The Saudi Stock Exchange (Tadawul) has announced the formation of a Shariah Advisory Committee (Committee) as part of its dedication to maintaining the highest quality of governance over its offered investment instruments on the 21st of April 2022. Why it Matters? The Committee consists of representatives from the largest financial institutions who will work toward a unified Shariah-compliant rulebook set to be approved by respective Shariah Boards of the Committee members. In addition, the Committee will be in charge of periodically reviewing and approving the list of Shariah-co...

Saudi Arabia’s Bank Albilad has reported SAR 490 million (USD 130 million) in profit in the first quarter of 2022 (1Q 2022), recording a 25% yearly growth from 2021 and a 15% quarterly increase, according to a bourse filing. Why it Matters?  The increase in profit was attributed to higher income from investment and financing activities, coupled with higher revenue which stood at SAR 1.04 billion (USD 277 million), compared to SAR 912 million (USD 243 million) in the previous year.   Details   The bank’s assets increased to SAR 116 bi...

Qatar-based Masraf Al Rayan announced that it had launched a Sustainable Financing Framework to advance its Environment, Social and Governance (ESG) agenda on the 19th of April 2022. Why it Matters?  Masraf Al Rayan’s sustainability strategy follows Qatar’s National Environment and Climate Change Strategy, launched in 2021. The launch of the Framework allows the bank to offer ESG-linked funding opportunities to investors and apply those proceeds to finance ESG-compliant sustainable projects. According to Fahad bin Abdullah Al Khalifa, Group Chief Executive Office...

The Kingdom of Saudi Arabia’s (KSA) National Debt Management Center (NDMC) announced on the 19th of April 2022 that it had closed its April 2022 Sukuk issuance of SAR 9.98 billion (USD 2.7 billion) under the Saudi Arabian Government SAR-denominated Sukuk Programme. Why it Matters?  Under the programme, the NDMC has successfully closed three previous issuances in 2022, in January, February, and March, sized SAR 2.83 billion (USD 755 million), SAR 13.18 billion (USD 3.5 billion), and SAR 10.38 billion (USD 2.8 billion), respectively.  Details  The iss...

Saudi-based Islamic Development Bank (IsDB) has recruited a group of banks to oversee the sale of five-year US dollar-denominated Sukuk, or Islamic bonds, as per a document released on the 19th of April 2022.  Why it Matters?  The offering is expected to be of benchmark size, at least USD 500 million, in the form of a five-year fixed-rate Sukuk which is to be issued subject to market conditions. Details  Investor calls for the issuance were set to begin on the 19th of April 2022, arranged by Citi, Dubai Islamic Bank (DIB), HSBC, KFH Capital, Natixis, SMBC Nik...

The Science Based Targets initiative has released its widely anticipated ‘foundations’ paper for a Net Zero alignment standard for financial institutionsSBTi outlined its Guiding Principles and a conceptual framework that will link together ongoing efforts to tackle the thorny issue of what should qualify as ‘net-zero aligned’Net-zero ambitions often far outstrip the data required to fully validate the efforts being undertaken, but innovative analytic approaches and technology are helping fill the gaps The Science Based Targets Initiative (SBTi) has releas...

An appeal has been made to stakeholders in Muslim communities to provide financial support for the establishment of an Islamic Bank in Ghana in order to address the financial needs of Muslims, by Alhassan Andani, Former Chief Executive Officer (CEO) of Stanbic Bank, on the 16th of April 2022 at the Ramadan Islamic Finance Forum organised by the Islamic Finance Research Institute Ghana (IFRIG) in Accra.  Why it Matters? The establishment of the Islamic bank is said to have become necessary in Ghana to assist Muslim entrepreneurs and individuals that are experiencing harsh living...

Net zero-related engagement is important for moving investees in the direction of long-term targets, but carries a risk if policies don’t keep upThe RFI Foundation’s (RFI) research indicates that for Environmental, Social, and Governance (ESG) as a whole there may be a ‘margin of safety’ when screening engagement targets through Shariah screens, and more research is needed to evaluate its presence, especially in relation to transition-related investmentsIf a similar ‘margin of safety’ from Shariah screens exists when considering emissions-related issue...

The government of Bangladesh has announced its plans to raise BDT 50 billion (USD 574 million) through the issuance of its third set of Islamic bonds, in the form of Bangladesh Government Investment Sukuk (BGIS), known as Istisna Sukuk, in an auction on the 19th of April 2022, for the implementation of a rural infrastructure development project.  Why it Matters?  Both the project duration and Sukuk tenure have been set for five years and the necessary preparations for the issuance have been completed by the country’s central bank, Bangladesh Bank (BB), which will...

The Saudi Real Estate Refinance Company (SRC), the Public Investment Fund’s fully owned entity, has announced the successful closure of its SAR 10 billion (USD 2.7 billion) domestic Sukuk programme.  Why it Matters? The programme received a positive response within the local market as seen in the oversubscription of its issuances within the year duration from the offering of the first series, reflecting investors’ confidence in the local housing market and economy. According to SRC’s Chief Executive Officer (CEO), Fabrice Susini, the company hopes to contin...