Shibli Faraz, Pakistan's Minister of Science and Technology, announced on the 24th of December 2021 that the government has approved the Pakistan Halal Authority's (PHA) business rules and Pakistan Halal Certification. Why it Matters?  Faraz said that it is a milestone achieved by the PHA and adding that the Halal industry was rapidly expanding, with the potential to generate revenue worth a trillion dollars on a global scale. Faraz elaborated that policymakers and the private sector are both paying attention to the Halal industry right now and...

The Zakat Fund of the Ministry of Endowments (Awqaf) and Islamic Affairs in Qatar, has provided QAR 16.5 million (USD 4.5 million) aid in November 2021 for 800 eligible families in the country, according to local media reports.  Why it Matters?  According to Fayez Moazi Al Shammari, Head of the Zakat Fund’s Department, the Fund disburses aid on behalf of the people of Qatar to those deserving of it, after carrying out social and field research for those applying, via the men and women branches of the Department. In addition, Al S...

United Arab Emirates (UAE)-based Ajman Bank, a Shariah-compliant bank, signed a memorandum of understanding (MoU) with the Emirates Development Bank (EDB) to provide credit guarantee and co-lending to small and medium-sized enterprises (SMEs) in the UAE. Why it Matters?  The MoU with Ajman Bank is part of EDB's commitment to help the UAE's SME ecosystem and industrial sector grow and contribute more to the country's gross domestic product (GDP). The EDB-Ajman Bank MoU focuses on providing strategic finance solutions to SMEs, which are deemed as...

According to a bourse filing with Tadawul dated 26th of December 2021, Saudi-based Al Moammar Information Systems Company (MIS) has announced the latest developments for the signing of a Memorandum of Understanding (MoU) with Al Rajhi Capital to launch a special Shariah-compliant investment fund worth SAR 1 billion (USD 266.3 million).  Why it Matters?  According to the latest developments, both parties have agreed to proceed with obtaining approvals and licences and take the required steps to launch a Shariah-compl...

Responsible finance has gained significant momentum during the past year; many of the big next steps from regulators are already clear enough to take actionResponsible finance and environmental, social, and governance (ESG) are not a singular process where compliance is the goal, they are constantly evolving; investors and financial institutions should prepare to adapt, not to meet a single standardNo-one has all the data needed for responsible finance; collecting and understanding the data requires collaborative approaches and starting with imperfect data and iterating over time. Thi...

The Islamic Development Bank (IsDB), a strategic partner of several countries in the African continent announced the decision to provide financing for road projects in five countries in Africa for its 2021 closing. Why it Matters? On the 18th of December 2021, the IsDB’s Board of Directors approved a sum of USD 371 million for financing of the road projects. At its 343rd meeting chaired by H E Dr Muhammad Sulaiman Al Jasser, President and Chairman of the Board of Directors of IsDB, the Board of Executive...

Malaysia-based Cenergi SEA (Cenergi), which is the sustainable energy subsidiary of Khazanah Nasional, has issued its inaugural MYR 210 million (USD 50 million) Senior Islamic Medium-Term Notes, based on the Shariah principle of Wakalah Bi Al-Istithmar. The ASEAN SRI Green Senior Sukuk Wakalah (Sukuk) issuance consists of a five-year MYR 85 million (USD 20.2 million) due in 2026 with a 5.3% profit rate per year as well as a seven-year MYR 125 million (USD 29.8 million) Sukuk due in 2028 with a 5.55% profit rate per...

Malaysia-based agri-business FGV Holdings (FGV) has lodged with the Securities Commission Malaysia (SC) for the proposed establishment of an Islamic Medium-Term Notes (Sukuk Murabahah) Programme of up to MYR 500 million (USD 119 million) in nominal value on the 20th of December 2021. The Sukuk, which is based on the Shariah principle of Murabahah via a Tawarruq arrangement, comes under the SC’s Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework, according to a Bursa Malay...

For its Digital Financing Initiative (DFI) pilot project, SME Corporation Malaysia (SME Corp) has named Malaysia-based microLEAP, a Shariah-compliant peer-to-peer (P2P) financing platform, as the financial intermediary. Why it Matters?  Via this collaboration, SME Corp will disburse MYR 10 million (USD 2.3 million) in Shariah-compliant funding to micro, small and medium firms (MSMEs) through an online platform that offers a variety of Shariah-compliant financial options, according to microLEAP.  It said that despite the fact...

On the 21st of December 2021, Amilbahar Mawallil, a Member of Parliament in the Philippines filed a bill for the Bangsamoro Region's micro and small-scale businesses to obtain microfinancing with no collateral and under shared risk. The initiative known as Bangsamoro Microfinancing Program (BMP) is slated to set the region apart from present loan practices. Why it Matters?  BMP falls under Parliament Bill 164, or the Bangsamoro Microfinancing Act of 2021 which seeks...