Islamic finance wrap: AlHuda CIBE launches platform to bridge skills gap
Here's a roundup of key developments across the Islamic finance ecosystem during the month of June
Editor's note: UAE-based AlHuda CIBE has established a talent acquisition platform to bridge the skills gap across the Islamic finance space.
Meanwhile, sukuk seem to be the flavour of the month, with Central Bank of Bahrain's oversubscribed Sukuk Al-Ijara and Qatar Central Bank's issuance of treasury bills and Islamic sukuk.
Energy Development Oman has also commenced marketing efforts around its seven-year sukuk, while an Abu Dhabi-based asset management firm has launched a global sukuk ETF.
Company News
Oman
Oman’s Abraj Energy secures $104m Shariah-compliant facility
Oman's Abraj Energy Services, partially owned by state energy firm OQ, has secured a Sharia-compliant financing facility worth 40 million Omani rials ($104 million) from Alizz Islamic Bank.
Of this, 30 million Omani rials will fund Kuwaiti rigs, while the remaining 10 million Omani rials will cover non-funded working capital needs.
This move aims to reduce reliance on conventional debt. Abraj has also entered a five-year partnership with Kuwait Gulf Oil Company and Saudi Arabian Chevron to build three drilling platforms in Kuwait's Wafra oilfield. (Zawya)
Operational Developments
UAE
AlHuda CIBE establishes talent acquisition platform to bridge skills gap
AlHuda CIBE has launched a platform to support the Islamic finance industry's development and success by connecting skilled individuals with the right opportunities.
This initiative addresses the demand for qualified, Shariah-compliant professionals in the growing Islamic finance sector, including banking, Takaful, Ijarah, Sukuk, and more. (Financial IT)
Tunisia
AATB Partners with Tunisia-Africa Business Meeting to Boost Economic Growth
The Arab-Africa Trade Bridges (AATB) program has partnered with the Tunisia-Africa Business Meeting to promote economic growth and food security. This collaboration focuses on leveraging trade and investment opportunities to address food security challenges and promote sustainable economic development across the continent. (Halal Times)
ESG Developments
OIC Countries
IsDBI and CIBAFI sign agreement to advance Islamic finance for sustainable economic development
The IsDB Institute and CIBAFI unite for sustainable development through Islamic finance.
The entities will evaluate economic progress in critical areas across select OIC countries, aiming to showcase the role of Islamic finance in fostering resilient economies.
This partnership highlights their commitment to sustainability and innovation, aligning with global efforts for prosperity. (ISDB institute)
Investment
Qatar
Central Bank issues treasury bills, Islamic sukuk
The Qatar Central Bank issued treasury bills and Islamic sukuk totaling 2.5 billion Qatari riyals, with maturities of 24, 80, and 171 days.
The issuances include 500 million Qatari riyals for 24 days at a 5.7913% interest rate, 1 billion Qatari riyals for 80 days at 5.8313%, and 1 billion Qatari riyals for 171 days at 5.8268%.
The total private bids for the financial instruments reached 5.4 billion Qatari riyals, indicating robust market interest. (Zawya)
Bahrain
CBB’s Sukuk Al-Ijara oversubscribed by 323%
The Central Bank of Bahrain announced that its latest issuance of Sukuk Al-Ijara, Islamic leasing bonds, was oversubscribed by 323%.
The oversubscription reflects strong investor demand, with subscriptions totaling 83.887 million Bahraini dinar for the 26 million Bahraini dinar issue. The bonds, carrying a 6.05% return, will mature in 182 days, from June 6 until December 5.
This highlights the growing global appetite for Shari’ah-compliant investments. (Zawya)
UAE
Abu Dhabi’s Lunate launches global sukuk ETF to capture rising demand
Abu Dhabi-based asset management firm Lunate has launched a global sukuk Exchange-Traded Fund (ETF) to cater to the increasing demand for Shariah-compliant investment products.
The ETF aims to provide investors with exposure to a diversified portfolio of global sukuk, enhancing access to Islamic fixed-income securities. (Zawya)
Oman
Energy Development Oman starts marketing 7-year sukuk
Energy Development Oman has begun marketing a 7-year sukuk, aiming to raise funds to support its energy projects.
The sukuk will offer investors a Shariah-compliant investment option, contributing to the development of Oman's energy sector and enhancing the country’s financial market. (Reuters)
Regulatory
Pakistan
SBP directs Islamic banks to adopt new Shariah standards
The State Bank of Pakistan (SBP) has mandated Islamic Banking Institutions (IBIs) to adopt the latest Shariah standards from the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
The directive aims to ensure that IBIs comply with internationally recognized Shariah principles, enhancing the credibility and consistency of Islamic banking in Pakistan. (Halal Times)
Technology
UAE
Haqq Blockchain plans gold-backed stablecoin, tokenized sukuk
Haqq, a blockchain network, has announced plans to introduce a gold-backed stablecoin and tokenized Sukuk to enhance the Islamic interbank market.
These innovative financial products aim to provide stability and transparency, leveraging blockchain technology to facilitate Shariah-compliant financial transactions. (Arabian Business)
Education
Bangladesh
Bangladesh hosts Shariah audit training for Islamic banks
Bangladesh recently hosted a Shariah audit training program specifically tailored for Islamic banks. The initiative aims to enhance the compliance and operational efficiency of Islamic financial institutions in the country, covering various aspects of Shariah auditing and ensuring adherence to Islamic principles (Halal Times)
