Latest news with #USD10
BusinessToday
5 days ago
- Business
- BusinessToday
Islamic Liquidity Management Gaining Momentum, But market Fragmentation Persist: Fitch
Fitch Ratings building at Canary Wharf - LONDON/ENGLAND FEBRUARY 23, 2016 Islamic liquidity management instruments (ILMI) are gradually evolving across key Islamic finance markets including the GCC and Malaysia, but regulatory inconsistencies and divergent sharia interpretations continue to hinder their development, according to Fitch Ratings' Islamic Finance Survey 2025. The survey, which included responses from over 220 market participants, identified liquidity management and funding constraints as the most pressing challenges facing Islamic financial institutions (IFIs). While efforts to strengthen the ILMI ecosystem are underway, fragmentation between even the most advanced Islamic finance jurisdictions remains a core issue. Growing Regulatory Initiatives Show Promise Fitch highlights a number of recent regulatory initiatives that are improving the ILMI landscape: Bank Negara Malaysia (BNM) introduced the Islamic Collateralised Funding Policy Document in 2024, which spurred a threefold rise in Islamic interbank repo transactions to approximately USD10 billion. in 2024, which spurred a threefold rise in Islamic interbank repo transactions to approximately USD10 billion. In the United Arab Emirates, the central bank launched an overnight murabaha liquidity facility and is developing Sustainable Islamic M-Bills that could act as eligible collateral. The Central Bank of Bahrain launched a sharia-compliant commodity murabaha facility in 2024. Despite these gains, the Islamic interbank and repo markets remain shallow compared to their conventional counterparts. Shortage of Sukuk a Key Concern Government sukuk issuance plays a crucial role in helping Islamic banks park surplus funds in high-quality liquid assets (HQLA). However, 68% of respondents cited a lack of sukuk availability or variety as a key investment concern, while 59% pointed to liquidity challenges as a constraint. Several countries with active Islamic finance sectors — including Bangladesh, Nigeria, Egypt, Maldives, and Iraq — either do not issue sukuk or do so irregularly. In Kuwait, however, new legislation allowing government borrowing could pave the way for sovereign sukuk issuance for the first time since 2017. To address the scarcity of short-term sukuk, the International Islamic Liquidity Management Corporation (IILM) increased its sukuk issuance programme to USD6 billion in 2024, up from USD4 billion, in response to rising demand. These instruments are rated 'F1sf', offering a secure avenue for short-term liquidity management. Sharia Divergence and Regulatory Limits One of the primary barriers to ILMI standardisation is divergent sharia interpretations across jurisdictions. Fitch notes that in some cases, Islamic banks within the GCC cannot transact with each other due to sharia compliance conflicts, and even less so with conventional banks. For example: In Malaysia, BNM's Shariah Advisory Council (SAC) in 2024 barred Islamic financial institutions from transferring funds to conventional banks unless it is certain the funds will not be used in non-sharia-compliant activities. Omani regulations similarly prevent Islamic banks from placing funds with conventional institutions. Moreover, GCC-based Islamic banks often avoid investing in Malaysian government sukuk due to concerns over murabaha-based tradability restrictions and currency risk. In response, BNM's SAC approved the use of wakalah-based contracts in 2024 to address these concerns and broaden investor appeal. Digital Technologies Hold Potential but Adoption Is Nascent Fitch also sees potential in the digitalisation of liquidity management, with technologies such as tokenisation, blockchain-based repos, smart contracts, and AI-driven operations offering the promise of real-time settlement, enhanced transparency, and fractional ownership. However, adoption across Islamic banks remains at an early stage, and substantial investment and collaboration are required to bring these technologies to scale. Stable Outlook for Fitch-Rated Islamic Banks Despite the liquidity management challenges, most Fitch-rated Islamic banks remain investment-grade, particularly in the GCC. In many cases, their Issuer Default Ratings are supported by sovereign backing, contributing to stable liquidity profiles. While Islamic liquidity management is making notable strides, especially in Malaysia and the UAE, the lack of market standardisation, sharia fragmentation, and limited sukuk supply continue to restrain sector-wide advancement. Enhanced regulatory coordination, innovation in short-term instruments, and digital adoption will be key to unlocking the full potential of Islamic liquidity markets in the years ahead. Related
The Sun
6 days ago
- Business
- The Sun
Powering a greener future: MIDA and ACWA Power launch RM42.5 billion partnership
KUALA LUMPUR: ACWA Power, the world's largest private water desalination company, a leader in energy transition and first mover into green hydrogen, announced comprehensive partnerships with Malaysian government agencies and key entities at the sidelines of the ASEAN-GCC Summit. The centrepiece agreement, a Memorandum of Understanding (MOU) with Malaysian Investment Development Authority (MIDA), will facilitate strategic investment projects in clean energy infrastructure across Malaysia, targeting 12.5 GW of capacity by 2040 with an estimated investment value of RM42.5 billion (USD10 billion). The collaboration includes additional strategic agreements with TNB Power Generation Sdn. Bhd., UEM Lestra Berhad, and Terengganu Incorporated Sdn. Bhd., creating a powerful alliance that combines Malaysia's innovative ecosystem with Saudi Arabia's energy transition expertise. The partnership focuses on advancing renewable energy, green hydrogen, and advanced water solutions, aligning with both Malaysia's National Energy Transition Roadmap (NETR) and Saudi Vision 2030's climate leadership objectives. The MOU exchange was witnessed by YAB Datuk Seri Haji Fadillah bin Haji Yusof Malaysia's Deputy Prime Minister II and the Minister of Energy Transition and Water Transformation; YB Senator Tengku Datuk Seri Utama Zafrul Aziz, Malaysia's Minister of Investment, Trade & Industry (MITI), Mr. Abdullah Bin Zarah, Saudi Arabia's Deputy Minister for Economic and Development Affairs; and Ms Sara Al-Sayed, Saudi Arabia's Deputy Minister of International Relations at the Saudi Ministry of Investment. Minister of MITI, Tengku Zafrul said 'We welcome this USD10-billion collaboration between MIDA and ACWA Power Company which supports the objectives of our New Industrial Master Plan 2030 and National Energy Transition Roadmap, as Malaysia charts its way to achieving energy security and energy transition, especially for its industries, as well as the country's Net Zero goal by 2050.' Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, shared his vision for the project, 'This partnership marks a defining moment in Malaysia's green energy journey, positioning us as Southeast Asia's premier destination for sustainable investments. With ACWA Power's global expertise and our National Energy Transition Roadmap as our compass, we're not just attracting investments – we're architecting Malaysia's future as a clean energy powerhouse.' 'Through this collaboration, we're demonstrating how international partnerships, such as the one with ACWA Power, can fast-track our transition to a low-carbon economy while creating high-skilled jobs and driving technological innovation in Malaysia's renewable energy sector,' he added. Marco Arcelli, Chief Executive Officer of ACWA Power, said, 'This strategic agreement with MIDA, represent a significant milestone in ACWA Power's expansion in Southeast Asia and reflects our commitment in supporting Malaysia and the broader ASEAN region's energy transition towards a sustainable and low-carbon future. By combining our global expertise in renewables, desalination, and green hydrogen with the local knowledge of our Malaysian partners, we are not only accelerating the deployment of clean energy solutions but also fostering technology transfer, job creation, and long-term economic growth and social well-being of the local community.' Malaysia's supportive green technology incentives, namely the Green Investment Tax Allowance (GITA) are structured through a tiered and outcome-based approach, to cater to the needs of green industries such as solar and green hydrogen. MIDA will facilitate ACWA Power's proposed investments to ensure alignment with the New Investment Policy and energy transition goals, working closely with the Ministry of Energy Transition and Water Transformation (PETRA) and the Energy Commission (EC). In 2024, Malaysia marked a significant milestone with RM20.8 billion in approved green investments, spanning seven (7) levers across the manufacturing and services sectors. These investments, comprising 943 projects, are projected to create 8,413 new jobs, with green mobility, circular economy and renewable energy among the leading sectors. ACWA Power brings significant expertise to these projects, leveraging its global projects value portfolio of USD107.5 billion across 14 countries. This expansion marks a significant milestone in the company's commitment to driving energy transition through strategic partnerships and innovative technology.
The Sun
6 days ago
- Business
- The Sun
ACWA Power to invest RM42.5 billion in Malaysia green energy
KUALA LUMPUR: ACWA Power, the world's largest private water desalination company, a leader in energy transition and first mover into green hydrogen, announced comprehensive partnerships with Malaysian government agencies and key entities at the sidelines of the ASEAN-GCC Summit. The centrepiece agreement, a Memorandum of Understanding (MOU) with Malaysian Investment Development Authority (MIDA), will facilitate strategic investment projects in clean energy infrastructure across Malaysia, targeting 12.5 GW of capacity by 2040 with an estimated investment value of RM42.5 billion (USD10 billion). The collaboration includes additional strategic agreements with TNB Power Generation Sdn. Bhd., UEM Lestra Berhad, and Terengganu Incorporated Sdn. Bhd., creating a powerful alliance that combines Malaysia's innovative ecosystem with Saudi Arabia's energy transition expertise. The partnership focuses on advancing renewable energy, green hydrogen, and advanced water solutions, aligning with both Malaysia's National Energy Transition Roadmap (NETR) and Saudi Vision 2030's climate leadership objectives. The MOU exchange was witnessed by YAB Datuk Seri Haji Fadillah bin Haji Yusof Malaysia's Deputy Prime Minister II and the Minister of Energy Transition and Water Transformation; YB Senator Tengku Datuk Seri Utama Zafrul Aziz, Malaysia's Minister of Investment, Trade & Industry (MITI), Mr. Abdullah Bin Zarah, Saudi Arabia's Deputy Minister for Economic and Development Affairs; and Ms Sara Al-Sayed, Saudi Arabia's Deputy Minister of International Relations at the Saudi Ministry of Investment. Minister of MITI, Tengku Zafrul said 'We welcome this USD10-billion collaboration between MIDA and ACWA Power Company which supports the objectives of our New Industrial Master Plan 2030 and National Energy Transition Roadmap, as Malaysia charts its way to achieving energy security and energy transition, especially for its industries, as well as the country's Net Zero goal by 2050.' Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, shared his vision for the project, 'This partnership marks a defining moment in Malaysia's green energy journey, positioning us as Southeast Asia's premier destination for sustainable investments. With ACWA Power's global expertise and our National Energy Transition Roadmap as our compass, we're not just attracting investments – we're architecting Malaysia's future as a clean energy powerhouse.' 'Through this collaboration, we're demonstrating how international partnerships, such as the one with ACWA Power, can fast-track our transition to a low-carbon economy while creating high-skilled jobs and driving technological innovation in Malaysia's renewable energy sector,' he added. Marco Arcelli, Chief Executive Officer of ACWA Power, said, 'This strategic agreement with MIDA, represent a significant milestone in ACWA Power's expansion in Southeast Asia and reflects our commitment in supporting Malaysia and the broader ASEAN region's energy transition towards a sustainable and low-carbon future. By combining our global expertise in renewables, desalination, and green hydrogen with the local knowledge of our Malaysian partners, we are not only accelerating the deployment of clean energy solutions but also fostering technology transfer, job creation, and long-term economic growth and social well-being of the local community.' Malaysia's supportive green technology incentives, namely the Green Investment Tax Allowance (GITA) are structured through a tiered and outcome-based approach, to cater to the needs of green industries such as solar and green hydrogen. MIDA will facilitate ACWA Power's proposed investments to ensure alignment with the New Investment Policy and energy transition goals, working closely with the Ministry of Energy Transition and Water Transformation (PETRA) and the Energy Commission (EC). In 2024, Malaysia marked a significant milestone with RM20.8 billion in approved green investments, spanning seven (7) levers across the manufacturing and services sectors. These investments, comprising 943 projects, are projected to create 8,413 new jobs, with green mobility, circular economy and renewable energy among the leading sectors. ACWA Power brings significant expertise to these projects, leveraging its global projects value portfolio of USD107.5 billion across 14 countries. This expansion marks a significant milestone in the company's commitment to driving energy transition through strategic partnerships and innovative technology.
Barnama
6 days ago
- Business
- Barnama
Powering A Greener Future: MIDA And ACWA Power Launch USD10-billion Partnership
KUALA LUMPUR, MALAYSIA, May 28 (Bernama) -- ACWA Power, the world's largest private water desalination company, a leader in energy transition and first mover into green hydrogen, announced comprehensive partnerships with Malaysian government agencies and key entities at the sidelines of the ASEAN-GCC Summit. The centrepiece agreement, a Memorandum of Understanding (MOU) with Malaysian Investment Development Authority (MIDA), will facilitate strategic investment projects in clean energy infrastructure across Malaysia, targeting 12.5 GW of capacity by 2040 with an estimated investment value of USD10 billion. The collaboration includes additional strategic agreements with TNB Power Generation Sdn. Bhd., UEM Lestra Berhad, and Terengganu Incorporated Sdn. Bhd., creating a powerful alliance that combines Malaysia's innovative ecosystem with Saudi Arabia's energy transition expertise. The partnership focuses on advancing renewable energy, green hydrogen, and advanced water solutions, aligning with both Malaysia's National Energy Transition Roadmap (NETR) and Saudi Vision 2030's climate leadership objectives.
Tahya Masr
22-05-2025
- Business
- Tahya Masr
ITIDA Launches 47th Round of Start IT Incubation Program with New Incentives to Boost Startup Readiness
The Technology Innovation and Entrepreneurship Center (TIEC), an affiliate of the Information Technology Industry Development Agency (ITIDA), has announced the launch of the 47th round of its Start IT incubation program. Applications are open until May 24 , targeting early-stage startups with innovative ideas and ICT-based prototypes to help them transform their concepts into scalable and growth-ready startups. In line with its continued efforts to empower the entrepreneurial ecosystem, TIEC has unveiled an enhanced package of incubation benefits for this round. Key updates include a significant increase in the financial and in-kind support, reaching EGP 480,000 up from EGP 180,000, providing startups with stronger capabilities to execute development and scaling phases more efficiently. Additionally, cloud support from Amazon Web Services (AWS) has doubled to USD10,000 , reflecting TIEC's strategy to accelerate cloud readiness and adoption among startups by enabling access to cutting-edge infrastructure and services. This round also introduces the exclusive Start IT Perks platform, offering participants special discounts and benefits from TIEC partners, including InterAct and These partnerships provide startups with access to advanced technical tools and applications that enhance operational efficiency and foster business growth. To address talent acquisition challenges faced by early-stage ventures, the program now includes dedicated recruitment support through collaborations with specialized platforms such as Talents Arena , Sprints , and Techie Matters , enabling startups to build skilled and professional teams. Further, in response to the growing demand for AI-driven innovation, the new package features specialized support in Artificial Intelligence , including training programs and personalized consultancy sessions with experts. This is aligned with Egypt's digital transformation priorities and aims to raise AI readiness across the local startup ecosystem. 'The launch of the new round of the Start IT incubation program—enhanced with an expanded benefits package from our Technology Innovation and Entrepreneurship Center (TIEC)—reflects our continued commitment to supporting Egypt's tech startups innovation-driven entrepreneurship,' said Eng. Ahmed El-Zaher, CEO of ITIDA. 'Entrepreneurship plays a pivotal role in accelerating economic growth and driving innovation, and ITIDA remains firmly focused on developing custom-tailored programs and initiatives that address the needs of startups and strengthen Egypt's entrepreneurship ecosystem at every stage.' Startups applying to the program will be assessed based on a set of technical criteria. Eligible projects must offer practical solutions to existing or anticipated market challenges and be backed by a functional ICT-based prototype. Projects should leverage technology either as a core product or as an enabling component of an innovative service. Key selection criteria also include economic viability, sustainability potential, scalability, and the ability to attract investment. Projects must be led by dedicated entrepreneurs fully committed to developing their ventures. Applications from teams with non-dedicated undergraduate students or projects incubated concurrently elsewhere will not be considered. Start IT is one of Egypt's leading startup support programs in the ICT sector, delivered quarterly by TIEC. Accepted startups benefit from a 12-month incubation period at TIEC centers across the country. These centers provide fully equipped workspaces, business and technical consulting, software and hardware support, and marketing services. Project evaluation considers several key factors, including product or service uniqueness, market analysis, competitive advantage, prototype maturity, and founding team expertise. Established in September 2010, the Technology Innovation and Entrepreneurship Center (TIEC) has played a pivotal role in promoting innovation and technology-driven entrepreneurship across Egypt. Through its comprehensive capacity-building programs, incubation services, and strategic initiatives, TIEC contributes to positioning Egypt as a regional hub for innovation and digital entrepreneurship.
