Fitch Ratings (Fitch) has assigned Jaiz Bank, a Nigeria-based non-interest banking (NIB; Islamic banking) institution, a Long-Term Issuer Default Rating (IDR) of ‘B-’ with a Stable Outlook, as well as a Viability Rating (VR) of ‘b-’.  Ratings Rationale Jaiz Bank’s IDRs are driven by its standalone creditworthiness, as indicated by its ‘b-’ VR. The ratings reflect the concentration of the bank’s operations within Nigeria’s challenging operating environment, high credit conc...

Saudi Real Estate Refinance Company (SRC) has concluded the issuance of an SAR 2 billion (USD 533 million) Sukuk to assist lenders in the housing market, with the goal of increasing home ownership by making it more affordable. Why it Matters?  Mortgage originators will be able to offer reduced mortgage rates and assist the housing market with the newly acquired funds, making borrowing more accessible to purchasers. Details   Fabrice Susini, Chief Executive Officer at SRC, which is wholly owned by the Public Investment Fund (PIF),...

Datuk Lim Ban Hong, Deputy Minister of the Ministry of International Trade and Industry (MITI), has said that the Government of Malaysia has allocated MYR 12.6 million (USD 3.0 million) for the development of the national Halal industry for 2022. Why it Matters?  The development projects under the 12th Malaysia Plan (12MP), to boost the Halal industry, include the following: human capital competency and Halal sectoral knowledge development projects, Home Grown Halal Champion - Sourcing Partnership project,&nbs...

Ma'ruf Amin, Vice President of Indonesia, has urged all economic and Islamic finance players to speed up the development of the Islamic financial technology (fintech) industry in Indonesia. Why it Matters?  Amin elaborated that the expansion of Shariah fintech must be aided by the strengthening of the economic and Shariah finance ecosystems. According to Indonesia’s Financial Services Authority (OJK), only seven Shariah fintech service providers existed in the country by October 2...

Nigeria’s Sterling Bank stated that the Central Bank of Nigeria (CBN) has approved-in-principle a solitary licence for its non-interest banking business, which would be known as Alternative Bank Limited. This was mentioned by Sterling Bank in a notification to Nigeria Exchange Limited (NGX). Why it Matters? Sterling Bank noted that Alternative Bank Limited is set to form partnerships, connecting individuals and businesses via the use of technology to optimise corporate processes, while also...

According to Adnan Opeyemi Salaudeen, Research Assistant at International Islamic University Malaysia (IIUM), Nigerians could be able to access micro-credit through Islamic microfinance banks in the country which would be significant in tackling poverty and also be utilised as a tool for economic empowerment.  Why it Matters? Explaining the role of Islamic microfinance institutions, Salaudeen said these institutions have the ability to provide micro-savings, increase financial inclusion as well as provide&...

According to Fitch Ratings (Fitch), the Government of Luxembourg's continuing promotion of the country as a Western hub for Islamic finance and as an international financial centre, would sustain its Islamic Mutual Funds Industry's (MFI) strong growth momentum in the near to medium term. Why it Matters?  Fitch noted that Luxembourg leads the European Islamic fund industry, with 30 Shariah-compliant funds (mostly mutual funds) as of the end of the third quarter of 2021 (3Q 2021). Ireland, on the other hand, has 16 Islamic funds, includ...

According to industry experts speaking at the inaugural Global Business Forum ASEAN on the 11th of December 2021, held at the Expo 2020 Dubai in the United Arab Emirates (UAE), the Halal industry is a high-potential path for companies in the UAE, the Gulf Cooperation Council (GCC) and the ASEAN to boost trade and build cross-border partnerships. Why it Matters?  Despite the market's downturn as a result of the COVID-19 pandemic, the experts expressed hope for the Halal sector, which is worth an estimated USD 4 trillion globally. The industry is...

According to a filing on the Saudi Stock Exchange (Tadawul) on the 8th of December 2021, Saudi Arabia-based Bank Aljazira has completed the offer of its SAR-denominated Tier 2 Sukuk via private placement in Saudi Arabia. The value of the offer was SAR 2 billion (USD 533.1 million).  Why it Matters?  The 2,000 Sukuk were offered at a value of SAR 1 million (USD 266,573.8) each, with a return of six-month Saudi Arabian Interbank Offered Rate (SAIBOR) +155 basis points. The maturity period of the Sukuk is 10...

The Islamic Development Bank (IsDB), the United Nations World Food Program (WFP) and The Power of Nutrition (TPON) have partnered to create and implement the First 1,000 Days Initiative and the Multi-Donor Trust Fund (the Fund).  Why it Matters? Nutrition programmes in member countries of the Organisation of Islamic Cooperation (OIC) with a high degree of malnutrition, will benefit from increased funding from the Fund. The goal of the Fund is to mobilise resources to the value of USD 200 million through a variety of...