Joko Widodo (Jokowi), President of Indonesia said with swift and appropriate growth in digitalisation in the country’s financial and economic sectors, Indonesia has the capability of becoming the seventh-largest economy globally by 2030. Speaking at the Financial Services Authority (OJK) Virtual Innovation Day, President Jokowi said that with such measures, the country could be a digital giant following China and India. Why it Matters? Through the ongoing COVID-19 pandemic, there is an accelerated growth in digitalisation in Indo...

Mohammed Al-Jadaan, Finance Minister of Saudi Arabia and Chairman of the Board of Directors of the Zakat, Tax and Customs Authority, said that a decision has been taken to change the expiration date of the value-added tax in Saudi Arabia and that this would come into force in early November 2021. Why it Matters?  This initiative has been taken as part of the government’s efforts to provide increased chances for the private sector to expand and operate as well as to make the business environment less challenging and...

A survey by HSBC of issuers and investors in the MENAT region and globally found that 44% of regional investors saw their adoption of ESG slowed by a lack of qualified staffRegulators in the region have been less active in providing structured guidance such as taxonomies to help bridge the gap between issuer and investorAs the Middle East continues to develop, it will have to build market capacity to address transitioning sectors, as well as to channel funding towards the green economy HSBC has released the 2021 version of its Sustainable Financing & Investing survey, and the...

A new Climate Bonds discussion paper provides an overview of common characteristics to define a transition and sustainability-linked financing standardsThe discussion paper excludes consideration of how performance-linked financing affects incentives, which we review using a social sustainability-linked financing exampleThe incentive problems in sustainability-linked financing such as what is used to finance transition may benefit from solutions developed for Islamic financeThe Climate Bonds Initiative has released a discussion paper covering the items that would be needed...

Bank Islam Malaysia (Bank Islam) has become the first full-fledged Islamic financial institution to be listed in the Main Market of Bursa Malaysia. Why it Matters? Bank Islam, taking over the listing status from BIMB Holdings (BHB), completed the restructuring programme of the BHB Group. The programme included distribution and repayment of capital, with the transfer of the entire shareholding held by BHB in Bank Islam and Syarikat Takaful Malaysia Keluarga (Takaful Malaysia) t...

Al Salam Bank-Bahrain (Al Salam) has signed a memorandum of understanding (MOU) with Ithmaar group for a proposed acquisition of a group of assets of Ithmaar’s group of companies. Discussions have commenced between the two entities consequent to the signing of the MOU.   Why it Matters? A statement issued by Al Salam says that the acquisition will take place subject to carrying out a due diligence, the agreement of terms of sale and adhering to all regulatory and corporate consents. Also stated was that that the bank welcomes&nbs...

Nigeria-based Purple Urban, part of the Purple Group, has completed the private issuance of its Sukuk to raise NGN 5 billion. The bond issuance was fully subscribed, with a maturity date of the 1st of September 2026. Why it Matters?  The Sukuk was issued to fund the construction of 94 out of 112 housing units in urban residential development in Lekki Phase 1, Lagos, Nigeria, consisting primarily of 4-bedroom semi-detached maisonettes and penthouses, as well as 2-, 3- and 4-bedroom flats. Details   Cardinal Stone Par...

The MYR 750 million Sukuk Wakalah offering by Malaysia-based Bank Simpanan Nasional (BSN) has had a strong reaction, with a 3.48x oversubscription. This is the state-owned bank’s first issuance in the capital markets. Why it Matters?  Jay Khairil, Chief Executive Officer at BSN, remarked that because this is BSN's first issuance in the capital markets, the successful launch of this offering marks a key milestone for the bank. The proceeds are to be used for BSN's Shariah-compliant finance activities, which include refinancing exi...

Malaysia-based AWQAF Holdings (AWQAF) has formed a consortium together with Halim Mazmin and Karangkraf Magazine Group, with the intention of applying for a digital banking license to facilitate and provide easy access to Waqf. The consortium and its shareholders will be raising MYR 100 million as initial capital and is hoping to obtain one of the five licenses for digital banks issued by Bank Negara Malaysia (BNM) to qualified applicants by the first quarter of 2022, according to an interview conducted by a local news source.&nb...

The United Kingdom (UK) Government is reviewing a decision on whether or not to proceed with Halal student financing. According to Muslim organisations, the Government may imminently scrap the financing option scheme as early as November 2021, if the Muslim community does not show that there is a demand for it.  Why it Matters?  In 2013, David Cameron, who then served as Prime Minister of the UK, announced that the Government would be introducing a Shariah-compliant student loan, to ensure that Muslims in Britain would not feel unable to at...