Bahrain-based GFH Financial Group (GFH) has acquired a portfolio of medical offices in the United States of America (USA) in a Shariah-compliant deal valued at USD 200 million.  Why it Matters?  The deal is aimed at expanding GFH’s real estate portfolio in the USA, and brings the value of GFH Group’s USA healthcare portfolio to over USD 400 million. The medical offices portfolio is made up of 11 assets with over 400,000 square feet of space, spread across seven states in the USA including North Carolina, South Carolina, Georgia,...

Indonesia-based industrial gas company, Aneka Gas Industri (AGI) plans to raise a total of IDR 300 billion (USD 20.8 million) in bonds and Sukuk Ijarah, according to a statement issued by the Indonesia Central Securities Depository (KSEI) dated 30th of November 2021. The upcoming securities have been registered in the KSEI under the names Sustainable Bonds II AGI Phase IV Year 2021 and Sustainable Sukuk Ijarah II AGI Phase IV Year 2021 (Sukuk Ijarah), worth IDR 150 billion each (USD 10.4 million).  Why it Matters? Majori...

Riyadh-based Saudi British Bank (SABB) has launched a Shariah-compliant supply chain finance tool. This roll out is in line with the Saudi Vision 2030 programme, which aims to enhance financing for small and medium-sized enterprises (SMEs).  Why it Matters?  This tool is noted as a system based around buyer risk, in which the seller takes on the cost of discounting. This allows suppliers to get funding based on the creditworthiness of their customers without having to use their own credit lines. Majed Najm...

Bank Indonesia is considering issuing a central bank digital currency (CBDC) in order to discourage the use of cryptocurrencies. Why it Matters?  According to Juda Agung, an Assistant Governor of Bank Indonesia, Bank Indonesia wishes to issue a digital rupiah to be used as legal tender and assumes that people would find the CBDC to be more credible. In Indonesia, crypto assets are traded along with commodity futures and are regulated by the Ministry of Trade. Relatedly, the Indonesian Ulema Council (M...

Ramesh Kana, Chairperson of UN Global Compact Network Malaysia & Brunei (UNGCMYB), has said that there is a big opportunity to develop more blue Sukuk in Asia to support the growth of the blue economy.  Why it Matters?  According to Kana, the development of blue Sukuk, which includes finance initiatives that conserve ocean resources and facilitate sustainable development in coastal regions, will in addition to helping ensure the protection and sustainable use of oceans via investment in the blue economy, also assist to bu...

The National Mortgage Corporation of Malaysia, Cagamas, has announced its total issuances of the equivalent of MYR 4 billion (USD 947.9 million). The issue comprises MYR 345 million (USD 81.8 million) three-month Islamic Commercial Papers (ICPs), MYR 400 million (USD 94.8 million) three-month Commercial Papers (CCPs), MYR 100 million (USD 23.7 million) multi-tenured Association of Southeast Asian Nations (ASEAN) Sustainability Bonds, MYR 380 million (USD 90.0 million) multi-tenured Conventional Medium-Term Notes (CMTNs)...

Shaukat Tarin, Advisor to the Prime Minister on Finance and Revenue in Pakistan, who was speaking at the virtual 10th Islamic Finance Expo & Conference assured the support of the Government of Pakistan for expanding and fortifying the Islamic finance industry.   Why it Matters? Tarin stressed that Islamic finance, growing at a fast pace in the global financial system, has been identified globally as an effective method of development financing, recognised in non-Muslim countries as well. With features such as the sharing of risks a...

Datuk Tan Tian Meng, Secretary General of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) stated that with the upward trend in healthy eating habits and the need for safe-to-consume food, non-Muslim consumers increasingly demand Halal-certified products. Why it Matters? Tan said with the growing demand for Halal products, Malaysia’s Halal sector is slated to add considerably to the country’s Gross Domestic Product (GDP) with its contribution being MYR 9.7 billion (USD 2.3 billion) in 2020 alone. Tan noted at the &lsquo...

Speaking at a press conference after launching the Sungai Langat Trail in Bangi, Malaysia on the 30th of November 2021, Datuk Seri Tuan Ibrahim Tuan Man, Minister of Environment and Water of Malaysia, said that the planned domestic carbon trading market, a complex mechanism to incentivise carbon emission reductions, will be Shariah-compliant.  Why it Matters?  The Minister stated that a seminar was held on how to make carbon trading Shariah-compliant and that talks are ongoing with...

At a meeting held on the 30th of November 2021, Egypt’s Financial Regulatory Authority (FRA) approved a draft amendment to certain provisions of the rules that regulate bonds, securitisation bonds and Sukuk in the Capital Market Law No. 95 of 1992. Four new financing tools were also added into the capital market via this amendment, namely, social bonds, sustainable development bonds, environmental social and governance bonds, and gender equality and women’s empowerment bonds. Why it Matters?  Mohamed Omran, Chairp...