04 Foreign News
04 Foreign News
@ Halal | May-June . 2024
Emirates Islamic pioneers Fractional Sukuk
�nnovative offering mar�s a significant departure from traditiona� investment norms
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EMIRATES Islamic strengthens its position as the leading Islamic financial institution in the United Arab Emirates ( UAE ). It is the first Islamic bank in the region to offer the Fractional Sukuk service .
“ As a pioneering Shariah-compliant bank , we are glad to provide investors access to regular income markets at a lower investment threshold and unlock new financial opportunities for them , said Emirates Islamic Head of Treasury and Markets Ebrahim Khalil Qayed .
This innovative offering marks a significant departure from traditional investment norms . It grants retail investors access to the international Sukuk markets with a minimal investment threshold of as low as US $ 25,000 .
Traditionally , entering the international Sukuk market involved significant entry overheads , with minimum investments reaching US $ 200,000 . Investors with smaller capital often find this to be a significant drawback .
Fractional Sukuk enables investors with smaller investment amounts to access Sukuk investments . This promotes greater financial inclusivity .
One of the most notable attributes of Fractional Sukuk is its flexibility . It allows investors to customise their Sukuk portfolios
THE National Meat Institute of Uruguay focuses on the red meat market , particularly beef and lamb . This initiative is enacted with a trade mission to promote Uruguay ’ s high-quality halal beef and lamb in the Gulf Cooperation Council ( GCC ) countries .
Uruguay is recognised for producing high-quality halal-certified beef and lamb . Its fertile soils and ideal climate create a favourable environment for raising livestock and crops . Because of this , meat can be produced naturally .
Uruguay is also a preferred meat source for health-conscious consumers .
The country ’ s adoption of pasture-based cattle feeding resulted in nutritional attributes . These include low levels of saturated fats , balanced Omega 6 and Omega 3 , iron , and vitamin E in Uruguayan meat .
In addition , the country ’ s experience in meat production systems and farming practices has led to the development of quality-certified halal meat products .
“ Thanks to our 400-year tradition in producing and exporting meat , we ’ ve developed a quality-certified halal meat ,” said The National Meat Institute of Uruguay Chairman Conrado Ferber .
He emphasised that their meat is freerange , grass-fed , and free from antibiotics and hormones . It also operates on 100 per cent
based on their preferences . These include risk tolerance , desired returns , and credit ratings .
Additionally , the flexibility of Fractional Sukuk also entails the possibility of liquidating investments by selling holdings through Emirates Islamic . This ensures ready access to funds when required .
“ The Fractional Sukuk offering not only allows investors to enjoy the benefits of Sukuk ownership while managing risk but also supports their investment goals and promotes overall financial empowerment ,” added Ebrahim .
Emirates Islamic is committed to providing customers cutting-edge , Shariah-compliant products and services . The bank ’ s strategic vision aligns with its mission to provide investment opportunities to all and assist individuals in achieving their financial goals .
Uruguay to lead halal beef and lamb exports in the GCC
traceability , meeting the specific requirements of the halal market .
In 2023 , Uruguay made significant strides in the GCC market , with US $ 13 million worth of halal-certified beef exports and US $ 5 million worth of lamb exports .
Seventy-five per cent of exports came from Oman , Saudi Arabia , and the UAE . This denotes a growing demand for halal products in the GCC region .
The red meat market in the United Arab Emirates ( UAE ) is expected to reach US $ 860.64 million by 2029 .
Considering the potential , the National Meat Institute of Uruguay plans to increase its quality-certified halal meat supply . They aim to promote it to consumers and restaurants in the GCC region .
MYTM and AlHuda CIBE to revolutionise Islamic finance through FinTech solutions
ALHUDA Centre of Islamic Banking and Economics ( CIBE ), a household name of Islamic finance services , partnered with MYTM , a prominent Islamic FinTech company .
Together , they plan to explore potential opportunities for collaboration , with the shared goal of reforming the Islamic banking and finance sectors .
The two companies signed a Memorandum of Understanding ( MoU ) in the presence of MYTM Chairman and former Minister of Commerce and Investment , Dr Sohail Zafar Cheema and AlHuda CIBE Chief Executive Officer ( CEO ), Mr Muhammad Zubair Mughal .
Other notable guests include the CEO of MYTM Pakistan , Dr . Zain Farooq , and the CEO of MYTM Kingdom of Saudi Arabia ( KSA ), Jawad Mahmood .
Recently , Islamic finance has boomed in popularity , propelled by increased awareness of interest-free financing solutions . As consumer preferences shift in favour of the sector , new opportunities for innovation and expansion emerge .
Additionally , the integration of FinTech in financial transactions has completely transformed traditional financial transactions . These changes have made transactions more convenient , efficient , and cost-effective for consumers and financial institutions .
Thus , MYTM presents its Islamic FinTech suite product , FINOVA .
Likewise , AlHuda is actively exploring Blockchain , Artificial Intelligence ( AI ), InsurTech , cryptocurrencies , NFTs , CBDCs , RegTech , Metaverse , AR , VR , Robo advisory , and Neo banking solutions . It also plans to incorporate FinTech solutions into its range of services .
Through this joint venture , MYTM and AlHuda CIBE can leverage each other ’ s distinctive areas of expertise . With AlHuda CIBE ’ s vast network , MYTM could market FINOVA in new regions .
The collaboration between AlHuda CIBE and MYTM acknowledges the crucial role of FinTech in shaping the future of Islamic finance . It emphasises the importance of adopting technologically advanced innovations to ensure the growth and sustainability of the Islamic finance industry .
Collaborations such as AlHuda CIBE and MYTM promote the potential of technology for the Islamic financial sector . Such collaborations can enhance the industry ’ s accessibility and sustainability .