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Hi and greetings from MIFC. There are a lot of developments in Islamic finance recently and we are please to bring you once again the 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 and idea to improve this newsletter.

The MIFC Team

 
First Ever Malaysian Commercial Case heard (and to be decided) by a 9-member Bench in the Federal Court of Malaysia
Islamic Banking & Finance Institute Malaysia (IBFIM) just launched its inaugural newsletter featuring a story on the deliberation of the first ever Malaysian commercial case heard and to be decided by a 9-member bench of the Federal court of Malaysia. In this case, Kuwait Finance House (Malaysia) Berhad as the Plaintiff/Respondent had granted various Islamic facilities to JRI Resources Sdn Bhd (the 1st Defendant/Appellant) including an Ijarah (leasing) Facility of shipping vessels. JRI Resources later defaulted and failed to make payments of the sums outstanding under the Ijarah Facility. Read more
 
Malaysia’s Sukuk Issuance Exceeded Projection For 2018
RAM Ratings in its recent report observed that Malaysia’s sukuk issuance as at end-September 2018 had surpassed RAM Ratings's projection of RM100 billion–RM120 billion for the year. In 3Q 2018, a total of RM24.9 billion sukuk was issued, bringing the YTD issuance value to RM123.9 billion as at end-September. The growth was led by increased issuance by the Government despite a decline for the corporate sector. The Malaysian sukuk market expanded 11.1% y-o-y to RM827.8 billion as at end-September 2018 (end-September 2017: RM745.2 billion). At the same time, the proportion of outstanding sukuk relative to the overall domestic bond market remained robust at 59.8%. Read more
 
Malaysia Retains Spotlight as Leading Islamic Finance Centre
Malaysia’s progress and maturity in the development of its Islamic finance eco-system is ahead of other Islamic finance markets. This observation was based on reports produced by RAM Ratings and the International Shari’ah Research Academy for Islamic Finance (ISRA) for the Standing Committee for Economic and Commercial Cooperation of the Organisation of Islamic Cooperation (COMCEC). The market studies, which had been conducted in several jurisdictions, include comprehensive engagements with regulators and market participants, which played a critical role in supporting the policy recommendations proposed in the reports. Read more
 
The only Islamic finance university to join the rank of top business schools in the world
International Centre for Education in Islamic Finance, or better known as INCEIF, recently announced that its academic programmes have attained stature among the top five percent of business programmes in the world with the announcement by AACSB International that the programmes have received the AACSB accreditation. The AACSB accreditation recognises institutions that demonstrated a focus on excellence in all areas, including teaching, research, curricula development, and student learning. INCEIF is the 5th and the only Islamic finance focused university, in Malaysia, to be accredited by this international accreditation body. Read more
 
New business gateway for Malaysian to boost business activities
The Malaysian Investment Development Authority (MIDA) recently launched a business linkage platform to connect service providers and their potential clients, which consists both local and foreign companies. In addition to the platform, which is named i-Services Portal, MIDA has also set up a dedicated team to link up companies with potential funders, technology providers, research institutions and business partners. As to date the team has engaged with 140 companies and 40 partners providing financial support including private equity firms. Read more
 
Reinforcing the Collaboration in the Field of Islamic Finance Statistics
The Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC) and the Islamic Financial Services Board (IFSB) recently signed a Memorandum of Understanding (MoU) to reinforce the collaboration on the field of Islamic finance statistics. This collaboration will increase knowledge of practitioners, statisticians as well as researchers in the Islamic banking and finance, Islamic capital markets, takaful and other socio-economic sectors and strengthen the capacities of the relevant constituents of national statistical systems in their common member countries. Read more
 
Exposure Draft on Financial Inclusion and Islamic Finance 
The Islamic Financial Services Board (IFSB) recently issued an Exposure Draft Technical Note 3 (ED TN-3) for public consultation that aims to provide guidance on good practices in regulating the financial sector to enhance financial inclusion through Islamic finance, while also considering proportionality in balancing the benefits of regulation and supervision against the risks and costs. Read more
 
IsDB Provides New Model of Development Bank to Fill the SDG Financing Gap
The financing gap to deliver the Sustainable Development Goals (SDGs) for the world is estimated at around USD2.5 trillion annually. In the IsDB’s new strategic roadmap, the Islamic Development Bank has adopted a different development model that transforms IsDB from a development bank to a bank for development and developers, with a focus on root causes of development challenges, rather than symptoms. Read more
 
Potential of Islamic Finance for Long-Term Development Financing
The Islamic Research and Training Institute (IRTI) of the Islamic Development Bank (IsDB) Group recently published the second edition of the Global Report on Islamic Finance titled "The Role of Islamic Finance in Financing Long-Term Investments". The report highlights steps for unleashing the potential of Islamic finance to help harness the much-needed funds for long-term investment in development programs and presents global perspectives on the challenges of financing the 2030 global agenda for sustainable development, and highlights the prospects of Islamic finance towards addressing the funding gap. Read more.
 
A step closer to Islamic banking in the Philippines
The Philippines has moved a step closer to opening the country to the wide range of banking and other financial services available through Islamic banking and finance. The move comes after the House of Representatives recently approved on second reading a proposed bill providing for the regulation and organization of Islamic banks in the Philippines. Read more
 
Inclusion of sukuk chapter in Ireland’s Islamic finance guidelines
The Irish tax authority has revised its guidance on Islamic financial transactions to include a new chapter on sukuk to attract potential issuers to issue sukuk out of Ireland. The inclusion of sukuk in Ireland’s Islamic finance tax guidance could provide issuers with much-needed clarity to use Ireland as a sukuk origination center. Read more
 
Overlap and acceptance of SDGs within Islamic economy
In the recent interview between Salaam Gateway and the UNDP Senior Advisor, Aamir Rehman says that there are a lot of overlap and acceptance of the SDGs within the Islamic finance and Islamic economy community. Adaptations and additions may have to add from an Islamic finance perspective or an Islamic economy perspective as the SDGs are quite comprehensive and cover a lot of areas. Read more
 
Key Dates
December:
Islamic Finance for Legal Practitioners - Advance Level
04 - 06 DEC 2018
Kuala Lumpur, Malaysia

Research & Data Analysis Training, Data Analytics: Dealing with ‘Big Data’
08 - 09 DEC 2018
Salihin HQ, Batu Caves, Selangor
Other Stories
1.    Investors Turn To Islamic Finance To Fund Landmark London Property
2.    Muslim Countries, Communities Need To Take More Advantage Of Islamic Finance Instruments'
3.    Lawmaker Hopeful Senate Will Pass Bill On Islamic Banks
4.    DDCAP Partners With Refinitiv To Deliver Treasury Trading Workflow For Islamic Transactions
5.    UK Bank Rosette Launches Islamic Capital Markets Unit
6.    Islamic Organizations To Host International Financing Symposium In Istanbul
7.    Islamic Development Bank Lists USD737m Sukuk On Nasdaq Dubai
8.    Fintech on Track to Shape Future of Islamic Finance          
9.    Islamic Finance Centre at Bahrain Fintech Bay to Attract 1 Billion Customers
10. 
 Why the tide is rising for Islamic finance
11.  Strengthening regulatory system urged to optimize potential of Islamic finance
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