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‘Hibah’ best tool to resolve Muslim inheritance issues: Experts

When Muslims fail to draw up a will outlining the proportion of distribution of their assets to their heirs, families resort to faraid, the Islamic law of inheritance, which can lead to disputes. According to sociologist Prof Datuk Dr Mohammad Shatar Sabran, many Malays are still not aware of the importance of naming the heirs to their estate beforehand. The concept of hibah would be an alternative and more effective way. It refers to the transfer of legal and beneficial ownership of assets from the donor to the beneficiary on a voluntary basis, with the proportion and distribution to heirs and non-heirs being determined by the donor. Money left in accounts without the hibah instrument is categorised as part of the estate of the deceased account holder and, as such, the heir will have to go through a lengthy application process to claim the money.

The Majority of #Indonesia’s Shariah-Compliant Fintech Firms are Using the P2P Business Model

The steady rise and adoption in Sharia Fintech has transformed Indonesia’s trillion dollar economy. The majority of Shariah-compliant Fintechs in Indonesia use the P2P model, which usually works well with the profit-sharing model. Sharia Fintechs tend to focus on initiatives that support low-income and underserved segments of the population. Dody Dedy Waluyo, deputy governor of Indonesia’s central bank, says that there should be even more demand for halal or Islamic financial products. He notes that around 40% of the country’s GDP is generated from the Sharia economy.

Shariah-compliant #gold trading platform to launch in #UK

A digital gold-trading platform compliant with Islamic finance norms is about to get launched in the UK. Minted is a start-up domiciled in London that aims at making gold trading simple, secure and affordable. Minted launched the beta version of its platform in early May and plans to introduce a full-fledged version in mid-June and a mobile app by the end of July. With a total of £1mn in seed funding, of which it already received half from a venture capital investor, Minted plans to expand to Germany and France and, later on, to Turkey, the US, South Asia and Africa.

Dubai Islamic Bank gives initial guidance for long 5-year dollar #sukuk - document

Dubai Islamic Bank (DIB) gave initial price guidance of around 280 basis points over midswaps for a planned issuance of long five-year dollar sukuk. On Monday, DIB hired a group of 10 banks to arrange a global investor call for the deal, which is expected to close on Tuesday.

‘It’s beyond our dreams to have Islamic banks all over the world’ – Shaikh Saleh Kamel, 1941 – May 18, 2020

Shaikh Saleh Kamel, founder of Al Baraka Banking Group, passed away on May 18. He was one of the pioneers of Islamic banking, having set up one of the first of the modern-day Shariah-compliant banks in the late 1970s that became the Al Baraka Banking Group today. Shaikh Saleh was also President of the Islamic Chamber of Commerce, Industry and Agriculture, the Jeddah Chamber of Commerce and Industry, and he served as the Chair of the General Council for Islamic Banks and Financial Institutions. Shaikh Saleh said his satellite and internet channel, which he opened in 1998 and that largely presents religious content, was one of the things in his life he was most proud of.

Dantata, Dangote et Indimi : qui sont les oligarques derrière la banque islamique Jaiz du milliardaire Umaru Mutallab ?

Le vétéran de la banque et ancien ministre Umaru Mutallab s'est reconverti dans la finance islamique avec d'autres notables et magnats du nord du pays, tels qu'Aminu Dantata, Aliko Dangote et Muhammed Indimi. Ils sont soutenus par la banque publique saoudienne Islamic Development Bank.

#Egypt Faisal Islamic Bank gets FRA's approval for capital raise

The Egyptian Financial Regulatory Authority (FRA) approved a request from Faisal Islamic Bank of Egypt to publish the disclosure form to proceed with its capital increase procedures. The disclosure form included the board of directors’ approval to raise the company’s issued capital by $66.02 million to $506.2 million from $440.19 million. The capital increase will be carried out by issuing 66.03 million shares at a nominal value of $1 or its equivalent in the Egyptian pound per share through a 0.149-for-one bonus issue.

Al Baraka Bank appoints new chairman

Al Baraka Banking Group announced the appointment of Abdullah Saleh Kamel as the board's new chairman. Previously, the chairman position was held by the late Sheikh Saleh Abdullah Kamel, the group's founder who passed away last month. Kamel served as the board's vice chairman and chairman of the executive committee for several years, contributing to the group's expansion strategies.

#Indonesia government partners with biggest Islamic organization to set up 10,000 grocery stores

Indonesia’s Ministry for Economic Affairs is teaming up with the country’s largest Islamic organization Nahdlatul Ulama (NU) to set up 10,000 grocery stores in the next 4 years. The ministry’s vice deputy Gede Edy Prasetya estimates that it will cost around 40 million rupiah to establish a new grocery store under the new partnership. Amid the COVID-19 outbreak this year, the government is seeking new potential eligible beneficiaries for its micro credit schemes. This year, it aims to disburse 190 trillion rupiah ($13.6 billion) as part of the scheme. It has already disbursed 34.2 trillion rupiah in loans as at the end of April, with a non-performing loan rate of 1.23%.

Wahed Raises $25 million

Wahed raised $25 million in venture funding with proceeds being funneled into ensuring people can invest their money into a diversified portfolio consisting of stocks, commodities, real estate and sukuk. Since launching in 2017, Wahed was recently awarded the first RoboAdvisory permit by the financial regulator, the U.K.'s Capital Markets Authority, to launch its platform in Saudi Arabia. Wahed’s foray into Malaysia in 2019 bolstered their global presence, and the fintech firm now serves over 100,000 clients globally. Wahed believes that they are paving the way for ethical investment in Islamic finance and showing the world how underserved the Muslim market is.

DIFC invests in four FinTech start-ups through $100m fund

Dubai International Financial Centre (DIFC) said it invested in four innovative FinTech start-ups on Monday. The companies receiving funding are: Sarwa, a roboadvisory wealth management firm; FlexxPay, a cloud-based B2B employee benefits platform and two financial services platforms for migrant workers, Now Money and Go Rise. DIFC CEO Arif Amiri said the investments strengthened the free zone’s position as one of the world’s top 10 FinTech hubs. DIFC has rolled out a number of changes in recent months to attract top financial firms and strengthen its credentials.

#UAE and #Saudi women control assets worth $326bln - BCG

Women’s wealth in the Middle East is expected to grow to $1.1 trillion from the current $786 billion during the 2019-2023 period. As of 2019, more than 40% of women’s wealth in the Middle East is concentrated in the UAE and Saudi Arabia where women control assets worth $102 billion and $224 billion. According to Boston Consulting Group (BCG), women’s wealth is projected to grow at a compound annual growth rate (CAGR) of 8.3% to $140 billion in the UAE and of 5.1% to $273 billion in Saudi Arabia by 2023. Women are likely to set the region’s wealth management trend, if asset managers target this market segment as a business opportunity and personalise their approach. Women are more likely than men to invest on the basis of their values, favouring funds that perform well but also create a positive impact, as opposed to investing solely for performance.

UAE- Islamic finance can heal Covid pain

Islamic finance can play an important role in navigating the economic turbulence brought by the Covid-19 crisis on individual and corporate levels. It is believed that the four Islamic finance instruments of Qard Hassana, social sukuk, waqf and zakat in particular can help core Islamic countries, banks and corporates navigate the current tough situation. The Covid-19 crisis has significantly slowed the core Islamic finance economies. According to Mohamed Damak, primary credit analyst at S & P Global Ratings, social instruments could be used directly by the Islamic finance industry to support households by compensating them for lost income, and by providing access to basic services, such as education and health care.

#Indonesia’s BNI Syariah to expand international banking services

Indonesia’s state-owned BNI Syariah plans to add overseas representative offices to run trade finance, and financial institutions and remittance services. The Islamic bank will leverage the branch offices of its parent company, Bank Negara Indonesia, in Singapore, Tokyo, Seoul, Hong Kong, London and New York. The bank can now expand its international banking services after it received a non-cash capital injection of 255 billion rupiah ($17.5 million) in March. This moved it up to Tier 3, for banks holding core capital of 5 trillion rupiah (around $342.5 million) to 30 trillion rupiah. The lender is also eyeing markets outside its current geographies, such as Malaysia, Saudi Arabia and Taiwan. Alongside expanding its international presence, the bank is mitigating downside risks by optimizing its digital banking channels.

Meezan Bank set to benefit from the government’s expansion of Islamic debt issuance

As Pakistan gears up to borrow as much as Rs750 billion in Islamic bonds from the country’s financial system, one bank is set to benefit more than all others: Meezan Bank. The forecast for the net interest margin for Meezan Bank is 5.43% in 2020 and 4.72% in 2021. The key cause of the bank’s growth is its rapid expansion of its branch network, coupled with the fact that its brand name and credibility in Islamic finance mean that the bank rarely ever struggles to attract deposits. Over the past two years, Meezan Bank has added 159 branches, which represents a 21% increase over that period.

International Islamic Trade Finance Corporation Signs COVID-19 Emergency Food Package Relief Program for Republic of #Kyrgyzstan

The International Islamic Trade Finance Corporation has signed an agreement to support the provision of a food relief program for the most vulnerable people in Kyrgyzstan during the outbreak of the new coronavirus (COVID-19). The support will provide immediate relief to around 2,000 families who are most affected by the health and economic consequences of the pandemic. The humanitarian intervention will be implemented by ITFC's partner institution, Micro Credit Company M Bulak of Kyrgyzstan.

Emirate of Sharjah hires banks for #sukuk that could go up to $1 billion

Sharjah has hired banks to arrange the issuance of seven-year U.S. dollar denominated sukuk. HSBC was hired as global coordinator for the planned transaction and is joined by Bank ABC, Dubai Islamic Bank, Gulf International Bank, Mashreqbank and Sharjah Islamic Bank as joint lead managers and bookrunners. The emirate will hold a call with investors on Monday and a benchmark sukuk issuance may follow, subject to market conditions. Benchmark bonds are generally meant to be over $500 million, but a source close to the deal said the transaction could range between $750 million and $1 billion.

Banque Zitouna fête son 10ème anniversaire

Fondée en 2010, Banque Zitouna s’est rapidement développée en peu d’années s’imposant ainsi en tant que banque islamique entièrement évolutive en Tunisie. Le long de ses 10 années d’existence, Banque Zitouna n’a cessé de se réinventer toujours en accord avec ses valeurs de Banque islamique, en créant de la proximité avec ses clients et ses territoires, vecteur principal de sa réussite. En mars 2019, le Groupe Majda Tunisia a racheté les parts de l’Etat dans le capital de la banque. Banque Zitouna envisage également une expansion à l’international notamment en Afrique, au Maghreb et en Europe, outre la mise en place d’un plan de transformation digitale et le développement de nouvelles activités à travers la création de nouvelles filiales.

REMINDER: FGN Ijara #Sukuk Bond auction?closes on 2nd June 2020

The Nigerian Debt Management Office has reminded the general public that the offer for subscription to the N150 billion FGN Ijara Sukuk Bond will close on Tuesday June 2nd, 2020. Proceeds from the Ijara Sukuk Bond auction will be used solely for the construction and rehabilitation of key roads across the six geopolitical zones of the country.

Bank of Sharjah to manage, arrange Dh2B Sharjah government #sukuk

The Sharjah government has raised Dh2 billion through sukuk to support its economy, corporates, SMEs, individuals and banking sector during the coronavirus crisis. Bank of Sharjah was appointed as sole lead manager and arranger for the issuance. The certificates will pay a profit rate of 1.5 per cent and mature in May 2021. Sharjah also listed $200 million sukuk on Nasdaq Dubai in March 2020. S&P Global Ratings lowered Sharjah's outlook to negative last month and affirmed its long-term rating at BBB, the second-lowest investment grade.

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