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Significant Growth Anticipated in Islamic Fintech Solutions

Islamic financial technology (fintech) solutions, which remain underfunded and open to innovation, are said to have the potential to set dramatic disruption and transformation in the USD 2.7 trillion-valued Islamic finance industry. Why it Matters? The Islamic fintech transaction volume within the Organisation of Islamic Cooperation's (OIC) 57 member countries stood at USD 49 billion in 2020, accounting for only 0.7% of the global fintech transaction volume, as per DinarStandard (DS) and Elipses' Global Islamic Fintech Report 2021. However, Islamic fintech was expected to witness...

IM Insights | May 19, 2022

Significant Growth Anticipated in Islamic Fintech Solutions

Significant Growth Anticipated in Islamic Fintech Solutions

Islamic financial technology (fintech) solutions, which remain underfunded and open to innovation, are said to have the potential to set dramatic disruption and transformation in the USD 2.7 trillion-valued Islamic finance industry. Why it Matters? The Islamic fintech transaction volume within the Organisation of Islamic Cooperation's (OIC) 57 member countries stood at USD 49 billion in 2020, accounting for only 0.7% of the global fintech transaction volume, as per DinarStandard (DS) and Elipses' Global Islamic Fintech Report 2021. However, Islamic fintech was expected to witness...

IM Insights | May 19, 2022

Oman’s Islamic Banking Sector Continues to Grow Supported by Increasing Awareness and High Retail Demand

The Islamic banking sector in the Sultanate of Oman (Oman) continues to expand rapidly, owing to rising consumer knowledge of Shariah-compliant products, high retail demand, and supporting laws. According to the Central Bank of Oman, on the 15th of May 2022, the country's Islamic banks and windows had total assets of OMR 6 billion (USD 15.6 billion) in the first quarter of 2022 (1Q 2022), up 10.7% year-on-year (YoY). Why it Matters? There are two fully-fledged Islamic banks in Oman, Bank Nizwa and Alizz Islamic Bank, as well as five Islamic banking windows at conventional banks, all...

IM Insights | May 18, 2022

Oman’s Islamic Banking Sector Continues to Grow Supported by Increasing Awareness and High Retail Demand

Oman’s Islamic Banking Sector Continues to Grow Supported by Increasing Awareness and High Retail Demand

The Islamic banking sector in the Sultanate of Oman (Oman) continues to expand rapidly, owing to rising consumer knowledge of Shariah-compliant products, high retail demand, and supporting laws. According to the Central Bank of Oman, on the 15th of May 2022, the country's Islamic banks and windows had total assets of OMR 6 billion (USD 15.6 billion) in the first quarter of 2022 (1Q 2022), up 10.7% year-on-year (YoY). Why it Matters? There are two fully-fledged Islamic banks in Oman, Bank Nizwa and Alizz Islamic Bank, as well as five Islamic banking windows at conventional banks, all...

IM Insights | May 18, 2022

Virtual Roadshows During a Pandemic

A physical roadshow with investors during a pandemic is almost impossible. Virtual roadshows become instant marketing success for fixed-income instruments. They are now considered fundamentals during the COVID-19 situation and its Omicron variant. For the first time, almost all fixed-income instruments had no choice back in 2020 but to use this tool if they wanted to raise funds. BackgroundDue to travel restrictions from COVID-19, there were almost no physical meetings with fixed-income investors for debt capital market deals that took place in 2020. Nevertheless, the Sukuk industry...

Mohammed KHNIFER | May 13, 2022

Virtual Roadshows During a Pandemic

Virtual Roadshows During a Pandemic

A physical roadshow with investors during a pandemic is almost impossible. Virtual roadshows become instant marketing success for fixed-income instruments. They are now considered fundamentals during the COVID-19 situation and its Omicron variant. For the first time, almost all fixed-income instruments had no choice back in 2020 but to use this tool if they wanted to raise funds. BackgroundDue to travel restrictions from COVID-19, there were almost no physical meetings with fixed-income investors for debt capital market deals that took place in 2020. Nevertheless, the Sukuk industry...

Mohammed KHNIFER | May 13, 2022

DDCAP Group Appoints Husain Abdulwahed Alkhaja as GCC Regional Director and DDCAP (DIFC) Limited Director

DDCAP Group has announced the appointment of Husain Abdulwahed Alkhaja as its Gulf Cooperation Council (GCC) Regional Director and as a Director of DDCAP (DIFC) Limited, according to a press release issued on the 12th of May 2022. Why it Matters? Husain brings a 30-years banking experience in the Islamic financial marketplace from various esteemed financial institutions, regionally and internationally. According to Stella Cox CBE, DDCAP Group Managing Director, Husain will work with the Group directors to further develop its products and services offering as it expands its regional f...

IM Insights | May 13, 2022

DDCAP Group Appoints Husain Abdulwahed Alkhaja as GCC Regional Director and DDCAP (DIFC) Limited Director

DDCAP Group Appoints Husain Abdulwahed Alkhaja as GCC Regional Director and DDCAP (DIFC) Limited Director

DDCAP Group has announced the appointment of Husain Abdulwahed Alkhaja as its Gulf Cooperation Council (GCC) Regional Director and as a Director of DDCAP (DIFC) Limited, according to a press release issued on the 12th of May 2022. Why it Matters? Husain brings a 30-years banking experience in the Islamic financial marketplace from various esteemed financial institutions, regionally and internationally. According to Stella Cox CBE, DDCAP Group Managing Director, Husain will work with the Group directors to further develop its products and services offering as it expands its regional f...

IM Insights | May 13, 2022

Malaysia's Bank Rakyat Issues MYR 1.5 Billion Senior Sukuk Wakalah under 10 Billion Sukuk Wakalah Programme

Malaysia-based Bank Rakyat has announced the issuance of Senior Sukuk Wakalah worth MYR 1.5 billion (USD 341 million) under its MYR 10 billion (USD 2.3 billion) Sukuk Wakalah Programme and through its special purpose vehicle Imtiaz Sukuk II Berhad, as per a statement made by the bank on the 12th of May 2022. Why it Matters?  The Sukuk, issued in two tranches comprising a five-year tenured MYR 700 million (USD 159 million) offering and a seven-year tenured MYR 800 million (USD 182 million) offerings, received a final bid-to-cover ratio of 1.30 times the final issue size,...

IM Insights | May 13, 2022

Malaysia's Bank Rakyat Issues MYR 1.5 Billion Senior Sukuk Wakalah under 10 Billion Sukuk Wakalah Programme

Malaysia's Bank Rakyat Issues MYR 1.5 Billion Senior Sukuk Wakalah under 10 Billion Sukuk Wakalah Programme

Malaysia-based Bank Rakyat has announced the issuance of Senior Sukuk Wakalah worth MYR 1.5 billion (USD 341 million) under its MYR 10 billion (USD 2.3 billion) Sukuk Wakalah Programme and through its special purpose vehicle Imtiaz Sukuk II Berhad, as per a statement made by the bank on the 12th of May 2022. Why it Matters?  The Sukuk, issued in two tranches comprising a five-year tenured MYR 700 million (USD 159 million) offering and a seven-year tenured MYR 800 million (USD 182 million) offerings, received a final bid-to-cover ratio of 1.30 times the final issue size,...

IM Insights | May 13, 2022

Green Bonds Don’t Make a Bond Fund ‘Green’

Environmental, Social, and Governance (ESG) bond funds’ sustainability levels can’t be measured by ‘green bond’ share. They require a more thorough comparison of the investors’ sustainability theory of change against the fund’s ESG policies & implementation investments. An analysis of the ESG bond market has found a surprisingly small proportion of assets were invested in green bonds in most fundsSome ‘dark green’ funds had limited green bond exposure, but that may not be as indicative of the fund’s ‘green-ness’ as appe...

Blake Goud | May 12, 2022

Green Bonds Don’t Make a Bond Fund ‘Green’

Green Bonds Don’t Make a Bond Fund ‘Green’

Environmental, Social, and Governance (ESG) bond funds’ sustainability levels can’t be measured by ‘green bond’ share. They require a more thorough comparison of the investors’ sustainability theory of change against the fund’s ESG policies & implementation investments. An analysis of the ESG bond market has found a surprisingly small proportion of assets were invested in green bonds in most fundsSome ‘dark green’ funds had limited green bond exposure, but that may not be as indicative of the fund’s ‘green-ness’ as appe...

Blake Goud | May 12, 2022

Abu Dhabi Islamic Bank Arranges Shariah-Compliant Financing of USD 135 Million to Build Gas Carriers for ABGC

Abu Dhabi Islamic Bank (ADIB) has announced its arrangement and structuring of an AED 495 million (USD 135 million) Shariah-compliant transaction for the construction of two Very Large Gas Carriers (VLGCs) for Al Seer Marine and BGN International’s joint venture, ABGC, on the 11th of May 2022.  Why it Matters? The facility will fund the construction of two 86,000 cubic meters VLGCs to be built by Hyundai Heavy Industries. In March 2022, construction began on the first vessel, Lucky Gas, to be delivered in March 2023, while construction on the second vessel, North Gas, begins in...

IM Insights | May 12, 2022

Abu Dhabi Islamic Bank Arranges Shariah-Compliant Financing of USD 135 Million to Build Gas Carriers for ABGC

Abu Dhabi Islamic Bank Arranges Shariah-Compliant Financing of USD 135 Million to Build Gas Carriers for ABGC

Abu Dhabi Islamic Bank (ADIB) has announced its arrangement and structuring of an AED 495 million (USD 135 million) Shariah-compliant transaction for the construction of two Very Large Gas Carriers (VLGCs) for Al Seer Marine and BGN International’s joint venture, ABGC, on the 11th of May 2022.  Why it Matters? The facility will fund the construction of two 86,000 cubic meters VLGCs to be built by Hyundai Heavy Industries. In March 2022, construction began on the first vessel, Lucky Gas, to be delivered in March 2023, while construction on the second vessel, North Gas, begins in...

IM Insights | May 12, 2022

National Shipping Company of Saudi Arabia Set to Issue SAR-denominated Sukuk   

Saudi Arabia’s national shipping carrier Bahri (formerly known as the National Shipping Company of Saudi Arabia (NSCSA)) has announced its intention to issue SAR 3.9 billion (USD 1.04 billion) worth of SAR-denominated Sukuk, according to a bourse filing made on the 10th of May 2022. Why it Matters?  The issuance comes after a board decision made on the 9th of May 2022 and will be used to refinance the company’s existing Sukuk expected to mature in July this year, subject to the relevant regulatory authorities’ approval. Details Created in 1978, Bahri is 22% owned by th...

IM Insights | May 11, 2022

National Shipping Company of Saudi Arabia Set to Issue SAR-denominated Sukuk   

National Shipping Company of Saudi Arabia Set to Issue SAR-denominated Sukuk   

Saudi Arabia’s national shipping carrier Bahri (formerly known as the National Shipping Company of Saudi Arabia (NSCSA)) has announced its intention to issue SAR 3.9 billion (USD 1.04 billion) worth of SAR-denominated Sukuk, according to a bourse filing made on the 10th of May 2022. Why it Matters?  The issuance comes after a board decision made on the 9th of May 2022 and will be used to refinance the company’s existing Sukuk expected to mature in July this year, subject to the relevant regulatory authorities’ approval. Details Created in 1978, Bahri is 22% owned by th...

IM Insights | May 11, 2022

Implementation of the EU Taxonomy Could Weaken ESG Incentives Outside of Europe

The complexity of the European Union's (EU) Sustainable Finance Disclosure Regulation will make taxonomy alignment a central focus for many end-investors, and this will affect how intermediaries investThe binary nature of the taxonomy will focus investor efforts on how to improve their taxonomy alignment at the margin, which could reduce the real economy impact of engagementAs taxonomy alignment reporting is phased in, non-European investees may paradoxically benefit less in the short-run by aligning Environmental, Social, and Governance (ESG) practices with EU standards and by making na...

Blake Goud | May 09, 2022

Implementation of the EU Taxonomy Could Weaken ESG Incentives Outside of Europe

Implementation of the EU Taxonomy Could Weaken ESG Incentives Outside of Europe

The complexity of the European Union's (EU) Sustainable Finance Disclosure Regulation will make taxonomy alignment a central focus for many end-investors, and this will affect how intermediaries investThe binary nature of the taxonomy will focus investor efforts on how to improve their taxonomy alignment at the margin, which could reduce the real economy impact of engagementAs taxonomy alignment reporting is phased in, non-European investees may paradoxically benefit less in the short-run by aligning Environmental, Social, and Governance (ESG) practices with EU standards and by making na...

Blake Goud | May 09, 2022

Nigerian Government Approves NGN 3 Billion Sukuk Fund for Numan-Jalingo Road Rehabilitation Project

The Federal Government of Nigeria has approved an NGN 3 billion (USD 7.1 million) Sukuk fund in 2022 to finance the Numan-Jalingo Road rehabilitation project in the states of Adamawa and Taraba, as announced by Mu'azu Sambo, Minister of State for Works and Housing on the 7th of May 2022 during an inspection of federal road projects within the two states.  Why it Matters?  As a part of the Maiduguri-Calabar Highway, the Numan-Jalingo road runs for 103 kilometres and acts as Nigeria’s North-eastern axis’ sole connection between the North and South. The road se...

IM Insights | May 09, 2022

Nigerian Government Approves NGN 3 Billion Sukuk Fund for Numan-Jalingo Road Rehabilitation Project

Nigerian Government Approves NGN 3 Billion Sukuk Fund for Numan-Jalingo Road Rehabilitation Project

The Federal Government of Nigeria has approved an NGN 3 billion (USD 7.1 million) Sukuk fund in 2022 to finance the Numan-Jalingo Road rehabilitation project in the states of Adamawa and Taraba, as announced by Mu'azu Sambo, Minister of State for Works and Housing on the 7th of May 2022 during an inspection of federal road projects within the two states.  Why it Matters?  As a part of the Maiduguri-Calabar Highway, the Numan-Jalingo road runs for 103 kilometres and acts as Nigeria’s North-eastern axis’ sole connection between the North and South. The road se...

IM Insights | May 09, 2022

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Fatwa: Transfer of Istisna' Contract to a Third Party

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Fatwa: Istisna' Applicant Requested to Make Changes That Lead to Increasing The Cost

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