NewTribe Capital, a Dubai-based venture capital private equity group, has made a strategic investment in Marhaba DeFi (MRHB DeFi), the world's first Halal decentralised finance (DeFi) ecosystem. MRHB DeFi is based out of Sydney, Australia.  Why it Matters?  NewTribe Capital's company ethos and strategic goals are slated to be in alignment with investing in the first ethical, inclusive and faith-based MRHB DeFi ecosystem platform. Naquib Mohammed, Founder and Chi...

According to a statement made on the 29th of September 2021, Saudi Arabia-based SEDCO Capital and Switzerland-based Lombard Odier have launched a Shariah-compliant fund that is environmental, social and governance (ESG)-focused, in order to invest in developed market equities. The fund is named SC LO Global ESG Equities Fund.  Why it Matters?  ESG-related issues are increasingly important to global investors, evidenced by the USD 2.2 trillion Islamic finance industry, which is seen as complementary to Shariah principles on social and sustai...

Syed Moosa Kaleem Al-Falahi, Chief Executive Officer at the Islamic Bank of Afghanistan, has said that Afghanistan’s financial industry is in the midst an existential crisis amid customer panic.  Why it Matters?  Al-Falahi, who is temporarily based in Dubai, United Arab Emirates (UAE), owing to the chaos in Kabul, Afghanistan’s capital, noted that there were significant withdrawals from banks occurring at present in the country. He also remarked that most banks are not functioning or providing full services.&...

As per the 12th Malaysia Plan (12MP) document issued by the country’s Economic Planning Unit (EPU), steps are being taken to improve the Halal industry with the industry’s export revenue estimated to grow to MYR 56 billion in 2025 from MYR30.6 billion in 2020, thus contributing roughly 8.1% to Malaysia’s Gross Domestic Product (GDP). Why it Matters? With the objective to produce competitive domestic Halal industry players, in order to capture a bigger global Halal market share, a series of steps are to be taken such as developing of Halal talent, estab...

According to the State Bank of Pakistan (SBP), the Government of Pakistan is to raise PKR 100 billion in September 2021 via a five-year Ijara Sukuk auction against three specified assets, meeting a long-standing request from the Islamic banking industry. Why it Matters?  The issuance of this Sukuk was the key demand from the Islamic banking industry, and industry sources view this as a positive development for the country’s Islamic banking industry, as this fresh Sukuk auction has been announced after a hiatus of seven months. It is b...

Hani Al-Medaini, Head of the Saudi National Debt Office, has said in an interview that Saudi Arabia is SAR 24 billion short of its borrowing plan for 2021 and is therefore considering issuing more green bonds.  Why it Matters?  Although the Kingdom had planned to raise SAR 124 billion, as at end-August 2021, it had secured only SAR 100 billion. In addition to conventional bonds and Sukuk, the government will also be exploring financing backed by export credit agencies. On a related noted, the Gulf region has seen rising interest in environmental...

The Islamic Development Bank (IsDB) has approved new financing amounting to USD 73.55 million to support development projects in Bangladesh, Togo and Iraq. The announcement was made at IsDB’s recent 342nd-period meeting of Board Members led by Dr Muhammad Al Jasser, IsDB President and Chairman of the Board, according to an IsDB statement issued on the 26th of September 2021.  Why it Matters?  Out of the new financing approved by IsDB, Bangladesh will receive the largest share of USD 36.4 million for the Inclusive a...

Bangladesh Bank (BB) has issued new provisions enabling all scheduled banks in the country to invest in private Green Sukuk using special funds allocated for investment in the capital market, according to a circular dated 27th of September 2021. Why it Matters?  Under the new provisions, the entire amount in the special fund of each bank (BDT 2.0 billion) meant for capital market investment can now be invested in 100% asset-backed Green Sukuk, having at least 70% of their fund in solar power, hydropower, wind power projects and other sources of renewable...

Indah Kiat Pulp & Paper (Indah Kiat), which is an Indonesia-based manufacturer of paper, pulp and packaging paper, has conducted a sustainable public offering worth IDR 4 trillion in securities, made up of Shelf Registration Bonds II Phase I 2021 worth IDR 3 trillion and Shelf Registration Sukuk Mudharabah I Phase I 2021 worth IDR 1 trillion, according to an Indonesia Central Securities Depository announcement dated 24th of September 2021. The Sukuk issuance is a continuation of the company’s public...

A “Gold” impact assessment has been assigned to Bank Pembangunan Malaysia’s (Bank Pembangunan) Sustainable Development Sukuk Framework (Framework) by Malaysian Rating Corporation (MARC).  Why it Matters?  The Framework focuses on meeting the funding needs of targeted and new growth sectors that are critical to driving sustainable economic growth, fostering inclusive growth and addressing climate change, in line with Bank Pembangunan's mandate to actuate sustainable development. Some of the key impact themes of the Framewor...