During the “Global Update on Islamic Digital Banking and Islamic Fintech” session at the 16th Kuala Lumpur Islamic Finance Forum (KLIFF), which was held virtually, Chief Executive Officer of Bank Islam Malaysia (Bank Islam), Mohd Muazzam Mohamed, urged players in the industry to adopt more significant roles in taking charge of the digital economy. Mohd Muazzam encouraged players to experiment and employ new technological solutions.   Why it matters?  Bank Islam has established the Centre of Digital Exper...

The first Board meeting for 2021 of the Dubai Islamic Economy Development Centre (DIEDC) was led by its Chairman, Sultan bin Saeed Al Mansouri. Board members gathered to work out a detailed action plan for 2021 – with particular focus on the DIEDC’s strategy for 2022-30. They also reviewed the progress made last year.  Confirming that the Islamic economy had seen four years of progress, Sultan Al Mansouri attributed this to the DIEDC’s solid strategy for 2017-21. This had been implemented via the DIEDC’s alliance with its strategic pa...

Cost of Credit and House PricesSales

The Role of Islamic Banks in Tackling Financial Exclusion in North-East NigeriaIslamic banking, Shariah, Participation

Malaysian Rating Corporation (MARC) has affirmed Tropicana Corporation’s (Tropicana) MYR 1.5 billion Islamic Medium-Term Notes Programme (Sukuk Wakalah) A+IS rating with a Stable Outlook.  Ratings Rationale The key rating drivers are Tropicana’s long standing position in the property industry in Malaysia and its moderate financial risks. Challenging property market conditions have impacted the group’s sales performance, which is the main moderating factor of the rating.  Details  Tropicana achieved a 53...

Murex has entered into a partnership and platform integration with DDCAP Group in an attempt to make booking and processing of Shariah compliant transactions by financial institutions worldwide more efficient. Prior to the partnership, customers booked and processed Murabahah deals through both Murex and DDCAP separately. Currently, double booking has been eradicated with trade initiation being transferred to MX.3 Why it matters? When bookings were carried out through distinct platforms it resulted in higher operational costs and the possibility of human errors. Flexib...

Fitch Ratings (Fitch) has affirmed Kuwait-based Warba Bank’s (WB) Viability Rating (VR) at bb- and removed it from Rating Watch Negative (RWN). All other ratings remain unaffected.  Ratings Rationale The affirmation and removal of the RWN of WB’s VR reflect Fitch’s expectation that near-term risks to WB’s standalone credit profile due to capital erosion have decreased. The VR affirmation reflects WB’s tight capitalisation and leverage, as well as WB’s growing franchise, modest internal capital generation, high risk...

Pakistan-based Faysal Bank Limited (Faysal Bank) and Akhuwat, a micro-finance institution, have signed a memorandum of understanding (MoU) to promote Shariah-compliant affordable housing in Pakistan.  Why it matters?  The MoU will promote Shariah-compliant affordable housing under the Government of Pakistan’s low-cost housing finance facility for low-income individuals. The partnership will promote financial inclusivity and uplift the living standards of underprivileged communities in Pakistan by providing sustainable housing, and help support Pakis...

Kuwait Finance House (KFH) –Bahrain has launched Shariah-compliant mortgage-backed securities, as announced in a statement issued by the bank. This involves the Sukuk being issued against a portfolio of lease (Ijara) financing contracts related to a housing finance scheme named Mazaya; the ultimate beneficiary would be the Sukukholders. This is the second issuance under KFH – Bahrain’s securitisation programme. Why it matters?  Managing Director and Chief Executive Officer of KFH – Bahrain, Abdulhakeem Alkhayyat, believes...

Datuk Seri Dr Zulkifli Mohamad Al-Bakri, Minister of Religious Affairs in Malaysia, recently highlighted the important role of Islamic Financial Institutions (IFIs) and Shariah scholars in COVID-19 recovery efforts in Malaysia. Speaking at the launch of the 14th Shariah Islamic Financial Advisors Muzakarah held in tandem with the 16th Kuala Lumpur Islamic Finance Forum, Zulkifli also addressed the growing popularity of Islamic Social Finance and emphasised the need for its development, similar to how the Islamic financial system and Islamic banking have been developed. ...