LONDON: The research arm of the Islamic Development Bank plans to use blockchain technology to develop Shariah-compliant products, aiming to support financial inclusion efforts across its member countries.
The Jeddah-based Islamic Research and Training Institute said it had signed an agreement with local firm Ateon and Belgium-based SettleMint, with the first stage to focus on a technical feasibility study.
The agreement is the latest effort to combine blockchain technology to tap demand from Muslim investors, with firms from Indonesia to Canada having already received Shariah-compliant certification for their products.
Involvement of the IDB, a multilateral development institution, could also encourage other fintech firms to incorporate Islamic finance to tap markets across the Middle East, Asia and Africa.
Islamic finance follows religious principles such as a ban on gambling and outright speculation, but until now the sector has focused on traditional retail banking services.
Blockchain involves a shared electronic ledger that allows all parties to track information through a secure network, removing the need for third-party verification.
The IDB said such features would allow for instantaneous clearing and settlement of transactions and asset exchanges, while helping eliminate counterparty risk.
— REUTERS
IDB to develop Shariah-compliant blockchain
IDB to develop Shariah-compliant blockchain
Pakistan urges World Bank support on economic reforms, development agenda
- IMF approved a $7 billion bailout loan for Pakistan in September that comes with a tough economic reforms agenda
- IMF is pushing Pakistan to continue prudent fiscal and monetary policies, mobilize revenue from untapped tax bases
ISLAMABAD: Minister for Finance Muhammad Aurangzeb met World Bank Country Director Najy Benhassine on Tuesday and urged the international lender to support Pakistan in its economic reforms and development agenda, Radio Pakistan reported.
The talks in Islamabad came less than two months after the IMF approved a $7 billion bailout loan for Pakistan that is attached to tough economic reforms. The IMF is pushing Pakistan to continue prudent fiscal and monetary policies, and to mobilize revenue from untapped tax bases.
Pakistan’s $350 billion economy has struggled for decades with boom-and-bust cycles, needing 23 IMF bailouts since 1958.
“During the meeting, the Finance Minister highlighted the importance of collaboration with the World Bank to support Pakistan’s economic reforms and development agenda,” Radio Pakistan reported. “The Finance Minister reiterated the government’s commitment to fiscal discipline, sustainable growth, and efficient resource utilization.”
The discussions focused on the establishment of a robust and transparent tax policy framework to enhance revenue mobilization and improve compliance while ensuring equitable taxation, the report said.
The World Bank team also offered technical assistance to streamline the budget-making process, adopt modern practices to improve transparency and accountability in public financial management, and put in place an effective debt management mechanism to ensure fiscal sustainability and reduce risks.
Issues related to the Agricultural Income Tax Regime and GST harmonization in coordination with provinces and an enhanced focus on the active role of the National Tax Council also came under discussion.
“The Finance Minister expressed gratitude for the World Bank’s support and reaffirmed the government’s resolve to implement reforms aimed at sustainable economic progress,” the reported said, adding that the World Bank officials reiterated the lender’s commitment to assisting Pakistan in addressing economic challenges and achieving its developmental objectives.
The IMF, which approved the new bailout in September, has said the program will require “sound policies and reforms” to strengthen macroeconomic stability and address structural challenges alongside “continued strong financial support from Pakistan’s development and bilateral partners.”
The IMF said in its statement on approving the loan that Pakistan had taken key steps to restore economic stability with consistent policy implementation under the 2023-24 standby arrangement.
It added that growth had rebounded to 2.4 percent and inflation has receded significantly, falling to single digits, amid appropriately tight fiscal and monetary policies.
A contained current account and calm foreign exchange market conditions have allowed the rebuilding of reserve buffers, and the central bank of Pakistan has been able to reduce interest rates by 700 bps since June in four consecutive cuts.
Despite this progress, Pakistan’s vulnerabilities and structural challenges remain formidable and the tax base remains too narrow.
The South Asian country is the IMF’s fifth-largest debtor, owing the Fund $6.28 billion as of July 11, according to the lender’s data.
Saudi Arabia’s Diriyah Co. set to attract new wave of investors with $500m ticket sizes
RIYADH: Saudi Arabia’s Diriyah Co. is attracting a new wave of global investors with potential ticket sizes of $500 million or more, according to the company’s investment head.
Speaking to Arab News during the World Investment Conference in Riyadh, Chief Investment Officer Jonathan Robinson revealed ongoing discussions with international investors spanning Asia, Europe, the Americas, and the Middle East, signaling an unprecedented level of global interest in the company’s projects.
“How many investors? We have dozens of live conversations, dozens, so we’re not talking one or two and we’re not talking one or two in any particular jurisdiction. We have conversations going across all these jurisdictions,” Robinson revealed.
“What’s the size? I think look, you know, we’re probably talking about investments, certainly in the $500 million and up. So it’s a good size, with international investors across multiple continents to come in, in a way, as a co-investor that I don’t think we’ve really seen in terms of breadth and depth or scale so far in the giga-project. So this is an exciting time. It is very real. And I think you will see those kinds of announcements coming out of Diriyah in the coming months,” he added.
“We have live conversations today, with investors in Asia, with investors in Europe, with investors in the Americas, as well as the many conversations that are ongoing across the region and including, of course, in Saudi Arabia,” Robinson said.
“I think in the coming months, you will see us make some pretty exciting announcements about partnerships with that global investor space. And that’s going to be groundbreaking in some respects. Not just for Diriyah, but potentially even for the Kingdom of Saudi Arabia, where you’re going to see a real level of participation joining us as partners and joint ventures in funds, through sole developer, co-developer models, where you’re going to see us partnering with some pretty new names,” Robinson said.
He elaborated on the breadth of investor engagement, highlighting that these partnerships will involve new and established players in Saudi Arabia.
“Some of them will be new names to the Kingdom. Some of them will be existing investors in the Kingdom but looking to step up that game. We’re moving our execution model now to one that’s really engaging with the private sector on this global scale, and those are very live conversations today,” Robinson explained.
“I think you will see coming out of Diriyah in the coming months, certainly into the first quarter of next year, we’ll be in a position to make some pretty big announcements. And those will include investors coming from all three continents,” he added.
Robinson described the initiative as a groundbreaking development for Saudi Arabia’s giga-projects. “I think it’s groundbreaking, first and foremost, that we’re bringing foreign investors in to co-invest in some of our giga-projects. That is groundbreaking. It’s been done at some level through operating companies and what have you, but as investors to co-invest in the development, ownership, operation, that will be groundbreaking,” he said.
MoU signed to strengthen humanitarian ties
- Memorandum was signed by Prince Mohammed bin Fahd bin Abdulaziz, chairman of the PMFHD, and Dr. Abdullah Al-Rabeeah, supervisor general of KSrelief
- Memorandum highlights the Kingdom’s global leadership in relief, humanitarian aid and charity, and expands the scope of operations and the support for missions of both organizations
RIYADH: The Saudi aid agency KSrelief and the Prince Mohammed bin Fahd Foundation for Humanitarian Development signed a memorandum of understanding in Riyadh on Tuesday to enhance cooperation in humanitarian fields and establish a strategic partnership for mutual benefit.
The memorandum was signed by Prince Mohammed bin Fahd bin Abdulaziz, chairman of the foundation, and Dr. Abdullah Al-Rabeeah, supervisor general of KSrelief.
The memorandum highlights the Kingdom’s global leadership in relief, humanitarian aid and charity, and expands the scope of operations and the support for missions of both organizations.
Prince Mohammed praised KSrelief’s exceptional efforts in humanitarian work, saying: “KSrelief’s vast expertise and capabilities qualify it to provide humanitarian services worldwide. Through this collaboration, we aim for the foundation to contribute to global humanitarian efforts alongside KSrelief.”
He also expressed gratitude to the leadership for its continuous support of humanitarian initiatives delivering aid to those in need.
He added: “The foundation has signed numerous MOUs locally and globally, all achieving their goals and benefiting thousands.
“A notable achievement is the Prince Mohammed bin Fahd Award for Best Charitable Performance in the Arab World, which has benefited many organizations across the Arab world.”
Issa Al-Ansari, the foundation’s secretary-general, said that the memorandum aimed to strengthen cooperation in areas such as training volunteers, conducting research, and implementing developmental and humanitarian projects.
“The parties have agreed to form a joint team responsible for developing an action plan for implementing the memorandum’s terms, including follow-up mechanisms and regular meetings,” Al-Ansari added.
Islamabad district commissioner denies reports of fuel shortages amid opposition protest
- Major roads and highways leading to the capital have been sealed off since last week when PTI party launched protest march on Sunday
- Oil Tanker Contractors Association says closed routes had stalled the delivery of petrol to several parts of Punjab province and Islamabad
KARACHI: The Deputy Commissioner of Islamabad on Tuesday rejected reports of fuel shortages after an oil tankers association said the supply of petrol to the federal capital and several cities in Pakistan’s eastern Punjab province had been “severely affected” due to a protest march being led by an opposition party.
Major roads and highways leading to the capital have been sealed off since last week when the Pakistan Tehreek-e-Insaf (PTI) party of jailed former premier Imran Khan launched a protest ‘long march’ to Islamabad on Sunday. The city has been in complete lockdown since, with shipping containers used to block major roads and streets inside Islamabad also.
“Reports of petroleum products crisis in the city are baseless and unfounded,” District Magistrate Irfan Nawaz Memon wrote on X. “There is a sufficient stock of petroleum products at petrol pumps.”
In a statement released on Tuesday, the Oil Tanker Contractors Association had said closed routes had stalled the delivery of petrol to several parts of Punjab, Pakistan’s most populous province, and Islamabad.
“Routes to Islamabad, Rawalpindi and North Punjab are closed due to which supply from petrol tankers is severely affected,” association spokesperson Noman But said in a statement. “Thousands of tankers are waiting for the route to open.”
Butt said petrol had not been supplied to Gujranwala, Jhelum, Sialkot and Kharian districts in Punjab for the last three days, while supply to Islamabad, Kohala and the northern city of Gilgit was also affected.
“Petrol has run out at pumps in many cities,” he added.
Khan’s party aims to pressure the government to release him from jail. He has been in prison since August 2023 on a slew of charges he says are politically motivated. The party is also protesting against what it says was rigging in the Feb. 8 general elections and calling on the government to roll back the recently passed 26th constitutional amendment, which the PTI says is an attack of judicial independence. The government denies this.
PTI supporters broke through barricades and clashed with police as they marched on the capital late on Monday evening, with Interior Minister Mohsin Naqvi saying three paramilitary troops and one policeman had been killed in clashes.
The PTI said in a statement two of its supporters were confirmed dead while over 30 were wounded.
Media watchdogs condemn ‘concerning’ Haaretz boycott by Israeli government
- Committee to Protect Journalists says tactic is ‘disturbing evidence’ of efforts to prevent coverage of Gaza war
- Haaretz publisher Amos Schocken critical of Israeli policies, prompting government call for restrictions on left-leaning paper
LONDON: Media watchdogs have strongly criticized the Israeli government’s decision to boycott Haaretz, one of the country’s oldest and most critical newspapers, calling it a troubling blow to media freedom and pluralism.
“We are extremely concerned over Israel’s authoritarian drift that undermines media pluralism and the public’s right to know,” said IFJ General Secretary Anthony Bellanger, who called on “the government to review its decision and stop damaging press freedom in the country by boycotting a newspaper.”
Jodie Ginsberg, CEO of the Committee to Protect Journalists, labeled the boycott “deplorable” and accused Israel of intensifying its restrictions on critical media. “Israel’s increasing deployment of restrictions on critical media is further disturbing evidence of its efforts to prevent coverage of its actions in Gaza,” she said.
The Israeli government unanimously approved a proposal on Nov. 24 by Communications Minister Shlomo Karhi to halt all government advertising in and communication with Haaretz.
The decision effectively boycotts the left-leaning outlet, citing comments by publisher Amos Schocken, who had earlier called for sanctions against Israel and referred to Palestinian resistance groups as “freedom fighters.”
Schocken, who has led the paper for over three decades, later clarified that he did not include groups like Hamas in his reference to freedom fighters, emphasizing his support for nonviolent resistance.
Despite this, Haaretz faced significant backlash, publishing an editorial distancing itself from his remarks.
Karhi defended the government’s move, saying Israel “cannot fund a newspaper whose publisher calls for sanctions against the state and supports its enemies during wartime.”
He has previously accused Haaretz of propagating “anti-Israel propaganda” and called for financial penalties against the paper.
The boycott comes amid wider concerns over media freedom in Israel.
Critics point to the introduction of laws like the so-called “Al Jazeera law,” which allows temporary bans on foreign media deemed a national security risk, and ongoing attempts to privatize the public broadcaster Kan.
“Communications Minister Shlomo Karhi, who follows the hardline stances of the Likud party, is leveraging the ongoing war — the longest in the country’s history — to silence voices that criticise the far-right coalition in power,” said Paris-based media watchdog Reporter Without Borders.
The Paris-based watchdog added that such measures will have “lasting, detrimental effects on Israel’s media landscape.”
In response, Haaretz described the government’s actions as an attempt to “silence a critical, independent newspaper,” vowing to continue its reporting despite the restrictions.
