The volume of Islamic banking in Egypt has reached roughly EGP 459 billion (USD 18.7 billion) by the end of September 2022, witnessing a rise of EGP 52 billion (USD 2.1 billion) and a growth rate of 12.8% over September 2021, according to Mohamed El-Beltagy, Head of the Egyptian Society for Islamic Finance.  Why it Matters? With more than 60 banking products and services, Islamic banking makes up around 5% of all banking in Egypt. 14 banks in the local market are licensed by the Central Bank of Egypt (CBE) to provide Islamic banking services, including three wholly Islamic b...

Indonesia-based telecommunications tower company PT Bali Towerindo Sentra Tbk (Balitower) has announced plans to launch an IDR 2 trillion (USD 130 million) Sukuk Ijarah Programme with its maiden issuance of Phase I Year 2022 Sukuk Ijarah under the Programme worth IDR 500 billion (USD 32.5 million). Why it Matters?  After deducting the costs associated with emissions, proceeds from the offering would be used for working capital, which covers daily operational costs and marketing and sales costs associated with customer acquisition, as well as capital expenditure needs which aim to...

Investors are becoming increasingly selective about how ‘green’ instruments contribute to wider decarbonisation beyond just qualifying as ‘green’. With greenwashing on the rise, investors are looking at whether an investment is consistent with and supported by credible policies of the issuers and markets to reach Net Zero commitments. Issuers, financial institutions and investors in emerging markets & developing economies will be significantly impacted but also could gain from a ‘virtuous circle’ of coherent policy support. Investors are starting to l...

The AEON Consortium, which consists of AEON Credit Service (M) Berhad, its parent company AEON Financial Service Co Ltd (AFS), and fintech company and technology partner MoneyLion Inc (MLI), has announced the appointment of Raja Teh Maimunah Raja Abdul Aziz as the Chief Executive Officer (CEO) of its digital bank that is anticipated to launch by the end of 2023, as per a statement made on 30th of November 2022. Why it Matters? In April 2021, Malaysia's Ministry of Finance and Bank Negara Malaysia (the Central Bank of Malaysia) granted a digital bank licence to five cons...

The Organisation of Islamic Cooperation (OIC) member states recorded halal exports equalling USD 275 billion and imports totalling USD 338 billion in 2021, experiencing a trade deficit of USD 63 billion for halal economy products, covering food, fashion, pharmaceuticals and cosmetics, as per the 2022 Annual OIC Halal Economy Report commissioned by the Islamic Centre for Development of Trade (ICDT) and produced by DinarStandard. Why it Matters? Efforts have been made for the facilitation of trade and investments across OIC countries for nearly four decades by the ICDT through the...

Pomegranate Nigeria Limited (PNL) has announced the successful issuance of Ijarah Sukuk worth NGN 2.25 billion (USD 5 million) for a 3-year tenure via private placement and through WealthBridge Capital Partners Limited, as disclosed during the contract signing event in Lagos. Why it Matters? The offering was intended to acquire money for the acquisition of 40 new logistical vehicles needed to fulfil previously finalised contracts with companies such FrieslandCampina WAMCO Nigeria, Suntory Beverage and Foods Ltd, and Seven-Up Bottling Company. According to PNL’s Chief Execut...

The global Islamic finance industry has witnessed a 17% growth in total assets to reach almost USD 4 trillion in 2021 from 2020 and is anticipated to grow to USD 5.9 trillion by 2026, driven by Islamic banks and Sukuk, according to the Islamic Finance Development Report 2022: Embracing Change by Islamic Corporation for the Development of the Private Sector (ICD) and Refinitiv. Why it Matters?  The Islamic finance sector has improved as economies began to open up more and the pandemic's severity decreased as a result of widespread vaccination. Moving into the fourth...

Scenario analysis is complex and cannot use a shared set of inputs and scenarios for every use. Instead of seeing that as a weakness that undermines comparability, this should be seen as an important part of the process of becoming better prepared to deal with uncertainty as physical impacts and impacts of the climate transition become more visible. Regulators and standard setters have made increasing use of scenario analysis as part of stress testing and climate disclosureScenario analysis for climate-related financial risks remains a new area, with considerable uncertainty driven by the...

The Dubai Islamic Bank (DIB) has announced the sale of its debut Sustainable Sukuk valued at USD 750 million for a five-year tenure, as per a bank document on the 22nd of November 2022.  Why it Matters? International bond sales in the Gulf Cooperation Council (GCC) have dropped in 2022 due to persistent volatility and rising rates. The transaction occurs as Gulf issuers seize windows of opportunity to issue debt in shaky markets. Demand for the offering exceeded USD 1.6 billion and the Sukuk, which sold at 155 basis points (bps) over U.S. Treasuries (UST), tightened from initial...

The Nigerian Debt Management Office (DMO) has announced, on behalf of the Federal Government of Nigeria, plans to raise NGN 100 billion (USD 226.6 million) through the issuance of Sovereign Sukuk Ijarah with a ten-year term in order to fund more road improvements across the nation, on the 21st of November 2022.  Why it Matters? Ijarah Sukuk, which was first issued in Nigeria in 2017, is a domestic component of government borrowings and has given the Federal Government NGN 612,557 billion (USD 1388) to fund 71 roads and six bridges totaling 1,881 kilometres across the co...