Saudi Arabian Takaful operator Aljazira Takaful Taawuni Company (ATT) has announced the enforcement of the decision to merge with Solidarity Saudi Takaful (Solidarity) and transfer all assets and liabilities of Solidarity to ATT, according to a Tadawul filing dated 28th of February 2021.   Why it matters?  As a result of the merger deal with both ATT and Solidarity fulfilling the merger conditions, ATT will issue 12.066 million ordinary shares at SAR 10 per share in favour of the shareholders of Solidarity. ATT, as...

Qatar is anticipated to play a vital role in accelerating the development of the Islamic finance industry in non-Muslim countries, according to experts from Carnegie Mellon University in Qatar (CMU-Q). The experts, which included John O’Brien, Senior Associate Dean, Faculty and Outreach; and Fuad Farooqi, Area Head, Business Administration, stated that Qatar was well-positioned to be a ‘positive catalyst’ to promote such opportunities.  Why it matters?  Qatar’s role in developing the Islamic finance industry in non-Muslim coun...

In support of the launch of The Sustainable Issuance Guidance, the Dubai Financial Market (DFM) stated that it has set a target to become the region’s key sustainable financial market by 2025. In this regard, collaborations with leading institutions and the broader finance sector in Dubai (United Arab Emirates – UAE) are essential, according to Hassan Al Serkal, Chief Executive Officer (CEO) of DFM, to ensure the promotion of best practices pertaining to Environmental, Social, and Governa...

The Islamic banking sector in Malaysia continued its expansion in 2020 despite economic challenges from COVID-19, according to Fitch Ratings (Fitch). Islamic financing accounted for 37% of Malaysia’s total banking system by the end of 2020, compared to a ratio of 35% at the end of 2019. Fitch noted that Islamic financing contributed almost all of Malaysia’s banking sector growth in 2020, driven by household financing and banks that concentrated on promoting Islamic products as part of the ‘Islamic First’ strategy. Why it matters? Performance in 2020 is tes...

AM Best has affirmed United Arab Emirates (UAE)-based Noor Takaful General (NTG)’s Financial Strength Rating (FSR) at B (Fair) and the Long-Term Issuer Credit Rating of ‘bb’, with a Negative Outlook. Previously, these ratings had been placed under review with negative implications.  Ratings Rationale  The ratings reflect NTG’s robust balance sheet strength, satisfactory operating performance, limited business profile, marginal enterprise risk management (ERM), and is reinforced by its risk-adjusted capitalisation, which was at the stro...

Maybank Islamic has signed an MYR 700 million Shariah-compliant credit facility with Sapura Energy in Malaysia, an integrated oil and gas services and solutions provider. According to a statement filed with the Bourse, the new funding facility has a tenure of up to five years and comprises a Murabahah revolving credit facility as well as invoice-financing facilities.  Why it matters? According to the statement, the new facility is set to boost the financial strength of Sapura Energy group of companies, allowing the Group to undert...

Dr Ishrat Hussain, Adviser to the Pakistan Prime Minister on Institutional Reforms stated that whilst the Islamic banking sector in the country had experienced significant growth over the past twenty years, the Takaful sector in the country required further promotion to improve. The announcement was made at the launch of Salaam Takaful, the rebranding ceremony for formally known Takaful Pakistan.  Why it matters? Dr Hussain stressed on the need for the promotion of Takaful to uplift lives of the low income class in Pakistan through initiatives s...

In the week to the 26th of February 2021, the United States (US) treasury yields climbed significantly as inflation bets picked up, resulting in a global sell-off on fixed income investments. As a result, fund managers pulled back on market exposures, whilst analysts on Wall Street scaled back bullish strategies.  As the US Treasury yields rise, fixed income markets around the world remain cautious.  Why it matters? Sovereign and corporate Sukuk issuances globally have come in at their lowest levels to date (26th of February 2021)...

The Financial Services Authority in Indonesia (OJK) is pushing for the transformation of Islamic banking in the country. Speaking at the virtual launch of the Islamic Banking Development Roadmap 2020-2025 on the 25th of February 2021, Heru Kristiyana, Chief Executive of OJK Banking Supervision, noted that the domestic Islamic banking industry is subject to several challenges at present.  Why it matters? The OJK wants every customer choosing Shariah banking to be able to choose better quality...

Malaysia’s Employment Provident Fund (EPF) has announced the launch of a Shariah-compliant private equity (PE) separate managed account (SMA) fund with an allocation of USD 600 million (MYR 2.43 billion).  Why it matters? According to the Chief EPF Officer, Tunku Alizakri Alias, this is the first and largest Syariah PE SMA fund worldwide, with a global investment mandate focusing on direct and co-investment strategies pertaining to growth and buyout transactions. This initiative has been planned since 2018, with the EPF looking to diversify its inve...