Mortgage Takaful business consisting of death cover for the borrower, multi-risk residential property cover and savings products will be inaugurated in Morocco with the first branches to be opened shortly. Why it Matters? The three initial categories of Takaful products will be used to test the exchange and cooperation between Takaful companies, the insurance regulator - Supervisory Authority of Insurance and Social Welfare (ACAPS) and the Higher Council of Ulema. Other insurance products will be introduced later and is to include, work accident...

Malaysia retained its top ranking for the second consecutive year in the Islamic Finance Development Indicator (IFDI) 2021 reflecting the strength of the industry in spite of the obstacles faced on account of the COVID-19 pandemic. Why it Matters? Datuk Seri Tengku Zafrul Abdul Aziz, the Minister of Finance in Malaysia said an important strategy implemented by Malaysian Islamic banks since 2017 was the Value-Based Intermediation (VBI) followed by the publication of the related papers which resulted in VBI trans...

First guidance released for comment from the Basel Committee outlines how banks should prepare to integrate climate risksBasel Committee guidance covers issues related to governance, internal controls, risk management, monitoring & reporting, and scenario analysis / stress testingExpectations are high, particularly for larger banks, but every bank will be expected to manage climate risks that will escalate over time A recent study by Oxford University and 2 Degrees Investing Initiative has found that just within the oil & gas, coal, automotive, and power & energy sect...

Due to reduced net Wakalah fee income, Syarikat Takaful Malaysia Keluarga (Takaful Malaysia) reported a 12% decline in net profit to MYR 72.6 million (USD 17.2 million) for the third quarter ended the 30th of September 2021 (3Q 2021), from MYR 82.6 million (USD 19.6 million) a year before. No dividend was declared for the quarter. Why it Matters?  According to Takaful Malaysia, as the recovery of economic activity takes time, job security remains heightened, and consumers are more cautious with their spending d...

On the 22nd of November 2021, Brunei-based, Bank Islam Brunei Darussalam (BIBD), announced that Hjh Noraini Hj Sulaiman will replace Mubashar Khokhar as the Chief Executive Officer and Acting Managing Director from the 1st of December 2021. Why it Matters?  Hjh Noraini, who is at present the Deputy Managing Director at BIBD, will be the first woman to take the role since the bank’s inception in 2005. In 2020, BIBD’s total assets stood at USD 9.7 billion. Details   Hjh Noraini will succeed...

The Meat Industry Association (MIA) of New Zealand says Halal-certified red meat exports grew 13% year-on-year during the 2020-2021 season, with the majority of buyers being from non-Muslim markets. China was New Zealand’s largest export market, accounting for 74% of total red meat exports, with the United States of America represented coming in second. Why it Matters? According to an analysis by the MIA, New Zealand exported 471,072 tonnes of Halal product during the year ended September 3...

In a statement issued to the Muscat Stock Exchange, Ahmed al Musalmi, Chief Executive Officer of Sohar International Bank, stated that the Bank has sent a letter of intent to the Board of Directors of Oman-based Bank Nizwa initiating discussions on a merger between the two entities. Why it Matters? Mergers within Oman’s banking sector are not common. Bank Nizwa reported total assets valued at OMR 1.4 billion (USD 3.6 billion) as at end September 2021, up 22% year-on-year (YoY), while the Bank’s gross financin...

In September 2021, Egypt’s Islamic banking volume was EGP 407 billion (USD 25.9 billion), up 14.5% from September 2020. Why it Matters? According to the Egyptian Association for Islamic finance (EIFA), Islamic banking presently accounts for around 5% of the Egyptian banking market. Mohamed El-Beltagy, President at the EIFA, noted that Egyptian banks have 245 Islamic branches, accounting for 5.5% of the total number of branches in the country’s banking system and serving more than 3 million customers. El-Beltagy also stated that the market needs more products...

Pakistan-based Meezan Bank and the Industrial and Commercial Bank of China (Ltd) Pakistan (ICBC Pakistan), have recently signed a Tahawwut Master Agreement (TMA) in a virtual ceremony, according to a statement dated 23rd of November 2021. The TMA was signed by Irfan Siddiqui, Founding President and Chief Executive Officer (CEO) of Meezan Bank and Chen Yuncheng, CEO and General Manager of ICBC Pakistan, among senior management of both organisations.  Why it Matters?  The TMA will enable Meezan&nb...

Malaysian government-backed Malaysia Venture Capital Management (MAVCAP) and Ficus Capital, announced on the 22nd of November 2021 the launch of the Ficus SEA Fund. This MYR 60 million (USD 14.33 million) fund is a Malaysia-based Shariah-compliant venture capital fund with an emphasis on investment in the Association of Southeast Asian Nations (ASEAN) region. Why it Matters?  The fund is to invest in early-stage tech start-ups with favourable growth potential and support start-ups and entrepreneurs in Malaysia and Southeast Asia. Details   MAVCA...