In a circular issued, the Central Bank of Oman (CBO) has instructed the country’s banking, sector companies to encourage the use of online banking services amongst customers, in efforts to minimise physical interaction with customers without disturbing day-to-day banking transactions. In directives issued, CBO has requested the banking sector to ensure business continuity and smooth functioning of the banking system amid ongoing restrictions to control the spread of the Coronavirus. Banks in the sultanate have ...

Suahasil Nazara, the Deputy Finance Minister of Indonesia, stated that the country is considering the possibility of raising the fiscal deficit limit as a percentage of GDP, above the current permitted level of 3 percent, to protect the economy in times of the Coronavirus. He cited that the Finance Ministry has increased the projected Fiscal deficit for this year from 1.8 percent to 2.5 percent of Gross Domestic Product (GDP). The Parliament budget Committee has further recommended that the government to rai...

According to Chief Economist of Malaysia Rating Corp Bhd (MARC), Nor Zahidi Alias, poor economic growth conditions are likely to drag down overall Sukuk Issuance in Malaysia, but the prevailing low interest-rate environment coupled with accommodative policies by Bank Negara Malaysia (BNM) may negate the impact on Sukuk Issuance to an extent.  The downside risk will be largely dependent on the nature of the spread of the Coronavirus, where continued lockdown periods across global economies and outbreaks...

In an attempt to promote ease of doing business and to support the development of the country’s Life Insurance Sector, the Securities and Exchange Commission of Pakistan (SECP)  has relaxed the process for registering new life insurance products and submitting amends to an existing product. A circular issued (S.R.O. 234(I)/2020) detailing the revisions to the older process, stated that the amount of information required to be submitted for a new product that is likely...

A decision announced by the Minister of Awqaf and Religious Affairs in Oman, Sheikh Abdullah bin Mohammed al-Salmi, stated that a Health Endowment Fund in compliance with Shariah code provisions will be set up in the country. Named as ‘Endowment Fund for Enhancing Health Services’, the Funds’ revenue will be primarily utilized to enhance healthcare related activities and programs in the sultanate, such as: Exploring varied novel sources of support for health services, revivin...

The International Monetary Fund (IMF) has cautioned Middle Eastern governments of the likelihood of a major decline in the regional economic growth, led by a possible slump in Oil Revenues and other disruptions caused by the Coronavirus pandemic.  The IMF's regional director for the Middle East and Central Asia, Jihad Azour stated that the pandemic causes significant economic turmoil in the region through simultaneous shocks such as a drop in domestic and external dema...

Asr Leasing LLC (Asr) of Tajikistan has been certified as an Ijarah facilities provider by UAE based AlHuda Center of Islamic Banking and Economics (CIBE), an advisory firm specializing in Shariah based advisory services. CEO of AlHuda CIBE, Muhammad Zubair Mughal, stated that Asr has gained a first-mover advantage in Islamic leasing in Tajikistan, which is a predominantly Muslim country. Founded in 2013 by Islamic Corporation for the Development of the Private Sector (the private arm of Islamic Development Bank), Asr ...

Kuwait based Equate Petrochemical Company (EPC) has planned to issue a USD-denominated, five-year Sukuk, marking possibly the first debt issuance in the Gulf region in over a month. This Sukuk will be issued along with two other USD-denominated conventional bonds, and is expected to be a three-tranche transaction.  EPC has employed Citibank, JPMorgan, KFH Capital, MUFG and NBK Capital to lead the deal while First Abu Dhabi Bank, HSBC, Mizuho and SMBC Nikko banks are also on the deal. These banks have begun arranging a&nb...

Sayyaf Aircraft and Equipment Rental Company (SAERC) has decided to postpone its USD 50 million Sukuk issuance, citing economic uncertainty caused by the COVID-19 pandemic. The Sukuk program is now expected to be issued in the fourth quarter of 2020, which will coincide with receipt of new aircrafts. The funds will be raised in two tranches, the first being a USD 7 million tranche with a three-year maturity, sold domestically. The second tranche of USD 43 million will carry a tenure of five-to-eight years, a...

Fitch Ratings reports that Turkish participation banks have outpaced conventional banks in segment growth in recent years, despite the market being intensively volatile.  Turkey’s participation banks have grown at a higher pace than the conventional banks, albeit this growth coming off the back of a lower asset base. At the end of 2019, Turkey’s participation banks accounted for only 6.3% of total banking tor assets, well short of the Government’s expectation of 15% for 2025. Fitch a...