Islamic Finance

Islamic finance wrap: Malaysia's Maybank launches Islamic wealth management hub

Here's a roundup of key developments across the Islamic finance ecosystem during the first three weeks of November

Editor's note: With the UAE set to host the COP climate summit later this month, Islamic financial institutions are taking cue and accelerating down the 'green road'. Abu Dhabi Islamic Bank (ADIB) rolled out a $500 million green sukuk, as well as a three-year ESG strategy.

In other news, Australia's first ever sukuk active ETF was launched, while Islamic banking window of Oman's BankDhofar launched a new debit card campaign. Malaysia's Maybank rolled out its Islamic wealth management hub in Singapore. 


Company News

Hejaz Group launches Australia’s first ever Sukuk Active ETF 
Hejaz Group has introduced Australia's inaugural Sukuk active exchange-traded fund (active ETF), the Hejaz Sukuk Active ETF (Managed Fund), available on the ASX starting November 2, 2023.

This marks the country's first Shariah-compliant bond alternative for investors, allowing participation in a Islamically-aligned fixed-income asset similar to traditional bond ETFs. (Zawya)

Meezan Bank collaborates with SAFCO Microfinance Company 
Islamic lender Meezan Bank has partnered with SAFCO Microfinance Company to launch its first Islamic microfinance branch, 'Yaqeen,' in Hyderabad.

The collaboration involves Meezan Bank providing 100 million rupees in financing, technical support, and training for product development and capacity building. (Urdu Point)

Maisarah Islamic Banking introduces innovative debit card promotion campaign
Maisarah Islamic Banking Services, the Islamic banking window of BankDhofar, has launched a debit card campaign offering customers the opportunity to win 100 Omani riyals for the same amount spent. 

The initiative, valid until end of the year, aims to boost debit card usage in Point of Sale (POS) and online transactions. (Zawya)

Maybank Group launches regional offshore hub for Islamic wealth management solutions
Maybank Group has inaugurated its Islamic Wealth Management (IWM) regional offshore hub for solutions through Maybank Singapore, extending its IWM reach beyond Malaysia and Indonesia.

This move is part of Maybank Group's M25+ Strategy, aiming for global leadership in Islamic finance and wealth management. (Hubbis)

‘Abu-Ghazaleh for Technology’ signs cooperation agreement with Aoun Islamic Finance Company
Talal Abu-Ghazaleh for Technology (TAGTech) has entered into a cooperation agreement with Aoun Islamic Finance Company to provide advanced and integrated financing solutions to TAGTech's clientele.

The agreement outlines that Aoun Company will deliver financing solutions adhering to Islamic Sharia principles. (Zawya)

Meezan Bank with SAFCO Microfinance Co launches Islamic microfinance services
Meezan Bank, an Islamic bank in Pakistan, has partnered with SAFCO Microfinance Company Private Limited (SMCL) to launch its first Islamic microfinance branch named 'Yaqeen' in Hyderabad, Pakistan.

This collaboration includes Meezan Bank providing 100 million rupees in financing, technical support for product development, capacity building, and training. (Business Recorder)


Trade Developments

BSP-led body to further promote Islamic finance in Philippines
The Islamic Finance Coordination Forum (IFCF) has affirmed its commitment to advancing Islamic banking and finance in the Philippines.

The Bangko Sentral ng Pilipinas (BSP) announced that the IFCF, led by BSP Assistant Governor Arifa Ala, plans to conduct market studies and roadshows to promote Islamic banking and finance to both local and international stakeholders. (Pakistan Observer)



President Tinubu secures multi-billion dollar In infrastructure funding From Islamic Bank
President Bola Tinubu is in advanced talks with the Islamic Development Bank in Mecca, Saudi Arabia, to secure a multi-billion dollar infrastructure finance facility.

The funds will support a diverse range of infrastructure projects at both federal and sub-national levels in Nigeria.

The negotiations, following substantive discussions with the Islamic Development Bank's Vice-President Dr. Mansur Muhtar, are a crucial step in bolstering Nigeria's infrastructure development. (Leadership)



Sami Al-Suwailem highlights prospects of digital transformation for Islamic finance
Dr. Sami Al-Suwailem, Acting Director General of the Islamic Development Bank Institute (IsDBI), delivered a keynote speech at a seminar on enhancing digitalization in Islamic financial institutions during the 10th Indonesia Sharia Economic Festival (ISEF) in Jakarta.

The event, jointly organized by Bank Indonesia, IsDB, and Islamic Financial Services Board (IFSB), focused on the pivotal role of digitalization in ensuring stability and sustainability in the Islamic financial system. (Pakistan Observer)


ESG Developments

ADIB successfully issues $500m green sukuk
Abu Dhabi Islamic Bank (ADIB) has successfully raised $500 million through a green sukuk offering, establishing the world's first green USD sukuk issued by a financial institution.

The five-year senior sukuk, rated A+ by Fitch at a profit rate of 5.695 percent per annum, will be listed on the London Stock Exchange's International Securities Market and Sustainable Bond Market. (Gulf Today)

Abu Dhabi Islamic Bank unveils robust ESG strategy
Abu Dhabi Islamic Bank (ADIB) has pledged to elevate its sustainable finance objectives, emphasizing its commitment to responsible banking practices.

The bank unveiled a three-year environmental, social, and governance (ESG) strategy, detailing its sustainability agenda.

ADIB aims to contribute to the transition to a low-carbon economy, aligning with the growing corporate emphasis on sustainable financing. (Zawya)

Sohar Islamic partners with Zakat Authority
Sohar International's Islamic Window has reiterated its commitment to community service by donating laptops to the Zakat Authority.

The laptop handover ceremony occurred at a gathering held at the Ministry of Endowment and Religious Affairs. This initiative reflects the bank's dedication to enhancing the role played by Zakat committees in the distribution, governance, and control of Zakat duties. (Zawya)