The Financial Regulatory Authority (FRA) of Egypt has given authorization for conventional insurance companies to make capital contributions to their Shariah-compliant counterparts.  The decision exempts Takaful companies from a stipulation in the 1981 Insurance Act that prevents insurers operating in Egypt from contributing capital to another insurance company engaged in similar activity. The FRA stated that the nature and processes of Takaful insurance made these companies distinct in relation to the work they do, relative to...

Media reports state that the Government of Dubai has raised AED 1 billion from the private placement of a Sukuk, as Dubai’s finances have become strained due to the impacts of the COVID-19 pandemic. The Sukuk, which matures in eight years, carries a profit rate of 4.7125%, with Standard Chartered being the arranger.  According to a senior debt capital markets (DCM) banker, the Government will be able to repo the deal with the United Arab Emirates’ Central Bank, making it a good way for Dubai to fund itself. Being the region&rsqu...

The High Islamic Council (HCI) of Algeria has announced the establishment of an overseeing body for the Islamic finance industry named, Charaic National Fatwa Authority (Authority) for the Islamic finance industry. The newly formed Authority will be responsible for the issuance of Shariah-compliant certificates to banks and other financial institutions. It is expected that the Authority will also help the Bank of Algeria in domiciliation of Islamic finance in the country. With the incorporation of the new Authority, the Algerian government aims...

Fitch Ratings (Fitch) has affirmed Malaysia’s Long-Term Foreign-Currency Issuer Default Rating at “A-” but revised its Outlook from Stable to Negative, the Ministry of Finance announced today. Finance Minister, Tengku Zafrul Aziz, said that this reflected the government’s responsiveness in handling the COVID-19 crisis and synchronised worldwide economic shock in a timely, decisive and comprehensive manner. He added that the stimulus packages launched by Malaysia to date would place the c...

In an attempt to cushion the impact of COVID-19 on businesses and its workers, Bahrain has rolled out a program worth USD 570 million to cover the salaries of its 100,000 citizens working in the private sector, for a period of three months effective April 2020.  Bahrain’s Labour and Social Development Minister, Jameel bin Mohammed Ali Humaidan, announced that this initiative has been taken as a part of a move to provide liquidity to the private sector to help mitigate the social, as well as economic impact...

Malaysia's CGS-CIMB Securities (CGS-CIMB) has become the country’s first broker to offer Islamic cross-border trading (ICBT) through an online platform. Amidst the COVID-19 pandemic, CGS-CIBM launched its ICBT services through CGS-CIMB iTrade platform. CGS-CIMB Chief Executive Officer, Ruzi Ajith, said in a statement that, there are pockets of investment opportunities during uncertain times and investors can consider diversifying their investments to minimize the impacts of a volatile market. She added that the launch of...

Malaysia-based International Islamic Liquidity Management Corporation (IILM) has successfully concluded its issuance of three A-1 rated Sukuk with a total value of USD 1.06 billion.  The overall demand was strong, drawing over USD 1.85 billion in demand, with an average bid-to-cover ratio of 175% for the three tranches.  The three tranches of this Sukuk consist of an issuance worth USD 300 million with a one month maturity carrying a 1.15% profit rate, a USD 460 million Sukuk maturing in three months with a profit rate of 1.55%,&n...

UEM Edgenta, the Malaysia based Asset Management & Infrastructure Solutions company has its MYR 1 billion Sukuk’s AA-IS rating affirmed by Malaysian Rating Corporation (MARC). The affirmation is driven by UEM Edgenta’s strong business and financial profile, which is backed mainly by long-term contracts in its growing regional healthcare support services portfolio, and recurrent highway maintenance services. The rating agency said that UEM Edgenta’s contracts have provided consistent growth in earnings which, coupled with low borrowings levels, have translate...

Credit rating agency Fitch Ratings (Fitch) has affirmed Kuwait's long-term foreign-currency Issuer Default Rating (IDR) at 'AA' with a Stable Outlook. Fitch stated that this affirmation was driven by Kuwait’s strong fiscal and external balance sheets, which are increasingly counterbalanced by the country’s institutional paralysis and slowness in addressing emerging public finance challenges due to heavy oil dependence. Fitch estimated foreign assets of Kuwait Investment Authority to be at around USD 529 billion, for the year ending March 2020. This accounts for th...

In an attempt to reduce financial stress on new and existing firms based in the Dubai International Financial Centre (DIFC), the Dubai Financial Services Authority (DFSA), the regulator of Dubai’s onshore financial hub, has announced a relief package consisting of fee waivers and reductions in capital requirements. The DIFC is home to some of the world’s biggest financial institutions, banks, investment firms, wealth managers and insurers. Bryan Stirewalt, Chief Executive Officer of the DFSA said that the regulator is monitoring the operational as well as...