Realignments in Islamic investments are seeing alternate trajectories being created as strategies are tweaked to optimize the deployment of existing resources whilst also tapping new opportunities.
Among the most prominent would be Kuwait Finance House (KFH) selling via an off-market transaction valued at AED1.29 billion (US$352.33 million) last week its entire 18.8% stake in Sharjah Islamic Bank to its UAE origins – the Endowment of Sheikh Sultan bin Mohammed bin Saqer Al Qasimi, the Sharjah Social Security Fund and Sharjah Islamic Bank.
This sale follows KFH’s merger with Ahli United Bank-Kuwait, following its US$11.6 billion cross-border acquisition of Ahli United Bank-Bahrain in 2022. KFH also announced its exit from Malaysia earlier to focus on the GCC region.
Saudi Tadawul Group finalized the acquisition of a 32.6% stake in international commodities platform Dubai Mercantile Exchange – which is to be rebranded as the Gulf Mercantile Exchange.
The Securities Commission Malaysia launched GROWMatch as a matching initiative that allows agri-business entrepreneurs to showcase their projects. This initiative aims to address the financing gap faced by agri-businesses and promote sustainable growth in the sector by tapping into equity crowdfunding and peer-to-peer financing platforms.
New investment opportunities came with an open-ended Shariah compliant investment fund launched by SEDCO Capital, which will focus on investments in IPOs and rights issues of companies listed on the Saudi stock market.
As the SEDCO Capital IPO Fund has set its target on medium to long-term capital growth, it can also invest in Shariah compliant IPOs of REITs, Sukuk and money market instruments. The fund’s performance is benchmarked against the SEDCO Capital Total Return IPO Index.
Boubyan Capital secured a marketing license for a collective investment scheme established outside Kuwait, to market the shares of its Boubyan Islamic Leasing and Finance Fund in US dollars.
A key appointment announced last week is Ashraf Gomma Ali becoming chief Shariah and sustainability officer at Malaysia’s MBSB Group effective the 1st August 2024. He previously served as an advisor to the World Bank Group – IFC on Islamic banking matters.
