The Central Bank of Bahrain (CBB) announced that its most recent issuance of Sukuk Al-Salam for BHD 43 million was oversubscribed by more than double the amount (233%) to a total of BHD 100.27 million.   The Sukuk Al-Salam was issued by the CBB on behalf of the Government of the Kingdom of Bahrain, marking the 228th issue in the Government’s short-term Sukuk Al-Salam series.   The Sukuk which carries a maturity period of 91 days is set to begin on the 15th of April 2020, and will mature on the 15th of July 2020.   The expected return on the short-term...

In line with the instructions of Indonesia’s Ministry of Home Affairs (MOHA), the regional governments in Indonesia have earmarked IDR 85 trillion from their budgets for expenditure on the fight against the COVID-19 pandemic, MOHA announced. According to Moch. Ardian, MOHA’s Director General for Regional Finance, around 93% of local governments across Indonesia had altered their budgets, adding that the reallocation would continue as more administrations become engaged in fighting the global pandemic that has severely impacted Indonesia. These funds are e...

The Financial Regulatory Authority (FRA) of Egypt has plans of offering five new Sukuk, or Shariah-compliant bonds worth EGP 5 billion in 2020, according to the FRA’s Head of Central Financing, Sayed Abdelfadil. During the first week of April 2020, the FRA approved the issuance of the first Sukuk in the Egyptian capital market by the Arab Company for Projects and Urban Development, which is a subsidiary of Egypt’s real estate giant TMG Holding (TMGH). According to the FRA, the total value of this Sukuk Ijarah is expected...

The postponement of the Tokyo 2020 Olympic Games is set to impact Malaysia, with a delay of up to MYR 866 million in revenue. Malaysia is the only country to have penned a deal with Japan to provide Halal goods and services for the Tokyo 2020 Olympic Games (Games) via government-linked Halal Development Corporation (HDC).  The Games, which were originally scheduled to commence on the 24th of July 2020 and go on for just over two weeks, has now been postponed to 2021. Japan had been aiming to attract up to 40 million v...

The Central Bank of UAE (CBUAE) has urged all banks operating in the country to extend their assistance for corporates, small and medium enterprises (SMEs), and individuals to mitigate all risks associated with COVID-19. During a meeting between CBUAE’s Governor, Abdulhamid Saeed, and CEOs of banks operating in the country, Saeed emphasised the importance of extending support to private sector companies and individuals affected by COIVD-19 as part of the Targeted Economic Support Scheme (TESS).  At the meeting, the CEOs appreciated the exceptional mea...

The Bangladesh Bank (BB) has requested the government authorities and law enforcing agencies to take necessary steps in declaring mobile financial services (MFS) as emergency services amidst the on-going movement restrictions imposed due to COVID-19. BB issued a circular on the 12th of April 2020, requesting government authorities and law enforcement agencies in Bangladesh for their support, to facilitate the movement of MFS providers’ employees, distributors, employees of the distributors, and agents, to e...

The Ministry of Finance of Saudi Arabia has announced the conclusion of SAR-denominated Sukuk Program for the month of March 2020. This issuance was made under three tranches with a size set at SAR 15.568 billion. The three tranches of this Sukuk are expected to mature in a period of 5 years to 30 years.  According to the IslamicMarkets Sukuk Monitor, the first tranche issued under this program has a size of SAR 170 million and a total tranche size of SAR 2.743 billion, maturing in 2025. The second tranche that matures in 2030 has a size...

S&P Global Ratings (S&P) has forecasted global Sukuk issuances at around USD 100 billion for 2020, down 40% YoY. This reduction comes on the back of lower oil prices, as well as muted economic performance in core Islamic finance markets as these countries focus on overcoming the COVID-19 pandemic. S&P also stated that most government issuers may prefer conventional securities over Sukuk as they struggle with the impact of a weaker economic environment on their budgets. S&P added Sukuk issuances are als...

According to the research arm of Kenanga Investment Bank, Kenanga Research (KR), Malaysia’s COVID-19 stimulus packages accounts for 17.6% of its Gross Domestic Product (GDP) to date, higher than those of its ASEAN peers. For example, Singapore and Thailand’s stimulus packages stood at 12% of GDP, while Indonesia’s was just 2%.  While KR has cautioned that the federal government could now experience limited fiscal space as a result of the large stimulus, KR also highlights other funding o...

Pledging support to its member countries in addressing the challenges of COVID-19, Islamic Development Bank’s (IsDB) Group President, Dr Bandar Hajjar, has held discussions with its member countries regarding the needs to curb the pandemic, as well as its implications. In addition, the IsDB has also provided the required assistance in the fight against COVID-19.  The IsDB announced an amount of USD 11 million in funding to contain the spread of COVID-19 in Kyrgyzstan, with discussio...