Pakistan has settled USD 1 billion of foreign debt on the 13th of October 2021 that was raised in October 2016 by floating International Sukuk at a rate of return of 5.5%. The country’s Ministry of Finance is also preparing to borrow another USD 1 billion through the issuance of International Sukuk, according to local media reports, quoting officials from the ministry. Why it Matters?  The repayment will briefly hit the debt-based foreign exchange reserves of the country which currentl...

Guidelines have been issued by the Central Bank of Nigeria (CBN) to non-interest financial institutions (NIFI) in the country on disposal of non-permissible income (NPI) according to a circular dated the 13th of October 2021. Why it Matters? The circular defines non-permissible income as income that accrues to the institution in a Shariah non-compliant manner such as interest income, penalties for delayed payment of debt obligations or any other income declared by the Advisory Committee of Experts (ACE) of the insti...

Kuwait-based ALAFCO Aviation Lease and Finance Company (ALAFCO) and Islamic Corporation for the Development of the Private Sector (ICD) signed a four-year syndicated secured financing agreement for USD 75 million, with ICD contributing USD 50 million to the transaction. Why it Matters?  The aviation industry is critical to worldwide connection, mobility and economic growth, and it was one of the hardest hit by the COVID-19 pandemic. ALAFCO's operations would be strengthened as a result of ICD's funding, and&nbs...

Owing to a lack of provision and Alternative Student Finance (ASF), about 10,000 students every year in the United Kingdom (UK) either forego education or are compelled to self-pay, according to preliminary findings from a recent Muslim Census survey. Why it Matters?  Students of the Muslim faith due to scriptural reasons do not take interest-bearing loans, thus not accessing conventional student finance. The former UK Prime Minister David Cameron in 2013 was to establish a scheme for students to finance...

Following a Memorandum of Understanding (MoU) signed in 2018 to enhance business between the United Arab Emirates (UAE) and Italy by Etihad Credit Insurance (ECI), the UAE federal export credit company, and SACE, the Italian export credit company, the parties recently met to discuss the progress of their action plan.  Why it Matters? ` The two state export credit agencies (ECAs) evaluated the progress of their collaboration in boosting sustainable development initiatives, trade finance of small and medium-sized enterprises (SMEs), the Halal...

Ronald Wijaya, Chairman of the Indonesian Sharia Fintech Association (AFSI) said a major portion of Indonesia’s Shariah fintech financing is towards the country’s productive sector.  Why it Matters? Speaking to Republika.co.id on the 11th of October, 2021, Wijaya said that more than 80% of the licensed fintech financing providers registered with the Financial Services Authority (OJK), offer financing facilities to the productive sector, which he claimed is in accordance with the national econom...

According to a report published by Renub Research in August 2021 titled "Halal Food Market, Global Forecast, Impact of COVID-19, Industry Trends, by Product, Distribution Channel, Growth, Opportunity Company Analysis", the global Halal food market size was valued at USD 842.39 million in 2020 and is anticipated to grow at a continuous annual growth rate of 10.83% during 2020-2027 to USD 1.7 billion by 2027.  Why it Matters?  The global Halal food market, which is made up of meat and alternatives, milk and milk products, grain products, fruits and vegetables an...

Egypt is expecting to see Sukuk issuances worth over EGP 5 billion before the end of 2021, bringing the total anticipated outstanding Sukuk in excess of EGP 7.5 billion in 2021, according to Sayed Abdel Fadeel, Head of Central Department for Corporate Finance at Egypt’s Financial Regulatory Authority (FRA), who was addressing a local media source on the 11th of October 2021.  Why it Matters?  The expected outstanding Sukuk issuance amount is much lower than official expectations made earlier in February 2021 by various stake...

The Islamic Development Bank (IsDB) and the Asian Infrastructure Investment Bank (AIIB) have met virtually on the 7th of October 2021 to discuss broader cooperation on infrastructure development in their 26 common member countries.  Why it Matters?  During the meeting, Muhammad Al Jasser, President of IsDB and Jin Liqun, President of AIIB agreed to make use of the banks’ resources and networks to enhance joint operational engagement and co-financing in mutual member countries. Both IsDB and AIIB...

Bank Indonesia (BI) has projected that global Muslim fashion consumption will increase to USD 311 billion in 2024, from USD 277 billion in 2019. According to Bambang Himawan, Director of BI’s Department of Shariah Economics and Finance, who was speaking at the 2021 Indonesia Sharia Economic Festival (ISEF) Kick Off Online Exhibition Press Conference on the 8th of October 2021, spending on the Muslim fashion sector in Indonesia reached USD 16 billion in 2019, making it one of the top five countries with the highest spending, following Iran, Turkey, Saudi...