His Majesty Sultan Haitham bin Tariq, the Sultan of Oman, has given royal orders to establish a committee from the Supreme Committee to address the impacts of the COVID-19 pandemic, according to a statement from the Sultan’s private office. The statement issued on the 14th of June 2020, noted that the committee will be headed by the Minister of Interior and the Chairman of the Supreme Committee. The Committee will address the economic impacts of the COVID-19 pandemic as well as the fall in oil prices, by devising an appropriate framework that will ensure a speedy re...

Following 6.6% growth in 2019, driven by a dynamic Sukuk market and good performance across the Gulf Cooperation Council (GCC) nations, Standard and Poor’s Global Ratings (S&P Global) forecasts stable growth in assets, or at best, low-single digit growth over 2020-2021. The subdued estimates come on the back of the significant slowdowns witnessed across key Islamic finance economies in 2020 as a result of social distancing requirements and restrictions in relation to the on-going COVID-19 pandemic.  S&P Global estimates the volume of issuances in the...

Datuk Seri Mustapa Mohamed, Minister in the Prime Minister’s Department (Economic Affairs), stated that the social distancing restrictions imposed due to COVID-19 have changed the way the country uses digital technology.  At a forum titled Accelerating Digital ID to Enable Digital Economy in the New Norm hosted by the NEC Corporation on the 15th of June 2020, Mustapa spoke about how Malaysians have been increasing their skills in the use of technology for day-to-day operations, guided by the work-from-home concept, which ...

Najran Cement Company (NCC) has fully redeemed SAR 355 million of Sukuk outstanding on the 11th of June 2020.  According to local media reports, SAR 355 million was outstanding from the SAR 400 million Sukuk issued on the 14th of June 2015. According to the Islamic Markets Sukuk Monitor, NCC issued SAR 400 million Sukuk, for a period of 5 years, and matured on the 11th of June 2020. On the 12th of December 2019, NCC repurchased SAR 45 million of this SAR 400 million Sukuk, financed from the company’s internal resou...

Malaysian Rating Corp (MARC) has affirmed its short-term rating for Bina Darulaman (BD)’s MYR 100 million Islamic Commercial Papers (ICP) programme at MARC-2IS. The rating accounts for the fact that BD, a Kedah state-owned entity, will benefit from state support in locking in contracts for its road construction division, as well as facilitating land acquisition for BD’s property division. BD’s modest business and financial profile also constrained its rating, and this was primarily due to the challenges faced by BD’s property developmen...

Tanjung Bin Energy Issuer’s (TBEI) MYR 3.29 billion Sukuk Murabahah has had its AA3 rating reaffirmed by RAM Ratings (RAM), with a Stable Outlook. TBEI is the turnkey contractor for Tanjung Bin Energy (TBE)’s ultra-supercritical 1,000 MW coal-fired power plant in Johor. The reaffirmation is based on better-than-anticipated operating performance from TBE, as well as strong cash flow-generating capability which allows TBE to service its financial debts under the Sukuk.  RAM views TBEI and TBE in aggregate (the Group), underpinning the...

The President of Turkey, Recep Tayyip Erdogan, has stated that Islamic finance and economics tools would offer a sustainable, competitive and systemic solution to the present crisis-ridden financial system, whilst predicting that Istanbul's newly built financial center will also make Turkey a leader in the sector. The Turkish President made these statements during his address at the 12th International Conference on Islamic Economics and Finance. Commenting on the current global financing system, Erdogan noted the need for restructuring, adding that the curr...

Malaysian Resources Corporation Berhad (MRCB), a property development, facilities management and construction company based in Malaysia, is raising up to MYR 5 billion through a Sukuk Murabahah program to raise funding to meet future funding requirements as well as to fund business growth. According to MRCB, proceeds from the Sukuk issuance will be utilized by MRCB and its subsidiaries towards general working capital, capital expenditure and other general corporate purposes, which shall be Shariah-compliant.  The Sukuk Murabahah will be for a pe...

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the United Nations High Commissioner for Refugees (UNHCR) have signed a three-year memorandum of understanding (MoU) in an attempt to strengthen collaboration and governance in the area of Islamic social finance. With this initiative, both parties aim to further develop Islamic finance tools for the benefit of vulnerable refugees and internally displaced persons. Under this MoU, both parties plan to share areas of expertise, develop Zakat governance standards for global humanitarian organi...

Malaysian Industrial Development Finance (MIDF) Research has stated that the global Industrial Production Index (IPI) is projected to improve as markets begin to open up, inevitably leading to growth in Malaysia's exports. MIDF Research added that IPI performances across major and emerging economies were worse in April 2020 due to the lockdowns to contain the spread of COVID-19 pandemic. According to MIDF Research, Malaysia’s IPI declined by 32% year-over-year (YoY) in April 2020 with all sub-indexes recording double digit declines. Amongst the sub-in...