The government of Egypt has announced plans for the issuance of Sukuk and additional Eurobonds and Green bonds for the financing of public projects as highlighted by the country’s Ministry of Finance on the 28th of February 2022. Why it Matters? Egypt is set to host the United Nations Climate Change Conference (COP27) in November 2022 and hopes to increase contribution to state-backed green investments by the government in the 2023 budget as part of a programme parallel to the event. The country has plans for doubling its contribution to government-backed green investment f...

Sharjah Islamic Bank’s (SIB) Shareholders have approved a 40% increment of the percentage of foreign ownership of the bank’s shares as well as the distribution of 8% of cash profits to shareholders, at the Annual General Meeting held virtually on the 27th of February 2022.  Why it Matters? Among the key actions taken at the meeting were the appointment of the bank’s Board of Directors, the approval of the consolidated financial statements for the financial year ending on the 31st of December 2021, and the ratification of the Fatwa and Shariah Supervisory Bo...

The local halal market in the Republic of Maldives (Maldives) is expected to expand on the back of an increase in halal tourism as several initiatives are developed including the government’s launch of a campaign supporting the development of halal tourism sales. Why it Matters? Maldives is a Muslim majority population with halal food consumed locally. The prominence of Islam in the country serves as an indicator that halal hotels would serve as a supply chain ready for certified food products. Halal certification is required for imported food to the country under the Maldi...

MBSB Bank Berhad (MBSB) is set to raise MYR 5 billion (USD 1.2 Billion) through trust certificates under its sustainability Sukuk Wakalah programme after signing an agreement with Maybank Investment Bank Berhad on the 22nd of February 2022 to establish the Sukuk. Why it Matters? The issuance is billed as the first sustainability Sukuk raised by an Islamic bank and is expected to provide investors with diversification while providing MBSM with access to investors with inclinations for environment, social and governance (ESG) mandates. According to MBSB's A...

After a robust year for Environmental, Social, and Governance- (ESG) linked Sukuk, that saw a 17.2% volume expansion to USD 15 billion in 2021 led by the Gulf Cooperation Council (GCC), Malaysia, Indonesia, Turkey and Pakistan, the global ESG-related market is expected to still experience rapid growth in 2022 despite the moderation experienced in the broader market.  Why it Matters? The expected slowdown in broader global Sukuk market issuance in 2022 is attributed to three main factors that include scarce and higher-priced global and regional liquidity, complexity in the i...

Kosher and Halal meat made up a third of Poland’s exported meat and meat products in 2020 that approximate a value of EUR 5 billion (USD 5.6 billion). The country meets the demand for beef slaughtered according to religious requirements inside and outside the European market and is one of the biggest beef producers in the European Union (EU). Why it Matters? An annual growth of 20% is expected for the halal European market for halal products, according to the Halal Verif association, with the biggest markets for Polish halal and kosher meat exporters being Turkey,...

The Arab Monetary Fund and United Nations Development Programme (UNDP) have jointly surveyed Arab pension funds and found rising understanding of Environmental, Social, and Governance (ESG) and a willingness to explore, strategise and plan to implement moreExisting ESG integration is dominated by negative screening and thematic approaches, with much more limited work on systematic integrationGiven the prominence of the Arab world in the global Islamic finance industry, and the findings of research by RFI Foundation on the integration of ESG and Shariah screens, there are currently under-...

Egypt has announced a consortium of six international banks to manage its inaugural sovereign Sukuk, expected to be launched in the second quarter of 2022 (2Q 2022), to raise USD 2 billion. The international lenders are: Citigroup, HSBC Holdings, Abu Dhabi Islamic Bank (ADIB), Credit Agricole, Emirates NBD Bank and First Abu Dhabi Bank (FAB). Why it Matters? Plans for the sovereign Sukuk sale were first announced four years ago; however, the country decided to proceed with other international issuance to meet its financial needs and ease its economic burden. The Sukuk is suggested to...

Emirates Development Bank (EDB) has inked an initial agreement with Dubai Islamic Bank (DIB) to offer a credit guarantee for  small and medium enterprises (SMEs) in the United Arab Emirates’ (UAE) key sectors. The deal between EDB and DIB was made on the 23rd of February 2022.  Why it Matters? The UAE plans to grow its industrial sector to more than double the current size of AED 300 billion (USD 81.7 billion) by 2031. Through the agreement, the two banks aim to reduce the funding gap by enabling swifter access to financing to SMEs in the fields of manufactur...

Amidst the high demand for Shariah-compliant banking services, Indonesia’s digital lender PT Bank Jago (Bank Jago) has rolled out an Islamic banking application known as Jago Syariah on the 22nd of February 2022.  Why it Matters? With over 230 million Muslim inhabitants in the country, the new app is to serve this sizeable population and drive development in the country’s Shariah banking products. Through the application, customers are able to build up savings through a Wadiah contract that enables them to deposit funds and assets with an Islamic bank into w...