Gulf Bank has signed a strategic partnership with the Institute of Banking Studies (IBS) to provide specialized Islamic finance training for its employees, following the Central Bank of Kuwait’s preliminary approval for the bank’s transition to a fully Sharia-compliant institution.

The agreement was signed by Bader Al-Ali, general manager of consumer banking at Gulf Bank, and Rana Al-Nibari, director general of IBS, during a ceremony attended by senior representatives from both organizations. The collaboration marks a key milestone in Gulf Bank’s transformation strategy aimed at aligning its operations with Islamic banking principles.

The training programs, developed in partnership with IBS, will focus on the fundamentals of Islamic banking, emphasizing the distinctions between conventional and Sharia-compliant financial services. The initiative is part of Gulf Bank’s broader plan to build internal expertise and ensure a smooth operational transition.

Gulf Bank received preliminary approval from the Central Bank of Kuwait on August 18, 2025, to proceed with its conversion under Law No. (32) of 1968, which governs currency, the central bank, and banking regulation. The approval followed a feasibility study by an international consultancy and the submission of legal and technical documents to the central bank.

The partnership with IBS reinforces Gulf Bank’s broader strategy of aligning with Kuwait’s vision to expand Islamic finance, while ensuring that its employees are prepared to lead the transition through targeted education and skills development.

Standard Chartered said on Monday that assets under management (AUM) in its Signature CIO Funds have reached $3 billion just three years after launch, as the bank prepares to introduce a Shariah-compliant version to meet rising demand from Muslim investors.

The multi-asset funds, launched in 2022 and managed by Amundi Asset Management, provide retail and wealth clients with access to the bank’s Chief Investment Office strategies, including exposure to global equities, fixed income, commodities, and alternative assets.

“We continue to innovate and build on our suite of comprehensive products for our clients,” said Samir Subberwal, Standard Chartered’s global head of wealth solutions, deposits and mortgages, and chief client officer.

The funds, now available in 12 markets, have delivered compound annual growth rates ranging from 5.6% to 15.7% since inception, according to the bank.

Standard Chartered said it will soon roll out the Signature CIO Islamic Funds in the United Arab Emirates and Nigeria, offering portfolios managed by Aditum Investment Management. The launch marks a key step in expanding the bank’s wealth management offerings for clients seeking Shariah-compliant investment solutions across emerging markets.

Abu Dhabi’s Mubadala Investment Company was the most active sovereign investor across the Middle East and North Africa (MENA) during the first nine months of 2025, as the region gains prominence as a hotbed of economic activity and financial strength. 

MENA sovereign investors ploughed $56.3 billion in 97 transactions from the beginning of January through September, Global SWF said in its 2025 MENA Playbook launched on Wednesday.

MENA SWF activity made up about 40 per cent of all global activity, with over a third of the capital deployed in the US, 28% across Europe, including the UK, and 16% domestically. 

Mubadala invested $17.4 billion, followed by Abu Dhabi Investment Office, which spend $9.6 billion. They were trailed by Qatar Investment Authority ($7.6 billion), Saudi Arabia’s Public Investment Fund ($6.2 billion) and Abu Dhabi's ADQ ($4.8 billion).

The funds, dubbed as the Oil Five, in the report, comprised 81% of all sovereign dealmaking across the MENA region, with Abu Dhabi’s three wealth funds funds comprising more than half of it. 

On balance, state-owned investors − which includes SWFs, public pension funds and central banks – spend $8.2 trillion in the nine months through September. While it was a modest increase over 2024’s $8 trillion, MENA state-owned investment is projected to reach $12 trillion by 2030. 

Inbound capital from global state-owned investors into MENA remains limited, despite recent partnerships with Canada’s La Caisse and investments by Singapore’s GIC and China’s CIC.

“The war has made it worse, as Norway’s NBIM, the world’s largest SWF, recently sold $2.8 billion of Israel-related stocks. However, governments across the region - especially in the GCC - are making significant efforts to attract offices of asset managers," the report added. 
 

Saudi Arabian fintech erad has raised $33 million in debt financing to accelerate its expansion in the Kingdom and across the Gulf, aiming to narrow the region’s estimated $250 billion credit gap for small and medium-sized enterprises (SMEs).

The funding round, announced during the Money 20/20 Middle East conference in Riyadh, was led by India’s Stride Ventures with participation from other regional and international investors. The fresh capital will be used to scale erad’s Shariah-compliant, data-driven lending platform and meet rising SME demand in sectors such as retail, food and beverage, healthcare, and e-commerce.

“Access to capital remains one of the primary challenges for SMEs across the region,” said Salem Abu-Hammour, co-founder of erad. “This investment follows a strong period of 5x growth year-on-year as we double down on our expansion in Saudi Arabia.”

Fariha Ansari Javed, partner at Stride Ventures, described the deal as a milestone for Gulf markets. “Debt remains an untapped and powerful asset class in the GCC, offering immense potential to fuel growth for ambitious businesses without the need to dilute equity,” she said.

Launched in 2022, erad provides Shariah-compliant financing to SMEs in Saudi Arabia and the UAE, offering funding within 48 hours through a proprietary platform that analyzes real-time business data to assess risk. The company has already disbursed over $50 million in financing and received funding requests exceeding $532 million, underscoring the scale of unmet demand in the region’s SME sector.

The new debt facility strengthens erad’s ability to offer fast, flexible financing while supporting Saudi Arabia’s broader Vision 2030 agenda of diversifying the economy and empowering entrepreneurs.

Pakistan is set to sign agreements on Wednesday to raise about ($4.6 billion) in Shariah-compliant financing from a consortium of local banks to retire energy-sector debt and meet key conditions of its $7 billion International Monetary Fund (IMF) loan program, officials and market analysts said.

The funds will be mobilized through sukuk (Islamic bonds) and a financing facility agreement to reduce the circular debt plaguing the country’s power sector. A signing ceremony is scheduled at the Prime Minister’s House, according to an invitation from the state-run Central Power Purchasing Agency (CPPA), which buys electricity from producers and manages payments for the national grid.

Analysts tracking the deal said roughly $2.4 billion will refinance existing debt held by the government’s Power Holding Company, while about $2.1 billion will come as fresh loans from 18 participating banks. Analysts further say the government aims to retire its old expensive debt as well as reduce late payment charges. Power producers currently charge late-payment surcharges of KIBOR plus 2.5% to 4.5%, while the new financing will be secured at KIBOR minus 0.9%.

Circular debt has ballooned into one of the country’s most serious fiscal problems, draining public revenue and threatening energy supply. The IMF has made reducing this debt a key benchmark for its ongoing $7 billion program. The government has to show the IMF that it has reduced the outstanding balance of the circular debt, which is a major objective here. 

Analysts said the consumers will ultimately repay the financing through a Power Holding Limited surcharge of Rs3.23 per unit, already included in monthly electricity bills. The deal will unlock liquidity for energy-sector firms, enabling them to invest in infrastructure upgrades and pay dividends. Listed companies expected to benefit include Oil & Gas Development Company, Pakistan State Oil, Pakistan Petroleum, Hub Power Company, Lucky Cement, Fauji Fertilizer Company and Thal Limited.

The financing agreements come as an IMF mission prepares to visit Pakistan for a second review of the country’s economic performance and flood-recovery efforts. By settling circular debt and lowering borrowing costs, the government hopes to strengthen its case for continued IMF support while easing pressure on its fragile power sector.

Saudi Arabia’s fintech company, Tamara, has raised an asset-backed financing facility of up to $2.4 billion from a consortium of global financial companies, including Goldman Sachs, Citi, and Apollo funds, marking the largest deal of its kind in the Middle East.

Announced during the Money 20/20 Middle East conference in Riyadh, the transaction refinances and upsizes a previous $500 million facility arranged by Goldman Sachs. The package includes an initial $1.4 billion and an additional $1 billion available over three years, pending regulatory approvals.

“This asset-backed facility will increase Tamara’s lending power and help the platform grow well beyond its current 20 million customers,” the company said in a statement, highlighting its plans to expand credit and payment products across the region.

The financing is fully Shariah-compliant and will support Tamara’s strategy to diversify its offerings, including new credit and payment services. It also underscores a growing commitment by international investors to Saudi Arabia’s fintech sector, aligning with Vision 2030 and the kingdom’s financial sector development program, which aims to deepen capital markets and spur private-sector growth.

Founded in 2020, Tamara has been one of the leading players in the Gulf’s buy-now-pay-later market, enabling transactions at more than 87,000 merchants. The company achieved unicorn status in late 2023 after a $340 million series C round led by SNB Capital and Sanabil Investments, a unit of Saudi Arabia’s sovereign wealth fund.

With this latest financing, Tamara plans to scale its platform far beyond its current customer base and accelerate regional expansion, further cementing Saudi Arabia’s role as a hub for innovation and inward investment in financial technology.

We speak with Umar Munshi, managing partner at Hasan.VC, a venture capital fund, on the purpose of impactful investing, the value frontier technologies can help unlock and the future of the alternative finance ecosystem.

How do you measure the social impact of HASAN.VC’s investments beyond profitability, to align with the ethical values embedded in the halal ecosystem? 

We have several data points and barometers, which at present, are relatively qualitative, and are spread across the different types and stages of startups we support.  We are very focused on grooming the startup founder community, as well as pay close attention to emerging markets. 

We measure impact across two diverse yet cardinal principles – first, the religiosity of our investments, and their impact on the lives of Muslims, elevating the community in practice and progress. 

With Shariah compliance as a starting point and initial baseline, we focus on tech startups that hold the potential of impacting Muslim consumers. We prioritise enterprises that are halal-centric and impact-driven as well as look into apps such halal travel and tourism services that beckon people of all faiths. 

From a broader lens, we measure impact of technologies and startups that have a purposeful impact on the wider community, help improve employment, create value and efficiency, and enhance literacy and education.  

What opportunities do you see in the $2 trillion halal market, and how is HASAN.VC positioned to capitalize on untapped segments? 

There are several gaps and pain points to fill among practicing Muslim communities, where early-stage startups can strive and offer pragmatic solutions to real-world challenges. In an AI-assisted and -dominated world, I expect an explosion of new startups that will spring up, looking to fill the lacunae and ease the interface between technologies and communities. 

Businesses that are established with a higher purpose of dispensing value and helping curate products and cultures around the core principle of altruism and community, yield tangible benefits. New-age and new-form businesses rooted in halal values that can help alleviate real-world problems remain on Hasan VC’s radar. 

What role do you envision for blockchain and decentralized finance (DeFi) in expanding the halal economy’s digital infrastructure?

Blockchain and decentralized finance (DeFI) can and ideally should, form the backbone of the halal economy infrastructure, which includes, among other elements, payment remittance and market organization components. 

Beyond infrastructure, these frontier technologies can play a critical role in product innovation and delivery. 

The payment process consists of several intermediaries, which render the entire value chain costly. High execution costs coupled with friction among stakeholders, and a dearth of transparency and interoperability has prompted  fintech companies and global think tanks to encourage disruption to the conventional model. 

In the halal economy space, this is especially important because the large majority of natural markets - that constitute outsized Muslim populations - face payment challenges and thus offer huge opportunity for technologies such as blockchain and DeFi to enable seamless domestic and cross-border P2P payment transactions. 

Blockchain and DeFi can also simplify and foster fundraising, undergirding companies and projects to raise capital effectively. Decentralized autonomous organizations can help set the rules of engagement and transparency, streamlining and automating the supply chain.

DeFi can also help tokenize real-world assets as well as physical and virtual assets, offering a new conduit for revenue.

What is the future of the alternative finance market?

The way people will invest and alternative finance markets will function in the future will be very different from how they are today. 

There is a plethora of opportunities in the alternative ecosystem, including the tokenisation of real-world assets, democratising access, enabling wealth creation and allowing people to own a fraction of assets which were otherwise unavailable.

This configuration can be done in a Shariah-compliant manner, within the bounds of an ethical framework, operating on moral structures and intent. Governance systems such as DAOs and smart contracts are helping build trust, forging ways in which consumers can transact in a frictionless, low-cost manner, with a user-friendly interface. 

AI can work as a huge catalyst, processing colossal amounts of data to derive sound investment and pricing decisions as well as curate bespoke investment portfolios based on an individual’s risk profile and income levels. 

I expect a raft of investment options ready to be democratized, enabling alternative finance markets to become the linchpin of tomorrow’s financial landscape.