Latest News - Sunday, 31 July 2016
This Week’s Newsletter
This is a free content. Click title to see the full news. Daily Cover Story - IFN weekly market roundup: 23rd – 29th July 2016
This week, IFN takes a look at the activities in the Sukuk market, with Togo making headway; the opening of Islamic repos between two Indonesian banks; Pakistan’s aspiration to bolster the Shariah finance industry; formalized Islamic finance cross-...
  A year has passed since the Iran nuclear deal and the lifting of international sanctions — but where is the flood of inward...
Editor's Note
Iran is open for business, or so the Republic claims but with investors still keeping a distance from the world’s...
Wednesday, 27 July 2016
Volume 13 Issue 30
E.g., 07/31/2016
E.g., 07/31/2016

Daily News Briefs

SAUDI ARABIA: Board members of the National Commercial Bank, which provides Islamic banking solutions, have recommended a dividend distribution of 60 halalas (15.99 US cents) per share for the first half of 2016, amounting to a total of SAR1.2 billion (US$319.84 million),...


PAKISTAN: Takaful operators and insurers have agreed to join the centralized information-sharing solution for health insurance (CISSII), an information technology-based formal mechanism through which insurers can share specified critical information on a real time basis....


MALAYSIA: MARC has withdrawn the ‘AA-ID’ rating on Sunrise’s RM400 million (US$98.06 million) Islamic medium-term note (IMTN) program, following the final redemption of the outstanding RM100 million (US$24.52 million) notes at the expiration of the IMTN program on the 25th July...


UK: After four years of absence, Simon Walker – previously the head of business development at the Islamic Bank of Britain (IBB) – has returned to Al Rayan Bank (formerly known as IBB) as the head of retail sales.


GLOBAL: Malaysia’s CIMB Group and Dubai-based Fajr Capital have formed a strategic partnership which will facilitate deal origination and cross-distribution and collaborative marketing of the firms’ core products in Asia Pacific and the Middle East. The firms said in a joint...


UAE: National Bank of Abu Dhabi (NBAD)’s CEO Alex Thursby said in a conference call as reported by Reuters that he will not be part of the leadership of the proposed merged bank between NBAD and First Gulf Bank. The merger is expected to be completed in the first quarter of 2017...


SAUDI ARABIA: Bank Al Jazira has resubmitted its request for a SAR3 billion (US$799.6 million) capital increase through a rights issue to the Saudi Capital Market Authority, according to a bourse announcement. NCB Capital will act as the financial advisor to this exercise which...


KUWAIT: The board of Kuwait Finance House (KFH) has agreed to sell its 53% stake in Aref Investment Group (AIG), according to a statement. The assets and liabilities of AIG classified for sale amounted to KWD356 million (US$1.18 billion) and KWD174 million (US$574.33 million)...


OMAN: The board of directors of Bank Dhofar has approved a rights issue amounting to OMR40 million (US$103.56 million) at an issue price of 200 baizas (51.78 US cents) per share, according to a bourse filing. The issue price consists of a nominal value of 100 baizas (25.89 US...


SOMALIA: The IDB has signed a US$4.9 million agreement with Towfiq Welfare Trust to support higher education in Somalia, according to a statement. The agreement will finance the purchase of a building as a Waqf for Kismayo University in Somalia under the umbrella of Towfiq...


UAE: Fitch has affirmed the long and short-term issuer default ratings (IDR) of 11 UAE banks as part of its second 2016 peer review of the country’s banking sector, according to a statement. The affirmation of the banks' long-term IDRs, support ratings and support rating floors...


MALAYSIA: RAM has withdrawn the ‘A1/Stable’ rating of Lumut Maritime Terminal’s RM60 million (US$14.73 million) Bai Bithaman Ajil Islamic debt securities, following the company’s full redemption and cancellation of the securities.


TANZANIA: Tanzania has finalized the work to regulate Islamic financial institutions on Mainland Tanzania and Zanzibar and the regulations are expected to be submitted to the relevant authorities soon, according to The Citizen quoting Israel Kamuzora, the commissioner for...


UAE: Pacific Controls is reportedly in talks with banks to restructure debts of AED1.4 billion (US$381.1 million), according to Reuters quoting unnamed sources. The sources also added that the Dubai-based technology company has not made payments on its short-term bilateral loans...


UAE: Tajweez Advisory has issued the Shariah compliance certificate to Chinese Business Hub (CBH) for its Dubai Commercial Investment product structured based on Ijarah, according to a statement. 


MALAYSIA: Syarikat Takaful Malaysia has appointed Ahmad Fuzi Abdul Razak as its new chairman, effective on the 1st August 2016, according to a bourse filing.


INDONESIA: Sri Mulyani Indrawati, the managing director and COO of the World Bank, has taken the helm at the Ministry of Finance of Indonesia as the new finance minister, following a cabinet reshuffle by President Jokowi Widodo, according to a statement. Sri Mulyani replaces...


INDONESIA: BNI Asset Management (BNI-AM) is planning to roll out BNI-AM Dana Pendapatan Tetap Syariah Ardhani, a new rupiah-denominated Shariah fixed income fund that will invest in government and corporate Sukuk, the asset manager confirmed to IFN. BNI-AM targets to achieve a...


UAE: Capital Intelligence has affirmed the financial strength rating of Sharjah Islamic Bank at ‘BBB+’ with a stable outlook. The affirmation, according to the rating agency, is supported by the bank’s good capital adequacy ratio, comfortable net Islamic financing facilities to...


MALAYSIA : Public Mutual has launched two new unit trust funds: Public Islamic Optimal Equity Fund (PIOEF) and Public Optimal Equity Fund (POEF), which seek to achieve capital growth over the medium to long term by investing in a diversified portfolio of index, blue chip and...


IN THIS WEEK’S ISSUE

Case Study

Mohammed Al Barwani Holding (MB Holding) recently revitalized the Omani corporate Sukuk space, after three years of hiatus, with a US$76 million Sukuk Wakalah facility, becoming the second corporate to issue Sukuk and interestingly, the...

IFN Country Analysis

After years of economic struggle, Palestine is finally showing signs of recovery. VINEETA TAN provides an overview of Palestine’s Islamic banking and finance industry. Economic and political background The Palestinian economy has long...

Sovereign Sukuk

In what would be its sovereign debut issuance, Togo announced that it is launching a 10-year Sukuk offering with the Islamic Corporation for the Development of the Private Sector (ICD) as the lead arranger for the deal. Over in Southeast...

IFN Sector Analysis

Islamic syndicated financing witnessed a slight drop in the first half this year as compared with the same period in 2015, although the market welcomed several debutants. DANIAL IDRAKI recaps recent transactions in this specific area of...
 

IFN Reports

INDONESIA: Indonesian banks are taking advantage of a new standard template introduced by the central bank last year to execute Shariah compliant re-purchase agreements (repos), in a move that will deepen the Islamic financial...

In what would be its sovereign debut issuance, Togo announced that it is launching a 10-year Sukuk offering with the Islamic Corporation for the Development of the Private Sector (ICD) as the lead arranger for the deal. Over in...

Islamic finance is top on the agenda of the Arab Monetary Fund (AMF) as an instrument to develop the economies of Arab nations and the institution has aligned with the IFSB to meet this objective. VINEETA TAN reports. “...

Company Focus: Amana Takaful Life expanding Takaful business in Sri Lanka with IPO offering. In a showcase of the growing importance of Takaful in the Sri Lankan market, Amana Takaful Life (ATLL), a wholly-owned subsidiary of...

Since its stellar performance of 2012, Sukuk volumes have struggled against regional and economic headwinds hampering their trajectory. The oil price plummet of 2014-15 strained the GCC and Southeast Asian markets while ongoing...

The Ministry of Human Resources recently issued a decree that exempts SMEs from bank guarantees beginning October this year, in what is considered a move to boost the growth of the industry in the Emirates. How will the new...

It is the digital era — and banks, including if not especially Islamic banks, stand to lose out should they not adapt and implement effective digitization strategies. In previous IFN coverage on the digital race, we have focused...

The Senate of Pakistan has approved the Securities and Exchange Commission of Pakistan (SECP) (Amendment) Bill 2016 which will facilitate better superintendence and control over the country’s capital and financial services market...

VINEETA TAN reports on the latest regulatory effort by the Indonesian Financial Services Authority to boost its Shariah capital markets. The Indonesian financial services regulator has released a draft regulation on Islamic...

VINEETA TAN explores how IDB’s participation in the new global ‘eTrade For All’ is significant to Muslim communities.  Muslim countries, which generally have relatively smaller participation in the e-commerce market, will...

Features

Syndicated finance is a typical financing provided by a consortium of financiers by sharing the risk of the obligor as the amount of the financing is such that it cannot be taken entirely by any single financier. OSMAN ARSLAN...

As a natural outcome of a developing and expanding economy, increasing population and urban transformation projects in Turkey, financing for real estate investments has become an important issue for the market. BURAK GENCOGLU...

Islamic funds globally have experienced robust growth over the past decade with assets under management currently at around US$60 billion. Contributing to this growth has been the development of new products and solutions to...

In terms of business environment, financial sector development and infrastructure, Singapore as a financial hub has been very successful, edging past Hong Kong as the world’s third-best financial center, according to the recent...

Much of the focus in recent years in the Islamic finance space has been on the explosion in the issuance of Sukuk (or so-called Islamic bonds), the use of Islamic finance or tranches in financing large infrastructure projects and...

Women in Islamic Finance

By Laura Elder, a cultural anthropologist and teaches in the Department of Global Studies at Saint Mary’s College in Notre Dame. Her primary research interests are global political economy, Islam and gender. She can be contacted...

Column

By Mohammed Khnifer, an Islamic debt capital markets banker at a supranational banking institution as well as an AAOIFI-certified Shariah advisor and auditor. Europe’s top business schools are sending a message: “MBA holders...

By Kavilash Chawla, a partner at boutique management consulting firm Bâton Global and a visiting scholar at Drake University. This month has been another one for the ages, with global turmoil everywhere we look. The most...

IFN Correspondents

The listing of Qatar First Bank (QFB) on the Qatar Stock Exchange took place on the 27th April 2016, making the bank the 44th listed company on the exchange. However, the greater importance and significance of this listing is...

  In accordance with its annual general meeting, Zaman Bank shareholders have consented to the voluntary reorganization of the bank into an Islamic bank. Within a few months of the preparation of a high-level business...

The slow pace of the Islamic banking implementation process in Morocco was sharply criticized by local and foreign experts as well as observers. Indeed, the legal framework was adopted in November 2014 but banks are still waiting...

Maybank Indonesia has issued its ‘Shelf Registration Sukuk Mudarabah I Maybank Indonesia Tranche II’ facility (Sukuk Mudarabah) amounting to IDR700 billion (US$53.34 million). The offer period for this Sukuk Mudarabah was from...

The shock of waking on Friday morning to find that the UK public had voted to leave the EU was compounded by the prospect of flying to Kuala Lumpur on the Sunday. Not that I dislike meeting our Islamic investors in Malaysia,...

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

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...

Following a severe crisis in 2000-01, Turkey has established a new economic framework, prioritizing fiscal discipline, targeting inflation under a newly-independent central bank and restructuring banking system regulations. This...

A factoring agreement is a transaction where a company sells its account receivable, normally on a discounted basis, to a financial institution. The terms factoring and receivable financing are often used simultaneously although...