Latest News - Sunday, 26 February 2017
This is a free content. Click title to see the full news. Daily Cover Story - IFN Weekly Market Roundup: 18th February – 24th February 2017
The week brought in promising head starts and prospective outlooks as the end of the second month of 2017 draws closer. In a span of seven days, we witnessed Hong Kong dominating the sovereign Sukuk space; Malaysia taking up the corporate sector;...
This Week’s Newsletter
Wednesday, 22 February 2017
Volume 14 Issue 08
As Islamic bond issuance becomes increasingly widely accepted, the asset class is not only accessing the mainstream but appropriating new...
Editor's Note
It has been a relatively busy first two months of the year in the Sukuk arena and as we wrap up February and prepare to...

Daily News Briefs

MALAYSIA: Zurich Takaful Malaysia has launched a Family Takaful plan targeted at senior citizens, it announced in a statement. Known as Takaful SeniorGold, the scheme offers coverage to those in the 50-80 years age group.   


SAUDI ARABIA: Malath Cooperative Insurance and Reinsurance Company’s request to reduce its capital from SAR300 million (US$79.96 million) to SAR120 million (US$31.98 million) has been approved by the Capital Market Authority. According to a bourse filing, this would reduce the...


SAUDI ARABIA: Al Rajhi Company for Cooperative Insurance has entered into an agreement with the Ministry of Education under which the Takaful operator will provide voluntary health insurance to the employees of the ministry. The coverage, according to a bourse filing, extends to...


SWITZERLAND: RFI Foundation, in partnership with the Swiss Finance + Technology Association, Finocracy and the Responsible Finance & Investment (RFI) Summit partners, has launched the Support Disruption for Good (SDG) Challenge. Blake Gould, CEO of RFI Foundation, told IFN...


UAE: Al Ramz Capital, which offers Islamic financial services, has become a market maker on NASDAQ Dubai for equities and equity futures, according to a statement. 


UAE: The ‘Consumer Card’, a cashback card co-branded by the Department of Economic Development (DED) and Dubai Islamic Bank (DIB), has exceeded the target for its first year with thousands issued over the past six months, according to a press release. The highest combined amount...


MALAYSIA: RAM has assigned ‘AAA/Stable/P1’ ratings to Maybank Islamic’s proposed RM10 billion (US$2.24 billion) Islamic commercial paper/medium-term note program, according to a statement. The proceeds will be used for Shariah compliant funding purposes, and the rating agency...


PAKISTAN: The Securities and Exchange Commission of Pakistan (SECP) has approved the prospectuses of two new Modarabas in Pakistan: Habib Metro Modaraba and Orient Rental Modaraba. According to a statement, SECP’s board certified that the business specified in the prospectuses...


UAE: Dubai Islamic Bank (DIB) has approved the distribution of 45 fils per share as cash dividend for 2016 during its recently concluded annual general meeting, according to a press statement. DIB had reported a group net profit of AED4.05 billion (US$1.1 billion) for the full...


MALAYSIA: Syarikat Takaful Malaysia, the first and only Islamic insurance company in Malaysia to reward a 15% cashback for no claims to General Takaful customers, has paid out up to RM209 million (US$46.37 million) in cashback since 2009. According to Bernama, the cashback would...


UAE: The Dubai Financial Services Authority (DFSA) and the European Securities and Markets Authority (ESMA) have signed an agreement aimed at sharing information and enhancing partnership regarding Dubai International Financial Center-based central counterparties (CCPs)’...


ALGERIA: The Popular Credit of Algeria Bank (CPA) is planning to launch Shariah compliant financing from 2018 onwards, CEO Omar Boudieb was quoted by the Algeria Press Service as saying. The bank is currently evaluating the commercial prospects as well as studying regulatory...


UAE: Fitch has affirmed the long-term issuer default ratings (IDRs) on National Bank of Abu Dhabi, Emirates NBD, Union National Bank (UNB), Abu Dhabi Commercial Bank and First Gulf Bank (FGB) with stable outlook, according to a statement. Concurrently, the rating agency also...


GLOBAL: Fitch Group has appointed Ian Linnell as the president of Fitch Ratings effective immediately, according to a press statement. Linnell, who was previously the global analytical head for Fitch Ratings, will report to Fitch Group President and CEO Paul Taylor.  


MALDIVES: Bank of Maldives Islamic (BML Islamic) has launched its first home construction and real estate financing facility, according to IFN Correspondent Dr Aishath Muneeza, who is the chairperson of the Maldives Center for Islamic Finance. Prior to this BML Islamic only...


MALAYSIA: Four ASEAN audit regulators, under the ASEAN Audit Regulators Group (AARG), and the four largest audit firms in the region (referred to as the Big Four) have agreed on a goal to improve audit quality, according to a press release. The new initiative saw the largest...


QATAR: Qatar Islamic Bank (QIB) has launched a new office at the Ministry of Endowment and Islamic Affairs Tower in West Bay bringing its branch network to 28 nationwide, according to the Peninsula Qatar. 


SAUDI ARABIA: Malath Cooperative Insurance and Reinsurance Company (Malath Cooperative) has announced in a bourse filing the resignation of a member of its board of directors, Dr Ghassan Abdulrahman, effective the 22nd February 2017.


RUSSIA: Moody’s has affirmed the ratings of 14 financial institutions domiciled in Russia and changed the outlooks on the ratings to stable from negative, following the outlook upgrade on Russia's ‘Ba1’ sovereign debt rating to stable from negative. The financial institutions...


MALAYSIA: SapuraKencana Petroleum has announced the signing of a seven-year multicurrency financing facilities amounting up to approximately US$1.5 billion with a consortium of Malaysian, regional and international banks. According to a press release, the proceeds from the...


IN THIS WEEK’S ISSUE

Case Study

The Investment Corporation of Dubai (ICD) recently issued its US$1 billion Regulation S trust certificates. The first GCC Sukuk of the year, the transaction was a jubilant one as it was more than thrice oversubscribed. Speaking to Standard...

IFN Country Analysis

With Brexit becoming a reality, many have noted that France could benefit from the UK leaving the EU including potentially capturing a larger chunk of Shariah real estate investments. But with the country on high alert from a string of...

Sovereign Sukuk

As the markets move toward the middle of the first quarter of 2017, a number of interesting developments have been taking place in the sovereign Sukuk space lately, with the latest being Indonesia looking to tap the global markets with a...

IFN Sector Analysis

Risk management is crucial for Islamic finance, particularly given the risk and return-sharing principle that governs the industry. While in theory offering lower risk exposure due to Islamic finance’s firm principles and basis in the real...
 

IFN Reports

MALAYSIA: Kuala Lumpur hosted 270 Islamic finance leaders from across Asia, the Middle East and Europe last evening as the industry gathered at the prestigious annual Islamic Finance news Awards ceremony to honor and celebrate...

QATAR: Three Qatari banks deciding to merge could give the region the Islamic ‘megabank’ the industry has for years tried to create to no avail, and increase the prospects for larger Islamic syndicated deals and project finance...

As the markets move toward the middle of the first quarter of 2017, a number of interesting developments have been taking place in the sovereign Sukuk space lately, with the latest being Indonesia looking to tap the global...

RUSSIA: Islamic finance is gaining momentum in Russia after the Islamic Corporation for the Development of the Private Sector (ICD), the private arm of the IDB, and the International Association of Islamic Business (IAIB) entered...

In this week’s IFN Weekly Market Roundup, we take a look at consistent players and a promising newcomer in the sovereign Sukuk market; Malaysia’s prominence in potential corporate issuances; Iran’s lookout for bilateral...

SAUDI ARABIA: Saudi Arabia’s insurance companies are finally making profits thanks to regulatory interventions, ending a protracted period of losses for many of the 33 cooperative operators caught in the fiercely competitive...

INDONESIA: Indonesian Shariah banks are performing worse than their conventional peers when it comes to managing risks, selecting borrowers and building their client base, making Jakarta’s goal of doubling its Islamic banking...

While the sovereign Sukuk market witnessed a hectic week with announcements from regular issuers, there was disappointment from the Middle East and North Africa, as both Egypt and Saudi Arabia have decided to postpone their...

While the Islamic finance industry has made significant strides over the years in expanding its footprint and increasing investor awareness regarding Sukuk instruments, it is still grappling with the lack of volume, in comparison...

PAKISTAN: Pakistan’s Modaraba (Mudarabah as it is known in IFN pages) sector has been witnessing a sustained growth level in recent times as it benefits from the Securities and Exchange Commission of Pakistan (SECP)’s efforts to...

Features

KHALID HOWLADAR writes on Islamic finance or, to use his preferred and more inclusive term, ‘Participation finance’, as it is the dramatic political upsets of 2016 – the UK’s decision to exit the EU on the 23rd of June and the...

The value of global Sukuk issuance in 2015 reached US$60.7 billion, where 34.4% or the equivalent of US$20.9 billion comes from the issuance of international Sukuk. The remaining 65.6% or the equivalent of US$39.8 billion was...

One of the main objectives of introducing Islamic banking and finance in the current global economic system is to fill the gaps in the capitalism economic model. In this article, ASIM HAMEED aims to identify how to structure our...

Global economic growth has been significantly weak in the years since the 2008 financial crisis. The US has experienced the weakest cyclical recovery since 1958 and, due to a double dip recession in the region, the eurozone’s GDP...

Fintech is a portmanteau of money-related innovations that depicts a rising monetary administration part in the 21st century. Originally, the term applied to technology and relates to the back-end of established consumer and...

IFN Correspondents

December has been a quieter month as issuers and investors position themselves for 2017. We are already seeing signs that 2016’s trend of sovereign issuances will continue into the first half of next year. The past month has...

In November 2016, Al Rayan Bank opened its inaugural branch in Scotland, becoming the first Shariah compliant bank to establish itself in Scotland and presenting its 2,000 existing customers with an opportunity to interact with...

Governance, both Shariah and corporate, remains a vital component in the industry that requires further tightening. Various jurisdictions have applied some form of governance to boost the Islamic financial market, whether by...

A year ago to the day, looking ahead to 2016 and the prospects for Islamic finance in Oman, we observed the following: “….it seems that the domestic Sukuk market will not be the primary source of financing for the government to...

With private sector participation worth over an estimated US$50 billion, the new Saudi Arabian Ministry of Environment, Water and Agriculture has announced a new water desalination program to be split between the privatization of...

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

In Spain, no relevant transactions have been carried out under Shariah yet. However, there are clear indications that the situation will change in a not-too-distant future. JOSE ANTONIO RODRÍGUEZ explores.  Several...

It might sound hard to believe, but there are some other things going on in the US beyond the change of administration that are grabbing the attention of Islamic finance professionals. It’s been an interesting year and there have...

The launch at the end of last year of the AAOIFI Shariah Standard on Gold (the Standard) developed in collaboration with the World Gold Council opens up an entire asset class to Islamic finance, and could power the future growth...

In this concluding part of a two-part series, KHALID HOWLADAR continues his views on participation (Islamic) finance with the hope of seeing further developments in inclusive capitalism using participation finance principles as...

For the longest time, Islamic banks have suffered at the hands of delinquent customers due to the low penalties imposed for late payments or no penalties at all. As a result, customers take advantage of the situation by purposely...