Fair, a new digital bank (neobank) in the United States of America provides its customers with the first Halal banking experience in the country, focused on non-interest lending and ethical investments. Fair’s digital finance platform is the only one in the USA to be certified in Islamic Finance by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). Why it Matters? The Fair platform aims to focus on banking practices that support accessibility to financial instruments by underserved segments...

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the Uzbekistan Investment Promotion Agency (UzIPA), have signed a Memorandum of Understanding (MoU) to promote foreign investment in Uzbekistan, according to a media report.  Why it Matters? Chief Executive Officer of the ICIEC, Oussama Kaissi, noted that foreign direct investments (FDIs) are a crucial aspect of economic growth, acting as a catalyst for sustainable development in member countries. These FDIs&nbs...

Treasury and Finance Minister for Turkey, Lütfi Elvan, observed on the 25th of June 2021, that the country’s economy is expected to have grown around 20% year-on-year (YoY) in the second quarter of 2021 (2Q 2021). The country should witness higher growth in 2021 than the Government of Turkey’s expectation of 5.8% YoY.  Why it Matters?  The solid growth seen in 2Q 2021 would primarily be owing to the base effect due to an almost 10% YoY contraction in the economy between April to June 2020....

Egypt’s Ministry of Finance has denied any plans by the Government of Egypt to issue sovereign Sukuk as a way to borrow money by mortgaging state-owned assets. Why it Matters?  In a statement issued on the 22nd of June 2021, the Ministry stated that the goal of issuing sovereign Sukuk, is to diversify the investor base in a way that supports the achievement of financial, economic and development goals. In addition, the aim is to provide the necessary financial allocations for investment projects in line with the Go...

On the 23rd of June 2021, the World Bank cut its 2021 growth projection for Malaysia to 4.5%, from 6.0% estimated in March 2021. This was owing to COVID-19, the resultant movement restrictions and their effects on the economy. Of the main concerns were the flare-up in COVID-19 cases and the slower-than-expected administering of vaccinations.  Why it Matters?  Despite the downward revision, Malaysia is expected to register positive economic growth in 2021, according to a World Bank Group Senior Economist, Shakira Teh Sharifuddin. Three broad...

Assessment of Macroeconomic Factors, Yield to Maturity and Time to Maturity towards Fair Price of Corporate Sukuk in Indonesia and MalaysiaIslam, Sukuk, Fair Price

The Bangladesh Export Import Company (Beximco) has received approval from the Bangladesh Securities and Exchange Commission (BSEC) on the 23rd of June 2021 to issue Sukuk worth BDT 30 billion.  Why it Matters? The Sukuk will be the largest issuance in Bangladesh’s private sector, and the country’s first Green Sukuk. Beximco will use the proceeds of the secured convertible asset-backed Sukuk for the construction of solar projects of Beximco Power Company’s two subsidiaries,&...

Kuwait Finance House (KFH) has announced the successful issuance of USD 750 million Additional Tier 1 (AT1) Sukuk Mudarabah (Sukuk), which were sold on the 23rd of June 2021. The Sukuk, which will be non-callable for 5.5 years, were sold at an annual yield of 3.6%, which was tightened from an initial price guidance of around 4%.  Why it Matters? The Sukuk is historic as it is the largest issuance in Kuwait in terms of size, and also has the lowest yield for an AT1 issuance in the country, according to Hama...

Malaysia’s Takaful industry has taken strides to embrace the Value-based Intermediation (VBI) agenda, with the unveiling of the VBI for Takaful (VBIT) Framework on the 23rd of June 2021. The Framework serves as a guideline in implementing VBI practices and values in the Takaful industry, and is relevant to family Takaful, general Takaful and Retakaful operators. Why it Matters?  According to the Malaysian Takaful Association (MTA), the VBIT Framework encourages industry players to realise the objectives of Shariah,...

On the 22nd of June 2021, Pakistan’s Cabinet approved the summary of the Finance Ministry on the issuance of Sukuk. The Cabinet has given the green light to mortgaging Pakistan’s motorways and airports as collateral for the Sukuk. Why it Matters?  Federal Minister for Information and Broadcasting, Fawad Chaudhry, stated that to promote the Islamic banking system, the Cabinet approved the issuance of Sukuk. This issuance of domestic Sukuk would also enable Pakistan to meet it...