According to a report by United News Bangladesh (UNB), in addition to the hit on export earnings, Bangladesh’s economy is likely to experience another major shock in future due to a slowdown in remittance inflow caused by impacts from the Coronavirus. The halt on economic activities worldwide due to the restrictions and limitations brought about by the Coronavirus, has left many wage earners with little to no income. As mentioned in the report, remittances from migrant workers are the main source of income for a large number of&nbs...

S&P Global Ratings (S&P) stated that the spill over effects from the Coronavirus outbreak and plummeting oil prices are likely to affect earnings of Gulf insurers, hinting of a possible ratings downgrade for certain companies. A report issued by the ratings agency mentioned that most insurers in the GCC region rated by S&P enjoy strong capital buffers, and therefore possess the ability to absorb Coronavirus related claims and capital market volatility.  However, the agency anticipate worsening conditions in e...

On Friday the 3rd of April 2020, Malaysia’s Selangor Zakat Board (LZS) will be fully distributing the Covid-19 special charity aid fund, set up with a value of MYR 14 Million to help 29,000 eligible recipients.  LZS has been disbursing the funds allocation to recipients in stages, starting from the 27th of March 2020.  The Chief Executive Officer of LZS, Saipolyazan M. Yusop said that 9,000 recipients who are categorised as needy, poor or new con...

The Pakistani federal cabinet approved a domestic Sukuk issuance valued at PKR 700 billion on Tuesday (the 31st of March 2020), with the objective of financing the nation’s increasing budget deficit and meeting growing financial needs in the wake of the Coronavirus outbreak.  Sources indicated that the budget deficit may further exacerbate given the possibility of non-materialisation of certain financing items due to a potentially extended lockdown in the country and ...

The Banking Scoreboard and Islamic Banking Scoreboard of RAM Rating Services Berhad (RAM Ratings) indicated that banks in Malaysia have capacity to withstand stresses on asset quality considering their high levels of capitalisation. The Scoreboards asses key Malaysian banks on twenty five metrics, including those pertaining to asset quality, profitability, liquidity as well as capitalisation. In a statement issued, RAM Ratings mentioned that the Banking Scoreboard showed that the banks’ asset qu...

On Tuesday 31st March 2020, the government of Saudi Arabia issued the green-light for privatising government assets by listing them on the Saudi Stock Exchange, Tadawul.  The listing is to take place following an initial-public-offering (IPO), which could either be direct or indirect as stated in a report by the state-run Saudi Press Agency (SPA). It was further mentioned that the indirect IPOs for these assets would be done via companies that own the government stakes in relevant projects. The g...

Shareholders of the United Arab Emirates (UAE)-based Abu Dhabi Islamic Bank (ADIB) have given approval to increase the foreign ownership limit (FOL) from 25% to 40%, in response to ADIB’s attempts to expand its investor base. Group Chief Executive Officer of ADIB, Mazin Manna, stated that cost discipline, optimisation initiatives, as well as investments into digital transformation have yielded benefits to ADIB’s top-and bottom-line results in 2019. This should help position ADIB as a favourable investment opportunity to potential inves...

Egypt’s local media reported that Talaat Moustafa Group (TMG) aims to launch its first Sukuk programme worth EGP 2 billion by the end of next week, on the Egyptian market. The Sukuk program which is currently under review by the Financial Regulatory Authority (FRA) is expected to receive the FRA’s approval within a short period to proceed with the launch.   TMG’s Sukuk offering will be in the form of Sukuk Ijarah with a fixed return that will guarantee both the project’s success and profits. This is&nb...

The Islamic Corporation for the Development of the Private Sector (ICD) has announced a USD 250 million emergency fund, expressing its concern over the health and well-being of its member countries, partners and employees due to the COVID-19 pandemic. Being a multilateral organization affiliated with the Islamic Development Bank (IsDB) Group, ICD will be providing this funding mainly in the form of medium-to long-term financing instruments to assist its clients in the financial, agri-food, energy and other affected sectors. ICD also expects to help the private health...

Malaysia small and medium enterprises (SMEs) stated on the 30th of March 2020, that they do not expect any cash inflow to their businesses for at least three months due to Malaysia's movement control order (MCO) to curb the spread of the COVID-19. However, they are still expected to continue paying full salaries, rental and some statutory payments, said Datuk Michael Kang (Kang), the National President of SME Malaysia. In an online survey conducted by the SME Association of Malaysia, it was found that 33% of SMEs have sufficient cash flow to...