Saudi-based lender Islamic Development Bank (IsDB) has approved more than $1.4 billion in funding to advance sustainable development goals across select member countries. 

The development projects will cover food security, health, education, transport, sanitation, and urban development sectors in eight IsBD member states, the lender said in a statement. 

The approvals include 500 million euros to finance a health infrastructure development project in Türkiye to address accessible and resilient healthcare services. Another undertaking to improve municipal services in water and wastewater management as well as transport services in the country has won a financing facility worth 200.20 million euros.

The IsDB will also provide $241.30 million to build five climate-resilient bridges in Bangladesh's Mymensingh division to help reduce vehicle operating costs, travel time, and greenhouse gas emissions.

Nigeria will receive $52.38 million to enhance food security in the Zamfara state and $50 million to improve healthcare infrastructure and medical education in Sokoto State.

Uzbekistan’s health sector will receive $92.98 million to enhance healthcare services in the Kashkadarya region, with an additional $10 million to support an oncology services project.  

A 141.44 million euros financing facility for Togo in West Africa, will support a road project which will improve travel between Ghana, Togo, and Benin. 

The IsDB approved a 36.80 million euros joint facility from IsDB and ISFD to help enhance the capacity and efficiency of the country’s educational system. Furthermore, 35.07 million euros was approved for a Burkina Faso project to improve rainwater drainage, address flooding in the capital and help upgrade public sanitation and healthcare. 

A $30.48 million IsDB approval will help alleviate poverty and enhance food and nutrition security of rural households in Sierra Leone. 
 

The government of Ras Al Khaimah has listed a $1 billion sukuk on Nasdaq Dubai. 

The 10-year senior unsecured sukuk, which was listed at a profit rate of 5.038% on March 5, is due in 2035. It has been issued under the $2 billion trust certificate issuance programme of RAK Capital, a special-purpose vehicle affiliated with the RAK government. 

The order book exceeded $4.4 billion, displaying strong investor demand. 

“Listing on Nasdaq Dubai provides us with a transparent and well-regulated platform to engage with global investors," said Mohammed Sultan Al Qadi, managing director of the Investment and Development Office of Ras Al Khaimah. 

Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market said that with government issuances making up 62% of Nasdaq Dubai's listings, this reinforces its position as the leading exchange for public fundraising. 

The latest listing follows RAK Capital's $500 million sukuk issuance that matured in October 2018 and the currently listed $1 billion Sukuk issued in 2015, which will mature by March-end.

The total value of sukuk listed on Nasdaq Dubai now exceeds $92.7 billion. The value of overall debt securities currently listed on exchange has reached $136.2 billion across 157 issuances.
 

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

Editor's note: There is an undisputable rise in demand for Shariah-compliant services, which is prompting banks across the world to take notice.

Pakistan's Samba Bank Limited recently announced its intent to convert to an Islamic banking institution, falling in lockstep with the country's overall ambition to usher in an interest-free banking system.

Meanwhile, an IsDB entity is looking to boost SME financing in Bangladesh.   

Company News

UAE

AlHuda CIBE launches internship program for Islamic finance

The AlHuda Centre of Islamic Banking and Economics (CIBE) has launched its 8th Global Virtual Internship Program, aimed at enhancing global expertise in Islamic banking and finance.

The program, which commenced during the Covid-19 pandemic, has drawn 250 participants from 40 countries, providing a two-month educational experience for professionals and students in various financial sectors such as banking, insurance, and capital markets. (Zawya)

Pakistan

Samba Bank announces plans to transition to Islamic banking

Pakistan-based Samba Bank Limited, a subsidiary of the kingdom's Saudi National Bank, has announced its plans to transition from a conventional bank to an Islamic one.

The decision was disclosed in a notice to the Pakistan Stock Exchange and involves submitting a tentative conversion plan to the State Bank of Pakistan.

The move is part of a broader trend in Pakistan, where Islamic banking has experienced substantial growth due to increased demand, regulatory backing, and the availability of Shariah-compliant financial products. (Business Recorder)

Saudi Arabia

Universal Postal Union explores collaboration with IsDBI 
The Islamic Development Bank Institute (IsDBI) met with a delegation from the Universal Postal Union (UPU) to explore collaboration on enhancing postal financial services using Islamic finance principles.

The meeting, attended by representatives from both organizations, focused on creating innovative financial solutions appropriate for IsDB's member countries and addressing the needs of customers in diverse geographic areas. (Zawya)

Global

Xlence launches Shariah-compliant trading product 
Xlence, an international CFD broker, has launched Islamic/Swap-Free accounts tailored for traders adhering to Islamic finance principles. These accounts comply with Sharia law by eliminating interest-based transactions. (Mondovisione)

Investment

Bangladesh

ITFC signs Murabaha agreement to boost SMEs financing in Bangladesh

The International Islamic Trade Finance Corporation (ITFC), part of the Islamic Development Bank Group, signed a Master Murabaha Agreement with Mutual Trust Bank in Dhaka to boost trade finance support for SMEs and the private sector in Bangladesh.

This agreement will enhance Mutual Trust Bank's capacity to support cross-border trade and SME growth, reflecting a shared commitment to economic development in the country. (Zawya)

Saudi Arabia / Uzbekistan

ICD, Turonbank strengthen partnership to support private sector growth

The Islamic Corporation for the Development of the Private Sector (ICD) and Turonbank have partnered to boost Uzbekistan's private sector by signing a $30 million Islamic financing facility.

The initiative is focused on supporting small-and-medium-sized enterprises (SMEs) through financial resources aimed at fostering project launches and expansions, ultimately enhancing sustainable economic growth and resilience in Uzbekistan. (Zawya)

Saudi Arabia, Indonesia, Malaysia and the UAE have produced more than half of the 490 Islamic fintech firms present globally, a new report has revealed. 

A total of 248 Islamic fintech firms are based out of the four countries, constituting a shade over half of the global Islamic fintech pool, according to the Global Islamic Fintech Report (GIFT) 2024/25, co-produced by DinarStandard and Elipses.  

The UK, with 52 firms, rounded off the top five.

Meanwhile, the top ten countries, including Qatar (26), United States (21), Pakistan (19), Singapore (13), and Egypt (11), house 79% of the Islamic fintech enterprises globally. 

Saudi Arabia, Iran, Malaysia, the UAE, Indonesia and Türkiye were the largest markets in terms of estimated transaction volumes in 2023/24, comprising 83% of the global Islamic fintech market. Each country had an estimated market size of more than $7.5 billion during the same period, the report identified. 

The global Islamic fintech market was estimated at $161 billion in 2023/24, and is projected to reach $306 billion by 2028, at a compound annual growth rate (CAGR) of 13.6%. It represents a modest 1.4% of the global fintech market size at present, but its growth rate eclipses the conventional fintech CAGR of 11%. 

Abdul Haseeb Basit, co-founder and principal of Elipses said that the rise of Saudi Arabia as the dominant hub, overtaking Malaysia for the first time sets the stage for regional dominance in the GCC. Other regional players such as the UAE, Qatar, Kuwait and Bahrain are already playing their part. 

“Whilst emerging technology areas such as AI and digital assets/blockchain are hot topic areas, challenges persist with access to capital for the sector. Addressing these in time to capitalise on emerging tech areas will be key to the sector’s future growth trajectory.”

The report published the GIFT Index for 2024/25, listing Saudi Arabia, Malaysia, Indonesia, the UAE and the UK, as the top five Islamic fintech conducive ecosystems globally. 

The index used 19 indicators across five different categories for each country, namely talent, regulation, infrastructure, Islamic fintech market & ecosystem, and capital.

In addition to the top five strongest ecosystems, the report identified Bahrain, Pakistan, Qatar and Türkiye as ecosystems growing in conduciveness to Islamic fintech.

The study, which surveyed Islamic fintech practitioners and service providers, identified key obstacles that stymie sector growth.

These include capital access, regulatory compliance requirements, lack of customer education, geographic expansion complexities and the customer acquisition associated costs.  

“With Islamic fintech fast moving from a niche segment to a mainstay of Islamic finance, the report illuminates both the challenges and the extraordinary opportunities ahead,” said Rafi-uddin Shikoh, founder of DinarStandard. 

“Access to capital remains a defining challenge. We also observed a widening gap between market demand and service provision, particularly in South Asia and emerging jurisdictions.”
 

As the blessed month of Ramadan approaches, Muslims around the world are busy preparing their hearts, minds, and homes for this sacred time.

Financial preparation, whether through budgeting or exploring options like The LifeDAO (TLD), can ensure a smoother and more meaningful Ramadan.

It is a month of reflection, devotion, and generosity - a time when we not only seek closeness to Allah (SWT) but also fulfill our obligations to others, including Zakat, the third pillar of Islam, which many Muslims prefer to give during Ramadan to maximize rewards.

Let’s explore actionable steps to get your finances in order before Ramadan begins.

Step 1: Understand your Zakat obligations
The first step in preparing financially for Ramadan is to understand your Zakat obligations.

Zakat is a mandatory almsgiving that is 2.5% of your qualifying wealth if it exceeds the nisab threshold (the minimum amount of wealth that makes one eligible to pay Zakat).

Calculate your Zakat accurately by reviewing your financial assets, including savings, gold and silver, investments, business inventory and rental income.

There are several online Zakat calculators and Islamic finance experts who can guide you through this process.

Having a clear understanding of what you owe ensures you give the correct amount and fulfill your obligation properly.

Step 2: Review/adjust your Budget
With Ramadan only a few days away, now is the time to revisit your monthly budget.

Ramadan often comes with additional expenses, such as special meals for Iftar, increased utility bills for hosting gatherings, or additional contributions to mosques and charities. To accommodate these costs:

• Identify areas where you can cut back on non-essential spending.
• Set aside a specific amount for Ramadan-related expenses.
• Allocate a dedicated fund for Zakat and extra sadaqah (voluntary charity).

By making these adjustments now, you can avoid financial stress during the holy month and focus on your worship and spiritual growth.

Step 3: Prioritize paying off debts
One of the prerequisites of paying zakat is that the wealth you give must be free from debt. If you have outstanding obligations, prioritize settling them as soon as possible.

This ensures your Zakat calculations are accurate and aligns with the Islamic principle of financial responsibility.

Start by:

• Listing all your debts, including credit cards, loans, and personal obligations.
• Paying off high-interest debts first.
• Creating a manageable repayment plan for long-term debts.

Clearing your debts lightens your financial burden and gives you peace of mind as you enter Ramadan.

Step 4: Plan giving strategically
Giving Zakat in Ramadan is a common practice due to the multiplied rewards of charity during this month.

However, to make your giving as impactful as possible:

• Research organizations and causes in advance. Focus on reputable charities that align with your values.
• Diversify your giving. Consider splitting your Zakat among different causes, such as local communities, relief efforts, or education initiatives. 
• Use online platforms to automate your donations, ensuring timely and consistent giving throughout Ramadan.

By planning ahead, you can make a meaningful difference while ensuring your contributions reach those who need them most.

Step 5: Set up an emergency fund
While Ramadan is a month of giving, it’s also essential to prepare for the unexpected. Life is unpredictable, and having an emergency fund ensures you can handle unforeseen expenses without compromising your financial stability.

• Aim to save at least three to six months’ worth of living expenses.
• Keep your emergency fund in a halal savings account or liquid asset.
• Avoid dipping into this fund unless absolutely necessary. 
• Explore ways to protect your family’s financial future.

Step 6: Involve your family
Ramadan is a time for community and family, and financial preparation can be a collaborative effort. Involve your spouse, children, or extended family in the planning process to:

• Teach younger family members about the importance of zakat and financial responsibility.
• Share the joy of giving by involving children in selecting causes or charities.

This strengthens family bonds and instills values of generosity and accountability in the next generation.

Step 7: Make Dua for Barakah in Your Wealth
Finally, remember that wealth is a trust from Allah (SWT), and barakah (blessing) in your wealth comes through sincere intentions and responsible management.

As you prepare for Ramadan, make dua for guidance and barakah in your financial matters.

Prophet Muhammad (peace be upon him) said, “Charity does not decrease wealth…”.

Trust in this promise and approach your financial preparations with a heart full of faith and gratitude.

The path forward
Ramadan is an opportunity not just for spiritual renewal but also for financial clarity and responsibility. Preparing financially for Ramadan isn’t just about numbers; it’s about aligning your actions with your faith. 

By understanding your Zakat obligations, adjusting your budget, clearing debts, and planning your giving, you can ensure this sacred month is as impactful as possible for yourself and those in need.

Sharene Lee is chief operating officer and Ameerah Langer is brand & communications head at Takadao

Shariah-compliant buy-now-pay-later app Tabby has raised $160 million in a Series E funding round, more than doubling its valuation to $3.3 billion. 

The latest funding round was led by Hong Kong-based investment advisory firm Blue Pool Capital and Saudi Arabia’s Hassana Investment Company, with participation from STV and Wellington Management.

Funds raised in the latest round will help accelerate the expansion of Tabby’s financial services, including digital spending accounts, payments, cards, and money management tools. 

“We're focused on creating tangible impact - helping people take control of their finances with tools that are accessible, effortless and built for their everyday lives,” said Hosam Arab, CEO of Tabby. 

Tabby’s valuation has more than doubled from its last funding round in October 2023, in which it raised $200 million in equity financing at a valuation of over $1.5 billion. 

Since its last funding round, the company has almost doubled its annualized transaction volumes to top $10 billion. Tabby has more than 15 million registered users and over 40,000 sellers.

The company has introduced a string of initiatives, including Tabby Card for flexible payments beyond checkout, a subscription as well as a buyer protection program. In addition to evolving its core BNPL offering with longer-term payment plans, it recently acquired Saudi-based digital wallet, Tweeq. 

The financial services app is looking to pursue an IPO in Saudi Arabia. 

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

Editor's note: Kuwait Finance House has forayed into Egypt, following its acquisition of Ahli United Bank, while a Qatari lender is looking to upgrade its core banking solution for greater efficacy. 
 

Company News

Qatar

Al Rayan Bank selects Finastra to upgrade core banking solution 

Finastra, a global provider of financial software, has been selected by Al Rayan Bank, a Islamic bank in Qatar, to implement a new core banking solution.

This next-generation solution aims to streamline operations, reduce costs, and enhance customer functionality.

Hamad Al Kubaisi, group chief HR officer at Al Rayan Bank, emphasized the importance of this upgrade for providing agile, Sharia-compliant digital services that meet customer needs. (Zawya)

Malaysia

Bank Islam to set up JV to sell financial tech products, services

Bank Islam Malaysia Bhd has announced a joint venture with local firm Reldyn Tech Sdn Bhd, investing a total of 9 million Malaysian ringgits, with Bank Islam contributing 40% and Reldyn Tech 60%.

The joint venture, named Finodyn Sdn Bhd, will provide finance-related digital technology products and services, focusing on Sharia-compliant solutions for businesses through a B2B model. (The Edge)

Kuwait / Egypt

Kuwait Finance House expands into Egypt with Ahli United Bank acquisition
Kuwait Finance House (KFH) has launched operations in Egypt following its acquisition of Ahli United Bank Bahrain in 2022.

The bank has transformed into a fully Sharia-compliant institution as of December 2023 and merged with Ahli United Bank Kuwait in February 2024, rebranding its Egyptian branch as KFH Egypt. (Zawya)

Investment

Africa

Africa Finance Corporation raises funds 

Africa Finance Corporation (AFC) has successfully raised $400 million through a Sharia-compliant commodity murabaha facility, its first Islamic finance transaction since 2017.

Originally launched at $300 million, the facility was increased due to strong investor demand, leading to 47% oversubscription. 

Joint lead arrangers included Emirates NBD Capital and First Abu Dhabi Bank. (MEED)

Trade Development

Türkiye / Malaysia

Erdoğan highlights potential for Islamic finance leadership with Malaysia

During a joint appearance with Malaysian Prime Minister Anwar Ibrahim, Erdoğan praised Türkiye's economic resilience and the growth of bilateral trade, highlighting potential collaboration in defense, renewable energy, and Islamic finance.

As they approach the 60th anniversary of diplomatic relations in 2024, Erdoğan celebrated the historical ties between Türkiye and Malaysia, emphasizing their partnership's strategic nature and the establishment of the High-Level Strategic Cooperation Council, with the business community seen as vital to their collaboration. (Dogruhaber)

Egypt has secured $1.6 billion in loans from Saudi Arabia-based Islamic Development Bank (IsDB), to drive the country’s economic growth and bolster its private sector.

The International Islamic Trade Finance Corporation (ITFC), a member of the IsDB, has signed a $1.5 billion annual program with Egypt, which is part of a five-year framework valued at $6 billion, to enhance Egypt's growth across critical sectors including energy, food security, and small and medium-sized enterprises (SMEs). Of the $1.5 billion, $700 million from the ITFC will be allocated to the General Authority for Supply Commodities. 

Since 2008, ITFC has committed over $18.7 billion to Egypt, financing key sectors such as energy, food security, and supporting SMEs and women entrepreneurs.

Egypt has also secured $100 million in new financing in the form of a country work program signed with the Islamic Corporation for the Development of the Private Sector (ICD), IsDB’s private sector arm. The funding will be allocated to financial institutions to finance SMEs as well as large private sector companies operating in strategic sectors, particularly industrial and agricultural, ICD said in a statement. 

ICD, since inception, has provided Egypt with a total of $315 million in financing, including support for private sector companies, financial lines for banks, and direct investments in key sectors.