Indonesia’s Financial Services Authority (OJK) has recorded total Islamic financial assets of IDR 1,885.65 trillion as of June 2021, a 4.67% increase from IDR 1,801.46 trillion at the end of 2020. The assets as of June 2021 consist of IDR 1,137.84 trillion from the Islamic capital market (5.73% growth compared to end of 2020), IDR 631.55 trillion from Islamic banking (3.72% compared to the end of 2020) and IDR 116.26 trillion from the Shariah non-bank financial industry (IKNB) (0.07% contractio...

Indonesia’s Islamic financial services industry distributed financing of IDR 434.52 trillion to domestic Halal sector industry players in 2020, an increase of 6.27% from 2019, according to Ma’ruf Amin, Vice President of the country, based on the 2020 Indonesian Shariah Economic Report published by Bank Indonesia. Ma’ruf, who was speaking at the 2021 Islamic Finance Summit on the 30th of September 2021, also highlighted that Islamic financial institutions should be more adaptive with market needs in the digital era to...

After its market accessibility level was upgraded, the FTSE Russell announced that Saudi Arabia’s local currency government Sukuk will be added to the FTSE Emerging Markets Government Bond Index (FTSE EMGBI). 42 government Sukuk at an outstanding par value of SAR 306.1 billion, will enter the FTSE EMGBI in April 2022, comprising 2.75% of the index on a market value-weighted basis. Why it Matters? The Saudi Capital Market Authority (CMA) said in a separate statement that this action will help to...

According to the Saudi Central Bank (SAMA), in the second quarter of 2021 (2Q 2021) Islamic banks’ total lending rose to SAR 1.6 trillion, a rise of 4.56% from the previous quarter. At the end of the first quarter of 2021, cumulative loans given by Islamic banks stood at SAR 1.5 trillion. Why it Matters?  This quarterly increase in lending corresponds to a year-on-year growth of 19.49%, according to new data on the Islamic banking system released by SAMA. Details   The overall assets o...

The United Nations in the Kingdom of Saudi Arabia (UN in KSA) and the Islamic Corporation for the Development of the Private Sector (ICD) have teamed up to launch a research paper on ‘Awqaf for the Achievement of Vision 2030 and the Sustainable Development Goals (SDGs)’, that intends to provide actionable recommendations on how Awqaf might be used as a source of sustainable funding in Saudi Arabia for Vision 2030 and for the SDGs. Why it Matters?  The Awqaf sector has become dormant in many nations, and social Awq...

Sedania As Salam Capital (SASC), a wholly-owned subsidiary of Sedania Innovator, has signed a Memorandum of Understanding (MoU) with a Turkey-based fintech company, Innova Yonetim Danismanlik Ve Bilisim Teknolojileri (Innova), to develop a Tawarruq-based portfolio in the Turkish Islamic banking sectors. Why it Matters? In 2020, the Turkish Islamic banking sector is slated to have seen significant growth, with its asset base expanding at a higher rate than that of conventional banks. SAS...

Bangladesh’s National Board of Revenue (NBR)’s income-tax division has decided to waive Tax Deducted at Source (TDS) on Sukuk transactions between Originator and Special Purpose Vehicle (SPV). Why it Matters?  Islamic banks account for around 35% of the Bangladesh’s banking sector's market. Sukuk, however, has not much traction, as both banks and individual investors are taking a cautious approach to investing in the real asset-backed bond. Officials claim that the latest tax exemption is part of a package designed to make Sukuk more appealin...

According to Moody’s Investors Service (Moody’s), Sukuk issuance is forecast to increase in the next few years, with Africa joining other key Islamic markets such as the Gulf Cooperation Council (GCC), Indonesia, Malaysia and Turkey.  Why it Matters? A key factor driving such issuances will be the large sums of financing required to address Africa’s infrastructure deficit. African Sukuk issuance accounts for less than 0.5% of worldwide Sukuk outstanding. Despite the continent being home to about a quarter of the world's Muslim ...

Fitch Ratings (Fitch) has affirmed Vakif Katilim (the Bank)’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at 'B' with a Stable Outlook. The Viability Rating (VR) of the Bank has also been affirmed at 'b'. Ratings Rationale Vakif Katilim's 'B' LTFC IDR is supported by its independent creditworthiness as expressed by its VR, and potential Government support. The VR is indicative of Vakif Katilim's growing participation banking franchise as well as its reasonable financial profile, despite its fairly short period...

Expo 2020, a global event to be held in Dubai, United Arab Emirates (UAE), commencing on the 1st of October 2021 is predicted to promote a robust growth in UAE’s non-oil economy, according to Oxford Economics’ analysts in the Middle East Economic Insight report for the third quarter of 2021. The Expo 2020 will be coupled with inventive initiatives by the Government of the UAE to achieve economic growth. Why it Matters? Through the Expo 2020’s effect on the supply chain as well as the spending it supports, travel and tourism in the UAE, which...