United Arab Emirates- (UAE) based Arada Developments (Arada) has hired banks for the arrangement of a debut US dollar-denominated Sukuk sale, as per a document issued on the 24th of May 2022. Why it Matters? Due to ongoing market volatility and many issuers turning to loans, the Gulf region has seen a lack of bond sales in 2022. The offer has the potential to be the region’s first dollar bond issuance since the USD 750 million Sukuk offering made by the Sharjah government in late March. The hired entities will conduct investor calls from the 24th to 30th of May 2022 for the...

The financial system in Malaysia has entered a new digital era, with the announcement made earlier in May 2022, naming five firms receiving the country's first five digital banking licences. Why it Matters? Digital banks are anticipated to help the country's financial inclusion efforts by removing geographical barriers, lowering transaction costs, and fostering better financial management. Individuals and organisations can benefit from more customised solutions backed by data analytics thanks to digital banking, which also offers a safer and more convenient way to conduct busines...

In Brief:Financial institutions that specialise or focus their climate-related efforts too narrowly can see much more rapid diminishing returns on their efforts compared to those with a more systemic perspective. As an institution drills down into high-emitting sectors, they need to use what data are available to still consider how the rest of their customers’ activities could make decarbonisation more or less challenging.  Net Zero has quickly captured the attention of financial institutions and investors, but as the number of Net Zero pledges rises, expectations are rising th...

Morocco's Société Centrale de Réassurance (SCR) has received the necessary licences from the Insurance and Social Security Supervisory Authority (ACAPS) to establish a Retakaful window, allowing it to conduct Takaful reinsurance activities in the country. Why it Matters? Morocco’s emerging and growing Retakaful market is foreseen to have a significant role in developing the country’s participatory economy and contributing to the development of new kinds of insurance and reinsurance on a local and worldwide level. With these additional permits, SCR...

Islamic financial technology (fintech) solutions, which remain underfunded and open to innovation, are said to have the potential to set dramatic disruption and transformation in the USD 2.7 trillion-valued Islamic finance industry. Why it Matters? The Islamic fintech transaction volume within the Organisation of Islamic Cooperation's (OIC) 57 member countries stood at USD 49 billion in 2020, accounting for only 0.7% of the global fintech transaction volume, as per DinarStandard (DS) and Elipses' Global Islamic Fintech Report 2021. However, Islamic fintech was expected to witness...

The Islamic banking sector in the Sultanate of Oman (Oman) continues to expand rapidly, owing to rising consumer knowledge of Shariah-compliant products, high retail demand, and supporting laws. According to the Central Bank of Oman, on the 15th of May 2022, the country's Islamic banks and windows had total assets of OMR 6 billion (USD 15.6 billion) in the first quarter of 2022 (1Q 2022), up 10.7% year-on-year (YoY). Why it Matters? There are two fully-fledged Islamic banks in Oman, Bank Nizwa and Alizz Islamic Bank, as well as five Islamic banking windows at conventional banks, all...

The Bahrain-based General Council for Islamic Banks and Financial Institutions (CIBAFI) has announced the completion of its Sustainability Guide for Islamic Financial Institutions (IFIs) in a webinar titled CIBAFI Sustainability Guide: Enabling Sustainability Integration in Islamic Banking Sector held in conjunction with its 2022 Annual Meetings on the 20th of April 2022.  Why it Matters? Developed by the CIBAFI Sustainability Working Group (SWG) with the support of the Islamic Development Bank (IsDB), the guide is intended to serve as a resource for Islamic banking practiti...

A physical roadshow with investors during a pandemic is almost impossible. Virtual roadshows become instant marketing success for fixed-income instruments. They are now considered fundamentals during the COVID-19 situation and its Omicron variant. For the first time, almost all fixed-income instruments had no choice back in 2020 but to use this tool if they wanted to raise funds. BackgroundDue to travel restrictions from COVID-19, there were almost no physical meetings with fixed-income investors for debt capital market deals that took place in 2020. Nevertheless, the Sukuk industry...

DDCAP Group has announced the appointment of Husain Abdulwahed Alkhaja as its Gulf Cooperation Council (GCC) Regional Director and as a Director of DDCAP (DIFC) Limited, according to a press release issued on the 12th of May 2022. Why it Matters? Husain brings a 30-years banking experience in the Islamic financial marketplace from various esteemed financial institutions, regionally and internationally. According to Stella Cox CBE, DDCAP Group Managing Director, Husain will work with the Group directors to further develop its products and services offering as it expands its regional f...

Malaysia-based Bank Rakyat has announced the issuance of Senior Sukuk Wakalah worth MYR 1.5 billion (USD 341 million) under its MYR 10 billion (USD 2.3 billion) Sukuk Wakalah Programme and through its special purpose vehicle Imtiaz Sukuk II Berhad, as per a statement made by the bank on the 12th of May 2022. Why it Matters?  The Sukuk, issued in two tranches comprising a five-year tenured MYR 700 million (USD 159 million) offering and a seven-year tenured MYR 800 million (USD 182 million) offerings, received a final bid-to-cover ratio of 1.30 times the final issue size,...