RAM Ratings (RAM) has reaffirmed Encorp Systembilt (ES)’ MYR 1.575 billion Sukuk Murabahah at a rating of AA1/Stable. ES is the concessionaire for the development of 10,000 units of teachers’ accommodation quarters across Malaysia, which were constructed in 2003 and handed over to the Government of Malaysia in early 2004.  RAM’s rating reaffirmation incorporates ES’ strong ability to service its debt, supported by the tight transaction structure and extremely predictable inflow of monthly concession payments from the Government of Ma...

Moody’s Investors Service (Moody’s) has affirmed the long-term issuer rating of Dubai Islamic Bank (DIB) at A3, and has also affirmed DIB’s Baseline Credit Assessment (BCA) and Adjusted BCA at ba2. Moody’s has changed its Outlook on DIB to Negative from Stable.  Despite the possible negative impacts on DIB’s financial fundamentals posed by the current challenging macro-economic environment, the affirmation of DIB’s long-term issuer rating reflects strong capitalisation, funding as well as liquidity of DIB. The affirm...

Due to the significant disruptions caused by COVID-19, Asian Development Bank (ADB), has revised down its economic growth forecast for Indonesia for 2020 to 1.0%, from 2.5% previously projected in April 2020. This estimate is noted as the weakest since the Asian financial crisis more than two decades ago Winfried Wicklein, ADB’s Country Director for Indonesia, stated that the COVID-19 pandemic had resulted in significant economic disruption in Indonesia (as well as globally), negatively affecting jobs and livelihoods, particularly amongst the more vulnerable se...

Asian Development Bank (ADB) has predicted that Bangladesh's economic recovery from the downturn caused by COVID-19 would be V-shaped, although ADB’s fellow multilateral lenders stayed cautious of Bangladesh's growth prospects in the short term. In the Asian Development Outlook Supplement (ADOS) dated 18th of June 2020, ADB stated that the Bangladesh economy would grow at 4.5% this fiscal year (ending 30th of June 2020), the highest in Asia, trailing the Government of Bangladesh's projection of 5.2%. Bangladesh's economy also recorded the highest Gros...

The State Bank of Pakistan (SBP) has raised PKR 47.24 billion through the auction of a five-year sovereign Sukuk Ijarah on the 18th of June 2020. This Sukuk issuance comes under the approval received from the Federal Cabinet of Pakistan to raise PKR 700 Billion to finance the budget deficit, particularly to counter the impact of the COVID-19 pandemic. According to local media reports, the Sukuk attracted bids worth PKR 115.29 billion against an initially set target of PKR 75 billion. In the competitive auction the SBP picked up Rs.46.44 billion at a furth...

In line with the vision and directives of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, the Vice President and Prime Minister of the United Arab Emirates (UAE) and Ruler of Dubai, Etihad Credit Insurance (ECI) as well as the UAE Federal Export Credit Company (FECC) have joined hands with the Dubai Islamic Economy Development Center (DIEDC) to increase UAE exports via Shariah-compliant export credit solutions. In a Memorandum of Understanding (MoU) inked between DIEDC and ECI, the two companies agreed to establish a committee to implement efforts directed at bol...

Malaysia's Islamic capital market is beginning to see a surge in the Sukuk and equity capital markets and is projected to be busy from June to August 2020, despite the expectation that the financial industry will see lower revenues and profitability this year, according to CIMB Islamic Bank's Senior Managing Director and Deputy Chief Executive Officer, Mohamad Safri Shahul Hamid.  Hamid stated that the capital market has been inactive in the last three months following the Movement Control Order (MCO) in mid-March 2020, to curb the spread of the COVID-...

The Impact of Islamic Financial Practices, Development Opportunities and Possibilities on Consumers’ Satisfaction in a non-Islamic CountryIslam, Islamic banking, PLS

Indonesia's debts are expected to increase significantly in 2021 as the Government of Indonesia intends to increase its spending to help the country recover from the COVID-19 pandemic, according to the Indonesian Ministry of Finance’s Fiscal Policy Agency Head, Febrio Nathan Kacaribu. According to Kacaribu, Indonesia’s debt to gross domestic product (GDP) ratio will increase to between 33.8% and 35.8% in 2021 compared to 29.8% recorded at the end of 2019. Kacaribu added that the Ministry would continue to look at various financing...

In a document released on the 18th of June 2020, the Islamic Development Bank (IsDB) announced the sale of a USD 1.5 billion five-year Sukuk. The proceeds will be used to finance projects in member countries in response to the COVID-19 pandemic.  According to an investor presentation by the IsDB, the funds are expected to go towards financing sustainable projects, including employment generation and the financing of small and medium-sized enterprises, as well as to support educational programs, The presentation revealed that the IsDB has also intr...