Negative Real Rates Have Reached the Shores of Many Countries Across the Globe.Our Islamic finance industry is not immune. The question is, how many sovereigns have issued local denominated Sukuk for which the yield has been strongly negative throughout 2021? It is interesting that not much is there about linking negative real yield to Sukuk and inflation.First, let us point out that real yield is the annualized return that a benchmark government bond/Sukuk facility generates once inflation is taken into account. Here is what I found about the Kingdom of Saudi Arabia (K...

Bank Islam Malaysia (BIMB) reported a net profit of MYR 101.6 million (USD 24.1 million) in the third quarter of 2021 (3Q 2021), down from MYR 102.2 million (USD 24.3 million) in the corresponding period in 2020 due to increased tax expenses. Why it Matters? The Bank had an improved profit before Zakat and taxation of MYR 152.8 million (USD 36.4 million) in comparison to the earlier year, an increase of 11.3% year-on-year (YoY). This was attributed mainly to lower net allowance for impairment on financing and advances which reduce...

The shareholders of Oman International Development and Investment Company (Ominvest), an Oman-based investment holding company, have approved the issuance of Unsecured Subordinated Perpetual Sukuk Al Mudarabah Certificates (Sukuk) worth OMR 52 million (USD 135.1 million), at the company’s Extraordinary General Meeting, held on the 17th of November 2021.  Why it Matters?  The Sukuk will be issued by Ominvest and exchanged for treasury shares held by Jabreen International Developmen...

Qatar-based Masraf Al Rayan (Masraf) has completed the legal merger of Al Khalij Commercial Bank (Al Khaliji) effective 30th of November 2021. The two banks are now considered one legal entity headquartered in Lusail City, Qatar, under the name Masraf Al Rayan. Following the merger, Al Khaliji stands delisted from the Qatar Stock Exchange (QSE).  Why it Matters? The completion of the legal merger has created one of the largest Shariah-compliant lenders...

Saturna Capital, an investment firm based in the United States of America (USA), has announced the launch of the Saturna Al-Kawthar Global Focused Equity UCITS ETF (AMAL), an actively managed Exchange-Traded Fund (ETF), via the HANetf platform. HANetf is an independent ETF investment platform based in the United Kingdom. AMAL is listed on the London Stock Exchange, Borsa Italiana and Germany’s XETRA.  Why it Matters? Hector McNeil, co-Chief Executive Officer of HANetf stated that active ETFs are the...

Canada-headquartered Manulife Financial Corporation (Manulife) has launched two Shariah-compliant exchange-traded funds (ETFs) to the iWatch Platform for its workplace savings plans. The two funds include the Manulife SP Funds S&P 500 Shariah Industry Exclusions ETF and the Manulife SP Funds Dow Jones Sukuk ETF.  Why it Matters? According to an article on the Manulife website, these new ETFs will enable Muslim investors to build a diverse and Shariah-compliant portfolio with broad equity and fixed income exposure, and allow them to align their retirem...

In early November 2021, Jersey Finance launched a study entitled ‘Global Attitudes to Islamic Wealth Management’ compiling attitudes of Muslim High Net Worth Individuals (HNWIs), family offices and wealth managers towards the Islamic finance wealth management market. The report, which surveyed over 2,000 respondents across key markets in the United Kingdom (UK; London), Asia (Kuala Lumpur), the Gulf Cooperation Council (GCC), and Africa (South Africa), highlighted attitudes to private wealth, fiduc...

Malaysia-based CIMB Bank is issuing MYR 15 billion (USD 3.5 billion) worth of Islamic bonds under the Sukuk Wakalah programme. This was stated in a filing with the Securities Commission Malaysia (SC) by CIMB Bank.  Why it Matters?  RAM Rating Services (RAM Ratings) has assigned CIMB Bank a financial institution rating of AAA/Stable/P1. On CIMB Bank's proposed MYR 15 billion (USD 3.5 billion) Sukuk Wakalah programme, RAM Ratings had assigned an AAA/Stable rating for the scheme’s senior Sukuk. Details &nb...

Despite the obstacles created by the COVID-19 pandemic, the Malaysian Takaful sector had substantial growth in the Family Takaful and General Takaful businesses in the first half of 2021 (1H 2021) compared to the same period in 2020. Why it Matters?  According to Mohamed Sabri Ramli, Deputy Chairman, at the Malaysian Takaful Association (MTA), the positive upward trend is due to a number of factors, including the Takaful industry's strength, an increase in Malaysians' understanding of and confidence in Takaful, attractive and flexible product o...

Senegal National Groundnut Company (SONACOS) has received a EUR 40 million (USD 45.3 million) loan from the International Islamic Trade Finance Corporation (ITFC) towards part financing the country’s 2021-2022 groundnut campaign.  Why it Matters?  This facility is dedicated to the Senegalese agriculture sector's post-COVID-19 recovery and will cover around 45% of SONACOS' financing needs to secure the purchase of 150,000 tons of groundnuts from farmers for processing into groundnut oil, animal feed and edible groundnuts. This is&...