The World Bank’s East Asia and Pacific Economic Update, October 2020 has reported a change in the gross domestic product (GDP) forecast for Malaysia, projecting a contraction of 4.9% for 2020, higher than the World Bank’s previous expectation of 3.1%. The World Bank’s revised forecast for Malaysia is in line with the 2020 GDP forecast by Bank Negara Malaysia (BNM), with BNM expecting a contraction of between 3.5-5.5% for 2020.  According to the report, the change in estimate came about following a stronger than expected GDP contraction in the second quar...

A new report by Moody’s Investors Service (Moody’s) has revealed a consistent and resilient demand within the Islamic asset management sector for Shariah-compliant investments. Large Islamic funds within the Gulf Cooperation Council (GCC) region have experienced positive net inflows despite the impact of COVID-19, weaker markets and lower oil prices. This is in contrast to net outflows seen by several peers in the Western part of the world.  Vanessa Robert, Vice President and Senior Credit Officer at Moody’s, stated that Islamic asset managers...

The role of Islamic banking financing in Pakistan’s agriculture and small and medium-sized enterprise (SME) sectors is low and remains untapped, according to the country’s banking industry sources.  The sources stated that although 68% of Pakistan’s population is associated with agriculture, Islamic banking only financed 0.52% of the agriculture sector, and emphasized the need for Islamic banking to come up with microfinance facilities. In addition, the sources noted that Islamic banking had only provided financing for up to...

RAM Ratings (RAM) has assigned an AA2 rating to RHB Bank’s (the Group’s) proposed MYR 10 billion Multi-Currency Islamic Medium-Term Note (MTN) Programme with a Stable Outlook, according to a recent statement. The rating reflects the Islamic MTN’s ranking as a senior unsecured obligation of RHB Bank.  In addition, RAM has reaffirmed the entity and debt ratings of RHB Bank and its core subsidiaries, with all ratings maintaining a Stable Outlook. The Financial Institution Ratings (FIR) of RHB Bank, RHB Islamic Bank an...

Proceeds from the sale of Indonesia’s Retail State Sukuk Series SR-013 (SR-013) have reached a total volume of IDR 25.67 trillion over the offering period which lasted from the 28th of August 2020 to the 23rd of September 2020, according to the Directorate General of Financing and Risk Management (DJPPR) of Indonesia’s Ministry of Finance.  Local media reported that the SR-013 achieved the largest sales ever as well as the greatest number of investors throughout the issuance of Online Retail Government Securities (SBN) since 2018, with sale...

The Iranian Government-run Press TV, citing a Finance Ministry statement, has recently announced that the country will allow holders of Government Sukuk to be repaid in crude oil exports. If implemented, this would be the first time that oil would be used as a form of repayment of Sukuk issued in the local market.  The report stated that Sukuk holders with securities maturing prior to May 2021 would be entitled to apply to receive the equivalent value of their Sukuk bonds and profits due on them in the form of crude cargo.  Although further details of the impl...

Speaking at the fourth Global Islamic Economy Summit hosted virtually recently, Director of Strategy and Planning at the Dubai Islamic Economy Development Centre (DIEDC), Wadha Buti Al Ghafli, highlighted the importance of the Islamic finance sector, adding that the DIEDC has placed the industry at the forefront of its strategic initiatives. Al Ghafli discussed the performance of the global Sukuk market in 2019, when the sector saw record issuances valued at more than USD 162 billion, an increase of 31% year-on-year (YoY).  The discussion also loo...

Fintechs are being viewed as the new catalyst for growth in the banking sector, according to Burak Zatiturk, PwC Qatar Financial Services Leader. In an interview with local media, Zatiturk discussed the role of Fintechs in improving cost-effectiveness, accessibility, security and inclusion within the banking sector. Added to this, Fintechs are anticipated to support in further developing financial products as well as access to domestic capital, leading to improved expertise and customer intimacy between banks and their customers....

A new online marketplace known as Halal Integrated Platform (HIP) to be launched by the Halal Development Corporation (HDC), Malaysia’s Government-backed Halal industry agency, is expected to drive the growth of the country’s Halal industry.  In a recent interview with local media, HDC Chief Executive Officer Hairol Ariffein Sahari stated that the HIP, which will officially be launched in December 2020, will initially aim to have 5,000 companies and 20 partners including government agencies, banks, insurers and logistics...

Catalysing The Growth Of Halal Industry With Islamic Finance - IslamicMarkets LIVE Briefing NoteHalal, Shariah