Islamic finance roundup: UAE approves strategy for Islamic finance, halal industry
Here's a roundup of key developments across the Islamic finance ecosystem during May
Editor's Note: The UAE has signed off on a strategy that aims to double Islamic bank assets in the next six years. Meanwhile, Maldives has unveiled a vision to become a leading centre for Islamic finance.
Company News
United States
APEX Capital Group launches $10m halal real estate fund
APEX Capital Group, a private real estate investment firm based in Princeton, NJ, has launched the Silk Road Properties Income Fund, a $10 million private real estate fund offering accredited investors the opportunity to earn passive income while adhering to Islamic finance principles.
The fund has received Shari'ah-compliance approval from Joe Bradford, a prominent Islamic finance scholar in the U.S. and is accredited by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). (Manila Times)
Saudi Arabia / Greece
Alrajhi Bank launches payable finance solution
Alrajhi Bank has launched QUALCO’s ProximaPlus platform, introducing a fully digital Payables Finance solution based on the Goods Murabaha structure.
This milestone is part of the bank’s efforts to digitize its Sharia-compliant supply chain finance (SCF) operations.
The platform addresses operational challenges like manual processing, limited scalability, and lack of real-time data.
By adopting ProximaPlus, Alrajhi Bank now offers an automated, buyer-led SCF solution that enhances efficiency, invoice visibility, and supports regional expansion, while remaining compliant with Islamic finance principles. (IBS Intelligence)
Trade Developments
UAE
UAE approves strategy for Islamic finance, halal industry
The UAE Cabinet has approved a national strategy for Islamic finance and the halal Industry.
The strategy focuses on developing the Islamic financial industry, leading global Islamic finance activities, and enhancing the export of halal products worldwide. It aims to double Islamic bank assets by the year 2031.
(Gulf News)
Maldives
President launches Islamic social finance Iinitiative
President Dr. Mohamed Muizzu has unveiled his administration's vision to transform the Maldives into a leading financial center for Islamic finance, driven by digital economic transformation.
At the launch of the Maldives Islamic Social Finance Initiative, President Muizzu described the initiative as a key part of the upcoming National Financial Inclusion Strategy.
The President called for collective action, aiming to foster partnerships between the financial sector and civil society to address social needs. (Ras Online)
Regulatory
Malaysia
Ph pushes 5-year deadline for Islamic banking units to convert into full banks
The Bangko Sentral ng Pilipinas (BSP) has proposed a new regulation requiring Islamic banking units (IBUs) operated by conventional banks to either transition into full-fledged Islamic banks or meet universal bank capital requirements within five years.
The proposal, under a newly introduced circular, gives conventional banks a five-year transitional period to meet capitalization standards if they continue operating an IBU.
After this period, banks must either convert the IBU into a stand-alone Islamic bank or comply with universal bank capital thresholds, necessitating additional investment. (Manila Bulletin)
