The Selangor state administration has announced the upcoming issue of the Air Selangor Sustainability Sukuk worth MYR 10 billion. According to Menteri Besar Dato’ Seri Amirudin Shari, the Sukuk will be issued under Pengurusan Air Selangor (Air Selangor), with a maturity period of between one and twenty years.  This issuance is a part of the Selangor administration’s MYR 35.42 billion plan to enhance and upgrade water infrastructure within the state over the next thirty years. Expected investment for 2020 is MYR 429 million, whilst 2021 will see an anticipated MYR 3...

An Islamic peer-to-peer (P2P) financing platform, the first of its kind, has been launched in the United Kingdom (UK). Qardus, a London, UK-based firm, states that it serves two purposes; one is to provide an opportunity for Small and Medium Enterprise (SMEs) to obtain Shariah-compliant funding, the other is to allow investors to fund ethical SMEs across a variety of sectors.  According to Qardus, the platform is open to investors in the UK and Europe (both Muslim and otherwise), with a minimum investment of GBP 100, offering a target return of 10% annually.  ...

The Government of Indonesia has issued a regulation on the 7th of July 2020, empowering the Indonesian Deposit Insurance Corporation (LPS) to self-manage its liquidity and to avoid banks from failing. Prior to this regulation, LPS was only able to pursue a reactive role, as it was responsible for rescuing insolvent banks by liquidating them and taking on shareholder responsibilities, selling or moving assets, and evaluating and cancelling unviable arrangements to help address their liquidity issues. Under the new regulation, the LPS will be allowed to place a maximum 2.5%...

The International Monetary Fund (IMF) forecasts the Middle East and North Africa (MENA) region's economy to contract by 5.7% in 2020 as opposed to its earlier estimated economic downturn of 3.3% projected in April 2020. According to the IMF's regional economic outlook for July 2020, the sharp decline in oil prices and uncertainty over the duration of the COVID-19 pandemic have posed challenges to the recovery of the global economy.  According to the report, the region's oil exporters would experience an economic decline of 7.3% in 2020 due to volatile oil prices and the COVID-...

The Ministry of Finance (MoF) of the United Arab Emirates (UAE) has launched the first phase of its e-Dirham program in the Ministry of Economy, the Ministry of Energy and Industry and several National Banks, according to media reports. The e-Dirham program, which provides a range of financial facilities to issue bank cards and digital transactions, is expected to be extended to include more Federal Government agencies and National Banks, according to a press release on the 13th of July 2020. According to Younis Haji Al Khoori, the Undersecretary of the MoF, the objective...

According to a survey published by Bank Indonesia (BI), BI’s Prompt Manufacturing Index came in at 28.55% for the second quarter of 2020, compared with 45.64% recorded during the first quarter of 2020. BI notes that an index reading of above 50 reflects an expansion, whilst any level below 50 indicates a contraction. According to the survey, key component indexes, including those for overall output and new orders contracted for the second consecutive quarter.  BI stated that the contraction in the second quarter was led by COVID-19-induced lower levels of demand and...

Statistics from the National Economic Registry of the Ministry of Economy, show that the total number of business licences issued in the United Arab Emirates (UAE) for the month of June 2020 reached 652,885. This is 0.64% higher than the 648,684 issued in May 2020. Industry experts within the UAE view the increase as a positive economic indicator, reflecting business continuity and investor trust in the UAE economy. According to local media, the number of business licences isused in Dubai, UAE alone, stood at around 300,000 at the end of June 2020, reflecting 40% of total li...

The 2018/2019 bailout of Invest Bank of Sharjah, UAE (conventional bank) was a relatively discreet and undramatic affair. Capital and liquidity support were provided by the Sharjah Government and the Central Bank respectively after real-estate and construction asset quality pressures drove severe losses. Economic patriotism, as well as sector challenges around asset quality, growth, technology, regulatory and compliance costs are already driving consolidation and - like the ongoing Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank deal – are made easier by common state shareh...

Alinma Bank (Alinma)’s Long-Term Issuer Default Rating (IDR) has been affirmed by Fitch Ratings (Fitch) at BBB+, with a Stable Outlook. Alinma’s Viability Rating (VR) has been put on Rating Watch Negative (RWN) and its Support Rating Floor (SRF) has been affirmed at BBB+. The Stable Outlook reflects the same as that of the Saudi Arabia sovereign, with Alinma’s IDRs being driven by its SRF. Alinma’s IDR is driven by the BBB+ Support Rating (SR) and SRF are based on the high probability of support available to Alinma, if required, by the Go...

Introduction The global economic crisis basically involves a prolonged significant decline in the economic activities of the country and worldwide due to various economic factors such as inflation, financial crisis, and an increase in interest rate. This crisis is known as the Economic Depression. Meanwhile, depression can become worse when hyperinflation hits the economy and resulted in an Economic Collapse.The economic crisis has greatly affected the country with a slump in the Gross Domestic Product Index (GDP) due to a decline in economic activities such as manufacturing, product selli...