Fitch Solutions Country Risk & Industry Research (Fitch Solutions) has slashed its estimate of Malaysia’s gross domestic product (GDP) growth for 2021 to 4.9%, from 10.0% estimated previously. The revision comes as Fitch Solution’s previously predicted downside risks pertaining to economic growth, monetary and fiscal performance for Malaysia materialised. This followed the lockdown measures imposed under the latest movement control order (MCO) put in place in January 2021, to control the third wave of COVID-19 in Malaysia. Why it matter...

Several commercial entities have come forward to set up a digital bank in Saudi Arabia that will be fully compatible with Shariah guidelines. The proposed digital bank is subject to approvals from all concerned official agencies, as stated in media reports.  Why it matters? In February 2020, the Saudi Central Bank (previously the Saudi Arabian Monetary Authority), had issued additional licensing requirements and guidelines for the establishment of digital-only banks in the country. These guidelines were issued as a part of Saudi Arabia’s e...

President of Islamic Development Bank (IsDB) Dr Bandar Hajjar and Chief Executive Officer (CEO) of the Islamic Corporation for the Development of the Private Sector (ICD), Ayman Sejiny, have signed the Agency Agreement for the implementation of IsDB Group’s R2 COVID Support Package. Why it matters?  The Agency Agreement for the implementation of R2 COVID Support Package is expected to assist IsDB Group Member Countries to revive their economies by recovering from the adverse impacts of the...

The Malaysian Rating Corporation (MARC) has downgraded Alpha Circle’s MYR 160 million Senior Sukuk Musharakah to AIS from AA-IS, whilst the MYR 55 million Junior Sukuk Musharakah has been lowered to BBBIs from AIS. The ratings outlook is Negative. Alpha Circle is the funding vehicle of NERS, with a 12-year government contract until May 2023. The downgrade results from issues pertaining to the management of the foreign labour force amidst COVID-19 and related border closure...

Sudan-based Faisal Islamic Bank (FIB),  has acquired a card-issuing license from Mastercard. This allows FIB to issue Mastercard-branded debit, credit as well as prepaid payment cards in Sudan, allow which can be used in-store, at automated teller machines, as well as online. FIB’s partnership with Network International will also facilitate businesses to benefit from convenient, secure payment options around the world.  Moawia Ahmed Elamin, Chief Executive Officer of FIB, stated that FIB remains focused on enhancing and improv...

Within Indonesia, the market share of the Islamic financial services industry remains relatively small, with Islamic financing accounting for just a 9.9% market share relative to the total banking sector, according to Wimboh Santoso, Chairman of the Board of Commissioners of the Financial Services Authority (OJK). Speaking at a webinar on the 10th of February 2021, Wimboh stated that Indonesia’s Islamic finance industry may not be able to achieve its 20% market share target. According to Wimboh, this is due to several reasons, including lack of develo...

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has signed a memorandum of understanding (MoU) with the General Council for Islamic Banks and Financial Institutions (CIBAFI). Secretary Generals of both institutions signed the agreement. Why it Matters? The main aim behind the MoU is to strengthen the cooperation between the two institutions and to support collaborative activities and initiatives focused on capacity building, promoting awareness as we...

Islamic Development Bank (IsDB) Group member, the International Islamic Trade Finance Corporation (ITFC) has finalised a framework agreement with the Government of Tunisia, aimed at increasing trade flows and building trade capacity in the country. The USD 1.5 billion funding will support state-owned companies in Tunisia to import essential commodities like energy and industrial products, as well as access trade development programmes aimed at driving exports. The funds will also go towards the promotion of inter-regional trade between Tunisian and other Arab and African nations...

The SEC Capital Market Financial Literacy Committee (FLTC) in Nigeria has proposed the introduction of Capital Market Studies into the curriculum of secondary and tertiary educational institutions in the country. The FLTC comprises key stakeholders that together can facilitate this change. According to Akeem Oyewale, Chief Executive Officer, Marble Capital Limited and member of SEC Capital Market (FLTC), initial steps have already been made to ensure the inclusion of capital market studies into the secondary education curriculum. This has been done via the engagement of agencies responsib...

The Effect of Islamic Corporate Social Responsibility, Shariah Compliance, Firm Size and Sharia Supervisory Board on Profitability of Sharia Commercial Banks in IndonesiaHalal, Islamic banking, Shariah, Zakat, Provision