Securing the future

19 days to go Home Contact Us Subscribe Advertise Events Training REDmoneyGroup Securing the future “May you live in interesting times,” goes the old Chinese proverb – and this we certainly do. As the global population booms, resources become scarce and the world careers towards a climate change crisis, the future can look intimidating. But new tools and strategies are constantly emerging to help us deal with the challenges we face. Following on from our previous feature on Halal financing, this week we take a step back and look at the broader picture of global food security – an urgent issue which is creating concern across the Muslim world – and our cover story explores how innovative new Islamic finance strategies can assist in mitigating this insecurity. Our IFN reports take a more positive turn, looking at progress and innovations across the globe including a positive move towards Shariah compliant financing in Egypt, a new platform from Bursa Malaysia targeting younger investors, new rules from Dubai to promote its Islamic economy, an innovative new Islamic debt product in Sri Lanka, the encouraging Sukuk performance in the first quarter of 2014 and a new update on our sovereign Sukuk race report – which may surprise you! Our IFN correspondents cover Turkey and the US as well as the leasing and legal sectors; while our Analysis Reports look at Pakistan and explore Islamic private wealth management; and our case study covers Damac’s new US$650 million Sukuk issuance. We also have a plethora of special features for you this week including a contribution on Sukuk issuance in Pakistan from Farz Bandukdam of Fortune Islamic Services, a perspective on private banking and portfolio management from Abrar Hussain of Elixir Capital, an exploration of wealth management trends from John Sandwick of Safa Investment Services and an analysis of Shariah compliant hedge fund strategies and features from Irfan Naheem of Infinity Consultants. Interesting our times may be, but it is up to us to make of them what we will. Cover Story Global food security: A ticking timebomb for the Islamic world According to the United Nations Food and Agricultural Organization, global food production will need to double by 2050 in order to feed to projected population of over 9 billion. The chasm between global supply and demand has made securing a sustainable food supply a pressing issue for any country but for the Muslim world the situation is especially pertinent given the inverted geographic relationship between wealth and production capability. This week, we take a look at the pressing issue of global food security and how Islamic finance can assist in meeting this growing crisis. (Click to read full report) Shariah Pronouncement: A general trading company had availed a Mudarabah facility for a Mudarabah term period of three years from an Islamic bank (Click to read full report) IFN Reports: Race update: South Africa surges ahead Egypt turns towards Shariah financing Bursa Malaysia broadens horizons SCA’s new rules: In line with Dubai’s Islamic economy ambition Sukuk trends: First quarter of 2014 A first for Sri Lanka’s Shariah compliant financial sector IFN Country Correspondent: Presidential elections and another challenge for the Turkish economy Conference forges path ahead for Islamic finance in the US IFN Sector Correspondent: Kovsarbank returns to Islamic banking activities Venture lease and venture capital: Two complementing tools for financing start-up MSMEs IFN Country Analysis: Islamic finance in Pakistan: A growing opportunity IFN Sector Analysis: Islamic private wealth management: A look to the future? Case Study: DAMAC’s US$650 million Sukuk auction (Click to read full report) Features: Sukuk Ijarah auction expected soon It has been over a year since the State Bank of Pakistan (SBP) conducted the last auction for its highly demanded Government of Pakistan (GoP) Sukuk Ijarah. With ample liquidity in the market, especially from Islamic banks and Islamic banking windows of interest-based banks as well as income and money market funds, the long-awaited auction of the next GoP Sukuk Ijarah is just around the corner... (Click to read full report) Private bankers, asset managers and portfolio management: A perspective A large part of the population is unacquainted with the world of private banking. Much like investment bankers, they are largely invisible until you are in a position to need them... (Click to read full report) Islamic wealth management: Are trends in global wealth management leaving Muslims behind? As global banks cut their commercial activities and focus shifts towards asset management for both private and institutional clients, JOHN A SANDWICK takes a look at what this move represents for the Islamic finance industry — and what needs to be done to ensure the opportunities are not missed... (Click to read full report) Hedge funds strategies and Shariah compliant short selling Hedge funds are a touchy subject in Islamic finance, with scholars widely disagreeing about the Shariah compliance of various strategies. IRFAN A NAHEEM talks us through the key concepts and controversies. Hedge funds lack a definition, but the word ‘hedge’ usually describes a strategy used to evade the risk... (Click to read full report) DEALS Bank Negara Malaysia plans to launch six Islamic issuances in the first half of May Property developer Hua Yang to issue Sukuk Murabahah worth up to US$76.63 million in nominal value for Shariah compliant land acquisition Pelaburan Mara considering US$306.51 million Sukuk as a means to diversify funding sources Coupon on ABHC Sukuk’s US$306.51 million Sukuk Wakalah due and payable on the 8th May Finance minister confirms Pakistan’s US-dollar denominated Sukuk issuance Khazanah Nasional contemplating issuance of Sukuk worth US$1 billion according to reports Dubai Financial Market announces the listing of US$750 million Sukuk by the Dubai government Autoriti Monetari Brunei Darussalam successfully prices government short-term Sukuk Ijarah Approval of special resolutions for Al-‘Aqar Capital’s US$307.73 million Sukuk granted by Sukukholders Convertible Sukuk from Dana Gas best performing dollar-denominated Sukuk, according to Bloomberg Meethaq plans Oman’s debut international dual currency Sukuk worth US$300 million Nu Sentral issues 50-month US$7.65 million Islamic medium-term notes carrying 5% profit rate Tunisia to plug budget deficit by raising at least US$100 million through Sukuk in July Principal and profit payment of Jimah Energy Venture’s US$1.49 billion Istisnah medium-term notes issuance due and payable next week NEWS DAMAC inaugurates Shariah-certified serviced apartments in Dubai Meezan Bank’s Shariah board approves general guidelines for conversion of conventional banking operations to Shariah compliant The IDB seeking to address lack of trading in Islamic investment instruments through recently established office in Kuala Lumpur Kyrgyz government hopes to rake in foreign investments following introduction of Sukuk and Takaful laws State Bank of Pakistan to roll out new Islamic bank capital adequacy rules and Islamic liquidity framework within the next six months Malaysian Islamic capital market now worth US$459.63 billion following 8.8% growth last year, according to Securities Commission deputy CEO Meezan Bank begins due diligence on acquisition of HSBC’s Pakistani operations Shariah Advisory Council of Bank Negara Malaysia reviews Shariah standards on Tawarruq, Musharakah and Mudarabah Dubai FDI collaborates with IHI Alliance as an initiative towards an Islamic economy Islami Bank Bangladesh to provide US$127.21 million for the Padma bridge project ICD assumes control over one-third of PMB Tijari’s equities following signing of agreement Bank Muamalat Malaysia eyes partnership with ASEAN Islamic banks while its majority shareholder looks to divesting 30% of its stake GreenTech working with Malaysia International Islamic Financial Center to promote Shariah compliant financing for green development projects outside Malaysia Iran calls for joint networking of OIC Ombudsmen and an end to corruption in social institutions at OIC conference Saudi Institute of Banking partners with Bahrain Institute of Banking and Finance to jointly develop banking and finance in the region Gulf Finance House reports net gain of US$6.46 million through ownership of Leeds United Football Club ICD signs MoU with the European Bank for Reconstruction and Development to support SMEs in North African countries I-Deal debuts region’s first Islamic managed commodity account Dubai Islamic Bank hopes to conclude 40% stake acquisition in Indonesian Islamic bank and begin Kenyan expansion plans before the end of 2014, reveals CEO Islamic finance assets worldwide to hit US$2 trillion mark in 2014 as international community rally their efforts and global trade flows in MENA and OIC grow, according to KFH Research Market optimistic for a record year as April sees surge in global Sukuk sales to US$6.1 billion, highest since September IDB financing crosses US$100 billion mark FGB launches global wealth management service in Singapore Bahrain Bourse links with Kuwait Clearing Company to facilitate transfer of shares between Bahrain and Kuwait Islamic Finance news launches inaugural roundtable series in Dubai MSCI to adjust weighting of UAE and Qatar stocks including Dubai Islamic Bank and Doha Bank National Bank of Abu Dhabi predicts decrease in the profitability of lending for UAE banks Banking industry will see a convergence between conventional and ethical banking driven by the needs of the consumer and the regulators, according to Abu Dhabi Islamic Bank CEO Emirates Islamic targets Abu Dhabi to increase brand awareness Omani bank loans comprising both conventional and Shariah compliant see 10% increase with total lending reaching US$35.13 billion High standards in Islamic arbitration a target for the UAE, according to minster of justice Islamic finance to play key part in project financing as Oman’s funding requirements escalate, according to SEZAD chairman Majority of UAE banks yet to submit customer credit histories to Al Etihad Credit Bureau Alkhair Capital moves forward with growth strategy with the inauguration of a new branch at Dubai International Financial Center Potential rise in cost of funds and increasing market competition set to place margin pressure on UAE retail banking sector Emirates NBD’ introduces UAE’s fastest remittance transfer service at zero processing fee Ithmaar Development Company sells key plots on Bahrain Island’s Dilmunia to Bin Faqeeh Real Estate Investment Company Dubai Islamic Bank strengthens focus on consumer and wholesale banking business as part of 2014-16 balance sheet growth plan Khaleeji Commercial Bank to provide Shariah compliant financing options for new apartment development Jabal Omar Development opts for Shariah compliant financing to make advance payment on development project Al Baraka Islamic Bank adds to its ATM network with new machine in Saar Mall Capital Market Authority imposes penalties on Arabia Insurance Cooperative Company and Almarai Company due to violation of Listing Rules CrediMax caters to Shariah-seeking consumers by launching credit card in compliance to Islamic tenets Dubai’s economy predicted to grow by 5% in 2014, according to Dubai Statistics Center British University in Dubai's Al-Kindi program introduces Islamic finance to students from India RAKBANK reports 9% decrease in first quarter net profit Ooredoo announces 9.7% rise in net profit for the first three months of the year Dubai Islamic Bank announces 111% surge in net profit for the first quarter of 2014 Mashreq reports net profit increase of 35% for first quarter of 2014 Barwa Real Estate Company’s net profit jumps 67% to US$72.78 million in the first quarter Ahli United Bank realizes 10.9% growth in first quarter net profit to US$42.97 million Qatar Exchange-listed companies report 8.6% rise in cumulative net profit for the first three months to US$3.05 billion Ahli United Bank reports profit of US$136.6 million for the first quarter of 2014 Dubai Investments announces 26% gain in first quarter profits Noble Group reports 49% decrease in profit after tax for 2013 Abu Dhabi National Energy Company reports net loss of US$680.62 million for 2013 TAKAFUL Syarikat Takaful Malaysia maintains RHB Research buy recommendation Interest from US insurer in Malaysian Takaful company to strengthen economic ties MetLife AIG ANB Cooperative Insurance Company temporary relocates head office as building undergoes major maintenance work Takaful Oman Insurance to finally open its doors for business after multiple delays Pakistani operators agree to formal information-sharing mechanism for Family Takaful and life insurance players Malaysian Takaful market set to grow at an annual growth rate of 19.14% over 2013-18, according to research report RATINGS Fitch extends ‘A’ long-term issuer default ratings to Qatar Islamic Bank and Qatar International Islamic Bank Etiqa Takaful receives ‘A’ rating from Fitch based on its strong liquidity and operating profitability Positive growth trajectory for Dubai property market leads S&P to afford ‘BB’ rating to DAMAC’s Sukuk Moody’s upgrades outlook on International Bank of Azerbaijan’s global scale ratings to positive MOVES Two senior bankers leave National Bank of Abu Dhabi for new opportunities, according to sources National Bank of Abu Dhabi appoints new group chief financial officer