Latest News - Wednesday, 8 July 2015
This Week’s Newsletter
This is a free content. Click title to see the full news. Daily Cover Story - BNM’s exit from Sukuk space – an opportunity for others to shine
GLOBAL: The financial community may have been reminded of the shortcomings of the Islamic finance industry as a result of S&P’s recent dramatic Sukuk forecast revision – which saw initial 2015 projections halved – but simultaneously, it is...
In March this year Emirates Airline closed a US$913 million Sukuk issuance, in the first-ever deal backed by the UK government through UK...
Editor's Note
Islamic finance is always coming up with new innovations, and this week we look at some of the latest excitement in the...
Wednesday, 08 July 2015
Volume 12 Issue 27
E.g., 07/09/2015
E.g., 07/09/2015

Daily News Briefs

GLOBAL: Afghanistan’s Kabul Bank, which offers Islamic banking services, is said to be close to being acquired by Pakistan’s MCB Bank, according to Bloomberg. The Pakistani lender is also reportedly negotiating to buy a Tanzanian bank.  


PAKISTAN: JCR-VIS Credit Rating Company, according to a press release, has maintained the entity ratings of First National Bank Modaraba (FNBM) at ‘A/A-1’. The ratings draw strength from the implicit support of the National Bank of Pakistan (NBP) which owns National Bank...


THAILAND: Several Asian and Middle Eastern financial institutions have expressed interest in state-owned Islamic Bank of Thailand (IBank) which is seeking help from private investors to rehabilitate its business, reported Gulf Times, quoting chairman Chaiwat Uthaiwan. Any stake...


QFB
QATAR: Qatar First Bank (QFB), according to an announcement on its website, has appointed Ziad Makkawi as CEO with immediate effect. Prior to joining the Islamic bank, Ziad was CEO of Istithmar World, the private equity investment arm of Dubai World. 


BAHRAIN: Ibdar Bank has appointed Ahmed Al-Rayes as chief investment officer, according to a press release. Al-Rayes was most recently the head of academic, Islamic finance and quality assurance at the Bahrain Institute for Banking and Finance prior to joining Ibdar Bank. 


MALAYSIA: Dr Amat Taap, CEO of the Finance Accreditation Agency, in a recent interview with IFN revealed that it is in the midst of developing the Islamic Finance Professional Qualifications Standards (IFPQS), which provide the mechanism to classify learning levels of...


MALAYSIA: Syarikat Takaful Malaysia expects its overall company growth to hit 15% in 2015 compared to 12% in 2014, according to Bernama. Driven by a positive market response to its product offerings, Mohamed Hassan Kamil, the group managing director of the company, believes that...


QATAR: Moody’s expects the Qatari government, rated ‘Aa2/Stable’, to maintain high levels of public spending and continue to push for economic growth despite weaker oil prices and the country is anticipated to register a 7% growth in GDP this year. The rating agency’s...


MALAYSIA: RAM in a statement has reaffirmed the ‘A2/Stable/P1’ financial institution ratings of Bank Muamalat and the ‘A3/Stable’ rating of its RM400 million (US$104.75 million) Islamic subordinated Sukuk program (2011/2026). The one-notch difference between the bank’s long-term...


UAE: Aafaq Islamic Finance has formed an agreement with Emirates College of Technology (ECT) to promote Islamic banking and finance. The Dubai firm said in a statement that it will implement occupational training programs focusing on the Islamic economy under the MoU which will...


OMAN: Maisarah Islamic Banking Services, after the establishment of its Azaiba, Salalah and Sohar branches, launched its fourth branch in Birkat Al Mouz as the bank plans to expand its presence across the Sultanate in 2015, according to a press release.  


IN THIS WEEK’S ISSUE

Case Study

Malaysia’s strategic investment fund, Khazanah Nasional, on the 18th June successfully issued the first tranche of its responsible investment Sukuk program (First Sukuk Ihsan). At a periodic distribution rate of 4.3% per annum, the Sukuk...

IFN Country Analysis

While the global financial crisis robbed Bahrain of its title as the world’s Islamic finance hub, the Kingdom has over the years rebuilt itself and further strengthened its legal and financial infrastructure propelling it to the fore of...

Weekly Poll

Islamic finance assets grew at an annual growth rate of 17.3% between 2009 and 2014. The double-digit growth benefited from the various thriving sectors of the niche industry. For the poll installment last week IFN asked the industry which...

IFN Sector Analysis

Shariah governance is one of the pillars of Shariah compliant financial services companies. To ensure sustainability, compliance and credibility, scholars and governance should be observed at the highest standards possible. Good Shariah...
 

IFN Reports

The market is seeing a rise in Basel III-compliant Tier 1 Sukuk offerings after a slew of Tier 2 issuances, and this trend, VINEETA TAN writes, is expected to gain momentum as the global Islamic banking community seeks to...

Despite weak oil prices and depressed external demand, analysts are optimistic of Malaysia’s economic position and Islamic finance growth story – VINEETA TAN analyzes the situation further. After two years of negative outlook...

The Arab Petroleum Investments Corporation (APICORP) is looking to tap the Islamic debt capital markets with its debut Sukuk sale expected this year as the Saudi-based multilateral development bank positions itself to become a...

Over the last seven days, the sovereign Sukuk space has witnessed active participation from governments and central banks in expanding their offerings. Bahrain, Indonesia and Malaysia have raised the stakes for the regular Sukuk...

Shariah compliant property specialist 90 North Real Estate Partners has made its initial foray into the Netherlands in partnership with Dubai’s Arzan Wealth. VINEETA TAN writes that this move signals the growing interest of...

Aafaq Islamic Finance is perhaps best known for its Shariah compliant financial products and e-solutions; however, the Dubai player is gaining a name for itself as a major force in the Islamic finance human capital space. VINEETA...

As emerging markets start to flounder amid shaky global growth projections and concerns over an upcoming Fed rate raise, investors are looking towards safe havens for long-term growth. RHB Islamic International Asset Management...

According to official figures, almost 80% of Malaysians retiring this year would be entering a life of poverty after leaving the workforce as retirement savings are insufficient to sustain a basic lifestyle. While there is still...

Vehicle financing company, Toyota Capital on the 23rd June signed an agreement with CIMB Investment Bank and BTMU Malaysia to set up an Islamic and conventional commercial paper (CP) and medium-term note (MTN) program with a...

Pakistan’s largest Islamic bank is set to gain an even larger market share as the bank continues its inorganic expansion strategy with the latest acquisition expected to be completed in the next few months. VINEETA TAN explores...

Features

Governance of Shariah compliant financial institutions and Shariah governance generally is at a pivotal point. To date, AAOIFI and IFSB standards have formed the benchmark for institutions and the industry. However, adherence to...

In this article, JOHNNY EL HACHEM provides an overview of two significant projects in Lebanon:  The Water Supply Augmentation Project and the Electronic Trading System. Water Supply Augmentation Project For years,...

In this article, MAJID PIREH explores the equity capital market in Iran and looks at its current situation. The Iranian capital market for trading equities includes two exchanges as follows: Tehran Stock Exchange (TSE),...

Singapore has yet to accomplish its quest to become a global Islamic finance hub. It is undoubtedly one of the top five global financial centers, and has declared openly its objective of emulating this success in Islamic finance...

Earlier this month Arcapita, a wholly-owned investment management firm of Bahrain-based Arcapita Bank, announced the sale of its US real estate portfolio of senior care communities. The sale comes on the heels of several large...

IFN Correspondents

“You find no man, at all intellectual, who is willing to leave London. No, sir, when a man is tired of London, he is tired of life; for there is in London all that life can afford,” so said Dr Samuel Johnson in 1773. As a huge...

The Islamic banking law in Afghanistan is in parliament for the approval process. A special committee is working on it.  Last week, a meeting of the special committee of the lower house of the Afghan parliament (Wolosi...

With increasing pressure to stabilize the South African electricity grid and to ease electricity cuts, Eskom, the country’s electricity public utility firm, is now looking to source funding using Sukuk.  Eskom, based on...

Implementing the strategy of offering tailor-made Islamic products while observing customer behavior and overall market reaction, Al-Yusr, the Islamic banking arm of Oman Arab Bank, in a key development, has reviewed and approved...

The government of Indonesia through the Ministry of Finance (MoF) has held two Sukuk auctions in June 2015. The first one was held on the 3rd June and the second one was held on the 16th June. In the first auction, the MoF...

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

If you are getting nervous about the proposed Truth in Lending Act (TILA) disclosure statement changes that are on the way, you needn’t be. It is an ongoing process and it would seem that as soon as you get a good handle on the...

Islamic banking products have a natural and genuine relationship with the business of their clients compared to the shallow relationship conventional banking products have with the business of their clients. ISHRAT HUSSAIN...

Commodity Murabahah/Musawwamah (CM), which is guided by the concept of Tawarruq, may be considered as the most common Shariah contract used by Islamic financial institutions (IFIs). The trading platform is an important component...

Like many other Muslim countries, Palestine is also interested in the establishment of new Islamic banks and developing the existing ones. Given the fact that Islamic banking in Palestine is still in its infancy, it has somehow...

In Korea, it has been a very frustrating and painful experience for a market participant with a keen interest having to wait for any significant developments to introduce Islamic finance (in particular, Sukuk) transactions...