Renewing energy ambitions

Rapids • Deals • News • Takaful • Asset Management • Ratings • Moves
25th March 2015 (Volume 12 Issue 12)
Renewing energy ambitions Last week we discussed the importance and increasing opportunities in green Sukuk, and this week we continue that theme with an expansion into the exciting and ever-growing world of renewable energy – with a cover story focusing on the significant role that Islamic finance could potentially play in changing the face of the global energy landscape. Our IFN reports look at Germany and Qatar’s Takaful sector while our correspondents cover Indonesia, Afghanistan, debt capital markets and syndicated finance. Our special reports come to you from RAM Ratings and our features from Bin Shabib & Associates, Takaful Re and Kuwait Finance House, while our in-house analyses look at Sukuk and Tunisia. We all have a role to play in safeguarding our planet for future generations. Here at IFN, we believe that these issues are relevant to us all – old or young, big or small – and the precepts of the Shariah can (and should) be applied equally to both economic and ethical decisions. We wish you all a productive week and hope you enjoy the issue. Cover Story Clean energy: An Islamic opportunity While renewable energy has been on the agenda for a while now, in recent years costs have plummeted and investment opportunities increased to the point where the sector now looks economically attractive rather than an exercise in expensive optimism. With both GCC and Malaysian governments throwing resources at the area and growing cross-border collaboration between developed and emerging economies, LAUREN MCAUGHTRY revisits the issue to ask what role Islamic finance can (and does) play in this exciting new order… IFN Reports • Qatar insurance sector the fastest-growing in the GCC, Takaful included • Islamic finance gains more traction in Europe • Sovereign Sukuk: Fulfilling their promises, countries take action • Appetite for Malaysian government Sukuk strong ahead of Barclays’s index inclusion • Current Sukuk opportunities are unattractive to Islamic insurers, says AM Best • Malaysia (potentially) downgraded — Sukuk market affected? • High cost holding back Islamic microfinance industry in Indonesia • IFN Global Trendswatch • IFN Weekly Poll: Are we about to see a wave of social impact Sukuk issuances? IFN Country Correspondents • Indonesian retail Sukuk 2015: Exceeding the target • Afghanistan: Islamic finance steadily gaining inroads IFN Sector Correspondents • An impressive growth of Al Meezan Mutual Fund • Islamic syndications remain sluggish IFN Country Analysis • Tunisia: Slow and steady IFN Sector Analysis • Sukuk: The icon Shariah Pronouncement An Islamic bank’s management has approved a financing facility to its customer (a trading company) subject to the company providing acceptable security Case Study Sharjah Islamic Bank’s Sukuk: The first senior unsecured paper since October 2013 Sharjah Islamic Bank (SIB) on the 17th March 2015 successfully tapped the Sukuk market with a US$500 million issuance. With an orderbook that was 7.2 times oversubscribed, SIB had the best reception in the market (compared to other issuances in March 2015) and tightened the most from the initial price talk (IPT). Special Report Global Sukuk outlook 2015 Sukuk has gained tremendous traction globally over several years with Malaysia leading the way. The GCC has been gaining ground as well while Sukuk from non-OIC countries such as the UK, Luxembourg, South Africa and Hong Kong have added to the momentum. Features The UAE’s progression as a global hub for the Islamic economy For the past three months, the UAE government and the emirate of Dubai have announced a number of legal and regulatory changes which are expected to have a direct impact on the development and growth of a sustainable Islamic economy based on international standards. RIMA MRAD provides an overview of recent developments in the UAE’s Islamic finance space. Sukuk: An alternative method for raising capital Many financial institutions (FIs) and sovereign issuers view Sukuk as an essential tool to mobilize funds for establishing a new project or finance a business activity, to raise capital and to satisfy Basel III capital requirements. There are many options for FIs to raise capital. Takaful and re-Takaful: Mainstays of Islamic insurance Thirty-five years have passed since the establishment of the first Takaful company in Sudan. Today, there are around 190 operators active as Takaful or Islamic cooperative companies. Excerpt Financial engineering in Islamic finance the way forward: A case for Shariah compliant derivatives How do we convert real hard assets into financial products? Banks by definition do not trade in real hard assets, they trade in financial products that are linked to real assets. Normal bank loans are linked to either one of the two: future income streams of a borrower, or future revenue generated from an asset that is financed.  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