The Relation between Risk and Expected Return of Manfa’at SukukSukuk

How Organizational Unfairness Impedes Service Employees Needs Fulfillment? The Case of Islamic Banking Industry in PakistanIslam, Islamic banking, Shariah, Sales

The first small business Islamic finance platform in the United Kingdom, Qardus, intends to orchestrate the raising of GBP 2.5 million worth of funding through 2022.This Shariah-compliant financing option is available to all business (not only Muslim-owned ones), as long as their operations are socially progressive.  Why it Matters?  Small and medium-sized enterprises that wish to comply with Shariah principles are an underserved market in Britain, as Shariah options of financing are limited. The Muslim population in Britain stands at around 3.3 mill...

The National Zakat Agency (BAZNAS) has signed a Memorandum of Understanding (MoU) and a Collective Labour Agreement with Bank Negara Indonesia (BNI), in order to create a digitalization channel to manage Zakat collections in Indonesia, according to local media reports.  Why it Matters?  The cooperation between BAZNAS and BNI is in response to a directive given by Indonesian President Joko Widodo at the Cinta Zakat Movement programme in mid-April 2021, to make it easier for the public to make payments and digitize the management of Zakat, donations and alms. In addi...

The Bangladesh Export Import Company Limited (Beximco) has filed an application with the Bangladesh Securities and Exchange Commission (BSEC) on the 29th of April 2021 to issue five-year Sukuk worth BDT 30 billion with a 9% minimum profit rate per annum, according to local media reports. Half of the Sukuk will be raised through private placement, with BDT 7.5 billion raised through existing company shareholders, and the remaining BDT 7.5 billion raised via an initial public offering.  Why it Matters?  The Sukuk will be the largest issuance...

On the back of better-than-expected growth in exports, Malaysia’s gross domestic product (GDP) growth figure is expected to see a sharp rebound in 1Q 2021 according to Kenanga Research. This is mostly driven by strong performance of the manufacturing export sector, boosted by the technology upcycle amidst strong demand worldwide for information technology-related products and commodities subsequent to the economic reopening. As such, unless there is a drastic change in the trajectory of COVID-19, the 2021 GDP growth projection is forecast at 6.5% versus 5.6% in 2020. Why it M...

Fitch Ratings (Fitch) has affirmed Warba Bank’s (WB) Long-Term Issuer Default Rating (IDR) at A+ with a Negative Outlook, and has also affirmed WB’s Viability Rating (VR) at bb-.  Ratings Rationale WB’s IDR is driven by support from the Kuwaiti sovereign, with its Support Rating (SR) of 1 and Support Rating Floor (SRF) of A+ reflecting Fitch’s expectation of support provided by Kuwaiti authorities to all domestic banks. This is underpinned by Kuwait’s robust ability to provide support to domestic banks irrespective of bank size, funding str...

Malaysian property developer S P Setia has announced plans to raise MYR 3 billion under a proposed Islamic Medium-Term Notes Programme, according to a recent bourse filing. The Sukuk Wakalah Programme, which has been given a preliminary rating of AA-IS with a Stable Outlook by Malaysian Rating Corporation (MARC), allows for the issuance of rated and senior unsecured Sukuk from time to time, not exceeding MYR 3 billion at any point in time. Why it Matters?  Proceeds of the proposed issuance will mostly be used to fund capital injection into S P Setia’s jo...

Pakistan-based Meezan Bank has signed an agreement with Export-Import (EXIM) Bank of Pakistan to act as its Shariah-compliant consultant in order to develop Islamic trade finance for corporate and small and medium sized enterprises (SME) exporters in Pakistan under a technical assistance grant provided by the Islamic Development Bank (IsDB).  Why it Matters?  The IsDB grant will support the Government of Pakistan in promoting and expanding international trade in the country, via EXIM Bank of Pakistan, which will offer export credit, Takaful insurance as w...

On the 29th and 30th of March 2021, the Governance and Ethics Board (AGEB) of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) held its 20th meeting and approved the basis for conclusions in respect of Auditing Standard for Islamic Financial Institutions (ASIFI) 6 ‘External Shariah Audit (Independent Assurance Engagement on an Islamic Financial Institution’s Compliance with Shariah Principles and Rules)’.  Why it Matters?  In line with the approvals granted, an updated version of ASIFI 6 has been issued. Chairman...