The high demand for Malaysia’s recently issued sovereign international sustainability Sukuk demonstrates investor interest in sustainability finance and is also a credit positive to the Government of Malaysia, said Moody’s Investors Service (Moody’s).  Why it Matters?  Moody’s noted that this issuance set a benchmark for issuers who address environmental, social and governance concerns. The issuance was credit positive for the Government because this new avenue of financing moderates its already low liquidity risk by diversifying Malaysia’s creditor base and keepi...

Indonesia will need to apply aggressive strategies to boost Islamic-based economic and financial development, according to Ma’ruf Amin, Indonesian Vice President, who was speaking at a Sharia Economy and Finance National Committee (KNEKS) meeting on the 26th of April 2021.  Why it Matters? The Indonesian Government is hoping to make the country the largest producer of Halal products by 2024. The largest challenge for Indonesia to grow is improving data collection on domestic Halal products, which entails the completion of codification and recording of Halal produc...

Moody’s Investors Service (Moody’s) says that the Government of Maldives’ (rated B3 negative) announcement of a tap issuance on its existing USD 200 million 9.875% Sukuk certificates due in April 2026 will carry the same B3 rating of its outstanding certificates.  Details  The Sukuk ratings do not express an opinion on the structure’s Shariah compliance. Also, the certificates are issued through Maldives Sukuk Issuance Limited, a special-purpose vehicle that is wholly owned by the Ministry of Finance and whose debt and trust certificate iss...

In an attempt to compensate for declines in foreign investment in Turkey, the country is looking to ramp up the issuance of Sukuk. However, the negative effects of COVID-19 together with concerns surrounding Turkey’s economic policy have seen demand for Sukuk dampened.  Why it Matters?  In 2019, 8.7% of global Sukuk sales were attributed to Turkey, totaling USD 135 billion. In 2020, the country doubled its issuance. However, competition to attract investors in 2021 will be intense; innovative and diverse issuances such as green, sustainable, transit...

In a bid to reach its USD 3 billion asset under management (AUM) target for 2021, Dubai-based Gulf Islamic Investments (GII) has announced its plans to expand its property holdings, as well as its private equity investments. GII aims to spend USD 300-400 million in order to acquire property in the Gulf, Europe and the United States of America. In addition, GII is expected to invest USD 200 million in the private equity space in India as well as Saudi Arabia.  Why it Matters? Speaking to the media...

The Chartered Institute of Islamic Finance Professionals (CIIF) says that there is immense opportunity for Malaysia to provide professionals to the Islamic finance industry and to unlock the long-term potential of Islamic finance.  Why it Matters?  Chief Executive Officer of CIIF, Azura Othman, stated that Islamic banking distinguishes itself via several key factors such as high industry standards, cutting-edge knowledge, paramount levels of integrity and excellent service. Othman stressed the criticality of maintaining and perpetuating these pillars when participating...

In a press release issued on the 24th of April 2021, Prime Minister of Malaysia Tan Sri Muhyiddin Yassin said that the oversubscription of Malaysia’s Sustainability Sukuk issuance by 6.4 times reflects the confidence of investors in Malaysia and the country’s economic growth prospects. This comes despite the Government of Malaysia facing challenges over the past year owing to COVID-19.  Why it Matters?  The oversubscription further fortifies Malaysia’s position as one of the leaders in the world’s Islamic finance sector and that this...

Munich Re Syndicate Labuan Limited (MRS Labuan) announced the launch of the first and only Retakaful syndicate on the Labuan platform on the 19th of April 2021. MRS Labuan received approval for the Retakaful window from the Labuan Financial Services Authority to write Shariah-compliant risks, effective January 2021. MRS Labuan is collaborating with its existing clients to refine wordings that align to retakaful requirements and is also seeking ways to digitalise its distribution model to serve evolving client demands.  ...

Indonesia’s Finance Minister, Sri Mulyani Indrawati, has highlighted the growing importance of the Shariah economy within Indonesia, stating that a reliable instrument is needed to extend benefits to the public.  Why it Matters?  Speaking at a national seminar on the Shariah economy and finance in Indonesia on the 21st of April 2021, the Finance Minister highlighted the four key aspects of Indonesia's Shariah economy namely, developing the Halal industry, Shariah finance, Shariah social finance,...