Dr Mwigulu Nchemba, Minister of Finance and Planning of Tanzania, has said that Islamic banking and finance is set to grow in the country. Furthermore, Chairperson of the Centre for Islamic Finance, Compliance and Advice (CIFCA), Mr Aref Nahdi, stated that the Government of Tanzania would like to see the country become a hub for Islamic banking and finance for East African countries.  Why it Matters?  Since its start in 2008, Islamic banking and finance in Tanzania has expanded beyond banking services to include Islamic microfinance, H...

The creation of the Qatar FinTech Hub (QFTH) is seen as a significant step towards the country’s aim to becoming a global fintech hub. This is a part of Qatar Central Bank’s (QCB) National FinTech Strategy targeted at promoting local start-ups and also creating an enabling environment suitable for international FinTechs to select Qatar as their entry point into the global market. Why it Matters? Established by Qatar Development Bank in line with QCB’s FinTech Strategy and the Qatar National Vision 2030, the QFTH focuses on enha...

TSH Sukuk Murabahah Sdn Bhd’s MYR 150 million Medium-Term Notes (IMTN) Programme and MYR 50 million Commercial Papers Programme have had their ratings affirmed at A+IS and MARC-1IS by Malaysian Rating Corporation (MARC). Concurrently, TSH Sukuk Ijarah Sdn Bhd's MYR 300 million IMTN programme has also been affirmed at A+IS. The outlook for the long-term ratings has been revised to positive.  Ratings Rationale TSH Resources (TSH) has given an irrevocabl...

The BDT 7,500 million public offer of Bangladesh-based Beximco Limited (Beximco)’s Green-Sukuk Al Istisna was only about 56% subscribed by general investors. The Sukuk was slated as the very first asset-backed securities by the private sector in Bangladesh.  Why it Matters? Beximco obtained approval from the Bangladesh Securities and Exchange Commission (BSEC) to launch BDT 30,000 million worth Sukuk for a five-year term of which BDT 7,500 million was offered to the public. The offer which was open for a week from the 1...

In a report, Carma Asia, a Singapore-headquartered media intelligence provider, identified the top three Islamic banking institutions in Asia according to the level of overall media coverage and positive sentiment: Bank Rakyat, Bank Islam Malaysia and Maybank Islamic.  Why it Matters?  An examination of trends found that the media was drawn to the banks' digital service offerings. The significant focus on digitalisation across products and services, aided by COVID-19 relief methods and joint ventures, has helped Islamic banks improve t...

At the Extraordinary General Meeting held on the 5th of October 2021, shareholders of Masraf al Rayan (Al Rayan) approved its merger with Al Khalij Commercial Bank (Al Khaliji). Why it Matters? The merger will be carried out by the issue of new shares in Al Rayan on the basis of shareholders of Al Khaliji receiving 0.5 Al Rayan shares for every share in Al Khaliji subject to regulatory approvals and adhering to the conditions precedent set out in the merger agreement. It was re-con...

Moody’s Investors Service (Moody’s) has assigned first time local and foreign currency long-term and short-term Caa2/NP bank deposit ratings for Iraq-based Shariah-compliant bank, Al-Anssari Islamic Investment and Financing Bank (AIIFB). In addition, Moody’s assigned the bank a Baseline Credit Assessment (BCA) and Adjusted BCA of caa2. The long-term deposit ratings’ outlook is stable.  Ratings Rationale  AIIFB’s Caa2 long-term deposit ratings factor the bank’s caa2 BCA and has a low probability of support from the governmen...

The main topic of the 2021 Indonesia Shariah Economic Festival (ISEF) was aptly named, “Agriculture for Sustainable Growth” following Bank Indonesia’s (BI’s) aim to promote Shariah Economic concept in the integrated agricultural sector. Why it Matters? Anwar Bashori, Head of the BI Department of Shariah Economy and Finance, speaking at the virtual sessions held on the 5th of October 2021 said that as a sector that had sustainable growth during the COVID-19 pandemic, agriculture had the capability to enhance economic growth. Ex...

On the 4th of October 2021, the International Islamic Financial Market (IIFM) announced the approval of its Shariah Board’s Risk-Free Rate (RFR) implementation-related Compliant Standard Structuring Solutions for transactions involving Murabahah and Ijarah. Why it Matters?  Globally, the London Inter-Bank Offered Rate (LIBOR) is being phased out and transitioning to RFRs or Alternative Benchmark Rates for currencies such as the USD, EUR, GBP, CHF, and JPY as well as certain other hard currencies used in domest...

Ma’ruf Amin, Vice President of Indonesia, has emphasised that economic development and Islamic finance should use the concept of sustainable development to achieve social welfare and justice through various economic and social activities based on Islamic religious guidance. Speaking at the International Conference on Islamic Studies (ICIS) held on the 4th of October 2021, Ma’ruf stated that sustainability principles are the basis in Islamic economics and finance.  Why it Matters?  According to Ma’ruf, the principles of Islamic economics...