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Hi and greetings from MIFC. We bring you again a round-up of exciting news in the world of Islamic finance. We hope you will enjoy reading it. Let us know if you have any feedback.

The MIFC Team.


 
Tax breaks for sukuk issuances in Malaysia 
In the recent Malaysia’s 2019 Budget, the finance minister had announced a measure to prolong the tax breaks for additional expenditure incurred when issuing sukuk to another 3 years, which will take effect in 2019. It aims to further promote Malaysia as world’s Islamic finance marketplace. A Special Committee on Islamic Finance will also be set up to boost these efforts. It will be led by the Ministry of Finance. Read more
Islamic Economy Goes Hi-Tech
New technologies and innovative solutions being deployed in Islamic finance has the potential to spur growth, strengthen mechanism for Shariah compliance and streamline traceability of transactions, according to industry experts. With rapid transformation in banking in general, Islamic finance and banking is also gearing ahead and adapting to the rapid changes. For instance, the burgeoning growth of Islamic microfinance institutions also has a huge demand for high-tech fintech products and services. The International Monetary Fund (IMF) estimates that Islamic finance has now ballooned to over USD2 trillion of assets globally and is available in over 60 countries around the world. According to the IMF, Islamic banking has outperformed conventional banking in recent years, with its penetration rate increasing above 15 per cent in more than a dozen countries in the Middle East and Asia. Read more
Climate finance deficit could be plugged by green sukuk
The creation of Islamic green finance, a confluence of Islamic and green finance, is one way that the Islamic finance industry has addressed the climate change issue. It is a form of socially responsible investing, which seeks to consider not just the financial return but also the social good. The concept of socially responsible investing is aligned to the ideology of Maqasid Al Sharia, which outlines the objectives to protect and preserve the interest of society. In Malaysia, green sukuk are proving to be an effective tool for funding environmentally-friendly projects and addressing the country’s growing green financing needs. Read more.
Malaysia is the World’s Top Hubs for Islamic Fintech Startups
Malaysia has emerged as the world’s top hub for Islamic fintech startups, with 18 companies operating in the sector, according to new findings from the Dubai Chamber of Commerce and Industry, which based its analysis on recent data from IFN Fintech. Crowdfunding makes up over a third of the global Islamic fintech market, followed by banking software, which made up 17%. Other major segments tracked included payments, remittances and foreign exchange, along with alternative and peer-to-peer finance. Read more
ASEAN nations have a solid foundation for the development of the Islamic finance 
In the recent report published by Moody’s, economies of ASEAN nations are reported to have a solid foundation for the development of the Islamic finance industry, but various hurdles are evident. According to the report, current levels of Islamic financing penetration in the region are generally low because most governments have not, until now, actively sought to develop the sector, which has resulted in low levels of public awareness of Islamic banking services and a lack of incentive for banks to devote resources to develop them. The report touched on Malaysia and Indonesia, two of the biggest Islamic finance players in the region, with Malaysia aiming to boost the share of Shariah banking assets in total banking assets to 40% by 2020 from 32% at the end of August 2018. Read more
INCEIF receives international award for its research and educational initiatives
INCEIF has been honored with the Islamic Economy Knowledge Infrastructure award at the 2018 Islamic Economy Award. The 4th Islamic Economy Award (IEA) ceremony took place during the opening ceremony of the fourth Global Islamic Economy Summit (GIES 2018), in Dubai, UAE. The annual award recognises innovative world-class business initiatives and ideas that have contributed to the social and economic welfare of the Islamic economy. INCEIF – The Global University of Islamic Finance, it is the only university in the world dedicated to Islamic finance. Read more.
Malaysia leads the Global Islamic Economy Indicator in the State of the Global Islamic Economy Report 2018/19
Dubai Islamic Economy Development Centre (DIEDC) recently published the results of the State of the Global Islamic Economy Report 2018/19, titled ‘An Inclusive Ethical Economy’. Malaysia once again leads the Global Islamic Economy Indicator, while the UAE ranks in first place across the remaining five sectors – Halal Food, Halal Travel, Modest Fashion, Halal Media and Recreation, and Halal Pharmaceuticals and Cosmetics. Read more
Cooperation to Strengthen the Development and Resilience of the Islamic Financial Services Industry
The Islamic Financial Services Board (IFSB) and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) have signed a Memorandum of Understanding (MoU) recently to facilitate international cooperation between the two organisations to jointly undertake technical activities relating to development and revision of prudential, Shariah, accounting and governance standards as well as for raising awareness on emerging issues in the Islamic financial services industry. Collaboration will also include exchange of information and knowledge-sharing activities to benefit from each organisation’s experiences and expertise. Read more
Islamic Social Finance a Tool for Development and Economic Inclusion
A range of stakeholders in the Islamic finance industry is increasingly seeking to tap Islamic social finance in order to unlock the social potential it has for underprivileged, unbanked, underfunded and otherwise neglected communities or regions in the Muslim world. One of them is the UN Development Programme (UNDP), which sees Islamic social finance as a viable tool to support and contribute to the UN’s Sustainable Development Goals (SDG).  Among those tools are primarily zakat, waqf and sadaqah – alms-giving, charitable endowments mostly in form of property and voluntary offerings. Read more.
Key Dates
November:
Research & Data Analysis Training, Primary Data Research
10-11 NOV 2018
Salihin HQ, Batu Caves, Selangor


Research & Data Analysis Training, Industry Research
24-25 NOV 2018
Salihin HQ, Batu Caves, Selangor
Other Stories
i. Malaysia Still World’s Leading Islamic Economy but Must Continue to Raise Its Game 
ii. 
Blockchain Technology Seen To Boost Global Islamic Finance Sector: Experts 
iii. Turkey sets eyes on becoming Islamic finance centre 
iv. IRTI, Indonesian Finance Ministry Organize Workshop on Infrastructure Financing Through Public-Private Partnerships 
v. New liquidity facility for the UK’s Islamic finance sector 
vi. Suriname Parliament Approves Expansion of Islamic Bank Cooperation 
vii. Growing Islamic Banking in Pakistan 
viii. Egyptian Market Hungry for Islamic Financing Tools That Can Guarantee Success of First Experience 
ix. Islamic Finance’s Growing Impetus in Africa 
x. Islamic Financial Technology in London 
xi. Singapore is Giving it Another Try to Embrace Islamic Finance Growth 

 

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