Malaysia is revising down the country’s initial 2020 target for Halal exports, after considering the impacts of the Coronavirus breakout, which has slowed down global demand for Halal food. Malaysia was set to supply Halal meat and meals for the 2020 Olympic games scheduled to take place in Tokyo. The deal was to provide a significant boost to the country’s Halal export market. Authorities and officials were compelled to re-schedule the Olympic games to 2021 with the escalation of Coronavirus. According to Hairol Ariffein S...

In the Global Sukuk Market Dashboard by Fitch Ratings, it was stated that Sukuk issuing-nations who are net-oil-exporters, such as the Gulf Cooperation Council (GCC) countries and Malaysia, are likely to experience wider fiscal deficits and increased borrowing requirements in future, given the slump in oil prices and large scale economic stimulus packages launched by governments to combat the Coronavirus.  Whilst low oil prices would certainly provide some benefit to Sukuk issuers who are net-oil-importers, such...

A Saudi Arabian investor and four Egyptian Banks have bought the Sukuk issued by Arab Company for Projects and Urban Development, a subsidiary of Talaat Moustafa Group Holding (TMG). According to local media reports, EGP 1.45 billion out of the EGP 2 billion issuance was purchased by both Banque du Caire and Banque Misr, while Suez Canal Bank, the Egyptian Gulf Bank, and a Saudi investor purchased EGP 395 million, EGP 100 million, and EGP 55 million, respectively. This five-year Sukuk will be tradable on the Egyptian Exchange (EGX) and is non-convertible. ...

On the 14th of April 2020, Bank Indonesia (BI), kept its benchmark interest rate steady in a move to prop-up the IDR and to maintain external stability amidst the novel COVID-19 pandemic. Following the reduction of its benchmark rate twice this year in response to COVID-19 and six times in the current easing cycle (starting January 2019) by a total of 150 basis points (bps), BI refrained from reducing further its seven-day-reverse repurchase rate and held the key rate at 4.5%. Meanwhile, the lending and deposit rates were also kept unadjusted at 5...

On the 13th of April 2020, BankIslami Pakistan announced the country’s first initial public offering (IPO) of Additional Tier-1 Mudaraba Sukuk which will be listed and traded on the Pakistan Stock Exchange (PSX). Titled “BankIslami Ehad Sukuk” (Ehad Sukuk), the Ehad Sukuk offers a monthly profit payment at a rate of 2.75% over the three-month Karachi Interbank Offered Rate (KIBOR).  The Ehad Sukuk has been rated ‘A-’ by Pakistan Credit Rating Agency (PAC...

Malaysia has suggested that the Association of Southeast Asian Nations (ASEAN) establish a post-COVID-19 economic recovery plan that emphasizes not only on financial implications but also on social safety nets, food safety and education. This suggestion was made during a special ASEAN summit held on the 14th of April 2020. A statement from Vietnam’s Prime Minister’s Office stated that the ASEAN economic recovery plan should include initiatives to ensure a strong logistics network for the region’s 600 million people. It added that...

Islamic finance has become a USD 2 trillion industry across the globe over the past two decades, according to Standard & Poor’s (S&P). However, given the complex standards established by a number of Islamic bodies, it has become challenging for potential investors to identify an investment as Halal. S&P highlighted that fintech could support industry growth by facilitating faster and easier transactions.  Emerging fintech platforms such as the Zoya mobile application, which screens US-listed stocks based on criteria issued by the Accounting a...

The Monetary Authority of Brunei Darussalam (AMBD) in managing and administering Sukuk Al-Ijarah issuances on behalf of the government of His Majesty the Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah Ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam, has announced the issuance of 180 series Sukuk Al-Ijarah securities. The Sukuk which carries a maturity period of 91 days is set to begin on the 9th of April 2020 and will mature on the 9th of J...

The State Bank of Pakistan (SBP) has announced the auction of a five-year Government of Pakistan (GoP) Ijarah Sukuk to raise PKR 225 billion in the next three months for the federal government. The Sukuk will be issued against the land of Karachi’s Jinnah International Airport. This forms a part of the PKR 700 billion that was approved by Pakistan’s Federal Cabinet’s finance the country’s budget deficit and to meet the rising financial requirements imposed by COVID-19. According to the SBP, this S...

In its April 2020 update to the World Economic Outlook, the International Monetary Fund (IMF) lowered Indonesia’s 2020 GDP forecast to 0.5%, considerably lower than its previous projection of 5.1% in October 2019. This downward revision comes largely on the back of the global COVID-19 pandemic that is causing economic turmoil and havoc in markets across the globe. The IMF anticipates severe disruptions to domestic economic activity in Indonesia, a country largely reliant on commodity exports, as opposed to finished good exports.  The IMF stated...