Dubai Islamic Bank (DIB) reported that it has provided approximately USD 2.5 billion in 2020 towards COVID-19 support for over 54,000 of its customers in retail and corporate sectors, under the Targeted Economic Support Scheme (TESS) rolled out by the Central Bank of the United Arab Emirates (UAE).  Why it matters?  This support was provided to ‘ensure business continuity’ and minimal customer impact throughout the year. Dr Adnan Chilwan, Chief Executive Officer of DIB, announced DIB’s repositioning to #ReadyForT...

MICO International Halal Bureau of Certification Tanzania (MIHB), a newly established Halal Bureau in Tanzania, is seeking recognition from global bodies such as Hafsa Halal Organization of Turkey and the Malaysian Government body in charge of Halal certification to provide universal Halal certification, according to local media reports.  Why it matters?  Obtaining universal Halal certification will enable MIHB to be a recognised foreign Halal certification body in Tanzania. The goal of MIHB is to eliminate doubtful products via continuous inspe...

Primary market rankings of the International Islamic Liquidity Management Corporation (IILM) have affirmed Maybank Islamic as IILM’s most active primary dealer for 2020. Standard Chartered Bank and Kuwait Finance House were ranked in second and third positions, respectively.  In terms of primary dealer activity and secondary market footprint, First Abu Dhabi Bank, Kuwait Finance House and Abu Dhabi Islamic Bank were ranked as the top three dealers, respectively.  Why it matters? IILM plays a crucial rol...

Fitch Ratings (Fitch) has updated its Sukuk rating criteria. According to a statement issued by Fitch, the update does not consist of any material changes, hence Fitch does not anticipate the application of said criteria to result in any changes to ratings of its existing transactions. The report explains Fitch’s approach to assigning and maintaining ratings for existing and new originator-backed (asset-based) Sukuk issuances.   Why it matters? The structures of Sukuk vary and are likely to involve different underlying contractual arrangements. Therefore, each str...

Jimah East Power (JEP) has received a rating affirmation of AA-IS on its outstanding MYR 8.98 billion Sukuk Murabahah, with a stable outlook from the Malaysian Rating Corporation (MARC). Ratings Rationale The affirmed rating take into account (1) JEP's probable cash flows from its 2x1000MW coal power plant, held under a 25-year power purchase agreement (PPA) with Tenaga Nasional Berhad (TNB), (2) its operational and financial connection to TNB, with TNB holding a 70% indirect stake in JEP, and (3) the credit st...

The Securities Commission Malaysia (SC) has joined hands with Bursa Malaysia to provide temporary relief measures for all listed issuers. The statement issued on the 17th of February 2021 states that these initiatives are on top of those relief measures introduced in 2020. The measures include extended time to submit financial statements, along with relief provided to listed issuers with an inadequate level of operations, as well as unsatisfactory financial conditions. Why it matters? Offering an extension to submit financial statement...

In a statement released on the 17th of February 2021, Saudi Arabia’s National Debt Management Center, announced that it had closed the February 2021 Sukuk issuance worth SAR 3.16 billion (USD 840 million) under the  Government of Saudi Arabia’s SAR-denominated Sukuk programme.  Why it matters? According to Bashar Al-Natoor, Global Head of Islamic Finance at Fitch Ratings, this announcement gives prominence to Saudi Arabia’s role as a leader of the global Islamic finance sector,...

Historically, 90% of global responsible finance assets were located in developed economies in Europe and North AmericaRecent surveys find a significant growth in the Middle East and Asia of awareness by asset owners of the financial performance benefits of responsible financeRFI is helping to support this growth of responsible finance in Islamic markets, including with a new report launch this week The momentum of responsible finance is well established in developed economies in Europe and North America, where 90% of the global market was concentrated in 2018, according to the Gl...

Indonesia reported an economic contraction of 2.07% for 2020, its first full-year contraction since 1998, fuelled by a slump in consumption and investment. Following the large-scale stimulus programmes introduced into Indonesia, President Joko Widodo has set a target of restoring the fiscal deficit to 3.0% of gross domestic product (GDP) by 2023, as stated in media reports. Indonesia’s Finance Minister, Sri Mulyani Indrawati is also on board, remaining optimistic of achieving 5.0% GDP growth for 2021, amidst a narrowing w...

The General Council for Islamic Banks and Financial Institutions (CIBAFI) has signed Technical Assistance agreements with the Islamic Development Bank (IsDB) to boost CIBAFI’s role in promoting sustainability and advocating for Islamic finance. Why it matters? The agreements allow for the development of the Islamic finance industry globally, via development policy recommendations, capacity building activities, and publications on various topics like sustainability, Islamic banking preparedness t...