The Islamic finance industry should boost digitisation of its services and transform processes to enhance efficiency, lower intermediation cost and raise outreach to a larger segment of society, according to Dr Reza Baqir, Governor of the State Bank of Pakistan (SBP), who was speaking at the 15th Islamic Finance Services Board (IFSB) Summit 2021 hosted by the Saudi Central Bank in Jeddah, Saudi Arabia.   Why it Matters?  Digitalisation of Islamic financial services offers opportunities for a more incl...

Nigeria’s Securities Exchange Commission (SEC) is working towards achieving a contribution of 25% of the overall market capitalisation from the Islamic capital market by 2025, including 15% from outstanding Sukuk bond issuances. Why it Matters? Lamido Yuguda, Director General of the SEC speaking at the 2021 African International Conference on Islamic Finance in Abuja, Nigeria, said that the SEC encourages corporate entities to support the Islamic capital market by providing an environment conducive to investment.  Ibrahim Boyi, Execut...

By the conclusion of the second quarter of 2021 (2Q 2021), Saudi Arabia’s total Shariah-compliant financing exceeded USD 430 billion and the total Shariah-compliant deposits reached USD 433 billion, said Fahad Al Mubarak, Governor of the Saudi Central Bank (SAMA).  Why it Matters?  The Governor cited a report from the Islamic Financial Services Board (IFSB) for the year 2021 as evidence of the Islamic financial industry's yearly growth of more than 10%, pushing Islamic finance to USD 2.7 trillion in 2020 from USD 2.4 trillion in...

According to Fitch Ratings (Fitch), the Government of Bangladesh's recent policy push to develop Islamic finance in the country might accelerate the industry's growth, should it be sustained. Why it Matters?  It is believed the Islamic finance industry has tremendous medium-term development potential, owing to high public demand for Islamic products and the country's solid economic prospects. Fitch notes that Bangladesh's sizeable Muslim population, the world's fourth largest after Indonesia, Pakistan and India, and excellent economic growth prospects could help generate con...

With the aim of placing Qatar in the position of a rising regional trade finance hub, Qatar Financial Centre (QFC) has accepted Doha-based NEBIX LLC (NEBIX), a fintech digital trade finance marketplace as one of its fintech companies.  Why it Matters? While Qatar’s strategic geographical position enables the country to be an important trade finance platform for multinational corporations, local companies, important financial institutions and new emerging Islamic Non-Bank financial institutions that serve the New Emerging Belt Initiative (NEBI)...

Ma'ruf Amin, Vice President of Indonesia, speaking at an International Conference on Islamic Economics on the 9th of November 2021 said that Islamic banks have three main roles to play in the future in order to be a part of the country’s economic and Islamic financial development.  Why it Matters? Amin noted that the first role is for Islamic banks to provide capital for Halal product industries. Furnishing capital access to micro, small and medium enterprises (MSMEs) and large entities is...

Zainab Ahmed, Minister of Finance, Budget and National Planning of Nigeria, has said that the country needs substantial financial sector reforms for sustained growth and penetration of Islamic finance in driving economic growth. Why it Matters?  Despite the enormous potential of Islamic financing to foster a more competitive economy, the minister stated that Nigeria's finance industry is falling behind in embracing Islamic financing in its financial market. Ahmed elaborated that Islamic financial instruments such as Sukuk have aided in the country's infra...

The National Debt Management Center (NDMC) of Saudi Arabia has announced the completion of accepting investor requests for the third international issuance in the year 2021 for Sukuk and bonds under the Kingdom’s Global Trust Certificate Issuance Programme and the Global Medium-Term Note Issuance Programme. Why it Matters?  This measure is part of NDMC's objective to broaden its investor base and satisfy the Kingdom's financing needs efficiently and effectively through international debt capital markets. Details   The total order book...

The Islamic Development Bank (IsDB) has stated that it will disburse USD 150 million over the next few days for the development of Special Agro-Processing Zones in Nigeria. Why it Matters?  Dr Mansur Muhtar, Vice President, Country Operations at IsDB, noted that the IsDB focuses on projects in social and fiscal infrastructure and to implement these projects, it places a lot of emphasis on regional connectivity. Sanusi Lamido, a former Governor of the Central Bank of Nigeria, noted that one of the key impac...

Malaysia Airports Holdings Berhad (MAHB) has lodged a bourse filing with the Securities Commission Malaysia (SC) on the 8th of November 2021 to establish a Sukuk Wakalah programme of up to MYR 5 billion (USD 1.2 billion). The programme, which has a perpetual tenure, gives the company the flexibility to issue Senior Sukuk Wakalah and/or Perpetual Sukuk Wakalah from time to time, provided the aggregate outstanding nominal value of the Sukuk Wakalah does not exceed MYR 5 billion (USD...