In collaboration with the International Islamic University Institute of Islamic Banking and Finance (IIiBF), the Islamic Banking and Finance Institute Malaysia (IBFIM) has launched a programme to provide learners with a firm foundation of Shariah knowledge and to aid in the global development of Islamic finance. Why it Matters?  The i-Contract Series, according to IBFIM, intends to provide an in-depth understanding of the practical features and operational requirements of Shariah contracts as well as serve as a guide to implementing Shariah standards...

According to a statement released on the 17th of September 2021, the National Investment Trust (NIT) has launched NIT - Islamic Money Market Fund (NIT-IMMF) with the initial public offering date of the fund set for the 20th to 22nd of September 2021.  Why it Matters?  The fund's objective is to meet the needs of investors who want to generate riba (interest)-free returns while preserving their capital to the greatest extent possible. It is an open-ended fund that aims to invest in diversified portfolios of Shariah-compl...

Indonesian state-owned construction company Hutama Karya has issued a total value of IDR 1.5 trillion of securities, made up of  Sustainable Public Offering (PUB) of Bonds II Phase I 2021 worth IDR 1 trillion and Sustainable Sukuk Mudharabah I Phase I 2021 worth IDR 500 billion. According to local media reports dated 14th of September 2021, the issuance was oversubscribed by 3.9 times.  Why it Matters?  Through the issuance of these securities, the company will change its loan profile to long-term loans from short-t...

Tropicana Corporation (Tropicana), a Malaysia-based property developer, has successfully issued MYR 270 million in nominal value of Perpetual Sukuk Musharakah (Perpetual Sukuk), from its Perpetual Sukuk Programme of MYR 2 billion in nominal value, which is based on the Shariah principle of Musharakah, according to an announcement filed with Bursa Malaysia on the 15th of September 2021.  Why it Matters? Proceeds from the Perpetual Sukuk issuance will be utilised for Shariah-compliant purposes to refinance existing financing/debt obligations...

Shariah-based banks’ market share remained above 27% for the January to June 2021 period with deposits in them rising 12.61% or by BDT 41,241 crore.  Why it Matters?  33 out of the 60 scheduled banks in Bangladesh offer Islamic banking services. According to data from Bangladesh Bank (BB), total deposits in Islamic banks was up to BDT 3,27,943 crore as of end-June.  Details  Of the 33 banks that offer Islamic banking services, 10 are full-fledged Shariah banks, 14 are conventional banks that operate ...

In an attempt to make Sukuk more commonplace, the National Board of Revenue (NBR) in Bangladesh has put forward tax incentives for Sukuk. The Board's Value-Added Tax (VAT) wing has exempted taxes on asset sales and purchases between the originator and the Sukuk Special Purpose Vehicle (SPV). Through the issuance of a Statutory Regulatory Order (SRO), VAT on asset rent or leasing between them has also been eliminated. Why it Matters?  Islamic banking is an estimated 35% market size of the total banking sector. According to media reports, a senior VAT official had remark...

The 11th Global Islamic Finance Awards (GIFA) ceremony was held in London on the 14th of September 2021 to honour the outstanding market leaders in Islamic Finance. The awards are in recognition of the excellent contributions made by governments, organisations and individuals towards the sustainability of Islamic banking and finance as a feasible system within the sphere of global Islamic finance.  Why it Matters? Professor Humayon Dar, Chairman of the GIFA, stressed the collective responsibility of countries to develop and promote the Islamic f...

Several key stakeholders at the Halal Expo Nigeria 2021 echoed similar sentiments in their view of the country’s potential to significantly jumpstart industrial development through the Halal economy. Nigeria is considered a focal point for the Halal economy on the continent, particularly through the African Continental Free Trade Agreement (AfCFTA). Why it Matters? Dr Abubakar Mujtaba, President of Abuja Chamber of Commerce and Industry (the Chamber), stated that though the Halal industry in the country was in an infancy stage, it remained strategic...

Malaysia International Halal Showcase (Mihas 2021) which commenced on the 9th of September 2021, will enable Qatari and Malaysian companies to meet and discuss common cooperation aspects of both countries. Mohd Mustafa Abdul Aziz, Chief Executive Officer of Malaysia External Trade Development Corporation (Matrade) said that Mihas 2021 is expected to promote the trade and economic relations between the two countries with import and export of Halal products.  Why it Matters? Matrade is in touch with many entities carrying...

Lagos State is considering issuing Sukuk to raise suitable finance for infrastructural projects as part of its efforts to diversify its funding base and fulfill its goals of financial inclusion and leveraging opportunities in the alternative ethical financing sector. Why it Matters?  Although Lagos State is already the most active sub-national issuer on the Nigerian capital market, the upcoming Sukuk would be it's first in the alternative ethical finance space, behind only Osun State, which had previously issued Nigeria's first sub-national Sukuk. Lagos State state...