In observance of a public holiday in conjunction with Maulidur Rasul, full IFN Daily Alerts service will resume on the 13th December 2016.
Latest News - Sunday, 11 December 2016
This Week’s Newsletter
This is a free content. Click title to see the full news. Daily Cover Story - IFN weekly market roundup: 3rd – 9th December 2016
It has been a busy week across segments and geographies, with the recently-launched Shariah standards on gold contributing much of the excitement. While the sovereign Sukuk market continues to be dominated by Asian powerhouses, GCC corporate players...
Some of the world’s fastest-growing economies are feeling the strain. Across Asia, currencies have tumbled, exports have weakened,...
Editor's Note
The global financial markets continue to be rocked by political and economic challenges, with the repercussions of the...
Wednesday, 07 December 2016
Volume 13 Issue 49
E.g., 12/11/2016
E.g., 12/11/2016

Daily News Briefs

GLOBAL: The Malaysia Deposit Insurance Corporation (PIDM), which provides coverage to both Islamic and conventional banks, has signed two separate MoUs with the Federal Deposit Insurance Corporation of the US and Korea Deposit Insurance Corporation. Rafiz Azuan Abdullah, the...


FRANCE: French Takaful specialist SAAFI will launch a physical gold investment product, known as the Gold Dinar savings plan, in collaboration with INAIA on the 9th December, Ezzedine Ghlamallah, the director of SAAFI, informs IFN. INAIA, which is managing and distributing the...


KUWAIT: Fitch Ratings in a statement commented that Kuwait's recent elections will increase tensions between the executive and legislature, hindering economic and fiscal reforms, although the extent to which this will happen is unclear. Fitch also said that the absence of a...


PAKISTAN: Bank of Azad Jammu & Kashmir, which offers Islamic financial products, has announced on its website the appointment of Imran Samad as CEO and managing director. Imran was previously a senior executive at NIB Bank.


IRAN: Iran’s proposed IRR10.85 quadrillion (US$359.75 billion) 2017 budget which envisions a 50% increase in oil revenues based on a US$50 oil price assumption and a IRR33,000/US$ exchange rate and includes a number of reforms that will boost tax revenues and reduce subsidy...


INDONESIA: Otoritas Jasa Keuangan (OJK), the Indonesian Financial Services Authority, is formulating a reporting mechanism for Sukuk and bond transactions in the secondary markets. Applicable to both stock exchanges and over-the-counter markets, OJK said in a statement that the...


AZERBAIJAN:  Baku International Sea Trade Port has signed an MoU with the Islamic Corporation for the Development of the Private Sector (ICD) through which both entities will study the potential opportunities in the Port of Baku and Alat Free Trade Zone and examine the...


MALAYSIA: CIMB Islamic is expecting the positive momentum in the Sukuk market to continue through the first quarter of 2017 with a number of Malaysian Ringgit and US Dollar Sukuk offerings expected over the next few months, Mohamad Safri Shahul Hamid, CIMB Islamic’s senior...


MALAYSIA: RAM has reaffirmed the ‘AA1/Stable’ rating on Teknologi Tenaga Perlis Consortium (TTPC)’s RM835 million (US$188.34 million) Sukuk Murabahah, according to a statement. The rating reflects the company’s strong business profile, which is underscored by the favorable terms...


GLOBAL: The IDB has listed a US$1.25 billion Sukuk facility on NASDAQ Dubai, making it the largest Sukuk issuer on the bourse with a total of US$8.55 billion, according to a statement. NASDAQ Dubai now has a total of 56 Sukuk listings worth US$43.96 billion, making it the...


MALAYSIA: Malaysia Venture Capital Management (MAVCAP) have signed an MoU with Silicon Valley-based Elixir Capital to set up and operate the Global Islamic Economy Fund, targeting up to US$250 million for the Islamic innovative funding ecosystem. Elixir Capital’s managing...


GLOBAL: The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the IDB, and AlHuda Center of Islamic Banking and Economics (CIBE) have signed an MoU to implement the ‘Biniog Sathi Banking Model’, a new initiative by the ICD to develop...


GLOBAL: The 2017 sector outlook for GCC banks remains negative as weaker economic growth will feed through to credit fundamentals, according to Fitch. The rating agency noted that low oil prices continue to pressure bank liquidity and are also taking their toll on asset quality...


GLOBAL: A Kuwaiti-based investment fund has acquired Newark tower, which houses Panasonic Corp of North America’s headquarters, from SJP Properties and Matrix Development Group for US$165 million, according to Wall Street Journal. The acquisition was closed by KFH Capital...


BAHRAIN: Al Salam Bank-Bahrain (ASBB) and Benefit, Bahrain’s national electronic network for financial transactions, have teamed up to launch a credit card payment gateway service channel, according to a statement.  


BAHRAIN: Khaleeji Commercial Bank (KHCB) has been assigned first-time long and short-term local and foreign currency issuer ratings of ‘Ba3/Not-Prime’ and a baseline credit assessment (BCA) and adjusted BCA of ‘b1’ by Moody’s. According to a statement, the rating agency also...


SAUDI ARABIA: Saudi Investment Bank (SIB), which also provides Islamic banking services, has recommended to its extraordinary general assembly to increase its capital by 7.1% from SAR7 billion (US$1.87 billion) to SAR7.5 billion (US$2 billion) by capitalizing SAR500 million (US$...


UAE: Shareholders of National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) have approved a proposed merger of the two banks during respective general assembly meetings on the 7th December. According to a statement, the recommended transaction will involve a share swap, in...


GLOBAL: The IDB and the French Agency for Development (AFD) are expected to sign an MoU that will enhance cooperation between the two entities which will help strengthen development programs in the Islamic bank’s member countries, according to a statement. The president of the...


QATAR: Ezdan Holding has signed an Islamic syndicated financing facility agreement worth US$460 million for a period of eight years with Mashreq Bank acting as the lead manager for the transaction, according to a bourse filing.


IN THIS WEEK’S ISSUE

Case Study

  Bahrain recently issued US$1 billion-worth of trust certificates in the global Sukuk market in a bid to plug its widening budget deficit, with response for the Regulation S facility outstripping its expectation amid a backdrop of...

IFN Country Analysis

With little Islamic finance regulatory development and very tepid movements in the Islamic insurance and asset management sectors on the back of a massive restructuring of the Kingdom’s sole fully-fledged Islamic bank, the outlook for...

Sovereign Sukuk

As markets draw closer to the end of the year in what has been a hectic 2016 for both the Islamic and conventional financial markets, the sovereign Sukuk space saw a slew of activities and announcements over the past week, which suggests...

IFN Sector Analysis

Companies are increasingly expected to adhere to strict standards of corporate governance by its shareholders, and Islamic financial institutions are subject to an additional layer of compliance with Shariah rules and principles, as they...
 

IFN Reports

GLOBAL: Now that a Shariah standard on gold has been launched by AAOIFI and the World Gold Council (WCG), the UAE and Turkey wasted no time in leveraging on the new development with Dubai Multi Commodities Center (DMCC) and Borsa...

As markets draw closer to the end of the year in what has been a hectic 2016 for both the Islamic and conventional financial markets, the sovereign Sukuk space saw a slew of activities and announcements over the past week, which...

As global investors continuously search for reasonable returns in a world filled with increasing volatility and uncertainties, Hong Kong-based Mirae Asset Global Investments has jumped on the Shariah bandwagon by launching its...

Headquartered in Bahrain and with a growing regional and international presence, wholesale investment bank Securities & Investment Company (SICO) is one of the leading securities houses in the Gulf, as well as managing a...

While 2016 has seen a volatile and turbulent period in the financial markets, global Sukuk issuance for the year has exceeded some of the estimates made earlier by Islamic finance observers. According to RAM Ratings, global...

The International Islamic Trade Finance Corporation (ITFC), an instrumental force in promoting Islamic trade finance, has had a rather busy period lately in bridging the trade divide between Africa and the Middle East. It...

In a move to further increase the reach of Islamic finance in Pakistan, the country’s Ministry of Finance has established four subcommittees comprising relevant stakeholders to suggest recommendations for the promotion and...

  Welcome to the latest edition of our monthly global analysis, a comprehensive review of what’s been happening across the world’s Islamic markets over the past four weeks. November has seen an improvement on the...

The global Sukuk market has Indonesia to thank for its expansion in the first half of 2016 as President Joko Widodo (Jokowi) revs up Shariah compliant borrowings to accelerate infrastructure development in the Muslim Indonesian...

The Paris Agreement may be under threat by a Trump presidency which could risk undoing valiant efforts by the global community to combat climate change, but VINEETA TAN observes that private players in the energy and...

Features

Islamic asset management refers to the investment management process where the manager complies with Shariah principles in the asset-screening process. The concept of socially responsible and ethical investing is the bedrock of...

In a capitalist economy, the main purpose of an enterprise is to make profit. In simple terms, the creation of business is purely to maximize shareholders’ wealth. In general, the goal of corporate governance is to achieve the...

Islamic finance is used to refer to financial activities conforming to Islamic law (Shariah). Islamic Shariah allows all economic activities in the framework of protecting public interest and safeguarding it. Man may profit from...

Some types of Middle Eastern institutional investors exhibit a preference toward investing either in assets from their home country or from the broader home region, and they incorporate a strategic overweight to these markets in...

GCC family offices have developed over the last few decades into diverse and successful businesses and the pace of such development has triggered the need for family offices to adapt to their business, social and geopolitical...

Women in Islamic Finance

This week, IFN is paying tribute to one of the brightest lights of the global Islamic finance industry – Nevine Loutfy, CEO of Abu Dhabi Islamic Bank (ADIB) Egypt – whose tragic passing we are mourning, yet her legacy continues...

Column

By Kavilash Chawla, a partner at boutique management consulting firm Bâton Global and a visiting scholar at Drake University. In US politics, we have come to expect ‘October surprises’ where new information about candidates...

By Mohammed Khnifer, an Islamic debt capital markets banker at a supranational banking institution as well as an AAOIFI-certified Shariah advisor and auditor. Almost every month I receive academic enquires or a request for...

IFN Correspondents

Three of the world’s major rating agencies, Moody’s Investors Service, Fitch Ratings and S&P, are currently reviewing South Africa’s credit rating. Africa’s most industrialized country, forecasted to grow by 0.5% this year,...

Following October’s flurry of sovereign issuances, November has seen a greater focus on corporate financing in the Islamic debt capital markets. The government of Dubai has indicated that expanding the Al Maktoum Airport will...

November has been an interesting month. Donald Trump’s presidential victory in the US surprised many, and the markets responded accordingly.  Reuters reported that some planned Islamic bond issuances out of the Middle...

On the 9th and 10th November, the UAE hosted in Dubai the Global Business Forum on Latin America 2016. The Dubai Chamber of Commerce and Industry was responsible for the organization of the forum. It was a very good occasion to...

  Luxembourg continues to remain a very popular jurisdiction for the establishment of funds both conventional and Shariah compliant with the Association of the Luxembourg Fund Industry recently noting that as of August...

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

The most basic service a bank can provide to members of the public is to act as a depository for their money. This is the essence of commercial banking. The public generally holds its deposits with banks in the form of accounts....

South Africa’s National Treasury wants to make the country the hub for Islamic finance in Africa. The country has the most sophisticated and advanced financial legislative and governance structures and regulations on the...

The Islamic finance industry has achieved remarkable growth since its inception in the last four decades. DR MARJAN MUHAMMAD explores. According to Islamic Financial Services Industry Stability Report 2016 issued by the IFSB,...

The recovery process in banking starts when a customer’s account is classified as non-performing or has been written off due to a default in payment for a certain period of time. In any financial institution, recovery is an...

Donald Trump has been elected the 45th president of the US, with the Republican Party retaining control of both the US Senate and House of Representatives. One party will now have unified control of the Executive and Legislative...