At the annual conference of the Finance Correspondents Association of Nigeria (FICAN), Dayo Obisan, Executive Commissioner Operations of the Securities Exchange Commission (SEC) in Nigeria stressed that the capital market has the capability to bridge the infrastructure gap as well as contribute to the economic development in the country. Why it Matters? Obisan said that there are many avenues to be explored to overcome the infrastructure gap, one of them being Sukuk as it has also been used in the past for funding of important projects in different sector...

Bank Negara Malaysia (BNM) has issued an exposure draft on the new Malaysia Islamic Overnight Rate (MYOR-i), in anticipation for its official launch in 2022. The exposure draft was released on the 24th of September 2021 alongside the launch of the Malaysia Overnight Rate (MYOR) as the country’s new alternative reference rate.  Why it Matters?  The exposure draft outlines the benchmark design, methodology and governance framework of MYOR-i, which is a new Shariah-compliant transaction-based Islamic benchmark rate being develo...

On the 27th of September 2021, Datuk Seri Ismail Sabri Yaakob, Prime Minister of Malaysia, unveiled the 12th Malaysia Plan (12MP). There were nine areas focused on, such as boosting economic growth, strengthening growth catalysts, improving development in low-growth states and accelerating green growth. When compared to earlier plans, the MYR 400 billion development allocation under the 12MP is the largest yet, as it includes allocations for the rehabilitation of government agencies, said Datuk Seri Mustapa Mohamed, a minister in the Prime Minister's Department. T...

Oman-based Bank Nizwa’s rights issue for OMR 70 million was stated as being successfully completed on the 25th of September 2021. Why it Matters? The rights issue of 736.953 million new ordinary shares at OMR 95 Bit-Z (bz) per share was offered to expand the bank’s capital to finance the next level of planned growth and increase shareholder returns. The new share capital was to be listed on the Muscat Stock Exchange (MSX) on the 26th of September 2021 post completion of the procedures relating to updating and listing of the new shares at the M...

Ndako Mijindadi, Head, Investment and Research at Nigeria-based ethical investment management company, Lotus Capital Limited, stated that the value of Shariah-compliant stocks totalled over NGN 11.3 trillion as per the Lotus Islamic Index. The index follows the performance of a group of selected Shariah-compliant equities listed on the Nigeria Exchange Limited (NGX). Why it Matters? Mijindadi stated that in selecting ethical assets for investment, the main consideration is Shariah compliance which is compulsory and as there are a vari...

Ma'ruf Amin, Vice President of Indonesia, has stated that the Government of Indonesia is focusing on four areas to develop the Islamic economy and finance. The first being development of the Halal industry, second the development of the Islamic finance industry to support industry and trade, third the development of Islamic social funds and fourth the development and expansion of Shariah business activities.  Why it Matters?  In developing the Halal industry, the Government would be prioritising policies favouring micro, small and medium-sized enterprises (MSMEs).&...

The Islamic Development Bank (IsDB) has authorised a USD 86.64 million loan to the State Government of Niger in Nigeria for the building and upgrading of the 82-kilometre Minna-Bida Road being handled by the Dantata & Sawoe Construction Company (Nigeria). Why it Matters?  The ongoing upgrade of the Minna-Bida Road project is to contribute to the state's socio-economic development by establishing safe, efficient and cost-effective interconnections between local government areas in the state, a...

According to the 2020 Islamic Financial Report by Indonesia’s Financial Services Authority (OJK), issued on the 6th of July 2021, the number of investors using SOTS (Islamic Online Trading System) showed a 25.21% year-on-year (YoY) increase to 85,891 investors at the end of 2020.  Why it Matters? This increase was amidst the volatility created by the ongoing pandemic and was largely a result of socialisation and innovation activities carried out by the OJK and other connected stakeholders. The main focus of th...

Sultan Nazrin Muizzuddin Shah, Sultan of Perak, delivering a special keynote address at the 12th Securities Commission Malaysia-Oxford Centre for Islamic Studies’ virtual round table on the 23rd of September 2021, said the capability of the Islamic finance industry to take the lead in the global economic recovery was amply demonstrated by actions of the Islamic Development Bank (IsDB) during the COVID-19 pandemic. Why it Matters? It is important to find avenues to infuse Maqasid values into Isla...

Islamic finance has significant potential to grow worldwide in line with the growing global movement towards environmental, social and corporate governance (ESG), given their similarities. According to Tan Sri Abdul Wahid Omar, Chairman of Bursa Malaysia, who was speaking at the virtual 2021 Asia-Pacific Summit held on the 22nd of September 2021, the relationship of ESG is complementary and not competitive to Islamic finance, and when ESG gains traction, so will Islamic finance.  Why it Matters?  Abdul Wahid stated...