United Arab Emirates (UAE)-based Abu Dhabi Islamic Bank (ADIB) recorded a net profit of AED 1.1 billion for the first half of 2021 (1H 2021), an increase of 89% year-on-year (YoY) compared to a net profit of AED 588 million in 1H 2020. This was driven by a 3.4% YoY growth in total revenue to AED 2.64 billion in 1H 2021, versus AED 2.55 billion in 1H 2020.  Why it Matters? Improved business momentum and a rebound in economic activity has supported top-l...

Moody's Investors Service (Moody’s) has left Egypt's credit rating unchanged at B2 in both local and foreign currencies, whilst maintaining a "Stable Outlook" for the domestic economy. Why it Matters?  According to Mohamed Maait, Egypt’s Minister of Finance, Moody’s decision to maintain Egypt’s credit rating shows the continued confidence of international establishments, especially that of credit rating institutions, in the robustness of the country’s economy. The decision also indicates Egypt’s ability t...

MIDF Research has maintained Malaysia’s Gross Domestic Product (GDP) growth forecast for 2021 at 4.6% considering the economy’s recent developments and expectation of reopening the economy soon. While the current lockdown measures have resulted in a lag in the country’s growth rate, as soon as the public health situation improves, the economy is expected to recover. Why it Matters? Malaysia’s 2021 GDP growth rate forecast need not be adjusted to a lower percentage as there are several positive developments that signal the economy’s capacity to r...

Regulators signal growing concern about how fund managers use ESG data, and the data itselfIn a parallel move, ESG integration without positive impact or stewardship focus is losing its 'ESG' & 'sustainable' labeling advantageFund managers in Islamic markets just starting their ESG journey will be affected by stronger ESG regulations, even if the latest round won't directly impact them Greenwashing is becoming a more common point of criticism within responsible investment. The expectations are no longer just centered on whether ESG information is considered, but on the way it...

Adaeze Uzor-Kalu, Head of External Relations of FMDQ Group, stated that despite three successful Sukuk issues in Nigeria, the Sukuk market is in need of standardization and a better regulatory framework. She deemed this as essential to ensure the development of the Sukuk fixed income market and to improve its local scale.  Why it Matters? Despite Nigeria being a leader in implementing the Islamic finance regulatory framework in the West African region, Islamic financial market penetration in the country remains at l...

The Asian Development Bank (ADB)’s Trade and Supply Chain Finance Program (TSCFP) has entered into an agreement with Dubai Islamic Bank Pakistan Limited (DIBPL) with the aim of supporting trade in Pakistan. ADB expects to help DIBPL to further develop its trade finance business within Pakistan.  Why it Matters? The agreement will ensure a more streamlined and easy process for trade finance in Pakistan, supporting business activity in the country. The TSCFP has arranged more t...

Between the 22nd of April 2021 and the 2nd of July 2021, Bank Syariah Indonesia (BSI) has distributed financing worth IDR 2.11 trillion as part of the second phase of the national economic recovery (PEN) program. Speaking at a virtual press conference on the 30th of July 2021, Ngatari, Vice President Director at BSI, noted that funds had been given to 18,539 debtors, with the leverage from the fund reallocation being 0.7 times.  Why it Matters?  Through the Government of Indonesia’s PEN Programme,&nb...

The Hajj Financial Management Agency (BPKH) has once again appointed PermataBank Syariah (PermataBank) as one of its Banks Recipient of Hajj Organizing Fee Deposits (BPS-BPIH).  Why it Matters? Herwin Bustaman, Director of PermataBank's Shariah Business Unit, expressed that this would enable the provision of Islamic banking services for prospective Indonesian pilgrims through safe and reliable digital banking facilities. Placing Hajj funds in Islamic banking enables a long-term sou...

The Malaysian Rating Corporation (MARC) has affirmed its insurer financial strength (IFS) rating and counterparty credit ratings of Danajamin Nasional (Danajamin) of AAA and AAA/MARC-1, respectively. The ratings on the Senior and Subordinated Sukuk Murabahah worth up to MYR 2.0 billion (under Danajamin's Sukuk Murabahah programme) have also been affirmed at AAAIS and AA+IS. MARC maintains a Stable Outlook on all ratings. Ratings Rationale Key drivers of the IFS rating include Danaj...

Fardows, an Islamic neo bank established in the United States of America (USA), has officially opened its waitlist to consumers around the country. Fardows commenced operations to service business and consumer demand for Shariah-compliant loans, banking and other financial services. Why it Matters?  Although Islam is the fastest-growing religion globally and in the USA, Muslims’ financial requirements, remain largely unfulfilled. Muslims account for 900 million of the world's 1.3 billion unbanked population, which...