Malaysian Rating Corporation (MARC) has upgraded Quantum Solar Park (Semenanjung) Sdn Bhd (QSP Semenanjung)’s MYR 1.0 billion Green Sustainable and Responsible Investment (SRI) Sukuk rating to AA-IS from A+IS. MARC has revised the rating Outlook to Stable from Positive. In May 2020, MARC had affirmed the A+IS rating of QSP Semenanjung, and had revised the Outlook to Positive from Stable.  Ratings rationale: QSP Semenanjung’s ratings upgrade reflects the stable operational performance of th...

Saudi Arabia-based investment management and advisory firm Jadwa Investment, on behalf of Jadwa Real Estate Investment Trust (REIT) Saudi Fund, has signed a sale and purchase agreement in order to buy The Boulevard Riyadh for SAR 320 million (USD 93.2 million). The Boulevard Riyadh is a luxury retail and office complex located in the north of Riyadh, Saudi Arabia’s capital city. This purchase is to be financed via a SAR 370 million capital increase, consisting of an in-kind contribution from the seller as well as the issuance of additional cash units. Why it matters?&nbs...

Saudi Arabia based, National Commercial Bank (NCB) is planning the redemption of its Tier 1 Sukuk, worth SAR 2.7 billion, on the 23rd of March, 2021. According to a statement issued on Tadawul, the Sukuk is to be redeemed at face value. Why it matters? NCB opted to redeem the Sukuk, at the contractual first call date on the 23rd of March, 2021, with the face value of the Sukuk and any periodic profit distribution amount payable (for the period ending the 23rd of March, 2021) to be transferred to Sukukholders on that date, in accordance with their respective holdings as...

Attending a meeting with the Indonesian National Islamic Finance Committee (KNEKS), Dubai Islamic Bank (DIB) asserted its support to promote the export of Indonesian Halal products to the Middle East and North African region. KNEKS Executive Director, Ventje Rahardjo, commented on DIB’s willingness to support its efforts by facilitating communication with the Dubai Islamic Economy Centre, Dubai Economy, Dubai Chamber of Commerce and Industry and other relevant parties.  Why it matters? The support of...

The Government of Malaysia is to announce new assistance initiatives for individuals and companies that continue to be impacted by COVID-19. According to the Finance Minister of Malaysia, Tengku Datuk Seri Zafrul Tengku Abdul Aziz, the initiatives will be focused on hard-hit sectors such as tourism and retail, where special attention is to be given to create awareness of the assistance available for individuals and Micro Small Medium Enterprises (SME). Why it matters? According to Tengku Zafrul, further assistance is required for key sectors in the country due to the economic unc...

Indonesia’s emerging Takaful sector is gaining market share with high long-term growth potential, according to Fitch Ratings (Fitch). In 2021, Fitch anticipates improvement in Takaful contribution growth and investment yield, in parallel with the expected recovery in the Indonesian economy at 6.6% for 2021. This is to be driven by rising government support under the Islamic Economic Masterplan 2019-2024, as well as accelerated digitalisation.  Why it matters? Indonesia’s Islamic finance ecosystem is still developi...

Governance for Takaful Operators (Islamic Insurance Companies)Islam, Islamic banking, Musharakah, Shariah, Takaful, Wakalah, Shura, Al-falah, Participation

Sustainable Sukuk Markets: The Role of Sovereign SukukFatwa, Fiqh, Gharar, Halal, Ijtihad, Mudaraba, Murabaha, Riba, Salam, Shariah, Shariah compliant, Sukuk, Wakalah, Waqf, Ijarah Contract, Profit Equalization Reserve, Provision, Receivables, Reserves

Pakistan’s Habib Bank Limited (HBL)’s Islamic Banking and Akhuwat, a micro-finance institution, have signed a Memorandum of Understanding (MoU) to provide Shariah-compliant housing finance facilities to applicants identified by Akhuwat.  Why it matters?  The agreement will enhance the financial inclusion of HBL by providing financing of cost-effective, sustainable housing units for underserved segments of Pakistan, and help support Pakistan’s economic development, according to Muhammad Aurangzeb, President and Chief Executive Office...

Dubai Islamic Bank (DIB) in the United Arab Emirates (UAE) and Bank Syariah Indonesia (BSI) have stated their willingness to collaborate with each other in areas of global Sukuk, human resource capacity building, training in risk management, product development and financing structure cooperation for Shariah-based product development. This was stated at the Indonesia Emirates Amazing Week 2021 (IEAW) held in March 2021.  Why it matters?  Bilateral relationship between the two banks is expected to faci...