Onwards and upwards

12 days to go Home Contact Us Subscribe Advertise Events Training REDmoneyGroup Onwards and upwards Innovation is the lifeblood of the industry, and this week we celebrate the onwards march of progress with a look at some of the most exciting new developments happening around the world. Our cover story leads the way with a feature on the fascinating new potential of Social Impact Bonds, which offer the possibility of a bridge not only between Shariah compliant and socially responsible investing, but between the Islamic and conventional industries themselves. Our IFN reports continue the theme, with a look at the newest developments in Takaful in Oman, the groundbreaking new Green companies in Malaysia, the intriguing new market of Cambodia, and surprisingly bold developments in Scotland. We also bring you our weekly update of the sovereign Sukuk race as well as a case study on the recent US$750 million Sukuk from Dubai. Our in-house analysis this week covers Islamic finance in Latin America and technological innovations in the industry; while our IFN correspondents cover Morocco, the UAE and developments in Scandinavian real estate. We have a special report from Filip Cabart and Milos Koci from Schoenherr Prague on the new trust instrument set to open up the Islamic finance industry in the Czech Republic; while Farmida Bi and Mark Brighouse of Norton Rose Fulbright contribute a country feature on prospects in Latin America and Fadi Yazbeck of Temenos Beirut looks at develops in Shariah compliant finance technology. Finally, we also give you an exclusive report from the ICD on their latest progress in supporting the Hajj sector. With all this we have an action-packed issue for you this week, and we hope you enjoy! Cover Story Social impact bonds: A new tool for Islamic finance? Much has been written about the correlation between Shariah compliant finance and socially responsible investing (SRI) in terms of their ethical and moral foundations; but so far the two sectors have seen little crossover despite obvious similarities in terms of their goals, methods and expectations. However, a groundbreaking new product pioneered in the UK is seeing its profile grow rapidly in popularity – and could perhaps represent a new avenue for Islamic investment to assist in socially responsible projects without compromising on financial return. (Click to read full report) Shariah Pronouncement: The government of a country has announced a social welfare scheme under which an interest-free loan is provided to nationals who wish to avail themselves of the scheme, in order to construct villas for their own residential purposes only (Click to read full report) Exclusive Report: ICD and Tabung Haji join efforts to enhance mobilization of savings in ICD member countries IFN Reports: Sukuk race: Luxembourg lags behind Scotland: A new hub for Islamic finance? The Cambodian conundrum A new addition to Oman’s Takaful market GreenTech upbeat on prospects for a green bank despite uncertain demand Dubai goes green: New collaboration marks a focus on environmental investment IFN Country Correspondent: Morocco: Finally, a draft law for Takaful SCA Sukuk announcement IFN Sector Correspondent: Scandinavia: Towards the midnight sun IFN Country Analysis: Dancing to a new beat: Islamic finance in Latin America IFN Sector Analysis: Technology in Islamic finance: A new age for Islamic finance? Special Report: Czech Republic: Opening the door to Islamic finance in the heart of Europe Case Study: Dubai Government’s US$750 million Sukuk issuance (Click to read full report) Features: Islamic finance in Latin America — the scope for growth Latin America has been hard hit by the fall in commodity prices over the last three years. Growth expectations have been revised downwards, Brazil has been compelled to raise interest rates, while Chile, Peru and Mexico have all seen their growth rates slow substantially... (Click to read full report) Innovation — the path to continued growth in Islamic finance In the last few years, Islamic banking has evolved from a niche market into a mainstream industry. Currently growing 50% faster than the overall banking sector in several core markets, Islamic banking assets are expected to exceed US$2 trillion by the end of 2014... (Click to read full report) DEALS Dubai Islamic Bank chosen for potential Investment Corporation of Dubai’s US dollar issue Government’s planned Sukuk to be more than US$1 billion according to Pakistan’s finance minister Hong Kong Monetary Authority affirms support to aid government in issuing Sukuk slated for second half Etiqa Takaful considers issuing maiden Sukuk as early as this month Public Islamic Bank to issue US$1.53 billion Sukuk on the 15th May Tilal Development Company delivers first coupon payment to holders of its maiden Sukuk Ijarah facility Albaraka Turk selects banks to joint lead manage its benchmark Sukuk issue Guarantee by IDB ensures borrowing costs for Tunisia’s proposed Sukuk will remain relatively low, according to expert IOI Properties Group seeking regulatory approval for RM1.5 billion (US$464.94 million) Sukuk Murabahah program International Islamic Liquidity Management’s US$860 million short-term Sukuk reissuance fully subscribed by primary dealers Indonesian finance ministry confirms global Sukuk sale in the second half of the year Sukuk from at least three Omani companies will be floated this year, according to chairman of Amanie Advisors NEWS Meezan Bank to complete acquisition of HSBC Pakistan in the second half of 2014 VCBank acquires Byrne Investment in a bid to diversify its portfolio Jaiz Bank’s investment portfolio to exceed NGN22 billion (US$136.76 million) by July as bank moves ahead with expansion plans Gulf African Bank joins World Bank’s MSME finance program to boost its Shariah compliant offerings to Kenyan SMEs ISFIN establishes presence in Rwanda through exclusive partnership with K-Solutions & Partners Standard Bank engaging universities to create awareness on Islamic banking in Nigeria New risk management guidelines for Mudarabahs finalized, according to SECP GFH appeals against six-month observation exercise by market regulator Garuda Indonesia and Bank Internasional Indonesia enter republic’s largest bilateral Islamic financing facility worth US$100 million Islamic finance and free trade among OIC countries identified as drivers for cooperation by Turkish president Da Afghanistan Bank and Harakat-Afghanistan Investment Climate Facility Organization undertake US$1.18 million year-long project to drive awareness on Islamic banking Securities and Exchange Commission of Pakistan approves Bank Islami Pakistan’s request for issuance of right shares but against proposed discounted price Bank Asya’s deposits plunge 24.3% following government-led withdrawal Meezan Bank to offer mobile banking services with social media integration to customers International Islamic Financial Market decides to widen scope towards standardization of trade finance and corporate finance contracts Shaikh Muhammad Taqi Usmani and Professor Dr Rodney Wilson named as winners of the 2014 IDB Prize in Islamic Banking and Finance New global Sukuk issuances to reach up to US$140 billion this year, says RAM Alkhair Capital projects 10% annual growth riding on its plan to attract foreign investments into Saudi Arabia Qatari banks outperform GCC peers in terms of efficiency, according to S&P European Islamic Investment Bank contemplates capital reduction to enhance shareholders return Plastic banknotes to enter Kuwait’s currency circulation in June Bahrain’s Shura Council raises government borrowing limit to US$13.04 billion Dubai confident in ability to repay debt on maturity in 2015, according to government official FGB partners with Monitise to launch new mobile banking services for customers Roadshow to boost the profile of Qatar-listed companies makes its way to London and New York Gulf Finance House faces suspension of shares on Kuwait Stock Exchange due to AGM delay Mashreq launches workshops for entrepreneurs and start-ups in the UAE Jardine Human Capital launches new office in Dubai Knowledge Village focusing on recruitment and retention within the Islamic economy sector HSBC predicts UAE to become biggest contributor to Sukuk market before the end of the second quarter UAE Banks Federation proposes establishment of Shariah compliant governance unit Tadawul eyes public listing and will begin the process “extremely soon”, according to CEO Central Bank of Oman planning for Shariah compliant short-term instruments to assist Islamic institutions in parking their excess liquidity Ahlibank launches new mobile banking service Investment Dar offers new deal to creditors as alternative to debt restructuring proposal agreed in 2011 Barwa City project to be sold to Qatari Diar subsidiary for QAR7.7 billion (US$2.11 billion) Launch of Al Etihad Credit Bureau delayed but will be operational in June according to bureau CEO RAKBANK gains shareholder approval to double limit on foreign ownership to 40% PwC predicts further IPOs for Qatar Stock Exchange in 2014, prompted by recent listing Bank Nizwa launches 1% cash back offer as reward for customers Barclays Saudi Arabia submits request to cancel securities business in Saudi Arabia Barwa Bank enhances Shariah compliant credit card loyalty program by partnering with Ooredoo’s Nojoom Maisarah Islamic Banking Services expands retail offering with diminishing Musharakah property finance solution Sharjah Islamic Bank becomes first bank to join NASDAQ Dubai Murabahah Platform Dubai Investment International plans to expand to Africa, Asia and further in the Middle East Al Hilal MENA Fund confirms approval of cash dividend National Takaful Company announces US$903,869 in net profit for the first quarter of 2014 Al Salam Bank-Bahrain reports higher net profit for the first quarter at US$10.8 million EIIB-Rasmala announces profit of GBP1.5 million (US$2.51 million) for 2013 Kuwait Projects Co announces 20% increase in 2014 first quarter net profit Khaleeji Commercial Bank reports higher profit for the first quarter with higher total assets Ajman Bank announces net profit of US$3.73 million for the first three months of 2014 Despite an 11.5% decline in profitability for the first half of 2013, RHB Banking Group marks 3.6% growth in pre-tax profit for the full year ABC Islamic Bank announces 9% increase in net profit to US$3.5 million for the first three months of 2014 SHUAA Capital returns to profit in the first quarter with earnings of US$2.23 million Al Baraka Banking Group reports similar net profit for the first quarter at US$36.6 million Bahrain Islamic Bank’s investment rationalization and focus on retail and corporate finance boost first quarter net profit by 128% Burgan Bank beats analyst estimates with 10% growth in first quarter profit to US$60.69 million TAKAFUL Deposit Insurance Corporation Malaysia sees significant growth across Takaful funds Takaful International announces cash dividend distribution for shareholders Aljazira Takaful Taawuni Company holding EGM on the 3rd June AMMB Holdings and MetLife launch two new insurance brand names following strategic partnership Al Madina Takaful Company confirms implementation of increase in issued capital Prudential BSN Takaful channels Zakat and Welfare Funds to support underprivileged students, charitable homes and National Cancer Society Malaysia Dar Al Takaful to raise paid-up capital by 50% through the offering of rights issues next week ASSET MANAGEMENT NCB Capital closes subscriptions to Shariah compliant development fund AmInvest’s Islamic equity fund outperforms other Malaysian Shariah compliant equity funds Saudi Kuwait Finance House opens subscription for new Shariah compliant investment fund RATINGS Moody’s places Deutsche Bank under review for possible downgrade following 34% drop in first quarter net earnings Despite unfavorable economic conditions due to political turmoil, Moody’s affords Thailand’s banking system a stable outlook backed by stable liquidity Indonesian rating agency affirms Perusahaan Listrik Negara’s Sukuk Ijarah at ‘idAAA(sy)’ Emirates NBD’s improving risk management lifts its Moody’s ratings outlook from negative to stable Sound asset quality measures and resilient earnings underpins Maybank’s ‘AAA/MARC-1’ ratings Senai-Desaru Expressway’s restructured Sukuk program receives ‘BBB-IS’ rating from MARC RAM Ratings assigns Etiqa Takaful’s proposed Sukuk Musharakah a final rating of ‘AA1/stable’ Sound funding profile lifts Qatar International Islamic Bank’s long-term issuer default ratings to ‘A’ MOVES Bank Sohar’s head of corporate banking tenders resignation due to personal reasons Sanjeev Nanavati to leave CEO position at Citibank Malaysia in pursuit of other opportunities Former SHUAA Capital CEO joins crowdfunding platform Eureeca as board member Dentons appoints two new partners to its Doha office Jadwa Investment announces the appointment of new managing director and CEO National Bank of Oman names Ahmed Al Musalmi as new CEO