Sustainable investment has played a strong role in Egypt’s economic growth, seeing green investments reach around 30% of the 2022 budget, as highlighted by the country’s Minister of Finance (MoF), Mohamed Maait at the Egypt Petroleum Show (EGYPS 2022) held from the 14th to 16th of February 2023.  Why it Matters? The MoF, in line with its goals to diversify its resources, issued its first green loan from a number of international and commercial banks, valued at USD 1.5 billion, receiving strong demand. Further, the first annual allocation and environmental impact...

Saudi Arabia-based Al Rajhi Bank has received approval from the Capital Market Authority to raise SAR 40 billion (USD 11 billion) in alignment with the country's Vision 2030.Why it Matters? Through the transaction, the bank aims to increase its capital from SAR 25 billion (USD 6.7 billion) by 60% to support the bank’s operations, which is anticipated to contribute to generating good future growth ratios. The expected increase will take place via the capitalisation of SAR 15 billion from the retained earnings. Through the issuance of three bonus shares for every five existin...

The Republic of Maldives’ (Maldives) Islamic finance sector is seeing development effort, despite an apparent need for legislation and local turnover in order to develop an offshore hub through attracting sufficient international players. Why it Matters? The Maldives, with a Muslim population of 540000 and a general interest to embrace Islamic finance, is seeing a need to make Islamic finance services more abundant and enhance savings and lending rates in Islamic banking to compete with its conventional peers. With the aim to drive the country’s efforts to become a hu...

Potential Sukuk issuers have a genuine concern. The movements of United States (US) Treasury yields and US dollar midswap rates are expected to impact their cost of funding in 2022. Issuers should be conscious of issuance sizes and whether they prefer to get the right pricing or targeted size.Right PricingOne of the pillars within Islamic/ conventional debt capital markets is determining the right pricing for your cost of funding. This vital issue is a deal-breaker for potential issuers. Most investors know that some Gulf Cooperation Council (GCC) states are better rated than others in eme...

In conjunction with the International Women's Day 2022, Malaysian government-owned bank, Agrobank has introduced a Takaful coverage plan worth MYR 10 million (USD 2.4 million) named Takaful Kasih Plus, under the Agronita Promotion Campaign, a special campaign launched to empower women agropreneurs. Why it Matters?  The pandemic has negatively impacted entrepreneurs, particularly women, and accordingly, the campaign hopes to provide assistance, targeting women micro-agropreneurs in food and agriculture-based sectors and ensuring the sustainability of their respective business...

The National Debt Management Center of the Kingdom of Saudi Arabia (KSA), also known as NDMC, has announced the issuance of a new Saudi Riyal-Denominated Sukuk worth around SAR 26.2 billion (USD 7 billion) under the Sukuk Issuance Programme, on the 9th of March 2022.  Why it Matters?  The issuance represents the third phase of NDMC’s initiative that started in 2020 with the aim to align local issuances in the KSA under the Programme in Saudi Riyal and strengthen the domestic market and is set to be divided into four tranches. Of the tranches, two will have the lon...

Through contemporary development in which an increased number of new COVID-19 cases had been observed since October 2020, the labour market was severely affected and encountered future uncertainties.Folks with insufficient savings will find that the movement control order (MCO) has made their living difficult, particularly in fulfilling the basic needs of their families including foodstuffs, healthcare, and equipment for online learning, to mention some. Hence, this sparked a mental health issue sourced from the fact that individuals became excessively anxious, depressed and pressured as the...

Qatar International Islamic Bank (QIIB) has received approval from its shareholders for the issuance of USD 1 billion Tier 2 Sukuk as well as the extension of the (2021 general assembly) approval for the bank’s USD 2 Billion Sukuk Programme, recommended by the bank’s board of directors at the QIIB annual ordinary general assembly meeting held on the 7th of March 2022. Why it Matters? QIIB maintained its financial indicators’ stability and profitability through the impacts of the pandemic, as per its 2021 financial results, leveraging digital solut...

Sukuk issuance is expected to decline on the back of higher oil prices in 2022 and lower needs for financing in the Gulf Cooperation Council (GCC), resulting from economic recovery, according to Moody’s Investors Service (Moody’s). Why it Matters?  In 2021, Sukuk issuance saw a 12% drop to USD 181 billion as economies gradually recovered and sovereign funding needs declined in the GCC and Indonesia, while a further drop is forecast in issuance activity for 2022 to USD 160 - USD 170 billion. A boost is expected in credit growth and demand for Shariah-complian...

A partnership has been formed between Bahrain-based Arab Financial Services (AFS) and United Arab Emirates- (UAE) based Aafaq Islamic Finance to support Fintech startups in the UAE in launching products and services in the local market. Why it Matters?  The partnership is in line with AFS’s Regional Partner Programme that aims to provide a platform for emerging and existing Fintechs to launch, expand and scale their products across the region. According to Samer Soliman, AFS’s Chief Executive Officer (CEO), technology and innovation is recognised as vital for the...