Industry Article

Technically, sukuk that are traded in the secondary market are quoted based on the spreads to a particular risk-free security, such as government investment issues (GII). In the conventional bond market, these spreads are known as credit spreads. The credit spreads are the main focus of investors in corporate bonds. Similarly, the sukuk spreads indicate the compensation to risk, referred to as the risk premium. The risk premium is the factor that makes investors willing to invest in sukuk despite the risks that they may encounter. Even though sukuk are structured based on the different kinds of contracts, which can be sale-based, leased-based, partnership-based or agency-based, the associated risks to sukuk is mainly reflected in the spreads, which is comparable with other sukuk that possess similar rating, duration and outlook for trading purposes. For example, a fund manager observes that the 10-year �AAA� Idaman Sukuk is trading at a spread of 108bps above the 10-year GII. If another corporate sukuk with similar credit rating, duration and outlook were trading at a 115bps on a relative value basis, the second sukuk would be a better buy. Why? This is because with the same risk, the investor could get a higher compensation or premium (115bps vs 108bps) by investing into the second sukuk. This is one of the strategies carried out by the fund manager in an active sukuk portfolio management.

This project summary outlines research examining the impact of Waqaf An-Nur Corporation Berhad (WANCorp) community development programs. WANCorp is a company limited by guarantee dedicated to utilising waqf (endowment) principles to foster community and economic development. Its mission is to channel waqf resources into initiatives that uplift society, including programs in healthcare, socioeconomic empowerment, spiritual enhancement, and welfare support. In 2019, the Johor State Islamic Religious Council entrusted WANCorp to manage Johor�s Business Zakat Agency (JCorp). This strategic move expanded WANCorp�s reach, allowing it to serve a broader beneficiary base through a range of impactful programs. The Centre of Excellence for Islamic Social Finance (COE ISF) researchers employed the Theory of Change framework to evaluate its programs� societal impact. This model analyses how specific interventions can generate measurable improvements in community welfare by mapping the pathway from inputs to processes, outputs, and desired outcomes.

The Maldives is witnessing significant advancements in Islamic finance, marked by two major developments: the signing of a strategic partnership between the Maldives Monetary Authority (MMA) and Universiti Islam Selangor (UIS) and the launch of Maldives Finance and Leasing Company (MFLC)'s Shariah compliant financial services arm, MFLC Maal. On the 14th December 2024, the MMA and UIS signed an MoU to foster collaboration in Islamic banking, finance and social finance. This partnership aims to promote joint research, professional training and knowledge exchange to strengthen the sector and encourage innovation in Shariah compliant financial solutions.

On the 1st November 2024, the Maldives Islamic Bank (MIB) introduced a series of new banking products at an event in Hulhumale s Central Park. The line-up included FaisaWear, a payment ring designed to be used as a contactless payment option. The rings, available in four styles black with a diamond cut, plain black, foral black and foral white provide an alternative to traditional bank cards and will be available at MIB branches across the Maldives starting Sunday, the 3rd November 2024.

A robust financial sector is paramount for a nation's prosperity, especially for developing countries like Malaysia, where efficient investments are the key driver of economic growth. Financial development affects a nation's environment via wealth and technical effects (Khan et al., 2022). Specifically, it boosts the availability of funds in the economy, enhancing access to capital for businesses and individuals and stimulating economic growth. This increased business and household incomes often lead to increased purchases of automobiles and mechanical appliances that consume more energy, thereby increasing carbon emissions, referred to as the wealth effect. On the flip side, better access to finance enables businesses to invest in environment-friendly technologies at lower costs. This improved energy efficiency reduces greenhouse gas emissions, ultimately promoting environmental quality, known as the technical effect. As nations worldwide passionately strive to achieve the Sustainable Development Goals (SDGs), the interplay between financial development and environmental sustainability becomes increasingly crucial for us. This is particularly true for Malaysia, a dynamic economy that endeavours to attain high-income nation status in 2025 and a net-zero emissions target by 2050. In this context, this article aims to illuminate an intriguing issue: can Malaysia's rapidly growing Islamic finance industry promote economic development while mitigating climate impact?

In a historic move, the Maldives government has decided to allocate US$100,000 from the Maldives Zakat Fund to provide humanitarian aid to Gaza, Palestine. This decision, announced by Islamic Minister Dr Mohamed Shaheem Ali Saeed, marks the first time that funds from the Maldives Zakat Fund are being directed overseas. The assistance will be channeled to Gaza through the Qatari Red Crescent, with the Islamic Ministry having previously sent aid to Gaza twice through this organization. Dr Mohamed Shaheem stated that the US$100,000 will be sent to Gaza in two instalments, with the funds earmarked for purchasing food for the people of Gaza. He emphasized that this initiative is being carried out under the directive of the president.