A leading analyst at Fitch Ratings agency has stated that the support of the Gulf government to establish infrastructure projects is crucial to tap into the true potential of the green and sustainable Sukuk market that doubled in growth in 2021.  Why it Matters? The Shariah-compliant sustainable sector has grown expeditiously by rising in its issuances to USD 6 billion in the first half of 2021 from USD 3 billion in 2020. Despite this Bashar Al Natoor, the global head of Islamic finance at Fitch Ratings agency, notes that the rise in green...

BlackRock’s study on behalf of the European Commission dug deep into how banks were responding to ESG risksDivisions remain between how regulators, financial institutions & civil society view banks' ESG priority setting processThe most important need for banks to change is their perspective so they begin to look at ESG risk management differently than they see financial risk management A long-awaited study commissioned by the European Union has found that banks faced significant challenges in how far they have gone in considering environmental, social and governanc...

Malaysian Rating Corporation (MARC) has affirmed Islamic Development Bank’s (IsDB) financial institution (FI) ratings of AAA/MARC-1 with a Stable Outlook. In addition, MARC’s AAAIS rating on the Sukuk Wakalah programme of up to MYR 400 million, issued by a trust established by IsDB, Tadamun Services, has been affirmed.  Ratings Rationale  The FI ratings are driven by IsDB’s preferred creditor status as a multilateral development bank established by the Organisation of...

The Islamic Corporation for the Development of the Private Sector (ICD), which is the private sector arm of the Islamic Development Bank (IsDB) Group has signed a Memorandum of Understanding (MoU) with AzerGold Closed Joint-Stock Company, which is a 100% state-owned mining company in Azerbaijan. The MoU was signed during the 46th IsDB Annual Meeting which took place in Tashkent, Uzbekistan on the 2nd of September 2021.  Why it Matters?  The cooperation between the two parties aims to explore the possibility of issuing Sukuk t...

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) announced the 19th Annual Shariah Boards Conference to be held virtually under the auspices of the Central Bank of Bahrain on the 12th and 13th of October 2021. Why it Matters? The Annual Conference which is a gathering of great importance to the Islamic Finance industry will have the participation of Shariah scholars, policymakers and decision-makers who will discuss important issues in the global Islamic finance industry. The participants will focus on and consider...

Malaysia International Halal Showcase (MIHAS 2021) is to rejuvenate Malaysia’s position as the global Halal hub with the longest-running virtual Halal showcase in the world. MIHAS 2021 will be virtually accessible from the 9th of September until the 31st of December, 2021. Why it Matters? At the launch of the virtual showcase, Malaysia External Trade Development Corporation (MATRADE) Chairman, Tan Sri Dr Halim Mohammad, stated that both local and international exporters could take advantage of the opportu...

The Islamic Development Bank (IsDB) Group, which is an AAA-rated multilateral Muslim development bank, has committed USD 1.2 billion in funding for post-pandemic economic recovery for its member countries. The efforts comprise of 30 Memorandums of Understandings (MOUs) and agreements across member countries in Africa and Asia. Why it Matters? The funding commitments were announced at IsDB Group’s 2021 annual meetings held in Tashkent, Uzbekistan. In the backdrop of the COVID-19 pandemic that showcased how fragile national economies in a gl...

The Islamic Corporation for the Development of the Private Sector (ICD) and Nigeria-based Jaiz Bank have signed a USD 25 Million Shariah-compliant Line of financing (LoF) agreement to support small and medium-sized enterprises (SMEs) in Nigeria, including those adversely affected by COVID-19. Why it Matters? Of this LoF, USD 10 million has been set aside under the ICD’s USD 250 million COVID-19 Support Package to help the private sector affected by COVID-19, by leveraging the expertise of the banking syst...

For the first time in 30 years, Egypt has received the approval of the Board of Governors of the Islamic Development Bank Group (IsDB) to host its annual meetings for 2022.  Why it Matters? The approval won by Egypt highlights how IsDB acknowledges the role played by Egypt within the Group and how the member states trust Egypt to organize the annual meetings, as stated by Hala El-Said, Egypt’s Minister of Planning and Economic Development and Governor in IsDB. Details Egypt commends the role played by the IsDB to tackle the econo...

The Islamic Development Bank (IsDB) signed a grant agreement for USD 265,000 on the 4th of September 2021. The funds will go towards technical assistance for the establishment of a legal framework for Islamic banking and finance in Uzbekistan. It is also aimed at developing the required regulatory, supervisory and Shariah guidelines, as well as the creation of awareness and building capacity for Islamic banking in the country. Why it Matters? IsDB Group President, Dr Muhammad Al-Jasser stated that the Bank is well equipped in terms of expertise to pr...