The Waqaf Endowment, listed under the area of Righteousness and Piety, is the first category set for launch with the aim to sustain a number of areas that sustainably need support. Proceeds from the project will be redirected into a different endowment project yearly, giving way to various projects to be impleme...

The Role of Islamic Microfinance in Promoting Financial and Social Inclusion  

On the 12th of January 2022, Saudi-based firms, the Arab Petroleum Investments Corporation (APICORP), an energy-focused multilateral development financial institution and the Islamic Development Bank (IsDB) established a private sector-focused infrastructure financing initiative worth USD 1 billion, the Infra Initiative.  Why it Matters?Funds from the joint initiative are aimed at financing strategic utility projects that support national development strategies and contribute to the human development and economic growth of the member countries of APICORP and IsDB. The Infra Initi...

On the 11th of January 2022, H E Sultan bin Salim al Habsi, Oman’s Minister of Finance, and Chairman of Oman’s Capital Market Authority (CMA) issued Decision No 171/2021 which establishes the Supreme Shariah Supervisory Board (SSSB). The SSSB’s Articles of Association was also issued in accordance with Article 5 of the Takaful Insurance Law proclaimed by the Royal Decree 11/2016.  Why it Matters? The establishment of the SSSB comes after recent advancements in the Takaful insurance market in O...

Saudi Central Bank (SAMA) has made a recent update to the laws related to the separation of the funds of participants in the financing process and the funds of a crowdfunding facility.  Why it Matters?  The changes made will support the formation of new fintech companies emerging in the country.  Details  The new rules have redefined the beneficiary to include all commercial entities registered in Saudi Arabia seeking to receive financing via the debt crowdfunding platform.  The definition of aggregate accounts was also added to...