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The International Islamic Trade Finance Corporation (ITFC) and the Islamic Development Bank (IsDB) jointly held a live webinar entitled "The Role of AgriTech in Food Security & Sustainability" to discuss sustainable climate-smart agricultural technologies for achieving food and nutrition security. The webinar highlighted the most promising AgriTech solutions to enhance efficiencies of agricultural value chains at the national, regional and global level. The webinar, which was presented in English and included French, Arabic and Russian interpretations, featured panel discussions and presentations by industry experts in the field of Agriculture, AgriTech and Trade Finance. The ITFC will provide technical assistance to farmers and associated agribusinesses to build their capacities to use the digital tools to enhance agricultural productivity. The 2nd webinar, entitled "Digital Supply Chain" will be held on the 25th of November 2020.

Abu Dhabi Islamic Bank (ADIB) has launched a remote sales platform allowing customers to converse with the bank and apply for personal finance, covered cards, takaful, and other banking products without having to leave their homes. A first of its kind in the UAE, the platform is equipped with virtual banking tools, including online application and electronic signature services. The platform also integrates virtual communications tools, including video conferencing and real-time screen sharing, to boost collaboration between customers and sales representatives. ADIB has seen a significant surge in customer demand for its digital banking services in 2020. Around 94% of ADIB’s banking transactions are conducted digitally and 65% of customer updates are made through the bank’s digital channels. In addition, 50% of new ADIB customers have opened their accounts digitally.

The Islamic Corporation for the Development of the Private Sector (ICD) announced successful completion of the pricing of a five-year USD 600 million Sukuk issuance at MS + 140bps. This is the largest Sukuk issuance by ICD since inception and double the amount from its inaugural issuance in 2016 of USD300 million, despite the institution’s absence from the capital markets over the last four years. ICD attracted very strong investor response despite a slightly weaker market sentiment. The orderbook exceeded USD 1.5 billion and ICD released a price guidance at MS + 160 bps area. The Sukuk was priced 20 basis points from guidance pricing.

Tezos Gulf received a Sharia Certificate from Shariyah Review Bureau (SRB). Tezos’ platform is backed by a global community of validators, researchers, and builders and is considered one of the first pure proof-of-stake blockchains. The Tezos blockchain has been utilised by numerous issuers of digital securities but mostly on the conventional side of the financial market. Tezos Gulf is a subsidiary of the Swiss-based Tezos Foundation. It was established to foster ecosystem development in the GCC region for the Tezos network, an open-source public blockchain for assets and applications.

According to Moody's Investors Service, net inflows into some large Islamic funds in the GCC countries have remained positive despite weaker markets and lower oil prices. The ratings agency said it expects growth in Islamic assets under management to slow between 2% and 4% this year. According to the Global Islamic Finance Markets Report, Shariah-compliant assets represent a significant portion of total banking assets of the GCC. While in the Middle East and North African region, Islamic banking assets represent 14% of total banking assets, in the GCC this market share crossed the 25% threshold. Globally, Islamic finance assets are expected to grow at a compound annual growth rate of 5.5% to hit $3.4 trillion during the next five years. Malaysia and Saudi Arabia are the largest Islamic financial service in the world, accounting for almost two-thirds of Islamic assets under management between them.

Alizz Islamic Bank has completed all processes related to the integration of Al Yusr Islamic Banking. This includes the integration and transferring of customers, services, employees, assets, and liabilities from the Al Yusr Islamic Banking window to Alizz Islamic Bank’s operating system. This merger has led to the formation of a larger Islamic banking entity that can effectively compete in the market. Alizz Islamic Bank now has a wider network of 17 branches in various governorates of the Sultanate. In addition to expanding the digital services, customers will have access to an award-winning mobile banking application. Alizz Islamic Bank is a wholly-owned and fully licensed Islamic banking subsidy of Oman Arab Bank, which is part of the extensive Arab Bank Plc network.

The Central Bank of Bahrain (CBB) has clarified that no fees, except insurance, can be charged by lenders on the four-month loan deferral for Bahrainis and local companies. The regulator also said no late payment fees must be charged on credit cards’ outstanding balance due for payment this month. S&P noted that the measures carried out by the CBB have been effective so far. The measures include relaxation in prudential requirements and asking banks to defer instalments for six months, in a bid to help the private and retail sectors cope with the pandemic.

Amanat Holdings, Aldar Properties, and Abu Dhabi National Oil Company for Distribution (ADNOC Distribution) were added to the S&P UAE Domestic Shariah Liquid 35/20 Capped Index. In August the ADX and DFM listed Chimera Capital’s Exchange Traded Fund (ETF), designed to replicate the S&P UAE Domestic Shariah Liquid 35/20 Capped Index which tracks the performance of UAE-based Shariah-compliant liquid equities.

The Middle East Healthcare Company (Saudi German Hospital) received Sharia-compliant credit facilities worth SAR 305 million from Al Rajhi Bank. A total of SAR 120 million of the financing is revolving loans that will be renewed periodically, while the remaining sum of SAR 185 million will be paid within six years. The first amount is short-term financing that aims to cover working capital needs whilst the second sum is a medium-term loan that will be used in financing the healthcare provider's digital transformation. The loan is guaranteed by a promissory note.

Investor appetite for green sukuk is growing in the Arabian Gulf countries despite the lukewarm economic growth amidst the ongoing pandemic. Saudi Arabia’s electric transmission monopoly, Saudi Electricity Company (SEC), issued a multi-tranche $1.3 billion green sukuk and reported an order book of more $5.2 billion, indicating the immense appetite for sustainable Islamic bonds. The proceeds of SEC’s sukuk will be used to finance green projects relating to energy efficiency and renewable energy. Currently, Saudi Arabia is almost exclusively reliant on fossil fuels for power generation and has a high energy usage per capita because of its reliance on air conditioning and desalinated water. The green sukuk market is still in its infancy, with only a handful of issuances taking place.

The Faisal Islamic Bank of Egypt has reported a 9.3% increase in its volume of business to EGP 112.751bn in August 2020, compared to EGP 103.149bn in August 2019. The bank’s total assets reached EGP 109.713bn in August 2020, which reflects a 13% growth compared to the EGP 97.124bn reported in August 2019. Faisal Islamic Bank aims to open five new branches over the course of the current year, bringing its total network of branches to 41. It aims to further expand its branch network to 46 by the end of 2021. The bank also plans to offer a number of new services, including “Meeza” debit and pre-paid cards, and new bill e-payment service “Fawri”.

Emirates Islamic Bank has hired banks to arrange the issuance of U.S. dollar-denominated five-year sukuk.
It hired Emirates NBD Capital, HSBC, The Islamic Corporation for the Development of the Private Sector, and Standard Chartered to arrange investor calls that started on Monday.

Oman's Ministry of Finance announced to launch of the third issue of sovereign sukuk denominated in Omani rials within the framework of the sovereign sukuk programme launched in 2019. The ministry has appointed Bank Muscat and its Islamic window (Meethaq) to manage the bond issuance and it can be subscribed through all licensed banks operating in the Sultanate. Oman is currently facing financial challenges as a result of the decline in oil prices and the consequences of COVID-19 pandemic, which have directly contributed to the sharp decline in global oil prices since the beginning of this year.

Abu Dhabi Islamic Bank (ADIB) has partnered with the UAE’s Ministry of Finance (MoF) to offer the new range of eDirham cards. eDirham cards offer a smart payment method accepted by more than 5,000 government services in ministries, federal and local authorities. The system offers many advantages, including low costs and the possibility of paying service fees through different payment channels, which include eDirham apps for phones, e-wallet, vouchers, and self-service eKiosks. The ADIB eDirham Gold and ADIB eDirham Signature cards represent the third generation of the eDirham cashless payment service.

Dubai has hired banks to arrange investor calls ahead of a potential sale of U.S. dollar-denominated 10-year sukuk and 30-year conventional bonds. Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and Standard Chartered are mandated to arrange the calls. The benchmark issuance is part of a $6 billion sukuk issuance programme and of a $5 billion bond issuance programme. The new issuance could bolster the finances of the Middle East trade, finance and tourism hub, which has been hit hard by the coronavirus crisis this year.

The International Islamic Trade Finance Corporation (ITFC) signed an $8 million worth of Murabaha-structured line of trade finance with Uzbekistan's Trustbank. The financing aims to minimise the impact of COVID-19 by supporting the import and pre-export financing needs of small and medium-sized enterprises (SMEs) in the country. ITFC CEO Hani Salem Sonbol said this operation is in addition to five other lines of finance in favour of local banks in Uzbekistan since 2018, and reflects the ITFC’s unbending commitment to the nation of Uzbekistan.

Emirates Islamic announced its financial results for the half year ending 30 June, 2020. The Bank reported a net profit of AED 12 million for the first half of 2020. The total income is of AED 1.1 billion, lower by 15% year-on-year. Funded Income margins are lower by 25 bps year-over-year due to lower profit rate environment. Total assets stand at AED 64.2 billion, decreased by 1% from end 2019. Customer accounts stand at AED 45 billion, broadly flat from end 2019, while current and savings accounts balance up 10% from end 2019.

The consolidated financial results of Faisal Islamic Bank of Egypt showed a 53.6% year-on-year (YoY) drop in its net profits to EGP 483.53 million in the first quarter (Q1) of 2020 from EGP 1.043 billion. Meanwhile, the bank’s revenues fell to EGP 2.63 billion in the January-March period, compared to EGP 3.22 billion in the corresponding period a year earlier. It is worth mentioning that in 2019, Faisal Islamic Bank of Egypt reported consolidated net profit of EGP 2.78 billion, up from EGP 2.56 billion in 2018, including minority shareholders’ rights.

Al Baraka Islamic Bank has launched a promotional campaign to provide property financing to the beneficiaries of the Housing Ministry’s Mazaya programme. Under the campaign, profit rates will be calculated at competitive rates, there will be no down payments, and zero banking fees. The bank will also cover the fees of life insurance for the beneficiaries and will provide fire insurance for the property. Also, there will be instant prizes for the executed deals. The financing is up to BD120,000 with maximum duration of 25 years.

ADIB has launched a series of special offers exclusively to healthcare professionals as a tribute for their efforts during the COVID-19 pandemic. These offers include reductions and discounts on ADIB products: special reduction on the profit rate of personal and auto finance; AED500 reduction in fees for ADIB covered cards or a voucher from Amazon or Noon when applying for cards; fixed profit rates on home finance starting from 2.99% per annum on home finance; 20% fee reduction on all wealth management products; Smartaccount welcome pack and no minimum balance requirement for Smartbanking; an iPad with every Life and Savings Takaful plan, if an AED 1,000 monthly contribution is made. ADIB was among the first UAE financial institutions to launch relief measures for customers during COVID-19, including the postponement of monthly installment payments and the reduction of certain fees.