New kids on the block

Rapids • Deals • News • Takaful • Asset Management • Ratings • Moves
15th October 2014 (Volume 11 Issue 41)
New kids on the block This week IFN features a number of neophytes alongside familiar faces in the finance market; and we welcome them as bringing new trends and fresh ideas to the industry. Our cover story this week combines the two, exploring the innovation and evolution of asset management in the GCC and exploring the potential for sibling rivalry as new markets begin to open for business while old favorites clamor to keep up. Our IFN reports also combine the old and the new: with a look at the impact on the Islamic finance industry of the 2015 budget from industry pioneer Malaysia; along with a focus on the rise of sovereign Sukuk in the Mediterranean, the first multi-tranche cross-border financing in Morocco, the future for South Africa’s sovereign Sukuk issuances in our Weekly Poll, and an analysis of the recent Hong Kong debut in our case study. Our sector feature looks at the vibrant Shariah ratings arena, while our country analysis explores opportunities in Tunisia. Our IFN Correspondents come to you from Bahrain, Jordan, Malaysia and Pakistan; as well as bringing you a Takaful round-up. This week we also take a whistlestop tour around Africa: with a special report on Morocco from Rihab Grassa of the Tunisian Islamic Finance Association; while Basheer Oshodi of Sterling Bank contributes a country feature on Islamic finance in Nigeria. Farmida Bi of Norton Rose discusses whether Sukuk has finally hit the mainstream; while Matthew Sapte of Dentons explores the challenges facing non-Muslim issuers in the market. Finally, we are delighted to bring you an exclusive interview with Shariah scholar Zubair Miah of Cobalt, the only Shariah compliant underwriting agency working within the London Insurance Market. Cover Story Chicken and egg: What is driving asset management growth in the GCC? Asset management has been slow to develop both in the Gulf in general and in the Islamic finance industry. But with a series of new regulations coming into play and some significant steps taken by regional players to open up the market, we could be in for a sea change in the direction of fund flows as the tide turns and investment focus swings back towards the Gulf… Column Daud speaks I am writing this article for October publication a little earlier than usual, as I shall soon be departing for Hajj. By the time that you read this, the Hajj season will probably be over. IFN Reports • IFN Global Trendswatch • IFN Weekly Poll: South African rand hits new low and central bank chief to step down in November - will this negatively impact the country's future Sukuk issuances? • Malaysia’s Budget 2015 highlights determination to maintain global Islamic finance influence • Bangladesh embraces new Islamic index • Morocco’s first multi-tranche cross-border Islamic financing • New Shariah compliant funds from Emirates NBD Asset Management • Burkina Faso set to welcome first institution offering Islamic financial services next year • The biggest Sukuk deals — a summary • New brand from a familiar face in Sri Lanka: Al-Wafa • Sovereign Sukuk: Rise of the Mediterranean countries • Islamic megabank proposal submitted to Bank Negara Malaysia • IFN Eurekahedge roundup: Strong showing by Saudi funds • Islamic credit cards: Entering mainstream with a unique proposition • JICA-ICD MoU to spark Islamic finance development in Japan IFN Country Correspondents • The rise of Islamic personal financing • Jordan officially inaugurates regulations for Sukuk • Continued enthusiasm in UK real estate • Hibah: Recent Malaysian Shariah resolutions and its enforceability • Pakistan: Promising development IFN Sector Correspondent • Takaful growth in Africa IFN Country Analysis • Tunisia: One step at a time IFN Sector Analysis • Ratings: A vital component Shariah Pronouncement An Islamic bank (as Rab-ul-Maal) extended a Mudarabah facility to a customer (as Mudarib) for investment in his trade business. The facility was disbursed pursuant to the entry into the Mudarabah agreement and the Mudarabah capital was invested by the customer (as Mudarib) in accordance with the investment plan. Case Study Hong Kong sovereign Sukuk: Evidence of a Sukuk-friendly environment Carving a mark in history, the government of Hong Kong successfully completed its maiden Sukuk offering on the 18th September 2014 Special Report Islamic finance in Morocco: New horizons Morocco is the 11th largest Muslim country in the world with an estimated population around 33 million Muslims as of 2014. Yet the Islamic finance industry has been slow to develop, with a number of factors holding back its progress. Features Overview of Islamic finance in Nigeria Islamic finance in Nigeria, otherwise known as non-interest banking, has maintained consistency in growth. Jaiz Bank, Sterling Bank (also known as Sterling Alternative Finance (SAF)) and Stanbic IBTC Bank, a member of Standard Bank Group, are the only banks with non-interest banking licenses issued by the Central Bank of Nigeria. Sukuk hit the mainstream The last three months, dating from the issue of the UK government Sukuk in July, have shown that Islamic finance, and Sukuk in particular, is moving out of its traditional markets in the Gulf and Malaysia and is becoming a mainstream financing option for issuers globally. FARMIDA BI looks at how this could play out going forward. Sukuk: Current challenges facing non-Muslim sovereign issuers As we approach the end of the year and move into the fourth quarter, MATTHEW SAPTE looks at the growth of the Sukuk sector and evaluates the regulatory development of the market over 2014, with particular reference to the groundswell of interest from non-Muslim sovereign issuers. Conversation with Cobalt Our exclusive IFN Correspondent for the Takaful sector in Europe, interviews Zubair Miah, the Shariah scholar at Cobalt, the only Shariah compliant underwriting agency working within the London insurance market.  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