As reported by Standard and Poor’s (S&P) Dow Jones Indices, Shariah-compliant benchmarks including the S&P Global BMI Shariah and the Dow Jones Islamic Market (DJIM) World Index, significantly outperformed during the first half of 2020, entering positive territory, compared to the 6.8% year-over-year (YoY) decline witnessed by the S&P Global Broad Market Index (S&P Global BMI).  Year-to-date (YTD) as of 30th June 2020, the S&P Global BMI Shariah was up 2.3% YoY, whilst the DJIM World Index was up 3.0% YoY.&...

Deputy Science, Technology and Innovation Minister, Ahmad Amzad Hashim, stated that Malaysia’s Ministry of Finance has agreed to an additional MYR 100 million allocation to Malaysia Debt Ventures (MDV) to finance the Technology Start-up Funding Relief Facility (TSFRF). A survey done by Malaysian Global Innovation and Creativity Centre (MAGiC) conducted during the first week of April 2020, revealed that almost  50% of start-up companies required between MYR 500,000 to MYR 1 million to ensure sustainability of their businesses through 2020. Launc...

Statistics issued by Bursa Malaysia on the 15th of July 2020 showed market participation by local retail investors at 41.4%, compared to 25% mid-June 2019. With the on-set of COVID-19 and more foreign investors pulling out, participation by retail investors increased 62% compared to the 2019 average, according to Kenny Yee, Head of Research at Japan-based Rakuten.  Other factors that contributed to the boom in retail investment were a 1,200 point decline in the Kuala Lumpur Composite Index’s (KLCI), following the announcement...

Bahrain-based SICO has signed an agreement to begin offering Sukuk-based Murabahah services on the new platform established through the collaboration of the Bahrain Bourse (BHB) and the Central Bank of Bahrain (CBB).  According to Shaikh Khalifa bin Ebrahim Al Khalifa, Chief Executive Officer of the BHB, the Ijarah Sukuk-based Murabahah service allows participating financial institutions to offer Murabahah services via an efficient system, which aims at addressing growing inter-bank requirements, and also serves to promote Bahr...

The latest capital market report issued by the Qatar Financial Centre (QFC) indicates that Qatar’s asset management industry is showing fast growth, with assets under management (AuM) estimated at USD 19.6 billion at the end of 2019. According to the report, global market volatility enhanced by the onset of COVID-19, will result in investment portfolios across the world witnessing a rebalancing and structural transformation in 2020.  Investment managers will seek to rethink their current operating models, with a greater emphasis on becoming leaner and more...

The Government of Pakistan issued PKR 48 billion via the auction of Ijarah Sukuk through the State Bank of Pakistan (SBP), with five-year variable and fixed rental rates. The aim of this issuance is to assist in the financing of the budget deficit.  According to the SBP, the Government raised PKR 27 billion through variable Ijarah Sukuk, whilst the remainder PKR 21 billion was raised via fixed rental rate Sukuk. The cut-off margin on the variable rental rate Sukuk was minus 20 basis points (bps), whilst that on the fixed rental rate Sukuk was...

A joint statement released by REDmoney Group and the Malaysia Digital Economy Corporation (MDEC) announced the nine strategic priorities arrived at based on input from decision-makers, lenders, stakeholders and other key players in the Islamic fintech ecosystem. Of these, the key initiatives include the setting up of a national Islamic fintech taskforce, a renewed emphasis on enhancing digital and Islamic financial literacy (within the B40 segment in particular), facilitating smart partnerships amongst players within the ecosystem, and ensuring a greater level of readiness...

Are Islamic Banks More Efficient Than Conventional Banks? The Meta-regression VerdictIslamic banking, Participation

Saudi British Bank (SABB) announced the completion of its SAR 5 billion Tier II Sukuk, via private placement. This makes SABB’s first transaction in the debt capital market as a merged bank, having legally finalised its merger with Alawwal Bank on the 16th of June 2019. According to media reports, the Sukuk will offer a return based on the current lending price (Saudi Arabian Interbank Offered Rate), for six months, alongside a 195 basis point profit margin. Callable on the 22nd of July 2025, the Sukuk is expected to mature on the 22nd ...

Official data cited by Fitch Solutions Country Risk & Industry Research (Fitch Solutions), estimates that 210,000 households in Malaysia from the upper-middle income group (those having disposable incomes between USD 25,000 and USD 50,000) will experience a disproportionate fall in income levels, resulting from the movement control order (MCO) implemented to contain COVID-19.  The restrictions imposed by the MCO commenced in March, when Prime Minister Tan Sri Muhyiddin Yassin effectively closed down most of Malaysia in efforts to contain the pandemic. This lockdown has sev...