The ratification of the seventh protocol on financial services of the Association of Southeast Asian Nations (ASEAN) Framework Agreement on Services (AFAS) would enable Indonesia’s Shariah general insurance industry to develop via investment and competition, according to the country’s Finance Minister Sri Mulyani Indrawati.  Speaking at a recent joint meeting of Commission XI of the House of Representatives in Jakarta, Indrawati emphasized that the ratification of the protocol would not require any amendments in existing Indonesian regulations,...

The Central Bank of Kuwait (CBK) has recently approved the establishment of the Higher Committee of Shariah Supervision (the Committee), according to media reports.  The establishment of the Committee will maintain financial stability and strengthen Shariah supervision and compliance in Islamic banking and financial institutions in line with international best practices, according to a recent statement released by CBK.  The Committee will present proposals and suggestions to CBK regarding Shariah compliance of financial trans...

RAM Ratings (RAM) has reaffirmed Chellam Plantation (CP)’s AAA (fg)/Stable rating on the MYR 150 million 10-year tranche (2016/2026), under CP’s MYR 300 million Guaranteed Sukuk Murabahah Programme (2016/2033).  This rating is based on the unconditional and irrevocable guarantee extended by Danajamin Nasional Berhad, which carries a rating of AAA/Stable/P1.  CP is an investment-holding company, whose subsidiaries are directly involved in oil palm cultivation, as well as the milling of palm oil. CP’s stand-alone credit file is constrained...

Shuaa Capital (SC) announced that it has launched three open-ended Shariah-compliant funds, with initial commitments of USD 75 million, in a statement to the Dubai Financial Market. The funds, aimed at qualified institutional investors, were launched through SC’s wholly-owned subsidiary, Shuaa GMC Limited, and offered through the Allfunds Bank platform, the largest global fund distribution network.  The Shuaa High Yield Sukuk Fund will invest in a portfolio of Islamic bond instruments, including Shariah-compliant fixed-income investments and high-yield Sukuk, t...

Deputy Governor of Bank Indonesia (BI), Sugeng, has stated that Indonesia has the potential to become the centre of the global Islamic finance economy, as it has both demand and supply-side dynamics in its favour. He made this comment whilst speaking at the ISEF 2020 High Level Seminar on Halal Lifestyle: "New Strategy and Business Model of Halal. Business" in Jakarta, Indonesia, held on the 2nd of October 2020.  According to Sugeng, on the demand side, Indonesia has a population of over 260 million (majority Mus...

Citing the profits made by nine banks in Malaysia between May and June 2020, former Prime Minister, Najib Razak urged banks to extend the moratoriums on loans, stating that banks should account for the recent increase in COVID-19 cases in the country, that has led to restrictions as well.  According to Razak, the rise in COVID-19 cases is certain to impact the local economy, as well as the income to the country, and therefore warrants an extension to the moratorium, until the end of the year.  Razak suggested that if banks we...

According to a statement issued on the 2nd of October 2020, the State Bank of Pakistan (SBP) has updated guidelines (previously introduced in 2004) pertaining to the establishment of Shariah-compliant businesses in Pakistan, for Development Financial Institutions (DFIs).  The SBP states that the updated guidelines seek to facilitate new entrants into the Islamic banking industry through the establishment of stand-alone, fully-fledged Islamic banks, Islamic banking subsidiaries by conventional banks, as well as the commence...

The Central Bank of the United Arab Emirates (CBUAE) aims to explore opportunities to develop and expand the scope of Dubai’s Shariah-compliant banking sector, through its agreement with the Dubai Islamic Economy Development Centre (DIEDC).  In a statement released, both the CBUAE and the DIEDC acknowledged that the agreement seeks to “accelerate opportunities” in the Islamic finance sector via a host of activities which include exchanging knowledge, publishing joint research, developing awareness projects, building technical capabili...

Protecting the Interest of Profit-Sharing Investment Account Holders in Islamic Banks: The Nigerian ExperienceHibah, Islamic banking, Mudarib, Shariah, Investment Risk Reserve, Profit Equalization Reserve, Provision, Reserves, Restricted Investment Account

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