Sharjah Islamic Bank's (SIB) board of directors has agreed to increase the percentage of foreign ownership in the bank's shares to 40%. This would be put to the SIB’s general assembly for discussion and a decision.  Why it Matters?  This move is being taken in response to high investor demand, demonstrating their faith in the bank and its aspirations, especially its expansion and growth strategy. Mohamed Abdalla, Chief Executive Officer at SIB, noted that the United Arab Emirates (UAE) handled the COVID-19 pan...

On October 14th to 15th, 2021, the third Russian Islamic Economic Forum was held in Grozny, Chechnya, under the theme ‘Russia - the Guarantor of Partnership’.  Why it Matters?  The purpose of the event was to facilitate the development of business relationships between Russia and the Islamic world. Supported by SberBank (Sber) and co-organised by the International Association of Islamic Business and KPMG, panel discussions were called "New Trends in the Islamic Ecosystem" and "Alternative Solutions to Regulate Islamic Finance in...

The Global Halal nutraceuticals and vaccines market is predicted to increase with a forecasted revenue of USD 88.5 billion by 2027 at a Compound Annual Growth Rate (CAGR) of 7.6%. Why it Matters? The forecasted increase in growth is attributed to the use of a recently developed concept, Halalopathy. This concept is a blend of religion and modern science in the manufacture of medicine and food. For market leaders of Halal nutraceuticals and vaccines, the setting up of an e-commerce-based distribution system is also expected to provide growth opportunities, as e-com...

For the first nine months of 2021 (9M 2021), the United Arab Emirates (UAE)-based Emirates Islamic's net profit increased to AED 804 million, owing to higher non-funded income and a considerable reduction in the cost of risk, indicating improving business mood. Why it Matters? Salah Mohammed Amin, Chief Executive Officer at Emirates Islamic, said that the bank is a key contributor to the overall Islamic finance sector in the UAE and that this is reflected in its financial performance. Hesham Abdulla Al Qassim, Chairman at Emirates...

A statement issued by Agrobank on the 20th of October 2021, said that its inaugural MYR 500 million Sukuk Wakalah programme was successfully priced. This follows the MYR 1 billion Sukuk Wakalah programme which was lodged with the Securities Commission Malaysia in August 2021.  Why it Matters? Khadijah Iskandar, Covering President/Chief Executive Officer of Agrobank stated that the successful issuance of its Sukuk will further endorse Malaysia as a global Islamic financial hub in addition to cementing its p...

Qatar-based Al Khalij Commercial Bank (Al Khaliji) reported its third-quarter results for 2021 (3Q 2021), with net profits year-to-date reported at QAR 561 million, up over 3% year-on-year (YoY). Loans and deposits grew 11% and 7% YoY, respectively during the period, with total assets at QAR 58.5 billion, up 6% YoY.  Why it Matters? The announcement of the 3Q 2021 results comes shortly after Al Khaliji’s shareholders approved its merger with Masraf Al Rayan at an Extraordinary General Meeting on the 6th of Oct...

United Arab Emirates (UAE)-based Gulf Islamic Investment (GII) has signed a memorandum of understanding (MoU) with the Government of Karnataka, India, to draw investments and further develop trade.  Why it Matters?  GII’s entry into India via an office in Bengaluru (capital of the Karnataka state) would further strengthen investment relations between India and the UAE, and it has plans to invest USD 500 million in the country over the next three years. It is also intending to enga...

Mohd Muazzam Mohamed, Chief Executive Officer at Bank Islam Malaysia (Bank Islam), speaking of his Budget 2022 wishlist, said that the Government of Malaysia should consider tax incentives to all financial institutions that engage in microfinancing for micro-entrepreneurs. Why it Matters?  Mohamed elaborated that microfinancing programmes are mostly granted not for profit, and, in some cases, the operation cost is more than the revenue brought in from them. Stamp duty exemptions for financin...

Yaqut Cholil Qoumas, Indonesia’s Religious Affairs Minister, stated that effective the 17th of October 2021, medicines, cosmetics and consumer goods products will require mandatory Halal certification. The order was included in a regulation of the Government of Indonesia pertaining to the implementation of Halal product insurance. Halal product insurance covers a wide spectrum of categories including foods, beverages, drugs, cosmetics, chemical products, biological products, genetically modified products, and consumer goods. W...

Indonesia's market share in the global Islamic banking market is currently a mere 2%. Why it Matters?  Iran with 28.6% and Saudi Arabia with 24.9% dominate the global Islamic banking market. Whereas Malaysia’s has a 11.1% share, with the United Arab Emirates 8.7% and Turkey 2.6% respectively. Bayu Endrasasana, Senior Supervisor, Information Technology Specialist Supervisory Group-Financial Services Authority, noted that Islamic banking in Indonesia faces structural challenges such as competitiveness, digital services, inequality in li...