Innovation breeding cooperation

40 days to go Home Contact Us Subscribe Advertise Events Training REDmoneyGroup Innovation breeding cooperation Islamic finance is all about innovation – finding new ways to do things that truly enhance and improve product and service offerings for Shariah compliant institutions. Our issue this week celebrates both the cross-border collaboration between countries in developing this, and the individual regional achievements that are driving the industry forward one step at a time. Our cover story covers both aspects: with an in-depth examination of the top equity listing venues and the attractions they hold for the new boom of IPOs that is hitting the Gulf this year. Our IFN reports stick with the trading theme: with a look at the new fixed income and Murabahah platforms from NASDAQ Dubai as well as a special report from Eiger Trading on the evolution of online platforms. We also cover the new OFS Module in Bahrain, the impact of online applications for Islamic banking, the MENA trend for Islamic leasing, the new foreign ownership rules in Qatar and the UAE, and the surge in SME activity on the back of a new UAE law to encourage entrepreneurship. Our correspondent reports cover Morocco and real estate while our sector analyses look at structured finance as well as the potential for Islamic finance in central Asia. An exclusive report from Thom Polson of Falah Capital introduces a new range of Islamic fund products, while Professor Laurent Marliere of ISFIN muses on the challenges facing Dubai’s bid to become the center of the global Islamic economy. Our case study looks at the new Sukuk series from FWU, while Rahail Ali of Hogan Lovells (Middle East) contributes a book excerpt on Islamic finance in the syndicated bank markets. With the equity markets picking up and economic buoyancy looking promising, now more than ever is the time for cross-border collaboration and cooperation – and our issue this week demonstrates just how successful the Islamic finance industry has become at international relationship-building. Cover Story Islamic IPOs: The next big boom The Gulf is seeing a surge of IPOs this year as high stock market valuations tempt firms towards floating, while a move to diversify away from fixed income increases the appeal of equity capital raising. But although corporates are crowding into the market, where they list is another matter. With multiple exchanges offering different attractions, this week we take a look at where the money is really going – and why? (Click to read full report) Column: Daud speaks Shariah Pronouncement: Ali has approached an Islamic bank with a request to assist him to buy out the shares of his minority partner Akram in a running foodstuff business (Click to read full report) Exclusive Report: Platform wars: The evolution of online trading IFN Reports: New fixed income platform from NASDAQ Dubai seeks to boost secondary market trading New law marks big push on UAE SME activity OFS Module to foster investor confidence in Bahrain’s capital market Foreign ownership limits rise ahead of MSCI upgrade for Qatar and the UAE The evolving landscape of Islamic banking: Going digital Islamic operating leasing — set to take center stage in MENA IFN Country Correspondent: Morocco: Conventional banks’ appetite for Islamic finance IFN Sector Correspondent: Real estate: Pole position for growth IFN Country Analysis: Kazakhstan and Central Asia: Living up to its potential? IFN Sector Analysis: A new direction for Islamic structured finance? Special Report: Bringing efficiency, transparency and choice to the Islamic funds market Case Study: The sophomore tranche of FWU Group’s US$100 million Sukuk Wakalah program (Click to read full report) Special Feature: Can Dubai really become the capital of the Islamic economy? Marketing Mufti PROFESSOR LAURENT MARLIERE considers the challenges that must be surmounted for Dubai to succeed in becoming the center of the emerging global Islamic economy. What is the Islamic economy? The term Islamic economy can be considered through various angles... (Click to read full report) Extract: Islamic finance in the syndicated bank markets The growth in appetite for syndications of Shariah compliant financing is consistent with the growth of Islamic finance generally. The catalyst for the Islamic finance boom is demand, founded on the requirement to obtain financing which complies with religious beliefs... (Click to read full report) DEALS Indonesian finance ministry exceeds target with US$137.75 million-worth of Sukuk sale Maybank Islamic expands maiden Basel III-compliant Sukuk to US$459.02 million following strong investor demand IDB appoints Bank of London and The Middle East to co-lead its US$1.5 billion five-year Sukuk deal Emaar Properties’ Egyptian unit considering Sukuk to finance projects in the kingdom KLCC Real Estate Investment Trust receives regulatory approval for US$929.41 million Sukuk Murabahah sale Saudi Electricity Company prices landmark US$2.5 billion Sukuk Turkiye Finans Katilim Bankasi reportedly planning for Sukuk investor meetings as Sukuk market undergoes revival post-election Puncak Niaga’s Islamic debt facilities worth US$316 million to be due and payable on the 25th April Highway concessionaire PLSA redeems US$101.9 million Sukuk Ijarah ahead of maturity Dar Al Arkan Real Estate Development Company fully repays US$200 million Sukuk facility using available cash IILM continues its streak, issuing an US$860 million Sukuk on the 17th April SIB Sukuk Company to make periodic distribution on the 16th April Putrajaya Holdings’ Murabahah notes issuance facility due and payable on the 21st and 30th April Gulf Finance House’s US$500 million Sukuk issuance underway NEWS Zitouna Bank signs accord with Shariah compliant banks in African countries to establish cooperation network in Islamic finance Emirates NBD solidifies presence in Egyptian market by opening head office in Cairo and launching brand in the domestic market Maldives Islamic Bank marks beginning of expansion strategy outside of Male with the inauguration of branch in Addu City Two Moroccan banks confirm plans to establish Shariah compliant units in anticipation of banking law Aid from the GCC has benefited Egypt according to Faisal Islamic Bank governor Philippine Stock Exchange updates list of Shariah compliant securities to include another 25 entities OCBC Al-Amin and Credit Guarantee Corp enter five-year deal to launch new financing product for SMEs Russian Federation holds international summit to strengthen economic and trade ties between Russia and OIC member countries Corporate, SME and retail segments to drive Maybank Islamic’s growth to 9-11% this year, says CEO Analyst expects RHB Capital to focus on Islamic banking business with particular dedication to enhancing SME segment as part of its transformation program State Bank of Pakistan will focus on removing inequalities and sharing profits on equitable basis to lay strong foundation for Islamic banking, according to acting governor Bank of Khyber expands Islamic operations in the city of Multan by launching another branch Bank Islam is still looking to enter Indonesian market despite unsuccessful attempts in the past, reaffirms managing director Islamic banking assets to reach 25% of Malaysia’s banking assets by 2017, says RAM Gatehouse Bank expects to purchase at least 15% of the UK’s proposed sovereign Islamic debt The UK and Bahrain sign MoU to enhance Islamic finance-driven trade and investment between the two countries GCC banks show positive progress with double digit revenue growth according to study Impending status upgrade to emerging markets for the UAE and Qatar will drive up demand for locally listed equity and depository receipts, says BNY Mellon managing director Emerging markets claiming a larger share of foreign direct investment The ICD and Emirates Future collaborate in developing Halal food industry and strengthening food security of Islamic world Gulf Finance House confirms sale of 75% Leeds United stake to Eleonora Sport Hong Kong and Malaysia identify dual listing of Sukuk as potential area of collaboration for the near future Islamic banking and finance in Brunei, Kuwait, Malaysia, Qatar, Saudi Arabia and the UAE will command at least 50% of total financial services sector by 2020, according to report Emerging markets need to revamp arbitration system to enhance efficiency and improve investment environment, says experts The UK builds on ties with the GCC ahead of its debut Sukuk issuance Property firm Limitless in talks with banks for more time to repay US$1.2 billion Shariah compliant debt facility Murabaha Company appoints Saudi-Kuwait Finance House as financial advisor for public offering Trading in Emirates REIT begins following listing on NASDAQ Dubai UAE central bank launches overnight lending facility PNB and Inspire Corp launch Japan’s first Halal fund Department of Economic Development launches mobile application for business licensing transactions Bank Nizwa partners with ProgressSoft to provide clients with in-house electronic cheque clearing system Emirates Islamic expands retail offering with new range of Shariah compliant MasterCard debit cards Saudi Hollandi Bank approves expansion of bank capital to US$1.27 billion through the issuance of bonus shares Saudi Fransi Capital recommends ‘buy’ ratings for Al Rajhi and Alinma and ‘hold’ for Albilad and AlJazira National Commercial Bank selects HSBC Saudi Arabia and Gulf International Bank to advise on IPO Saudi deputy crown prince targets banks’ record regarding support for the poor Positive results expected from UAE banks for the first quarter of the year in particular Dubai Islamic Bank, Emirates NBD and Mashreq SHUAA Capital passes resolution to appoint new CEO and determine scope of authority Al Madina Takaful receives Capital Market Authority approval for 5% cash dividend Dubai Expo 2020 expected to generate US$1.08 trillion in foreign trade Tadawul introduces new method for calculation of share closing price Abu Dhabi Islamic Bank concludes financing deal for IMG Theme Park worth US$326.62 million Investment in SMEs and housing projects the next step for Saudi banks, according to Alkhabeer Capital Alizz Islamic Bank plans to streamline SME financing in line with Central Bank of Oman’s stipulation Qatar Islamic Bank enhances ATM transaction security for customers by partnering with NCR Corporation to implement new technological solutions Ithmaar Bank re-launches Shariah compliant savings account with bigger incentives to a wider pool of customers Customer service is the most complex and difficult challenge for bankers in the UAE, consistency needed, according to Emirates NBD manager Bank AlJazira gains approval for capital increase of US$266.61 million AAOIFI hosts annual Shariah conference in Bahrain Bank Albilad announces net profit of US$46.3 million for the first quarter of 2014 Net profit up 5.04% for Arab National Bank at US$190.07 million Alinma Bank first quarter net profit up 32.58% Kuwait Finance House-Malaysia sees 2013 net profit surge 64.4% CEO says Islamic banking expansion continues to boost National Bank of Kuwait’s profitability and balance sheet, first quarter net income up 3.2% Saudi British Bank realizes 14% growth in net profit for the first quarter SHUAA Capital reports revenue growth of 77% and net profit of US$2.2 million Boubyan Bank sees first quarter net profit surge 84% CIMB Bank realizes 4.5% expansion in net profit to US$1.4 billion last year Gulf Bank reports net profit of US$31 million for the first quarter of 2014 National Commercial Bank makes gains of 8.7% in net income Faisal Islamic Bank of Egypt reports slight dip in first quarter net profit to US$24.6 million OCBC Al-Amin posts 133% surge in net profit for 2013 financial year Al Rajhi Bank reports decline in net profits for second consecutive quarter TAKAFUL Prudential BSN Takaful implements new distribution channel structure to enhance proficiencies of agents GCC Takaful industry to maintain double digit growth despite challenges, according to experts Al Alamiya for Cooperative Insurance Company receives temporary approval to the use of insurance products for half a year Securities and Exchange Commission of Pakistan issues show-cause notices and warning letters to insurance and Takaful firms Brunei’s Ministry of Home Affairs contracts Takaful Brunei Am to safeguard welfare of local village leaders via Takaful coverage ASSET MANAGEMENT RHBAM rolls out Islamic fund focusing on Asia Pacific’s economic growth i-VCAP Management plans to launch foreign equities ETF this year Mashreq launches Al Islami Arab Tigers Fund following conversion from conventional to Shariah compliant vehicle UBL Fund Managers consolidates Islamic investment solutions under Al Ameen Funds HSBC Saudi Arabia rebalances HSBC Saudi 20 ETF Alkhair Capital receives regulatory approval to launch Murabahah fund RATINGS Noble Group’s plan to offload 51% stake in agriculture unit is unlikely to immediately affect Sukuk ratings, says RAM RAM Ratings reaffirms Malaysia’s sovereign rating at ‘gA2(pi)’ Heightened political uncertainty drives down outlook on Turkey’s ‘Baa3’ government bond rating to negative Fitch ceases rating obligation on BMB Investment Bank as the bank withdraws from rating process KLCC REIT’s proposed Murabahah facilities receive ‘AAA/Stable/P1’ ratings from RAM Capital Intelligence gives Qatar Islamic Bank an outlook boost and ‘A’ rating HwangDBS Investment Bank’s long-term financial institution rating upgraded to ‘A1’ as it becomes a strategic entity of Affin Banking Group MOVES Barwa Real Estate Group appoints four new board members 90 North Real Estate Partners expands team with four new hires Barwa Bank’s First Leasing Company undergoes restructuring exercise which saw the exit of acting CEO Rushdi Siddiqui joins DinarStandard as senior partner and head of Islamic economy Gulf Finance House appoints eight new members to its board