Ambassador Asiwaju Busari Shaamsuddeen Akande, an Islamic finance and business management expert, has called on the federal Government of Nigeria to use the Sukuk innovation to finance all aspects of socioeconomic development in the country. Why it Matters?  According to Akande, the current size of the Islamic Finance market ranges from USD 2.5 trillion to USD 2.7 trillion, and it is likely to reach USD 3.4 trillion by the end of 2023.  Details   Akande observed that the Government can also finance th...

The Islamic finance industry is expected to grow between 10% and 12% in 2021 and 2022 said Dr Mohamed Damak, Senior Director Financial Services and Global Head of Islamic Finance, S&P Global Ratings. Damak said that this would be on the back of global economic recovery as well as strong Sukuk issuance. Why it Matters?  According to Damak, the speed of policy adjustments by major central banks and stable Sukuk issuances will determine the growth of the global Isla...

Ayman Amin Sejiny, Chief Executive Officer (CEO) of the Islamic Corporation for the Development of the Private Sector (ICD) has stated that the time is ideal to promote the spread of Islamic banking, following the emergence of the world from the recession due to the COVID-19 pandemic. Sejiny was speaking at a session titled Islamic Finance: Forging New Links on Day 1 at the Global Business Forum ASEAN (GBF ASEAN) in Dubai, United Arab Emirates (UAE) on the 8th of December 2021.  Why...

RAM Rating Services (RAM Ratings) has reaffirmed the ratings of Islamic securities issued by the funding conduits of Khazanah Nasional (Khazanah) – the investment arm of the Government of Malaysia – as follows: the AAA(s)/Stable ratings of Rantau Abang Capital’s MYR 7.0 billion (USD 1.7 billion) Islamic Medium-Term Notes (MTN) Sukuk Musyarakah Programme (2006/2041), Danga Capital’s MYR 20.0 billion (USD 4.7 billion) Multi-Currency Islamic Securities Programme (2009/2044), Ihsan Sukuk’s MYR 1.0 billion&nbs...

The International Islamic Liquidity Management Corporation (IILM) has seen year-to-date cumulative issuances of a total of USD 14.1 billion across 36 US dollar-denominated short-term Sukuk series, which is the highest to date since its first issuance in 2013. It recently completed the auction for the reissuance of an aggregate USD 1.1 billion short-term “A-1” rated Sukuk across three tenors of one, three, and six months. They were priced as follows: i) 0.17% for USD 450 million for the one-month tenor, ii) 0...

With the Islamic finance industry and use of cryptocurrencies increasingly gaining popularity, Australia-based Hejaz Financial Services (Hejaz) has provided an explanation on the debate of whether cryptocurrencies belong in the Shariah-approved finance category.  Why it Matters? Shariah principles include rules to be followed by the Islamic finance sector with regard to the permitted ways of making, spending and investing money which include the regulation that, in respect of currency, transactions sh...

According to Datuk Syed Zaid Albar, Chairman of the Securities Commission of Malaysia (SC), the Islamic capital market (ICM) still has "tremendous potential" to widen its reach to the broader stakeholder economy via sustainable initiatives. Why it Matters?  Albar noted that with growing desires to invest responsibly, efforts will be made to improve investor access to Shariah-compliant businesses that practise environmental, social and corporate governance (ESG). This aims to urge firms and other key stakeholders to evaluate their impact on...

Fitch Ratings (Fitch) has reported a neutral outlook for Gulf Cooperation Council (GCC) Islamic banks for 2022 due to modest economic recovery and increase in oil prices. Why it Matters? Fitch predicts pressure on earnings to continue in the GCC Islamic banks in 2022. Moreover, asset quality is not expected to deteriorate sharply following the end of forbearance measures. Capital buffers currently in place are anticipated to remain unchanged as well as liquidity, adequate to cover risks. However, negative outlooks were predicted mainly for Kuwait and Qatar. An increase in depende...

Indonesia’s airline Garuda Indonesia (Garuda) has announced that it will continue to postpone the periodic distribution amount under its USD 500 million Global Sukuk Limited Trust Certificates due at the end of 2021, according to an information disclosure on the Indonesia Stock Exchange (IDX) dated 3rd of December 2021.   Why it Matters? According to Prasetio, Director of Finance and Risk Management at Garuda, the postponement of the global Sukuk coupon pa...

United Arab Emirates (UAE)-based Abu Dhabi Islamic Bank (ADIB) has partnered with Drive Ninja, a UAE-based financial technology (fintech) company, to introduce a free-of-charge platform named ‘Turbo’ for the auto industry, as a part of its digitalisation strategy.  Why it Matters? According to a company press release dated 6th of December 2021, Philip King, Global Head of Retail Banking of ADIB, stated that Turbo partners with key automobile dealers and service providers to cater to consum...