Statistics from the National Economic Register (NER) recorded the total number of trade licences issued across the United Arab Emirates (UAE) in May 2020 at 648,684, indicating an increase of 1,035 as against the previous month. To date, the largest percentage increase in trade licences issued in 2020 have been in the e-commerce sector.  According to the UAE’s official news agency, WAM, this increase points to the continuity of economic activity across the country, despite the global slow-down. Further, the trend indicates a gradual return of investor confidenc...

Research carried out by S&P Global Ratings (S&P) indicate that banks across the Gulf Cooperation Council (GCC) may find the current situation suitable to raise funding. According to Anita Yadav, Partner and Advisory Board Member at Aspire Capital in Dubai, United Arab Emirates commented that credit quality of banks are expected to come under pressure over the next 12 to 18 months and credit spreads could widen, hence banks would prefer to take advantage of prevailing low benchmark yields. Yadav added that banks opt to issue debt when it is cheapest for them; hence...

Bank Indonesia (BI) has injected an additional IDR 167.6 trillion (USD 11.33 billion) to strengthen the currency and financial system, forecasting the IDR to stabilize at pre-pandemic levels.  According to the BI Governor, Perry Warjiyo, since the beginning of 2020, BI had injected a total of IDR 583.5 trillion, to conduct monetary operations to stabilize the IDR. The IDR weakened in March 2020 to its lowest since 1998 amidst significant capital outflows, as foreign investors withdrew their investments in Indonesian assets. However, BI stat...

As business activity resumes in Malaysia under the conditional movement control order (CMCO), Shariah-compliant private equity firm, COPE Private Equity (COPE), has identified a market opportunity to buy into quality deals.  According to COPE Founder and Managing Director, Azam Azman, told DealStreet Asia that the impacts of COVID-19 has a silver lining in the form of access to quality deals which otherwise may not have become available to investors. Azman added that apart from the potential access to these investments, reasonable valuations, together with operational improv...

S&P Global Ratings (S&P) has identified Zakat, social Sukuk, Waqf and Qard Hassan as key instruments that can help Islamic countries overcome the effects of the COVID-19 pandemic. S&P noted that the pandemic has significantly slowed Islamic countries due to their governments' measures to curb the spread of the pandemic, whilst unemployment levels have increased due to the fall in revenues experienced by many companies in these countries. Highlighting the global emphasis on a more sustainable, stakeholder-focused, and socially responsible financial system for t...

The Economic Coordination Committee (ECC) of Pakistan’s Cabinet has approved the criteria for disbursement of PKR 200 billion raised through a Sukuk issuance, within the country’s Power sector. It was decided by the ECC that the energy purchase price including taxes, would be paid to ensure optimum generation capacity during the upcoming three summer months (June 2020 through August 2020). Further, capacity payments would be distributed to meet the debt servicing and taxation requirements for the period from June 2020&nb...

Bahrain Bourse (BHB) has launched a Murabahah service for banks and corporates. This service is part of BHB's on-going efforts to develop Bahrain's capital market, and is in line with BHB's strategic objective of ‘Cultivating Capital Raising & Investment Opportunities’. BHB’s Murabahah service intends to meet the growing needs of interbank, corporate and retail customers, supporting the efforts of BHB to expand as well as diversify its services, in order to cater to different customer segments through a new and unique service line...

The Government of Malaysia has invited recommendations and proposals from all public stakeholders, civil society groups, non-governmental organizations as well as individuals, on the drafting of the Temporary Measures Bill (Bill) to alleviate the impacts of the COVID-19 pandemic.  According to Malaysia’s Minister in the Prime Minister’s Department (Parliament and Law), Datuk Takiyuddin Hassan, the drafting of the bill is an indication of the Government's dedication towards minimizing the economic, human and industrial impact of the COVID-19 pand...

A virtual discussion held by industry experts on the 28th of May 2020 discussed the need for Indonesia to embed its sustainability objectives into its COVID-19 recovery efforts.  Indonesia Foreign Ministry’s Director for the Development, Economy and Environment, Agustaviano Sofjan, stated that the global pandemic had set countries behind their targets to achieve the 17 Sustainable Development Goals (SDGs) as laid out by the United Nations by 2030. This was largely due to the disruption caused in economies in relation to supply, demand and people&rsquo...

The Board of Executive Directors of the World Bank (WB) announced their decision to provide a USD 250 million loan to assist Indonesia in its COVID-19 relief efforts. The WB stated that the funds would be used to enhance intensive care capacity, increase the supply of personal protective equipment, as well as improve the laboratory network and surveillance systems, in order to better prepare Indonesia against future outbreaks of infectious diseases.  According to the WB, the primary beneficiaries of the funding would be vulnerable and high-ri...