The Islamic Development Bank (IsDB) and Turk Eximbank have signed a syndicated Murabahah interest-free USD 100 million agreement to help provide funds to small and medium-sized enterprises (SMEs) and middle capitalization companies (MidCaps) in Turkey.According to the IsDB, the Murabahah deal has a tenure of ten years, which will help support the sustainable development of Turkey.The IsDB noted that the Murabahah facility is based on the success of the previous USD 270 million financing support which the IsDB had extended to firms in Turkey through Turk Eximbank. 57 firms, including 18 SME...

The Asian Development Bank (ADB) pledged USD 305 million to Pakistan to support its efforts in its fight against the COVID-19 pandemic.Announced at a concept clearance meeting at Pakistan’s Ministry of Finance on the 5th of May 2020, USD 200 million of the total amount pledged would be provided to safeguard the poor and low-income segments of society, whilst the remaining USD 105 million would be used to cover health emergencies.According to Jehanzeb Khan, Deputy Chairman of Pakistan’s Planning Commission, the Government of Pakistan is hoping to use the funds to provide relief...

The Finance Ministry in Malaysia has stated that the banking industry will not impose accrued charges on hire-purchase financing, inclusive of both conventional and Shariah, throughout the tenure of these agreements. This implies no additional charges to borrowers from compounding and interest during the six-month moratorium from April to September 2020. Finance Minister, Tengku Datuk Seri Zafrul Tengku Abdul Aziz, said that the Government of Malaysia hopes that this decision, which was reached in discussion with the banking industry, will help ease the burden of people during this chal...

The Central Bank of Bahrain (CBB) announced that the monthly issuance of Islamic government short-term Sukuk (Sukuk Al-Ijara) for May 2020 has been oversubscribed.In a press release on its website, CBB stated that the BHD 26 million Sukuk issuance attracted subscriptions worth BHD 101.986 million, resulting in an oversubscription of 392%.CBB stated that the Sukuk will be for a period of 182 days and is expected to mature on the 5th of November 2020. This Sukuk will carry a profit rate of 2.70% equivalent to the profit rate offered on the previous issue on the 9th of April 2020.In the pre...

The United Arab Emirates (UAE) has developed a revolutionary initiative to form a unified global legislative framework for Islamic finance. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of Finance, and Governor of the Islamic Development Bank (IsDB) of the UAE, announced the launch of this initiative, according to a media release from the Government of Dubai on 6th of May 2020.Launched by the UAE Ministry of Finance, in strategic partnership with the IsDB and the Dubai Islamic Economy Development Centre (DIEDC), the framework will allow the Islamic economy to broaden i...

Malaysia-based property development company, Country View (CV) has secured a MYR 31 million Murabahah Tawarruq Revolving Credit-I (RC-i) facility from AmBank Islamic. According to CV, MYR 22 million of this revolving Murabahah facility will be absorbed by its fully-owned subsidiary, Country View Resources (CVR) for working capital requirements.  Meanwhile, there will also be a bank guarantee of MYR 9 million according to a stock exchange filing by CV. CV added that the financing facility obtained from Ambank Islamic will be secured against an Open All Monies Facilitie...

Indonesia raised IDR 5.55 trillion (USD 369.26 million) from a bi-weekly Sukuk auction on the 5th of May 2020, falling behind its IDR 8 trillion indicative target, according to Indonesia's Ministry of Finance. The weighted average return for the project-based Sukuk was higher than the equivalent Sukuk offered at the previous auction. The Sukuk auction attracted IDR 18.11 trillion in bids, which was slightly lower than IDR 18.84 trillion bids received during the previous auction. However, Indonesia-based securities company, MNC Sekuritas, had pre...

A total of 59 chambers of commerce and industry groups have vowed to support the decision made by the Government of Malaysia to enable majority of the economic sector and business activities to restart operations on the 4th of May 2002, under the Conditional Movement Control Order (CMCO). In a joint statement released today, the parties requested all stated governments to jointly enforce the decision of the Government, while claiming that it is vital for market activities to be revived simultaneously throughout the country given the close supply chain connections&nbs...

The Federal Territories Islamic Council (MAIWP) has paid out MYR 13 million from its zakat fund to provide financial assistance to 26,400 people during the month of Ramadan. According to MAIWP, it has provided MYR 500 each to 25,700 while 700 children in orphanages have received MYR 200 each. According to the Minister of Religious Affairs of Malaysia, Datuk Seri Dr Zulkifli Mohamad Al-Bakri, the Zakat distribution has been given early this year to help the recipients adjust to the new normal caused by the on-going COVID-19 pandemic. MAIWP previously said that it would disburse Zakat pay...

Malaysia’s Minister of Economic Affairs, Datuk Seri Mustapa Mohamed, has stated that the country's 2020 Gross Domestic Product (GDP) may fall to 2016 GDP levels if the Movement Control Order (MCO) is extended and the Government does not take measures to phase it out. In 2016, Malaysia's GDP stood at MYR 1.23 trillion while in 2019, the GDP grew 4.3% YoY to reach MYR 1.48 trillion. The Malaysian Institute of Economic Research (MIER) has projected 2.4 million job losses in Malaysia if the MCO is extended, indicating that several businesses are halt...