Global Islamic funds valuation remained well above the US$400 billion mark for the second straight week as another two fund management firms and three new funds were added to the IFN Investor Funds Database, amid major policy developments in Saudi Arabia and Malaysia to attract a more diversified group of investors seeking high-grade securities.
The Saudi Capital Market Authority (CMA) approved major regulatory enhancements for the Kingdom’s Sukuk and debt instruments market to simplify requirements for issuing debt instruments – which include allowing the country’s development funds, development banks and sovereign funds to issue debt under an exempt offering category.
Fitch Ratings welcomed new Bank Negara Malaysia policies to allow multilateral development banks and development financial institutions to issue local currency ringgit-denominated debt securities and provide ringgit financing in Malaysia.
AAOIFI approved in principle the issuance of the Financial Accounting Standard (FAS) 50 ‘Financial Reporting for Islamic Investment Institutions (Including Investment Funds)’ which supersedes present FAS 14 ‘Investment Funds’.
Major deals include IsDB investing in Kazakhstan’s Phase 1 of the Climate Resilient Water Resources Development Project. The US$1.32 billion initiative, backed by US$1.15 billion in IsDB funding, aims to propel Kazakhstan’s water infrastructure while strengthening its resilience to climate change.
IsDB also allotted US$10 million for the World Health Organization to implement the Health Impact Investment Platform – which aims to reinforce the health system, especially in low- and middle-income countries and in underserved communities.
Ladun Investment Company and Musharaka Capital are establishing a real estate development fund for a residential and hotel project within the Jabal Omar development in Makkah. Sama Investment Group is launching a Canalside residential scheme in Birmingham’s Digbeth Quarter. GFH Financial Group and Infracorp joined the launch of Harbour Heights Kempinski Hotel and Residences.
Agribusiness White Lion Foods launched an Islamic Profit Participating Note issuance under Cordoba Capital Markets Jersey as part of a working capital investment program to facilitate growth within the global trade finance and supply chain sectors.
Shariah compliant cross border bank Nomo launched special purpose vehicles (SPVs) to support its GCC clients investing in UK buy-to-let properties – to provide benefits for estate planning and be more tax efficient – helping to address some of the barriers these GCC clients might face.
Emirates NBD launched its bespoke Next Generation programme, within the private banking unit, for the wealth transfer needs of affluent clientele. Warba Bank launched its ‘Royal Banking’ segment account for high-net-worth customers’ investment needs.
Albilad Investment Company received CMA approval to offer units of the Albilad S&P Saudi Equity ETF on the Saudi Stock Exchange. The Saudi Central Bank granted a license to Mal for Finance Aggregator Service. A new Shariah compliant equity income and growth fund was launched by Hong Leong Asset Management.
Noor Takaful is mulling a listing on the Nigerian stock exchange, aiming to be the first Islamic insurance firm listing. Kuwait International Bank launched KIB Invest to meet growing global demand for Shariah compliant products for long-term wealth creation and growth.
Other significant developments include Neuberger Berman appointing Khalid Albdah as head of Middle East, North Africa and New Markets, effective January 2025. Kuwait Finance House appointed as directors Naser Abdullateef Abdullah Al-Rodhan, representing the Kuwait Investment Authority, and Dalai Mahmoud Abdulkhaleq AlNouri, representing the alliance of Public Authority for Minors Affairs and Kuwait Awqaf Public Foundation.
