Islamic Finance: Monthly news wrap - June 2023
Editor's Note: Technology is taking the world by storm and changing product delivery, offerings and customer service. Perhaps forever.
The Islamic finance space is no different. Companies across the world are jumping onto the 'tech' bandwagon to keep pace. Saudi's Rakeez Capital launched an automated sukuk issuance platform; Pakistan's Meezan Bank tied up with Fauree to develop a digital platform for Islamic supply chain financing; while Shariah-compliant, ethics-first digital money announced an official launch for later this year.
Meanwhile, Islamic banking appears on the horizon for the East African country of Uganda, inspiring hope for other nations on the continent.
Here's a roundup of key developments across the Islamic finance ecosystem during the month of June
Company News – UAE
Dubai Islamic Bank launches DIB ‘alt’ to consolidate digital offerings
Dubai Islamic Bank (DIB), the UAE's largest Islamic bank by assets, has launched DIB alt, a comprehensive digital umbrella brand that integrates all of the bank's digital services and capabilities.
The unified platform offering a seamless banking experience, housing over 135 digital services including the DIB Mobile App, Online Banking, WhatsApp, and ATMs. (IBS Intelligence) (June 5, 2023)
Company News – Pakistan
Meezan Bank collaborates with Fauree to develop digital platform for Islamic supply chain financing
Meezan Bank, a Pakistan-based Islamic bank, has formed a partnership with Fauree Tech Pvt Limited, a fintech firm specializing in supply chain solutions.
The alliance will create a digital platform to finance suppliers involved in efficient logistic supply chains linked to reputable corporations. (Phone World) (June 6, 2023)
Company News - UAE
Emirates Islamic, Arab payment system Buna to facilitate payments and transfers within Arab region
Emirates Islamic, a UAE-based Islamic bank, has announced a collaboration with the Arab payment system, Buna, to facilitate cross-border transactions in the Arab region.
The partnership is expected to enhance and streamline payments and transfers for the bank's customers, in lockstep with its commitment to foster innovation across the Islamic banking sector. (Zawya) (June 7, 2023)
Company News – Saudi Arabia
Rakeez Capital launches automated sukuk issuance platform
Saudi fintech company Rakeez Capital has introduced an automated platform to streamline the issuance of Murabaha Sukuk, an Islamic financing instrument.
The platform has been reviewed and certified by the Shariyah Review Bureau (SRB), and aims to democratise access to sukuk for retail and SME investors through digitisation. (Zawya) (June 12, 2023)
Company News – Saudi Arabia
Bank Albilad is the first Saudi bank to enable open banking services
Bank Albilad has become the first bank in Saudi Arabia to fulfil the technical requirements for open banking services, according to the regulatory framework issued by the Saudi Central Bank (SAMA).
CEO Abdul-Aziz Al-Onaizan expressed pride at the bank's leadership in the field, stating that the initiative supports the fintech system and promotes innovation in the financial sector, aligning with the kingdom's Vision 2030. (Zawya) (June 12, 2023)
Company News – UAE
Astra Tech, National Bonds to offer Shari’a-compliant savings
Consumer technology holding group, Astra Tech, has signed a Memorandum of Understanding (MoU) with National Bonds, aiming to offer Shari’a-compliant saving and investment opportunities to millions of Botim users. Botim is a messaging and video/voice calling app.
Astra Tech's customers will gain access to microfinance options aimed at individuals with low and medium incomes through Botim, facilitated by 'Al Manassah’ Platform, owned by National Bonds. (Zawya) (June 22, 2023)
Company News – United Kingdom
Shariah-compliant, ethics-first digital money announces offical launch in Q3
Islamic Coin, a Shariah-compliant cryptocurrency, has announced its official launch on centralized and decentralized exchanges on September 1, 2023.
The launch, which follows the team securing $400m and revealing a range of plans and Memoranda of Understanding (MOUs), has sparked interest from both traditional and Islamic finance sectors. (The Nation) (June 28, 2023)
Investment – UAE
Dubai’s AMAN to sell individual life takaful portfolio for AED37.5m
Dubai Islamic Insurance and Reinsurance (AMAN) has declared its intention to sell its individual life takaful portfolio to Abu Dhabi National Takaful Company (ADNTC) for AED37.5 million.
Previously, AMAN, which is listed on the Dubai Financial Market (DFM), was negotiating an acquisition with Salama, another DFM-listed insurer. (Reinsurance News) (June 14, 2023)
Investment – UAE
Abu Dhabi Islamic Bank forges deal to fund Shariah-compliant businesses
Abu Dhabi Islamic Bank (ADIB) has entered a Memorandum of Understanding (MoU) with the Abu Dhabi Investment Office (ADIO) to deliver financing and banking support to local enterprises and investors. ADIO is the central government hub, fostering growth opportunities for innovative businesses of all sizes.
As part of the agreement, ADIB will assist in the opening of shariah-compliant bank accounts for companies investing through ADIO or government initiatives. (Zawya) (June 19, 2023)
Investment – Bahrain / Algeria
Bahrain's Al Salam Bank acquires majority stake in Algeria bank
Al Salam Bank in Bahrain has upped its stake in Al Salam Bank Algeria (ASBA) from 37.43% to 53.13%, securing a majority share in the rapidly expanding institution. Established in 2006, ASBA is a Sharia-compliant bank with 23 branches across the North African country.
This move expands Al Salam Bank's regional influence, aligns with its growth strategy, and bolsters ASBA's growth potential. (Zawya) (June 22, 2023)
ESG Developments – Malaysia
Malaysia's Uzma secures RM225m Islamic financing for solar project
Uzma Kuala Muda, a subsidiary of Malaysia-based investment holding company, Uzma Berhad, has secured RM225 million ($53.7 million) in Islamic financing for its large-scale solar photovoltaic plant project in Malaysia.
The funding, provided by Affin Islamic Bank and Export-Import Bank of Malaysia, will be used primarily for the development and construction of a 50MWac solar plant under the government's Large Scale Solar programme. (The Star) (June 20, 2023)
Regulatory – Uganda
Members of Parliament in Uganda inch closer on start of Islamic banking
Uganda's parliament has passed a series of bills to harmonise the treatment of Islamic banking products, marking a significant step towards the introduction of Shariah-compliant banking in the country.
Amendments to the Financial Institutions Act removed the provision for a Shariah Advisory Council, with the Bank of Uganda now set to oversee operational aspects of Islamic banking. (African Business) (June 28, 2023)
