Latest News - Saturday, 1 August 2015
This Week’s Newsletter
This is a free content. Click title to see the full news. Breaking news - Chinese Islamic finance deals underway
CHINA: IFN has learned that a China state-owned enterprise has approached banks to arrange two Islamic finance transactions, and has mandated Singapore-based Silk Routes Financials to advise on the matter. A source close to the deals has...
This is a free content. Click title to see the full news. Daily Cover Story - IFN weekly market roundup: 25th-31st July 2015
GLOBAL: We kick off this week’s review with an exclusive sneak peak at a groundbreaking development in China: IFN has learned that a China state-owned enterprise has approached banks to arrange two Islamic finance transactions, and has mandated...
Ramadan has drawn to a close and the Islamic world resumes normal service after its annual period of contemplation, introspection and...
Editor's Note
Although Ramadan may be at an end for yet another year, the principles and precepts which drive the Islamic faith are...
Wednesday, 29 July 2015
Volume 12 Issue 30
E.g., 08/01/2015
E.g., 08/01/2015

Daily News Briefs

IRAN: The outlook on the long-term foreign currency rating (FCR) of Export Development Bank of Iran (EDBI) has been upgraded to positive from stable by Capital Intelligence on the back of Iran’s revised sovereign long-term FCR outlook (also to positive from stable) following the...


PAKISTAN: The State Bank of Pakistan has agreed to establish centers of excellence in Islamic finance in three institutions as part of its financial inclusion program supported by the UK’s Department for International Development. The central bank confirmed in a statement that...


PAKISTAN: Dubai Bank is looking to sell its 14.3% stake in BankIslami Pakistan. According to a bourse filing, Dubai Bank has offered shareholder Jahangir Siddiqui & Company and another shareholder a right of first refusal on a proportionate basis of the 144.2 million shares...


PAKISTAN: Dubai Islamic Bank Pakistan (DIBPL) has extended a PKR6 billion (US$58.72 million) Musharakah facility to Punjab Food Department to procure wheat, according to an official statement. It was also recently announced that the food department also procured a PKR9.5 billion...


MALAYSIA: Following the finalization of Kuala Lumpur Kepong (KLK)’s proposed Islamic medium-term note (IMTN) program (2015/2027) of up to RM1.6 billion (US$418.13 million), RAM has updated the rationale on the proposed facility. According to a statement, these changes have no...


GLOBAL: Phillip Life Assurance, the insurance arm of Singapore’s Phillip Capital Group, is looking to partner with Islamic organizations as part of its strategy to become the market leader in Takaful in Thailand. According to The Nation, the company and its partners will...


UK: Specialist insurance market Lloyd’s of London is planning to apply for an onshore reinsurance license and to open an office in Malaysia, pending confirmation from the UK and Malaysian governments, reported to Reuters. The firm is targeting the Takaful market as well as to...


GLOBAL: Insurance rating and information source company, AM Best, has appointed Gregson Carter as the managing director, analytics for its Europe, Middle East and Africa (EMEA) markets, according to a press release. Carter will assume his new position in September 2015 and will...


MALAYSIA: MARC in separate statements has affirmed Malayan Banking (Maybank)’s long-term and short-term financial institution ratings at ‘AAA’ and ‘MARC-1’ with a stable outlook. The rating agency has also affirmed Maybank Islamic’s financial institution ratings at ‘AAA/MARC-1’...


IRAN: The Iranian parliament has ratified the Combating Financing of Terrorism bill in its efforts to expand its banking ties with the international community, announced the Central Bank of Iran. Before the approval of this bill, prevention of terrorism financing was governed...


GLOBAL: The IDB during its 306th board meeting approved US$76.6 million in funding for new development projects in member and non-member countries. According to an official statement, financing approved include: US$40.4 million for two water projects in Cameroon and Kyrgyzstan;...


IN THIS WEEK’S ISSUE

Case Study

National mortgage provider Cagamas on the 26th June successfully concluded the sale of its RM500 million (US$131.61 million) Islamic commercial paper (ICP). Auctioned at a time when markets were nervous about the Federal Open Market...

IFN Country Analysis

Determined to diversify its pool of funding and propel its Islamic finance industry forward, Jordan is making steady progress in that respect. VINEETA TAN traces the development thus far. Regulatory landscape Islamic banking was...

Weekly Poll

As the industry progresses towards an era where Islamic finance is no longer a foreign concept, one cannot help but ask what initiatives could be taken to accelerate and cement this position. Making a bold move, several Islamic banks have...

IFN Sector Analysis

Undoubtedly the face of Islamic finance, every Sukuk offering from first-time issuers indicate a significant breakthrough for both the company and the global Shariah compliant industry. With more entities testing their luck in the Islamic...
 

IFN Reports

TURKEY: Kuveyt Turk Participation Bank has sold Turkey’s largest lira Sukuk to date through an IPO, against the backdrop of a healthy Turkish Sukuk pipeline. The bank raised TRY160 million (US$59.46 million) from the 189-day...

GLOBAL: The ringgit has been displaced as the most preferred Sukuk currency as the Malaysian legal tender plummets to historic 17-year lows amid a plunge in Chinese equities and decline in global oil prices. A comparison of...

Analysts are projecting for Islamic and conventional Kuwaiti commercial banks to experience greater growth in terms of credit expansion and margin this year supported not only by their diversification strategies but more...

The weaker grade Sukuk market is showing no signs of abatement as higher-yield Islamic bond indexes continue to outperform indexes of their better-rated counterparts. VINEETA TAN provides a quick recap on the Sukuk market for the...

Jordan’s Governorate Development Fund (GDF) has agreed to provide Shariah compliant project financing instruments in a move, VINEETA TAN suggests, would boost the Kingdom’s Islamic finance sector as the government seeks to grab a...

Lack of economies of scale, underpenetration and a market highly overconcentrated — these are but a few of the reasons why the global Islamic insurance industry is struggling to expand further despite promising double-digit...

Slightly on the quiet side, last week only saw one sovereign issuance — from Indonesia. Apart from that, Jordan witnessed a new venture this week believed to encourage a sovereign issuance in the country. Additionally, the global...

When Kuwait Finance House announced it was launching a fully-fledged Islamic bank in Germany, it was as if there was a sudden shift of focus to the European country. However, the nation has been for years steadily growing in the...

In the last year, many Shariah compliant investments have transpired across the US real estate market. Islamic financial institutions from Saudi Arabia, Bahrain and the UK alike have made acquisitions in what now seems to be a...

Pakistan may have one of the world’s most conducive legal infrastructure for microfinance and a booming Islamic finance industry, yet Shariah compliant microfinancing in the Republic has lagged behind. VINEETA TAN, however,...

Features

The last few years have been somewhat of a watershed for Islamic finance. We have seen successful debut Sukuk issuances from the UK, Luxembourg, Hong Kong and South Africa. There have also been declarations of intent from a...

A return to debt issuance by the Saudi Arabian government could encourage growth in the country’s corporate Sukuk market. Upcoming regulatory reforms could also make Sukuk more attractive for a corporate sector that has...

Japan has been involved in Islamic finance mainly since its current wave of global growth around 2005, backed by increasing oil prices. Private and public sectors were both the actors of the development. Not just during this...

GCC capital markets have continued to see downward pressure exerted from lower oil prices in 2015. Although oil prices have rebounded slightly since March, OPEC action has curtailed any significant upward movement driving the GCC...

In developments matching all expectations, Islamic finance is taking shape in the Senegalese capital. Already many programs and projects have been experimenting with financial products available to populations in different areas...

Column

Firstly, Eid Mubarak to all of our readers. Ramadan, as always, has been a period of both deep reflection and action, on personal and professional fronts. During the first few days of fasting, I was required to attend a...

IFN Correspondents

The signing of the MoU for the use of the Mini Master Repo Agreement (MRA) facilitated by Bank Indonesia (the central bank) on the 2nd July 2015 marked another important development in the Indonesian Islamic banking industry. MRA...

GLOBAL: The weaker grade Sukuk market is showing no signs of abatement as higher-yield Islamic bond indexes continue to outperform indexes of their better-rated counterparts. Year-to-date, the Dow Jones Sukuk Index outshone...

After 12 years of conflict in terms of nuclear power, finally on Tuesday the 14th July 2015, a deal was finalized after more than two weeks of furious diplomacy in Vienna between Iranian diplomats and major world powers....

For the first time last month the Tadawul, Saudi Arabia’s stock exchange, opened up to foreign investors. The Tadawul is not only the largest stock market in the Middle East with a total market capitalization of over US$550...

“Sometimes your best investments are the ones you don’t make”. Donald John Trump Sr, an American business magnate, investor, television personality, author, and politician, made this thoughtful statement.  “Risk comes...

Shariah Pronouncement

Query:   A corporate entity, which is a customer of an Islamic bank, had deposited an amount in a term deposit account for a period of three years on the basis of Mudarabah. However, upon completion of one year it has...

Special Reports

Several years ago, around 2008, the writer was asked by industry commentators whether the classic Sukuk structures common in the market would finally evolve from ‘asset-based’ structures to ‘asset-backed’ structures that were...

It is always challenging to have innovative products and services. The challenges vary from country to country and from one school of thought to another. If an individual customer needs an alternative credit card from an Islamic...

If you are getting nervous about the proposed Truth in Lending Act (TILA) disclosure statement changes that are on the way, you needn’t be. It is an ongoing process and it would seem that as soon as you get a good handle on the...

Islamic banking products have a natural and genuine relationship with the business of their clients compared to the shallow relationship conventional banking products have with the business of their clients. ISHRAT HUSSAIN...

Commodity Murabahah/Musawwamah (CM), which is guided by the concept of Tawarruq, may be considered as the most common Shariah contract used by Islamic financial institutions (IFIs). The trading platform is an important component...