News wrap for July: Egypt's aiBANK collabored with InstaPay; establishment of a digital Islamic bank; & others

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

Editor's note: Lenders across the world are becoming increasingly aware of digital transformation, which has led many to innovate as well as tie up with key innovation and channel partners for greater visibility, customer service as well as growth.

Egypt's aiBANK collabored with InstaPay, while UAE's Aafaq Islamic Finance joined hands with Network International to push forth their digital transformation agendas.

Two Malaysian financial companies also partnered to form a joint venture entitiy to establish a digital Islamic bank. 

Company News – Malaysia
Malaysia's Aeon Credit, Aeon Financial form JV for digital Islamic banking ops 
Malaysia’s Aeon Credit Service (M) Bhd and Aeon Financial Service Co Ltd have created ACS Digital Bhd, a joint venture aiming to establish a digital Islamic bank.

The new entity, incorporated with an initial share capital of $2,380, is expected to start operations by April 2024.

ACS Digital will uphold the Ministry of Finance's conditions, ensuring a minimum 30% stake held by Malaysian shareholders. (New Straits Times)

Company News – UK
Al Rayan Bank of Qatar opens new London head office 
Al Rayan Bank, the UK’s foremost Islamic bank, has inaugurated its new 10,000sq ft headquarters in West London.

The five-storey, 18th-century building has undergone extensive renovations, offering state-of-the-art facilities for customers and employees.

The new office is set to house Al Rayan's commercial and premier banking services, its executive management, and act as a meeting spot for its parent company, Masraf Al Rayan. (Zawya)

Company News – Canada
Mackenzie Investments, Primerica Financial Services launch Shariah-compliant mutual fund
Mackenzie Investments has unveiled the Mackenzie FuturePath Shariah Global Equity Fund, a mutual fund offering access to global, Shariah-compliant investing.

The fund, certified by advisory firm Ratings Intelligence, will be managed by Mackenzie's Global Quantitative Equity Team, and will be accessible exclusively to Primerica clients across Canada. (Yahoo Finance)

Company News – Europe
HAQQ and Brighty App, A strategic alliance to propel shariah-compliant fintech innovation in Europe
HAQQ, an ethical and Shariah-compliant blockchain provider, has joined forces with Europe-based fintech, Brighty App, which offers IBAN accounts, cryptocurrency wallets, and more.

The collaboration seeks to penetrate the European Islamic finance market, with Brighty App adopting HAQQ's blockchain tech for a wider customer base. Services will include accounts in Islamic Coin and potential staking features, letting users transact in Shariah-approved tokens. (Zawya)

Company News – Egypt
ADIB Egypt launches first microfinance company that complies with Islamic Sharia
Abu Dhabi Islamic Bank (ADIB) Egypt has inaugurated its first Sharia-compliant microfinance company after securing a license from the Financial Regulatory Authority.

Distinct in offering all Islamic law-compatible financing products in the microfinance arena, the entity bolsters the bank's financing capabilities. (Daily News Egypt)

Company News – Russia
Russian legislators approve Islamic banking pilot
Russia's State Duma has greenlit legislation introducing Islamic banking in Chechnya, Dagestan, Tatarstan, and Bashkortostan for a trial phase of two years from September 1.

This decision, under consideration since the previous year, sets forth an "experimental legal regime" in the named regions. Depending on the pilot's outcomes, the government and the Bank of Russia might extend this initiative to additional regions. (Central Banking)

Operational Developments – Egypt
Egypt's aiBANK joins InstaPay as part of its digital transformation strategy
Egypt's aiBANK has teamed up with instant payment network app, InstaPay, enabling customers to transfer money in real time via their smartphones.

The move is a part of the bank's efforts to expand its digital footprint and improve customer experience. In line with Egypt's push for digital transformation and financial inclusion, the InstaPay app, the first mobile application to be licensed by the Central Bank of Egypt for IPN payment services, offers secure, instant financial transfers. (Zawya)

Operational Developments – UAE
UAE's Aafaq Islamic Finance partners with Network International for digital transformation
Aafaq Islamic Finance is set to speed up its digital development through a partnership with Network International, a card processing services provider.

Aiming to streamline its financing procedures, Aafaq Islamic Finance will employ Network International's comprehensive card processing solutions. (The Paypers)

Investment – Saudi Arabia
East Pipes Integrated obtains over $266m in financing from Banque Saudi Fransi
East Pipes Integrated Company for Industry has secured a $293 million Sharia-compliant working capital loan from Banque Saudi Fransi.

The agreement, which lasts for 459 days, will be used to finance the working capital of some projects and is backed by a promissory note worth $306.5 million.

The move comes after East Pipes Integrated inked deals with the Saudi Arabian Oil Company (Aramco), NEOM, and PETROJET Company earlier this year. (Zawya)

Investment – UAE
Islamic Coin raises $200m from ABO Digital
Shariah-compliant cryptocurrency Islamic Coin has secured $200 million in funding from ABO Digital, an investment arm of Alpha Blue Ocean.

This latest investment pushes the total funding for the cryptocurrency firm to $400 million, making it one of the largest fundraisers in crypto history, surpassing Circle, BlockFi, and Solana. (Wamda)

Investment – Indonesia
Indonesia raises $400m from Islamic debt auction
Indonesia's government has raised $400.4m from an Islamic debt auction, hitting its target and illustrating ongoing investor faith in the country's Islamic bond market.

The auction drew 34 trillion Indonesian rupiah in bids, down from 41.38 trillion collected in the previous round. Proceeds will be used to fund infrastructure projects and social programmes. (The Halal Times)