Islamic finance roundup: Saudi secures Shariah-compliant credit facility
Here's a roundup of key developments across the Islamic finance ecosystem during the month of January
Editor's note: We welcome you to our first roundup of the year, beginning with news from the kingdom, which has secured a hefty Shariah-compliant facility. Pakistan's UBL will convert all its branches to Islamic banking in two provinces.
Company News
Malaysia
Luno launches Shariah-compliant Ethereum staking
Luno has become the first regulated digital asset exchange to offer Shariah-compliant Ethereum (ETH) staking, certified by Amanie Advisors.
This service is available in Malaysia and allows investors to stake Ethereum starting at 0.00001 ETH or RM1, with potential annual rewards of up to 3%, distributed weekly. Rewards are given in Ethereum and may fluctuate based on network conditions. (Fintech News)
Pakistan
UBL converts KP and Balochistan branches to Islamic banking system
United Bank Limited (UBL) has announced that it has converted all its branches in Balochistan and Khyber Pakhtunkhwa to Islamic banking, in compliance with a new law mandating that all financial institutions adhere to Shariah law by 2027.
This shift follows a December 2024 law passed by the National Assembly, driven by the Federal Shariat Court’s order to eliminate interest (riba) from the financial system. (TechJuice)
Kazakhstan
ITS launches first Shariah-compliant index fund in Central Asia and the Caucasus
ITS has launched the first Shariah-compliant Exchange-Traded Fund (ETF) in Central Asia and the Caucasus, named ITS Shariah (ITSS).
In its initial offering, 500,000 shares were sold at $10 each, raising $5 million. The ETF is listed on the AIX exchange at the Astana International Financial Centre and is managed by IPS Capital, supported by a Shariah supervisory board. (GlobeNewsWire)
Malaysia
KAF Digital Bank gets green light to commence operations
The Islamic digital bank consortium led by KAF Investment Bank Bhd has received approval from Bank Negara Malaysia and the Ministry of Finance to begin operations on December 20, 2024.
The consortium, which includes KAF IB, Carsome, MoneyMatch, Jirnexu, and StoreHub, passed the operational readiness review. It was one of five groups awarded digital bank licenses by BNM in April 2022, and one of two under the Islamic Financial Services Act 2013. (The Edge)
Investment
Saudi Arabia
Saudi Arabia secures $666m Shariah-compliant revolving credit facility
The National Debt Management Center (NDMC) announced the arrangement of a Shariah-compliant revolving credit facility of $2.5 billion to support Saudi Arabia’s general budgetary needs.
Arranged with three financial institutions, this three-year facility aligns with the kingdom's public debt strategy, emphasizing diversified funding sources at competitive rates while adhering to established risk management frameworks and the annual borrowing plan. (Zawya)
Saudi Arabia
Saudi’s Al Akaria secures $186m Islamic facility from Bank Al Jazira
Saudi Real Estate Co. has obtained a Shariah-compliant banking facility of 700 million riyals ($186 million) from Bank Al Jazira.
The loan includes a one-year short-term option and a long-term maximum tenor of 10 years, secured by a promissory note and real estate mortgage.
The financing will support the company's ongoing and new projects, expansion investments, and allow for up to 100 million riyals to address working capital needs. (Zawya)
