Malaysia-based CGS-CIMB Securities has launched two additional Shariah-compliant products named the iCash trading account (iCash Trading) and Islamic share margin financing facility (SMF-i), which will complete its suite of products and services.  Why it Matters? The launch of these products is timely as the demand for Shariah investing has been on the rise over the last few years. Further, these two products are unique in how they are tailored in accordance with investor’s preferences and trading behaviours - iCash Tra...

Egypt-based non-bank financial services provider, Contact Financial Holding SAE (Contact Financial) has announced the closure of its second Sukuk issuance of EGP 2.5 billion by its subsidiary, Sarwa Sukuk Company, according to a statement issued on the 26th of July 2021.  Why it Matters? The issuance marks Contact Financial’s second transaction, bringing its total Sukuk issued to EGP 5 billion. The latest issuance, which is a seven-year Mudarabah Sukuk, underlines Contact Financial’s robust financial position and its ability to diver...

According to S&P Global Ratings (S&P), Islamic insurers in the Gulf Cooperation Council (GCC) may see profitability dwindle in the second half of 2021 due to a harsh competitive climate and dismal performance in some sectors hit by COVID-19. Why it Matters?  S&P expects an economic turnaround in the GCC for 2021, supported by the increase in oil prices and the vaccine roll out. However, factors such as slow vaccination progress in some countries, an uneven recovery, ongoing cost-saving measures across several industrie...

United Arab Emirates (UAE)-based Ajman Bank and Commercial Bank of Dubai (CBD) have successfully concluded a USD 350 million Murabahah Syndicated Financing Facility (the Facility) on behalf of Pakistan’s Ministry of Finance, according to a statement issued on the 28th of July 2021.  Why it Matters?  The Facility, which was originally mandated for USD 200 million, was oversubscribed by over 75%, driven by robust demand from local, regional as well as international investors, and was fully subscribed by 12 banks. The Facility...

The financial sector is slowly waking up to the risk of biodiversity, but risks and opportunities are less understandable than with climate changeEmerging evidence suggests that warming could slow if Net Zero is reached by 2050; if its impacts stop accelerating, what would we have wanted to invest in more of today?Financial institutions are trying to grapple with interlinked, challenging and complex risks that need capable and skilled leaders who understand the issues The slogan “think global, act local” is gaining relevance in new ways as the world gets serious about tack...

A comparative analysis between regulatory responses to climate-related financial risks shows how the issue is permeating regulation of financial institutions outside of developed marketsThe global to-do list to create regulatory tools on climate is long and still growing, but is translating into policy changes that are already impacting financial institutionsAlthough regulation continues to evolve and develop in the area of climate risk, financial institutions need to start responding now to benefit from the feedback loop and build their own internal capacity The “Inevitabl...

Fitch Ratings (Fitch) has revised the Outlooks of six Saudi banks to Stable from Negative, while affirming their Foreign Currency and Local Currency Long-Term Issuer Default Ratings (IDRs) at ‘BBB+’. The banks include Arab National Bank (ANB), Banque Saudi Fransi (BSF), Saudi Investment Bank (SAIB), Gulf International Bank - Saudi Arabia (GIB SA), as well as two Islamic banks - Alinma Bank (Alinma) and Bank Aljazira (BAJ).  Ratings Rationale  The IDRs of the six banks are driven by sovereign support, as...

The Government of Pakistan’s Board of Investment (BOI) and the Economic Development Board (EDB) of Bahrain are set to sign a Memorandum of Understanding (MoU), providing a framework for both countries to develop and commence collaborative activities in different areas. The MoU will be signed during the second session of the Pakistan-Bahrain Joint Ministerial Commission, which will be held on the 28th-29th of July, 2021, in Manama, Bahrain. Why it Matters? Through this MoU, Pakistan and Bahrain will collaborate on projec...

As per Forbes’s Middle East’s list of largest economies within the Arab region, Egypt placed third after Saudi Arabia (ranked first) and the United Arab Emirates (second). Egypt’s gross domestic product (GDP) value is predicted to increase up to USD 394.3 billion in 2021, from USD 361.8 billion in 2020. As per the Economist’s Normalcy Index that tracks the behavioural changes of countries in the face of COVID-19, Egypt has ranked fourth with an index of 88.7, according to Egypt’s Ministry of International Cooperati...

Pricewaterhouse Coopers’(PwC) ‘Qatar Economy Watch’ report has noted that Qatar’s economic recovery has gained momentum following the improvement in energy prices and rapid vaccinations of the public.  Why it Matters? Qatar was severely affected during 2020 and the first half of 2021, following the spread of COVID-19 and drop in oil prices, which caused its economic output to fall by 3.7% in 2020. However, with energy prices recovering faster than predicted and Qatar’s restora...