Fitch Ratings (Fitch) has assigned an expected rating of BBB (EXP) to Indonesia’s proposed US dollar-denominated sovereign global Sukuk. This rating is in line with Indonesia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) of BBB. The Sukuk will be issued via Perusahaan Penerbit SBSN Indonesia III (PPSI-III), a legal entity set up in Indonesia for the purpose of issuing Shariah-compliant securities of the Government of Indonesia, in foreign currencies in international markets.  The expected rating is driven by the view that a default in these senior...

Halal small and medium-sized enterprises (SMEs) have been advised to brace for a new era of trade as the global digital economy grows. Associate Professor Dr Suhaimi Ab Rahman, Deputy Dean of Universiti Putra Malaysia's Economics and Management Faculty, stated that Halal SMEs have to be competent in e-commerce including the use of information and communications technology (ICT) in business. Ab Rahman added that only 20% of SMEs in Malaysia engaged in the digital economy, implying that local SMEs, including Halal SMEs, are still far behin...

The Dubai Airport Freezone Authority (DAFZA) has entered into a Memorandum of Understanding (MoU) with the Arab-Brazilian Chamber of Commerce (CCAB), during a webinar held by the CCAB. The MoU has been entered into with the aim of boarding CCAB as a Halal Trade and Marketing Center (HTMC) service partner. Amna Lootah, DAFZA‘s Assistant Director General, noted that economies of Brazil and the UAE are highly complementary and have the potential for significant collaboration in a number of trade and investment sectors, that are still untouched or on...

Following 2.97% year-over-year (YoY) economic growth in the January to March quarter this year, Indonesia’s Finance Minister, Sri Mulyani Indrawati, expressed her views at an online briefing, regarding a projected 3.1% YoY decline in the current April-June 2020 quarter.  Citing COVID-19 as the main cause for these projections, Indrawati noted that the partial lockdowns and social distancing requirements had contributed to the expectations, adding that this very weak growth would make the situation challenging. The expected decline in economic growth in the current q...

Malaysian Resources Corporation (MRC) has been assigned a preliminary rating of AA-IS to its medium-term MYR 5.0 billion Sukuk Murabahah by Malaysian Rating Corporation (MARC), with a Stable Outlook.  MARC states that the rating incorporates MRC’s established position in the property development market, specifically with regards to transit-oriented developments. The rating is also supported by MRC’s pre-let and pre-sell business model which helps lessen market risk, as well as MRC’s healthy financial position. The rating is mod...

Malaysian Rating Corporation (MARC) has affirmed its AA-IS rating on Southern Power Generation (SPG)’s MYR 4.0 billion Sukuk Wakalah programme, with a Stable Outlook. SPG is a 51:49 joint venture between Tenaga Nasional (TN) and SIPP Energy (SE) and was established to develop a 2x720 megawatt combined-cycle gas-fired power plant.  With 99.7% of the project completed as of the 25th of April 2020, commissioning activities have been affected by the government-imposed movement control order (MCO) in March 2020. Commissio...

Saudi Arabia based Islamic Development Bank (IsDB) has hired banks for a potential issuance of a USD-based 5-year Sukuk, according to an official document. Industry sources claimed that IsDB has mandated Citi, Credit Agricole, Emirates NBD Capital, (Persian) Gulf International Bank, HSBC, the Islamic Corporation for the Development of the Private Sector, Natixis, Societe Generale and Standard Chartered to arrange the issuance, subject to market conditions. The IsDB will be using the funds raised to finance sustainable projects, in...

The Islamic Research and Training Institute (IRTI) of the Islamic Development Bank (IsDB) Group has collaborated with the Samsung-backed blockchain technology company Blocko’s E24P (E24P) to develop a blockchain-based credit enhancement system. The patented Smart Credit Management System (SCMS) intends to minimise the risks connected with lending to companies and individuals through the use of innovative economic incentive frameworks and advanced hybrid blockchain technology implementations. The SCMS will be based on smart contracts on the A...

Egypt’s Minister of Trade and Industry, Nevine Gamea, has stated that Egypt will soon sign a free trade agreement (FTA) with the United Kingdom (UK) upon completion of the UK's exit from the European Union (Brexit). Gamea stated that both countries have engaged in negotiations to reach an FTA, which will be finalised soon. With the UK considering Egypt to be the main gateway to Africa, the Ministry of Trade and Industry was looking for additional advantages, particularly with regard to the export of crops, according to the Minister. According to the Gove...

Iqbal Khan: Islamic Finance: Past, Present, FutureMudaraba, Shariah