On the 31st of October 2021, Abu Dhabi Islamic Bank (ADIB) disclosed a net profit of AED 1.6 billion (USD 435.6 million) for nine months in 2021 (9M 2021), rising 43% year-over-year (YoY).  Why it Matters?  These figures reflect robust underlying performance across the business segments despite the COVID-19 pandemic-induced challenging environment. The recovery from the pandemic continues to fuel a positive consumer mood, according to Jawaan Awaidah Al Khaili, Chairman at ADIB.  Details   Re...

The East Java Nahdlatul Ulama Regional Board (PWNU) in Indonesia has issued a Fatwa that says that cryptocurrency is forbidden. This decision was made at the East Java NU Mass Bahtsul forum on the 24th of October 2021. Why it Matters? KH Ahmad Fahrur Rozi, also known as Gus Fahrur, Chairperson of the East Java PWNU, remarked that according to his observation, cryptocurrency is considered to have more elements of speculation and is not measurable. This makes it unsuitable to be an investment instrument. Details &nb...

Islamic finance offers opportunities for cooperation and growth for Qatar and Turkey, with both countries playing a vital role in promoting Islamic finance, according to Goksel Asan, President of Finance Office of Presidency of Turkey, who was speaking to media during a recent visit to Qatar.  Why it Matters?  Asan stated that Islamic finance is the future of the financial system and is a promising sector for growth in both countries. Asan noted that the Qatar Financial Centre (QFC) had signed a Memorandum of Understanding (MoU) with i...

The Government of Indonesia has officially opened the offer period for Retail Green Sukuk - Savings Sukuk ST008 for individual local investors. According to a statement issued by the Directorate General of Financing and Risk Management, Ministry of Finance, the bidding period for ST008 will take place from the 1st to the 17th of November 2021.  Why it Matters?  ST008 is the third Retail Green Sukuk issuance from the Government of Indonesia and demonstrates the Government’s interest in developing the Islamic fi...

Moody’s Investor Services (Moody’s) says Bangladesh’s Islamic banks, with fast-growing corporate exposure stemming from increased corporate financing, coupled with lower loss buffers than their peers, face greater asset risks in comparison to conventional private banks. Why it Matters? The profitability structure of Islamic banks is weaker than their peers due to the higher cost of funding and excess liquidity, resulting from Islamic banks being banned from holding interest-bearing bonds together with the scarcity of Shariah-compliant instruments....

The effects of the Paris Agreement ratchet have been the upgrading of nationally determined contributions and new Net Zero targetsPolicies to drive implementation towards these longer-term goals will impose a cost on emitted greenhouse gases in line with their social and environmental impacts that will cause twin shocks for emerging & developing countries of domestic policy risk to meet climate goals and trade-related carbon tariffs introduced by trade partnersFinancial institutions in emerging & developing countries will face increased risk and should be preparing now for how th...

BCA Syariah posted a profit before tax in September 2021 of IDR 64.9 billion. Compared to the same period in 2020, this was a 14.7% increase from IDR 56.6 billion.  Why it Matters?  Yuli Melati Suryaningrum, President Director at BCA Syariah, noted that BCA Syariah's efforts to manage liabilities and productive assets optimally resulted in a rise in profit. Details   These comments were made via a written statement dated the 30th of October 2021. Assets as at end-September 2021 stood at IDR 9.8 trillion. This figure was an increase&n...

Bank Syariah Indonesia (BSI) recorded a net profit of IDR 2.26 trillion in the third quarter of 2021 (3Q 2021). This was a 37.01% year-on-year (YoY) increase compared with the previous year’s value of IDR 1.65 trillion.  Why it Matters?  The increase in net profit, according to Hery Gunardi, President Director at BSI, is in keeping with the company's goal of focusing on digitalisation, both in terms of product and service. This is reflected in BSI Mobile's total transactions, which saw a rise of 133% YoY to 74.24 million transact...

Saudi Arabia has completed the repurchase of a portion of outstanding bonds and Sukuk due in August, September, October, November and December of 2022 earlier than planned, with the total value amounting to over SAR 33 billion (USD 8.79 billion). Why it Matters?  With the objective of unifying its domestic issuances under the Sukuk Issuance Programme in SAR, this transaction is a National Debt Management Center (NDMC) initiative.  Details   According to the NDMC, this is the second stage of the initiative, which beg...

As per Refinitiv’s 2021 Sukuk Perception and Forecast study, global Sukuk issuance which reached USD 147 billion in the first nine months of 2021, is slated to reach USD 180 billion by the end of 2021. Why it Matters? Sukuk issuance is forecast to reach USD 290 billion in 2026 growing at an estimated Compound Annual Growth Rate (CAGR) of 10% over the next five years. Mustafa Adil, Head of Islamic Finance at Refinitiv said that the global secondary Sukuk market, with a steady growth over the last five years reached USD 699 billion in value outstanding in the third quarter&nb...