Launch Partners

Launch Partners

IFN Investor Monthly Round-up: 1st to 31st May 2024

In the past month, we have seen major fund launches and several IPOs — clearly indicating the Shariah investment climate is well and thriving. Among the top highlights is Malaysian pension fund Kumpulan Wang Persaraan mandated to place half of the new RM6 billion (US$1.28 billion) Dana Pemacu (Booster Fund) in Shariah compliant investments.

IPOs continue to excel with Parkin, a paid parking facilities and services provider in the UAE, completing its IPO with a market capitalization at listing of AED6.3 billion (US$1.72 billion). Parkin’s IPO had received a Shariah compliance certification from Emirates NBD.

Other offerings include the Capital Market Authority (CMA) of Saudi Arabia approving AlBilad Investment Company’s King Faisal University Endowment Fund and also Alkhabeer Diversified Income Traded Fund 2030 units on the Saudi Exchange.

Sedco Capital launched a Shariah multi-asset fund for listing on the Saudi Exchange (Tadawul). Alef Education Holding launched its Shariah compliant IPO to be listed on the Abu Dhabi Securities Exchange. Fast Cables launched its IPO to be one of five firms slated to be listed on the Pakistan Stock Exchange. The others for prospective listings are Emaar Pakistan, CCL, FF Steel and International Packaging Films.

The CMA of Saudi Arabia approved the public offering of the Mulkia Murabaha and Saving Fund by Mulkia Investment and licensed Quencia Capital to conduct managing investments activity in the securities business.

The Pakistan Stock Exchange listed the Mahaana Islamic Index Exchange-Traded Fund. The index measures the performance of the top 30 Shariah compliant companies selected from KMI All Share Index constituents.

Alternative investments

Bursa Carbon Exchange (BCX) announced plans to hold the auction of its first Malaysian carbon credits from the Kuamut Rainforest Conservation Project on the 25th July 2024 and UK firm XTCC’s Shariah compliant investment ecosystem now features multicurrency carbon credit assets from various validated projects — including renewable energy, nature-based solutions and blue carbon.

Global trading platform Webull Securities introduced Webull Malaysia, which provides investors with access to trade Bursa Securities and Bursa Derivatives alongside US-listed stocks and exchange-traded funds via its app.

Digital asset management company Halogen launched the Halogen Shariah Crypto Titans Fund, a multi-coin fund that enables investors to own a basket of digital assets with large market capitalization.

The TVM Healthcare Afiyah Fund closed at SAR920 million (US$245.14 million), received from a group of Saudi, GCC and European investors led by JADA, the Public Investment Fund’s fund of funds company.

Crowdfunding platform Mekyal received a Financial Technology Experimental Permit from the Capital Market Authority of Saudi Arabia to test offering and investment in debt instruments.

Investing platform eToro is using Arabesque AI for a new Shariah compliant portfolio aimed at clients in the Middle East while

Malaysian gold sales company GB GOLD adopted Shariah compliance.

The Dubai Financial Market’s new Arena platform offers alternative capital-raising and investment opportunities for emerging companies that are already generating revenue with a minimum two-year operating history.

Deals

Ithmaar Holding’s shareholders discussed and approved the proposed acquisition of the company’s financing and investment portfolios by GFH Financial Group.

In Oman, several endowment institutions signed MoUs to receive the support of Bank Nizwa

Gulf Islamic Investments (GII) signed a SAR1 billion (US$266.45 million) agreement with LogiPoint, a subsidiary of Saudi Industrial Services Company, to create warehousing solutions across Saudi Arabia.

Saudi investment company Alpha Capital, through a Shariah compliant fund, acquired 20% of Forus Real Estate Investment & Development, which runs a hospitality business and operates luxury villas and hotels and

Alinma Retail REIT Fund, managed by Alinma Investment, signed an agreement with Osus Real Estate Company to acquire two new real estate properties in Riyadh.

Malaysia’s Shariah compliant venture capital firm Ficus Capital invested RM2 million (US$420,602) in internet-sharing platform Simplify.

Equities

NSE Indices, formerly known as India Index Services & Products, removed four companies and added one company in its Nifty50 Shariah index; removed 25 companies and added another 25 companies in its Nifty500 Shariah index; and excluded four companies and included a different group of four companies in its Nifty Shariah 25 index as of the 31st May 2024.

Bursa Malaysia introduced the ‘Trading Reminders’ alert for investors for stocks with unusual price and/or volume changes.

The CMA of Saudi Arabia approved the amendment of KKR Saudi’s business profile, authorizing it to conduct managing investments and operating funds activity in the securities business.​

The Securities and Exchange Organization of Iran approved the issuance of callable Sukuk Murabahah in the Iranian capital market. This call option in the Sukuk terms is to anticipate future decreases in interest rates and allows the government to repurchase the securities ahead of maturity to avoid high costs.

National Investment Company received a private marketing license from the Capital Markets Authority of Kuwait to market 50 million shares of its Second Islamic Real Estate Finance Fund.

The Pakistan Stock Exchange introduced same-day settlement for the trading of the government of Pakistan’s Sukuk Ijarah.

Regulations

The Global Forum of Islamic Economics and Finance announced several initiatives aimed at further growing the Islamic finance ecosystem in Malaysia. One of these initiatives is a fundraising mechanism for Waqf developments through P2P financing and equity crowdfunding platforms, with the Malaysian government providing matching funding through the investment scheme Malaysia Co-Investment Fund at a 0% financing rate.

The Securities Commission Malaysia launched its ‘Catalysing MSME And MTC Access to the Capital Market: 5-Year Roadmap (2024–2028)’. It also affirmed the proposed establishment of a social exchange, a dedicated fundraising platform for social enterprises and non-profit organizations “to raise funds at zero coupon and zero capital repayments for projects benefiting the underprivileged”.

The Sharjah Executive Council of the UAE issued a decision on the formation of the Shariah Oversight Committee for Endowments.

The Saudi Central Bank announced that it is seeking public consultation on the updated rules for engaging in debt-based crowdfunding in the Kingdom.

Labuan Shariah financial entities will be getting a 2024–28 five-year tax break.

Moves

Qatar-based Islamic investment banking firm QInvest accepted Co-CEO Hussain Abdulla’s resignation effective the 26th May 2024.

The Islamic Corporation for the Insurance of Investment and Export Credit appointed Dr Khalid Khalafalla as its officer-in-charge, effective from the 19th May 2024. Dr Khalid previously served as the principal executive assistant to the president of the IsDB.

Yap Siok Hoon is the new CEO at Eastspring Investments Malaysia from the 15th May 2024.

SICO Capital appointed Esnad Real Estate Valuation Company as an independent valuer for the properties of SICO Saudi REIT Fund.

Malaysia’s Pelaburan Hartanah opted for internal management of its Shariah compliant commercial property unit trust fund, Amanah Hartanah Bumiputera, ending the present deal with Maybank Asset Management.

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