A neutral 2023 sector outlook has been assigned for Europe, the Middle East and Africa (EMEA) Islamic banks by Fitch Ratings (Fitch) as profitability is expected to increase and liquidity to remain strong, while capital buffers are anticipated to remain adequate for the risks and asset quality is to remain stable. Additionally, credit growth will keep outpacing that of conventional banks. Why it Matters? The outlook reflects healthy economic circumstances in the major Islamic markets in EMEA, according to Fitch. Islamic banks in the EMEA region have a generally low market share o...

Nigeria-based Moove announced plans to raise USD 30 million through a debut Sukuk (Sukuk al-Istisna) offering made via private placement, as per a statement on the 8th of December 2022. Why it Matters? The funds will be used by Moove to expand to 2,000 Electric Vehicles (EV) in the United Arab Emirates (UAE) over the upcoming year. It is anticipated that this fleet of EVs will help cities like Dubai achieve their Net Zero goals by reducing carbon dioxide emissions by over 5,000 metric tonnes annually. According to Mohieddine (Dino) Kronfol, Chief Investment Officer of Global...

New guidelines on Islamic Capital Market Products and Services (ICMPS Guidelines) have been issued by the Securities Commission of Malaysia (SC), and they will serve as the primary source of reference for all the different offerings of Islamic Capital Market (ICM) products and services for both sophisticated and retail investors, as per a statement on the 28th of November 2022. Why it Matters?  The ICMPS Guidelines go into effect on the 28th of November 2022 and consolidate, in one comprehensive central document, all Shariah requirements and principles that were previou...

Carbon emissions mitigation to address climate change is a simpler problem to tackle than nature loss, and the struggle to create ‘first-best’ economic incentives is not over. With nature loss, the problem is spread out further through supply chains and requires more of a systems approach to align incentives at the front lines of nature loss, which can’t succeed without sharing the benefits as well as the burdens.  Climate change is often viewed as having one missing ‘price’, but in practice that solution has eluded our best attempts to find a ‘first...

Al Rajhi Bank Malaysia (ARBM) has announced the official launch of its digital bank arm Rize, offering a wide range of the entity's existing services along with additional products which will be made available gradually, as per a statement made on the 1st of December 2022. Why it Matters? Services provided by Rize will include deposits, withdrawals, and transfers, account and personal finance management, debit cards application, purchase, and maintenance, ATM services, e-statements, and tailored personal financing. Rize is currently aimed toward retail consumers, but the small a...

Government agencies and the private sector are working in full swing to consider the funding mechanisms available to support the Saudi Green Initiative.The first package to develop the green economy was launched, which consists of investments of more than SAR 700 billion (USD 186.41 billion), and several goals were set for protecting the environment and facing climate challenges.This column discusses the financing options available to those involved in implementing these green initiatives. In addition to direct investment from the private sector and self-financing from government agen...

Ethical considerations are becoming an increasingly important and mainstream part of the financial markets, as more and more stakeholders are eager to engage in causes that have a positive impact on society or the environment, such as sustainable agriculture, renewable energy, and climate action.  The following are a few of ethical investment trends emerging: Increased Awareness and Interest in Ethical Investing: Over the past few years, there has been a growing awareness and interest in ethical investing, as more and more people are looking for ways to align their investments wi...

Malaysia-based JB Cocoa Sdn Bhd (JB Cocoa), the wholly owned subsidiary of investment holding company JB Foods Limited’s (JB Foods) has announced the successful issuance of the first tranche of MYR 100 million Wakalah Sukuk, under an MYR 500 million nominally-valued Sukuk Wakalah programme based on Wakalah Bi Al-Istithmar. Why it Matters?  The issuance, which was made to support the company in diversifying its fundraising requirements by utilising the capital market for business expansion despite the current difficult economic environment, received commitment and...

Millennials, those born between 1981 and 1996, and Generation Z (Gen Z), those born between 1997 and 2012, are reshaping the asset management industry. These younger generations have different attitudes towards investing than previous generations, and this is driving changes in the products and services offered by asset management companies.  Generational EdgeAccording to the World Economic Forum, there were 1.8 billion millennials in the world as at November 2021, accounting for 23% of the total population. This generation was the largest adult cohort globally, as well as the mo...

Malaysia-based Yinson Holdings Berhad (Yinson) has announced the successful issuance of a total of MYR 360 million in nominal value of Islamic notes under its perpetual MYR 1 billion Sukuk Wakalah Programme, as per a bourse filing.  Why it Matters? The Sukuk was made in two offerings: on the 2nd of November 20222, Sukuk worth MYR 250 million was issued; and on the 5th of December 2022, the remaining MYR 110 million was issued. The funds raised from the issuances will be used for Yinson's capital expenditures as well as the refinancing of its current and upcoming financing or...