Accounting for 9.9% of Dubai (United Arab Emirates-UAE)’s total gross domestic product (GDP) in 2018, data from the Dubai Statistics Centre revealed that Dubai’s Islamic economy contributed AED 41.8 billion to the Emirate’s GDP in 2018, reflecting a 2.2% year-over-year (YoY) increase.  The largest share of Dubai’s Islamic economy market came from the retail and wholesale sector accounting for a 43% share, followed by 26% from the financial sector, 17% from the hospitality sector (including food and beverage), as well as a 14% contribution...

Knowledge Economy’s Role in Solidification of Finance Sector in UAE PLS

RAM Ratings (RAM) has provided an update to MEX I Capital (MC)’s AA3/Stable preliminary rating on MC’s proposed MYR 1.225 billion Sukuk which was assigned in November 2019. The principal cash flows to service this proposed Sukuk are solely obtained from Maju Expressway (ME), MC’s 96.8%-held subsidiary, the concessionaire for the Maju Express Highway (the Highway). Proceeds from the proposed Sukuk will be used to refinance MC’s existing MYR 1.35 billion Sukuk. According to RAM, the transaction structure is largely...

Malaysia's manufacturing revenue has fallen by 33% to MYR 75.8 billion in April 2020 relative to MYR 113.1 billion recorded in April 2019 as a result of the suspension of business activities due to the COVID-19 induced Movement Control Order (MCO) imposed by the Government of Malaysia. On a month-on-month (MoM) basis, manufacturing revenue declined by MYR 34.3 billion or 31.2%, while in seasonally adjusted terms, it recorded a fall of 29.5%, according to the Department of Statistics Malaysia (DSM). According to Malaysia's Chief Statistician, Datuk Seri Dr Mohd Uzir M...

The United Arab Emirates’(UAE) Supreme Council Member and Ruler of Ajman, His Highness Sheikh Humaid bin Rashid Al Nuaimi, has issued an Emiri Decree to support Ajman's economic sector by providing additional economic incentives and introducing new government initiatives to mitigate the effects of the COVID-19 pandemic. According to the Decree, Ajman Chamber of Commerce and Industry will exempt all economic establishments in Ajman from the membership renewal delays related penalties, and exempt hotels and tourism establishments from membership renewal fees. In addition,...

The practices followed in Shariah compliant banking could help to achieve the United Nations Sustainable Development Goals (UNSDGs) at a rapid rate, according to Omar Shaikh, Founder of the Islamic Finance Council in the United Kingdom (UKIFC). The UNSDGs is part of the 2030 Agenda for Sustainable Development and include 17 goals consisting of practices such as ending poverty and hunger, good health and education, clean water, energy and sanitation, for example. According to Shaikh, Islamic banking is an ethical form of banking and it...

Digital banking services have been evolving in Malaysia for the last two decades and progress in the industry is about to take another leap. For the first time in Malaysia, Bank Negara Malaysia (BNM) has plans to issue five digital banking licences in line with its stated objective of leveraging digital financial services particularly to drive financial inclusion and serve the 8% of the population that remains unbanked and underserved. According to BNM, digital banking solutions can help in bringing this ratio down to 5%.  Calling for potential di...

The Organization for Economic Cooperation and Development (OECD) has projected that Indonesia could experience a 3.9% economic decline in 2020 (higher than initially estimated) if the country is hit by a second wave of COVID-19 infections. According to the OECD, the Indonesian economy would still contract by 2.8% under a baseline scenario, even if the Government of Indonesia manages to avoid a second wave of COVID-19 infections. In a report published on the 10th of June 2020, the OECD stated that Indonesia faces a severe risk of a resurgence of COVID-19 in the second half of 2020 w...

By definition, Shariah fintech includes digital payments, or peer-to-peer (P2P) platforms that abide by Shariah principles. Shariah fintech differs from conventional fintech by following a profit-sharing model instead of charging interest, investing profits in only halal investments excluding sectors such as alcohol, pork and gambling, and by being encouraged to choose investment projects that aim to help low-income and underserved groups within the society.   Statistics also promote the case for g...

The Securities and Exchange Commission of Pakistan (SECP) has proposed the establishment of an Oversight Committee (OC) for the purpose of reviewing Shariah-compliance of listed securities and corporates.  Draft amendments to existing Shariah Governance Regulations, 2018 through SRO 510(I)/2020, were issued by the SECP on the 3rd of June 2020. An amendment to form the OC has been proposed in regulation 12. Criteria within the draft amendment include the creation of the OC to establish and oversee Shariah-screening criteria. Proposed me...