Crossing borders...

Rapids • Deals • News • Takaful • Asset Management • Ratings • Moves
10th September 2014 (Volume 11 Issue 36)
Crossing borders... The world is becoming ever smaller, as boundaries blur and distances shrink with the advent of new technology and new linkages between jurisdictions. Cross-border communication and collaboration is one of the greatest strengths of our industry and one of its most important pillars. This week we focus on that with a look in our cover story at the new opportunities as Saudi Arabia opens the doors to its long-protected equity market and foreign investors jump at the chance to access such an exciting new market. We continue the focus on Saudi Arabia with a country focus on recent developments, as well as an IFN report on the innovative new investment approaches being seen from its asset managers. We also bring you a wealth of rewarding content including a look at the impact of IFSA 2013 on Malaysian Takaful operators, analyses of the latest in the sovereign Sukuk sector, the upcoming Goldman Sachs Sukuk, the revelatory new Khazanah Nasional issuance, deal summaries, a fund focus on the fledgling powerhouse that is EIIB-Rasmala and much more. Our IFN correspondents come to you from Indonesia, Oman and Pakistan as well as providing the latest news on Takaful and treasury products. Our sector focus this week is on structured finance, our case study looks at the Republic of Indonesia’s US$1.5 billion 4.35% Sukuk due 2024, and we round up with a special report on the Indian leasing market from H Jayesh of Juris Corp. With all this excitement in store, we also remind our readers that next week marks the launch of the first ever IFN Global Forum in Dubai on the 15-16th September: so watch out for yet more exclusive content to come as we plunge ever further towards the frenetic final quarter of the year. Cover Story The end of the rainbow: Tadawul opens to foreign investors The long-awaited legislation has finally been drafted; and the Saudi stock exchange is set to open to direct foreign investment once the law is passed. With values soaring as international institutional investors set the phone lines to Saudi on fire, concerns of unsustainable overheating increase — while at the opposite end of the spectrum, the rigid restrictions on qualifying for access are creating doubts as to the long-term material impact of the move. IFN Reports • Fund focus: Innovative new offerings from EIIB-Rasmala • IFN Weekly Poll: To assist in the development of cross-border activities and secondary trading, would it be feasible to establish a global Islamic stock exchange? • IFN Deal Summary: Sukuk volumes could exceed expectations • Islamic banks eye Shariah dollar through private banking services • Goldman Sachs names banks to arrange Sukuk • Growing global acceptance of Islamic instruments bodes well for sovereign Sukuk sector • New investment approach in Saudi Arabia • IFSA — at the expense of General Takaful operators? • Malaysian GST and its impact on brokerage firms • BTMU Malaysia-ICD financing agreement marks growing internationalization of Islamic finance • UK government responds to public consultation on Shariah compliant student financing • Sovereign Sukuk: Sharjah joins the big boys • Khazanah Nasional issues innovative exchangeable Sukuk IFN Country Correspondents • Oman: Islamic trade finance • Deepening Indonesia’s Shariah money market • Habib Metro Bank’s new Islamic brand plans further expansion IFN Sector Correspondents • Takaful window for Zambia • Islamic treasury products in global markets IFN Country Analysis • Saudi Arabia: An new era of evolution IFN Sector Analysis • Structured finance: The way forward Shariah Pronouncement Islamic banks often receive requests from their customers to issue a letter of guarantee, wherein the beneficiary of guarantee is a conventional bank. Shariah guidance is sought as to whether it is permissible for an Islamic bank to issue letter of guarantee in favor of a conventional bank. Case Study Indonesian innovation The Indonesian government recently issued US$1.5 billion in US dollar-denominated Sukuk. Despite the relatively low yield, the transaction witnessed a demand reaching almost seven times its offer with bids amounting to US$10.2 billion. Special Report The Indian leasing market India’s leasing industry is small in terms of overall economic size and recent growth. On new business volume, it ranks outside the top 50 globally.  CONTACTS Editorial: Sasikala Thiagaraja Direct Line: +603 2163 7800 ext 34 Finance: Faizah Hassan Direct Line: +603 2162 7800 ext 26 Sales: Dubai: Geraldine Chan Direct Line: +971 4 427 3628 Kuala Lumpur: Steve Stubbs Direct Line: +603 2162 7800 ext 55 Subscriptions: Dubai: Mithun Gangolli Direct Line: +971 4 427 3638 Kuala Lumpur: Siti Amilia Amir Amzah Direct Line: +603 2162 7800 ext 27