In line with the initiative of the OIC Islamic Solidarity Fund (ISF), intended to support the least developed member countries in their actions against the COVID-19 pandemic, particularly in the healthcare sector, the first part of the ISF’s urgent financial grant was presented to Djibouti, Bangladesh and Afghanistan on the 17th of May 2020. The aim of the ISF financial assistance is to enhance the COVID-19 response capability of the Health Ministries of the OIC's least developed member nations and provide them with the required medical safety and prevention equipment, i...

The International Islamic Trade and Finance Corporation (ITFC) has provided USD 15 million as an emergency funding facility to the State Trading Organization (STO) of Maldives in an attempt to ensure the long-term progression of member states in the health, social and economic sectors.  The emergency funding facility is expected to aid the STO in the purchase of vital products such as basic food, medications and crucial supplies used by frontline workers in the fight against the COVID-19 pandemic, including safety goggles, immediate life-savi...

A report by S&P Global Ratings has highlighted the possibility of banks in the Gulf Cooperation Council region facing lower asset quality, with profitability taking a hit, as the region’s banking sector battles against the impacts of COVID-19, as well as lower oil prices.  Global Head of Islamic Finance at S&P Global Ratings (S&P), Mohamed Damak, states that banks within the Gulf Cooperation Council (GCC) region are well capitalized and can absorb up to USD 36 billion in extra provisions before their capital bases start to wear down....

Indonesia’s Minister of Finance, Sri Mulyani Indrawati, stated on the 18th of May 2020 that the Government of Indonesia has prepared an amount totalling to IDR 641.12 trillion as funding for the Economic Recovery Program (ERP). According to Sri Mulyani Indrawati, the Government will allocate an amount of IDR 172.1 trillion from this fund to support the consumption budget and IDR 34.15 trillion as an interest subsidy. The Government will also provide tax incentives worth IDR 123.01 trillion, allocate IDR 26 trillion into the stimulus reserves...

According to a regulation published by the Ministry of Finance of Indonesia, Internet companies will be required to pay a 10% Value Added Tax (VAT) on the sales of digital products and services, effective from the 1st of July 2020. This is expected to include streaming services, applications and digital games, such as Netflix and Spotify.  Meanwhile, the Directorate General of Taxes in Indonesia stated that the tax on digital products sold by non-resident Internet companies is an effort on the part of the Government of Indonesia to create a fair p...

A press release issued from the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance (Ministry of Finance) in Indonesia on the 18th of May 2020 indicated that the Government of Indonesia auctioned off its latest state Sukuk (SBSN) series. A total of six series of SBSN were issued, comprising one Islamic Treasury letter (SPN-S) and five project-based Sukuk (PBS) with maturities ranging from 2020 to 2043. A total nominal value of IDR 9.5 trillion was received at this auction, higher than the IDR...

His Majesty, King Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah has said that the Government of Malaysia should investigate different avenues to assist companies and industries that are impacted by the COVID-19 pandemic.  His Majesty expressed anticipation that the measures taken by the Economic Action Council of Malaysia, including the MYR 260 billion Prihatin Rakyat Economic Stimulus Package for the well-being of the general public and the economy of the country, could reap benefits soon. In a royal addre...

Dubai Financial Market (DFM) and Dubai Media Office (DMO) have denied media reports of discussions between the United Arab Emirates (UAE) states of Dubai and Abu Dhabi regarding a merger of some of its assets in a bid to curb the economic impact of the COVID-19 pandemic, through the help of state fund Mubadala. DFM confirmed its adherence to the disclosure and transparency regulations, adding that it currently had no information that may require any disclosure. DFM ensured investors that all concerns that could impact its share trading movement wo...

Factors Influencing Islamic Banking Adoption: Evidence From PakistanIslam, Islamic banking, Shariah, Participation

BankIslami Pakistan’s Ehad Sukuk Certificates (Sukuk) worth PKR 2 billion began its trading on the Pakistan Stock Exchange (PSX) on the 15th of May 2020, with the expectation of generating significant interest from investors, traders and the general public, according to a statement issued by the PSX. The BankIslami Sukuk will be fully paid-up, rated, perpetual, unsecured, subordinated, non-cumulative and contingent convertible Mudarabah Sukuk, which will qualify as additional tier-1 (ADT-1) capital, becoming...