Home » Islamic finance
Tag:

Islamic finance

FinanceLatest News

IsDBI, INCEIF University Launch Islamic Finance & Sustainable Development Journal

by Madaline Dunn
written by Madaline Dunn

The Islamic Development Bank Institute (IsDBI) and the International Centre for Education in Islamic Finance (INCEIF University) have launched an Islamic finance and sustainable development journal.

Previously named the “ISRA International Journal of Islamic Finance” (IJIF), the new “International Journal of Islamic Finance and Sustainable Development” (IJIFSD) has been rebranded to expand its scope from Islamic economics to incorporate sustainable development.

The IJIFSD will spotlight emerging trends in green finance, impact investing, and financial inclusion and aims to provide a platform for scholars, policymakers, regulators, and practitioners to share insights, while emphasising practical solutions for sustainable infrastructure development.

Professor Dato’ Dr Mohd Azmi Omar, the President and Chief Executive Officer of INCEIF University, said that the IsDBI partnership to establish the IJIFSD demonstrates the “growing recognition” of Islamic finance for sustainable development.

According to the CEO, the IJIFSD seeks to bridge the gap between academic insights and practical implementation to converge Islamic finance principles with sustainable development practices.

“This collaboration with INCEIF University reflects our commitment to fostering innovative research for real-world impact with the vision of shaping the future of ethical finance and contributing to sustainable economic development across the Islamic world and beyond,” said Dr Sami Al-Suwailem, Acting Director General of the IsDBI.

0 comments
0 FacebookTwitterPinterestEmail
FinanceLatest News

ESG Sukuk Issuance to Slowdown in 3Q24, Before Rise in 4Q24–1Q25

by Madaline Dunn
written by Madaline Dunn

Global outstanding ESG sukuk increased in the first half of the year, rising to 41 per cent year-over-year and reaching USD43 billion at end-1H24, according to Fitch Ratings.

In the Islamic finance core markets (GCC countries, Malaysia, Indonesia, Turkiye and Pakistan), ESG sukuk issuance in 1H24 rose 13 per cent year-over-year to USD6.3 billion.

That said, ESG bond issuance declined by 34 per cent year-over-year to USD7.8 billion.

Outstanding ESG sukuk represent a sizeable share (12.9 per cent) of global outstanding sukuk (hard currencies), it shared.

Sukuk had a sizeable share of the hard-currency ESG debt mix in Indonesia (2Q24: 59 per cent), Malaysia (52 per cent) and Saudi Arabia (48 per cent), with the rest in bonds.

Slower ESG sukuk issuance is now expected in 3Q24 before the market regains momentum over 4Q24–1Q25, according to the credit rating agency.

“Almost all (99%) of Fitch-rated ESG sukuk are investment-grade, with issuers on Stable Outlooks,” said Bashar Al Natoor, Global Head of Islamic Finance at Fitch Ratings.

Al Natoor added that the “promising medium-term potential” for ESG debt issuance is fuelled by governments’ “increasing commitment to sustainability” and issuers’ aims to meet ESG mandates and funding diversification plans.

Qatar Central Bank, for example, announced an ESG and sustainability strategy for the financial sector, which could support ESG sukuk and bond development, it said.

Meanwhile, Saudi Arabia, Malaysia, UAE, and Oman have previously launched ESG frameworks and initiatives.

ESG sukuk in GCC countries reached USD18.5 billion outstanding, or 43 per cent of global ESG sukuk.

Saudi Arabia accounts for the largest portion (42.7 per cent) of Fitch-rated ESG sukuk, with the UAE coming in second at 33.8 per cent.

In the UAE, ESG sukuk has been issued by Emirates Islamic Bank (USD0.75 billion sukuk, rated ‘A+’) and Aldar Investment Properties (USD0.5 billion), while in Saudi Arabia, Al Rajhi Banking and Investment Corporation issued USD1 billion sustainable sukuk.

“However, the ESG debt segment is at a nascent stage compared to developed markets,” Al Natoor noted.

0 comments
0 FacebookTwitterPinterestEmail
FinanceLatest News

BIBF Enters Strategic Partnership to Expand Islamic Finance Education in Algeria

by Madaline Dunn
written by Madaline Dunn

The Bahrain Institute of Banking and Finance (BIBF) has entered into a strategic partnership with INSAG Business School, and Financia Business School, to launch its flagship programme “Advanced Diploma in Islamic Finance” (ADIF) in Algeria, to provide Algerian professionals and students with the opportunity to obtain a qualification in Islamic finance.

Dr. Ahmed Al-Shaikh, CEO of the BIBF, said that the collaboration aims to both enhance the skills and knowledge of Algerian finance professionals and contribute to the overall development of the Islamic finance industry in the country through other various professional programmes and courses.

Nassim Lounes, CEO of INSAG Business School, commented: “We are excited to work with the BIBF and the department of Islamic finance of Financia Business School to deliver a transformative educational experience for Algerian finance professionals.”

Kader Merbouh from the Department of Islamic Finance of Financia Business School said: “ADIF and Executive MBA Islamic Finance INSAG/Financia Business School. We are proud to be part of this ambitious endeavour to advance Islamic finance education in Algeria, by combining our expertise with the BIBF and INSAG Business School, we are confident that we can provide a truly exceptional learning experience for the next generation of Islamic finance leaders in the region.”

0 comments
0 FacebookTwitterPinterestEmail
FinanceLatest News

Emirates Islamic Lists Debut Sustainability Sukuk on Nasdaq

by Madaline Dunn
written by Madaline Dunn

UAE Islamic financial institution, Emirates Islamic, has listed its debut five-year sustainability sukuk issuance on Nasdaq. The issuance raised USD 750 million as part of the USD 2.5 billion Certificate Issuance Programme. This brings the total value of sukuk listings by Emirates Islamic on the exchange to USD 2.02 billion through four listings. 

It was shared that the issuance saw 44 per cent of orders coming from outside of the MENA region.

The order book exceeded USD 2.10 billion, an oversubscription of 2.8 times. This allowed the bank to tighten the expected profit rate to 5.431 per cent per annum, at a spread of 100 basis points over 5-year US Treasuries. 

Further, Emirates Islamic noted that the sustainability sukuk was issued in line with Emirates NBD Group’s Sustainable Finance Framework and in compliance with Shariah rules and principles as determined by Emirates Islamic’s Internal Shariah Supervision Committee.

Hesham Abdulla Al Qassim, Chairman, Emirates Islamic and Vice Chairman and Managing Director of Emirates NBD, commented: “The listing of our first Sustainability Sukuk on Nasdaq Dubai represents our dedication to be the pioneering Shariah-compliant bank for customers, people, and communities, as well as our continuing commitment to fostering sustainability. We are proud to partner with Nasdaq Dubai to bringing to market a wide range of financial products to our customers, helping to foster a future built on sustainable growth in accordance with Islamic values. Emirates Islamic is committed to reducing its environmental impact, in line with the UAE Net Zero by 2050.”

Hamed Ali, CEO of Nasdaq Dubai and DFM, added: “Nasdaq Dubai welcomes Emirates Islamic’s debut Sustainability Sukuk, marking another milestone in our strong partnership. Such innovative listings not only enhance our role as the leading global hub for Islamic finance but also reinforces our commitment to driving sustainable investments and fostering a robust and diverse financial ecosystem.”

0 comments
0 FacebookTwitterPinterestEmail
FinanceLatest News

IsDBI, CIBAFI Partner to Advance Sustainable Development Through Islamic Finance

by Madaline Dunn
written by Madaline Dunn

The Islamic Development Bank Institute (IsDBI) and the General Council for Islamic Banks and Financial Institutions (CIBAFI) have signed a Grant Agreement for collaboration on advancing sustainable development through Islamic finance.

It was shared that the project will evaluate the economic progress of five select member countries of the Organization of Islamic Cooperation (OIC) in specific areas that are key in both Islamic finance and sustainable development.

Key areas of exploration include:

  • Climate change mitigation,
  • Women and youth empowerment initiatives,
  • Digitalisation advancements, and
  • Fostering financial inclusion.

The project will deliver comprehensive reports offering recommendations based on these countries’ experiences, serving as a roadmap for other OIC member countries.

It was shared that the project aims to raise global awareness about the role of Islamic finance in overcoming critical challenges and building resilient economies.

0 comments
0 FacebookTwitterPinterestEmail
Innovation & EducationLatest News

Bridging the Skills Gap: AlHuda CIBE Launches Talent Acquisition Platform

by Madaline Dunn
written by Madaline Dunn

AlHuda CIBE UAE, an Islamic Finance Advisory, consultancy, research, capacity building and Shariah services provider institution, has announced the launch of its Talent Acquisition Platform, which aims to bridge the skills gap in the Islamic Finance Industry.

Indeed, while the Islamic finance industry has witnessed significant growth in recent years, rapid expansion has exposed a gap in the talent pool. As a result, there is now a shortage of qualified professionals with the technical expertise and the requisite understanding of Islamic finance principles (Shariah).

AlHuda CIBE explained that the launch of the Talent Acquisition Platform aims to address this skills gap challenge by connecting the right talent with the right opportunities across the Islamic finance spectrum.

The platform reportedly encompasses the entire Islamic finance industry, including:
-Takaful (Islamic insurance),
-Ijarah (Islamic leasing),
-Sukuk (Islamic bonds),
-Islamic indices,
-Islamic mutual funds, and
-Mudarabah funds (profit-sharing investment partnerships).

Muhammad Zubair, CEO of AlHuda CIBE, commented: “We often see a situation where valuable expertise isn’t being utilized in the most effective way. This platform will ensure that the right qualified individuals, with both technical and Shariah knowledge, are placed in the right positions.”

0 comments
0 FacebookTwitterPinterestEmail
@2021 - All Right Reserved. Designed and Developed by PenciDesign