As a nationwide lockdown is being imposed from the 1st of June 2021 to the 14th of June 2021 (MCO 3.0) to curb the spread of COVID-19, Prime Minister of Malaysia, Muhyiddin Yassin, announced an additional MYR 40 billion (USD 9.7 billion) stimulus package. In his televised address, Prime Minister Yassin said that the package includes an MYR 5 billion fiscal injection. Why it Matters?  The Ministry of Finance stated that while it was critical that COVID-19 is contained efficiently, there is also a need to prevent any disruption to the manufacturin...

Building on the long-standing relationship between the Islamic Development Bank (IsDB) and Azerbaijan, IsDB President, Dr Bandar Hajjar and Minister of Economy and IsDB Governor for the Republic of Azerbaijan, His Excellency Mikayil Jabbarov, discussed the strengthening of their economic and financial partnership, along with the expansion of cooperation in priority areas. This took place at a virtual meeting on the 26th of May 2021. Why it Matters? Minister Jabbarov highlighted the comm...

In an effort to continue Waqf via Shariah-compliant insurance, Takaful Keluarga has launched the first insurtech Waqf product in Indonesia, with the Indonesian Waqf Education Foundation (YEWI) playing the role of its marketing partner. Why it Matters?  President Director of Takaful Keluarga, Arfandi Arief, expressed optimism that this Waqf insurtech product would meet the needs of everyone in this digital era who wants to see Islamic insurance benefits easily, quickly and practically. Arief elaborated that this product also helps...

Bahrain-based Islamic fintech provider Islamic Finance Initiation Network (IFIN) has launched an automated Islamic financing platform to link retailers and Islamic finance providers. This cloud-based platform cuts down the conventional Islamic financing process to just a few minutes (from several days). The secure and innovative technology will connect retailers and Islamic finance providers, enabling them to offer customers instant access to Islamic financing for purchases at the points of sale.  Why it Matters?  The platform eliminates the need for customers to v...

The long-term deposit rating of Qatar Islamic Bank (QIB) has been reaffirmed by Moody’s Investors Service (Moody’s) at ‘A1’ with a Stable Outlook. Rating Rationale  In its credit opinion report, Moody’s has said that QIB’s assigned rating reflects the bank’s strong asset quality, robust and stable profitability, and adequate capital and liquidity buffers. This is aided by its established and growing Islamic banking franchise and exceptional cost efficiency. QIB’s Stable Outlook was assigned by also...

Real estate investment fund, Emirates REIT, based in Dubai, United Arab Emirates has not received support from the ‘Ad Hoc Group’ (representing over 30% of its large Sukukholders) on its proposal to amend the terms of its USD 400 million Sukuk, according to fund manager Equitativa. On the 18th of May 2021, Emirates REIT announced its plans to exchange unsecured Sukuk for new Sukuk, whilst extending the credit maturity to 2024 from 2022.  Why it Matters? Of the 60% of Sukuk holders who have already cast their vote on this proposal, 75...

Waqf-linked Unit Trust Fund: Recent Development Within the Malaysian Islamic Capital Market FrameworkFatwa, Fiqh, Sadaqah, Shariah, Shariah compliant, Sukuk, Waqf, Provision, Waqif

Malaysian Rating Corporation (MARC) has assigned AAAIS(CG)/MARC-1IS(CG) ratings to F&N Capital’s Islamic Medium-Term Notes (IMTN) and Islamic Commercial Papers (ICP) programmes with a combined limit of up to MYR 3 billion, with a Stable Outlook. F&N Capital is a wholly-owned subsidiary of Fraser & Neave Holdings Bhd (F&NHB), which is a Malaysian-based investment holding company engaged in dairy and beverage lines.  Ratings Rationale The ratings are indicative of F&NHB’s robust and consistent financial performance...

Fitch Ratings (Fitch) has affirmed Islamic Development Bank’s (IsDB) Long-Term Issuer Default Rating (IDR) at ‘AAA’ with a Stable Outlook, and Short-Term IDR at ‘F1+’. In addition, Sukuk issued by IDB Trust Services and IsDB Trust Services No.2 SARL have been affirmed at ‘AAA’.  Ratings Rationale IsDB’s Long-Term IDR affirmation is driven by its Standalone Credit Profile (SCP), with solvency and liquidity assessed at ‘aaa’. The Stable Outlook reflects Fitch’s expectation that the SCP will withst...