A run of good luck

Rapids • Deals • News • Takaful • Asset Management • Ratings • Moves
14th January 2015 (Volume 12 Issue 02)
A run of good luck Is good performance by luck or design? Opinions may differ but there is no doubt that as we get back into the swing of things after the holidays, the year is already proceeding apace with positive reports coming in from all sides. Our cover this week features one of the most sustainable and long-lasting success stories of the industry – one so ubiquitous that its performance perhaps fails to capture the interest it deserves. The UK property market continues to go from strength to strength, and we look at the reasons behind this and the outlook for the future. Our IFN reports this week explore the impact of the ASEAN CIS Framework on the Islamic funds industry, and the banking sector of the GCC and wider MENA, while our correspondents cover Oman, Bangladesh, the Philippines, private banking and wealth management as well as real estate. Our sector and country analyses look at pension funds and Lebanon respectively while we also bring you features on Bahrain, liquidity management as well as an exclusive Sukuk outlook for 2015 from RHB. Special reports this week explore commodity Murabahah transactions, perceptions and attitudes on Islamic finance in Sri Lanka, and the changing Malaysian Islamic finance landscape prompted by the impending GST implementation. January may be a long month but so far, the industry looks to be building on the strength of last year to weather the global market volatility with relatively cheerful impunity. Cover Story London living: UK capital climbs mountains to keep property crown Despite recent tax reforms, upcoming elections, tumbling oil prices and global market volatility, Islamic investors still just can’t get enough of UK real estate. Just what is it that makes the country so appealing — and will the attraction never end? LAUREN MCAUGHTRY looks at where the money is coming from — and who it is going to… IFN Reports • IFN Global Trendswatch • ASEAN CIS: A much-needed impetus for regional Islamic cross-border fund activities • Malaysian Islamic megabank looking unlikely — so what next? • Bahrain engineers pioneering mechanism to advance Islamic debt capital market • Stable outlook for GCC banks bucks wider MENA trend • Indonesia sets higher Sukuk target • DIEDC outlines new projects for 2015 • Sovereign Sukuk: A healthy pipeline in the Middle East IFN Country Correspondents • Structure of Oman’s debut Sukuk • Islami Bank Bangladesh’s profit gained marginally • Updates on Islamic Banking and Finance IFN Sector Correspondents • The rise of aircraft assets in Shariah compliant leasing funds • London beats its own record IFN Country Analysis • Lebanon: One challenge after another IFN Sector Analysis • Islamic pensions: An area of unrealized potential Shariah Pronouncement In order to finance purchase of goods under letters of credit (LC), an Islamic bank adopts a Murabahah structure with the following modus operandi... IFN Exclusive RHB Sukuk analysis In the first of a new monthly series for 2015, the RHB Fixed Income & Currency Research team provides an exclusive analysis of last year’s Sukuk performance and a proprietary outlook on the market for 2015. Special Reports Commodity Murabahah revisited Practitioners of Islamic finance are all very familiar with the concept of commodity Murabahah. Literally translated it means “sale of commodity with the cost price disclosed”. Islamic financing: Preparing for the changing landscape of GST Malaysia will introduce a goods and services tax (GST) in just under four months. The lead up to GST has posed many challenges to businesses, and those in the Islamic financing industry have been no different. Building social business with Islamic fund To create a world without poverty and to solve social, economic, and environmental problems with a view to making the world a better place, Features Bahrain: Building on its agility to strengthen sustainability in Islamic finance In the past year, Bahrain has continued to strive to achieve financial stability and sustainable growth in all sectors of the economy. Despite difficult global economic conditions, and regional geopolitical challenges, the country’s financial sector – which contributes 16.7% of the country’s GDP – remained strong and buoyant, with the banking sector recording total assets of US$191.8 billion in September 2014. Liquidity management: the challenge of Islamic financial institutions Liquidity management is an essential part of every financial institution’s operations. Financial institutions place their funds in financial assets for a return in the ordinary course of business as part of their daily liquidity management activities.  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