Latest news with #Shariah-compliance
Business Recorder
21-07-2025
- Business
- Business Recorder
Sunridge raises Rs2bn via Pakistan's first agri-infrastructure sukuk
KARACHI: Sunridge Foods, a food processing company, has launched Pakistan's first fully subscribed agri-infrastructure sukuk, raising Rs2 billion in debt financing at the Pakistan Stock Exchange (PSX) on Monday. The sukuk issuance was arranged by BankIslami Pakistan with a 100% credit guarantee provided by InfraZamin Pakistan. Pakistan's real effective exchange rate hits 21-month low in June 2025 In a press statement, the company elaborated that the funds would be utilised to advance the company's balancing, modernisation, and replacement (BMR) projects, focused on upgrading production facilities with sustainable and energy-efficient technologies. 'Key components of the BMR include the installation of 1 MW wind turbines and a 0.5 MW solar power plant to bolster Sunridge's renewable energy efforts, alongside the construction of new silos and warehouses to substantially expand agricultural produce storage capacity. 'Additionally, the proceeds will provide working capital support for Sunridge's critical wheat and rice processing plants in Karachi and Lahore, facilitating increased production of essential staple food items,' the statement read. The sukuk issuance was led by BankIslami Pakistan Limited as the mandated lead arranger, fully subscribed by institutional investors. It was backed by a 100% principal credit guarantee from InfraZamin Pakistan and carried a long-term AAA rating assigned by VIS Credit Rating Company. 'This represents a pioneering step towards sustainable financing via capital markets in the country's agricultural sector.' The sukuk also involved AKD Securities as financial advisor, Al-Hilal Shariah Advisors as Shariah-compliance experts, and Pak Brunei Investment Company Limited as investment agent and trustee ensures robust governance and protection of the interests of sukuk holders under a Shariah-compliant framework. Deputy British High Commissioner Lance Domm hailed the sukuk as a milestone in expanding climate-friendly, Shariah-compliant finance in Pakistan's agri-infrastructure sector, believing it would make economic growth sustainable. 'The UK, through its support to InfraZamin and other financial institutions, remains committed to strengthening Pakistan's financial ecosystem,' he said. InfraZamin Pakistan CEO Maheen Rahman said the credit guarantee strengthened investor trust and unlocks capital for sustainable agriculture. Budgetary requirements: Ijara Sukuk funding to help govt save Rs32bn per year Sunridge Foods chairman Amir Shahzad noted the Sukuk would modernise production, boost renewable energy, and expand storage of essential food staples. BankIslami Pakistan president and CEO Rizwan Ata emphasised the importance of Shariah-compliant finance in driving sustainable economic growth. PSX chairperson Shamshad Akhtar praised the initiative as a bold, private-sector-led response to climate and food insecurity. PSX CEO Farrukh Subzwari reaffirmed the exchange's role in supporting purposeful, collaborative solutions that mobilise capital for national priorities and long-term sustainability.
Business Wire
08-07-2025
- Business
- Business Wire
Alpaca and ZAD Partner to Bring Shariah-Compliant Investing Globally
NEW YORK & KUWAIT CITY--(BUSINESS WIRE)-- Alpaca, a self-clearing broker-dealer and brokerage infrastructure API, and ZAD, a leading Kuwait-based investment platform for Shariah-compliant US stocks and ETFs, today announced their strategic partnership to expand access to Shariah-compliant investment products. This partnership continues to open financial access for investors seeking to align their financial growth with Islamic principles. 'If we were a conventional investment application, we would not have reached the growth levels that we have in the past couple of years. It's very important for the people in the region,' explains Abdullah Alotaibi, ZAD's Co-Founder and Deputy CEO. Share With global Islamic finance assets surpassing $5.5 trillion USD in 2024, a report from Standard Chartered forecasts they could reach $7.5 trillion USD by 2028. This is largely from key markets like Saudi Arabia, Malaysia, Kuwait, and the UAE, with countries across Southeast Asia and Africa seeing increased demand for Shariah-compliant financial solutions. Recognizing this, ZAD is expanding access to their local Kuwait market and Gulf Cooperation Council (GCC) markets like Saudi Arabia. Their expansion plans and commitment to making Shariah-compliant investing accessible has been a cornerstone of their success. 'If we were a conventional investment application, we would not have reached the growth levels that we have in the past couple of years. It's very important for the people in the region. They really appreciate it, they want it, and they're very careful with what they buy,' says Abdullah Alotaibi, ZAD's Co-Founder and Deputy CEO of Fintech Brokerage. ZAD has partnered with Alpaca to build these products, including Shariah-compliant Instant Funding, which was launched recently. They are also collaborating to deliver margin trading, options trading, and high-yield cash accounts, becoming one of the leading platforms to offer these products in a Shariah-compliant way. While building Shariah-compliant infrastructure has presented unique challenges, the solutions developed with Alpaca's Broker API are scalable across other Islamic regions. For instance, the margin trading product is an asset-backed lending model rather than interest-based, adhering to Islamic law. 'There are service providers that tell you, 'this is what we have, take it or leave it.' Not Alpaca,' says Abdullah. 'They listen to us. They understand the region well. They're helping us offer the best possible products to our clients.' 'We're grateful to be innovating with ZAD in the rapidly growing Islamic finance and are excited to be their partner in delivering Shariah-compliant margin trading, options trading, instant funding, and more. Shariah-compliance is a key focus at Alpaca as we look to support and expand financial accessibility globally,' says Yoshi Yokokawa, CEO and Co-Founder of Alpaca. About Alpaca Alpaca is a US-headquartered self-clearing broker-dealer and brokerage infrastructure for stocks, ETFs, options, fixed income, and 24/5 trading – raising over USD170 million in funding. Alpaca is backed by top-tier investors globally, including Portage Ventures, Spark Capital, Tribe Capital, Social Leverage, Horizons Ventures, Unbound, SBI Group, Derayah Financial, Elefund, and Y Combinator. About ZAD ZAD is a Kuwait-based digital investment platform, offered by The Securities House, that provides global stock market access and offers Shariah-compliant products. ZAD aims to simplify the investment and trading process for people who adhere to the principles of Shariah. Options trading is not suitable for all investors due to its inherent high risk, which can potentially result in significant losses. Please read Characteristics and Risks of Standardized Options before investing. All investments involve risk; for more information, please see our Disclosure Library. Brokerage services are provided by Alpaca Securities LLC (member FINRA / SIPC), a subsidiary of AlpacaDB, Inc. Technology and Services offered by AlpacaDB, Inc. This is not an offer, solicitation, or advice to buy, sell, or open accounts in any jurisdiction where Alpaca is unlicensed.
Arabian Business
23-04-2025
- Business
- Arabian Business
New Board certifies DMCC Tradeflow as fully Shariah compliant
DMCC Tradeflow platform has announced that its Islamic unit is fully compliant with Shariah's rules and principles, the guidelines set by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI), and the regulatory requirements of the Higher Shariah Authority of the Central Bank of the United Arab Emirates. This follows the DMCC's appointment of a Shariah Supervisory Board to oversee its Islamic finance offerings. The Board carried out an extensive review of the platform's processes, structure, and contractual framework before certifying that it was fully Shariah-compliant. DMCC strengthens Shariah-compliance The Board will ensure that all transactions through the DMCC Tradeflow adhere to Shariah's rules and principles and the highest ethical and regulatory standards, confirming that it remains at the forefront of innovation and integrity in Islamic trade finance. The move strengthens DMCC's position as a leading Shariah-compliant trade finance platform. It will provide financial institutions with greater assurance and enable them to scale their Islamic trade finance operations with confidence through DMCC Tradeflow. The Board comprises two esteemed Islamic finance scholars with deep expertise in Shariah-compliant financial structures and governance – Prof Dr Jassim Al-Shamsi, Chairman of the Shariah Supervisory Board, and Prof Dr Mohammed Ali Al-Qari, Member of the Shariah Supervisory Board. Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, commented: 'DMCC Tradeflow provides financial institutions with a secure, transparent and fully Shariah-compliant mechanism to facilitate commodity-based transactions. Trusted Islamic trade platform DMCC Tradeflow has been operating under Shariah principles since 2013, when it first received a Shariah-compliance certification issued by the platform's former Shariah advisor. The appointment of a new, dedicated Shariah Supervisory Board builds upon this legacy, and also reinforced its commitment to adhere to evolving Islamic finance standards and best practices. 'In 2024 alone, the platform recorded over 201,000 Islamic finance transactions with a value of over AED1.4 trillion (US$381.2 billion). The appointment of a dedicated Shariah Supervisory Board reinforces our unwavering commitment to upholding the highest standards of Islamic finance and enhancing confidence among financial institutions, further strengthening the position of Dubai as a global hub for Shariah-compliant financial services.' DMCC Tradeflow provides a transparent online platform for the registration of ownership of commodities stored in UAE-based facilities. It supports a wide range of financial transactions, with a particular focus on Commodity Murabaha, one of the most widely used and essential instruments in Islamic finance for liquidity management. A leading international business district that drives the flow of global trade through Dubai, the Centre has over 25,000 top multinationals and high-impact startups registered with them.
