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Islamic Finance
Qatar links government bonds and sukuk to Euroclear in bid to attract foreign investors

Qatar is opening its domestic debt market to international investors through a new settlement link with Euroclear, the Brussels-based international central securities depository, allowing global buyers to access and settle Qatari riyal-denominated government bonds and sukuk for the first time.

Under the arrangement, Euroclear Bank will provide international settlement services for eligible conventional government bonds and Islamic bonds, while Edaa, Qatar's central securities depository, will continue to serve local investors. Qatar's central bank will retain responsibility for issuing securities and making payments to investors.

"By making Qatari government bonds and sukuk Euroclearable, we are helping to simplify market access, enhance liquidity and strengthen Qatar's appeal to global investors," said Valérie Urbain, chief executive of Euroclear.

Sheikh Ahmed Al-Thani, deputy governor of the Qatar Central Bank, said the move was a practical step towards expanding international access to Qatari government debt instruments. The initiative is expected to improve market liquidity and deepen capital flows into Qatar, and aligns with the country's National Development Strategy 2024–30, which aims to build a more globally connected capital market.

The link comes as Qatar navigates a period of economic pressure. Gross domestic product fell 7% year-on-year to QAR171 billion ($47 billion) in the first quarter of 2026, while public borrowing from local banks has declined by $5 billion since the onset of the Iran conflict. Private-sector credit has grown little since Qatar hosted the 2022 football World Cup.

Qatar holds the world's third-largest proven gas reserves, but liquefied natural gas exports have been disrupted by Iranian missile and drone attacks on its energy facilities and the near-closure of the Strait of Hormuz.

Islamic Finance
UAE, Morocco central banks sign pacts to bolster Islamic finance, interlink payment systems

The Central Bank of the United Arab Emirates (CBUAE) and Bank Al-Maghrib (Central Bank of Morocco) have signed two preliminary agreements to strengthen cooperation in banking supervision and Islamic finance, as well as interlink payment and financial messaging systems. 

The Memoranda of Understanding aims to contribute to stronger cooperation and “enhancing the efficiency of cross-border financial transactions between the two brotherly countries,” a statement by the UAE’s Central Bank read.  

The MoUs were signed by Khaled Mohamed Balama, Governor of the CBUAE, and Abdellatif Jouahri, Governor of Bank AlMaghrib, at the CBUAE headquarters in Abu Dhabi. 

Both central banks will coordinate on supervisory practices and regulations and build institutional capacity, under the first MoU. They will bolster coordination among Shariah governance bodies for Islamic banking, and develop cross-border Shariah-compliant financing, including trade finance and infrastructure investment. 

The second MoU aims to explore interlinking instant payment platforms, national card switches and financial messaging systems in both countries to facilitate the processing and settlement of cross-border transactions and enable mutual acceptance of domestic payment cards.  

The MoU also includes sharing expertise in developing retail and wholesale central bank digital currencies (CBDCs) as well as ways to use them in cross-border payments between the two countries. 

The CBUAE signed a preliminary agreement with the Syrian Central Bank earlier this month to exchange expertise in a number of financial and supervisory fields of common interest.

Read: UAE Central Bank’s support package approaches $1.7bn

Islamic Finance
Halyk Bank seeks Islamic banking licence in Kazakhstan

Kazakhstan's largest bank by assets has secured shareholder approval to apply for a licence to conduct Islamic banking operations, in a move that would give Sharia-compliant finance access to the country's largest banking platform.

Shareholders at Halyk Bank voted to pursue the licence at an extraordinary general meeting on September 25, also approving amendments to the bank's charter to accommodate the planned Islamic banking activities.

Halyk will establish an Islamic Financing Principles Council to oversee compliance with Islamic finance requirements. Shareholders elected three members to serve on the one-year council: Aznan Hasan, a Malaysian academic and Islamic capital-markets specialist; Salim Al Ali, an expert in Islamic finance law and regulation; and Aida Othman, a specialist in Islamic banking law and financial regulation.

The council will assess whether the bank's proposed transactions and products conform to Islamic financing principles, including the prohibition of interest, or riba. No launch date for specific products has been announced. The additional licence is intended to enable the bank to serve retail and corporate customers seeking financing and investment products structured according to Islamic principles.

The application follows Kazakhstan's expansion of its Islamic banking framework, which now allows conventional banks to offer Sharia-compliant services through dedicated Islamic windows rather than requiring them to establish a separate Islamic bank. These operations must be separately accounted for and overseen through an independent governance structure. Kazakh banks became eligible to establish Islamic windows from January 16, 2026.

Fitch Ratings has noted that Kazakhstan's new banking law, enacted in March 2026, expanded the scope of Islamic banking by permitting conventional banks to open Islamic windows, and that the change could increase the availability of Islamic products and support market development in Central Asia.

Kazakhstan's Islamic banking sector has historically been small, with activity before the regulatory changes largely confined to specialised institutions including Zaman Bank and Al Hilal Islamic Bank. Al Hilal was rebranded as ADCB Islamic Bank in 2024 after its parent, Abu Dhabi Commercial Bank, shifted the Kazakh operation towards corporate and institutional banking.

Halyk's planned entry into the market could increase competition in asset-backed financing, leasing, trade finance and investment products structured to Sharia principles. The bank's decision comes as Kazakhstan seeks to strengthen its role as a financial and investment hub between Central Asia and the Gulf, where a larger Islamic banking market could help attract capital from Gulf-based institutions. The immediate next steps are expected to include completing the licensing process, creating separate accounting and operational arrangements for Islamic banking, and developing products subject to approval by the new council and Kazakhstan's financial regulator.

Halal Industry
MIHAS 2026 records $1.66 billion in sales on Day 4

MIHAS 2026, the 22nd Malaysia International Halal Showcase, concluded on September 26 with $1.66 billion (RM6.78 billion) in reported sales value across its exhibition and trade-matching programmes, a 12% increase on the $1.48 billion (RM6.05 billion) recorded in 2025 and about 35.6% above the event's $1.23 billion (RM5 billion) target.

The four-day showcase, held at the Malaysia International Trade and Exhibition Centre (MITEC) in Kuala Lumpur from September 23 to 26, attracted 69,104 visitors from 93 countries — a 37.3% rise on the 50,340 who attended in 2025 and the highest attendance recorded since MIHAS began in 2004. Exhibitors and International Sourcing Programme buyers came from 58 countries.

Read: Malaysia's Mihas 2026 targets $1.23 billion in trade as halal showcase opens in Kuala Lumpur

"The winners recognised today have demonstrated the resilience, creativity and forward-thinking capabilities needed to navigate a rapidly changing global marketplace. Through the MIHAS Awards, we hope to inspire more companies to innovate, embrace technology, compete internationally and contribute meaningfully to the continued growth of the global halal economy," said MATRADE Chairman YB Dato' Seri Reezal Merican Naina Merican.

The largest reported component of sales came from the International Sourcing Programme, which contributed $985 million (RM4.02 billion), up 10.9% from $889 million (RM3.63 billion) a year earlier. The exhibition itself generated approximately $487 million (RM1.99 billion), with the leading product categories including processed food, food technology and packaging, frozen food, and fertilisers and agrochemicals. Malaysian small and medium-sized enterprises generated $152 million (RM620 million) in sales, up 11.3% from $136 million (RM557 million) in 2025. SME participation at the event has grown sharply, rising from 64 companies in 2021 to 339 in 2026, an increase of 429.7%.

Read: Malaysia opens Libya Pavilion at Mihas 2026 as bilateral trade surges

Technology featured prominently in the event's commercial activity. Of the more than 22,000 AI-assisted business appointments generated during the showcase, 324 completed matches were associated with $6.86 million (RM28 million) in reported sales. The AI platform will continue operating until 2027, enabling businesses to maintain connections with potential buyers after the physical event has closed. MATRADE Chief Executive Officer Datuk Abu Bakar Yusof said the result reflected growing opportunities for Malaysian companies to reach international markets, with Agentic AI and the MADANI Digital Trade Platform intended to sustain connectivity between exporters and global buyers beyond the exhibition.

Malaysia's halal exports reached $16.8 billion (RM68.52 billion) in 2025, up 10.9% from $15.1 billion (RM61.79 billion) in 2024. The government is targeting halal exports of $19.6 billion (RM80 billion) by 2030 under the 13th Malaysia Plan.

The MIHAS Awards 2026 presented 13 awards across three core flagship categories: the Excellence Awards; the Innovation, Sustainability & Digitalisation Awards; and, for the first time, the Women in Export, or WiEX, Awards. YB Dato' Seri Reezal said the awards programme had evolved beyond recognising existing achievement. "The MIHAS Awards are no longer only about recognising excellence achieved today. They are also about recognising the capabilities that will shape the halal industry of tomorrow. This year, MIHAS has placed greater emphasis on innovation, sustainability, digitalisation and emerging technologies because these are increasingly important to how businesses compete and create value globally," he said.

The awards placed particular emphasis on companies using artificial intelligence, emerging technologies and digital solutions to improve products, processes and market reach. An independent external auditor was appointed to observe and validate the evaluation process.

Among the recipients were NIMS Adeliciousz Sdn Bhd, Industri Makanan Jati Sdn Bhd and RK Mubaraka Sdn Bhd in the Product/Service Excellence category; Chocofac (Malaysia) Sdn Bhd and Haritage Brands Sdn Bhd under the Emerging Star category; and Zhafou Global Sdn Bhd under the WiEX Product/Service Excellence Award.

The Innovation, Sustainability & Digitalisation Product/Service awards went to HYGR Sdn Bhd, PrintDaddy Sdn Bhd, Betrimex (Coco Investments Pte. Ltd.), Mega Fortris Berhad, Nestlé Products Sdn Bhd and ABIN Manufacturing Sdn Bhd, while Innovate Health Sdn Bhd received the corresponding WiEX award.
Read: Malaysia and Indonesia launch bilateral halal council on Day 3 of MIHAS 2026

Halal Industry
Malaysia and Indonesia launch bilateral halal council on Day 3 of MIHAS 2026

On day 3 of MIHAS 2026, Malaysia and Indonesia announced the establishment of a joint halal council on Friday, laying the groundwork for a broader ASEAN Halal Council due to launch by September 2027, as the event reported $1.2 billion in sales and potential deals after its first two days.

The Malaysia-Indonesia Halal Council was announced at the Global Halal Summit (GHaS) and the Malaysia International Halal Showcase (Mihas 2026) at the Malaysia International Trade and Exhibition Centre (MITEC) in Kuala Lumpur on September 25. The council will hold its inaugural meeting in October 2026, chaired by Indonesia's Badan Penyelenggara Jaminan Produk Halal (BPJPH), with Malaysia's Department of Islamic Development (JAKIM) serving as secretariat. Its focus will be mutual certification facilitation to reduce duplicate procedures and ease cross-border trade.

"Malaysia brings experience in standards, governance, Islamic finance, and trade facilitation. Indonesia brings extraordinary skills, production capacity, and entrepreneurship," said Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi, who officiated GHaS on behalf of the Prime Minister.

The bilateral council stems from negotiations advanced in mid-2026 under a 2023 Memorandum of Cooperation. Ahmad Zahid formally invited BPJPH chairman Haikal Hassan to collaborate on launching the wider ASEAN body in Malaysia in 2027, describing the bilateral framework as a foundation for regional harmonisation. Discussions are also under way on a proposed World Halal Development Council, with Malaysia expected to propose Saudi Arabia as chair and itself as secretary-general when the matter is taken forward.

Mihas 2026, organised by Matrade from September 23 to 26, recorded $1.2 billion in sales and potential deals through its first two days. Ahmad Zahid noted that unified certification frameworks were essential to expanding that commercial reach, pointing out that only 14.7% of Malaysia's halal-certified companies currently export their products. Malaysia recorded RM68.52 billion in halal exports last year and has set a target of RM80 billion by 2030.

Read: Malaysia's Mihas 2026 targets $1.23 billion in trade as halal showcase opens in Kuala Lumpur

"Simplification is only the beginning of that journey," Ahmad Zahid said, citing, according to government statements, RM2.2 billion in sales at Mihas Dubai in 2024 and RM3.2 billion at Mihas Shanghai in 2025, as evidence of what coordinated international outreach can deliver.

GHaS, hosted by JAKIM, serves as Malaysia's platform for halal diplomacy, governance and capacity-building, bringing together certification bodies, government agencies, Islamic scholars, policymakers and industry leaders. The summit drew senior representation from ministries and agencies across Malaysia's halal ecosystem, reflecting the government's commitment to aligning Shariah governance with international trade promotion.

Mihas 2026 also saw the signing of a Letter of Intent between Matrade and JAKIM establishing the Halal Development Officer programme under the Malaysia Halal Global Nexus initiative. The programme will empower Matrade officers stationed overseas to advise international businesses on Malaysia's halal ecosystem, strengthen recognition of Malaysian certification abroad, and support halal export growth.

Read: Malaysia opens Libya Pavilion at Mihas 2026 as bilateral trade surges

Halal Industry
Malaysia opens Libya Pavilion at Mihas 2026 as bilateral trade surges

Malaysia launched a dedicated Libya national pavilion at the 22nd Malaysia International Halal Showcase (Mihas 2026) on Thursday, formalising a trade corridor between ASEAN and North Africa as bilateral trade between the two countries reached RM1.03 billion in 2025, up 38.9% on the previous year.

The Libya Pavilion, unveiled at the Malaysia International Trade and Exhibition Centre (MITEC) in Kuala Lumpur on September 24, is jointly organised by the Tripoli Chamber of Commerce, Industry and Agriculture and the General Authority for Exhibitions and Conferences. It is designed to give ASEAN businesses a gateway into Mediterranean and North African markets, while offering Libyan enterprises direct access to Malaysia's halal certification, quality assurance and trade infrastructure.

"By bringing Libya's growing private sector into Malaysia's halal ecosystem — our certification, quality assurance, and trade infrastructure — we can build supply chains strong enough to serve the whole Islamic world," said Datuk Seri Reezal Merican Naina Merican, chairman of Malaysia External Trade Development Corporation (Matrade), at the launch.

For the first eight months of 2026 alone, Malaysia's exports to Libya stood at RM106.5 million, a 73.4% year-on-year increase, comprising mainly machinery, equipment and parts, chemicals and chemical products, and palm oil and palm oil-based agricultural products. The pavilion follows Matrade's Export Acceleration Mission to Tripoli in May 2024, which involved 10 Malaysian companies and generated nearly RM250 million in business opportunities, as well as Malaysia's participation in the Tripoli International Fair earlier in 2026.

Reezal added that Matrade was committed to facilitating two-way engagement. "Matrade stands ready, arms wide open, to help Libyan enterprises step into ASEAN, just as we hope more Malaysian companies will seize the opportunities Libya offers," he said.

Read:
Malaysia's Mihas 2026 targets $1.23 billion in trade as halal showcase opens in Kuala Lumpur

The Libya pavilion launch also supports Malaysia's proposal to establish an ASEAN Halal Council by September 2027, an initiative aimed at standardising halal trade frameworks across the region.

The Libya corridor is part of a broader push by Malaysia to extend its halal infrastructure internationally. On September 22, Malaysia's Islamic Tourism Centre (ITC) signed memoranda of understanding with two JAKIM-recognised halal certification bodies — Korea Muslim Federation (KMF) and FAMBRAS Halal Certificação Ltda (FAMBRAS Halal) — to support the rollout of Malaysia's Muslim-Friendly Tourism and Hospitality Assurance and Recognition programme in South Korea and Brazil.

The ITC also entered a strategic collaboration with Maybank Islamic Berhad to support tourism and hospitality businesses through financing and banking solutions, capacity building, halal facilitation, market access and promotional opportunities.

Separately, on the same day at MITEC, Nestlé Malaysia and the Halal Product Research Institute at Universiti Putra Malaysia signed a memorandum of understanding to strengthen halal education through a programme called HalSTEM, which integrates science, technology, engineering and mathematics principles with halal industry training. Under the initiative, students will gain hands-on exposure to halal certification processes using microscopy, artificial intelligence applications, water filtration, soap production and nutritional calculations — linking classroom learning to real-world industry practice.

Malaysia's Minister in the Prime Minister's Department for Religious Affairs, Dr. Zulkifli Hasan, said the HalSTEM collaboration reflected a shift in how the private sector understands its obligations. "We want to correct that economic theory, where today we prove that the social responsibility of a corporation or companies is not only to maximise profit, but also to fulfil the needs of society," he said, citing the economic theory that the primary social responsibility of a corporation is to make a profit.

Nestlé Malaysia said the programme was rooted in its broader halal commitment. Beyond regulatory compliance, the company said its halal standards are grounded in science, quality, safety and ethical responsibility, and that the initiative was intended to inspire young Malaysians to consider careers in the halal STEM sector.

Read: Malaysia and Indonesia launch bilateral halal council on Day 3 of MIHAS 2026

OIC Economies
Eagle Hills signs $12 billion deal to develop Maldives waterfront destination

The Government of Maldives and Abu Dhabi-based developer Eagle Hills have signed a commercial terms agreement for a $12 billion integrated waterfront and marina development in the Ras Malé area, in what would be the largest single foreign investment in the country's history.

The agreement, announced on September 21, sets out the shared vision and principal commercial terms for the Maldives Waterfront and Marina project, with detailed terms to be finalised as development progresses across multiple phases.

"For the Maldives, this is the largest investment programme in our history — billions of dollars of foreign investment moving through our banking system, creating jobs, homes for Maldivian families, and direct revenue to the State from every sale, achieved without tax giveaways and without government borrowing," said Dr. Abdulla Muththalib, Minister of Infrastructure, Housing and Urban Development.

The development is planned for reclaimed land in the Ras Malé area and will include hotels and resorts, premium and branded residences, a marina, waterfront promenades, retail, dining, wellness, entertainment, education, healthcare and community infrastructure. Properties will be offered under a leasehold framework of up to 99 years, with the term renewed upon each transfer through sale or inheritance.

Eagle Hills chairman Mohamed Alabbar said the project would build on the Maldives' existing international appeal. "Our ambition is to build responsibly on that strength and create something world-class," he said.

The project is expected to generate tax revenues, stimulate demand across hospitality, construction, retail and marine services, and create direct and indirect employment. Eagle Hills has committed to no further dredging beyond the existing reclaimed land, with independent marine monitoring to accompany construction throughout.

Dr. Muththalib said the development was designed to establish real estate as a structural pillar of the Maldivian economy alongside tourism. "It is a decisive step on our path to becoming a high-income country by 2040," he said.

Halal Industry
Malaysia's Mihas 2026 targets $1.23 billion in trade as halal showcase opens in Kuala Lumpur

Malaysia's annual halal trade fair opened on Wednesday under the theme "Shaping Trust, Driving Resilience," with 1,700 companies, 50,000 expected visitors and a target of $1.23 billion in transactions over four days, as the sector positions itself to capture a larger share of a global halal market projected to reach $10 trillion by 2030.

The 22nd Malaysia International Halal Showcase (Mihas 2026) began at the Malaysia International Trade and Exhibition Centre (MITEC) in Kuala Lumpur on September 23, drawing exhibitors from 58 countries and visitors from 45 across 2,000 booths. The event, organised by Malaysia External Trade Development Corporation (Matrade) under the Ministry of Investment, Trade and Industry, runs through Saturday.

"I'm targeting to keep the sales to be generated from this event totalling around 5 billion ringgit," said Datuk Seri Reezal Merican Naina Merican, Matrade chairman, at the opening ceremony. "We need a bit of time because we've got to segregate it — we have 58 countries participating."

The RM5 billion target is anchored by Mihas' International Sourcing Programme, which will host more than 4,000 pre-arranged business-matching sessions between around 600 Malaysian exporters and 450 international buyers, including 50 classified as high-value premium purchasers. That group collectively represents nearly RM700 billion in combined annual revenue, with procurement spanning food and beverage, specialised ingredients, biotechnology, Islamic finance, logistics and education.

Read: Malaysia opens Libya Pavilion at Mihas 2026 as bilateral trade surges

The 2026 edition covers 14 sectors across the halal economy, ranging from food and beverages, pharmaceuticals, cosmetics and personal care, and modest fashion to halal logistics, Islamic finance, technology, services and Muslim-friendly tourism. For the first time, an AI-powered system is being deployed to help delegates with business discovery, venue navigation and meeting management.

First-time participating economies include Comoros and Rwanda. Northeast Asia and ASEAN make up the largest buyer contingents, with Africa growing as a non-traditional market. A virtual sourcing component runs from April to November 2026, with up to 150 international buyers participating remotely.

Reezal highlighted the expanding scope of halal standards beyond individual products to cover entire supply chains — including ingredients, packaging, logistics and transportation — and pointed to New Zealand's livestock and meat industry as evidence of halal adoption in countries without large Muslim populations. He also flagged Türkiye as a country with significant potential in the sector, citing its geopolitical position, industrial capacity and technological advancement. 

"Türkiye has got an enormous opportunity to play one of the leading roles in the halal industry because of the capacity they have and the goodwill they enjoy in the eyes and hearts of the world population, especially the Muslim population," he said.

The showcase features several thematic zones, including a 'Women in Export Pavilion' with 80 exhibitors — 60 Malaysian and 20 international — a Knowledge Hub, MIHAS Awards, daily modest fashion runway presentations, and live culinary demonstrations with 32 chefs participating in the Mihas Kitchen over the four days.

Reezal said discussions are under way to take a future Mihas edition to South Asia. The event was held in Dubai in 2024 and Shanghai in 2025. "I'm thinking of bringing it to what you could call the Indian subcontinent — India, Pakistan and Bangladesh — to expand the horizon of the halal industry in that region," he said.

On the broader trade environment, Reezal said Malaysia's policy of active neutrality positions it well amid ongoing shifts in global supply chains. "We are ranked 23rd as the largest trading and exporting nation. The largest FDI to our country is still the United States. So while we are doing business with the two big superpowers, we are embracing the philosophy of active neutrality," he said.

First launched in 2004, Mihas has grown into an international platform connecting businesses across the halal economy.

Read: Malaysia and Indonesia launch  bilateral halal council on Day 3 of MIHAS 2026

Islamic Finance
UK's Ayan Capital raises $100 million ahead of banking licence application

London-based Islamic car financing provider Ayan Capital has secured a senior Shariah-compliant facility of up to $100 million (£75 million) to fund its growth plans as it looks to diversify its offerings. 

The facility will fund new originations, helping reduce Ayan's cost of funding while supporting competitive pricing. The company intends to raise a Series A round in the coming months to fund its banking licence application, it said in a statement on Thursday.

Backers include private equity firm Cur8 Capital, UK-headquartered Empakt Ventures, venture capital fund IT Park Ventures and Caucasus VC, an early-stage investment fund.

The company secured up to £25 million in Shariah-compliant financing facility last April to strengthen its foothold in the sector. 

Read: UK’s Ayan Capital secures £25m to democratize halal financing

Ayan Capital buys and owns each vehicle under its Ijara wa Iqtina structure, carrying ownership risk. Customers pay fixed monthly rentals and take ownership at the end with independent Shariah advisers conducting an annual review. 

Ayan has received applications from more than 150,000 prospective customers since its inception in early 2024. It estimates that Muslims in the UK hold around $90 billion in bank deposits and take $40 billion in financing a year.

“Most still rely on conventional banking, though 85% say they would use halal products if priced the same,” the statement read. 

"Over time we want to build a challenger bank that is open to everyone, whether they are looking for halal finance or not, and that raises the bar for what customers should expect," said Abdullo Kurbanov, CEO and co-founder of Ayaan Capital. 


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