On the 19th of March, 2020, a presidential decree authorized the Cameroon’s Minister of Economy to enter into a financing agreement worth XAF 64.3 billion and its post-renewal documentation with Islamic Trade Finance Corporation (ITFC), Member of Islamic Development Bank (IsDB).  This amount is expected to be utilized for the development of Cameroon’s Cotton and Soy sectors and will go towards procuring agricultural inputs, soybean and cottonseed from the local market. With the ITFC financing, it is expected to help in...

The Selangor Zakat Board (LZS) of Malaysia’s Selangor state has allocated MYR 15 million as an emergency relief fund to assist the small vendors and hawkers who are affected by the thirteen-day movement control order (MCO) imposed in the country, due to the on-going COVID-19 pandemic. LZS Chief Executive Officer, Saipol Yazan M. Yusop, stated that this initiative was taken considering the impact of MCO on Selangor’s traders, and their survival during the crisis situation. He further added that the allocated fund would also be directed to ad...

Oman based financial services provider, Bank Muscat is expecting to obtain shareholder approval for the renewal of the Meethaq Sukuk program for up to OMR 500 million, at an Extraordinary General Meeting to be convened 24th March 2020. In a disclosure given to Muscat Securities Market, Bank Muscat said that the Sukuk will be issued in several tranches in both domestic and international markets. The Sukuk issuance is expected to take place either through a private placement or a public listing. Sukuk tranches under the Meethaq ...

Shareholders of the United Arab Emirates (UAE) based Dubai Islamic Bank (DIB) have given approval to increase the foreign ownership limit (FOL) from 25% to 40%. Group CEO of DIB, Dr Adnan Chilwan said the decision to enhance the FOL to the maximum allowable 40% limit was taken based on immense interest from global investors. Sustained performance of the bank over the years had resulted in the bank’s assets exceeding AED 230 billion and DIB’s market share rising to approximately 10%.  ...

According to the Financial Regulation Authority (FRA), the Council of Ministers’ has approved the sale of a 75% stake in Tokio Marine Egypt Family Takaful Company (TMFT) to two corporate buyers. Reda Abdel Moaty, Vice Chairman of the FRA stated that the Egyptian law requires Cabinet approval for investments in Egyptian insurance companies exceeding 10% of the issued shares. In the deal valued at EGP 84.75 million (USD 5.38 million), Hermes Financial Group and GB Capital will own stakes of 3...

Indonesia’s national carrier Garuda Indonesia (Garuda) and Indonesia’s State-Owned Enterprises (SOE) Ministry have held discussions to restructure Garuda’s Sukuk maturing in June 2020.  According to the IslamicMarkets Sukuk Monitor, in June 2015, Garuda issued a USD 500 million, five-year global Sukuk with an annual return of 5.95%, which is due to mature in June 2020.  Erick Thohir, Minister of SOE, said that SOEs have been discussing the restructuring with Garuda for over a month and stated that Garuda has...

United Arab Emirates (UAE) based Islamic Banks, such as Abu Dhabi Islamic Bank (ADIB), Dubai Islamic Bank (DIB) and Emirates Islamic Bank (EIB), have launched a series of measures to relieve the burden of COVID-19 on its retail and corporate customers.  This comes in line with the Central Bank of the UAE’s measures to reduce the effects of COVID-19 on UAE’s economy. Individual customers will receive a series of benefits including instalment deferments, cash back on selected essentials (up to 5%), removal of fees and ch...

The Federal Territories Islamic Religious Council (MAIWP) has allocated MYR 3.27 million in Zakat funds for seven hospitals under its authority. In a statement given by the Chairman of MAIWP, Datuk Seri Syed Hussein Alhabshee, it was stated that this allocation has been made for the purpose of procuring health and medical equipment for the aforementioned hospitals, following the COVID-19 pandemic. Syed Hussein further stated that the aid will be in the form of breathing apparatus such as ICU ventilators, Bilevel Positive Airway Pressure (BIPAP) machines, and h...

In an attempt to stabilize the economy against the adverse impacts of COVID-19, Bank Indonesia (BI) has reduced its benchmark interest rate for the second time in 2020. On the 19th of March 2020, BI cut its 7-day reverse repo rate by 25 basis points (bps) to 4.5%, in efforts to maintain a balance between the country’s economic growth and stability in the financial markets, which witnessed significant capital outflows. Perry Warjiyo, BI Governor, stated that the rate cut remains “consistent with controlled...

With the number of COVID-19 cases on the rise, The Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), together with 19 of its members, have come forward to provide relief to their most affected customers.  Among the banks offering support are CIMB Islamic Bank, Maybank Islamic, Alliance Islamic Bank, AmBank Islamic and Hong Leong Islamic Bank. These banks are offering customers’ installment deferment for up to six months as the COVID-19 outbreak has impacted the Malaysian economy. In addition to the&...