On the 5th of December 2022, Indonesia’s Minister of Finance, Sri Mulyani Indrawati, revealed in a press conference in Balikpapan (East Kalimantan), that the State Shariah Securities (SBSN) issued to finance various projects in East Kalimantan Province has reached a value of IDR 6.48 trillion (USD 450.32 million) from 2014 to 2022.Why it Matters?The projects financed by the SBSN provide the infrastructure to support the establishment of Indonesia’s new capital city to be located in Kalimantan, securing Indonesia’s public assets. Projects include the construction of campus...

Bank Negara Malaysia (BNM), the Central Bank of Malaysia, has issued a discussion paper that outlines the proposed framework for licensing new Digital Insurers and Takaful Operators (DITOs) on the 4th of January 2022.Why it Matters?The outlined framework intends to take a balanced approach focusing on encouraging more significant digital innovation in the insurance and takaful sector while promoting financial stability and protecting consumer interests  According to BNM Governor Tan Sri Nor Shamsiah Mohd Yunus, it will attract new digital players who can tackle critical protectio...

Centralised Shariah Advisory Authorities in Islamic Finance (CSAAs) convened in the Third Roundtable Meeting held virtually on the 21st of December 2021. The meeting was hosted by Bank Negara Malaysia (BNM) and chaired by Tan Sri Dr Mohd Daud Bakar, Chairman of the BNM Shariah Advisory Council. It saw participation from more than 50 delegates from 16 countries and three standard-setting bodies.Why it Matters? The roundtable meeting aims to further enhance connectivity and foster mutual respect among Shariah boards at the central bank and national levels. The main themes discussed were on p...

In a cabinet meeting on the 4th of January 2022, Egypt’s Prime Minister Mostafa Madbouly and Minister of Finance Mohamed Maait followed the procedures to issue the country’s first sovereign Sukuk offering. During the meeting, Maait stressed the benefits of financing through Sukuk and reviewed the growth and developments of Islamic banking activity globally and specifically in Egypt.Why it Matters?                               ...

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has issued a few final standards by the AAOIFI Accounting Board (AAB). The standards released include the Financial Accounting Standard (FAS) 1 (Revised 2021) “General Presentation and Disclosures in the Financial Statements”, FAS 39 “Financial Reporting for Zakah,” and FAS 40 “Financial Reporting for Islamic Finance Windows”. AAOIFI has also announced the issuance of the exposure draft of Governance Standard for Syndicated Financing (exposure draft) by the AAOIFI Governance...

Saudi Arabia’s Al Rajhi Bank has announced the issuance of its SAR-denominated Tier 1 Sukuk through a private placement. The bank said in a bourse filing dated 3rd of January 2022 that the amount and terms of offer of the Sukuk will be determined subject to market conditions.Why it Matters?The Sukuk may only be offered and sold in Saudi Arabia as it is limited to institutional or qualified clients, in accordance with Article 8 of the Rules of the Offer of Securities and Continuing Obligations. The minimum subscription amount and par value are set at SAR 1 million (USD 26.6 milli...

An official document released by the External Relations Department of the State Bank of Pakistan (SBP) on the 3rd of January 2022 has announced the introduction of a licensing and regulatory framework to boost the country's digital banking and payments solutions. Under this framework, the SBP may grant two types of digital banking licences; a digital retail bank (DRB) license, and a complete digital bank (DFB) license. Why it Matters?The framework is the first step towards the introduction of completely digital banks that offer full banking services through digital mean...

Malaysian telecommunication group Maxis Bhd (Maxis) announced that its wholly-owned subsidiary broadband services provider, Maxis Broadband Sdn Bhd (MBSN) has issued three series of Islamic Medium Term Notes (Sukuk Murabahah) amounting to MYR 1.1 billion (USD 263.6 million) in nominal value pursuant to its Unrated Sukuk Murabahah Programme. The issuance included the 11th series  amounting to MYR 150 million (USD 35.9 million) in nominal value, the 12th series worth MYR 600 million (USD 143.7 million) in nominal value and the 13th series of ...

Saudi Islamic banks’ total financing saw a 19% annual increase prompted by Murabaha and Tawarruq contracts as of the 30th of September 2021. According to a monthly report published by the Saudi Central Bank (SAMA), the total financing provided by Saudi Islamic banks, up to the same date, had reached SAR 1.67 trillion (USD 444 billion).  Why it Matters? Murabaha financing accounted for a 45% share of the total value of financing provided by Saudi Islamic ba...

The Chittagong Stock Exchange (CSE), Bangladesh’s port-city bourse, has updated its list of Shariah-compliant securities, known as the CSE Shariah Index (CSI). The adjustment will take effect on the 13th of January 2022, according to a CSE statement. Why it Matters? The CSE is one of the two stock exchanges in the country, the other being the Dhaka Stock Exchange (DSE). Both country's stock exchanges have their own Shariah indexes due to the growing number of Shariah-compliant investors, particularly institutional funds. Concerne...