Regulatory matters attracted headlines over the past week, including a snafu by the Fatwa Center of the Spiritual Directorate of Uzbekistan.
The Eastern European center apologized on its official Telegram and withdrew its 3rd June 2024 Fatwa against cryptocurrency, stating it was released due to carelessness and technical reasons. The Uzbekistan center also stated that its research on cryptocurrencies is still ongoing.
Bahrain-based AAOIFI’s Governance and Ethics Board approved six governance standards (GSs): namely GS 18 ‘Shariah Decision-Making Process’, GS 1 (2024) ‘Shariah Governance Framework’, GS 19 ‘Shariah Supervisory Board: Appointment and Composition’, GS 20 ‘Shariah Supervisory Board: Functions and Operations’, GS 21 ‘Shariah Supervisory Board: Review and Report’ and GS 22 ‘Application of Shariah Governance Principles to Islamic Finance Subsidiaries / Associates’.
Meanwhile, the Shariah Advisory Council of Bank Negara Malaysia issued a ruling on Shariah parameters that shall be complied with by Islamic financial institutions in determining the permissibility of Transfer of Funds for Funding and Liquidity Risk Management from an Islamic Financial Institution to a Conventional Financial Institution. Also, the semi-annual review of the FTSE Bursa Malaysia Hijrah Shariah Index saw the entry of Inari Amertron, replacing Greatech Technology, as of the 24th June 2024.
Separately, the Financial Services Authority of Indonesia or Otoritas Jasa Keuangan issued two new guidelines to act as comprehensive references: the Shariah Banking Products and Activities Guidelines, and the Shariah Rural Banks Risk or Bank Pembiayaan Rakyat Syariah Management Guidelines. Further, the number of Shariah compliant stocks listed on the Indonesia Stock Exchange stood at 643 in the Sharia Stock Index as of the 31st May 2024.
On the investment front, Iran Farabourse launched a new local currency crowdfunding tool that brings together both retail and institutional players in the domestic capital market. Minister of Economic Affairs and Finance Ehsan Khandouzi also announced an increase in the crowdfunding ceiling to IRR500 trillion (US$11.86 billion) as of the 3rd June 2024.
The Pakistan Stock Exchange approved the listing of ABL Islamic Money Market Fund units, effective the 5th June 2024, while ADIB Securities, a Shariah compliant wholly-owned subsidiary of Abu Dhabi Islamic Bank (ADIB), launched a new digital onboarding platform allowing investors to sign up online.
Kenya’s Arvocap Asset Managers launched on the 3rd June 2024 two Shariah compliant funds: Global Sharia Equity Special Fund and Mabruk Sharia Special Fund. Indonesia’s influential Muslim NGO Muhammadiyah announced shifting some of its funds out of Bank Syariah Indonesia to minimize concentrated risks.
