Planning ahead...

68 days to go Home Contact Us Subscribe Advertise Events Training REDmoneyGroup Planning ahead... The importance of planning for the future is often ignored in our race for profits in the present. But looking forward to ensure we are prepared for what lies ahead is vital to ensure we are protected against stormy weather – and this applies equally whatever your beliefs. This week we take a look at the importance of Islamic pensions, as our cover story explores why they have been so slow to get off the ground. Our IFN reports are an exciting bunch too: covering the launch of continental Europe's first Islamic bank in an exclusive interview with its chairman; new IDB initiatives in conjunction with its 40th anniversary; Gatehouse Bank’s foray into real estate financing; the ever promising Malaysian Sukuk market; the UK’s unique Shariah compliant student financing scheme; as well as a look at the gap in SME funding in the Islamic world. Our case study evaluates the structure of the recent issuance from the UK; while our country and sector analyses cover Lebanon and treasury products, respectively. We also bring you a sector feature from Dr Sherif Ayoub of the IDB Group on the challenging realities of Islamic liquidity management, as well as a special report from the ICD on its recently-launched Ijarah company in Palestine. As the holy month continues, we hope that all our readers are finding time to reflect on their own future plans: and we wish you all a rewarding and spiritual Ramadan. Cover Story Islamic pensions: Are Muslim-majority nations missing a trick? The Shariah compliant pensions sector is a tricky subject, with numerous barriers to entry both religious and in terms of scale: and while some countries such as Malaysia have encouraged Islamic provision, the GCC has long lagged behind... (Click to read full report) Shariah Pronouncement: An Islamic bank had issued a letter of credit, for a customer applied for the same (Click to read full report) IFN Reports: The IDB: 40 years in the making Euris Bank achieves first Islamic banking license in continental Europe Islamic banks need to fill SME gap Gatehouse Bank’s foray into real estate financing Malaysian Sukuk volume driven by asset growth, funding and Basel III capital needs A step towards Shariah compliant student loans for the UK IFN Country Correspondent: High time for Ghana to tap Sukuk market The house of representatives approves new banking law K-Electric announces PKR22 billion (US$221.24 million) Sukuk Developments for foreign investment in Saudi Arabia IFN Sector Correspondent: Takaful-based student finance product: applying Takaful beyond insurance IFN Country Analysis: Islamic finance in Lebanon: Winding down? IFN Sector Analysis: Islamic finance treasury products: Keeping the money moving Special Report: ICD launched an Ijarah company in Palestine Case Study: UK Sovereign Sukuk: A commitment to becoming the Western hub of Islamic finance (Click to read full report) Feature: Liquidity management in Islamic finance: The challenging realities and the need for sustainable solutions The main competency of a banking institution is arguably centered around asset-liability management with liquidity management being an imperative component. This acknowledgement, of course, does not exclude Islamic banks. DR SHERIF AYOUB explores the challenges of Islamic liquidity management... (Click to read full report) DEALS London Stock Exchange lists UK Treasury GBP200 million (US$342.52 million) Sukuk Adira Dinamika Multi Finance considers tapping Malaysian ringgit Sukuk market this year Banque Saudi Fransi concludes Tier II Sukuk worth SAR2 billion (US$533.22 million) Cagamas’ Sukuk commodity Murabahah pricing initiative receives a bid-to-cover ratio of over two times Government of Indonesia holds auction for project-based Sukuk Pakistan government meets with foreign banks in order to select financial advisor for US$1 billion Sukuk Hong Kong appoints banks to arrange debut Sukuk according to reports Al Baraka Turk concludes US$350 million five-year Sukuk auction Al Hilal Bank raises US$500 million in perpetual additional Tier 1 Sukuk NEWS Jaiz Bank aims to gain national operating licence to aid expansion by the end of the year, with eyes on stock exchange listing Bankers believe QNB Capital to be strong contender to arrange Kenya’s impending debut Sukuk Debt Management Office director general praises Osun State for Sukuk issuance New Egypt Investment Fund and Beltone Financial rethinking bid in EFG Hermes following disagreement on price Malaysian Islamic banks issue RM3.25 billion (US$1.01 billion)-worth of Sukuk in the first half of 2014 Bank Asya dismisses reports alleging that sales negotiations with Qatar Islamic Bank has ended Agrobank to complete crossover to Islamic banking operations by 2015 says CEO JanSeva promotes Halal income in India offering interest-free microfinance products in 12 states Court grants remand to Shahjalal Islami Bank director who has been charged for misappropriating funds totalling BDT1.49 billion (US$18.85 million) Allama Iqbal Open University to offer multi-level Shariah programs of study this year Government reports completion of Turkmenistan portion of IDB-funded ‘North-South railway’ project Supreme court rules that Islamic courts do not have legal authority in India Philippine Stock Exchange updates list of Shariah compliant firms, down to 51 companies from 61 New central bank regulations on Islamic banking deposits and contracts would have minimal effect on Bank Islam Malaysia, according to analysts Islamic Bank of Britain considers rebrand in order to appeal to a wider market according to CEO Kyrgyzstan and the IDB agree to collaborate on development projects in the Kyrgyz republic EIFA introduces new Egyptian Shariah index to boost foreign investment into the republic Islamic tourism a growing industry for OIC countries according to Gambia’s tourism and culture minister Islamic finance sectors gaining systemic importance in key economies in Asia and the Middle East according to IFSB Greater focus on Islamic endowment properties is needed according to industry leaders Mubadala Development Company eyes Hyde Park Barracks as potential acquisition according to reports Abu Dhabi Investment Authority sells shares worth INR4.21 billion (US$70.52 million) in Kotak Mahindra Bank Emirates NBD tops league tables with 10 US dollar-denominated Sukuk issuances during the first half of 2014 Experts meet in Dubai to prepare requirements for accreditation of Halal certification authorities IDB joins consortium to provide financing facility worth SAR18.9 billion (US$5.04 billion) to Ma'aden Wa'ad Al-Shamal Phosphate Company Amlak Finance proposes new plan to restructure debt as it seeks to lift suspension on trading of shares Malaysian sovereign wealth fund to raise US$3 billion in IPO KFH-Bahrain offers new Tawarruq product utilizing palm oil trading Qatar GDP growth surges to 6.2% in the first quarter driven by domestic demand Abu Dhabi Investment Authority maintains interest in alternative investments United Arab Bank completes maiden syndicated US$100 million Murabahah deal University of Dubai calls for more academic sector involvement in the development of Dubai’s Islamic economy Emirates Islamic launches a series of charitable initiatives and financing products at special price in conjunction with Ramadan Islamic bank stocks fall at end-of-week-profit-taking on the Qatar index, analysts consider stocks of Islamic banks overvalued IDB fosters integration among member countries, signs financing agreements worth US$2.4 billion SEDCO Capital Company receives regulatory approval to quadruple its capital Aseel Islamic Finance launches new Business Finance solution for SMEs Emirates Islamic announces Middlesex University as winner of its social media Innovation Challenge Barwa Bank opens representative office in Dubai International Finance Center Dubai Islamic Bank introduces paperless Smart Bank customer service initiative Securities and Commodities Authority to increase UAE stock market supervision following June market crash Dubai International Financial Center contemplating institution of a centralized Shariah board Emirates Islamic launches themed prepaid card for football enthusiasts Meethaq hosts Ramadan seminar series Standard Chartered Saadiq opens its first dedicated Islamic Banking Center in the UAE Nakheel to approach banks rather than issue Sukuk to finance growth plans according to chairman Noor Bank looks to priority banking with plans for wealth management and brokerage Dubai International Financial Center looks to attract companies from new regions including Southeast Asia, China and India DMCC Tradeflow handles over 900 commodity Murabahah transactions in the first six months of the year Noor Bank, Qatar Islamic Bank and Warba Bank arrange syndicated financing facility of US$155 million for oil services company E-commerce witnessing significant growth in Saudi Arabia at 43% in the first quarter Tharawat Investment House assigns Shariah supervisory board role to Shariyah Review Bureau Aldar Properties aims to reduce debt to AED5 billion (US$1.36 million) by the end of next year Bank of Bahrain and Kuwait extends Manama branch opening hours for Ramadan Jaiz Bank reports 141% surge in total assets to NGN34 billion (US$207.21 million) for the 2013 financial year Almarai announces net profit of US$115.51 million for the second quarter of the year Tadawul releases report for the first half of 2014, tracks growth on equity market capitalization among others Riyad Bank registers net profit of SAR1.14 billion (US$303.9 million) for the second quarter Saudi Hollandi Bank sees net profit increase of 28.1% for second quarter of the year Banque Saudi Fransi marks first half of the year with 20.33% growth in net profit to SAR1.74 billion (US$463.89 million) TAKAFUL All segments of Saudi Arabian insurance market register bullish growth in 2013 except for protection and savings sector MetLife AIG ANB Cooperative Insurance Company receives three-month extension of temporary approval to usage of insurance products XL Group extends its Shariah compliant cover to financial lines Wethaq Takaful Insurance Company sets target of EGP120 million (US$16.74 million) in premiums for 2014/2015 Takaful Brunei presents on the importance of Life Takaful to school principals Regulatory changes will benefit the Takaful and insurance market in the GCC according to Moody’s ASSET MANAGEMENT Islamic Bank of Britain accredits new Islamic pension scheme from Carey Pensions UK National Bank of Abu Dhabi launches new liquidity management fund JS Investments announces interim payout on Islamic fund IDB Infrastructure Fund II looks to initiate investment in projects in the next quarter, says fund manager RATINGS Moody’s affirms ratings for Bank Tabungan Negara RAM reaffirms ‘AA1/Stable’ rating for GB3 Al-Bai Bithaman Ajil bond Outlook on Kuwait’s banking system remains stable according to Moody’s MARC withdraws ‘AA+ID’ rating of Kapar Energy Venture’s RM3.4 billion (US$1.06 billion) Islamic debt securities following an early full redemption MARC withdraws rating on Putrajaya Holdings’ RM1.5 billion (US$471.3 million) Murabahah facility due to cancellation Fitch upgrades rating for Atlanticlux Lebensversicherung Sukuk to ‘BBB’ Moody’s Japan to review Nomura Holdings’ ‘Baa3’ rating for upgrade Jadwa Asset Management maintains Moody’s ‘MQ2’ assessment despite structural changes Negative outlook for Singapore’s banking system as Moody’s anticipates moderate increase in problem loans MOVES Noor Bank names Paul Mampilli head of marketing and corporate communication BMI Bank appoints new chairman and board of directors Alizz Islamic Bank appoints Salaam Said Al Shaksy as CEO Investcorp welcomes four new advisory directors