Latest news with #Islamic-compliant
New Straits Times
3 days ago
- Business
- New Straits Times
Bank Islam stands alone as finance sector lags in Syariah compliance
KUALA LUMPUR: Banking and finance remain the least syariah-compliant sector on Bursa Malaysia, with only five counters meeting the criteria set by the syariah Advisory Council (SAC) of the Securities Commission (SC). In its latest biannual review, the SC said just five out of 38 financial services firms, or 13 per cent, are classified as syariah-compliant, with Bank Islam Malaysia Bhd being the only bank among them. The other four are Bursa Malaysia Bhd, MBSB Bhd, RCE Capital Bhd and Syarikat Takaful Malaysia Keluarga Bhd, a reminder that Islamic-compliant players in the finance space remain few and far between. It is worth noting that MBSB, formerly Malaysia Building Society Bhd, is the parent company of the non-listed MBSB Bank Bhd. The May 2025 update, which takes effect today, also saw nine companies dropped from the syariah-compliant list, including Sarawak Cable Bhd, MAG Holdings Bhd and GuocoLand (Malaysia) Bhd. Others removed are Carzo Holdings Bhd, Rhong Khen International Bhd, TP Tec Holding Bhd, VETECE Holdings Bhd, Vsolar Group Bhd and newly listed Saliran Group Bhd, which made its debut on March 13. "These refer to securities which were earlier classified as syariah-compliant but due to certain factors such as changes in the companies' business operations and financial positions, are subsequently reclassified as syariah non-compliant," the SC said. In light of this, investors holding such securities have been advised to dispose of them if the market price on the effective date is equal to or higher than the original investment cost. "Any dividends received up to the effective date and capital gains arising from the disposal of syariah non-compliant securities on the effective date can be kept by the investors," it added. However, the SC noted that any dividends or gains received after that must be channelled to baitulmal or charitable bodies. Meanwhile, 41 new companies have been added to the syariah-compliant list, spanning sectors such as healthcare, property, plantations and logistics. Among the newly classified stocks are Apex Healthcare Bhd, IOI Properties Group Bhd, PLS Plantations Bhd, CJ Century Logistics Holdings Bhd, RichTech Digital Bhd, Oriental Kopi Holdings Bhd and Eco-Shop Marketing Bhd. The SAC said the list is based on audited financial statements issued between Oct 1, 2024, and March 31, 2025. Companies are assessed using a two-tier quantitative screening approach that involves business activity benchmarks and financial ratios, alongside qualitative evaluations of public perception from an Islamic perspective. With the latest changes, 850 out of 1,056 listed companies are now deemed syariah-compliant, maintaining a compliance rate of 80 per cent. Construction and energy remain the most syariah-compliant sectors, with compliance rates of 96 per cent and 93 per cent respectively. Transportation and logistics follow at 91 per cent. The SC updates the list twice a year, in May and November.
Tahya Masr
14-04-2025
- Business
- Tahya Masr
"United Pharmacies" and The Saudi Awwal Bank Announce the First Off-Balance Sheet Islamic Digital Supply Chain Finance Deal
In a groundbreaking and unprecedented move in the Saudi market, United Pharmacies Group, one of the Kingdom's leading pharmacy chains, has announced the signing of a strategic partnership agreement with The Saudi Awwal Bank to execute the first comprehensive Islamic-compliant, off-balance sheet digital supply chain finance transaction. This milestone represents a pivotal step in the digital transformation journey of the financial and pharmaceutical sectors in the Kingdom, aligning with the objectives of Saudi Vision 2030. The agreement aims to deliver advanced financing solutions that enable strategic suppliers of the pharmacy chain to benefit from fully automated, discounted early payment mechanisms. This enhances liquidity management and streamlines financial operations for all parties involved. Commenting on the occasion, Khaled Yassin, CEO of United Pharmacies, stated: "We are proud to sign this agreement, which represents a strategic move towards enhancing our financial operations and strengthening our relationships with partners. This initiative will significantly improve our liquidity management, allowing us to increase operational efficiency and support our expansion plans with greater flexibility and effectiveness." He added: "At United Pharmaceuticals, we continue to focus on financial innovation as a means to drive growth and deliver added value to both our supply chain partners and our customers alike." Dr. Mohamed Abdel Wahab, CFO of United Pharmacies, also commented: "This agreement offers innovative financial solutions that help reduce operational complexities, enhance the efficiency of payment processes, and enable effective working capital management. We are pleased with this partnership with The Saudi Awwal Bank, which reflects our ongoing commitment to financial innovation and supports our continuous efforts to deliver real value to our suppliers and customers." For his part, Yasser Al-Barrak, Chief Executive Officer of Corporate and Institutional Banking at The Saudi Awwal Bank, stated: "We are delighted to be at the forefront of providing innovative, Shariah-compliant solutions that meet the needs of our clients. This transaction demonstrates our firm commitment to strengthening the Kingdom's financial ecosystem in line with Vision 2030, and to supporting national companies in their journey toward expansion and leadership." Al-Barrak further added: "The integration of advanced technology with Islamic finance solutions represents a significant step toward empowering businesses and driving economic growth in the Kingdom. We are proud to have developed our digital supply chain platform to offer automated discounting solutions that efficiently support both Islamic and conventional operations." This initiative comes as The Saudi Awwal Bank continues to enhance its digital supply chain platform, adding new features that allow corporate partners to easily upload payment files, benefit from fully automated registration and approval processes, and directly generate Shariah-compliant sales contracts.
Zawya
11-03-2025
- Business
- Zawya
Sharia assurance for the lending hub's P2P model
Riyadh – The Lending Hub, a pioneering peer-to-peer crowdfunding platform, announces that its business model has been reviewed and certified as Sharia-compliant by Shariyah Review Bureau (SRB). This certification marks a significant milestone in The Lending Hub's commitment to providing Islamic-compliant financial solutions for finance applicants and investors in Saudi Arabia. The peer-to-peer lending industry in Saudi Arabia is experiencing rapid growth, driven by the Kingdom's Vision 2030 and the Financial Sector Development Program's focus on fintech innovation. With increased demand for alternative financing solutions, The Lending Hub addresses a crucial market need by facilitating financial transactions in a Sharia-compliant manner, connecting investors and finance applicants in a seamless and secure manner. The platform offers financing solutions that simplify access to capital while providing investors with a transparent, risk-conscious investment channel. Commenting on the certification, Fahad Al Mudaiheem, CEO of The Lending Hub, stated, 'Receiving Sharia certification from SRB is a critical achievement for us. This validation strengthens our mission to provide financial solutions that align with Islamic finance principles, ensuring trust, integrity, and compliance for all our users.' With this Sharia certification, The Lending Hub is set to redefine the crowdfunding and alternative financing landscape in Saudi Arabia. The platform's compliance with Islamic financial guidelines ensures that investors and finance applicants can engage with confidence, knowing that their financial transactions adhere to Sharia principles. Shariyah Review Bureau, regulated by the Central Bank of Bahrain, is a global leader in Sharia advisory and certification services. The firm has built a strong reputation for enabling financial institutions and fintech companies to navigate and maintain compliance with Islamic finance standards. Speaking about the certification, Yasser S. Dahlawi, CEO of Shariyah Review Bureau, remarked, 'We are pleased to certify The Lending Hub's P2P financing model as Sharia-compliant. As the fintech ecosystem continues to evolve, we are dedicated to supporting companies like The Lending Hub in ensuring their solutions adhere to Islamic financial principles while fostering financial innovation.' For more information you can visit The Lending Hub's website: For all Shari'a Advisory related queries, you can contact hashim@
