In an effort to structure and regulate the digital banking sector across Indonesia, which has increasingly gained popularity, the Financial Services Authority of Indonesia (OJK) issued regulations in August 2021.  Why it Matters? The crisis created by the COVID-19 has brought the digital economy to the forefront highlighting the need to structure it. Electronic commerce (E-commerce) is predicted to grow significantly in the next few years and will prove to be crucial to attract entrepreneurship and investors. Indonesia as a country has huge potential to develop e-comme...

Fitch Ratings (Fitch) has assigned Bahrain-headquartered Ahli United Bank’s (AUB; rated BB+/bb/Stable) upcoming senior unsecured Sukuk ranging between USD 500 million and USD 750 million, an expected rating of ‘BB+(EXP)’. The Sukuk will be issued through AUB Sukuk Limited (AUBSL), which is the trustee special purpose vehicle established solely to issue Sukuk for AUB. According to media reports based on a bank document shown on the 31st of August 2021, AUB has hired banks to arrange for the sale of five-year USD-denominated senior Sukuk.  Ratings Rat...

Indonesian state-owned contractor company Hutama Karya (HK) will issue debt securities worth a total of IDR 1.5 trillion, made up of bonds and Sukuk. According to a recent prospectus, HK will offer Sustainable Sukuk Mudharabah I Phase I 2021 amounting to IDR 500 billion, which is part of HK’s Sustainable Mudharabah Sukuk sustainable public offering (PUB) with a target of IDR 1 trillion. In addition, HK will conduct a PUB of Phase I 2021 Shelf-Registered Bonds with a principal of IDR 1 trillion, which is part of HK’s PUB Sustainable Bonds...

On the 29th of August 2021, a Memorandum of Understanding (MoU) was signed between Al Moammar Information Systems (MIS) and Al Rajhi Capital, to launch a special Shariah-compliant investment fund worth SAR 1 billion (USD 266.6 million).  Why it Matters?  The aim of this fund is to realise regular income for investors via financing and operational leasing of technology, medical equipment and digital infrastructure, primarily in FinTech and medical equipment in the private, semi-governmental, and governmental sectors in Sa...

For the first time in Malaysia’s history, its Finance Ministry released a Pre-Budget Statement (PBS) for the government’s Budget of 2022, in an effort to improve the annual budget preparation process and to be more transparent.  Why it Matters? Datuk Seri Tengku Zafrul Abdul Aziz, the Finance Minister of Malaysia believes that the PBS will help enhance investor confidence in Malaysia’s fiscal management. It will also provide stakeholders more means to review and contribute towards the formation of a budget that focuses on the n...

Speaking at the Association of Southeast Asian Nations (ASEAN) Business Advisory Council Business and Investment Roundtable 2021, Hajah Noraini binti Haji Sulaiman, Deputy Managing Director 1 at Bank Islam Brunei Darussalam (BIBD), noted that financial literacy is a critical component in the well-being of people and society as a whole, according to Islamic finance. The event which was held virtually on the 30th of August 2021 saw global key industry players and those from Brunei representing the public, private sectors and non-governmental...

Bank Muamalat Indonesia (BMI) and Indonesia Financial Services Authority (OJK) are collaborating to improve Islamic financial literacy in the country by using a multimedia and digital approach.Why it Matters? The collaboration aims to educate the public as well as boost the Shariah economy in Indonesia, according to Achmad Kusna Permana, President Director of BMI, who was speaking at a virtual national seminar titled ‘Islamic Financial Literacy in the Digital Era’ and Launching of the Shariah Literacy Movement (GEULIS), which took place on the 28th of August 2021. Permana noted...

BIMB Holdings (BIMB) recorded a net profit of MYR 184.6 million for the second quarter ended 30th of June 2021 (2Q 2021), an increase of 21% year-on-year (YoY). This was mainly due to there being no modification loss in the quarter under review as compared to the corresponding quarter of the previous year. Revenue for 2Q 2021 increased by 9.6% YoY to MYR 1.25 billion.Why it Matters?The increase in  earnings of BIMB was due to the improved performance of its operating subsidiary, Bank Islam Malaysia (Bank Islam). Bank Islam recorded a profit before zakat and tax (PBZT) of MYR 475 milli...

Malaysia’s Halal industry has grown in importance and quality to become one of the country's key engines of economic growth, according to Hairol Ariffein Sahari, Chief Executive Officer at Halal Development Corporation (HDC). Discussing the impacts of COVID-19 on Halal businesses, at the soft launch of the World Halal Business Conference (WHBC) 2021, Hairol quoted results from a survey on the ‘Effects of Covid-19 on the Economy and Companies/Business Firms - Round 1’. The survey showed that during the first Movement Control Order (MCO) imposed in 2020, around 53.4% of surveyed businesses were...

Dr Arif Alvi, President of Pakistan has called for the establishment of Shariah-compliant financial instruments in the country, at the 4th Round Table Conference (RTC-IV) on Islamic Banking held in Karachi on the 30th of August 2021.Why it Matters? President Alvi called for the establishment of Shariah-compliant instruments to promote spiritual satisfaction among people making use of loan facilities from banks. In addition, he stressed the need of creating awareness among women about loan facilities, and stated that the banking sector should take measures to provide loans to women to encourage...