Malaysia is starting its post-COVID-19 phase by moving onto the recovery movement control order (MCO) on the 10th of June 2020. Dr Firas Raad, World Bank Country Manager for Malaysia, stated that the country is likely to start seeing an upturn in its economic cycle as early as the end of 2020, with growth expected in 2021. Dr Raad stressed that Malaysia should primarily continue its focus on its effective public health measures in place to ensure that the virus does not return and trigger a second wave. Added to this, Dr Raad noted that pro-growth poli...

Moody’s Investors Service (Moody’s) has stated that the Gulf Cooperation Council (GCC) nations are expected to remain resilient in the face of the dual-shocks imposed by the falling oil prices and COVID-19, buoyed by their on-going relationships with their affluent client base, as well as their solid track record.  Whilst assets under management have fallen since mid-February 2020, primarily a reflection of lower market valuations, GCC asset managers have benefitted from positive fund inflows since the start of the pandemic. Moody’s added that larger asset ma...

Vakif Katilim Bankasi (VKB)’s Long-Term Foreign Currency Issuer Default Rating (LTFC IDR) has been downgraded to B from B+ by Fitch Ratings (Fitch), with a Negative Outlook. Both the downgrade of the LTFC IDR as well as the Negative Outlook reflects Turkey’s weak foreign currency reserves position, and hence the reduced ability to support VKB in case financial assistance is required. This has driven down VKB’s Support Rating Floor to B from B+, which means that the LTFC IDR is now based on the Viability Rating (VR).In addition, the Negative Outlook also reflects the signifi...

In an announcement on the 7th of June 2020, Dar Al Takaful (DAT) in the United Arab Emirates (UAE) announced its entry into a legally binding share purchase agreement with domestic competitor Noor Takaful (NT), for the complete purchase of its Noor Takaful General and Noor Takaful Family units.According to DAT’s statement, the acquisition, which is expected to be finalised by the end of June 2020 (subject to customary closing conditions), will take place at a cash consideration of AED 215 million. According to a statement filed on the Dubai Financial Market website, DAT confirmed that...

Fitch Ratings (Fitch) has given its affirmation of Ajman Bank (AB)’s Long-Term Issuer Default Rating (IDR) at BBB+, whilst its Viability Rating has been affirmed at b+, with a Stable Outlook.Key ratings drivers supporting the affirmation of AB’s long-term IDR include the Government of the UAE’s sound ability to support the banking system if needed, with this financing being sourced through sovereign wealth funds, as well as recurring revenue from hydrocarbon production. According to Fitch, the willingness of the authorities to provide support to the banking sector is reinfo...

Speaking at a webinar conducted by the Maulana Malik Ibrahim State Islamic University, Ma’ruf Amin,  Vice President (VP) of Indonesia, stated that the rigorous monitoring of health and hygiene aspects related to the COVID-19 and  its enforcement as lockdowns ease,  is soon becoming the ‘new normal’ in the country.In this regard, the VP stated that micro, small, and medium enterprises (MSMEs) and other halal businesses have immense opportunities to break into this market and capitalise on the opportunities presented, particularly in the areas of food and healt...

On the 5th of June 2020, Malaysia’s Prime Minister, Tan Sri Muhyiddin Yassin, announced the up-coming issuance of MYR 500 million Sukuk Prihatin set for the third quarter of 2020 (Q3 2020). Themed ‘from the people to the people’, the Sukuk issuance aims to support the Government of Malaysia’s post COVID-19 recovery efforts.According to the Prime Minister, the Sukuk’s proceeds will go towards specific development programmes including the broadband connectivity of schools particularly in rural areas, funding micro enterprises focused on the involvement of female e...

The Ruler of Dubai and the Vice President of the United Arab Emirates (UAE), His Highness Sheikh Mohammed bin Rashid Al Maktoum has passed the Dubai International Financial Centre (DIFC) Data Protection Law (DPL) No. 05 of 2020, enabling the DIFC to strengthen its leadership in enhancing data protection practices. The new law will replace the previous DPL DIFC Law No. 01 of 2007 with effect from the 1st of July 2020. However, all applicable businesses will have a three months grace period to prepare and abide by with the new law. Meanwhile the Board of Directors of the DIFC have also in...

The Ruler of Oman, Sultan Haitham bin Tariq Al-Said has issued a decree allowing the formation of the Oman Investment Authority (OIA) to own and manage majority of Oman’s sovereign wealth fund and finance ministry assets, excluding the Petroleum Development Oman company and the Government’s ownership in international institutions.According to the decree, the OIA will replace Oman’s two sovereign wealth funds comprising the State General Reserve Fund with assets worth USD 14 billion and the Oman Investment Fund with USD 3.4 billion in assets.The Board members of the OIA wi...

Sukuk Default: Could Corporate Governance & Sustainability be the Defenders?PLS, Sukuk, Credit Risk