Pakistan and Malaysia set out bold policy pathways toward deeper embracing of Islamic finance as key national economic platforms amid a plethora of Shariah assets-related regulatory approvals across several nations.
The 26th Constitutional Amendment Bill passed by the Pakistan Senate sets 1st January 2028 for the end of the Riba financial practice, cementing the five-year interest-free banking mandate for that country set by a 2022 Federal Shariat Court ruling.
Malaysia’s 2025 Budget seeks to spur Islamic financial product innovations and phase out dependency on Shariah compliance products that are similar to conventional counterparts with significant cash allocations and tax breaks.
To draw more cashflows into domestic and emerging fund managers with potential to be regional champions in the venture capital ecosystem, Malaysian sovereign fund Khazanah Nasional is launching two initiatives come November 2024.
Government agency Bumiputera Agenda Steering Unit launched its Islamic Working Capital Project Financing program to offer Malaysia’s small businesses – via P2P digital platforms – access to short-term financing, backed by due invoices, as working capital
Regulatory approvals saw the Saudi Central Bank grant a license to consumer microfinance-focused fintech Bouaba Tshil – bringing the number of such licensed firms to six, and the number of licensed financing companies in the Kingdom to 61. Separately, the Saudi Capital Market Authority granted a license to Tharawat Tuwaiq Financial to conduct advising activity in the securities business.
Egypt’s Financial Regulatory Authority granted extra licenses to GB Capital for Financial Investments to offer additional services, including venture capital and the establishment of companies that issue or increase their capital through securities.
For alternate assets, Shariah compliant digital assets exchange GreenX approved the listing of KSGEMS, a security token of investment-grade sapphire gemstones offered by KS Digital.
UAE-based cryptocurrency exchange Bybit is pursuing a regulatory license in Austria, after it recently secured a license from the Astana Financial Services Authority in Kazakhstan.
Jadwa Investment, manager of the Jadwa REIT Saudi Fund, signed a new agreement with Sareed Development and Real Estate Investment and announced the expiry of its management contract with NMR Real Estate for the Riyadh Boulevard Complex. GCC investment company GAEA bought Bentinck House in Fitzrovia at London’s West End.
Bahrain-based Esterad Bank announced a successful exit from its Sakani real estate investment, in line with the bank’s efforts to restructure and sell legacy assets. Riyadh Development Company was appointed by anb capital to be a REIT fund developer for a land area of 1.8 million square meters across three plots in Al Rimal, Al Qadisiyah and Al Janadriyah east of Riyadh.
Other developments include the International Islamic Financial Market and the International Swaps and Derivatives Association jointly announcing the publication of revised versions of the Islamic Profit Rate Swap (Single Sale and Two Sale) and the Islamic Cross-Currency Swap product confirmation templates.
Bank Islam Malaysia announced the demise of its first management director Dr Abdul Halim Ismail, aged 85, who was dubbed ‘Father of Malaysian Islamic Banking’.
