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Tuesday, 3 May 2016

Islamic finance & management events in Kuala Lumpur Malaysia

Date: 17-18 May 2016
Event: KL International Conference on Islamic Finance 2016
Event site:

Date: 24-25 May 2016
Event: KL International Conference on Islamic Wealth Management & Financial Planning 2016
Event site:

To register or reserve a seat online, please go to:

Organizer: Alfalah Consulting

CMA Oman's sukuk regulation aims to provide transparency

KUALA LUMPUR: Capital Market Authority of Oman (CMA Oman) recently issued new sukuk regulations that aim to provide clarity and transparency to market players, while providing protection to investors in sukuk transactions. 

At the forefront of the historical initiative is Kemal Rizadi Arbi, a Malaysian who is an adviser at CMA Oman as well as a member of the Oman government’s sukuk committee.

“It is to be noted that not all jurisdictions have specific and separate sukuk regulations, particularly in the Gulf Cooperation Council (GCC) countries, with many just having a conventional bond regulatory framework with some additions made on the syariah requirements. 

“In addition, it has been drafted to provide flexibilities and spur innovation in the market, among others introducing a new trust regulation and structure and allowing the issuance of a sukuk programme,” said Kemal in an email to Business Times recently. 

He said the issuance of the new sukuk regulation formed an integral part of the overall strategy of the Oman CMA to enable the capital market to play a vital role as a fund-raising platform for companies in the economic development of Oman, particularly in the fixed income market, where sukuk forms an important element to further develop Oman’s Islamic capital market.

“This new sukuk regulation will form a key milestone in the evolution of the sukuk market in Oman and hopefully boost sukuk issuances, particularly from private sector players in order to meet their development and funding needs, while diversifying the financing base and risk away from the traditional banking sector,” he said.

 Kemal said sukuk issuances would also provide an essential liquidity management instrument and investment avenue for both Islamic and conventional financial institutions, investment funds and takaful/insurance operators in Oman.

“Hence, it will not only provide a wider investor base for both conventional and syariah-compliant investors, but also attract the required foreign investments into the country via foreign investors. 

“We are confident that this new regulation will have a positive impact on Oman’s capital market and the economy,”

 he said. Kemal said within three years since the issuance of the Islamic Banking Regulatory Framework in December 2012 and the establishment of two Islamic banks and six Islamic windows, the Islamic financial market in Oman has seen the launch of the new Muscat Securities Market (MSM) Syariah Index with 30 syariah-compliant listed companies.

esides that, Oman has also seen the launch of three syariah-compliant investment funds, the first Oman sovereign sukuk and also the first corporate sukuk, and the establishment of two takaful operators, including the issuance of the new takaful law. 

“This is another important milestone and will lay the foundation to boost the development of the sukuk market and Islamic finance in Oman,”

he said. According to recent media reports, several Omani companies — including financial institutions, property developers and oil firms, are exploring the feasibility of floating sukuk issues, with the new regulation on syariah compliant bond instrument in place.

The Times of Oman said this was in line with global trends where GCC states, along with Malaysia, Indonesia, Turkey, Singapore, and Pakistan,

have issued US$11.1 billion (RM43 billion) worth of sukuk in the first three months of this year. 

“These countries are choosing to issue more of their debt as sukuk rather than conventional bonds. “These countries issued 39.3 percent of their debt as sukuk — the highest ratio of sukuk to conventional debt in eight years, based on data from Fitch Ratings,” it said.

(News Strait Times Online / 03 May 2016)
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Saturday, 30 April 2016

Nigeria: MUSWEN Moves to Strengthen Zakat Collection

Plans are underway by the Muslims Umah of South West Nigeria (MUSWEN) to strengthen Zakat collection to assist more indigent Muslims and solve some social problems confronting them.
However, the group has bemoaned the spate of insurgency in the country, urging the Federal Government to put in place proper mechanism to guarantee security of lives and properties.
The group, in a communiqué made available to The Guardian after its second general assembly meeting in Ibadan condemned the bloody and destructive activities of Boko Haram insurgents who are masquerading under the garb of Islam to perpetrate unprecedented atrocities in some parts of the country.
MUSWEN, in a statement signed by its Chairman, Sakariyau Olayiwola Babalola insisted that Islam stands for peace in all ramifications adding that such atrocities was grossly antithetical to the tenets of Islam.
Besides, it called on the Federal Government to quickly devise a means to address the fundamental causes of insecurity in the land and make frantic efforts to rescue the Chibok girls.
It therefore enjoined Muslims to organize special prayers for the nation. "That the political situation in the country today, when combined with the well known insecurity has become so dangerous that only constant prayer can rescue it. MUSWEN therefore calls for such prayers from all and sundry,"
MUSWEN at the meeting however established a Muslim Elders' Forum for the southwest to address some socio-economic and political issues affecting Muslims, which were often overlooked by an existing Yoruba Elders' Council and similar bodies in the region.
Worried about the present economic situation of the country, particularly as being affected by the crash in crude oil prices, It insisted that, existing agricultural policies should be quickly implemented by the federal and state governments to engage millions of Nigerian youth as a way of curbing unnecessary restiveness in the society.
The group also noted that the overwhelming poverty within the Ummah betrays the preponderance of the meaningful Muslim population in Nigeria, which forms a great workforce that should help to stabilize the economic and political harmony of the country.
"Nigerian Muslims are incessantly confronted by two major problems: One is poverty. The other is ignorance. Whereas a solution to one of these two problems can automatically pave way for the solution to the other. However, no serious attention seems to have been paid to such solution for a long time," it stated.

It further called all Nigerians, irrespective of their ethnic and religious backgrounds, should come together to rally round the present government especially President Muhammad Buhari in solving the multifarious problems staring the Nigerian people on the face.

(All Africa / 29 April 2016)
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Malaysian sukuk issuance jumps 50.5pc to RM22.8b

KUALA LUMPUR, April 29 — Malaysian sukuk issuance jumped 50.5 per cent to RM22.8 billion in the first two months of 2016, compared to RM15.1 billion for the same period in 2015, says RAM Ratings.
Notably, this made a significant contribution to global sukuk issuance figures, it said in a statement today.
The top three sukuk global issuers in February 2016 were all Malaysia-based Danga Capital Bhd (US$2.3 billion — RM8.946), International Islamic Liquidity Management (US$1.3 billion), and the Government of Malaysia (US$1.1 billion).
“A total of US$8.9 billion of global sukuk was issued the same month, bringing the year-to-date (YTD) issuance to US$12.3 billion as at end-February 2016,” it said.
In the latest issue of its Sukuk Snapshot, designed as a quick reference point for sukuk data and trends, RAM highlights that a total of RM14.4 billion of domestic sukuk was issued in February, leading to a YTD issuance value of RM22.8 billion.
RAM’s Head Islamic Finance, Ruslena Ramli, said: “Malaysia is holding its ground, with 53.9 per cent of the world’s outstanding sukuk.”
Meanwhile, corporate sukuk issuance also picked up, making it the largest contributor (69 per cent) of domestic sukuk issues, followed by government sukuk (31 per cent).

(Malay Mail Online / 29 April 2016)
Alfalah Consulting - Kuala Lumpur:
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Wednesday, 27 April 2016

Dubai Sukuk listings top $42bn

The value of Sukuk listings in Dubai has topped $42.61bn following the ringing of the bell by Islamic Corporation for the Development of the Private Sector yesterday for its $300m issue.
The Islamic Development Bank Group private sector arm said the total nominal value of Sukuk in the emirate was higher than any other centre globally, making it a leader in the Islamic bond sector.
“Using the funds raised by this Sukuk, we will further pursue our mission to provide financing and investment for a range of successful private enterprise projects in our member countries,” said ICD chief executive Khaled Al Aboodi.
The Islamic Devleopment Bank has seven other Sukuk outstanding on Nasdaq Dubai, following its first listing in 2014, with a total nominal value of $8.05bn.
The most recent Sukuk listed on April 14.

ICD has an authorised capital of $4bn and is jointly held by the IDB, 52 Islamic countries and five public financial institutions.

(Gulf Business / 26 April 2016)

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