In the first semester of 2021, Indonesia-based BCA Syariah saw a financing growth of 3.47% year-on-year (YoY) or IDR 5.9 trillion compared to IDR 5.7 trillion, in the same period of the previous year. Why it Matters?  According to Pranata, Director of BCA Syariah, BCA Syariah is still challenged by the economic slowdown and low demand for financing for business expansion amidst COVID-19. When compared to the average growth of BCA Syariah in the past years, financing growth&nbs...

The Shariah Business Unit of PT Bank CIMB Niaga (CIMB Niaga Syariah) in Indonesia saw its profit rise 35% year-on-year to IDR 851 billion as of the 30th of June 2021.  Why it Matters?  This double-digit growth in profit was driven by the consumer banking and the micro, small and medium-sized enterprises (MSME) segments. The consumer banking segment, which accounts for over 50% of CIMB Niaga Syariah’s total financing portfolio, grew 20% year-to-date (YTD). This growth was aided by rises in mortgage product...

On the 2nd of August 2021, Hong Kong-based Greenpro Capital announced that it had signed a Public and Private Partnership (PPP) Investment Agreement with The International Halal Trade Hub & Service (IHTHS) Corporation, with the witness of the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) Business Council. Why it Matters?  The objective of this agreement is to build a Shariah-compliant Digital Finance and Economic Zone in Brunei, ...

The Chartered Institute of Islamic Finance (CIIF) states that Malaysia’s Islamic financial institutions are ahead of the curve in implementing environment, sustainability and governance (ESG) with the introduction of the Value-Based Intermediation (VBI) initiative in 2017. The CIIF stated this at the #CIIF.Tallks webinar session named ESG and Islamic Finance. Why it Matters? The adoption of ESG principles in the Islamic financial services sector is anticipated to bring large benefits to consumers, investors and the environment. In ord...

Inarno Djajadi, President Director of the Indonesia Stock Exchange (IDX) stated that the Islamic capital market of Indonesia is rapidly growing at present and it is closely followed by capital market investors in large numbers.  Why it Matters? The IDX has made Indonesia an increasingly popular investment destination amongst Indonesia’s public, having received the award for The Best Islamic Capital Market at the Global Islamic Finance International award event for the past two years. According to the IDX, the number of&...

Kuwait Finance House (KFH), is planning to finance government projects in Saudi Arabia, according to Abdulwahab Al-Roshood, Acting Chief Executive Officer of KFH.  Why it Matters?  KFH is seeking to contribute to the financing of the Government of Saudi Arabia and infrastructure projects in sectors such as electricity and oil. Another mega project that it is eyeing is NEOM, a USD 500 billion flagship business zone. The plan behind NEOM is to diversify the economy of Saudi Arabia, which is the world’s largest oil exporter. Ro...

microLEAP, a Shariah-compliant peer-to-peer (P2P) financing operator, recently announced its fastest ever fully funded investment note, having raised MYR 300,000 in a mere 1 hour and 47 minutes.  Why it Matters?  Its new product, microLEAP+, which was launched a few weeks ago, operates with the objective of serving small and medium-sized enterprises via its investment notes that range from MYR 50,000 to MYR 500,000 and that are all Shariah-compliant. The operator also offers larger-ticket issuances, which include short-term notes and invoic...

The Islamic Development Bank (IsDB) and Bloomberg LP aim to work together to launch a financial education programme for university students in Bangladesh, Egypt, Kazakhstan, Kuwait, Malaysia, Nigeria, Oman, Saudi Arabia and Uzbekistan. According to a press release issued on the 5th of August 2021, the specific universities will be announced within the next few months.  Why it Matters? This programme will use the Bloomberg Terminal to enhance growth in the Islamic finance sector and will empower university students&n...

In a statement issued on the 4th of August 2021, the Capital Market Authority (CMA) of Oman has announced that they have received the feedback, observations and opinions from stakeholders on the Draft Bonds and Sukuk Regulation. The Draft Regulation includes clauses on sustainable and responsible investments (SRI), which are financing instruments that include but are not limited to the issuance of sustainable bonds and Sukuk for green, blue and social projects, such as Waqf Sukuk.  Why it Matters? Proceeds of the SRI included in the Draft Regulation will be used exclusi...

The Securities Commission Malaysia (SC) has launched the Shariah Screening Assessment Toolkit (Toolkit) to provide guidance in screening the Shariah status of unlisted micro, small and medium enterprises (MSMEs). The Toolkit was launched at the inaugural SC-Halal Development Corporation (HDC) Forum 2021 held virtually on the 5th of August 2021. Why it Matters? According to Datuk Syed Zaid Alba, Executive Chairman of the SC, the Toolkit is part of the SC’s ongoing efforts to boost the ecosystem for Shariah-compliant fundraising activities. Syed Zaid&...