Islamic finance roundup: Kuwait Finance House expands into Egypt
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)
