Oman’s Bank Nizwa has signed an agreement with the Ministry of Labour to provide a comprehensive set of Shariah-compliant banking services specially designed for beneficiaries of the Ministry’s Sahim Programme (Sahim), supporting its efforts to attract talented youth and assist them in joining the labour market. Why it Matters? The Ministry of Labour launched Sahim to strategically regulate the labour market and upgrade the ratio of the national workforce in both public and private sectors, as well as support the local economy and improve living standards. The program...

Pakistan’s Central Directorate of National Savings (CDNS) has announced its intentions to begin offering Islamic finance facilities and aims to start the implementation of its procedural work as of May 2022. Why it Matters? Islamic Shariah business currently makes up 20% of the private and public banking sector in Pakistan. Through this initiative, the CDNS will provide Islamic investment opportunities to its consumers and accordingly, Prize Bonds and Savings Certificates will be issued for investment in accordance with Shariah principles. Details  CDNS...

Global Sukuk offerings have witnessed the busiest start of a year on record with the sales of new sukuk set to mature in at least a year nearing USD 24 billion in 2022. The high price of oil was cited as a driver of the vibrant issuance as activity was led by Saudi Arabia and Turkey, according to Bloomberg.Why it Matters? Investors in oil-producing countries, which represent some of Islamic finance’s biggest markets, saw cash influxes on the back of a 40% increase in oil prices in 2022. Shariah-compliant debt saw better performance than global bonds with investment-gra...

Investor coalition Asia Transition Platform evaluated Asian banks on their climate governance, risk management and policiesThe report found significant gaps compared to TCFD recommendations and national decarbonisation commitments Report conclusions are in harmony with RFI Foundation research about the importance of financed emissions risks within Islamic markets, some of which overlap An analysis of 32 large Asian banks conducted for investor platform Asia Transition Platform has found significant gaps in their disclosures of climate-related risks. These risks were fou...

The Securities Commission Malaysia (SC) has introduced a Shariah Screening Assessment Toolkit (Toolkit) for the unlisted micro, small and medium enterprises (MSMEs), according to the SC Annual Report 2021.  Why it Matters? SC continued to improve the value offering of Islamic Capital Markets (ICM) by expanding access to shariah-compliant funding, boosting Islamic social finance, and supporting Islamic fintech growth. The Toolkit was introduced to facilitate a conducive funding ecosystem within ICM and advance the development of market-based financing avenues to support the...

The Emirate of Sharjah, in the United Arab Emirates (UAE), has started accepting orders for 8-year US dollar-denominated Islamic bonds (sukuk). According to a bank document, Sharjah's initial pricing guidance for the sukuk was between 155 and 160 basis points (bps) over seven-year US Treasury.Why it Matters?The sukuk is anticipated to be launch later on Monday, with a benchmark size of at least $500 million.Details The global coordinator is Standard Chartered STAN.L.According to the document, the joint lead managers and bookrunners include Abu Dhabi Commercial Bank, Abu Dhabi Islami...

The European Central Bank’s supervisory assessment of metrics and disclosures on climate risk at European banks found significant gaps throughout the banking systemBanks have been developing their capacity to analyse climate risk, but have lagged regulatory expectations based on the pace at which climate-related risks are growingOther trade and monetary policy-related issues will help to quickly spread the risks seen in European banks to other parts of the world The European Union has been among the most active regions in creating disclosure regulations relating to Environmental...

The Sultanate of Oman’s (Oman) Islamic banking sector’s positive trajectory is expected to continue in the short-to-medium term, despite structural challenges, according to Fitch Ratings (Fitch).Why it Matters?Oman’s Islamic banking sector remains in its infancy and accordingly faces a number of persisting key challenges including gaps in the distribution channels, limited product offerings, a regulatory framework that is still developing, a small capital base, limited options for Sukuk investment and insufficient Islamic liquidity management products. The projected growt...

The Malaysian legislature was called on for the legalisation of transfer on bitcoin and other cryptocurrencies by Zahidi Zainul Abidin, Malaysia’s deputy minister of The Ministry of Communications and Multimedia (KKMM), in efforts to prompt youth participation in cryptocurrencies. Why it Matters? The legalisation of cryptocurrencies transfers has the potential to expand the participation of young people in the assets, according to Zahidi. The regulatory approval is under the responsibility of the Malaysian Central Bank, Bank Negara Malaysia and the Securities Commissio...

As we live through challenging and uncertain times, the importance of values is reiterated and reinforced, particularly in finance. There is a need to spread goodness and economic progress, share resources, and build an equitable world through faith and courage in convictions for a life of grace and dignity.Why it Matters:Mr. Iqbal Khan, Chief Executive Officer, Fajr Capital, spoke during a session in the first day of the Global Connect Forum hosted by Maybank Islamic Berhad, the Islamic banking arm of Maybank Group, and IslamicMarkets.com, under the theme ‘Driving Sustainable I...