As the year draws to a close, the global Islamic finance industry prepares for 2022: Nigeria is ready to issue more Sukuk and Australia might see its first Sukuk and Takaful products in the new year. Morocco has, meanwhile, jumpstarted its Takaful sector, with three insurers receiving their licenses for Islamic offerings. The Philippines signed an MoU with AAOIFI to potentially adopt its standards, and the UK welcomed two new Islamic products from investment platform Nester.
Islamic investors look into US
The US real estate market has attracted Islamic investors despite the Omicron COVID-19 variant, with the UAE’s Gulf Islamic Investment group investing US$100 million in assets in Virginia while GFH Financial Group and Wafra International jointly purchased US blue-chip logistics assets.
Nigeria’s Sukuk market gears up
In the latest episode of IFN Podcast, Dr Akeem Oyewale, CEO of Shariah compliant fund manager Marble Capital, spoke on Nigerian Sukuk issuances that can be expected in 2022, from both the government and private sector. Listen to the exclusive interview here.
Australia’s first Sukuk and Takaful
Ethical and Shariah compliant investment company Haven Wealth plans to launch Australia’s first Sukuk and Takaful products by the third quarter of 2022, CEO Nick Heuzenroeder told IFN. The Australian company had recently launched its first Islamic fund in September.
Other Sukuk updates
In Saudi Arabia, Saudi Real Estate Refinance Company issued a Sukuk paper worth SAR2 billion (US$532.59 million), backed by the government, to support the Kingdom’s housing market.
Malaysia’s Serba Dinamik Holdings has disclosed in a statement that it had defaulted on a coupon payment on its outstanding US$222 million Sukuk, only a few days after it had initially denied reports on the same. The Malaysian Rating Corporation had confirmed the missed payment and downgraded Serba Dinamik’s Sukuk program to ‘C IS’.
Oman International Development and Investment Company has received regulatory approval for the listing of its perpetual Sukuk worth OMR52 million (US$134.67 million) on the Muscat Stock Exchange. The company had previously announced its plans to privately place Sukuk worth the same to Jabreen International Development Company.
Shariah funding for Indonesian MSMEs
The Indonesian National Committee for Islamic Economy and Finance has amped up its support for the Shariah and MSME sectors, issuing official guidelines for its latest initiative: Shariah securities crowdfunding for MSMEs.
Morocco welcomes Takaful operators
The Supervisory Authority of Insurance and Social Welfare in Morocco has granted much-awaited Takaful licenses to three insurance operators in the country. Two more companies have applied for their Islamic insurance permits.
The General Council for Islamic Banks and Financial Institution has appointed Mohammed Kateeb as the co-chair of its Innovation and Technology Working Group for the year 2021-22. Mohammed was formerly the group chairman and CEO of Path Solutions and is currently president for the Middle East and Africa and global head of Islamic banking at Azentio.
Philippine central bank and AAOIFI sign MoU
The Bangko Sentral ng Pilipinas has signed an MoU with AAOIFI for the possible adoption of relevant AAOIFI standards by the country’s Islamic banking and finance industry, as well as cooperation in capacity-building and technical assistance.
UK’s new investment platform
Islamic peer-to-peer investment platform Nester, which is based in the UK, officially launched this week with two offerings: an investment product and a real estate financing solution for development projects.
Turkish banks’ ratings updated
Fitch has revised the outlooks on the long-term foreign currency issuer default ratings of state-owned Turkish Islamic banks Turkiye Emlak Katilim Bangkasi and Vakif Katilim Bankasi to negative from stable, mirroring the outlook on the sovereign.