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 9, 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. (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)
UAE
Crypto.com partners with Dubai Islamic Bank for Sharia-compliant Web3 services
Crypto.com and Dubai Islamic Bank have signed a memorandum of understanding to develop digital asset solutions that comply with Islamic financial principles.
The focus will be on tokenizing real-world assets, including sukuk, using the Cronos Chain.
Mohammed Al Hakim of Crypto.com and Musabbah Al Qaizi of DIB emphasized the partnership's potential to enhance products for customers in the UAE and GCC, merging Islamic banking with innovative digital technology to set new standards for Sharia-compliant financial solutions. (Criptonizando)
UAE
Siraj Finance signs agreement with Azentio
Siraj Finance, an Islamic finance company in the UAE, has partnered with Azentio to implement a core and digital banking solution.
The collaboration aims to enhance Siraj Finance's operations and digitize its product offerings. (PR Newswire)
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)
ESG Developments
Qatar
Masraf Al Rayan and HSBC complete first Islamic ESG KPI-linked repo transaction
Masraf Al Rayan and HSBC completed the first Islamic ESG KPI-linked repurchase agreement, facilitating Al Rayan Bank’s transition towards sustainable finance.
The agreement includes sustainable performance targets (SPTs) Masraf Al Rayan aims to achieve in the next three years. (Zawya)
Trade Developments
Pakistan
Cambridge IIF and NIBAF sign MoU to advance Islamic finance
The Cambridge Institute of Islamic Finance has partnered with Pakistan's National Institute of Banking and Finance through a memorandum of understanding to enhance Islamic finance.
The collaboration aims to improve research, training, and leadership development. (Zawya)
