Fitch Ratings (Fitch) has affirmed Kuwait Finance House’s (KFH) Long-Term Issuer Default Rating (IDR) at ‘A+’ with a Negative Outlook. In addition, Fitch has affirmed KFH’s Viability Rating (VR) at ‘bb+’.  Ratings Rationale  KFH’s IDR’s are supported by the Kuwaiti state, with an extremely high probability of support being provided by Kuwaiti authorities to all domestic banks if required, as shown by a Support Rating (SR) of '1' and Support Rating Floor (SRF) of 'A+'. This is reflected in the sovereign rating (AA/Negative) and a strong willingness of authorit...

Investor appetite is expected to continue its current momentum, supporting global Sukuk issuances through 2021, as issuers seek to meet upcoming maturities and diversify funding, according to Fitch Ratings (Fitch). Total outstanding Sukuk globally grew 3.0% in the first quarter of 2021 (1Q 2021), compared to the final quarter of 2020, to reach USD 715.2 billion at the end of 1Q 2021. Why it Matters?  Infrequent or one-off Sukuk issuances are anticipated to support Sukuk volumes in 2021, as sovereign funding req...

According to media reports, Saudi Real Estate Refinance (SRC) intends to issue up to USD 1 billion in Sukuk by the end of 2021. SRC is a fully owned unit by Saudi Arabia’s sovereign fund, Public Investment Fund, and it was set up to raise the level of home ownership amongst citizens of the kingdom. The tenor of this issuance is likely to be between 10 and 12 years.  Why it Matters?  This issuance should elevate the provision of liquidity in the real estate finance market and make a positive contribution towards lowering the cost of real estate financing for c...

Zurich Capital Funds Group (Zurich Capital) has announced the launch of a digital bank that provides all banking services in compliance with Shariah principles. The bank is to start in the United Arab Emirates, with plans to launch thereafter across the Middle East, North Africa, Europe, and, gradually, the world.   Why it Matters?  Being the first digital Islamic bank in the world, Zurich Capital  is supported by partnerships with other Islamic banks and financial institutions that include fintech investment and other c...

According to advocates, Islamic microfinance has strengthened its foothold in Muslim-majority provinces in the Philippines and can expand more if further support is extended by national government agencies. ASA Philippines Foundation Inc representatives stated that its total financing portfolio at end-Q1 2021 stood at PHP 23.3 billion. Of this, PHP 540.8 million accounted for outstanding loans to borrowers in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).  Why it Matters?  Senior Director at ASA Philippines Foundation Inc, Ferdinand&nb...

At the eighth Malaysian Financial Planning Council e-conference on Shariah Wealth Management and Financial Planning on the 20th of April 2021, President and Chief Executive Officer of the International Centre for Education in Islamic Finance (INCEIF), Prof Dr Mohd Azmi Omar, noted that Islamic fintech holds the potential to offer inclusive and sustainable financial solutions that uniquely cater to the needs of all the varied segments in society.  Why it Matters?  The development of Islamic fintech is increasingly important, especially to meet th...

Permodalan Nasional Madani - Persero (PNM) has announced plans to raise funding via a mix of conventional bonds and Sukuk. The target is to raise IDR 8.5 trillion by end-2021, with the funds going towards customer financing and PNM’s business development.Why it Matters?  Speaking at a virtual performance discussion on the 20th of April 2021, Sunar Basuki, Executive Vice President of Finance and Operations, noted that the company has raised financing in 2021 through conventional bonds and Su...

At a webinar titled Halal360: Connecting your Business to the Halal Ecosystem, held on the 19th of April 2021, business leaders from Bangladesh and Malaysia discussed how the two countries can tap into the Halal ecosystem and collaborate further. This was stated in a press release issued by Standard Chartered Bangladesh, one of the co-organisers of the event. Why it Matters?  Chief Executive Officer of Standard Chartered Bangladesh, Naser Ezaz Bijoy, said that the global Halal industry is forecast to grow to USD 3.1 trillion by 2023. Therefore, with the right...

As part of the Government of Dubai’s continuous efforts towards digitalisation, Smart Dubai together with the United Arab Emirates (UAE) Zakat Fund has launched a Zakat payment service on the government service app, DubaiNow, in time for Ramadan. This new service enables users to calculate their Zakat amount in compliance with Shariah principles and then make full or part payments via their smartphones or devices without having to physically visit a centre or charity, especially given the COVID-19 situation.  Why it Matters?  Chief Executive Officer of the Sm...

Moody’s Investors Service (Moody’s) has assigned an A3 senior unsecured rating to the Government of Malaysia’s proposed USD-denominated Sukuk certificates with maturities of 10 and 30 years to be issued by special purpose vehicle, Malaysia Wakala Sukuk Berhad.  Ratings Rationale The rating of the Sukuk is on par as the issuer ratings of the Government of Malaysia as Sukuk holders will be exposed to the Government’s senior unsecured credit risk, will not be exposed to performance risk of the portfolio assets, will not have preferential claim or re...