The Shariah investment landscape in the UK got a big boost over the past week while Pakistan and Saudi Arabia issued roadmaps for respective capital market development targets to be achieved by December 2026.
UK-based Cur8 Capital launched its new US dollar-denominated income fund with exposure to fully Shariah compliant, asset-backed financing and leasing facilities in collaterized debt financing and working capital solutions in Uzbekistan and other countries in the CIS, the UAE, the UK and the US.
Legal & General launched a new Islamic investment proposition by offering six Shariah funds, handled by HSBC Asset Management, UK aimed at the direct contributions pensions sector.
The Burj Clean Energy Modaraba initial offering on the 25th and 26th September 2024, enroute to a Growth Enterprise Market (GEM) listing, features 10 million Modaraba Certificates priced at PKR10 (US$0.04) each. This Shariah compliant offering is to be GEM Pakistan’s first listed renewable energy investment fund.
The Saudi Capital Market Authority (CMA) approved AlBilad Investment Company’s request to offer Albilad CSOP MSCI Hong Kong China Equity ETF units on the Saudi Stock Exchange.
For alternative assets, Shariah compliant token Palcoin is targeting a US$10 billion market capitalization by 2030. The token is also aiming for listings at major exchanges as part of its roadmap. Kafaa Capital received a financial technology experimental permit to test offerings and investments in debt instruments issued by the Saudi CMA.
Separately, Kenya’s Safaricom Investment Co-operative is going fully Shariah, catering to the increasing number of Muslims seeking ethical investment avenues. Saturna Capital incorporated a range of Shariah compliant mutual funds into its Shifa Health Savings Account, which is designed to help accountholders save and pay for qualified medical expenses.
Major deals included Areeb Capital acquiring a 32 million square meter plot of land in Dammam for SAR12 billion (US$3.19 billion), funded via Islamic financing secured from a consortium of Saudi banks. Dubai-based fund manager Rasmala bought the 60,000 square feet Quora Retail Park in Doncaster, UK via its Shariah compliant Long Income Fund.
On the regulatory front, separate capital market development roadmaps for the 2024-2026 period were released for both Pakistan and Saudi Arabia. Malaysia’s Bursa Carbon Exchange offered daily trading in renewable energy certificates as of the 9th September 2024.
The Securities and Exchange Commission of Pakistan (SECP) formed a new Islamic capital market development committee with a three-year mandate. Effective the 1st October 2024, several Qatar indices to be revised are the QE Index, the QE Al Rayan Islamic Index, the QE All Share Index and the Consumer Goods and Services Index.
To potentially address continuing concerns, India is ready to offer the Maldives emergency financial support to help ease the latter’s financial woes as its first Sukuk default looms, reported Bloomberg
AAOIFI approved the issuance of the Financial Accounting Standard Discussion Paper ‘Accounting and Financial Reporting Approach for Tawarruq and Commodity Murabaha’.
