The Republic of Mozambique (Mozambique) has witnessed an increase in the sale and consumption of halal products, including food and beauty products, in line with the global demand for halal-certified items, according to the President of the Halal Commission of Mozambique (CHM), Maulana Ibraimo Issa, in an interview with Salaam Gateway. Why it Matters? Despite a lack of definitive data, there's plenty of evidence of local market expansion, such as an increase in the number of companies seeking and obtaining halal certification, as well as the country's rising Muslim population. Ab...

The International Islamic Liquidity Management Corporation (IILM) has issued USD 7.23 billion worth of short-term Sukuk through nineteen series of offerings year-to-date, as the market continues to see an increase in demand for Shariah-compliant financial instruments. Why it Matters? The IILM is a frequent issuer of short-term Sukuk in a variety of tenors and amounts to meet the liquidity needs of Islamic financial services institutions. The organisation’s short-term Sukuk issuances averaged more than USD 1 billion each month, with regular offers typically having tenors ran...

The Republic of Senegal (Senegal) has concluded the sale of XOF 330 billion (USD 525.4 million) Sukuk Ijarah through the Société Nationale de Gestion et d’Exploitation du Patrimoine Bâti de l’État (SOGEPA SN) in three tranches of seven-years; 10-years, and 15-years tenors, respectively, as per a press release issued on the 8th of June 2022. Why it Matters? Senegal stands as the first African nation to issue a sovereign Sukuk and this issuance represents the county's return to the regional Islamic debt capital markets in six years, makin...

Pakistan's Islamic finance industry is anticipated to continue growing in the medium term, owing to robust government support and steadily expanding public demand for Islamic products, according to Fitch Ratings.  Why it Matters?  The medium-term boost in the industry is anticipated with the effective consideration of the declaration made by Pakistan’s Federal Shariat Court (FSC) in April 2022, stating the complete and absolute prohibition of all forms and manifestations of Riba (interest) and its appeal to the government for the implementation of its decision by the 3...

Some Sukuk are not the most liquid papers out on the secondary market. The not ‘trading hands much’ state is due to most investors (MENA-based) following the ‘buy and hold’ strategy. Illiquidity for listed security is a problem for issuers who plan to tap the market on a regular basis. This issue has become apparent with international listings where few trades are executed. We see this issue with a deal size of less than USD 400 million.To tackle the issue of illiquidity, which will affect the pricing of future issuances, it is recommended to aim for benchmark-...

Nigeria-based TAJBank Limited (TAJBank) is set to launch the country’s first private sector Sukuk offering as part of an NGN 100 billion (USD 241 million) programme, to be offered in tranches of NGN 10 billion (USD 24 million) as soon as the necessary regulatory approvals are obtained. Why it Matters?  The Sukuk are expected to be issued soon under a Mudaraba structure, with the goal of increasing TAJBank’s capital base and eventually funding high-impact sectors that create jobs and improve the Nigerian population's standard of living while also opening up invest...

Egypt has announced that it will delay its first Sukuk issuance until the forthcoming Fiscal Year (FY) 2022/2023, instead of the current FY 2021/2022, which ends in June, with the primary goal of funding the budget deficit, as per a statement by Minister of Finance, Mohamed Maait, given on the sidelines of the Islamic Development Bank (IsDB) annual meetings hosted from the 1st to the 4th of June 2022.  Why it Matters? The Sukuk issued by Egypt are not commercial bonds; rather, they are intended to finance the country's budget deficit while also luring new investors to the Egypti...

The International Islamic Trade Finance Corporation (ITFC) has renewed a USD 175 million Murabaha Trade Financing agreement with the Republic of Maldives’ (Maldives) State Trading Organization (STO) to aid in the import of basic essential goods. Why it Matters?  ITFC and Maldives inked the original Murabaha trade facility agreement in October 2019. The financing facility will help with the purchase of necessary commodities such as petroleum products, staple foods, medicine, and medical equipment. Details  The agreement was signed by ITFC’s Chief Ex...

Qatar International Islamic Bank (QIIB), Qatar Islamic Insurance Company (QIIC), the Atlanta Insurance Company, and the Moroccan Real Estate and Tourism Loan Bank (CIH Bank) have signed a memorandum of understanding (MOU) for the establishment of a takaful insurance company in Morocco. Why it Matters?  The firm is being launched in response to an increase in demand for participatory financial and insurance services in the Moroccan market. The main goal of forming the firm is to carry out a number of Takaful insurance activities in Morocco, in compliance with the framework and reg...

Tenaga Nasional Berhad (TNB) has announced the issuance of MYR 1.5 billion (USD 342 million) sustainability Sukuk Wakalah by its wholly-owned subsidiary TNB Power Generation Sdn Bhd (TNB Genco), under its 30-year MYR 10 billion (USD 2.3 billion) Sukuk Wakalah Programme, as per a bourse filing made on 2nd of June 2022. Why it Matters? The issuance will fund TNB’s Nenggiri Hydroelectric Power Plant project in Kelantan, Malaysia. TNB Genco is expected to support TNB’s sustainability commitment to mitigating climate, moving towards decarbonisation and renew...