United Arab Emirates-based Al Hilal Takaful, the Islamic insurance sector of Al Hilal Bank, is now a part of Oman-based Siraj Holding, following the completion of the acquisition by the private investment firm.  According to media reports, the transaction was approved by all key stakeholders, including the shareholders, the Securities and Commodities Authority (SCA), as well as the Insurance Authority, and was stated to be in compliance with all other regulatory requirements. The acquisition signifies a new phase of operations for Al Hilal Takaf...

Malaysia-based Islamic fund management firm, PMB Investment (PMBI) has announced its plans to launch two new unit trust funds to reach its goal of having MYR 2 billion in assets-under-management (AUM) by the end of 2020.  According to media reports, PMBI set this target in 2019, supported by strong growth in its retail as well as corporate segments.  Currently, PMBI’s AUM stands at MYR 1.4 billion, according to PMBI’s Chief Executive Officer, Najmi Mohamed. Najmi stated that the achievement of PMBI’s goal would be a milestone given...

Following the sluggish manner behind the development of a legal framework for Islamic Finance, Uganda’s Ministry of Finance, Planning and Economic Development (MOFPED) now has until the end of the current week to pen down regulations pertaining to Islamic Finance in Uganda.  According to media reports, the MOFPED was supposed to list the enabling legal framework, following the amendment of the Financial Institutions Act of 2004, four years ago. However, Kawempe North Legislator, Abdul Latif Sengendo Sebagala, stated that the Ugandan president, Yo...

Media reports confirmed the virtual signing of a Statement of Intent, signifying Uzbekistan’s foray into the realm of Islamic Finance, with the development of this new form of financing considered as a crucial alternative financial model to allow the country to achieve its Sustainable Development Goals.  According to Trend News Agency, the Capital Market Development Authority (CMDA), the United Nations Development Programme (UNDP), and the Islamic Development Bank (IsDB), signified their cooperation with regards to the introduction of Shariah-compliant financin...

According to AmBank Islamic’s Chief Executive Officer, Eqhwan Mokhzanee, small and medium-sized enterprises (SMEs) have a host of opportunities open to them, given the shift in consumer behaviour amidst COVID-19, with a greater emphasis now on cleanliness and hygiene.  Eqhwan noted that it was ever important for SMEs to be prepared for a transition out of their traditional business models in addition to identifying new and emerging growth areas.  With the pandemic creating more health-conscious consumers, Eqhwan stated that the Halal market presented a lot of...

Malaysia’s recent poverty line income (PLI) revision to MYR 2,208 from MYR 980 has been commended by the World Bank. According to Kenneth Simler, World Bank Senior Economist, prior to the most recent revision, Malaysia’s PLI had not been revised since 2005, adding that the value of the poverty line had hardly changed in real terms since the first PLI was established back in 1977.  According to Simler, this update ensured that hardships and deprivations previously viewed as being socially acceptable were no longer considered so in 2020. The World Bank stat...

In its attempts to limit the economic impact of the COVID-19 pandemic, Indonesia’s Tax Directorate General (Tax Office) has announced an increase in tax incentives for businesses in Indonesia.  A statement issued by the Tax Office mentioned that previously announced tax relief that was set to expire in September 2020 have been extended the year end. These measures include tax breaks for small and medium enterprises (SMEs) and some manufacturing workers, as well as a discount offered on corporate tax instalments.  Further, the Government of...

Islamic Securities in Corporate Financial HierarchyMusharakah, PLS, Sukuk

Pakistan based power utility, K-Electric has launched a secured and listed Sukuk of up to PKR 25 billion for a tenure of seven years including a PKR 5 billion greenshoe option. According to K-Electric, PKR 23.708 billion has been already raised through a pre-IPO placement with the remaining PKR 1.292 billion being offered to the general public. According to the Sukuk prospectus, the Sukuk has been rated AA+ by VIS credit rating agency and it is expected to offer a return of 3-month KIBOR plus 1.70% per annum, subject to a floor of 2% and a maximum of 25% to...

The Malaysian Investment Development Authority (MIDA) has identified 433 new projects which could potentially bring in investments worth MYR 97.4 billion into the country, according to Datuk Seri Mohamed Azmin Ali, Minister of International Trade and Industry of Malaysia.  Mohamed Azmin stated that these high-impact projects are likely to directly impact Malaysia’s economic growth, and added that although the country was affected by the COVID-19 pandemic, several initiatives, such as the granting of tax exemptions under the Prihatin&nbs...