The International Islamic Trade Finance Corporation (ITFC) has partnered with the Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC) to launch a technical report on the potential economic impacts of the African Continental Free Trade Area (AfCFTA) on selected Organisation of Islamic Cooperation (OIC) countries, namely Côte d’Ivoire, Egypt, Mozambique, Tunisia, Guinea and Uganda. Why it Matters? The key findings of the report, which were unveiled at a virtual event, covered topics such as the facil...

In a statement issued on the 11th of July 2021, Oman’s Capital Market Authority (CMA) has invited industry stakeholders to provide comments, observations and input on the draft Sukuk and Bonds Regulation posted on the CMA’s website.  Why it Matters?  The objective of the draft regulation is to regulate the issuance of Sukuk and bonds by adding a set of detailed clauses prepared by the CMA for more resilience to ease the processes of issuing debt as financing instruments. The draft regulati...

Abu Dhabi Islamic Bank (ADIB), a United Arab Emirates financial institution, and Refinitiv, a London Stock Exchange Group business, have announced the launch of the 6th edition of Ethical Finance Innovation Challenge and Awards (EFICA), according to a statement issued by ADIB on the 12th of July 2021.  Why it Matters?  The EFICA initiative recognises companies and individuals that have developed innovative solutions in the Islamic finance industry under two categories, the Ethical Finance Initiative Award and t...

Malaysia’s Finance Minister, Tengku Datuk Seri Zafrul Abdul Aziz, stated that the remaining MYR 500 (per registered business) would be deposited into each of the accounts of one million micro, small and medium-sized enterprises (MSMEs) from the 12th of July 2021. Aziz noted in a statement, that this MYR 500 to be paid out was the remaining assistance promised under the Pemerkasa Plus assistance programme. Under the Prihatin Special Grant 3.0 system, a total of MYR 1.5 billion, or MYR 1,500 per eligible&n...

Bank Syariah Indonesia (BSI) can catalyse the integration of the Shariah financial institutions with the real sector to form a Shariah economic ecosystem. Member of the House of Representatives Commission XI, the PKS Faction, Anis Byarwati, conveyed a number of points with regard to BSI’s performance and its role in realising the goal of an integrated financial system within Indonesia. Why it Matters?  Islamic financial institutions need to see improvement in order to establish an integrated institution between the...

Following reports pertaining to the planned roll-out of a digital currency in the United Arab Emirates (UAE) as part of the Central Bank of the UAE’s 2023-2026 strategy, a spokeswoman for the Central Bank has denied any such reports. The only form of legal tender in the UAE at present is the UAE Dirham. Neither cryptocurrency nor digital assets have been acknowledged or accepted as a legal tender, according to media reports.   Why it Matters? Central banks across the world have been looking to develop dig...

The Federal Government of Nigeria has raised a total of NGN 360 billion in Sukuk since its first issuance in 2017, according to data from the Federal Ministry of Works and Housing and the Debt Management Office (DMO). According to the DMO, the funds are to be used for the construction and rehabilitation of important economic infrastructure projects across Nigeria, particularly road development.   Why it Matters? The Federal Government issued the bonds in an effort to raise Government funds through div...

Sustainable finance is not doing enough to ensure that the need for low-carbon energy investment is matched with access to capital, and Net Zero in developing countries could be pushed back 5-10 years as a result of this ‘climate investment trap’. A new report from University College London (UCL) shows how the lack of financial market development in developing countries could perpetuate lower investment in low-carbon energy sources, which would lead to worse climate outcomes for these countries and perpetuate levels of international inequality that are incompatible with achiev...

Over the past five years, Islamic fintech has shown robust potential, according to Tala Al-Jabri, Partner at HOF Capital. In particular, opportunities lie in Shariah-compliant digital banks that target Muslim-majority nations, providing a gateway into ethical financing. Why it Matters? Within the Organisation of Islamic Cooperation (OIC) nations, Islamic fintech was valued at USD 49 billion (based on transaction volume) in 2020, accounting for 0.7% of global fintech transactions. Islamic fintech has emerged as the fastest growing segment in the financial...

According to media reports, a USD 350 million Sukuk deal from Private Department of Sheikh Mohamed Bin Khalid Al Nahyan (PD), a real estate company (based out of Abu Dhabi in the United Arab Emirates and owned by members of the royal family), was cancelled late on the 7th of July 2021.  Why it Matters?  Given the high yields offered by such transactions, bond deals are rarely cancelled as investor demand is usually strong. Over the past few years, these cancellations amongst Gulf issuers have been sporadic. A note sent o...