The International Monetary Fund (IMF) has predicted the gross domestic product (GDP) of Saudi Arabia for year 2020 to contract by 6.8%, driven by the economic impacts of the COVID-19 pandemic, as well as reducing oil prices. This is a reflection of a rapid deterioration of Saudi Arabia’s economy as the IMF's latest prediction is 4.5% lower than its earlier projection made two months earlier. Consensus states that the Middle East and North African region could end up losing hundreds of billions of dollars in revenue as oil prices sl...

Sultan Haitham bin Tariq al-Said, the Sultan of Oman has issued a royal order announcing an emergency interest-free financing program to support businesses that have been most impacted by the COVID-19 pandemic.  According to a statement issued online by the Government Communication Center, the business categories included under this special scheme will comprise of entrepreneurs, (especially holders of the Riyada card), small and medium scale enterprises (SMEs), those who are self-employed, as well as beneficiaries of the Oman Development...

Indonesia and 14 other countries agreed on the 23rd of June 2020, to establish a Regional Comprehensive Economic Partnership (RCEP) in 2020 to enable their economies to rebound from the slowdown caused by the COVID-19 pandemic. According to local media reports, the negotiating countries account for approximately 30% of the global gross domestic product, and if signed, the trading deal would create one of the largest economic blocs globally.  According to Iman Pambagyo, who has led the RCEP trade negotiating committee since 2013, the content of the agreement has been agree...

The Government of Maldives has announced that it will be issuing USD 300 million worth Sukuk in the international market. According to the President of Maldives, Ibrahim Mohamed Solih, the planned Sukuk issuance will replace the previously planned sale of Samurai securities worth USD 300 million through Japan Bank for International Corporation. Speaking at a press conference held at the President's Office, Solih stated that the negative impact on the economy will be easily manageable if the Government is able to raise USD 300 million through the issuance of...

In a document released by one of the banks arranging the deal, Dubai Islamic Bank (DIB) stated its plans to issue more than USD 200 million, tapping into its existing Sukuk due 2026. In a securities tap, an existing transaction is re-opened for subscription, utilising the same documentation as done previously. DIB has set the price guidance for the Sukuk at 240-245 basis points (bps) over midswaps, this being lower than its initial price guidance of around 250 bps.  The deal, which closed on the 23rd of June 2020, has seen DIB raise over US...

S&P Global Ratings (S&P Global) has affirmed Al Khaleej Takaful Insurance Company (AKT)’s BBB credit rating along with a Stable Outlook, according to a filing made by AKT with the Qatar Stock Exchange. According to the filing, the affirmation of the credit rating is driven by better operating performance of the company compared to the average performance of its local and regional competitors, as well as the minimal impact of the COVID-19 pandemic on AKT. Commenting on S&P 's confirmation of the company'...

Indonesia’s Minister of Finance, Sri Mulyani Indrawati, now expects gross domestic product (GDP) estimates for the quarter ended June 2020 to contract 3.8% compared to the previous estimate of a 3.1% decline.  Indonesia’s Planning Minister, Suharso Monoarfa, quoted that the significant loss in working hours between the 30th of March 2020 and the 6th of June 2020 had resulted in a loss of IDR 362 trillion in terms of purchasing power.  Given this, the Planning Minister stated at a parliamentary hearing that up to 5.5 million people could be left unemploy...

In its “Indonesia Public Expenditure Review” report published on the 22nd of June 2020, the World Bank (WB) has urged Indonesia to consider carrying out tax and subsidy reforms in order to improve the quality of its public spending. The WB considers the fact that Indonesia has limited space for development spending due to low revenue and systemic constraints across sectors  along with inadequate data as well as information systems. Senior Economist at the WB, Ralph van Doorn, stated that Indonesia's subsidy reforms and increased investment...

Malaysia’s Minister of Finance, Tengku Datuk Seri Zafrul Abdul Aziz, has stated that the country’s debt levels could reach the statutory ceiling of 55% of the gross domestic product (GDP) by the end of 2020, from the current level of 52%. However, the Minister suggested Malaysia’s exposure to foreign currency fluctuation risks to be minimal, given that 97%-98% of Malaysia’s debts are domestic debts. According to Zafrul, the rise in debt levels will be fuelled by measures implemented by the Government of Malaysia to save lives, protect livelihoods and stimula...

With the development of the National Sharia Economic and Financial Committee (KNEKS), Indonesia’s Vice President, Ma'ruf Amin, stated his expectations of rapid development in Shariah-based finance and economics in the country.  As the Chairman of KNEKS, Amin is directly responsible for the development of the Shariah sector in Indonesia. According to Amin, all key members of the economy should increase focus on at least four areas to fully realise the potential of the Shariah economy in Indonesia. Amin stressed the need for Indonesia t...