Around the world in 80 days…

6 days to go Home Contact Us Subscribe Advertise Events Training REDmoneyGroup Around the world in 80 days… Well perhaps not exactly 80, but as our events season kicks off into full swing, we are reminded once again of the truly global nature of Islamic finance. With IFN Forums coming up in Indonesia, Malaysia, Iran, Luxembourg, Dubai, Kuwait, Sri Lanka, Bangladesh, Nigeria, Turkey, Saudi Arabia and Egypt over the coming months we are proud to have such unique and privileged access to the worldwide markets. And to reflect that, this week's issue of Islamic Finance news is one of the biggest and best we have ever produced: with unique analysis and exclusive content from all corners of the globe. Our cover story tackles the controversial concept of Islamic preference shares: exploring the complex question of permissibility across different jurisdictions, evaluating their true compliance and analyzing their potential for future Islamic transactions. Our bumper IFN report section this week brings you a cornucopia of prizes: including a unique look at the impact on Islamic investors of Indonesia’s termination of its investment treaties; an analysis of global Islamic aircraft financing; an exploration of Islamic finance developments in the UK; a focus on new strategies from Saudi-based Sidra Capital; a look at the growing trend for ASEAN palm oil Sukuk; an analysis of the implications of the booming GCC real estate market on Sukuk pricing; and an investigation into the compelling prospects for cash Waqf in Malaysia. Our analysis reports look at Malaysia’s Islamic Finance Services Act 2013 and the recent developments in Shariah compliant stockbroking and trading; while our case study covers the Cagamas Sukuk. IFN correspondent reports come to you from Bahrain, Kuwait, Lebanon and the US; while our country feature is contributed by Amirabbas Zinatbakhsh of Strategic Avenue Consultancy on the application of Sukuk for the tourism industry in Malaysia, and our sector feature from Dr Nihat Gumus of Borsa Istanbul explores recent developments in Turkey. We are also delighted to present an exclusive special report from Fitch Ratings on sovereign rating divergence in the MENA region, along with an additional exclusive piece from S&P on the global Sukuk outlook. We continue the theme with another extract from ‘Islamic Capital Markets’ by Brian Kettell, and finish up this exceptional issue with an exclusive interview from Mahesh Jayanarayan, the chairman of UMEX - which we can promise makes for a fascinating read! Cover Story Not always black and white: The knotty problem of preference shares Preference shares are a fundamental element of conventional finance, especially in private equity and venture capital transactions. Their use in Islamic structures is controversial and confusing, with many regions banning them outright; while some persuasive arguments also exist for their inclusion. (Click to read full report) Shariah Pronouncement: A leasing company provides financing to small and medium-sized businesses wishing to acquire commercial vehicles, machinery and equipment (Click to read full report) IFN Reports: Termination of Indonesian bilateral treaties could benefit Islamic investors Cash Waqf: The missing piece of the puzzle Aircraft financing: An unrealized opportunity Sukuk: A growing trend among ASEAN palm oil producers Shifting focus: Sidra Capital turns its attention to African pastures Rising confidence in UAE real estate driving Sukuk appetite Islamic finance in the UK: Beyond capital markets IFN Country Correspondent: Bahrain eyes external Shariah audit Will PPPs be funded through Islamic finance? Evaluation of the status of the Islamic finance industry in Lebanon Islamic finance is topic of discussion at US State Department Forum IFN Country Analysis: Malaysia’s developing Islamic finance story IFN Sector Analysis: Islamic finance on the trading floor: Stockbroking and trading S&P Special Report: The global Sukuk market is set to expand again in 2014 Fitch Ratings Special Report: Sovereign rating divergence in MENA may peak in 2014 Case Study: Malaysia’s first profit-based ICP (Click to read full report) Interview: Exclusive: Iconic chairman of UMEX, Mahesh Jayanarayan, speaks to Islamic Finance news on Islamic finance in the UK and beyond (Click to read full report) Features: Application of Sukuk for the travel and tourism industry in Malaysia As the world becomes wealthier, the tourism industry is growing simultaneously. AMIRABBAS ZINATBAKSH explores the exciting possibilities this presents for Islamic tourism and its potential for the Malaysian travel industry, and looks at how a new structure for Sukuk could enhance this opportunity... (Click to read full report) Recent developments in Turkey in the area of Islamic finance The Islamic finance industry is growing worldwide and Turkey has made no secret of its ambition to become a leading player in this market. DR NIHAT GUMUS looks at the steps the country has taken to ensure its position and develop its Islamic capital markets... (Click to read full report) Extract: Islamic capital markets and Islamic securitization A capital market is typically a place where capital is traded between those having surplus capital and those requiring funds for their investment needs. Modern capital markets, particularly in a capitalist, monetized economy have, over a century or so, developed a very efficient system in order to facilitate the following demands... (Click to read full report) DEALS Sri Lankan Airlines refinances existing debt with US$150 million multi-currency Islamic term-financing facility Treedom Group contemplates Sukuk issuance for the near future as Sukuk market expected to reach US$900 billion by 2017 Books for DAMAC Sukuk exceed US$2.8 billion, issue expanded to US$650 million Government of Malaysia will issue US$794.4 million in Sukuk to service new and existing housing loans for civil servants Japan Bank for International Cooperation looking to enter ringgit debt market, considering Sukuk Ireland’s Electricity Supply Board Sukuk expected to be issued by the end of second quarter Dana Gas receives approval to increase share capital resulting in US$4.76 million of convertible Sukuk Etiqa Takaful to come to market with US$91.8 million ‘AA1’-rated Sukuk Sabah Credit Corporation returns to the Sukuk market with US$459.01 million offering FWU Group’s recently-concluded second Sukuk tranche has wider geographical spread of underlying insurance policies NEWS Abu Dhabi Islamic Bank to acquire Barclays’ retail banking business in the UAE for US$176.94 million A new Tunisian Islamic microfinance company in partnership with IDB is in the works, confirms Zitouna Bank CEO Moroccan authorities pushing for holistic development of Islamic finance Bank of Khyber inaugurates Islamic banking branch in Mardan HwangDBS Vickers Research places ‘hold’ call on Bank Islam Malaysia as it anticipates neutral impact on the bank’s net interest margin Finance minister encourages Middle Eastern banks to invest in Pakistan treasury bills Islamic banking assets in Indonesia grow by 24.2% in 2013 IDB submits draft agreement for road reconstruction financing facility to the Azerbaijani government Bank Rakyat targets 10,000 users for new co-branded Shariah compliant credit card in partnership with Takaful Ikhlas Indian political party promises to establish Islamic banks in two states as part of election pledge Pakistani central bank introduces guidance on Shariah compliance RHB Islamic extends commodity Murabahah term financing facility worth US$763.85 million to Maxis NRB Commercial Bank seeks government approval to convert into a fully-fledged Islamic bank Central bank plans for Center of Excellence in Islamic Finance to be established in Pakistan ICB Islamic Bank unable to repay US Department of Agriculture due to cumulative losses of US$20.3 million Newly-launched online certification program to contribute to the growth of Malaysia’s Islamic finance industry, says IBFIM CEO Development strategy for Indonesia’s Islamic finance sector in need of an overhaul, according to financial services authority CEO Boustead Plantations anticipates mid-June IPO will generate US$304.83 million The UK’s minister of universities and science seeking feedback on Shariah compliant student financing through 12-week consultation Global Islamic Finance and Investment Group holds inaugural meeting in the UK Kuwait Finance House intends to establish investment holding company in Turkey Booz & Company changes name to Strategy& following acquisition by PwC Interest in the UAE and Qatar market grows ahead of emerging status upgrade Month of March sees highest volume of Sukuk issued worldwide this year at US$11.2 billion, reports Kuwait Finance House Dubai government inaugurates the NASDAQ Dubai Murabahah Platform Sukuk could provide funding for GCC infrastructure projects worth US$1 trillion according to report US$700 billion out of global trade volume of Halal products worth US$2 trillion located in Islamic markets, according to Saudi Chambers deputy chairman Investcorp seeks exposure to distressed debt of Europe through collaboration with Eyck Capital Management RAM Ratings becomes associate member of the Gulf Bond and Sukuk Association Kuwait Finance House to promote economic cooperation between Kuwait and Turkey ASEAN and Indian banks well placed to cope with the effects of US Federal Reserve tapering according to Moody’s Bank Sohar increases bank capital to US$296.34 million Dubai Financial Market’s reformed Sukuk standards address ambiguous areas of Sukuk listings Al Hilal Bank considering capital increase this year to support growth SHUAA Capital picked as manager for Able Logistics IPO Ithmaar Group details strategic measures for 2014 to optimize cost efficiency Dubai Financial Market suspends trading on Al Madina Finance & Investment and Al Salam Group Holding for missing annual results disclosure deadline Kuwait Projects Company aims to list pay-television unit on London bourse by the end of this year Omani banks given six months to adjust to new credit exposure limits implemented by the central bank National Commercial Bank to increase capital by converting retained earnings Dubai World confident in ability to repay US$4.4 billion in May NASDAQ Dubai Murabahah platform anticipates healthy pipeline of new participants National Commercial Bank to finance US$186.62 million cement project Wakalah growing in appeal among Bahrain-based Islamic financial institutions Abu Dhabi National Islamic Finance expands branch network with the launch of its sophomore Al Ain branch Central Bank of Bahrain seeking feedback on new rules for Islamic financing contracts Zain Group secures US$250 million Murabahah facility to finance general corporate needs Commercial Bank of Kuwait receives shareholder approval to convert itself into an Islamic bank Waad al-Shamal project gains US$2 billion in funding from the Public Investment Fund Bank Albilad adopts new FIS payment platform Mashreq pioneers NFC-empowered mobile wallet payment service in the UAE Aldar Properties contemplating IPO for property management unit Khidmah Islamic banks take part in Marka’s IPO, UAE’s first public shareholding firm in the retail sector to be listed on Dubai Financial Market Emirates NBD marks World Health Day with free health checks National Industries Group to sell 29.9% stake in Noor Financial Investment Group Dubai Islamic Bank and Emirates Group sign MoU to facilitate application for personal banking products Talks regarding merger of UAE bourses move towards a positive outcome RAKBANK shareholders to vote on raising foreign ownership cap to 40% next month Acquisition of BMI Bank increases Al Salam Bank-Bahrain’s issued and paid-up share capital to US$561.54 million Emaar Properties re-initiates IPO plans boosted by strong market recovery Dubai Holding unit reports profit of US$898.4 million for 2013 Saudi Investment Bank realizes 7.38% expansion in first quarter net profit Saudi Hollandi Bank announces net profit increase of 20% in 2014 first quarter results Riyad Bank reports 13% net profit for first quarter of the year Abu Dhabi Islamic Bank-Egypt marks first year of positive net earnings since 2007 with US$14.74 million net profit in 2013 Weqaya Takaful Insurance and Reinsurance Company reports loss of US$44.01 million Banque Saudi Fransi realizes a 25.15% growth in net profit during the first quarter TAKAFUL Amãna Takaful opens new headquarters Takaful Insurance of Africa not profiting from pioneering insurance policy for Muslim herders but eyeing self sustainability Committee of Insurance Irregularities and Disputes Settlement adjourns lawsuit filed by SABB Takaful against INMAIA Emirates Islamic launches new Takaful-guaranteed investment plan in partnership with AMAN AMANA Cooperative Insurance Company receives approval for renewal of health insurance qualification from Council of Cooperative Health Insurance ASSET MANAGEMENT Falah Capital to launch a series of Islamic ETFs by mid-year Emirates REIT expands IPO base offer to US$175 million to meet investor demand Alliance S&P Shariah Index Fund opened for subscription until the 20th April RATINGS Islamic International Rating Agency affirms Islamic Insurance Company Jordan at ‘A’ Bahraini banking system receives outlook boost driven by economic recovery and increased government spending TSH Resources’ Islamic debt programs receive rating affirmation from MARC with a stable outlook Naim Holdings fully redeems Islamic debt facilities ahead of maturity Bank Asya stake acquisition by Qatar Islamic Bank will be credit positive for the Turkish participation bank, says Moody’s MARC affirms ‘AAAID’ rating on MISC’s Islamic debt program S&P confirms stable outlook on Qatar’s ‘AA/A-1+’ ratings Fitch affirms long-term foreign currency issuer rating for Jordan Islamic Bank at ‘BB-’ MOVES Bank Sohar appoints new board member following resignation of Mohamed Abdulla Al Khonji HSBC Bank Oman appoints Andrew Long as new CEO First Gulf Bank names Hana Al Rostamani as head of consumer banking group Kuwait Finance House elects new board and announces new chairman and vice-chairman Islamic finance lawyer Philip Hyde joins the Hong Kong and Tokyo offices of K&L Gates Mohamed Ali Elgari re-joins IILM Shariah board Al Rajhi Bank (Malaysia) names Hasniza Hassan as deputy director of wholesale banking Qatar Financial Center Authority appoints chief strategic development officer as deputy CEO Kingdom Holding appoints Adel Alsayed as executive board member Harneys appoints Ian Montgomery as senior associate