Al Hilal MENA Fund: Highest-performing open-ended mutual fund in Oman

Rapids • Deals • News • Takaful • Asset Management • Ratings • Moves
20th May 2015 (Volume 12 Issue 20)
Supporting factors While the Islamic finance industry is constantly expanding, it is worth remembering that this growth is supported and contributed by a diverse and varied range of stakeholders that extend far beyond the financial institutions themselves. One of the more pivotal and influential of these groups is the legal services industry, which plays an invaluable role not only in execution and operation but in promoting innovation and increasing sophistication in product structures and deal activity. This week our cover story looks at trends in the Islamic legal sector: and especially the increasing interest of international law firms towards the Islamic stronghold of the Middle East. Our IFN reports cover the boom in commercial development driven by strong consumer spending and innovations in the Islamic microfinance scene of Indonesia; while our correspondent bring you news from Morocco. Our features this week explore Malaysia and sovereign Sukuk, brought to you by ISRA and State Bank of Pakistan. We also have a Takaful feature from Swiss Re ReTakaful, Islamic trading and brokerage by Hikmah Capital Corp, legal documentation by RHB Islamic Bank and credit financing by IIUM to round off another bumper issue for you. As our cover story this week emphasizes, it is essential that all the cogs in the wheel work together to move the industry forward. Strengthen one pillar of support, and it will promote growth across the sector – ideally exemplified by the growth and development of the legal services industry boosting Islamic opportunities. As always, collaboration is key. Cover Story Law firms look to Middle East for growth prospects Demonstrating consistent and continued strength in regional performance and with an expanding and ever-evolving capital market, global law firms are looking to the Gulf for new growth opportunities — leading to an inevitable expansion in Islamic finance capabilities. LAUREN MCAUGHTRY talks to market players on their plans for the future. Column Daud speaks The travels continue and have been both interesting and inspirational! Following visits to the US for the IMF Spring Meeting and with our partner, the World Bank, as well as a series of meetings with partners in the UK on the return leg during April, I was fortunate to attend an invitation-only symposium in Switzerland in early May. IFN Reports • IFN Global Trendswatch • IFN Weekly Poll: What is the preferred Sukuk listing center? • Strong consumer spending pushes boom in commercial developments • Indonesian microfinance space continues to evolve • Company Focus: Tabarak • Kazakhstan means serious business — looking outwards for expansion • Amlak Finance — comeback kid? • Bank Nizwa drops merger plans — what next? • AlKhair Capital targets MENA and Saudi primary market with Islamic IPO fund • Sovereign Sukuk: Hong Kong to tap the market for sophomore offering IFN Country Correspondent • Introducing Takaful in Morocco: The legal process launched IFN Country Analysis • Turkey: Shining bright IFN Sector Analysis • More sovereigns come to play in the Sukuk arena Shariah Pronouncement A customer of an Islamic bank is a company engaged in import and supply of food and grocery items to the big outlets/supermarkets all over the country Case Study Al Hilal MENA Fund: Highest-performing open-ended mutual fund in Oman Incepted in May 2013, the Al Hilal MENA Fund (AHMF) posted a return of 12% year-to-date as at the 30th April 2015. Boasting commendable performance, the fund is said to be the highest-performing open-ended mutual fund in Oman. Speaking to Ahlibank, NABILAH ANNUAR takes a closer look at the workings of this remarkable fund. Special Reports Credit financing in Islamic financial institutions: A Shariah review of Murabahah transactions Islamic finance is based on firm theoretical foundations defined for Islamic financial institutions in the light of Shariah principles. In the current practice of Islamic banking, many issues have been raised regarding the compliance of the existing Islamic banking practice with Islamic law. In this article, SYED EHSANULLAH AGHA will highlight some critiques raised by scholars on the current practice of Murabahah as a tool of financing in Islamic financial institutions. Islamic trading and brokerage Islamic trading accounts are a specific category of investment trading accounts that follow Shariah (Islamic law) to meet the needs of Muslim investors. Many banks and brokerages in the Middle East offer Islamic stock trading accounts and it is a relatively straightforward brokerage service that does not pay or charge interest on the cash funds in the account. Transactions and commission fees are charged similar to a conventional stock trading account and may or may not be competitive. SUHAIL AHMAD explores. Legal documentation from a Shariah perspective: Purchase undertaking In order to suit the Shariah contracts and concepts in the current Islamic finance environment, these contracts must be backed by proper legal documentation. One such documentation which is widely used by Islamic financial institutions (IFIs) is the ‘purchase undertaking’. With that, AHMAD MUKARRAMI and AIZUL AIMAN will expound further on its implementation and arising Shariah issues. Features Regulated Shariah compliance: The case of Islamic finance in Malaysia Today, Malaysia is a brand name in the international Islamic financial market. Malaysia’s track record in developing Islamic finance has become an inspiration to many, particularly emerging economies. One aspect that is fundamental in the development of Islamic finance in Malaysia is its robust Islamic finance regulatory framework. In this short article, DR NOOR SUHAIDA KASRI describes briefly the evolution of regulatory framework governing the raison d’etre of Islamic finance – Shariah compliance which distinguishes it from conventional finance. Sovereign Sukuk to tread a new path The Sukuk market has the potential to record incredible growth. To make it happen, however, there is a need to first concentrate on sovereign Sukuk. ISHRAT HUSSAIN writes. Current state of the re-Takaful industry in Asia It may not be a good idea to look at an old article written sometime ago on the same topic as one may realize that a lot of the predictions made then did not materialize. However, in the case of the earlier article on a similar topic titled ‘Challenges of General re-Takaful in Asia today’ (published in the IFN Supplements Asia issue in October 2012), most of the statements made about the re-Takaful industry 30 months ago are still valid now. MARCEL OMAR PAPP elaborates.  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