S&P Global Ratings (S&P Global) expects Dubai’s economy within the United Arab Emirates (UAE) to return to 2019 (pre-pandemic) growth levels only in 2023. This is despite the recoveries being seen in some sectors and developments made in the UAE’s vaccination drive against COVID-19.  Why it matters? Dubai’s economy is heavily dependent on a few key sectors, namely real estate, retail, tourism and hospitality. S&P Global expects the impact of the shocks in 2020 to continue through 2021, with these...

Qatar’s economy saw a solid rebound in February 2021, on higher output and new businesses alongside heightened demand and increased employment opportunities, according to the Qatar Financial Centre. This was mainly attributed to Qatar’s non-energy private sector, especially manufacturing and construction.  Why it matters?  Expectations regarding output for the next 12 months remain positive. Purchasing Mangers’ Index (PMI) data of the fourth quarter of 2020 was in line with the growth recovery that was seen, while January...

On the 10th of March 2021, Indonesia’s Vice President, Ma'ruf Amin, predicted that the Halal Industrial Estate (KIH) would become a pull factor in the domestic industry, resulting in the creation of more employment opportunities and a boost to national economic development. Amin made these statements whilst speaking on the Indonesian Shariah economy at a webinar held on the 10th of March 2021.   Why it matters?  The KIH and Halal industrial zone development have become strategic tools by the Government of Indonesia aimed at boosting productivity. In...

Fitch Ratings (Fitch) expects stable growth of the Takaful Industry in Malaysia to continue due to the conducive environment created by the support of the Government of Malaysia and the Islamic finance ecosystem, as well as economic growth estimated at 6.7% for 2021.  Why it matters? The Takaful industry in Malaysia managed to remain strong even during COVID-19 in 2020, and accounted for 38% out of domestic life insurance market, with General Takaful accounting for 16% of the entire general insurance market in 2020. Takaful demand can come from Islamic banks, Shariah-compli...

Brunei’s Deputy Minister of Finance and Economy, Dr Abdul Manaf stated that the private sector is the main source of the country’s economic growth, whilst its public sector enables a favourable ecosystem, which facilitates investments in the private sector. This was discussed at the appointment ceremony of  the Brunei Darussalam BIMP-EAGA Business Council (BD-BEBC) on the 9th of March 2021.   Why it matters?  Established over 27 years ago, the Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA ) was&nbs...

Islamic finance is slated to make a recovery post COVID-19, due to the rapid adoption of digitalisation, especially in the fields of Islamic banking and Islamic financial technology (fintech), according to Chief Executive Officer (CEO) of the Islamic Corporation for the Development of the Private Sector (ICD), Ayman Sejiny. Making an address at the 16th Kuala Lumpur Islamic Finance Forum (KLIFF), Ayman stated that the outbreak has accelerated socially responsible investing and social sustainability with a revival of Shariah-compliant Islamic financial instruments such as Su...

Saudi Real Estate Refinance Company (SRC) has completed the issuance of SAR 4 billion (USD 1.067 billion) worth of Sukuk in two tenures. Encompassing a 7-year tranche of SAR 1 billion at 2.11% and a 10-year tranche of SAR 3 billion at 2.65%, the issuance was oversubscribed by 2.1 times. This issuance is a part of the newly launched SAR 10 billion SAR-denominated Sukuk programme, under which SRC will target local investors with sovereign-guaranteed Sukuk issuances.  Why it matters?  According to SRC’s Chief Executive Officer, Fabr...

Artificial Intelligence, Smart Contract, and Islamic FinanceTawarruq

The Government of Indonesia has raised IDR 4.495 trillion from its biweekly auction of State Shariah Securities (SBSN), also known as State Sukuk, held on the 9th of March 2021, according to a statement issued by the Directorate General of Budget Financing and Risk Management (DJPPR), Ministry of Finance. The amount raised was below the indicative target of IDR 12 trillion, and slightly lower than the IDR 4.995 trillion raised in the previous auction held on the 23rd of February 2021.  Why it matters?  The funds obtained...

The Participation Banks Association of Turkey (TKBB) has signed a memorandum of understanding (MoU) with Djibouti’s Economy and Finance Ministry on the 9th of March 2021, to help foster the development of the Islamic finance sector in the African country.  Why it matters?  The MoU will enable Djibouti to learn more about finance models from Turkish participation banks. The agreement will support the transfer of knowledge, technical know-how and skills to stakeholders and help with the development of the Islamic finance industry in Djibouti. Accordin...