The Indonesian Ulema Council (MUI) is promoting the use of the newly merged Bank Syariah Indonesia (BSI)’s services amongst Muslims in Indonesia, encouraging them to use these services in efforts to develop the country’s Shariah banking industry.  Why it matters? According to Ahmad Darodji, Chief of the MUI Office in Central Java, Shariah-compliant banks in Indonesia currently hold an 8.5% share of the market, with the remainder of banking sector customers opting for the use of conventional ban...

Effective implementation of the COVID-19 vaccination initiative and containment of the pandemic with no further outbreaks are the key factors contributing to Malaysia’s economic recovery, according to RAM Ratings Services (RAM). RAM estimates Malaysia’s economic growth to come in at 5.0% for 2021, following a 5.6% contraction on 2020, the sharpest decline since 1998, mainly due to the spread of COVID-19. Why it matters? Malaysia has already implemented several initiatives including movement restrictions and various stages of lockdowns, which have taken a tol...

Saudi Arabia-based investment management and advisory firm, Jadwa Investment (Jadwa) has launched its first Shariah-compliant, closed-ended mezzanine financing fund that will operate through a commodity Murabahah arrangement. The fund will offer mezzanine financing to Dubai International Financial Centre (DIFC)-based holding company, ADES Investments Holding.  Why it matters? The new fund is in line with Jadwa’s strategy to offer new Shariah-compliant asset classes to expand its clients’ service offerings across n...

RHB Islamic Bank (RHB Islamic) in Malaysia has announced the launch of RHB Trade Solution-i, Malaysia’s first Islamic trade financing solution. The solution caters to purchases and sales, with a new product structure based on Wakalah and Istijrar Shariah concepts.   Why it matters? According to RHB Islamic’s Managing Director and Chief Executive Officer, Datuk Adissadikin Ali, the solution facilitates comprehensive trade transactions with less documentation, once the facility has...

Moody’s Investors Service (Moody’s) has completed a periodic review of the ratings of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). Through this review,  Moody's has reassessed the suitability of the ratings in the context of recent developments, the relevant principal methodologies, and also includes a comparison of the financial and operating profile to similarly rated peers. Ratings Rationale  The review considers ICIEC's Aa3 insurance financial str...

Ziraat Katilim registered as the fourth largest participation bank in Turkey in 2020, with a market share of 14% and a network base of 105 branches domestically. Ziraat Katilim has seen robust asset growth, with total assets at TRY 60.186 billion at the end of 2020, compared to TRY 36.392 billion at the end of 2019 (TRY 14.350 billion at end 2017).   Turkey’s participation banking industry is dominated by established players like Kuveyt Türk (34% market share at the end of 2020), Türkiye Finans (18% sh...

At its first monthly ‘Global Biz’ forum held on the 24th of February 2021, the Philippine Economic Zone Authority (PEZA), discussed opportunities of developing Islamic finance and banking in the Philippines. According to the Executive Vice President of Bangko Sentral ng Pilipinas (BSP), Attorney Noel P Tianela, Islamic banking systems should be built and structured around principles that would create greater financial stability within the economy.  Why it matters?  The BSP has started to develop a comprehensive re...

Shariah banking products are quite complete in terms of meeting customer requirements with regards to Shariah-compliance, comfort and safety, with pricing now have become more competitive with conventional banks over time, stated John Kosasih, President Director of Bank BCA Syariah (BCA Syariah). However, simply having these products available in the market is not sufficient to grow the industry. It is still important to ensure adequate exposure and campaigning amongst all key stakeholders. Why it matters? The level of awareness with regards to Islamic financial literac...

Malaysian Rating Corporation (MARC) has affirmed its AA-IS rating on Malaysian port operator Pelabuhan Tanjung Pelepas’ (PTP) Islamic Medium-Term Notes (Sukuk Murabahah Programme), with a Stable Outlook. PTP has increased the limit of the Sukuk Murabahah Programme to MYR 2.15 billion from MYR 1.9 billion, and this has been taken into consideration by MARC for the rating affirmation.   Ratings Rationale The main driver for the ratings affirmation is PTP’s robust position as a major regional transhipment container port,...

The United Arab Emirates (UAE) Takaful provider Dar Al Takaful (DAT) has repaid AED 100 million of acquisition financing to Emirates NBD Bank ahead of time, despite challenging business conditions in 2020, according to a statement issued on the 24th of February 2021.  Why it matters?  In June 2020, DAT obtained AED 215 million of financing from Emirates NBD Bank to support the acquisition of Noor Takaful, which is the insurance arm of the UAE-based Noor Investment Group. Given that 2020 was a cha...