According to Moody’s Investors Service (Moody’s), Takaful growth prospects remain healthy in the Gulf Cooperation Council (GCC) countries, Africa and Southeast Asia, owing to their large Muslim populations, relatively low insurance penetration and rising demand on the back of requirements for compulsory medical cover.  Why it Matters?  Takaful accounted for an average of 29% of total insurance premiums in its largest markets at end-2020, and penetration of all insurance products is in the low to mid-single digits. As more governments implement risk-base...

Oman’s Ministry of Finance has issued USD 1.75 billion worth of international Sukuk with a nine-year maturity, in the country’s second Sukuk issuance for 2021. The issuance, which took place on the 8th of June 2021, drew in an order book in excess of USD 11.5 billion, and was oversubscribed over 6.5x, according to media reports. Why it Matters?  The issuance, which is Oman’s first USD-denominated Sukuk sale since 2018, is part of the Government of Oman’s funding operations plan endorsed earlier in 2021 to meet its financial requirements...

COVID-19 has expedited the change towards a more "values-based" approach to Takaful, underpinned by a deeper commitment to the environmental, social and governance and sustainability agenda. This was highlighted by the Chairman of Malaysian Takaful Association (MTA), Elmie Najas, whilst speaking at the virtual Takaful Rendezvous 2021 meet. Why it Matters?  The MTA has developed a framework that aims to better embed sustainable business practices and principles in Takaful businesses. The Values-Based Intermediation for Takaful (VBIT) initiat...

A Sukuk allotment quota has been specified by Bangladesh Bank (BB), with priority given to Shariah-based Islamic banks, non-banking financial institutions (NBFIs) and insurance companies for the second auction of the bonds, according to officials. As per BB criteria, the Shariah-based Islamic banks, NBFIs and insurance companies would be eligible to obtain 70% of Sukuk certificates, while conventional banks and other financial institutions would be eligible to receive 15% of the bonds.  Why it Matters?  The emphasis on the Shariah-based Islamic banks, NBFIs an...

GFH Financial Group (GFH)’s increase in Khaleeji Commercial Bank (KHCB)’s stake to 69%, has indicated that it plans to fully acquire the latter. In a statement to the Bahrain Bourse, where both entities’ shares trade, it was divulged that GFH had approached KHCB’s board with a proposed voluntary takeover offer for the issued shares of KHCB.  Why it Matters?  As regional economies emerge from the COVID-19-led economic slump, banks in Gulf Cooperation Council countries are aiming to combine with or take over other financial inst...

NAZA TTDI Capital, a wholly-owned subsidiary of NAZA TTDI (the Group) in Malaysia announced the issuance of MYR 86.25 million Sukuk Murabahah, which is Tranche 1 of its unrated Islamic Medium Term Note (IMTN) programme of up to MYR 300 million. Why it Matters?   According to Bank Negara Malaysia’s (BNM) Fully Automated System for Issuing/Tendering (FAST) website, the proceeds from the issuance will go towards the Group’s Shariah-compliant requirements including general corporate purpo...

Tunisia’s  Assembly of the Representatives of the People (ARP) commenced an investigation on the 8th of June 2021, into a bill concerning the approval of the guarantee agreement and the Murabahah agreement concluded between the Tunisian Chemical Group (GCT) and the Islamic Development Bank (IsDB). According to a media report, the inquiry which relates to a USD 50 million (approximately TND 136 million) financing arrangement, guaranteed by the Tunisian State is expected to be repaid over a one-y...

Islamic banks (inclusive of Islamic windows) should gain market share in Bahrain in 2021-2022, after attaining a 37.1% share of domestic banking system assets and 17.2% of total banking system assets (including foreign assets) by end-2020, predicts Fitch Ratings. Bank mergers and acquisitions, continual Islamic financing development in a rebounding economy, expanding public knowledge of Islamic products and rising usage of fintech solutions are all expected to contribute to the ascent. Why it Matters?  The Islamic banking sector has several...

The EU unveiled several new policies including the final taxonomy, a climate law and forward guidance on corporate sustainability disclosuresEurope's climate-focused taxonomy will later be complemented by other environmental, social and transition taxonomiesCompanies & financial institutions will feel an impact as investor expectations continue to rise The European Union has announced the widely anticipated adoption of its new Taxonomy, and at the same time put its climate change objectives (an at least 55% cut compared to 1990 levels) formally into law. It has also renamed i...

The IEA’s Roadmap to Net Zero by 2050 provides a comprehensive baseline of the changes to the global economy as the world fills in the details about how we get there.Massive worldwide investment in renewable energy, low-carbon technologies by end-users and a tripling of the pace of energy efficiency will add 4 percentage points to global GDP by 2030With the IEA roadmap, financial institutions reviewing the scenarios presented by customers have a detailed baseline to use as a starting point The International Energy Agency hasn’t been one to make waves about the transition t...