Latest News - Wednesday, 25 May 2016
This Week’s Newsletter
This is a free content. Click title to see the full news. Daily Cover Story - Secondary Sukuk market receives boost from Cagamas’s oversubscribed Islamic reopening
MALAYSIA: The dull secondary Sukuk market will soon receive some color as Malaysia’s National Mortgage Corporation (Cagamas) prepares to list and trade its latest successful Sukuk reissuance. Market participants, including new investors from...
As the global economy slows, Australia is no exception — and after 24 years of growth and a 10-year export boom, the country is facing a...
Editor's Note
In an interesting turn of events, Australia has finally changed its tax laws to accommodate Shariah compliant financial...
Wednesday, 25 May 2016
Volume 13 Issue 21
E.g., 06/25/2016
E.g., 06/25/2016

Daily News Briefs

RUSSIA: The 7th Moscow International Halal Industry Exhibition, also known as the Moscow Halal Expo 2016, will be bringing together players in the Halal sectors under one roof on the 2nd-5th June 2016. IFN is the media partner of the exhibition.


JORDAN: Jordan’s senate has passed the Jordan Investment Fund Law 2016 that entails the establishment of the Jordan Investment Fund, state news agency Petra reported. The fund, which will be headed by the prime minister, will be able to possess, invest and develop projects of...


TURKEY: The Savings Deposit Insurance Fund will put Bank Asya out to tender on the 24th June 2016, according to a notice in Turkey’s official gazette. The tender is for the sale of a minimum of 183.6 million ‘A’ group shares, amounting to 51% of the bank, with an estimated price...


OMAN: Al Yusr Islamic Banking, the Shariah compliant window of Oman Arab Bank, has opened its new flagship branch in Athaiba, which will also serve as Al Yusr's corporate head office, according to a press statement.


MALAYSIA: RAM has withdrawn the rating on Noble Group’s RM3 billion (US$734.32 million) multicurrency Sukuk Murabahah program (2012/2032), as requested by the issuer, as there is no longer any outstanding amount under the instrument, according to a statement. Consequently, RAM...


GLOBAL: GFH Financial Group has been given a warning by Kuwait’s Capital Markets Authority (CMA) of the consequences of non-compliance with the International Financial Reporting Standards (IFRS), a filing with the Bahraini bourse shows. The CMA had issued Disciplinary Board...


UAE: Dubai Group, a unit of Dubai Holding, is in the midst of selling its stake in Shuaa Capital and is also obliged to divest its holdings in EFG Hermes and Bank Muscat this year as part of its restructuring, Reuters quoted Dubai Holding’s CEO, Fadel Al Ali, as saying. Dubai...


GLOBAL: General Electric (GE) has signed an MoU with Saudi Arabian Industrial Investments Company (SAIIC) to co-invest in sectors to develop and localize industrial value chains in Saudi Arabia. GE, which sold a US$500 million Sukuk facility in 2009, said in a statement that US$...


MALAYSIA: Nazir Razak on the 19th May resumed his role and position as the chairman of CIMB Group and director of CIMB Bank following the completion of an independent review on the banking activities relating to his personal account.  Nazir on the 19th April took a...


BAHRAIN: S&P in a statement has revised the outlook on Bahrain-based reinsurer Hannover ReTakaful, a subsidiary of Hannover Re Group, to stable from negative reflecting the reinsurer’s strong capital adequacy over the next two years, supported by profitable technical results...


MALAYSIA: The ‘AAA/Stable’ rating on Cagamas MBS’s RM2.11 billion (US$515.92 million) Sukuk Musharakah Islamic residential mortgage-backed securities (2007/2027) (CMBS 2007-1-i) has been reaffirmed by RAM on the back of CMBS 2007-1-i’s available credit support in the form of a...


IN THIS WEEK’S ISSUE

Case Study

Sime Darby recently made its third comeback to the Sukuk market with a successful issuance of RM2.2 billion (US$546.94 million) perpetual Sukuk at a yield of 5.65%. Speaking to John Chong, CEO of Maybank Kim Eng Group and Maybank...

IFN Country Analysis

The Turkish government continues its aggressive efforts to realize its Islamic finance ambitions: in 2015, the prime minister formed the Islamic Finance Coordination Committee and chaired the G20 meeting of which Shariah finance was a core...

Weekly Poll

As global oil prices continue their downward spiral, the increasing strength of the US dollar has created speculation that some GCC countries may not be able to hold on to their dollar currency pegs over the medium to long term. Over the...

IFN Sector Analysis

The sovereign Sukuk space has seen strong and sustained momentum by some of the largest issuers as well as a number of debut issuers over the past year. Fitch’s recent data, for instance, showed that Sukuk issuance in key markets reached...
 

IFN Reports

The sovereign Sukuk space unfolded a number of new and exciting activities over the past week, with Jordan finally joining the sovereign issuance club. Germany and Nigeria could potentially join the Hashemite Kingdom in the not-...

The Islamic finance sector is heating up in Nigeria, with Lotus Capital making strides in the Halal fixed income market with its latest fund. The Lotus Halal Fixed Income Fund received the final approval from the Securities and...

Institutional and angel investors from Southeast Asia and the Gulf have recently collectively invested SG$500,000 (US$362,440) into a Singaporean Islamic real estate crowdfunding platform, a testament to the growing confidence of...

The industry may be dealing well overall with the continued pressure on oil prices, but the asset management sector is certainly feeling its effects. According to Morningstar, inflows into Shariah compliant funds dropped to US$...

The Islamic business community was abuzz recently when Malaysia’s treasury secretary-general, Irwan Serigar Abdullah, announced that the country is working toward establishing an international Islamic venture capital fund, in...

The Islamic finance industry has for decades been making the perennial call for innovation to propel the industry to greater heights, to stand on par with the conventional boys. Yet, while the innovation gears are turning and...

Jordan has officially made its entry into the sovereign Sukuk market after the Central Bank of Jordan (CBJ) announced that it has successfully auctioned the country’s first Sukuk worth JOD75 million (US$105.68 million). The five-...

A busy week, IFN takes a look at the Sukuk space teeming with a robust pipeline in the sovereign and corporate Sukuk market with a most interesting deal in the making – a US$15 billion transaction from China; the IDB’s efforts in...

IFN can exclusively reveal that a deal has this week been signed between China’s TEB Technology (TEB) and Hong Kong-based SAG Holding (SAG) to develop and expand TEB’s groundbreaking new green technology both in China and...

VINEETA TAN speaks to the IDB’s investment promotion unit to find out what’s in the pipeline for the group. The IDB Group will resume foreign investment promotion work in Sierra Leone within the next year after the project was...

Features

Oil prices have dropped by more than 70% since mid-2014, putting an end to the commodity’s super cycle that started a decade ago. S&P Global Ratings expects the oil price to remain substantially below its peak level and...

Financial technology (fintech) is the convergence of technology with the financial system that has swept the global financial industry these past years. Islamic banking and finance industry players and regulators in Malaysia did...

Individuals and companies operating in a complex environment are constantly exposed to a myriad of risks. The probability of these risks materializing may be reduced through mitigation measures; however, in most cases it cannot...

To receive education is a fundamental right of every human being and it is the duty of governments around the world to ensure easy access for all its citizens without any discrimination, religion or creed. What to be taught, how...

The hype surrounding the interest rate increase in the US and the strengthening of the US dollar has, to a certain extent, been a bit overdone and both have already been priced into global Sukuk in 2015. AHMAD NAJIB NAZLAN writes...

Women in Islamic Finance

Widely recognized for her pioneering work in Islamic derivatives, Norashikin Mohd Kassim is now leading the award-winning asset management arm of the parent of one of the world’s largest Islamic banks (CIMB Group) and a Fortune...

Column

The IDB held its 41st Annual Meeting on the week of the 15th May in Jakarta, Indonesia. The annual meeting saw lots of headlines, including the IDB’s partnership with the UNDP on impact investing in support of the UN Sustainable...

The first thought that crossed my mind when I heard the phrase ‘Marriage Takaful’ was, did we just launch an insurance policy which will compensate the divorcee(s) from the high cost incurred by a divorce? All hopes were...

IFN Correspondents

  This month witnessed the much-awaited announcement regarding the establishment of a national regulatory authority for Shariah in the UAE which is expected to further promote the overall local Islamic economy. ...

Through its Vision 2030 statement, Saudi Arabia is planning the implementation of an economic reform program like none ever seen before. Prince Mohammed Salman Al Saud has generally taken a leading role in relation to such a...

The Sultanate of Oman’s budget (as compared to trade) deficit for 2016 is expected to be around 17% of GDP and is estimated to remain at the same level for 2017, minus a very significant appreciation in the level of the global...

I have a distinct sense of deja vu writing this article, for it was 21 months ago that I speculated on ‘Scotland the Brave?’ and what impact this could have on Muslim investors’ appetite to acquire real estate north of the border...

Last month, the United Bank signed two contracts with the Social Fund for Development (SFD) worth EGP150 million (US$16.85 million) to finance SMEs in Egypt. The second contract, worth EGP50 million (US$5.62 million) will finance...

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 question of how best to structure a short-term liquidity instrument for Islamic banks has been an area of much debate, deliberation, and indeed innovation for nearly 20 years. Treasurers of Islamic banks now have both...

In this exclusive op-ed piece, ABDULLA MOHAMMED AL AWAR, CEO of the Dubai Islamic Economy Development Center, shares with us his thoughts on why Islamic finance is such a compelling proposition for China. Interest in China...

The Australian government has finally released, together with its budget papers on the 3rd May 2016, the much-anticipated final report of the Board of Taxation’s discussion paper from 2011 titled ‘Review of the taxation treatment...

Although Riba-free transactions are one of the cornerstones of Islamic finance, many people in and around the industry do not have a proper understanding of what Riba is. Since there is an absence of a clear understanding of Riba...

The Investment Account Platform (IAP) was launched on the 17th February 2016 by the governor of Bank Negara Malaysia, Dr Zeti Akhtar Aziz and it marked a historic moment in the evolution of the global Islamic finance space and...