ICIEC and Sumitomo Mitsui Banking Corporation Europe sign MoU to strengthen collaboration in the Middle East, Africa and Asia

Monday, 22nd September 2014 S&P 500 Shariah Dow Jones Islamic World MSCI World Islamic FTSE Shariah All World Russell - IdealRatings Islamic Global 1,772.50 2,914.11 1,203.32 2,107.94 1,870.00 ▼ -1.62 (-0.09%) ▼ -7.67 (-0.26%) ▼ (-0.32%) ▼ -6.69 (-0.31%) ▲ 1.76 (0.09%) ICIEC and Sumitomo Mitsui Banking Corporation Europe sign MoU to strengthen collaboration in the Middle East, Africa and Asia Daily Cover GLOBAL: The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the IDB Group, and Sumitomo Mitsui Banking Corporation (SMBC) Europe, a subsidiary of Sumitomo Mitsui Banking Corporation of Japan, has signed an MoU to strengthen the existing collaboration between the two companies in the ICIEC’s 41 member countries. Whilst onshore Islamic finance is still prohibited in Japan, it has led to an increasing number of Japanese companies looking outward to the Middle East, Asia and Africa for opportunities within the Islamic finance sphere. The signing of the MoU between SMBC Europe and ICIEC signals a growing interest in Shariah compliant financing by Japanese banks, coming as it does, on the heels of a Shariah compliant financing deal agreed at the start of the month between the ICD, the private sector arm of the IDB, and Japanese bank Bank of Tokyo-Mitsubishi UFJ (Malaysia) (BTMU Malaysia). BTMU Malaysia signed a US$100 million commodity Murabahah agreement, to be utilized alongside ICD proprietary capital to finance projects in ICD member countries and is one of a selection of Japanese banks including SMBC Malaysia, Mizuho Bank and Nomura Islamic Asset Management to offer Islamic finance products in Malaysia. Sumitomo Mitsui Banking Malaysia (SMBC Malaysia) gained its license to engage in Islamic finance activities in March this year, and is the first Japanese bank to have an Islamic finance operational base both in Europe and Asia. As well as reinforcing the relationship between the SMBC Group and the ICIEC, the agreement between the two entities is set to enable SMBC Malaysia to better meet the needs of the bank’s clients using the insurance programs provided by ICIEC in the area of project and export finance on a global basis. The MoU has been agreed with the increasing number of infrastructure projects in MENA and Asia in mind, with Japanese companies such as Sumitomo Chemical, Mitsubishi Corporation, Mitsubishi Heavy Industries and Japan Bank for International Cooperation recently investing in Saudi Arabia. Takaful: An IFN Correspondent Report Merger and acquisition: Moving towards better efficiency and profitability of Takaful companies Takaful is an Islamic finance segment which has been experiencing significant growth for the last decade. According to EY 2014 Global Takaful Insight, the segment is expected to grow at a 14% rate globally in this year. Yet, the market share of Takaful within the global insurance industry is still relatively small. Despite 20% of the world population being Muslims, Takaful only represents 1-2% of the global insurance industry. In addition, Takaful is still the smallest segment within Islamic finance. IFN Weekly Poll With the merger between CIMB, MBSB and RHB expected imminently, the prospect of an Islamic megabank finally draws nearer. But does the industry actually need this? This week IFN gauges the opinion of the industry on the establishment of an Islamic megabank. The notion to establish a financial institution of a considerable size has been proposed as early as 2009. But is this really necessary? NABILAH ANNUAR investigates market responses on the ambitious proposal. This week's question: As the global financial community looks towards the emerging markets, could these countries potentially be the prime and upcoming destinations for Islamic finance activities? Today's IFN Alerts UAE: DIFC Investments seeks to raise US$700 million through Sukuk by the end of next month TURKEY: Finansbank looking to set up asset lease company to issue Sukuk UAE: Limitless hopes to reveal revised restructuring plan of its US$1.2 billion Islamic debt soon, says CEO SAUDI ARABIA: Bahra Cables procures US$200 million Musawamah trade finance facility from Standard Chartered OMAN: Alizz Islamic Bank increases personal asset finance portfolio by signing agreement with Pride Home and Max Electronics SPAIN: IE Business School to design a corporate MBA program for the ICD and IDB GLOBAL: Turkish economic counsellor in Malaysia invites Malaysian investors to participate in Turkey's Shariah compliant banking sector UAE: Emirates NBD CEO expects slower lending growth rate in the second half as corporates turn to debt capital markets HONG KONG: Industry players expect heightened interest in Hong Kong Sukuk and increased participation by local players following success of sovereign Sukuk debut UAE: Noor Bank expands product offering with two new Shariah compliant home financing solutions UAE: Abu Dhabi Islamic Bank manager charged for forgery involving million of dirhams UAE: Dubai International Financial Center records 7% growth in number of registered companies in the first six months of 2014 LUXEMBOURG: Moody's affords '(P)Aaa' rating to Luxembourg's upcoming sovereign Sukuk MALAYSIA: RAM rates MAHCO Malaysia's Sukuk at 'AAA(s)/Stable' based on unconditional guarantee extended by Retaj Al Balad Al Ameen Company MALAYSIA: Masraf Al Barakah's proposed RM360 million (US$111.18 million) senior Sukuk receives 'AA1/Stable' preliminary rating from RAM GLOBAL: REDmoney confirms IFN Global Forum 2015 to be held on the 13th and 14th September next year at Conrad, Dubai TURKEY: Chairman of the Capital Markets Board of Turkey to deliver keynote address at the IFN Turkey Forum in November GLOBAL: Former global head of listed derivative reconciliations at Morgan Stanley joins REDmoney training as new expert course facilitator GLOBAL: Executive chairman of Gatehouse Bank confirms his panel participation at the inaugural IFN Kuwait Forum taking place on 29th September GLOBAL: REDmoney Group confirms Dar Al Sharia as exclusive Shariah advisory partner for IFN Global Forum 2014 IFN Kuwait Forum 2014 29th September 2014 (Kuwait City) IFN Sri Lanka Forum 2014 21st October 2014 (Colombo) IFN Turkey Forum 2014 6th November 2014 (Istanbul) IFN Saudi Arabia Forum 2014 17th November 2014 (Riyadh) IFN Africa & Egypt Forum 2014 8th December 2014 (Cairo) IFN Indonesia Forum 2015 22nd April 2015 (Jakarta) IFN Asia Forum 2015 25th-26th May 2015 (Kuala Lumpur) IFN Europe Forum 2015 9th-10th June 2015 (Luxembourg) IFN Global Forum 2015 13th-14th September 2015 (Dubai) Understanding Shariah Parameters on Murabahah 24th September 2014 (Kuala Lumpur) Islamic Fund & Asset Management 25th - 26th September 2014 (Kuala Lumpur) Basel III for Financial Institutions 13th - 15th October 2014 (Kuala Lumpur) Shariah Audit for Islamic Business Banking 13th - 15th October 2014 (Kuala Lumpur) Structuring Islamic Legal Documentation 14th - 15th October 2014 (Kuala Lumpur) Shariah Governance, Corporate Governance and IFSA 2013 15th - 16th October 2014 (Kuala Lumpur) Funds Transfer Pricing 19th - 21st October 2014 (Manama) Stress-testing for Banks and Financial Institutions 28th - 29th October 2014 (Kuala Lumpur)