IslamicFinance.de

According to Moody's Investor Service, the Malaysian government is increasingly using longer-term Islamic instruments to fund its deficit to lower liquidity risk. The shift toward Islamic financial instruments is seen as credit positive for the sovereign. The Malaysian government has a sizable debt burden currently at 50.8% of the country's gross domestic product (GDP). The Malaysian Government Investment Issues (MGII), local currency, Shariah-compliant debt instruments, accounted for 50% of total federal government financing in 2017, up from a 26.4% share in 2008. The country's active participation in Islamic finance is part of Malaysia's broader vision to position itself as an international center for the instrument, and a recognized goal in the central bank's financial sector master plan.

Qatari banks lead the Gulf Cooperation Council (GCC) members states in real estate lending despite the economic blockade. Qatar disbursed 3.36 billion U.S. dollars of incremental credit in the first quarter of this year. Saudi Arabian banks ranked second, as they disbursed 1.47 billion dollars of incremental credit. Residential-related transactions contributed to 48% of the total transactions and accounted for 50.8% of the transaction volumes in the first quarter. On Sunday, Fitch Ratings has upgraded the outlooks of Qatar Islamic Bank (QIB) to 'stable'. The rating showed that Qatar was able to overcome the economic and trade blockade imposed on it by the Saudi-led bloc since last year.

The central bank of Bangladesh has suggested encouraging Islamic Shariah compliant investment certificate Sukuk in the capital market. Capital market regulator BSEC pointed out that other Muslim majority countries such as Malaysia, Indonesia, KSA, UAE as well as non-Muslim majority countries like the UK and Singapore have Sukuk in their capital market. It also pointed out that Bangladesh needs to undertake measures to expand capital market for financing productive investments and infrastructural projects. Finance Minister Ama Muhith has recently expressed his plan to pave the way for the long-term financing of the capital market.

The annual meeting of the Islamic Development Bank (IDB) Group will be held in the first week of April in the Tunisian capital, Tunis. Fifty-seven ministers of economy and finance of member countries and about one thousand experts, economists and financiers will attend the meeting, which takes place between April 1 and April 5. There will also be a signing ceremony of financial partnership agreements between the IDB Group and some member states, including Tunisia. The IDB Group formally opened in 1975 and currently has 57 member states.

The market for Gulf Arab bonds and Sukuk achieved an all-time high issuance of 70 billion U.S. dollars in 2017, with sustained investor appetite expected in 2018. A recent study titled "The GCC (Gulf Co-operation Council) Fixed Income Market: Then and Now," said that 70% of all debt and Sukuk issuances were from sovereigns, while 30% were from corporations. The study was conducted by Emirates NBD and Swiss portfolio management firm Fisch Asset Management. Regarding the outlook for 2018, increased debt issuance could continue in the region despite elevated geopolitical instability. According to Usman Ahmed, Head of Investments at Emirates NBD, growth of the GCC's debt investor base is expected to continue in 2018, with demand coming from the record inflows to emerging markets and supply provided by the diversification needs of the region.

Brunei set up the National Financial Literacy Council for creating a prudent and saving-oriented culture. A study made in 2015 revealed that in Brunei 34% of the household respondents do not have a household budget, as for individual respondents 49% do not actively save, while 24% need credit to finance their everyday needs. The National Financial Literacy Council was established with the aim of ensuring that all Bruneians have access to well-suited financial products, independent and credible information and advice. Crown Prince Haji Al-Muhtadee Billah said the establishment of this council was timely and helpful in raising the quality of life of the people, specifically in terms of financial well-being.

The Chinese government has donated 500,000 U.S. dollars to the Maldives government to speed up repairs in a desalination plant and restore water to the capital. The donation was done after the Maldives government announced an estimated 20 million U.S. dollars would be needed to repair the plant that was damaged in a fire on Thursday resulting in the capital's population of 130,000 being without water for four days. The country hopes to also get monetary aid from Saudi Arabia, Qatar, Kuwait, and other Arab governments. Private donors have also chipped in with an anonymous 1 million U. S. dollars coming in from a Saudi businessman.