A dramatic increase is anticipated in the digitalisation of the Islamic finance sector as spending on technology and new digital financial services surges.  Digitalisation is anticipated to speed up the adoption of open banking and Islamic finance. This research was conducted among 346 leading Islamic finance professionals working across sectors by IslamicMarkets.com during August 2022.  A sharp rise in spending on technology and innovative digital financial services is expected to result in a sector-wide digitalisation in Islamic finance.  The research...

The Malaysian government has announced that its two-year Sukuk Prihatin has matured and was fully redeemed on the 22nd of September 2022, according to Finance Minister, Tengku Dato' Sri Zafrul Tengku Abdul Aziz on the 24th of September 2022. Why it Matters? The Sukuk blends digital, retail, and charity features and was created in response to numerous requests from businesses and individuals to support the nation's recovery efforts following the Covid-19 outbreak. Proceeds from the issuance were used for the Covid-19 Fund to finance public healthcare costs related to the pandemic, e-C...

Islamic finance serves as one of the main forces for change and is the solution to economic recovery and rising energy demand in Malaysia, as highlighted by Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) President, Mohd Muazzam Bin Mohamed, in a media conference on the 23rd of September 2022, in support of the upcoming Global Islamic Financial Forum 2022 (GIFF2022), set to take place in October 2022. Why it Matters?As policies, technology, and talent continue to be developed in the country, the Islamic financial technology (fintech) industry has mature...

Africa’s Islamic banking assets are anticipated to grow significantly during the next decade, considering the continent’s sizable Muslim population and fresh starting point, as per a report by Moody's Investors Service. Why it Matters? The unbanked population of Africa provide an untapped source of prospective deposits and investments, especially those who reject the conventional financial system because of their religious convictions. Nevertheless, the expansion of Islamic banking in the continent will be hampered by certain challenges over the next 12 to 1...

Sarwa Sukuk Company, a subsidiary of Contact Financial Holding (previously Sarwa Capital Holding), has received approval from the Financial Regulatory Authority (FRA) of Egypt to issue Mudarabah Sukuk worth EGP 2 billion (USD 103 million) for an 84-month term beginning on the day after the Sukuk's subscription deadline.  Why it Matters?  According to Chairman of the FRA, Mohamed Farid, the issuance supports the authority's efforts to promote the capital market by assisting the creation and development of various economic entities through various tools, including Sukuk, which...

Malaysia-based VS Capital Management Sdn Bhd (VSCM), the wholly-owned subsidiary of V.S. Industry Berhad (VS), has issued an MYR 500 million (USD 114 million) nominally valued Islamic Medium-Term Notes (Sukuk Wakalah), based on Wakalah Bi Al-Istithmar, as per a filing with Bursa Malaysia on the 21st of September 2022. Why it Matters? The proceeds from the Sukuk offering will be used for group’s working capital needs and expenditures, general business objectives, and refinancing of current financings or borrowings. It will also be used to cover costs and expenses a...

The Islamic Corporation for the Development of the Private Sector (ICD) has announced the signing of a Murabaha Facility Agreement worth USD 15 Million with Joint-Stock Company Joint Venture Uzbek Leasing International for the company to finance private sector businesses, particularly Small and Medium Enterprises (SMEs) in Uzbekistan, as per a release issued on the 15th of September 2022. Why it Matters? The line of financing represents the fourth Murabaha financing facility extended by ICD to Uzbek Leasing International. Three lines of funding worth a combined USD 13 million wer...

Nigeria-based TAJ Bank has announced the start of an NGN 10 billion (USD 23 million) 15% Series 1 Sukuk issuance programme, as per a bank statement on the 20th of September 2022. Why it Matters?  Proceeds from the Sukuk will be utilised to increase Taj Bank's Tier 1 Capital. The offer has a minimum order quantity of 100 units, with each unit priced at NGN 1,000 (USD 2.31), and increments of 50 units moving forward. The Sukuk carry a perpetual tenor, however, the certificates are callable after a minimum of 5 Years.  Details  The offer runs from the 20th o...

Malaysia-based property developer, UEM Sunrise Berhad (UEM Sunrise) announced that it has concluded the issuance of Islamic Medium-term Notes (IMTNs) with a nominal value of MYR 295 million (USD 65 million), under its IMTNs programme, as per a filing with Bursa Malaysia on the 19th of September 2022, Why it Matters?  The IMTNs' proceeds will be used for UEM Sunrise's and its subsidiaries' general corporate purposes which comply with Shariah, including the purchase of land and businesses as well as investments. The funds will also be put aside for capital expenditures, genera...

Increasing interest in the Metaverse and acceptance of cryptocurrencies and digital assets. Improvements in regulation are starting to convince the sceptics in the Islamic finance sector. This research was conducted among 346 leading Islamic finance professionals working across sectors by IslamicMarkets.com during August 2022.  There is growing acceptance of crypto and digital assets and rising interest in the Metaverse, according to a recent study. The research, undertaken by IslamicMarkets.com to support the Global Islamic Finance Forum 2022 (GIFF2022) set to t...