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Halal Industry
Indonesia and New Zealand sign halal cooperation agreement

Indonesia and New Zealand signed a halal cooperation agreement on June 16 to ease export procedures for red meat and dairy products. The development comes as the Southeast Asian nation prepares to enforce mandatory halal certification for most consumer goods by the end of 2026.

The arrangement will streamline certification and product assurance processes, allowing New Zealand exporters to better align with Indonesia’s evolving halal regulations.

New Zealand’s Minister for Agriculture and Trade, Todd McClay, said the agreement was part of the government’s broader strategy to expand trade opportunities and boost returns for exporters. He added that Indonesia presented a significant market with a population of 280 million and a growing middle class. Last year alone, it imported more than 1.1 billion New Zealand dollars ($664 million) in New Zealand dairy and meat products. 

The new agreement comes as Indonesia implements the phased rollout of its halal product assurance law, requiring most domestically sold and imported goods to be halal-certified by the end of 2026. Industry stakeholders have previously flagged the certification process as a potential trade barrier if mutual recognition mechanisms are not in place.

According to officials, the cooperation is expected to support smoother market access for New Zealand producers while helping ensure compliance with Indonesia’s regulatory framework. It may also strengthen New Zealand’s positioning as a supplier of high-quality, halal-compliant food products to Indonesia.

Further details of the arrangement, including recognition of halal certifying bodies and implementation timelines, are expected to be clarified in upcoming bilateral discussions.

Islamic Finance
Emirates Islamic takes top honours at Euromoney awards

Emirates Islamic received multiple accolades at the recently concluded Euromoney Islamic Finance Awards 2025. These awards, which included ‘The World’s Best Islamic Digital Bank’, ‘The Middle East’s Best Islamic Digital Bank’, and ‘The UAE’s Best Islamic Digital Bank’, were given in recognition of its performance and innovation in Shariah-compliant digital banking.

The bank’s digital-first strategy has resulted in more than 500,000 customers registering for its EI+ mobile app. Over 90% of eligible customers now bank online or through the mobile platform, with the app logging more than 18 million transactions and an average of 4 million monthly logins. According to Emirates Islamic, expanding app services from 50 at launch to 160 features, including Islamic investment products, has driven a 30% increase in financial transactions.

In addition to its digital banking awards, Emirates Islamic was recognised for its ESG and sukuk activity. The bank received the award for ‘The Middle East’s Best Islamic ESG Deal’ for its $750 million senior unsecured sukuk, which closed with an order book of $2.1 billion and was 2.8 times oversubscribed. The sukuk was positioned as a milestone ESG transaction within the regional Islamic finance market.

The bank also received four corporate banking awards, including ‘The Middle East’s Most Innovative Islamic Deal’ and three UAE-specific distinctions: ‘Islamic Finance Deal of the Year’, ‘Best Islamic ESG Deal’, and ‘Most Innovative Islamic Deal’.

The Euromoney Islamic Finance Awards recognise financial institutions that demonstrate market leadership, product innovation, and contributions to the development of the Islamic banking industry.

OIC Economies
Israel-Iran conflict may add up to $10 risk premium to oil prices

The conflict between Iran and Israel could add a geopolitical risk premium of $5-$10 to oil prices, as the Middle East region’s security risk rises, global rating agency Fitch has said. 

“We expect the geopolitical risk premium in oil prices to be contained at around $5-$10. Material disruption to Iran’s production or export infrastructure would add more upward pressure to prices,” Fitch adds. 

Iran produced about 3.26 million barrels a day of crude oil in 2024, according to OPEC.

“In the unlikely event that all Iranian exports are lost, they could be replaced by spare capacity from OPEC+ producers, which is around 5.7 million barrels a day. Higher oil prices would benefit the region’s oil producers, through higher fiscal and external revenues, particularly should they raise output to offset lower Iranian exports,” the Fitch report, published on June 16, read. 

Israel carried out a series of air strikes on Iran, attacking its top military brass and key nuclear sites and scientists on June 12, pushing oil prices high. Western Texas Intermediate (WTI) crude touched $76, its highest in several weeks prior to the conflict.  

“Israel has strong defensive countermeasures, and it appears that Iranian strikes have not had a material economic impact. We believe Iran’s capacity to retaliate against Israel via proxies in Gaza and Lebanon has been damaged by Israel’s military campaigns in those regions,” the rating agency said. 

“Both factors suggest it is likely that damage from Iran’s military response to Israel’s latest attacks will not be on a scale that would affect Israel’s rating,” Fitch adds. 

The agency downgraded Israel’s credit rating to 'A' from 'A+' last August, which it affirmed this March with a negative outlook, citing rising public debt, domestic political and governance challenges and uncertain prospects for the Gaza conflict. 

Fitch adds that the GCC states have condemned Israel’s attack on Iran, reinforcing that GCC-Iran relations remain fairly good and that an Iranian move against targets in the GCC is unlikely. 

Some sovereigns could also face credit profile downgrades, if the violence escalates. 

Islamic Finance
Can blockchain redeem global finance?

It’s easy to say people have lost faith in the financial system. But what does that actually look like?

It looks like savings shrinking under inflation while banks post record profits. It looks like being denied a loan despite working two jobs. It’s paying years of insurance premiums, only to be told your claim doesn’t qualify when tragedy strikes.

In countries around the world, trust in financial institutions is eroding. A 2023 global survey by Edelman found that fewer than 50% of people trust banks to do what’s right and that figure drops even further among Gen Z and millennials.

These generations have watched bailouts flow to the powerful, while ordinary families are left with overdraft fees and frozen accounts. They’ve grown wary — not just of banks, but of systems that profit from complexity and exclusion.

But maybe the problem isn’t people. Maybe it’s the system itself.

When systems are built on asymmetry
Most financial structures were designed to be top-down. You deposit your money and trust that the institution will handle it ethically. But time and again, that trust has been tested and often broken.

And for Muslims, that breakdown goes deeper. Even in Muslim-majority countries, many financial offerings labeled ‘“Islamic’” still feel like conventional products wrapped in Shariah marketing.

According to a 2022 study by the International Shariah Research Academy (ISRA), over 70% of Islamic financial institutions engage in dual models that may not align fully with ethical or faith-based expectations.

What’s missing isn’t just trust. It’s transparency, participation, and real-world alignment. That’s where blockchain and more specifically, decentralized autonomous organizations (DAOs) present a potential shift.

Understanding blockchain and DAOs minus the hype
A blockchain is a digital ledger that records transactions publicly and immutably. Once data is added, it can’t be changed. Everyone can see what’s happening, but no one can alter it behind closed doors.

DAOs build on that infrastructure. A DAO isn’t a company or an app. It’s a collectively governed organization that runs on code, not executives. Rules are written into smart contracts that automatically execute decisions based on the consensus of its members. Voting is open. Funds are traceable. No individual holds the keys.

This model challenges the very foundation of how most financial systems work and offers a new blueprint.

When technology reflects timeless values
For Muslims, this isn’t a foreign idea. Shura (consultation), waqf (endowment), and the ummah (community) have long served as frameworks for mutual aid and collective governance.

In early Islamic history, financial structures weren’t built to extract profit from the many, they were designed to circulate wealth fairly, fund public good, and preserve human dignity.

The Bayt al-Mal (public treasury), managed with community oversight, distributed resources to widows, orphans, and the poor. Waqf systems funded schools and hospitals across the Muslim world for centuries.

DAOs don’t replicate these frameworks perfectly but they echo the same spirit. They offer a path forward that’s less about disruption and more about restoration.

Intentional innovation is what matters
Some critics dismiss blockchain as overhyped or too technical. Others fear it will replicate the very power imbalances it claims to dismantle. And they’re right to be cautious. Technology is neutral, it reflects the intent of the people using it.

When guided by ethics and inclusion, blockchain can become a powerful tool for rebuilding trust.

Consider The LifeDAO (TLD). It’s not the only example and it shouldn’t be the focal point but it does offer a working case. TLD operates as a DAO to provide financial protection without traditional insurance structures.

Members voluntarily contribute to a communal fund, and when one passes away, their nominee receives a direct payout, without gatekeeping, delays, or profit motives.

Everything from fund governance to decision-making happens transparently, guided by consultation (shura) rather than executive fiat. It’s a financial tool that feels more like a community than a corporation.

Elsewhere, DAOs are funding regenerative agriculture, supporting decentralized journalism, and offering peer-powered alternatives to health insurance. The point isn’t to romanticize the tech but to spotlight a growing movement of people using it to build systems that serve, not extract.

What stands in the way
Of course, this model isn’t without its challenges.

According to the World Economic Forum (2023), more than 60% of adults globally lack the digital skills needed to securely use blockchain tools. There are also legal gray areas: DAOs remain unregulated in many jurisdictions, making it harder to enforce agreements or protect contributors from fraud.

But these aren’t reasons to dismiss the model. They’re reminders that the work ahead is real and necessary. Building ethical alternatives takes more than smart contracts. It requires community trust, governance education, and a willingness to prioritize long-term resilience over short-term returns.

The real question isn’t “Can it work?”
It’s whether we have the courage to build financial systems that reflect the values we say we believe in.

If blockchain is just another way to hoard, hide, or hustle then we’ve learned nothing. But if it becomes a tool to redistribute trust, decentralize power, and amplify shared responsibility, then we may be witnessing not a technological revolution, but a moral one.

So the question isn't whether blockchain can redeem global finance.

It’s whether we’re ready to redeem it by showing up, shaping it, and making sure it doesn’t leave our communities behind.

Because in the end, faith in finance won’t be restored through slogans. It’ll be rebuilt through systems people can see, trust, and shape together — one block, one voice, and one shared decision at a time.

Sharene Lee is chief operating officer & co-founder of Takadao

All
UAE economy grows 4% in 2024 driven by non-oil growth

The United Arab Emirates’ real GDP reached 1,776 billion Emirati dirhams ($484 billion) in 2024, marking a 4% year-on-year increase driven by non-oil sector growth, according to data released by the Federal Competitiveness and Statistics Centre (FCSC).

Non-oil GDP rose by 5% to 1,342 billion dirhams ($365 billion), accounting for 75.5% of total GDP. Oil-related activities contributed 434 billion dirhams ($118 billion). The figures highlight the UAE’s ongoing diversification efforts away from oil dependency.

Abdulla bin Touq Al Marri, minister of economy, said the data “reflects positive momentum in the national economy” and signals progress towards building an innovative, knowledge-based economy aligned with the UAE’s long-term development strategies. "With each milestone, we are moving closer to achieving the UAE’s target of raising GDP to 3 trillion dirhams by the next decade," Al Marri added.

The transport and storage sector was the fastest-growing segment in 2024, expanding 9.6% as airports handled 147.8 million passengers, an increase of nearly 10%. The construction sector grew 8.4%, driven by infrastructure investment, while financial and insurance activities grew 7%. Hospitality recorded a 5.7% increase, and real estate expanded 4.8%.

Hanan Mansour Ahli, managing director of FCSC, said the UAE’s growth reflects “exceptional performance supported by a forward-looking vision focused on sustainable growth not reliant on oil.” She added that economic diversification remains both a strategic goal and an operational approach for long-term development.

Within the non-oil economy, trade contributed 16.8%, manufacturing 13.5%, financial activities 13.2%, construction 11.7%, and real estate 7.8%.

The UAE continues to position itself as a global hub for new economies and sustainable development, supported by ongoing strategic initiatives under its “We the UAE 2031” vision.

Islamic Finance
UAE sukuk market strengthens as Islamic finance assets grow 16% in early 2025

The United Arab Emirates’ Islamic finance sector continues to expand, supported by rising sukuk issuance and steady growth in Islamic banking assets, according to newly released government data.

Total credit granted by UAE Islamic banks reached 503.5 billion Emirati dirhams ($137 billion) as of February 2025, marking a 16% year-on-year increase, according to the Central Bank of the UAE. Deposits grew at an even faster pace, rising 16.9% year-on-year to 595.3 billion dirhams ($162 billion).

Jamal Saleh, director-general of the UAE Banks Federation (UBF), said in statements carried by Emirates News Agency (WAM) that the sector’s performance reflects the country’s broader efforts to develop its Islamic finance infrastructure as part of its national diversification strategy. “The UAE has made significant progress in Islamic banking, sukuk issuance and Shariah-compliant finance overall,” Saleh said.

The sukuk market has seen particularly strong momentum. Sukuk listed on Nasdaq Dubai totalled over $95.7 billion as of May 2025, positioning the UAE among the world’s leading centres for Shariah-compliant fixed-income instruments. The federal government’s 2023 launch of dirham-denominated Islamic Treasury Sukuk (T-Sukuk) has further strengthened market activity.

According to the 2023 Islamic Finance Development Indicator, the UAE ranked fourth globally in Islamic financial markets by total assets.

In May 2025, the UAE government approved a national strategy for the development of Islamic finance and the halal industry. The plan aims to create an integrated ecosystem across Islamic banking, takaful, sukuk, and non-banking Shariah-compliant financial services, in line with global standards.

Parallel to the financial sector, the UAE is advancing its halal industry ambitions. The government targets an increase in halal exports from 74 billion dirhams ($20 billion) to 315 billion dirhams ($86 billion) by 2031. The country’s halal food and beverage market is projected to exceed $31.27 billion by 2029, according to Bonafide Research.

Saleh Lootah, chairman of the UAE Food and Beverage Manufacturers Group, told WAM that growing demand for halal-certified products is encouraging more local manufacturers to expand into the sector.

The UAE’s geographic location and infrastructure continue to support its development as a global centre for both Islamic finance and halal trade.

Islamic Finance
Creating impact through future-first investments 

Impact investing is inherently forward-looking, offering a viable alternative to ESG investing

 

Criticism of pursuing ESG (environmental, social and governance) goals can be broadly condensed into two points. 

The first disapproval refers to the companies’ broader intent to generate profits without the distraction of ESG goals. 

Businesses are typically built to generate profits with little to no thought given to how low wages, overrun production lines, and subpar product quality often create negative social and environmental effects. On the flipside, recalibrating a company’s supply chain will yield higher costs, which prompts a debate on how much intent and effort must be reserved for ESG goals. 

The second challenge is the difficulty of calibrating the true impact of pursuing ESG goals. It is relatively easier to assess a firm’s performance through financial metrics, such as ROI, EBITDA, EPS, etc. Due to their qualitative nature, measuring the impact of ESG is difficult. 

The problems surrounding these two ESG challenges undermine a company’s resolve to pursue green goals. Shareholders can be convinced of fulfilling long-haul ESG goals, but they seek positive and preferably high returns in the short term. 

For all the odds, the ESG industry continues to grow. Nearly 9 out of 10 investors, who participated in a Bloomberg study, suggested that ESG leads to better returns, resilient portfolios and enhanced fundamental analysis. Ongoing pressure on companies to consider ESG initiatives is certainly leaving an impact on investors and corporations framing their commercial decisions. 

Yet there remains the risk of greenwashing, with companies feigning environmental consciousness to bolster credibility. Deutsche Bank’s asset manager DWS was fined €25 million earlier this year for “aggressive” advertising that “did not reflect reality”. 

This is not an isolated event, with several multi-national companies such as Nestle, Shell, Starbucks and Apple accused of similar transgressions. Often companies misrepresent their eco-friendly goals to generate demand. 

Indeed, most companies that embed ESG in their strategic decision-making were established on the pillars of profit maximization. This means that healthy bottom lines will be the touchstone of all commercial decisions.

For vocal thinkers such as Milton Friedman, the social responsibility of businesses is to increase profits, leaving ESG considerations to regulation. So long as companies are following the law of the land, claims Friedman, there is no need for them to consider this extraneous factor.  

Of course, the downside is that companies will look to circumvent laws to achieve what they wish to, not what they should. Intent, therefore, is key, which calls for an overhaul in a company’s approach. Environmental considerations must be embedded into a firm’s mission statement, diluting the notion of prioritizing financial returns as a core objective of ESG investing.

Viable alternative
Impact Investment represents a viable alternative to ESG, with the former aiming to achieve positive social good whilst generating financial returns. Rather than isolated activities such as planting a score of trees on abandoned land, impact investment conflates social good with the need to generate returns.

A good example would be investing in companies that manufacture smartphones but those that do not extract metals from conflict zones. Impact investment is inherently forward-looking. 

Impact Investment also maintains a strong focus on measurability, with enterprises measured on financial returns and the impact created. Unlike ESG where goals are subjugated to financial returns, impact investment looks to an initiative’s end goal.

It may be less attractive to investors as an asset class, but its focus on long-term outcomes does combat the short-termism of conventional capitalism, and falls in lockstep with holistic principles of Islamic finance. 

Rizwan Rahman is a UK trained lawyer based in Doha

Islamic Finance
Islamic finance roundup: Emirates Islamic partners with Swiss firm to unveil Shariah-compliant products

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

 

Editor's Note: The Islamic finance space is humming, with lenders either launching innovative Shariah-compliant products or transitioning into full-fledged Islamic lenders. Bank Muamalat went a step ahead to launch Malaysia's first digital-only Islamic bank.  

 

Company News


UAE / Switzerland

Emirates Islamic partners with Leonteq to unveil Shariah-compliant products

Emirates Islamic, a UAE-based Islamic financial institution, has formed a new partnership with Leonteq Securities AG, a Swiss-based structured product issuer, to distribute Shariah-compliant structured products.

 

This collaboration aims to enhance Emirates Islamic's offering in the wealth management sector, combining relevant solutions that are aligned with customers’ evolving needs while adhering to Islamic principles. (Zawya)

 

Kyrgyzstan

EcoIslamic Bank transitions to an Islamic bank

On June 3, the National Bank granted EcoIslamic Bank a license to conduct banking operations in accordance with Islamic principles for both national and foreign currencies.

 

This new license replaces the previously issued one as part of the conversion of EcoIslamic Bank CJSC into a fully-fledged Islamic bank.

 

Since its establishment, EcoIslamic Bank has been operating under Islamic principles as part of a pilot project. (Akchabar)

 

Image Courtesy: Fintech Futures

 

Malaysia

Bank Muamalat launches Malaysia’s digital-only Islamic bank

Bank Muamalat has launched Malaysia’s first Islamic digital-only bank focused on faith and lifestyle alignment.

 

The initiative, developed in partnership with banking technology firm Backbase, is a significant step in Bank Muamalat’s efforts to redefine Islamic banking. (Fintech Finance News)

 

 

Trade Developments


Image Courtesy: The Star

 

Malaysia / Guinea-Bissau

Malaysia, Guinea-Bissau extend ties with focus on Islamic finance 

Malaysia and Guinea-Bissau have reaffirmed their commitment to strengthening bilateral relations, focusing on areas such as the halal industry, Islamic finance, the energy sector, and capacity building.

 

Prime Minister Anwar Ibrahim encouraged Malaysian corporations, including PETRONAS and FGV Holdings, to explore potential ventures in Guinea-Bissau. (The Star)

 

 

Investment


Singapore

Maybank leads in underwriting largest Islamic financing for data centres in Asia Pacific

Maybank is underwriting 2.5 billion Malaysian ringgits, which is equal to one-third of the largest syndicated Islamic financing for data centres in the Asia Pacific region.

 

The transaction is aimed at supporting DayOne Data Centers in the Johor-Singapore Special Economic Zone. (The Edge)


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