Catalytic efforts to grow the Islamic investment landscape have largely come from government authorities, with the latest initiatives seen in Indonesia, Pakistan and Saudi Arabia.
Otoritas Jasa Keuangan launched a roadmap for the development and strengthening of financial technology innovation, digital financial assets and crypto assets between 2024 and 2028 in Indonesia.
The Central Directorate of National Savings of Pakistan set a target of PKR170 billion (US$610.41 million) for Islamic finance investments the current fiscal year.
The issuance of Sukuk Waqf Retail series SWR005 offering till the 9th October 2024 reflects the local government’s commitment to support the National Cash Waqf Movement, assisting in the development of social investment and the development of productive Waqf in Indonesia.
A public-private partnership by Saudi Arabia’s General Authority for Awqaf with Sumou Real Estate aims to launch several endowment development initiatives worth SAR500 million (US$133.08 million) and also contribute to sustainable development.
The past week also saw several Shariah funds announced with the Saudi Capital Market Authority approving the public offering of Derayah Opportunistic Saudi Equity Fund and also approving the Ehsan Waqf Fund by SNB Capital.
An open-ended Shariah compliant investment fund launched by SEDCO Capital will focus on investments in IPOs and rights issues of companies listed on the Saudi stock market.
Kenanga Investors launched the Islamic Global Responsible Strategies Fund – investing in Chicago Global Responsible Strategies that leverages on artificial intelligence to identify financial data, market trends, social sentiment and alternative data sources while benchmarked against the MSCI ACWI Islamic Index.
The Alpha Halal Fund became the first Shariah investment scheme in Tanzania, aiming to raise TZS10 billion (US$3.69 million) during its first two initial sales months. The fund will allocate 70% of its investments to Sukuk, with the remaining 30% invested in various foreign funds.
Other major developments include Bangladesh Bank Governor Abdur Rouf Talukder resigning two years before the end of his term, amid government leadership changes in that country.
Boston-originated State Street has achieved Shariah compliance for its global custody and fund administration services. The Shariah certification underpins the firm’s Southeast Asia growth strategy – especially where it has been operating in Malaysia since 1996 and Brunei since 2011.
Bursa Malaysia said market capitalization of its Shariah compliant securities grew by 19.7% year-on-year to RM1.3 trillion (US$292.98 billion), making up 65.2% of the total market value on the Malaysian bourse.
