In a statement issued by Algeria’s Supreme Islamic Council (SIC), plans aimed at offering Shariah-compliant financial services were approved, as the country seeks out new funding sources to counter its financial troubles.  Algeria has been impacted by a fall in energy revenues due to oil price declines, which has been exacerbated with the on-set of COVID-19. According to media reports, these declines have compelled the Government of Algeria to cut spending and postpone some investment projects that had been planned for 2020.  According to Algeria’s SIC,...

Fitch Ratings Indonesia (Fitch) has affirmed Indonesia-based Asuransi Sinar Mas' (ASM) National Insurer Financial Strength (IFS) rating at AA+(idn), with a Stable Outlook.  According to Fitch, affirmed rating reflects a strong capacity to meet policyholder obligations, relative to all other obligations upon ASM, as well as ASM’s strong capitalisation and prudent investment risk profile. The ratings also account for ASM’s favourable business profile, given its substantive business franchise within the Takaful industry, a favourable operating scale, we...

UMW Holdings (UMW)’s MYR 2 billion Islamic Medium-Term Notes Programme (2013/2028) has been reaffirmed at AA2 by RAM Ratings (RAM), along with the reaffirmation of the A1 rating on its MYR 2 billion Perpetual Sukuk Programme. The Outlook is Stable on both ratings.  Based on RAM, the UMW’s Perpetual Sukuk Programme is rated two notches lower than UMW’s long-term corporate credit rating, reflecting the risk of deferrable profit distributions, as well as the extremely subordinated rights of Sukukholders to any claims, in t...

The Malaysian Economic Statistics Review (MESR) issued in the last week of July 2020 by the Department of Statistics Malaysia (DOSM), indicates a gradual recovery for the Malaysian economy in the coming months.  According to the report, which is based on a review of the latest social and economic statistics of the country, the recovery will be supported by manufacturing sales and production as well as sales and volumes of wholesale and retail trade, along with external trade.  Datuk Sri Dr Mohd Uzir Mahidin, Chief Statisticia...

Datuk Ooi Eng Hock, Northern Chapter Chairman of the Federation of Malaysian Manufacturers (FMM), has warned that up to 70% of Small and Medium Enterprises (SMEs) in Malaysia may not be able to meet their loan obligations without an extension of the loan moratoriums, set to expire in September 2020.  Datuk Ooi stated that this 70% would be able to facilitate payments only for another two months, after which the SMEs would be compelled to reduce operational expenses via staff retrenchment, reduced production, or forced closures.  With SMEs a...

According to IFN Islamic Fintech (IFN), as at the 30th of July 2020, the global Islamic fintech industry comprises 142 firms. This compares to 127 firms reported at the end of June 2020.  According to IFN, the United Kingdom leads the count with 27 companies offering Shariah-compliant financial products and services, with Malaysia hosting the second largest number of Islamic fintech firms at 19. This is followed by the United Arab Emirates (15), Indonesia (13), Saudi Arabia (9), and the United States of America (9). The report also outlined key strategic priorities for...

Following the passing of a law in 2016 facilitating Shariah-compliant banking operations in Uganda, Islamic leaders across the country have expressed their frustration at the lack of initiative taken by the Bank of Uganda (BoU) to promote the development of the country’s Islamic banking industry. As reported by the local press, the Daily Monitor, the BoU has yet not established the Central Shariah Advisory Council, whose responsibility will be to oversee the regulation and supervision of Islamic banking in the country. According to a former Deputy Governor...

At a virtual conference organised by the Philippine Economic Zone Authority (PEZA) and Bangko Sentral ng Pilipinas (BSP), discussions regarding the expansion of foreign direct investments (FDI) into the Philippines via the development of Islamic finance were put on the table.  Speaking of the Republic Act (RA) 11439 signed by President Rodrigo R Duterte on the 22nd of August 2019, PEZA’s Director General, Charito B Plaza, highlighted its importance in maximising the full potential of Islamic finance in the Philippines to encourage inclusive economic g...

MDEC: Islamic Fintech & Digital Financial Inclusion Report 2020Halal, Sadaqah, Shariah, Shariah compliant, Waqf, Zakat, Participation

Malaysian Rating Corporation (MARC) has assigned a final rating of AA-IS with a Stable Outlook for the proposed medium-term MYR 5.0 billion Sukuk Murabahah  program of Malaysian Resources Corporation (MRC). With no change from its preliminary rating, the final rating was based on MRC’s established track record in the property development market, specifically pertaining to transit-oriented developments, which has benefitted from robust support extended by key shareholder Employees Provident Fund. The rating is also supported by MRC’s pre-let and pre-sell busine...