Latest News - Friday, 12 February 2016
This Week’s Newsletter
This is a free content. Click title to see the full news. Daily Cover Story - IFN weekly market roundup: 6th-12th February 2016
DEALS Oman Telecommunications terminates plans to issue US$82.16 million and OMR18.4 million (US$47.62 million) in senior unsecured fixed rate certificates due 2021 at the present time as advised by its advisors. The company has formally rejected...
Islamic retail products in the UK are finally taking off – but the long-awaited results appear to be based not on religious principles but...
Editor's Note
The Islamic finance industry is an organic, interconnected organism: and success in one section will have a ripple...
Thursday, 11 February 2016
Volume 13 Issue 06
E.g., 02/12/2016
E.g., 02/12/2016

Daily News Briefs

MALAYSIA: Sime Darby’s proposed perpetual subordinate Sukuk program of up to RM3 billion (US$723.39 million) has been assigned a preliminary rating of ‘AAIS’ by MARC, which also affirmed the ratings of ‘MARC-1ID/AAAID’ on its existing RM4.5 billion (US$1.09 billion) Islamic...


BAHRAIN: Khaleeji Commercial Bank (KCB) has inaugurated a new branch in Juffair Mall, bringing the Islamic bank’s branch network to 11 nationwide, according to a statement.


IRAN: Bank Mellat has joined force with Iranian mobile phone operator Irancell to roll out a direct debit payment service, according to Financial Tribune.


JORDAN: The Royal Jordanian Airlines has secured a US$275 million dual Islamic and conventional secured syndicated facility, according to a statement. The five-year facility was oversubscribed and will be used to consolidate and refinance its existing debt and also further...


MALAYSIA: For 2016, the National Entrepreneurial Group Economic Fund has allocated RM10 million (US$2.41 million) to its Islamic pawn-broking program under its Ar-Rahnu micro-credit scheme. Made available to entrepreneurs and SMEs of all races, Bernama reports that Al Rahnu is...


MALAYSIA:  The Selangor Waqf Corporation – through its subsidiary Urus Maju Ehsan (UME) – will begin developing five housing and commercial projects mid this year, with an expected completion date of the end of 2018 and 2019. According to Bernama quoting UME executive...


MALAYSIA: The Malaysian government has dissolved the Special Cabinet Committee on Halal Industry Management and Development, replacing it with the newly-minted Malaysia Halal Council (MHM) whose functions would be divided between the Malaysian Islamic Development Department (...


INDONESIA: Bank Aceh is planning to transform into a Shariah compliant general bank and has entered into an MoU with BNI Syariah to that effect, according to a statement. The agreement will see BNI Syariah working with Bank Aceh in areas including providing technical assistance...


SAUDI ARABIA: Paul Lotto has left Clifford Chance to join DLA Piper’s Riyadh office as a partner, according to a statement. With experience in both Islamic and conventional finance, Lotto will focus on Saudi Arabia and strengthen the firm’s presence in the region.  


GLOBAL: The Asian Infrastructure Investment Bank (AIIB) announced in a statement the appointments of five vice-presidents to its senior leadership team: the former chief secretary to the UK Treasury Sir Danny Alexander as corporate secretary; Dr Kyttack Hong, currently the...


INDONESIA: Bareksa, an integrated portal providing news, tools and ratings to help investors choose mutual funds, has been granted a mutual fund selling agent (Agen Penjual Efek Reksa Dana) license by Otoritas Jasa Keuangan – the first for an IT-based company, according to a...


IN THIS WEEK’S ISSUE

Case Study

Gulf Marine Services (GMS) in November 2015 secured a new US$620 million syndicated debt facility comprising Islamic and conventional financings to fund continued growth. Speaking to Abu Dhabi Islamic Bank (ADIB), the mandated lead...

IFN Country Analysis

As explored in our previous analysis on Yemen, the country’s economy continues to be heavily pressured by extremely difficult political and security conditions – making any economic recovery highly vulnerable as confirmed by the World Bank...

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

One of the many effective means of raising funds is undoubtedly derived from the securitization of assets. Over the past few months several notable developments have transpired in the securitization arena. NABILAH ANNUAR provides a summary...
 

IFN Reports

AUSTRALIA: The Australian residential property market may be undergoing a correction but this has not deterred Shariah investors from deploying investments into the country’s booming commercial sector which has been attracting a...

Maintaining its impetus, the sovereign Sukuk market over the past week was upbeat with several new developments. Apart from our regular issuers, the industry is seeing traction from Iran as well as Italy as these countries gear...

The UAE Companies Investing Abroad Council last week identified Egypt as a strategic destination for Emirati and Arab investors. Due to its diversified market, major infrastructure requirements as well as the government’s efforts...

Sudan’s fully Shariah compliant financial system is proving to be a challenge for the Sudanese government in forging bilateral relationships with foreign powers, compounding on the mountain of hurdles the African Republic faces...

Shariah compliant forex (FX) trading may seem paradoxical, deterring many Muslims from dealing with such sticky transactions. But up and coming global brokerage firm Capital Index  intends to do away with such complications...

The Shariah advisory board plays a pivotal role in ensuring operations and businesses are in compliance with Shariah law. However, the opacity surrounding the pricing of the services of these scholars has long been a...

SUDAN: Sudan’s fully Shariah compliant financial system is proving to be a challenge for the Sudanese government in forging bilateral relationships with foreign powers, compounding on the mountain of hurdles the African Republic...

The International Finance Corporation (IFC) has signed a US$75 million investment agreement with Bank Danamon Indonesia to develop the bank’s Shariah compliant trade financing operations. The investment will be structured as an...

Malta Stock Exchange (MSE) is due to launch a new Islamic index today, the 8th February, as part of its aggressive 2016 business development strategy. Working with Shariah compliant advisory firm Dar Al Sharia, the index hopes to...

What’s been going on in the world this week? LAUREN MCAUGHTRY brings you an update of the most significant economic, regional and global events, issues and trends. Foreign funds are pulling out of China even as the...

Features

The growth of Islamic finance in Brunei is fully supported by the country’s central bank, Autoriti Monetari Brunei Darussalam (AMBD) and its first and only Islamic bank, Bank Islam Brunei Darussalam. The country’s focus is not...

The rising tide of technology innovation has been a boon to the Islamic and conventional finance industries. The 1,400-year-old concept of Islamic commerce has come of age in the last two decades – developing highly sophisticated...

Last year, we saw Islamic finance making gains in the global financial sphere. One of the fastest-growing segments in the worldwide financial system today, it is estimated at a value in excess of US$1.48 trillion. Throughout 2016...

There are two Islamic financial institutions in Palestine — Palestine Islamic Bank (PIB) and Arab Islamic Bank (AIB), in addition to about five, smaller specialized financial institutions which provide Islamic financing. DR...

There has been a dramatic transformation in the political leadership of Canada in the past couple of years that has the potential to make a positive impact on the prospects for the development of an Islamic financial sector in...

Women in Islamic Finance

From Cambridge to Harvard, Dr Aida Othman’s academic repertoire in Shariah law is as distinguished as her illustrious career as an Islamic finance lawyer at one of Malaysia’s leading legal firm. Heading the award-winning Shariah...

Column

Clear thinking requires us to avoid confusing religious questions and empirical questions. Muslims answer religious questions by interpreting the Quran and Sunnah and applying that understanding to the question. Empirical...

IFN Correspondents

For every industry, there exists a set of factors that influence the strategic approach of its corporates, Ijarah being no exception. Although these factors are transient, given the dynamic nature of markets, an underlying ‘fixed...

What a start to the year, and not the one that many of us had hoped for or predicted. The geopolitical situation in the Middle East remains very troubling, with Islamic investors keener than ever to invest overseas. While the...

In early 2016, Abdel-Raouf Kotb, the chairman of the Insurance Federation of Egypt stated that he expected Egypt’s Takaful industry to grow by 20% in 2016. This bold estimate provides us the opportunity to discuss Takaful in the...

Pursuant to Royal Decree No. (A/24) dated the 30th November 2015, the First Circuit of the Banking Disputes Committee and the First Circuit of the Appeal Committee for Banking Disputes, as well as the First Circuit of the...

Toward the end of 2015, the Capital Markets Authority (CMA) granted its approval to Apollo Asset Management Company (AAMC) to operate as a unit trust manager following the fund manager’s compliance with the requirements under the...

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

Now that TRID is in full swing and the implementation phase is over, everyone it seems is getting used to the Truth in Lending Act (TILA)/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rules, or you might...

Taking a company public was one of those ingenious methods devised to raise capital. Everyone knows that the growth trajectory of a company, which may start out as a sole proprietorship, may evolve into a partnership, shed its...

The State Bank of Pakistan (SBP) has announced the dates for the sale of the government of Pakistan (GoP) Sukuk Ijarah (from February to April 2016) and the targeted auction amounts as shown in Table 1 and Table 2. The...

At the moment, some Muslims in the Ukraine are permitted to access existing financial services available in the country. To start a business under Shariah, or to create special financial products suitable for Muslims in Ukraine...

In early 2016, popular opinion on the utility and function of offshore centres (OFCs) or, to use the more inflammatory term, tax havens, must be close to an all-time low. The general view, stirred up by cash-strapped governments...