Bahrain-based Al Baraka Banking Group (Al Baraka) reported profits for the second quarter and the first half of 2021 (2Q 2021 and 1H 2021, respectively). Al Baraka stated that its performance was buoyed by discipline in expenses and lower provisioning, owing to the gradually improving outlook and environment.  Why it Matters?  Abdullah Saleh Kamel, Chairman of the Board of Directors at Al Baraka, noted that the bank had put in effort to enhance financial performance and operations amidst dealing with&...

The Islamic Financial Services Board (IFSB) reported that the Islamic Financial Services Industry (IFSI) was worth an estimated USD 2.7 trillion in 2020, reflecting 10.7% year-on-year (YoY) growth. This was published in the IFSI Stability Report 2021 on the 18th of August 2021.  Why it Matters? IFSI’s performance comes about despite uncertainties caused by the COVID-19 pandemic and was led by solid improvement across three of IFSI’s segments, including Islamic banking and the Islamic...

Saudi Arabia’s National Debt Management Center (NDMC) has concluded its August 2021 issuance under the Government of Saudi Arabia’s SAR-denominated Sukuk Programme. The size of the issuance was set at SAR 11.358 billion, according to a statement issued by the NDMC on the 18th of August 2021.  Why it Matters? Saudi Arabia had around SAR 854 billion in outstanding debt at the end of 2020, of which 59% was SAR-denominated and 41% was in foreign currency. According to the NDMC, the deficit funding requirement in 2021 is estimated to be SAR 141 billion as pe...

Tanzania has witnessed the issuance of its inaugural Sukuk offering, which received high demand from investors, according to local media reports. The Sukuk amounting to TZS 2 billion was offered by Tanzania-based Islamic finance company Imaan Finance by way of private placement. The Sukuk was oversubscribed by 36% and raised TZS 2.72 billion in bids. With a TZS 1 billion greenshoe option available, Imaan Finance will be exercising the option to meet the oversubscribed amount of TZS 720 million.   Why it Matters? Proceeds of the Sukuk will be used by...

Media reports state that Indonesia’s economic growth levels will reach pre-pandemic levels only in 2022, a delay from the targets set out in the 2021 State Budget. This was stated in the 2022 draft State Budget, that was discussed by Sri Mulyani Indrawati, Indonesia’s Finance Minister, at a virtual press conference held on the 16th of August 2021. The Government of Indonesia has forecast gross domestic product (GDP) to increase 5.5% in 2022, driven by reforms set in motion, part...

RAM Ratings (RAM) has reaffirmed the AA3/Stable rating of Dynasty Harmony’s MYR 165 million Islamic Medium-Term Notes (Sukuk) (2018/2033), which comes under its MYR 300 million Sukuk Programme (2018/2036). Dynasty Harmony is a wholly-owned funding vehicle of Malaysia-based investment holding company GFM Services, and relies solely on the residual cash flow of sister company KP Mukah Development (KP Mukah), which is the concession-holder for the development and maintenance of the Universiti Teknologi MARA (UiTM) campus in Sarawak...

Maybank Asset Management (Maybank AM) in Malaysia, is aiming to raise MYR 200 million for its first Shariah-compliant mixed assets fund, Maybank Asia Mixed Assets-I Fund (the Fund). The Fund combines its latest quant investing technology with the expertise of the group’s fund managers.  Why it Matters?  Speaking at the virtual launch of the Fund on the 16th of August 2021, Ahmed Muzni Mohamed, Chief Executive Officer at Maybank Islamic Asset Management, highlighted that the technology would facilitat...

Islamic banking in North Sumatra is growing well (double digits), according to Yusup Ansori, Head at OJK Regional 5 North Sumatra. In the first half of 2021 (1H 2021), Islamic banking assets, deposits and financing in North Sumatra witnessed growth of 17.54%, 17.92%, and 16.02% year-on-year (YoY), respectively.  Why it Matters?  Ansori noted that this growth was supported by various Islamic bank products based on certain contracts and that they have significant potential for growth. Shariah financing increased its market share significantly on the ba...

Malaysia-based Maybank Islamic will support 10 Small and Medium Enterprises (SMEs), in their entry into the Singapore Halal Food Market, as part of its ‘Halal Route to Market’ (HalMap) programme. According to Datuk Mohamed Rafique Merican, Chief Executive Officer at Maybank Islamic, Malaysia External Trade Development Corporation (Matrade) and amaxMALL have teamed up with Maybank Islamic to facilitate this programme.  Why it Matters? Through HalMap, the selected SMEs will be given a distribution pla...

The Government of Indonesia is targeting debt financing from Government Securities (SBN) amounting to IDR 991.28 trillion in the 2022 State Revenue and Expenditure Budget Plan (RAPBN). According to the Financial Note delivered by Joko Widodo, President of Indonesia, on the 17th of August 2021, this debt financing target is a slight 0.2% decline compared to the 2021 State Budget outlook of IDR 992.84 trillion.  Why it Matters?  Widodo explained that IDR-denominated SBN instruments would be prioritised in efforts to meet debt financing targets through...