The Monetary Authority of Singapore (MAS) announced earlier today that it has issued a set of guidelines that will provide greater clarity and certainty for financial institutions offering Islamic banking products in Singapore.

It also announced that with immediate effect, Singapore-based banks may enter into Diminishing Musharaka financing - a full partnership or joint venture held between a bank and a group of individuals.

In addition, MAS has ensured equal tax, regulatory and liquidity treatment of the Singapore dollar sukuk - or Islamic bonds issuance - with Singapore government securities, effective immediately.

Click here to view the guidelines.