Home / News

Featured News


All Other News
Islamic Finance
Islamic finance roundup: Ayan Capital secures £2.8m to expand halal finance offerings

Here's a roundup of key developments across the Islamic finance ecosystem during the month of December

 

Editor's Note: The UK is becoming a preferred destination for Islamic finance products and services, with the pool of Shariah-compliant service providers constantly growing. UK-based Ayan Capital has secured a hefty sum to expand its halal finance offerings, while in the South Asian neck of the woods, government officials vow to make Pakistan's economy Shariah-compliant. 

 

Company News


UAE

AlHuda CIBE organized fintech awards in Dubai

The Global Islamic FinTech Awards were held on December 9th, at the Global Islamic FinTech Forum in Dubai, organized by the Al-Huda Center of Islamic Banking & Economics.

 

The ceremony celebrated innovation and achievements in the Islamic fintech industry, recognizing individuals and institutions driving progress.

 

Al-Huda’s CEO, Zubair Mughal, praised the winners and nominees for their contributions to advancing Islamic finance and FinTech globally. (Zawya)

 

Qatar

Al Rayan Bank becomes first Sharia-compliant bank to join PCAF

Qatar’s Al Rayan Bank became the first Sharia-compliant bank to join the Partnership for Carbon Accounting Financials (PCAF), reinforcing its commitment to sustainability and ESG initiatives.

 

Group CEO Fahad Bin Abdulla Al Khalifa emphasized the move’s role in aligning with global standards and Qatar’s vision for a sustainable future. (Zawya)

 

Malaysia

Luno launches Shariah-compliant Ethereum Staking
Luno became the first regulated digital asset exchange to offer Shariah-compliant Ethereum staking, certified by Amanie Advisors.

 

Initially launched in Malaysia, the service allows investors to stake Ethereum with minimal barriers, starting at 0.00001 ETH or RM1, offering potential annual rewards of up to 3%.

 

Rewards, distributed weekly in Ethereum, vary with network conditions, with Luno deducting a service fee from earned rewards. (Fintech News)

 

 

Investment


UK

Ayan Capital secures £2.8m to expand halal finance offerings in the UK

London-based Islamic fintech Ayan Capital raised £2.8 million ($3.6 million) to expand its halal financial products, focusing on Islamic car finance.

 

Led by Cur8 Capital, the funding supports Ayan’s services for private hire drivers purchasing electric and hybrid vehicles.

 

Ayan has financed over £3.4 million with a zero percent non-performing loan rate since its launch, leveraging data-driven underwriting.

 

The firm, growing at 97% month-on-month, recently launched AyanPay, a zero percent financing service for car repairs and home improvements. (Motor Finance)

 

Central Asia

Growing Islamic finance to unlock GCC investment

The Eurasian Development Bank, Islamic Development Bank Institute, and London Stock Exchange Group highlighted Islamic finance's growth in Central Asia during Abu Dhabi Finance Week.

 

A panel emphasized its role in sustainable development and strengthening investment ties with the Gulf Cooperation Council.

 

With Central Asia’s GDP growth surpassing 4% in 2024, projections estimate the regional Islamic finance market will grow from $2.5 billion in 2028 to $6.3 billion by 2033, driven by Islamic banking and sukuk bonds. (BNE IntelliNews)

 

 

Operational Developments


Pakistan

Finance minister vows to make Pakistan's economy Sharia-compliant

Finance Minister Muhammad Aurangzeb reaffirmed Pakistan’s commitment to transitioning to a fully Sharia-compliant economic system, emphasizing its progress toward stability.

 

Speaking at the Islamic Capital Market Conference, Aurangzeb stressed on the importance of sukuk in reducing reliance on interest-based loans, calling for collective efforts to address the country’s financial challenges. (The Nation)

Halal Industry
Halal industry roundup: Malaysia to help Timor-Leste develop halal industry

Here's a roundup of key developments across the halal industry ecosystem during the month of December

Editor's Note: That Malaysia is a paragon of a thriving halal landscape is stating the obvious. But for the country to become the perfect ally to uplift other states in their journeys towards a prosperous halal industry ecosystem is commendable. 

The Southeast nation has pledged to help Timor-Leste develop its halal industry, as well as collaborate with Bangladesh on expanding the halal products market. 

Meanwhile, the Association of Southeast Asian Nations has launched a halal secretariat to boost the halal industry regionally and globally.

 

Company News


USA

Behalaal App Launches in the USA

The Behalaal App, a marketplace for halal products and modest fashion, has launched in the US.

 

The platform connects buyers and sellers who prioritize halal standards, offering essentials and modest wear with confidence.

 

Catering to the growing demand for halal-conscious shopping, the app offers a seamless solution for the faith-driven community in the United States. (Halal Focus)

 

Indonesia

The Laughing Cow Cheese Now Officially Halal-Certified by BPJPH

The Laughing Cow Cheese has officially added the halal certification mark from Indonesia's Halal Product Assurance Organizing Agency (BPJPH) to its packaging.

 

The certification reaffirms Bel Group’s adherence to halal standards and its commitment to providing nutritious and trusted food choices for Indonesian consumers. (PR Newswire)

 

 

Trade Developments


Bangladesh / Malaysia

Bangladesh, Malaysia to work together to expand market for Halal products

Bangladesh and Malaysia have pledged to collaborate on expanding the halal products market and developing the halal ecosystem.

 

Officials discussed the Reverse Linkage Project at a meeting between Bangladesh’s Islamic Foundation and Malaysia’s Serunai delegation, alongside the Islamic Development Bank. The project will play a vital role in accelerating the development of the halal ecosystem through interconnection between countries. (TBS News)

 

Malaysia

Asean establishes Halal Secretariat to drive industry growth

The Association of Southeast Asian Nations (Asean) has launched the Halal Secretariat to boost the halal industry regionally and globally.

 

Announced during the inaugural Asean Halal Roundtable Dialogue, the initiative underscores member states' collective commitment to the sector. The secretariat will coordinate efforts to support the industry's growth and ensure its long-term success. (Halal Focus)

 

Bahrain

Municipalities Minister highlights expanding local exports, global halal market opportunities

Bahrain’s Crown Prince and Prime Minister issued an edict to bolster the halal industry, aiming to position the kingdom as an international hub.

 

The edict establishes a regulatory framework, including a national halal mark and rigorous product compliance, to enhance Bahrain’s competitiveness in the growing global halal market. (Bahrain News Agency)

 

Malaysia

Malaysia ready to help Timor-Leste develop halal industry

Malaysia has pledged to assist Timor-Leste in developing its halal industry to tap into the $3 trillion global market.

 

During Timor-Leste Prime Minister Xanana Gusmao’s visit, both nations emphasized economic collaboration and encouraged trade and investment opportunities. They also announced the establishment of a bilateral consultation mechanism to deepen ties and foster shared growth. (FMT)

 

 

Regulatory


Kyrgyzstan

Officials test halal product monitoring system

Kyrgyzstan’s Ministry of Economy and Commerce tested an automated system for monitoring halal products, aiming to enhance supervision and certification.

 

Officials, including Infocom representatives, discussed the halal industry’s development and gathered feedback. The system, integrated with the Sever electronic platform, will streamline digital interaction between certification bodies and industry participants. (24 KG)

 

 

 

UPCOMING EVENTS :

All
UAE's free trade agreements with OIC states – how will they impact the Islamic economy?

Globalization is not a recent topic. Agreements to foster cross-border trade of goods and services have long proven to strengthen industries, develop strong investment partnerships and catapult trade.

To undergird the country’s growth and increase non-oil trade, the UAE launched its comprehensive economic partnership agreements (CEPA) programme in September 2021, aiming to achieve $1 trillion in trade value by 2031. Agreements implemented as part of the initiative since encompass markets across the Middle East, Africa, South America, Asia and Europe, covering around a quarter of the world’s population. 

Several of the country’s CEPAs have been with Organization of Islamic Cooperation (OIC) countries. How can these agreements promote the Islamic economies of participating nations? 

“The significance of CEPA agreements with OIC countries is multi-dimensional. The Islamic economy is embedded within the DNA of these pacts, which could support bilateral growth,” Bashar Al-Natoor, Islamic finance head at Fitch Ratings told Salaam Gateway. 

OIC agreements 
The UAE signed a comprehensive economic partnership agreement with Indonesia in 2022, its first with an OIC country and third overall. The agreement included a specific chapter on the Islamic economy (IE), committing both parties to promote IE's current and future sectors. Bilateral non-oil trade grew 12% to $4.6 billion last year, with the deal aiming to raise it to $10 billion annually.

“The UAE's CEPA with OIC countries like Indonesia represent a transformative opportunity for the Islamic economy,” Ahmad Soffian, CEO and co-founder of Sa’adah Global, an Indonesia-based halal business consultancy told Salaam Gateway.

“For Indonesia, a global leader in halal products and services, this partnership can amplify exports of halal-certified goods to the UAE and other OIC countries, facilitating the growth of SMEs and startups in the halal ecosystem. Moreover, by integrating expertise and resources, these agreements encourage innovation, investment, and the establishment of unified halal standards, boosting the global competitiveness of the Islamic economy.”

The UAE-Indonesia pact was followed by a free trade agreement with Türkiye signed last March, eliminating or reducing custom duties on 82% of product lines. The agreement, which is expected to increase non-oil bilateral trade to $40 billion annually within five years, includes a halal cooperation article that encourages both countries to negotiate and finalize a memorandum of understanding related to halal quality infrastructure and mutual recognition on halal certification. This includes standards and accreditation of halal products.

“CEPAs could impact the broader Islamic economy, helping address issues such as halal certification and halal labelling. Türkiye could build on its cachet of being a significant destination for Muslim-friendly tourism and halal food, while developing other IE verticals too,” said Al-Natoor.  

Both agreements came into force in August 2023. Dr. Thani bin Ahmed Al Zeyoudi, the UAE’s minister of state for foreign trade, said at the time that these agreements would act as catalysts for channelling investments into promising sectors including energy, logistics, tourism, the Islamic economy, agriculture, and more.  

“The UAE’s Islamic finance industry is in a relatively advanced stage, where almost 29% of bank financing and deposits are Shariah-compliant. Moreover, UAE Islamic banks are significant investors, arrangers and issuers of international sukuk, while countries such as Indonesia and Türkiye are major sukuk issuers. CEPA agreements with these countries could help further mature the Islamic finance industry and support existing collaborations,” added Al-Natoor. 

The UAE and Morocco finalised the terms of a CEPA agreement in July. Bilateral non-oil trade stood at $1.3 billion in 2023 with the UAE being Morocco’s largest Arab investor. The following agreement with Jordan inked in October this year became the first free trade pact signed between an GCC and an Arab state.

While the text of both the above agreements has not been published, the pact with Morocco is expected to establish platforms for investment and private sector collaboration across renewable energy, tourism, infrastructure, mining, food security, transport, and logistics. The partnership with Jordan is also expected to foster opportunities across renewable energy, industrial projects, manufacturing, transport, pharmaceuticals, and food processing verticals. 

The UAE and Malaysia concluded negotiations towards a trade deal this October. The Malaysian Investment Development Authority said earlier in the year that the pact would introduce Malaysia’s first chapter on the Islamic economy in a CEPA, facilitating collaboration with the UAE in areas of halal certification and Islamic finance. 

“The CEPA is a strategic lever for UAE-based companies to optimise Malaysia as a gateway into the ASEAN market, which in turn, will provide tremendous opportunities for our businesses – particularly the SMEs – through integration into regional supply chains, capacity-building and knowledge sharing,” said Zafrul Aziz, Malaysia’s minister of investment, trade and industry. 

The UAE concluded negotiations for an economic agreement with the Eurasian Economic Union this month in a sign of deepening ties between the GCC state and the bloc. The agreement will encompass five members of the EAEU bloc, comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, two of which are OIC states. 

The UAE’s push into trade deals has resulted in non-oil trade of 1.4 trillion dirhams ($381.2 billion) in the first six months of 2024, up 11.2% on the previous year. Trade pacts with global partners has also propelled the flow of foreign direct investment into the country.

"The results of our partnerships with key allies around the world are clear, with the sharp increase in trade flows supporting our status as a dynamic hub for global commerce and a gateway to high-growth markets worldwide,” Al Zeyoudi said on LinkedIn.

Islamic Lifestyle
Indonesia’s rising dominance across halal textiles

Indonesia has taken its place in the sun and is poised to lead the halal textile market.

The Southeast Asian country with a Muslim population of roughly 242 million, is set to enforce mandatory halal certification for clothing in 2026. This regulation marks a significant transformation for Indonesia’s fashion sector, according to Ahmad Soffian, CEO and co-founder of Sa’adah Global, a Jakarta-based halal business consultancy.

“For textile manufacturers, this regulation will likely drive increased demand for investment in specific areas, especially in certification processes, new machinery, and dedicated production lines that ensure halal compliance.”  

The global halal textile market is set for sustained expansion, on the back of increasing demand for ethical and modest fashion, rising awareness of halal principles, and a growing global Muslim population.

Muslim spending on fashion was valued at $318 billion in 2022, reflecting an 8.4% increase from the previous year, and is projected to grow at a compound annual growth rate (CAGR) of 6.1%, reaching $428 billion by 2027, according to the State of the Global Islamic Economy 2023/24 report. 

Beyond meeting religious requirements, halal textiles align with environmentally friendly and cruelty-free production practices, which help enhance their appeal to a broader, ethically conscious audience, including non-Muslims. This duo of reasoning positions halal textiles as a cornerstone of both modest fashion and sustainable innovation in the global textile industry.

However, local manufacturers in Indonesia will need to ensure that their supply chains - from raw materials to the final product - align with halal standards to avoid operational disruptions, Soffian emphasizes.

While the regulation may impose initial financial challenges, particularly for smaller brands and manufacturers due to the costs of certification and supply chain adjustments, it also presents a strategic opportunity. 

“By aligning with halal standards, local businesses can appeal to the growing demand for halal and modest fashion globally, significantly broadening their market reach,” notes Soffian. 

In the long term, this regulation positions Indonesian brands to strengthen their presence in the global halal market. 

Zoya, an Indonesian hijab brand, has leveraged its halal certification from the Indonesian Ulema Council (MUI) to enhance consumer trust and boost purchasing decisions. 

According to research published in the Academic Journal of Islamic Studies, the halal label, combined with strategic celebrity endorsements in advertising, significantly influenced consumer confidence in the quality and authenticity of Zoya's hijab products.

Another notable player in the halal textile industry is KainHalal, a brand by PT MilangKori Persada. In 2021, KainHalal became the world’s first halal-certified textile manufacturer, marking a milestone for Indonesia’s Halal Product Assurance Organizing Agency (BPJPH) under the Ministry of Religious Affairs. 

The certification process emphasized traceability, ensuring compliance from raw material sourcing - such as yarn and chemical ingredients - to production stages like bleaching, smoothening, and finishing. To achieve this distinction, PT MilangKori Persada collaborated with Asahi Kasei’s Bemberg, the world’s sole producer of cupro fiber. 

This eco-friendly cellulosic fiber, derived from cotton linters, is produced in a centralized facility in Japan, simplifying the rigorous tracking and tracing required by MUI. The company also worked with the Indonesian Textile Expert Association (IKATSI) to ensure adherence to the 11 Halal Assurance System criteria for factory operations.

KainHalal expanded its influence by collaborating with seven fashion designers this year to showcase Indonesia’s modest clothing at fashion weeks across London, Milan, and Paris. 

“We showcased our creations, primarily made with natural dyes and eco-print techniques, to align with halal textile principles. By 2025, we hope to create synergies with artisans specializing in traditional handicrafts like batik, ikat, songket, and lurik,” Fitriani Kuroda, president director of PT MilangKori Persada and CEO and founder of KainHalal, told Salaam Gateway.

KainHalal’s halal-certified woven fabrics have gained particular recognition for their practicality during Umrah and Hajj pilgrimages. The fabrics are breathable, resistant to wrinkles, and quick drying, making them ideal for travel. Additionally, the material offers qualities similar to silk, providing an alternative for Muslim men who avoid silk due to religious considerations.

Kuroda believes that Indonesia’s upcoming halal certification for clothing will unlock significant opportunities for the fashion industry. 

“Halal certification not only ensures traceability, but it also encourages the certification of various related products, such as dyes, finishing agents, and fabric softeners, thereby strengthening the halal textile ecosystem,” Kuroda explains.

This ecosystem, she adds, will help position Indonesia’s modest fashion industry as a global leader, aligning with the government’s vision of making the country the Muslim fashion capital of the world. 

The SGIE 2023/2024 report highlights Indonesia's pivotal role in modest fashion, ranking the country as the third-largest contributor to the global modest fashion ecosystem, following Türkiye and Malaysia. 

Industry first movers

Globally, several companies are emerging as pioneers in the halal textile industry, helping meet the growing demand for products that align with Islamic principles.

“Within Indonesia, brands like Shafira Corporation and Zoya have made notable strides in integrating halal compliance in their clothing lines, resonating with consumers who prioritize both modesty and religious adherence,” notes Soffian.

On an international level, British consumer goods giant Unilever and German chemical giant BASF are contributing to the halal textile value chain through halal-certified chemical processing, including the production of certified dyes and other critical textile chemicals, he adds. 

These efforts strengthen the foundation for halal compliance across various stages of textile manufacturing.

In addition, Toray Industries in Japan and Al Khayyat Investments in the UAE are aligning their textile materials with halal standards to cater to the expectations of Muslim consumers worldwide, according to Soffian. 

“These brands are paving the way by emphasizing transparency, halal certification, and dedicated production lines, setting benchmarks for the industry as halal textiles continue to grow in demand.” 

All
UAE launches Ministry of Family to strengthen social fabric 

Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Vice President of the UAE and Ruler of Dubai has announced the establishment of the ‘Ministry of Family’ to foster social empowerment. 

The ministry will be responsible for implementing policies, strategies and legislation to foster cohesive families, promote positive values, and support balanced family development.

Its responsibilities will include implementing initiatives to encourage and support prospective couples as well as manage marriage support services and grants, state-run news agency WAM reported. 

It will also develop programmes to offer parental training, enhance work-life balance and introduce measures to protect families and individuals under applicable laws. 

Sheikh Mohammed bin Rashid said: “Families form the solid nucleus of our society, and their strength ensures the cohesion of our communities. We call on everyone to contribute to the empowerment and support of families."

The new ministry - which will be led by Sana bint Mohammad Suhail, director general of the Abu Dhabi Early Childhood Authority - will conduct studies and propose initiatives to increase fertility rates among Emirati families and reduce the risks of family breakdown. It will also focus on child welfare and suggest policies to ensure the various rights of children. 

The ministry of family will propose strategies to protect, empower, and integrate vulnerable groups, including people of determination, senior citizens, orphans, and victims of abuse. It will manage family care programs for children in need of alternative families and issue official documents for children born of unknown parentage.

Sheikh Mohammed bin Rashid also announced other government reshuffles, including the relaunch of the Ministry of Community Development' to the 'Ministry of Community Empowerment,' under the leadership of Shamma bint Suhail Al Mazrui. The ministry will adopt an integrated community empowerment model designed to boost community participation and oversee social support system and empowerment programmes, providing a safety net for low-income families.

Sheikh Mohammed bin Rashid said: "The Education, Human Development and Community Development Council, will oversee the development of strategic directions in the family and community empowerment portfolios, and the alignment between the plans of the new ministries, linking their directions with education and human development within a unified and a comprehensive vision.” 

“The human journey in the UAE is integrated and interconnected from birth to the completion of education, to the career pathways, to the growth of families, and to the contribution to the community and the country."

The Ministry of Community Empowerment will develop strategies and legislation to regulate not for profit organizations, set criteria and procedures for licensing entities permitted to receive, or offer donations, both domestically and internationally, and implement programmes to promote volunteering initiatives among individuals, government entities, and private sector organisations. 

It will also oversee the licensing, and regulation of houses of worship for non-Muslims.
 

Islamic Finance
Varied adoption of AAOIFI Standard 62 could spur market fragmentation

Disparate adoption of the AAOIFI’s (Accounting and Auditing Organization for Islamic Financial Institutions) Shariah standard no. 62 could crank up market fragmentation.

The adoption and implementation of the standard, if varied by jurisdiction or entity, could increase market fragmentation, Fitch Ratings has said. 

The impact will hinge on the finalised standard, which jurisdictions and entities adopt it, and how it is reflected in sukuk documentation, it adds. 

While the draft texts of the standard have revealed provisions that would entail transfer of legal ownership of the underlying sukuk assets as well as related risks to sukuk holders, the timeline to finalize the standard remains unknown. 

AAOIFI Shariah standards are adopted as mandatory regulatory requirements in many countries and jurisdictions across the globe such as Bahrain, Jordan, Krygyz Republic, Mauritius, Nigeria, Qatar and Qatar International Financial Centre (QIFC), Oman, Pakistan, Sudan, Syria, the UAE and Yemen. They are also followed by numerous Shari’ah consultancies, auditing firms, Takaful/insurance companies, non-banking finance companies, capital market institutions, and Shariah scholars and professionals worldwide. 

“A full assessment of Standard No. 62 will depend on the exact requirements and stipulations of the finalised text, and the resulting changes in sukuk documentation. Introducing asset-backed or quasi-equity structures could expose sukuk investors and issuers to additional credit, market, legal, operational, and liquidity risks compared to conventional bonds,” Fitch said in a statement.  

The standard could affect the credit profiles of new sukuk and may entail assessing potential implications for an obligor’s issuer default rating (IDR) and debt ranking, it said. However, the rating agency doesn’t believe that its adoption would have automatic implications for existing sukuk ratings, as the amendments usually require the consent of sukuk holders.

Big guns
Whether major sukuk issuers such as sovereigns would be open to transfer sovereign assets to certificate holders remains unclear. This could be due to multiple factors, including foreign-ownership restrictions. 

Corporates and financial institutions may also consider asset transfer impractical if this materially affected their balance sheet and credit profile. This does not arise with asset-based sukuk, which do not typically involve removing assets from the obligor’s balance sheet, Fitch added. 

Industry stakeholders posit that the new standard, if implemented in its present form, could potentially convert sukuk into a complex financial instrument, dampening issuances, Salaam Gateway reported in July. 

Besides credit implications, there may be an impact on sukuk issuance trends, and on market access for some issuers, Fitch adds. 

“Disruption could be minimal if the adoption of the new standard ultimately results in most sukuk continuing to be senior unsecured pari passu obligations of the issuer without asset recourse.”

Bashar Al Natoor, Islamic finance head at Fitch Ratings told Salaam Gateway earlier this year that the Islamic finance market has previously demonstrated the capacity to adapt to changes, as this is not the first time sukuk has experienced challenges. 

Islamic Finance
UK’s Offa acquires Bank of Ireland’s Islamic home finance portfolio

Birmingham-based Islamic fintech Offa has acquired Bank of Ireland’s Shariah-compliant home finance portfolio.

The deal includes more than 350 home purchases plans. Customers transferred over to Offa will be able to access to a broader range of Sharia-compliant property finance products.

Offa, which offers an ethical finance model designed in accordance with Islamic finance principles, did not reveal the value of the deal. 

Bank of Ireland's Alburaq portfolio is one of the oldest Shariah-compliant home finance products in the UK. 

Amir Firdaus, Offa’s CFO said that it was a testament to Offa’s abilities that Bank of Ireland has agreed to sell their Islamic home finance portfolio to us. 

Offa launched a buy-to-let (BTL) service in July to overhaul traditional property financial solutions. The product, built on Islamic finance principles of co-ownership-with-leasing, enables customers to acquire properties in partnership with Offa, make monthly payments to increase their share, and own the asset over time. The company holds £230 million of Shariah-compliant funding for its BTL product. 

Muslims form 6.5% of the overall population of England and Wales, according to the 2021 census data. Birmingham, where Offa is headquartered, hosts the largest Muslim population in the country, totalling 341,811. 


Events & Courses

Special Coverage

Top 30 Digital Islamic Economy Startups 2024

View all

Top 30 OIC Halal Products Companies 2023

View all

Gaza Crisis

View all

Global Islamic Fintech Report 2023/24

View all

The State of the Global Islamic Economy 2023/24 Report

View all

Global Islamic Fintech Report 2022

View all

State of the Global Islamic Economy 2022

View all

Food Security

View all

Women in the Islamic Economy

View all

COVID-19 and the Global Islamic Economy

View all

E-book: Impacts of the COVID-19 outbreak on Islamic finance in OIC countries

View all

State of the Global Islamic Economy 2020/21

View all

Global Islamic Fintech Report 2021

View all