Stairway to heaven: Saudi takes first steps to international success

Rapids • Deals • News • Takaful • Asset Management • Ratings • Moves
22nd July 2015 (Volume 12 Issue 29)
Coming into focus As we emerge from the lull of Ramadan into a hot summer, activity is gradually picking up. Pulling back from the holiday mindset and refocusing on the work at hand, this issue is full of exciting news and the latest activities in the market. Our cover story looks at legendary sleeping giant Saudi Arabia, who looks finally to be waking up to foreign investment. We explore the impact of the recent Tadawul opening, as well as the latest steps on the journey and the new opportunities that exist in its capital markets. We also have an interview with the chairman of Saudi's Capital Market Authority, Mohammed Al-Jadaan, in which he gives us the inside track on the latest regulatory actions and upcoming events in the market. Our IFN reports look at China and Sovereign Sukuk while our IFN Correspondents bring you news of debt capital markets, Iran and Australia. Our special report is a critical analysis on Islamic banking while our features this week come to you from Africa Islamic Finance Corporation and Assistance and Consulting for Development in Africa as well as QInvest. We also have in-house analyses looking at Palestine and Islamic syndications. I hope you had a wonderful Eid Mubarak and for those who took time off, welcome back to work! We hope that this latest issue of IFN will provide you with a wealth of entertainment, interest and information upon your return. Cover Story Stairway to heaven: Saudi takes first steps to international success In June this year, Saudi Arabia opened its stock market to foreign investors in a long-awaited move that it hopes will elevate and optimize its operations. With the recent sovereign bond issuance and confirmation of further regulatory reforms to provide credit ratings and develop the debt capital market, prospects look promising. But ongoing issues of oil price volatility and regional instability, combined with a soaring fiscal deficit and cautious investor sentiment, make the steps to success steeper than expected. LAUREN MCAUGHTRY cuts through the commotion to ask what we can really expect from this regional giant. IFN Reports • China: The time is now • Sovereign Sukuk: The usual and the new • Company Focus: World Bank • IFN Weekly Poll: Which state in the CIS region has the most potential for Islamic finance? • Malaysian Islamic government securities take major market share in the first half, displacing conventional bonds • CIMB Islamic CEO resigns • Russia’s largest bank launches Islamic finance pilot project as country seeks to tap Gulf wealth • Iran’s nuclear deal to cause seismic shift IFN Country Correspondents • Iran: What will probably result afterwards? • Resilience of the Australian Islamic and Shariah compliant funds after the global market turbulence IFN Sector Correspondent • Saudi Arabia welcomes foreign investors IFN Country Analysis • Palestine: There is still cause for optimism IFN Sector Analysis • Islamic syndications picking up pace Case Study ICD’s largest financing to date The Islamic Corporation for the Development of the Private Sector (ICD) in June successfully secured a Murabahah financing facility. At US$300 million, the deal was the ICD’s largest financing to date. Speaking to the multilateral development financial institution, NABILAH ANNUAR provides a rundown of the transaction Interview Interview with Mohammed Al-Jadaan, chairman, Capital Market Authority, Saudi Arabia This week, IFN brings you an exclusive interview with Mohammed Al-Jadaan, the chairman of the Capital Market Authority of Saudi Arabia to discuss the impact and challenges of opening up the Tadawul to foreign investors and what can be expected for 2015-16. Special Report Critical analysis of Islamic banking It is always challenging to have innovative products and services. The challenges vary from country to country and from one school of thought to another. If an individual customer needs an alternative credit card from an Islamic bank in Pakistan, he or she cannot get it. Features Evolution of Islamic finance in Senegal The National Assembly of Senegal voted unanimously for Bill N° 272015 related to Waqf on the 24th April 2015. This bill is intended to formalize all Waqf in this West African country where Waqf has been practiced for many centuries. Dakar: Potential Islamic finance hub In developments matching all expectations, Islamic finance is taking shape in the Senegalese capital. Already many programs and projects have been experimenting with financial products available to populations in different areas. These programs have finally convinced the authorities of the relevance of these instruments in development policies. MANSOUR NDIAYE writes. The search for yield continues GCC capital markets have continued to see downward pressure exerted from lower oil prices in 2015. Although oil prices have rebounded slightly since March, OPEC action has curtailed any significant upward movement driving the GCC banking sector to focus on liquidity. ALEXANDER ARMSTRONG delves further.  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: Geraldine Chan Direct Line: +971 4 427 3628 Kuala Lumpur: Siti Amilia Amir Amzah Direct Line: +603 2162 7800 ext 27