Inheritance of House Unit on Waqf Land From Islamic and Malaysian Law PerspectivesFatwa, Hibah, Islam, Sahih, Shariah, Waqf, Wasiyyah, Zakat, Provision

Empirical Study on Adoption of Islamic Banking System Using Quantitative Method: A Case Study of AfghanistanIslamic banking, Murabaha, Shariah

According to RAM Ratings’ publication on the 1st of April 2021, despite COVID-19 and its adverse impacts on the global economy as well as the resultant negative sentiment, Sukuk issuance across the globe rose 16.8% to USD 152.6 billion in 2020 from USD 130.6 billion in 2019. In 2020, Malaysia continued to hold the largest market share of 39.2%, followed by Saudi Arabia with 20.4% and Indonesia at 17.5%.  Why it Matters?  Together, Malaysia, Saudi Arabia and Indonesia accounted for 77.1% of worldwide Sukuk issuance in 2020. Growth in these Sukuk markets was attribu...

Bank Indonesia (BI) continues to encourage the transformation of the Shariah economy and finance (EKSyar) as a new source of economic growth, according to Perry Warjiyo, Governor of BI, who was speaking at the virtual launch of the 2020 Shariah Economic and Financial Report (LEKSI) held during the last week of March 2021.  Why it Matters?  Warjiyo noted that the theme raised in the report ‘Synergize in Building Shariah Economics and Finance’ was essential to boost the momentum of economic recovery in the wake of the COVID-19 pandemic ...

On the 1st of April 2021, Qatar’s Minister of Commerce and Industry, His Excellency Ali bin Ahmed Al-Kuwari, inaugurated the 7th Doha Islamic Finance Conference virtually. The Minister lauded the “remarkable growth” that Islamic finance in the country has seen. He attributed this to Qatar’s “pioneering” legal and regulatory framework.  Why it Matters?  In a global context, Qatar is one of the biggest Islamic finance markets, with the assets of local Islamic banks having reached QAR 415.8 billion...

RAM Rating Services (RAM) has assigned a final AA3/Stable rating to Tanjung Bin Energy’s (TBE) MYR 4.5 billion Islamic Medium-Term Note (MTN) Programme (2021/2041) (Sukuk). TBE is a Malaysian-based independent power producer (IPP) that owns and operates an ultra-supercritical 1,000 MW coal-fired power plant in Tanjung Bin, Johor.  Ratings Rationale RAM had previously assigned a preliminary rating of AA3/Stable to TBE’s Sukuk which has now been finalised upon reviewing all relevant transaction documents and the revised...

Malaysian-based Eco World Capital Services, under the Eco World Development Group (Eco World Malaysia), has issued MYR 180 million Sukuk Wakalah with a five-year tenure, on the 24th of March 2021 according to a Bursa Malaysia announcement.  Why it Matters?  The Sukuk issuance falls under Eco World’s MYR 500 million Sukuk Wakalah Programme in nominal value, which is unrated and secured by the corporate guarantee by Eco World Malaysia. Proceeds of the Sukuk issuance would be used to repay several existing borrowings within&nbs...

In a Bourse filing on the 31st of March 2021, Saudi Arabia-based Arabian Centres Company (ACC) announced the completion of its USD-denominated Sukuk issuance worth USD 650 million. The issuance involves 3,250 Sukuk in number, each at a par value of USD 200,000. The Sukuk has a tenure of five years, and carries a profit rate of 5.625%.  Why it Matters?  ACC will use the funds raised to support and strengthen its financial position via the settling of a large portion of existing loans, as well as to release several of its assets in line with its s...

Governor of Bangko Sentral ng Pilipinas (BSP), Benjamin Diokno, has stated that the bank would maintain flexibility in its approach to attract industry players to the Islamic banking sector in the Philippines. Speaking at a recent virtual press conference, Diokno noted that this flexibility would enable banks to thrive in the new environment ever since the Republic Act 11439 (an act providing for the regulation and organisation of Islamic banks) was signed into the law in the country in 2019.  Why it Matters?  Regulatory reforms o...

Japan-based Mitsubishi UFJ Financial Group banking subsidiary, MUFG Bank (Malaysia) (MUFG or the Bank), has announced the successful offering of MYR 250 million Sukuk on the 26th of March 2021, which is the third tranche offered as part of its ten-year USD 500 million multi-currency Sukuk Programme under the Shariah principle of Wakalah Bi Al-Istithmar (rated AAA(bg)/Stable by RAM Rating Services).  Why it Matters?  The two-year issuance marks the first MYR-denominated Sukuk for a Japanese bank issued out of Malaysia, and compleme...