Dubai outlines plans to unify legal framework for Islamic finance

Once complete, the project would bring “much anticipated standardisation to the Islamic finance sector, reduce discrepancies in practices across the globe, and eventually translate into positive outcomes for the Islamic economy as a whole”, Dubai Media Office said.

Covid an opportunity to transform Islamic finance, says S&P

“The temporary slowdown in the growth of Islamic finance as a result of the Covid-19 pandemic could help unlock the long-term potential of the industry.

After a stellar performance in 2019, helped by a dynamic sukuk market, there has been “a significant slowdown of core Islamic finance economics in 2020,” stated S&P Global Ratings head of Islamic finance Mohamed Damak. While there is expected to be a “mild recovery” in 2021, there is also an opportunity to undergo reforms that could accelerate the industry’s long-term prospects.”

UAE takes lead to set up unified legislative framework in Islamic finance

The UAE has launched an initiative to create a unified global legal and legislative framework for the Islamic finance sector that will enable the Islamic economy to expand its reach and implement greater standardisation within the sector.

Post-COVID-19 economic revival: Islamic finance can play a key role in GCC

Islamic finance social instruments could help countries navigate the economic turbulence wrought by the COVID-19 pandemic in core Islamic finance countries that include the GCC.

Do join us to hear from our expert panelists sharing their thoughts and ideas.

Maqasid As-Shariah vis-a-vis Islamic Financial Engineering in Battling Covid-19

This is a recorded Webinar on the topic entitled: Maqasid Shariah vis-a-vis Islamic Financial Engineering in Battling COVID-19

The session included a live Q&A with our experts:

• Datuk Dr. Mohd Daud Bakar, Executive Chairman of Amanie Group
• Dr. Humayon Dar, Director General of Cambridge Institute of Islamic Finance
• Dr. Muhammad Amin Ali Qattan, Director of Islamic Economics Unit, Centre of Excellence in Management at Kuwait University

Brought to you by Amanie Media Sdn Bhd. www.amaniemedia.com

Commentary: How much does the Islamic economy embrace gender diversity and inclusion?

“As women make their mark in entrepreneurship, the corporate world of Islamic finance and banking still lags behind in diversity and inclusion, especially across leadership level.

The greatest inroads for representation and gender parity in Islamic finance has been made by Malaysia and Indonesia, where women are found as CEOs, board members, academics and Shariah scholars at regulatory bodies, Islamic banks and other Islamic financial institutions. These include women taking some of the highest offices in their respective countries.”

 2020: the year sustainable Islamic finance scales?

“Dubai Islamic Economy Development Centre (DIEDC) and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) have signed a memorandum of understanding (MoU) to explore the latest developments, risks and challenges in Islamic finance. Under the agreement, the two parties aim to conduct joint capacity-building programmes related to the Accounting and Auditing Organization for Islamic Financial Institutions standards in various jurisdictions, especially in markets new to Islamic banking and finance.”

“The Islamic finance sector is booming. From a market of just $200bn in 2003, the sector is expected to grow to over $4trn in assets by 2030. Much of these funds originate in the majority Islamic countries in the Arab region, yet the investments are global in scope and impact.

As Islamic finance continues to expand in the next decade across regions and asset classes, there is a unique window of opportunity to align elements of these investments with the UN Sustainable Development Goals (SDGs). “

Innovative Funding for Humanitarian Impact in Africa

CEO for the Amanie Global Office, Maya Marissa Malek has been invited to join a panel of speakers at an upcoming Chatham House event to discuss Innovative Funding for Humanitarian Impact in Africa. The speakers will assess the challenges for sustainable financing in the humanitarian sector and prospects for multi-stakeholder collaboration and innovative funding tools to fill the widening deficit in assistance needs.

Islamic finance picks up on best practices

“Socially responsible investing (SRI) and Islamic finance share similar origins and aspirations. Common to both is an ethical underpinning that puts stewardship and societal value creation at the forefront of finance. Yet for the most part, the two modes of finance have existed as distinct approaches in parallel worlds.”

How Malaysia is positioning itself as a regional SRI centre

Securities Commission Malaysia (SC) is positioning the country as a regional hub for sustainable and responsible investing (SRI) as it launched a new initiative to accelerate the performance of corporate Malaysia in supporting the achievement of the United Nations Sustainable Development Goals (SDGs).

Global Compact Network Malaysia, the local network of the UN Global Compact, and Capital Markets Malaysia have jointly launched the Global Compact Network Malaysia Centre of Excellence (COE) to drive the strategic development of the sustainability agenda.

Maybank Islamic opens first overseas branch in DIFC

“Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of Dubai International Financial Centre (DIFC), attended the official opening of the first overseas branch of Maybank Islamic Berhad (Maybank Islamic), the largest Islamic Bank in Malaysia and the Asean region by assets size, in Dubai at DIFC.

Maybank Islamic is the Shariah-compliant division of Malaysia’s largest lender Malayan Banking Berhad (Maybank), and one of the leading arrangers in Bloomberg’s Global Sukuk League Table. Maybank Islamic’s total assets stood at more than $57.35 billion as at September 30,2019.”

GCC issuances help drive $42.2bn sukuk market in 2019

“Global sukuk issuance rose 6 percent in 2019 as the range of issuers and investors broadened, although supply is still concentrated geographically, according to Fitch Ratings.

Sukuk issuance with a maturity of more than 18 months from the Gulf Cooperation Council (GCC) region, Malaysia, Indonesia, Turkey and Pakistan totalled $42.2 billion in 2019, up from $39.8 billion in 2018.

The 2019 figure was nearly 40 percent higher than 10 years earlier, although below the record high reached in 2017, Fitch said.”

The global Islamic financial market: trends, prospects and challenges- IFSI report

“With a total net worth of $2.19 trillion between 2018 and 2019, recent growth of around 6.9 per cent and notable developments in financial products in the past decade, the Islamic financial industry has attracted investors, researchers, governments and other stakeholders to participate, contribute as well as engage in the analysis of its prospects and challenges.

There have been a number of recent advancements in light of key challenges in the two major markets of the Islamic financial industry, that is the Islamic banking market and the Sukuk market, which also offer interesting new prospects and potential ways forward for the industry.”

GCC to play a key role in 2020 sukuk issuance

“Global sukuk issuance in 2020 is expected to surge further on the back of strong growth in 2019 supported by continued demand for issuance from GCC countries and core Islamic finance markets, according to rating agency Standard & Poor’s.

“Although global financial conditions should remain highly accommodative next year, we don’t expect additional easing by the US Federal Reserve and only a marginal deposit rate cut by the European Central Bank in 2020. In addition, more than $10 trillion of debt has negative yields. Therefore, we think that issuers with a good credit story will continue to tap the market with relative ease,” said Mohamed Damak, Senior Director and Global Head of Islamic Finance at S&P.”

Islamic fintechs are on the rise — but how viable is this tailored offering?

“Fintech is a crowded space. But a new subgenre is emerging to attract the world’s 1.8bn Muslims with a Shariah-compliant alternative. Young Muslims want in on Europe’s fintech scene. Their pitch is that Muslims, who make up 20% of the world’s population, have been underserved not only by traditional banks, but also by modern fintechs.”

Brexit brings risks and opportunities for UK Islamic finance but unlikely to revolutionise domestic industry, say experts

“The United Kingdom is set to leave the European Union (EU) on January 31. Uncertainty looms as to whether the government will secure a trade deal with the EU or leave in December 2020 without one. Nonetheless, Brexit presents various risks and opportunities, such as Islamic finance playing a role in bilateral trade negotiations and the UK’s second sovereign sukuk. Beyond these, it is unlikely it will significantly transform the industry in the UK, according to stakeholders polled by Salaam Gateway.”

Islamic banking assets in Turkey to double in 10 years, Moody’s says

“Islamic banking assets in Turkey are set to double within 10 years as government initiatives drive growth in the sector, a report published Monday by Moody’s Investors Service said. According to the report, currently, the country’s Islamic finance sector is smaller than other large Muslim countries, and its slow start means it has ample room to expand. The sector represented just over 5.8% of banking assets at the end of September 2019, compared to Malaysia (33%) and Middle Eastern countries (15% – 77%).”

“Planet, people and prosperity ― or the Three Ps ― are the new frontier of Islamic finance in bringing greater value to the economy, society and the environment, says the Sultan of Perak, Sultan Nazrin Shah.

While in many tangible ways Islamic finance industry has already helped to generate more socially conscious and sustainable economic system, much work needs to be done in these three key areas, he pointed out.”

Sultan Nazrin: Islamic finance set to be greater contribution to economy, society and environment

The Islamic finance industry’s assets grew to $2.5 trillion in 2018 from $2.4 trillion in 2017, a rise of 3 percent, according to the Islamic Finance Development Report 2019.

Islamic finance assets hit $2.5trln; banking assets total $1.76trln: ICD-Refinitiv

Sukuk-Focused Amana Participation Fund Attracts $100 Million in Assets

“Saturna Capital Corporation (Saturna), adviser to the Amana Mutual Funds, announced that the Amana Participation Fund (AMAPX, AMIPX), which invests primarily in income-producing securities called sukuk, has surpassed a milestone $100 million in assets. To ensure the Amana Funds’ investments meet the requirements of the Islamic faith, Saturna Capital engages Amanie Advisors Sdn Bhd, a leading consultant specializing in Islamic finance.”

DIEDC, accounting body sign MoU to collaborate on Islamic finance

“Dubai Islamic Economy Development Centre (DIEDC) and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) have signed a memorandum of understanding (MoU) to explore the latest developments, risks and challenges in Islamic finance. Under the agreement, the two parties aim to conduct joint capacity-building programmes related to the Accounting and Auditing Organization for Islamic Financial Institutions standards in various jurisdictions, especially in markets new to Islamic banking and finance.”