RAM Rating Services (RAM) estimates Malaysia’s gross domestic product (GDP) to have contracted 2.1% in the first quarter of 2021 (1Q 2021) amid Movement Control Order (MCO) 2.0. Although this marks the fourth consecutive quarter of decline, the latest contraction is slightly lower than preceding quarters’ GDPs (4Q 2020: -3.4%; 3Q 2020: -2.7%).  Why it Matters?  The lower contraction is due to most economic activities given permission to continue in spite of social restrictions, with robust external demand boosting industrial output during 1Q 2021. In addition, the Gove...

The United Arab Emirates (UAE) federal export credit agency, Etihad Credit Insurance (ECI), and the Italian Export Credit Agency, SACE, are discussing options to join hands in supporting sustainable development projects and extending trade finance to small and medium-sized enterprises and to companies in the Halal sector. Why it Matters?  In addition to this being a major boost to trade and investment relations between the UAE and Italy, the collaboration would be in alignment with the national sustainability goals of both countries and also wit...

The merger of state-owned Shariah-compliant banks in Indonesia is forecast to boost the growth of Shariah-compliant financial technology (fintech) and increase industrial distribution to the tune of trillions of IDR. In line with the merger, Bank BRISyariah, BNI Syariah and Bank Mandiri Syariah are now all a part of Bank Syariah Indonesia. Why it Matters?  The pipelines for distribution to Shariah-compliant fintech are expected to be over IDR 2 trillion. Further, the development of Shariah fintech is driven by the rising number of regional banks converting to Shariah. In tu...

On the back of its newly launched protection plan, BSN Takaful Sakinah, Malaysia’s Prudential BSN forecasts increased insurance and Takaful penetration among Malaysians in 2021. BSN Takaful Sakinah is the result of a collaboration between Prudential BSN Takaful Bhd (PruBSN) and Bank Simpanan Nasional (BSN) to provide affordable and accessible cover for more Malaysians to help relieve financial burdens in times of need. Why it Matters?  Chief Executive Officer of PruBSN, Wan Saifulrizal Wan Ismail, st...

Maybank Asset Management in Malaysia has launched its first Shariah-compliant retail investment fund with a Waqf feature. The fund named Maybank Mixed Assets-I Waqf Fund has an initial size target of MYR 50 million.  Why it Matters?  Chief Executive officer of Maybank Asset Management, Ahmad Najib Nazlan, stated that the aim of this fund is to make an annual income via Waqf allocation. The fund gives investors the opportunity to contribute a portion of their annual investment income towards Waqf in order to help the underprivileged community&nbs...

The Dubai Gold and Commodities Exchange (DGCX) in the United Arab Emirates and Dubai-based Global Islamic Financial Services (GIFS), a global Shariah investment, certification and advisory firm, have signed a Memorandum of Understanding (MoU) in order to collaborate and create Shariah-compliant derivatives instruments. Why it Matters?  This MoU has been put in place amidst rising demand for Shariah-compliant products in the region. Chief Executive Officer at DGCX, Les Male, said that the MOU presents both entities with significant opportunities to en...

Speaking at a conference held by the Islamic Research Institute, Ghana (IFRIG), Chairman of the IFRIG, Alhaji Mohammed Awal Ismail stated that the establishment of Islamic finance in Ghana will serve as a means for the Government of Ghana to tap into significant liquidity pools from investors in the Gulf Cooperation Council (GCC) region as well as Asia, that are looking for viable investment opportunities in Africa.  Why it Matters? The Government of Ghana requires valuable funding to improve critical infrastructure across the country. As m...

Bank Indonesia (BI) has identified that the use of Islamic social finance instruments and Islamic commercial and social finance integration instruments can help in developing productive Waqf that can strategically support the national economy. According to Perry Warjiyo, Governor of BI, there are four important steps to transform productive waqf into a strategic pillar within the Indonesian economy. Why it Matters?  Muhammad Nuh, Chairman of the Indonesian Waqf Board, stated that Indonesia has cu...

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