Major developments on the regulatory front claimed centerstage in October, accompanied by the announcement of two IPOs and fund launches.
The 26th Constitutional Amendment Bill passed by the Pakistan Senate sets 2028 for the end of Riba practice. The 2025 Malaysian Budget allots RM100 million (US$23.21 million) in matching funds to phase out dependency on Shariah compliance products similar to conventional counterparts.
Indonesia’s Financial Services Authority, or Otoritas Jasa Keuangan (OJK), introduced three new guidelines to cover Mudarabah financing products, Shariah Restricted Investment Account (SRIA) based on Mudarabah Muqayyadah contracts and Cash Waqf Linked Deposit implementations.
The Saudi Capital Market Authority (CMA) announced draft amendments to its investment funds regulation. AAOIFI approved in principle the issuance of exposure draft of Financial Accounting Standard on ‘Istisna Based Development Contracts’.
Regulatory initiatives
Abu Dhabi Securities Exchange partnered with ADIB Securities for the development of a new digital investors onboarding platform. Malaysian government agency Bumiputera Agenda Steering Unit (Teraju) is extending funds to P2P digital platforms to boost access to short-term financing.
Malaysian sovereign fund Khazanah Nasional is aiming to draw more cashflows into domestic and emerging fund managers with potential to be regional champions in its venture capital ecosystem.
The Indonesia Stock Exchange is developing an Alternative Market Organizing System as an electronic platform to facilitate the trading of debt and Sukuk securities in the secondary market.
Abu Dhabi Securities Exchange launched the FTSE ADX 15 Islamic Index, tracking 15 high-performing Shariah compliant counters. A quarterly review of the Philippines Stock Exchange Shariah compliant stocks saw the list rising to 56 with the addition of eight and the removal of one counter.
INCEIF University and Ficus Capital collaborated to launch a new ESG-i assessment platform. Haqq forged a partnership with National Committee for Sharia Economy and Finance to harness blockchain technology and Shariah compliant financial services for businesses, investors and communities across Indonesia.
Enforcement actions saw OJK revoke Investree’s business license due to a violation of minimum equity requirements and other regulations. The Central Bank of the UAE prohibited an unnamed Takaful operator in the UAE from issuing or concluding new motor and health insurance contracts due to its failure to meet the minimum capital requirement.
The UAE Virtual Assets Regulatory Authority issued fines plus cease-and-desist orders on seven unlicensed firms operating within its jurisdiction for breaching marketing regulations.
Major deals
Sovereign wealth fund Bahrain Mumtalakat Holding is selling full ownership of sportscar marquee McLaren Group’s business and a non-controlling stake in to Abu Dhabi government-owned CYVN Holdings.
Indonesia’s Hajj Financial Management (BPKH) forged a partnership with Sidra Capital to explore Shariah compliant real estate investment opportunities in Saudi Arabia’s hospitality sector.
Saudi investment firm anb capital will own and develop a land area of 1.8 million square meters which spans across three plots in Al Rimal, Al Qadisiyah and Al Janadriyah east of Riyadh.
MEFIC Capital signed a swap deal in Dubai to acquire preferred shares in owner Downtown Bay Developments. TECOM Group acquired a commercial asset in Dubai Internet City from Emirates REIT.
Properties in the Fulton market of Chicago secured a Shariah compliant junior funding worth US$94.7 million, with Kamco Invest acting as the strategic adviser. Shariah compliant fintech company Alif secured a US$5million credit line from Cur8 Capital, a UK Islamic finance investment fund.
Funds and offerings
The Shariah compliant IPO by Lulu Retail Holdings, enroute to a Abu Dhabi Securities Exchange listing, will see 2.58 billion shares offered by this supermarket chain’s current sole shareholder Lulu International Holdings, representing a 25% stake in the firm.
Petroleum giant Gulf International Services announced plans to list its captive wholly-owned subsidiary Al Koot Insurance and Reinsurance Company on the Qatar Stock Exchange.
Saudi trading platform Awaed inked a deal to enable its clients to invest in Investcorp’s Saudi Pre-IPO Growth Fund.
The Saudi CMA approved the request to offer SAB Invest Hang Seng Hong Kong exchange-traded fund (ETF) units on the Saudi Stock Exchange and also approved Al Riyad Capital’s public offering of the Al Riyad SAR Liquidity Fund.
The Norrenberger Islamic Fund and the Norrenberger Turbo Fund listings brought the total to 22 mutual funds listed on the Nigerian Exchange. Burj Clean Energy Modaraba became the first Shariah compliant green energy fund to be listed on the Pakistan Stock Exchange. The Satrix MSCI World Islamic Feeder ETF was listed on the Johannesburg Stock Exchange.
PMB Investment and Hong Kong-based Newton Hexon Capital launched the private Shariah compliant Newton Hexon Asia Growth Fund to focus on green sectors. HSBC Indonesia and Batavia Prosperindo Aset Manajemen launched the Batavia India Sharia Equity USD mutual fund.
Albilad Capital closed the initial offering period of its Albilad CSOP MSCI Hong Kong China Equity ETF at SAR4.49 billion (US$1.19 billion). First Abu Dhabi Bank Asset Management raised US$200 million of assets under management (AuM) through its new Fixed Maturity Portfolio.
Saudi real estate developer Cenomi Centers partnered with GIB Capital to create a Shariah compliant closed real estate investment fund. Gulf Islamic Investments got a US$100 million boost from Saudi institution the Al Nahdi family office and the Sharjah Investment and Development Authority (Shurooq).
Alternate assets and fintech
GreenX approved the listing of KSGEMS, a security token of investment-grade sapphire gemstones. GCC investment company GAEA bought Bentinck House in Fitzrovia at London’s West End.
Cryptocurrency exchange Bybit is pursuing a regulatory license in Austria, after securing one from the Astana Financial Services Authority in Kazakhstan. Digital asset infrastructure provider Ripple secured an in-principle approval from the Dubai Financial Services Authority.
The Iran Center for Exchange of Currency & Gold held its 20th gold coin auction. The Turkish government collected 19.74 kg gold for lease certificates on the 7th October 2024 from institutional investors.
Malaysian digital assets platform KLDX and Singapore-based AsiaNext inked a memorandum of understanding to collaborate on cross-border digital asset listings, liquidity sharing and joint product development.
Bahrain’s Esterad Bank announced its successful exit from its Sakani real estate investment, which comprised multiple residential and real estate assets across the GCC while investment firm Blacksand acquired Signature London, The J Marylebone Hotel.
Blade Labs is in the Qatar regulatory sandbox to offer a blockchain-powered platform for tokenized Murabahah contracts. A similar initiative is being explored by Firoza Finance, a joint venture between Dubai-based Liberty Finance and HAQQ Network. Malaysia’s Islamic equity crowdfunding platform AMB Connect was launched.
Ark Proptech investment platform in Saudi Arabia focused on real estate and technology secured a US$1 million pre-seed funding, led by Core Vision Investment, to develop its Shariah compliant utility contract trading solutions.
The Saudi Central Bank granted a license to consumer microfinance-focused fintech Bouaba Tshil, bringing the number of licensed companies in the same category to six, and the number of licensed financing companies in the Kingdom to 61. Egypt’s Financial Regulatory Authority issued licences for GB Capital to offer additional services, including venture capital operations.
Significant moves
Maybank appointed Michael Oh-Lau as CEO and Ariff Azhar Mohamed as deputy CEO of Maybank Investment Bank, effective the 28th October 2024. Abu Dhabi Islamic Bank appointed Mohammad Miladi as its new head of trade product, replacing Mohamed Rashad.
FWD Group Malaysia announced Aman Chowla as the new CEO of FWD Takaful and Mak See Sen as the new CEO of FWD Insurance. Alan Higgins was appointed group chief investment officer at Kuwait Finance House, based in Bahrain at the Ahli United Bank head office. Indonesia’s newly-elected president Prabowo Subianto reappointed Sri Mulyani Indrawati as finance minister.
Arcapita founding partner and deputy CEO Hisham Al Raee is taking over as CEO from 2025, replacing Atif Abdulmalik.
Other developments
The Maldives government avoided a potential sovereign Sukuk default with the settlement of its semi-annual coupon payment for the US$500 million senior unsecured Sukuk issued in 2021.
Dr Abdul Halim Ismail – former first managing director of Bank Islam, Malaysia’s pioneer Islamic bank, who was often dubbed ‘Father of Malaysian Islamic Banking’ – passed away at the age of 85.
