Pemeringkat Efek Indonesia (PEFINDO) has affirmed the ‘idAAA(sy)’ rating of Indonesian financial services provider Astra Sedaya Finance’s (ASF) IDR 175 billion Shelf Registered Sukuk Mudharabah I Phase I Year 2018 Series B, which is set to mature in May 2021. In addition, the ratings agency has affirmed the corporate rating of the company at ‘idAAA/Stable’ and several debt securities issued at ‘idAAA’.  Ratings Rationale The ratings reflect ASF’s importance to Astra In...

Indonesian Shariah Fintech peer-to-peer (P2P) lending platform ALAMI Technologies (ALAMI) has acquired Islamic rural bank BPRS Cempaka Al-Amin for under USD 10 million, according to undisclosed sources, as reported in local media.  Why it matters?  The deal will provide BPRS Cempaka Al-Amin with fresh capital in compliance with new rules set by the Indonesian Financial Services Authority (OJK), which mandates that rural banks in Jakarta must have a minimum paid-up capital of IDR 100 billion (USD 6.95 million). ALAMI partners with Shari...

United Arab Emirates (UAE)-based Pure Harvest Smart Farms (Pure Harvest), a sustainable technology-enabled agribusiness, has raised USD 50 million via a three-year Sukuk with embedded warrants. Dubai-based Shuaa Capital co-invested in Pure Harvest via its managed funds as a part of this funding round. Pure Harvest has also raised USD 10 million in growth equity, bringing the total raised to USD 60 million.  Why it matters?   This issuance marks the first time in the region that an early-stage business has been...

Saudi Arabia’s Consumer Price Index (CPI) increased by 5.2% year-on-year (YoY) in February 2021, compared to the same month in the previous year, according to a statement released by the General Authority for Statistics (GaStat), Saudi Arabia’s official statistics agency.  Why it matters? The rise of the CPI in February 2021 was mainly due to higher prices of Food and Beverages (+11.2% YoY) and Transport (+9.8% YoY). Saudi Arabia’s annual CPI in February 2021 was slightly lower than the 5.7% YoY witnessed in January 2021, and the lowest seen since...

Value-Added Tax (VAT) is scheduled to come into effect in Oman on the 16th of April 2021. With around a month to go, the Government of Oman has issued regulations on how VAT is to be collected. These include all procedures surrounding bringing the provisions of the VAT law into effect, such as procedures for payment, registration and collection as well as for raising objections or concerns in relation to taxes imposed. Why it matters?  VAT is forecast to bring in about OMR 400 million to Oman per annum, which amounts to about 1.5%...

Bahrain’s Ministry of Finance and National Economy (MoFNE) has forecast a budget of BHD 3.6 billion, with revenues expected at BHD 2.4 billion for 2021. This is expected to lead to an expected deficit of BHD 1.1-1.2 billion (approximately USD 3.2 billion). According to local media sources in Bahrain, these figures have been forecast at an oil price assumption of USD 50 per barrel.  Why it matters?  The Government of Bahrain expects economic growth to come in at 5.0% in 2021, following a 5.4% economic contraction in 2020 (according to IMF estimates)...

Qatar-based Damaan Islamic Insurance Company (Beema)’s, insurance financial strength rating (IFSR) has been upgraded to 'A3' from 'Baa1', by Moody's Investors Service (Moody’s). The Outlook is Stable.  Ratings Upgrade Rationale The A3 IFSR is driven by Beema’s strong brand and market position, given its standing as the second largest player within Qatar’s Takaful industry. Beema’s also ranks amongst the top seven insurers in the overall Qatari insuranc...

The General Tax Authority (GTA) has signed a Memorandum of Understanding (MoU) with Qatar International Islamic Bank (QIIB) to enable online payments between the bank and the GTA. To date, the GTA has signed such agreements with several other banks in Qatar. Why it matters? The objective of the MOU is to establish a digital link between the banks and to provide the ‘best innovative methods’ to pay or recover taxes from anywhere in the world. Online payments facilitate simpler tax payment procedures and increased convenience to t...

Bank Syariah Indonesia (BSI) has planned to fulfil free float shares regulations by releasing new shares worth USD 500 million. This is expected to take place via a rights issue.  Why it matters? The capital market rules at the Indonesian Stock Exchange state that the public must own at least 7.5% of a publicly listed company. Following the merger of Bank BRI Syariah, Bank Syariah Mandiri and Bank BNI Syariah, public shareholding fell from 18.47% to 4.4%. Through the issue of shares, the Government of Indo...

Hery Gunardi, President Director of Bank Syariah Indonesia (BSI), conveyed his interest in growing collaborations with research institutions and universities, for the development of Islamic banking and the overall economy of Indonesia. According to Gunardi, growing the Islamic economy and banking system requires support from all stakeholders.  Why it matters? The collaborations are expected to improve research and development of Islamic banking products and services, as well as the implementation of the Islamic fina...