Various perspectives on Sukuk investments were in the limelight last week while new Shariah funds emerged.
The Philippines is the latest nation, after Pakistan’s announcement a week earlier, to release tax guidance on Sukuk investments – with the Southeast Asian archipelago applying a higher flat rate on foreigners.
S&P Global Ratings joined the bandwagon in expressing concern over AAOIFI’s new Shariah Standard 62, projecting a possible reduction in Sukuk issuance volumes – due to the need for real transfer of underlying assets to investors.
Indonesian financing company Permodalan Nasional Madani scrapped the public offering of its shelf-registered Sukuk Mudarabah I PNM after failing to achieve its funding target of IDR6 trillion (US$370.58 million).
Funds-wise, the Atlas Islamic Cash Fund was listed on the Pakistan Stock Exchange. This open-ended mutual fund invests in Shariah compliant government securities, bank deposits and other short-term money market instruments. Shariah compliant Alkhabeer Diversified Income Traded Fund 2030 was listed on the Saudi Exchange.
Emerging Africa Asset Management launched Emerging Africa Halal Fund. The open-ended mutual fund invests in Shariah compliant financial instruments, including Nigerian sovereign Sukuk. Indonesia’s KISI Asset Management plans to launch a global Islamic mutual fund that invests in technology stocks, in sectors such as AI and semiconductors.
GreenX, with its parent Greenpro Capital, and Bank Islam Trust Labuan forged a partnership to promote Labuan as the main hub for the Islamic Digital Asset Centre for high-net-worth and potential clients while Maybank Investment Bank launched myImpact Invest for its customers to trade in ESG and Shariah compliant stocks.
On the regulations front, Kuwait’s Capital Market Authority is seeking public opinion on proposed enhancements on debt instruments offerings – including bonds, Sukuk and exchange-traded funds. The Shariah Advisory Council of Bank Negara Malaysia approved new features for the Sell and Buy Back Agreement – which include the introduction of margining, profit reinvestment and profit transfer.
