Latest News - Tuesday, 30 August 2016
This Week’s Newsletter
This is a free content. Click title to see the full news. Daily Cover Story - India pushes for non-interest banking despite potential backlash
INDIA: Without making any reference to Islamic banking, the Reserve Bank of India (RBI) is making a push to introduce a defining feature of Shariah compliant banking in the Indian Republic weeks before Governor Raghuram Rajan – an ardent Islamic...
Europe remains something of a closed book for Islamic finance, with its large Muslim population failing to give rise to substantial organic...
Editor's Note
Enticed by the business opportunities Muslims could bring, European insurers are actively targeting the Muslim...
Wednesday, 31 August 2016
Volume 13 Issue 35
E.g., 08/30/2016
E.g., 08/30/2016

Daily News Briefs

MALAYSIA: Mustafha Abd Razak, the managing director of Islamic cooperative bank Bank Rakyat, and its chairman, Abdul Aziz Zainal, have been detained by the Malaysian Anti-Corruption Commission (MACC) over a RM15 million (US$3.71 million) case involving a book publishing contract...


IRAQ: United Arab Money Transfer (MTUA) has completed Central Bank of Iraq and Iraq Securities Commission procedures to convert into Al-Arabiya Islamic Bank (BAAI) with a capital of IQD100 billion (US$83.2 million), according to Rabee Securities based on a bourse filing. BAAI...


OMAN: Following the revision in methodology of selecting Shariah index sample, the Muscat Securities Market (MSM) has selected 15 companies that are compliant with Shariah principles to be included on the Shariah Index for the year of 2016, according to a statement. Bank Nizwa...


SAUDI ARABIA: Methanol Chemicals Company (MCC) has signed agreements for the restructuring of all its Islamic short and long-term financing liabilities with a consortium of Saudi banks, namely Saudi British Bank, Samba Financial Group, Gulf International Bank and Riyad Bank, for...


KENYA: The Capital Markets Authority (CMA) of Kenya is working on a regulatory framework to introduce Islamic finance in the country, according to Kenya’s Daily Nation quoting Luke Ombara, the CMA’s acting director of regulatory policy and strategy. Ombara added that the...


OMAN: Mohsin Shaik Sehu Mohammed, who was formerly the head and director of Islamic finance at Al Madina Investment, has been appointed as the senior executive manager heading the newly-established investment banking and capital markets division at Maisarah Islamic Banking...


UAE: Mashreq, which offers Shariah compliant solutions, has appointed Christophe Pella as the new head of its asset management unit and CEO of Mashreq Capital, subject to regulatory approval, according to a press release. Pella most recently served as a global rates portfolio...


MALAYSIA: Kuwait Finance House (KFH) Malaysia has appointed David Power as its new CEO, according to a statement. Power was the group chief retail and private banking officer of KFH in Kuwait from 2014, and led the group retail and private banking function across the domestic...


AUSTRALIA: Islamic Financial Services Council of Australia (IFSCA) has appointed Chaaban Omran as its new CEO, according to a press release. Omran is the former managing director of MCCA, former CEO of Crescent Investments Australasia (Crescent Wealth) and former COO of Quordoba...


EGYPT: Egyptian Life Takaful Company, a member of Gulf Insurance Group, will form a bancaTakaful partnership with NBK Egypt, after receiving approval from the Egyptian Financial Supervisory Authority and is also negotiating a bancaTakaful arrangement with another bank in the...


PAKISTAN: The non-banking microfinance regulatory framework has been introduced by the Securities & Exchange Commission of Pakistan (SECP) following extensive consultation with all stakeholders, according to a statement. Under this framework, NGOs registered with the SECP...


PAKISTAN: Bank of Khyber (BoK), which also provides Islamic banking services, has inaugurated its first branch at the Torkham border of Landikotal tehsil, according to Pakistan’s The Nation.    


MALAYSIA: Sarawak Energy (SEB)’s RM15 billion (US$3.71 billion) Sukuk Musharakah program (2011/2036) has been reaffirmed at ‘AA1/Stable’ by RAM based on the strong support the firm continues to enjoy from the Sarawak state government and federal government, the rating agency...


GLOBAL: Mohammad Faiz Azmi, the executive chairman of PwC Malaysia, has been appointed as the chair of the International Accounting Standards Board (IASB)’s Islamic Finance Consultative Group, while Martin Edelmann, a member of the IASB, has been appointed as the vice-chair,...


UAE: Emirates Islamic (EI) has launched its Flex cards — a new range of Shariah compliant Visa cards that entitle its cardholders to the bank’s new loyalty rewards program, EI SmartMiles.  


UAE: Al Hilal Bank has appointed Yousuf M Sandeela as the executive vice-president for treasury banking, according to a statement. Sandeela will be responsible for the Islamic bank’s operational treasury including cash and liquidity management, in addition to the corporate...


BAHRAIN: Bahrain Islamic Bank (BiSB) is seeking to sell its unproductive assets such as land and shares to the tune of BHD82 million (US$209.65 million) as part of the Islamic bank’s five-year plan to boost growth. CEO Hassan Jarrar was quoted by Bloomberg as saying that BiSB...


SAUDI ARABIA: Abdullah AM Al-Khodari Sons Company (Al-Khodari) has renewed its existing Murabahah financing facilities amounting to SAR132 million (US$35.17 million) as per the addendum to the credit agreement signed on the 25th August with Samba Financial Group. According to a...


GLOBAL: London-based Rasmala, in partnership with Ajman Bank (as a seed investor and sole financier) and Gulf investors, has acquired 72 warehouses in Dubai for approximately AED300 million (US$81.65 million) financed through a combination of equity and Shariah compliant...


THAILAND: The Islamic Bank of Thailand (iBank) is proposing setting up an asset management company to buy debt worth THB53 billion (US$1.52 billion) from the Islamic bank, according to Thailand’s The Nation quoting Ekniti Nitithanprapas, the director-general of the State...


IN THIS WEEK’S ISSUE

Case Study

Ekovest recently tapped the Malaysian Islamic capital market with a Sukuk Wakalah offering of up to RM3.64 billion (US$900.43 million) to kick-start the construction of Setiawangsa-Pantai Expressway. Speaking to Lim Keng Cheng, the...

IFN Country Analysis

Djibouti may be a small nation of some 900,000 (according to United Nations Department of Economic and Social Affairs) with limited resources, but the Horn of Africa nation is leveraging its strength as a Red Sea transit point to develop...

Sovereign Sukuk

As the markets move closer toward the end of the third quarter, there is still a healthy amount of activities lined up in the sovereign Sukuk pipeline, with Pakistan being the latest to potentially issue its third US dollar Sukuk sometime...

IFN Sector Analysis

The marine and aviation sectors have seen a growing pivot toward the utilization of Shariah compliant financing over the last few years for the acquisition, leasing and financing of related projects. DANIAL IDRAKI takes a look at some of...
 

IFN Reports

As the markets move closer toward the end of the third quarter, there is still a healthy amount of activities lined up in the sovereign Sukuk pipeline, with Pakistan being the latest to potentially issue its third US dollar Sukuk...

As the SME sector picks up pace in Africa, an increasing number of corporations and financial institutions are turning to Islamic finance to accelerate its growth and development. Coris Bank International, a commercial bank in...

Last week, we featured a cover story outlining the exciting new opportunities in Iraq for international firms since the improvement in security and the government’s commitment to financial reform. The report generated significant...

India is brimming with Islamic finance opportunities — it is after all the home to one of the world’s largest Muslim population but religious sensitivity and politics have made it difficult for the country to completely embrace...

Things are looking positive for the Qatari stock market as global index provider FTSE Russell indicated that half of the 44 companies listed on the Qatar Stock Exchange (QE) would be eligible for addition to the Global Equity...

The third quarter of the year is entering its final month, and the Islamic finance market has not shown any signs of subdued activities. IFN reviews some of the biggest developments from the past week across different segments...

Amid a flurry of domestic Sukuk activities in the Republic, VINEETA TAN reports that Pakistan is now preparing to re-enter the international sovereign Sukuk market ending a 21-month drought as it continues its aggressive...

Tapping the Sukuk market has proven to be the right decision for Ivory Coast which is on the lookout for alternative streams of income and hoping to capture the wealth of Middle East and Asia; and it is likely that the Republic’s...

In what was a hectic period just two weeks ago, the sovereign Sukuk space took a slight breather the past week, with Indonesia, Brunei and Bahrain issuing their regular government-backed Islamic papers. DANIAL IDRAKI brings you...

GFH Financial Group has revived plans to acquire Shariah compliant Bank Al Khair (BAK) after merger negotiations between the latter and GFH’s subsidiary, Khaleeji Commercial Bank, fell through in 2014. VINEETA TAN takes a closer...

Features

Despite an uncertain prevailing world economic climate, the demand for air travel has continued to grow steadily in recent years. The International Air Transport Association’s global passenger traffic results reflected a 6.5%...

As a quick introduction to the current social climate, ANASS PATEL wants to start by saying that France is in a love affair with Islam. Not a single day passes by where the press doesn’t relate a (bad) event from the Muslim...

SMEs are critical to the creation of employment and sustainable economic growth. In the UAE, for example, they constitute around 60% of the UAE’s non-oil economy and 90% of total businesses, yet they account for only 3% to 4% of...

During a lecture on entrepreneurial finance taught as part of the Executive Master’s degree program in Islamic finance at the Islamic Economics Institute of King Abdulaziz University, one of my students asked me — ‘Why speak of...

Being part of the greater ‘alternative investments’, real estate is an important asset class, and the source of enormous wealth. However, it is not easily accessible for many investors – this is even more valid when it comes to...

Women in Islamic Finance

In the UK, the picture for women working has never looked so good – women participation in the economy is at a record high and the gender pay gap at a record low. However, the picture is not as rosy for the financial sector where...

Column

By Kavilash Chawla, a partner at boutique management consulting firm Bâton Global and a visiting scholar at Drake University. By the time you read this, university students will be getting ready to start classes, either just...

By Mohammed Khnifer, an Islamic debt capital markets banker at a supranational banking institution as well as an AAOIFI-certified Shariah advisor and auditor. With the ongoing market conditions, one should take notice of the...

IFN Correspondents

The sudden collapse of Swiber, an offshore services group based in Singapore, due to the lingering slump in oil prices has resulted in the first-ever default of local currency Sukuk. A subsidiary of the company, Swiber Capital,...

While Canada has a highly regarded and well-functioning financial sector, it is an industry that is continuously evolving to meet the changing needs of its clients and finding new ways to provide financial services to Canadians....

August is the holiday month for Malta. Business is as usual, albeit slow, particularly given that government organizations only work half days and parliament is in recess.  Hopefully, we will have news for next month....

Housing Development Corporation (HDC) is a 100% government-owned entity that deals with land administrative matters in Hulhumale, the newly reclaimed island located in the south of North Male Atoll in the Maldives. The land...

The IDB has formally opened its gateway office in Nigeria on the 22nd August 2016. The opening ceremony was officially witnessed by the minister of finance, Kemi Adeosun along with the president of the IDB, Dr Ahmad Mohamed Ali...

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

Statistics in 2015 for foreigners buying commercial real estate in the US will be upstaged by a bigger spike this year, according to Bloomberg.com. However, SHOEB M SHARIEFF points out that there are a few issues to be considered...

The Islamic banking and finance industry in Malaysia has been growing and has a wider presence in Malaysia based on the report released recently by Fitch Ratings. AHMAD MUKARRAMI and SYED MUHAMMAD NAJMI analyzes whether the...

As the dust settles after last month’s Brexit vote, the smoke is only getting thicker with no clear visibility on the tough road ahead. However, is it really all doom and gloom? Or, seen through a wider context, is it a bitter...

Focus on corporate banking technology is witnessing a resurgence and none more so than in the Islamic states. Trade finance currently supports 90% of world trade; however, emerging economies have seen the highest volumes of trade...

Given the recent recession and skyrocketing inflation, the conversion of Trust Bank in Suriname to a fully-fledged Islamic bank in line with the demand of its stakeholders that prompted its board members to undertake the...