The Pakistan Government-owned, Power Holding Ltd (PHL), revealed last week the launch of its 10-year Sharia-compliant Sukuk with a value up to PKR 200 billion via the Pakistan Stock Exchange (PSX).  This marks the first instance that ordinary investors have been allowed to purchase debt of a state-owned entity through the PSX. Apart from the banking sector, other eligible investors such as mutual funds, voluntary pension schemes and private funds which are managed by Non-Banking Financial Companies, insurance companies, stockbrokers...

The Saudi Arabian Monetary Authority (SAMA) has launched licenses for activities that support the finance sector in the country.  This new move comes on the back of SAMA's commitment towards supporting the finance sector by facilitating activities to improve the sector and support companies as well as facilitate their operations. SAMA recently announced the first licence issuance for National Finance Services Company, a closed joint-stock company with a capital of SAR 80 million in Saudi Arabia, which is set to provide activities supporting the country's Finan...

In its 2019 Annual Report, the Securities Commission Malaysia (SCM) reported that the country had issued MYR 1.28 billion worth of Sustainable and Responsible Investment (SRI) Sukuk in 2019, bringing the total SRI Sukuk issued since 2015 to MYR 4.77 billion.  According to the SCM, 2019 Malaysia’s first hydropower green Sukuk was issued in February 2019 by Pasukhas Green Assets, while the county also saw its first ASEAN SRI Sukuk being issued in October 2019 by Edra Solar.  The SCM stated that these progressive developments were testim...

Indonesia would provide wider tax cuts to cover 11 industry sectors to help businesses cope with the economic effects of the COVID-19 pandemic, similar to the tax incentives granted to manufacturing industries, said Sri Mulyani Indrawati, the Minister of Finance of Indonesia. She added that the sectors will be food, trade, electricity, oil and gas, mining and coal, forestry, tourism and the creative economy, telecommunications, logistics as well as transportation and construction. Indrawati also noted that the benefits would be in the form...

Analysing Product Utilization by Islamic Retail Banks: The Case of Bahrain Islamic Bank and Kuwait Finance House-BahrainFatwa, Islamic banking, Mal, Murabaha, Musharakah, Shariah, Tawarruq, Waqf, Rub, Musharakah Mutanaqisah

Malaysia’s Tropicana Corp (TC) has lodged a proposal with the Securities Commission to issue MYR 1.5 billion Medium Term Notes via a Sukuk Wakalah programme. TC aims to use the funds raised to repay borrowings to unencumber secured properties, for investments, capital expenditure, as well as to meet working capital requirements. The Sukuk Wakalah has been assigned a preliminary rating of A+ by Malaysian Rating Corp (MARC), with a Stable Outlook. MARC noted that this rating comes on the back of TC’s stable and recurring income from its investment property portfolio, which sup...

Indonesia based digital payment platform LinkAja has officially launched a Shariah-compliant e-wallet service, allowing the platform to facilitate various types of payments that are in accordance with Islamic rules. LinkAja is the first mobile wallet to get a license from the National Shariah Council and the platform is connected with over 1,000 mosques, 242 Islamic charitable institutions, various Islamic boarding schools, as well as online and offline merchants. According to Haryati Lawidjaja, the acting Chief Executive Officer of LinkAja, the platform is expected to focus...

Cagamas Berhad (Cagamas), the National Mortgage Corporation of Malaysia has issued MYR 300 million worth Islamic commercial papers as a part of an overall MYR 1 billion combined issuance. Apart from the Sukuk, the issuance also included a MYR 500 million conventional medium term note (CMTN) as well as a MYR 200 million conventional commercial paper (CCP).   In a statement, Cagamas said proceeds from the respective issuances would be used to fund the purchases of mortgage financings or house financing from the financial system. Cagamas stated that the...

The International Monetary Fund (IMF) has projected Turkey’s economy to shrink by 5% while also predicting that the global economy is set to experience its worst recession in 2020 since the Great Depression. However, the IMF expects Turkey to recover in 2021 with an economic growth of 5%. According to the IMF's global economic outlook report titled ‘The Great Lockdown’, Turkey's consumer price inflation is expected to come in at to 12% in both 2020 and 2021, while the country's current account balance calculated as percentage of GDP is forecast at 0.4% i...

With the effect of the COVID-19 pandemic weighing significantly on emerging markets, the International Monetary Fund (IMF) has narrowed Egypt’s real Gross Domestic Product (GDP) growth to 2%.  In a recent report, the IMF projected that consumer prices in Egypt would reach 5.9% in 2020, and 8.2% in 2021, compared to 13.9% in 2019. The report added that Egypt’s current account growth is projected to decelerate by 4.3% in 2020 and by 4.5% in 2021, compared to a decline of 3.6% in 2019.  According to the IMF, Egypt is expe...