According to Moody’s Investor Services (Moody’s), participation banking assets are set to increase in Turkey over the next five years, from around 7.2% of total banking assets as at the end of December 2020. Total participation banking assets in Turkey grew 54% year-on-year (YoY) in 2020, ahead of total banking sector asset growth of around 36% YoY, said Moody’s.Why it matters? The Government of Turkey has been investing in the country’s regulatory and supervisory environment pertaining to the participation banking sector over the past few y...

Arsalaan (Oz) Ahmed has been appointed as the new Chief Executive Officer (CEO) of Al Rajhi Banking and Investment Corp (Al Rajhi Malaysia), effective immediately, following approval from Bank Negara Malaysia.  Arsalaan Ahmed, formerly the CEO of HSBC Amanah, succeeds Steve Chen Thien Yin, who left Al Rajhi Malaysia in November 2020. The statement issued by Al Rajhi Malaysia to this effect noted that up until Arsalaan Ahmed’s appointment, Zarir Mohd Rawi, the Chief Operating Officer at Al Rajhi Malaysia had served as ac...

Malaysian Rating Corporation (MARC) has affirmed the AA-IS(CG) rating of TG Excellence’s MYR 3 billion Perpetual Sukuk Wakalah Programme (Perpetual Sukuk), and concurrently upgraded the corporate credit rating of TG Excellence’s parent Top Glove Corporation (Top Glove or the Group) to AA+ from AA. The ratings Outlook is Stable.  Company Background TG Excellence, which is 100% owned by Top Glove, is a special purpose vehicle set to raise funds for Top Glove. According to MARC, Top Glove provides a subordinated unconditional and irrevocable corp...

An Agency Agreement has been signed between Dr Bandar Hajjar, President of the Islamic Development Bank (IsDB) and Ayman Sejiny, Chief Executive Officer of the Islamic Corporation for the Development of the Private Sector (ICD) to promote investment and trade in IsDB Member Countries through the IsDB Group Business Forum (THIQAH).  Why It Matters?  The Agreement highlights the role of the private sector in sustainable development, promotion of investment and trade, as well as the creation of jobs among IsDB Member countries.  In...

United Arab Emirates (UAE) based Islamic finance provider, Aafaq Islamic Finance (Aafaq), has launched a new financing programme entitled ‘Osool’ in partnership with Dubai SME, which is an agency of the Dubai Economy (Department of Economic Development of the Government of Dubai), to develop the Emirati small and medium enterprise (SME) sector, according to local media reports.  Why It Matters?  ‘Osool’ will focus on assisting Emirati SMEs and entrepreneurs with competitive financing solutions tha...

Iran launched its first Sukuk Market Index (Sindex) at its over-the-counter Stock Exchange, the Iran Fara Bourse (IFB), on the 14th of February 2020. Sindex is a benchmark index that will facilitate the measurement of risk-rewards in the debt market. The index comprises government Sukuk and securities, Islamic treasury bills, short-term and long-term securities, as well as composites. Why it matters? Mohammad Ali Dehghan Dehnavi, Chairman of Iran’s Securities and Exchange Organisation stated that&nbs...

The International Islamic Liquidity Management Corporation (IILM) concludes its highest reissuance since its inception till date with its second auction for 2021, comprising USD 1.35 billion short-term Sukuk in three tenures.  Why it matters?  Dr Umar Oseni, Chief Executive Officer of the IILM, commented on the success of the auction, highlighting the strong investor confidence in the IILM under weak conditions prevailing in global markets and economies due to the on-going COVID-19 pandemic. The Sukuk’s s...

RAM Ratings (RAM) has reaffirmed Manjung Island Energy Berhad’s (MIEB) MYR 3.86 billion Islamic Securities (2011/2030) (Series 1) rating at AAA/Stable, and its MYR 990 million Islamic Securities (2011/2031) (Series 2) enhanced AAA(s)/Stable rating.  Ratings Rationale  Series 1 reaffirmed rating is based on RAM’s expectation that the debt coverage for Series 1 will remain robust despite operational issues that TNB Janamanjung (TNBJ) has faced.   Series 2 reaffirmed enhanced rating reflects the unconditional and binding guar...

HSBC Bank Middle East (HBME) has completed its inaugural Islamic trade facility in the Middle East, North Africa and Turkey (MENAT), worth USD 100 million with Qatar Islamic Bank (QIB) in January 2021, according to a statement issued to the Qatar Stock Exchange on the 14th of February 2021.  Why it Matters?  This is the inaugural transaction for HBME within the MENAT region, with Qatar being the first country where the facility was executed, according to Abdul Hakeem Mostafawi, Chief Executive Officer (CEO) of HSBC Qatar. Qatar was chosen for HB...

Indonesia’s Finance Minister, Sri Mulyani Indrawati, has further increased the 2021 budget for the country’s National Economic Recovery (PEN) programme, which includes the mass vaccination programme, to IDR 688.33 trillion. This is up from the budget of IDR 619 trillion stated earlier in January 2021 and the original budget of IDR 372.3 trillion estimated for 2021.  Why it matters? Although Indrawati did not discuss the impact of the PEN increase on the Government of Indonesia’s budget deficit plan, it was noted that...