Latest news with #Shariah
Business Recorder
17 hours ago
- Business
- Business Recorder
FBL and Fauree launch Islamic digital supply chain platform
KARACHI: Faysal Bank Limited (FBL), one of Pakistan's leading Islamic banks, has taken a groundbreaking step toward digital transformation in Islamic finance. In collaboration with fintech innovator Fauree, FBL has signed a Memorandum of Understanding (MoU) to develop and deploy a comprehensive Islamic Digital Supply Chain Finance (SCF) and Agri-Digitization ecosystem. The MoU was signed by Altaf Hussain Saqib, Head of Commercial Banking Small Business Enterprise (CBSME), Fleet & Agri, Faysal Bank Ltd., and Azhar Tasadduq, Co-Founder and CEO, Fauree. Commenting on the development, Yousaf Hussain, President & CEO, Faysal Bank said, 'As pioneers in Agri-Digitization within Pakistan's Islamic banking sector, this partnership reinforces our commitment to expand and enhance predictive, paperless Islamic financing solutions across Pakistan. With best-in-class technology embedded into our CBSME & Agri verticals, we are poised to offer innovative, real-time financing for crops, livestock, and supply chains, in line with Shariah principles.' Speaking on the occasion, Azhar Tasadduq, Co-Founder and CEO of Fauree, commented, 'This collaboration is a remarkable step forward in Pakistan's agricultural economics. The integration of an advanced digital platform with Faysal Bank's Islamic finance expertise is poised to establish Pakistan's first Shariah-compliant digital SCF ecosystem. By integrating a multi-product approach, we aim to digitize entire Agri-value chains and SME supply networks, from farm-level financing to working capital support for exporters.' Copyright Business Recorder, 2025
New Straits Times
2 days ago
- Business
- New Straits Times
CGS eyes regional growth in Islamic finance, eyes MENA expansion
KUALA LUMPUR: CGS International Securities Malaysia Sdn Bhd (CGS MY) is broadening its Islamic finance presence across the region, targeting markets such as Singapore, Indonesia, and eventually the Middle East and North Africa (MENA), with Dubai in its sights. According to head of Shariah services Rushdan Nadzir, navigating regulatory hurdles remains a challenge due to differing interpretations of Islamic finance, particularly in jurisdictions like Saudi Arabia and Indonesia, where structures like Tawarruq face tighter scrutiny. Nonetheless, CGS MY is pushing ahead with its expansion plans, with a strong focus on accelerating its Islamic finance growth in Indonesia. "We see from the movements during the pandemic and post-pandemic as well, and I guess the overall awareness around these Shariah products is needed. We want to provide access to ethical, high-yield investments that are scalable and rooted in compliance. Whether you are investing RM10 or RM100,000, there should be no trade-off between faith, function, and return," said Rushdan. CGS MY recently launched its first Islamic structured investment products—the Islamic equity-linked investment notes (Elin-i) and Islamic autocallable equity structured investment notes (Aesin-i)—designed for high-net-worth and institutional investors. Rushdan said the launch marked a strategic milestone in positioning Malaysia as a regional hub for Islamic financial innovation. "These structured products are a high-risk, high-return investment, with indicative returns ranging from potentially 8 to 15 per cent per annum. "As outlined in Bank Negara Malaysia's Financial Sector Blueprint 2022 to 2026, the launch supports CGS's position as a leading Islamic finance hub in Asean," he said, adding that these high-risk, high-return products offer potential annual returns of 8–15 per cent. Rushdan said that Malaysia's Islamic capital market is now valued at over RM2.6 trillion, accounting for 63 per cent of the total capital market, while the country also holds 36 per cent of the global sukuk market share as of end-2024. The firm noted that Shariah-compliant stocks have historically outperformed, particularly in Malaysia. "Although Shariah-compliant assets currently account for roughly 20 per cent of CGS MY's business, the segment is expanding rapidly. "CGS's Islamic share margin financing grew from zero to over RM100 million in just two years, and demand is also growing in futures, equity trading, and Islamic wealth management," he said. According to him, institutional clients, particularly fund managers with Islamic mandates, are increasingly conducting trades through Shariah-compliant brokers.
Gulf Today
3 days ago
- Business
- Gulf Today
UAE is a strategic priority, says Philippine official
An island-province in the Sulu archipelago of the Philippines is taking the lead as the next miracle in East Asia. This is Basilan, which, alongside Maguindanao, Lanao del Sur, Sulo and Tawi-Tawi comprise the 4.4 million-populated Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). Its main inhabitants are the indigenous Yakans, descendants of early Papuan settlers, that welcomed this year, the Shariah-compliant Sulo Barakah Ventures (SBV) 'for inclusive economic growth that can break cycles of intergenerational poverty and secure lasting peace.' Justine Lyris Bacay told Gulf Today that SBV 'adheres' to the globally-accepted standards of the 1991-established Bahrain-based not-for-profit organisation (NPO) Sharia Standards of the Accounting and Auditing Organisation for Islamic Financial Institutions: 'Our Sharia Supervisory Board ensures all investments comply with Islamic jurisprudence. While the specific external Shariah scholars or firms that will formally approve our compliance are part of our ongoing process as we complete local fundraising and plan the Abu Dhabi Fund for Development incorporation, our commitment to rigorous Shariah vetting is absolute.' 'Our commitment to Shariah compliance is fundamental. It is woven into the very fabric of our investment philosophy and operations. We ensure that every investment from foreign and domestic investors is halal, aligning with Islamic finance principles and our investors' values,' Bacay added. The World Economic Forum (WEF)-Maritime Southeast Asia Community champion/former Deloitte Central Europe risk consultant is the SBV chief operating officer. She and the other SBV officers were in the UAE recently. They presented their programme to Philippine Ambassador Alfonso Ferdinand Ver and Consul General in Dubai and the Northern Emirates Marford Angeles. The other SBV officials are board chairman Maria Antonia Odelia Arroyo, chief executive officer Mohammad Taha Basman II and chief economist Assad Baunto. Arroyo was a WEF 2015 Young Global Leader who advised the international organisation. into public-private organisation commitment, on responsible investing for the United Nations Sustainable Development Goals in 2022. She assisted in the poverty alleviation of 19,465 rice farmers through the Philippine investment company Ignite Impact Fund. Bangsamoro Investment Code co-author Basa, who, like Bacay is an Asian Institute of Management alumnus and through the NPO The Asia Foundation, led projects for the World Bank, United States Agency for International Development and the Australian Government-Department of Foreign Affairs and Trade. University of Oxford-Master in Economics degree holder Baunto used to be a World Bank and Asian Development Bank development economist. He has the most extensive work experience in the BARMM. 'The UAE is a strategic priority and a natural initial major stop. Primarily, we plan to incorporate our fund in the Abu Dhabi Global Market after local fundraising. The UAE is a leading Islamic finance hub with robust regulations and significant capital pools, making it an ideal gateway to engage broader Middle Eastern investors,' Bacay said. The SBV officers are optimistic that Basilan and the entire BARRM is the next progressive region 'in Southeast Asia's second fastest growing economy.' Examples given were the exodus of Southeast Asia's number one economy, Singapore, 'from fishing villages to global financial hub,' the 1950s underdeveloped tiny Taiwan to an industrialised nation, and the high-income South Korea, which, 70 years back, was a nearly deforested war-torn impoverished state. Bacay mentioned the 2019 local plebiscite that re-designed the once Autonomous Region in Muslim Mindanao into BARMM: 'This has provided political stability and institutional frameworks necessary for large-scale investments in its undervalued assets of rubber and seaweed production, marine diversity, first Islamic rural bank, Smart Battery Energy Storage System, renewable energy plant and ferry, broadband satellite internet, bio-processing company, and integrated mangrove mariculture and cultural experience.'
Arab News
3 days ago
- Business
- Arab News
ICIEC and Al-Baraka Islamic Bank Bahrain sign credit insurance policy
The Islamic Corporation for the Insurance of Investment and Export Credit, a Shariah-based multilateral insurer and member of the Islamic Development Bank Group, and Al-Baraka Islamic Bank Bahrain signed a documentary credit insurance policy. The policy will strengthen support for Shariah-compliant trade finance, enabling greater security and confidence in the international trade ecosystem. Under this partnership, ICIEC will provide insurance coverage for the confirmation of letters of credit issued by Al-Baraka Islamic Bank in connection with the import and export of eligible Shariah-compliant goods and services. This solution will help mitigate payment risks associated with cross-border trade while promoting sustainable growth in ICIEC's member states. CEO of ICIEC Dr. Khalid Khalafalla said: 'This strategic collaboration with Al-Baraka Islamic Bank reflects ICIEC's commitment to advancing intra-OIC trade and investment. By supporting Shariah-compliant trade finance through our documentary credit insurance policy, we are facilitating secure trade flows while empowering Islamic banks to broaden their offerings to clients.' CEO of Al-Baraka Islamic Bank Bahrain Dr. Adel Salem said: 'We are delighted to partner with ICIEC on this pioneering credit insurance policy, which empowers us to extend Shariah‑compliant trade finance to our clients, bolster Bahrain's role as a regional hub for Islamic banking, and stimulate sustainable economic growth across member states worldwide. This collaboration underscores our commitment to innovation and robust risk management, giving the businesses we serve greater confidence to expand in global markets.' The documentary credit insurance policy serves as a vital tool for Islamic banks, enhancing their ability to expand trade finance operations with reduced exposure to commercial and political risks. The policy also complements ICIEC's broader mandate to promote economic resilience, financial inclusion, and private sector development in member countries.
Malaysian Reserve
4 days ago
- Business
- Malaysian Reserve
Frozen inheritance assets in Malaysia surpass RM90b
UNCLAIMED or frozen inheritance assets in Malaysia have exceeded RM90 billion, despite ongoing fiscal reforms and economic recovery efforts. This reflects serious gaps in estate planning and inheritance management, with stagnant wealth preventing asset circulation, disrupting family investments and widening the economic divide across generations. Shariah lawyer Nurul Ai Li Baharuddin told Utusan Malaysia that the unclaimed assets consist of land, savings, shares and residential properties while many of which remain tied up for years due to unresolved claims. She said a significant number of these cases involve Muslim families, where heirs often delay or avoid initiating the legal process due to family disputes, lack of documentation and uncertainty around procedures. 'Delayed distribution of inheritance directly affects family welfare. Heirs are unable to live in, sell or leverage the assets for education, investment or business,' she said. In low-income households, the situation is more pressing, with rightful beneficiaries sometimes forced to rent or vacate homes owned by deceased family members due to administrative obstacles. The lack of awareness and planning through legal instruments such as wills or 'hibah' further contributes to the growing volume of unclaimed assets, especially when individuals die without formal inheritance documentation. Citing data from the Department of Shariah Judiciary Malaysia, Nurul Ai Li said over 70,000 unresolved cases related to Islamic inheritance have been recorded in Shariah courts nationwide over the past decade. These include cases involving 'faraid' distribution, small estate claims, and delayed execution of wills or hibah, often hindered by manpower shortages in the courts, high caseloads and heirs failing to attend proceedings. She noted that many heirs mistakenly assume that being named as a nominee gives them full ownership, when in fact nominees are responsible for managing and distributing the estate according to 'faraid' or mutual agreement. To address these challenges, Nurul Ai Li proposed a series of legal and administrative reforms, including the integration of jurisdictions across the Small Estate Office, civil courts and Shariah courts, an expanded role for AmanahRaya Bhd and the adoption of digital platforms such as e-Pusaka to streamline the inheritance claim process. — TMR
