CBB International Sukuk Programme Company (CISP) has issued a USD 1 billion sovereign Sukuk on the 14th of May 2020. The Sukuk carries a profit rate of 6.25%, payable bi-annually, with the first profit payment expected on the 14th of November 2020. National Bank of Bahrain, JP Morgan, and Standard Chartered Bank, were amongst the arrangers of this deal. The purpose of this financing is to assist the Government of Bahrain in the funding of its fiscal deficit, with the Government anticipating a 4% fiscal deficit for 2020. According to the Islam...

Professor Shibli Rubayat Ul Islam has been appointed by the Government of Bangladesh as the new Chairman of the Bangladesh Securities and Exchange Commission (BSEC). Effective the 17th of May 2020, Professor Shibli will hold this position for the next four years.  According to market analysts, the BSEC has been facing a host of challenges including a lack of sound companies listed on the Exchange, as well as weakening investor confidence. The latter has been exacerbated by several factors including money market volatility, poor tax revenue collect...

The Central Bank of Nigeria (CBN) adopted the Islamic Financial Services Board (IFSB) Standards 4, 15 and 16 on disclosure requirements, capital adequacy computation, and the supervisory review process for non-interest banking in the country, according to Alhaji Ahmed Abdullahi, Director of the Banking Supervision Department of the CBN.    During a workshop with stakeholders from the non-interest banking sector as well as other financial institutions, Ahmed Abdullahi noted that the adoption of IFSB standards would bolster...

Bank Indonesia (BI) has reported that foreign debt growth in Indonesia decelerated in the first quarter of 2020 (Q1 2020) as overseas investors sold off Indonesian assets due to the uncertainties caused by the COVID-19 pandemic. The country's external debt, including government and private sector borrowing, was recorded at USD 389.3 billion, a 0.5% year-over-year (YoY) increase from 2019. The Government of Indonesia’s foreign debt declined 3.6% YoY in Q1 2020 to USD 181 billion as overseas investors divested USD 9.75 billion in Ind...

Nigeria’s Federal Ministry of Finance, Budget and National Planning (MoFBaNP) has forwarded a request by the Ebonyi State Government (ESG) to the Federal Executive Council (FEC) to borrow USD 80 million from the Islamic Development Bank (IsDB). Zainab Ahmed, Nigeria’s Minister of Finance, Budget and National Planning discussed this at a media briefing last week and stated that the MoFBaNP presented the request to the FEC on behalf of the Ebonyi state for the construction of the Abakaliki&nbs...

The Government of Indonesia is preparing a COVID-19 bailout package worth USD 8.6 billion mainly in terms of cash compensation and working capital investments for twelve state-owned companies, according to documents issued by the Ministry of Finance.  According to a spokesperson from Indonesia’s Ministry of Finance, the aforesaid documents have been used in early-stage discussions with lawmakers and are yet to receive the approval of Joko Widodo, the President of Indonesia. This bailout funding is expected...

The outbreak of the COVID-19 pandemic is expected to destabilize the growth of the conventional insurance as well as the Takaful industry in 2020, before any recovery can be expected in 2021, according to RAM Ratings. Despite challenges with respect to short-term growth, RAM Ratings anticipates the life and family Takaful businesses to be sustained in the long run by Malaysia's favourable demographics and stable demand for medical coverage, which is further enhanced by a significant increase in medical costs. Driven by the challen...

Competition and Profitability of Banks: Empirical evidence from the Middle East & North African (MENA) CountriesCredit Risk

The United Arab Emirates (UAE) has announced a two-phase program to reopen and stabilize the country's economy in the aftermath of the COVID-19 pandemic, UAE's Minister of Economy, Sultan bin Saeed Al Mansouri, stated during a meeting with Government representatives on the 12th of May 2020. According to the Minister, the first phase of the plan which focuses on the short-term, consists of gradual resumption of businesses, backed by stimulus plans totalling AED 282.5 billion till date. Al Mansouri added that the second phase aims to speed up recovery and advance growth, wi...

The Advisor to the Prime Minister of Pakistan on Finance and Revenue, Dr. Abdul Hafeez Shaikh, has stated that Pakistan’s economy would transform to witness a 2% growth in the gross domestic product (GDP) for next fiscal period 2020/21, despite projections of a negative 1.5% growth rate for the current fiscal year, due to the effects of the COVID-19 pandemic. Speaking at an event organized by the Institute of Chartered Accountants of Pakistan, Dr. Shaikh added that previous projections of Pakistan’s&n...