The National Mortgage Corporation of Malaysia, also known as Cagamas, has launched aggregate issuances of Sukuk and conventional bonds worth MYR 945 million in its second exercise for 2021, according to a company statement released on the 22nd of February 2021.  The issuances comprise of MYR 245 million Islamic Commercial Papers (ICPs) with a three-month tenure, MYR 300 million three-month Conventional Commercial Papers (CCPs) and MYR 400 million one-year Conventional Medium-Term Notes (CMTNs).  Why it matters?  Proceeds of...

Zubair Mughal, Chief Executive Officer (CEO) of AlHuda Center of Islamic Banking and Economics (AlHuda CIBE) and Fikru Tsegaye, CEO of Ethiopian Reinsurance (Ethiopian Re) have signed a Memorandum of Understanding (MoU) on the 10th of February 2021 to promote the Takaful and Re-Takaful industry in the East African and Ethiopian market.  Why it matters?  Takaful is gaining global recognition and is not only restricted to specific countries, but also being implemented in Africa, Asia, Europe and America due to its built-in features of sustainability an...

Sharjah Islamic Bank (SIB) announced its plans of distributing 8% cash dividends to shareholders at its 45th General Assembly held on the 20th of February 2021. This is made possible by SIB’s reported net profit of AED 405.8 million for the year 2020 under turbulent economic conditions, amidst the COVID-19 pandemic.  Why it matters? According to Abdul Rahman Al Owais, Chairman of the Board of Directors, SIB plays a vital role in the economy of the United Arab Emirates (UAE). With the country providing a stable banking sector, Owais expects continuous improvem...

Etiqa Family Takaful Berhad (EFTB) announced the donation of 2.7 million ‘Low Dead Volume’ (LDV) syringes to the Government of Malaysia in support of the first phase of the National COVID-19 Immunisation Plan, on the 18th of February 2021. Why it matters? LDV syringes play a vital role of ensuring the administration of the entire dose of the vaccine to a recipient. It has been designed to have low wastage with only a little residue of the vaccine remaining in the syringe and in the needle.  Given that Malaysia is at a crucial stage...

According to the Qatar Financial Centre (QFC), e-commerce sales in Qatar are estimated at over USD 3.2 billion by 2022, up from USD 1.3 billion reported in 2017. E-commerce penetration in the country more than doubled to 37% in 2019 from 15% in 2018. Given this growth potential, the QFC believes that Islamic financial technology (Fintech) has an opportunity to benefit from e-commerce development in Qatar.  Why it matters? With traditional financial institutions curbing lending to small and medium enterprises (SME), opportunities are open for digital banks...

The Islamic Development Bank (IsDB) and the International Islamic Trade Finance Corporation (ITFC) have signed an Agency Agreement to support the execution of the COVID-19 Restore Program (R2) via the provision of trade finance and line of finance operations in member countries, according to a statement issued on the 21st of February 2020.  Why it matters?  The Agency Agreement will boost ongoing efforts of IsDB member countries to alleviate the impact of the COVID-19 pandemic and assist economies with faster recovery. In add...

Economists divide the macro-economy into two parts the real sector and the financial sector. While the real sector of the economy produces the goods and services, the financial sector, which is made up of the banking system and capital markets, serves to provide the funding needed for the real sector to function. This funding occurs in two broad forms; debt and equity, while debt has lower cost, it is riskier than equity. One can invest directly in the real sector by establishing a business or indirectly via investments in bonds, stocks or...

Municipal Sukuk as a Model for Financing Municipalities and Public Service Institutions in Saudi ArabiaIjara, Islamic banking, Murabahah, Sukuk, Takaful, Wakalah, Participation

In partnership with California-based Jumio, a provider of artificial intelligence-powered identity verification and e-Know-Your Customer (eKYC) solutions, Al Baraka Islamic Bank (AIB) has announced the launch of its first digital banking platform.  The platform uses Jumio’s biometric-based identity verification technology, allowing new retail customers to register bank accounts by simply uploading copies of their national identification cards, and their pictures as taken themselves using their smartphones.  Why it matte...

Bank Islam Malaysia Berhad (BIMB) has signed a memorandum of understanding (MoU) with Malaysia-based Noor Luminous, the owner of TheNoor digital application. BIMB stated that it will offer Islamic banking products and facilities via TheNoor app. Appointed as the app’s official bank, BIMB’s Chief Executive Officer, Mohd Muazzam Mohamed explained that the bank would be able to provide various services, including retail financing, small and medium enterprise financing, Takaful, credit and debit cards, cash managem...