Financial regulatory liberalization took the limelight, even as a slew of deals and offerings were unveiled, over the last month across the Islamic capital landscape.
GCC financial market authorities approved the long-awaited fund passporting framework, to be implemented in 2025. Bank Negara Malaysia is to allow multilateral development banks and development financial institutions to issue local currency ringgit-denominated debt securities and provide ringgit financing in Malaysia.
The Saudi Capital Market Authority (CMA) is conducting its largest reform of the Sukuk and debt instruments market and issued draft regulations on opening investment accounts for various categories of investors.
Pakistan’s Shariah compliant investment landscape is changing as Islamic banking outfits need to distribute higher profit on deposits and will also lose the minimum deposit rate shelter for institutional savings – lifting a key restriction on conventional financial operations.
Apart from proposing a new Islamic Financial Services Act to consolidate all relevant provisions into one piece of legislation, the Securities and Exchange Commission of Pakistan made compliance a fiduciary responsibility for modarabas directors ahead of external Shariah audits for the period ending on or after the 30th June 2025.
Maldives is reportedly working on a debt-for-nature swap with The Nature Conservancy to secure funds for its US$500 million Sukuk dues. Labuan’s Islamic Digital Asset Center, launched in 2022, is projected to achieve US$1 billion in Shariah and ESG-compliant digital assets by the end of 2024.
IPOs and fund offerings
A Shariah IPO was launched for OQ Base Industries – the sole integrated producer of methanol, ammonia and LPG products in Oman – while Delivery Hero parent firm, Talabat Holding, launched its IPO for listing on the Dubai Financial Market.
Noor Takaful is mulling a listing on the Nigerian stock exchange and the Dubai Financial Market collaboration with Al Maryah Community Bank, IPO Upgrade service, provides investors with additional leverage for selected IPOs.
Singapore’s agribusiness White Lion Foods issued to investors a Sukuk variant – an Islamic Profit Participating Note – under the Cordoba Capital Markets Jersey program.
Korea Investment Securities Indonesia’s subsidiary launched the KISI Global Sharia Transformative Technology Equity Fund USD and a Shariah compliant equity income and growth fund was launched by Hong Leong Asset Management in Malaysia, which also saw the launch of the Maybank Islamic Strategic Income Fund.
SICO launched a Bahrain-domiciled US$50 million Turkish Shariah opportunities fund and SNB Capital’s Saudi Nomu Market Fund provides retail investors with access to the Nomu parallel market, while an Oman ministry launched the Ishraq Endowment Investment Fund.
EFG Hermes’ private equity arm launched a US$300 million Saudi Education Fund to build an institutional K-12 operator in Saudi Arabia. Rikaz, SEDCO Capital and Mashaal Abdullah Al Rajhi Group are establishing a real estate investment fund.
The Saudi CMA approved the public offering of several funds – Kamco Freestyle Saudi Equity Fund (Shariah), Kamco SAR Murabha Fund, Artal MENA Fund, Yaqeen Opportunistic Fund, Riyad Monthly Distributions Multi Asset Fund plus the Albilad S&P Saudi Equity ETF.
Aviva launched a new Shariah lifestyle investment strategy to include a suite of funds for pensions. Nomo bank offers SPVs for UK property purchases by GCC clients.
Deals and partnerships
Canada’s Assad Wealth Management launched Shariah compliant group retirement services which includes the Halal Group’s products. Manzil Wealth Platform launched a comprehensive Halal wealth management solution in Canada after acquiring US fintech Aghaz and Canadian Islamic Wealth.
Qatar Development Bank announced a strategic investment in Shariah compliant fintech Wahed for an undisclosed amount. ASB Capital is opening in the Dubai International Financial Centre with assets under management worth US$4.5 billion. Abu Dhabi’s sovereign wealth fund Mubadala Investment’s all-cash takeover will delist Canadian asset manager CI Financial from the Toronto Stock Exchange.
GFH Financial Group acquired purpose-built student housing assets in the US and negotiating to buy Ithmaar Holding’s financing and investment portfolios. A Gulf Investment House unit offered to purchase a 54.85% stake in The Energy House Holding Company while Kuwait Finance House (KFH) is exiting.
Singapore’s DBS Bank is reportedly looking to expand into Malaysia and may be buying KFH’s Malaysian retail banking assets worth more than US$500 million. The Joint Italian Arab Chamber of Commerce is helping Italian SMEs gain access to Shariah compliant capital markets.
Alternate investments
UK’s Record Financial Group partnered with Islamic investment platform OWI Group to launch the Deep Tier Supply Chain Finance platform with a target of US$1 billion in initial commitments. Shariah compliant decentralized finance protocol, inshAllah, launched Ethereum staking service Goldsand. Abu Dhabi Islamic Bank will test fractional Sukuk offerings to retail investors.
Takaful solutions provider, Takadao, partnered with HASAN.VC to expand access to Shariah compliant blockchain financial products for private investors. Malaysia’s Cradle Fund signed with digital securities exchange platform Kapital DX to offer start-ups greater flexibility in choosing funding options.
Indonesia’s URUN-RI enabled foreign retail investment in its Shariah securities crowdfunding platform while UAE’s Taqwa Invest platform partnered with Enlightened Minds Investments. UOB Asset Management is offering its unit trust funds via a Shariah compliant investment feature on the Boost eWallet app.
Webull Malaysia introduced dual banking options – allowing deposits to be transferred in from either an Islamic or conventional bank account. Al Salam Bank introduced its new ‘Workspaces’ portal to support single person companies, family offices and more. KIB Invest was launched to provide Shariah investment solutions for long-term wealth creation and growth.
