Taking time to review

26 days to go Home Contact Us Subscribe Advertise Events Training REDmoneyGroup Taking time to review Our industry is ever moving forward and attempting to grasp new opportunities, which is exactly as it should be. But sometimes it is worth standing still and looking around us, to make sure we haven't missed something in our mad dash forward. This week our cover story takes stock of the separation between Islamic finance and the Halal sector, and asks whether we might need to slow down and re-evaluate our approach in order to make the most of this opportunity. Our IFN reports continue this theme, with a round-up of ICD activities in the first quarter of 2014 and a look at financial exclusion as a barrier to growth in the D-8 countries. We also bring you an update on the sovereign Sukuk race, a look at the opportunities for Takaful in Pakistan now the impasse is over, and we revisit the endless aim of standardization in the industry. Our IFN correspondents cover Nigeria, Canada and the UK; while our in-house analyses explore the Philippines and the derivatives sector; and our case study this week is on the Turkiye Finans Sukuk. The Dubai Financial Market provides a special report on its new standard for hedging and we also have an exclusive interview with its chairman, Essa Kazim. Bishr Shiblaq of Arendt & Medernach contributes an article on the challenges facing the Luxembourg sovereign Sukuk issuance; while John Benette B Mamangun and Martha H Vinzons of the Philippine Stock Exchange discuss their new Islamic index; and Salman Ahmed Shaikh of the Institute of Business Administration, Pakistan asks whether we really need Islamic derivatives. Cover Story Does Halal financing have a limited shelf-life? It’s not over – it hasn’t even started yet. That’s how many view the absence of Halal funding in the Islamic finance sector. Yet despite the oft-called for convergence between the two industries, is anything really happening or is it all just empty words? This week, Islamic Finance news looks at the hard questions behind the Halal sector – and asks whether, instead of a wave waiting to happen, the tide is already on its way out for Islamic finance. (Click to read full report) Shariah Pronouncement: An Islamic bank wishes to provide financing to one of its customers, in order to purchase a ready property from a developer (Click to read full report) Exclusive Report: DFM Standard for Hedging IFN Reports: The race: IFN’s weekly sovereign Sukuk race Standardization: The perpetual goal of Islamic finance Financial exclusion — a barrier to growth Takaful in Pakistan: Impasse finally broken, a new exciting growth story ahead ICD in the first quarter IFN Country Correspondent: Canada: Growing interest in Canada on Islamic finance UK: London hosts ‘Sukuk Day’ Nigeria: Stakeholders call for improved government support to Islamic finance industry IFN Country Analysis: The Philippines: The way forward for Islamic finance IFN Sector Analysis: Derivatives in Islamic finance — the ongoing debate Special Report: Luxembourg: Sovereign Sukuk setbacks Case Study: First US dollar-denominated Sukuk of the year: Turkiye Finans (Click to read full report) Interview: Exclusive interview: Essa Kazim (Click to read full report) Features: The Philippines considers new Islamic index Continuing its push to develop its domestic Islamic finance economy, the Philippines has over the past few months identified a number of areas in which progress can be made. JOHN BENETTE B MAMANGUN and MARTHA H VINZONS explore the most recent proposals for an Islamic index. The Philippine Stock Exchange (PSE) is looking at various options to build up Islamic finance in the country’s capital markets including the possible launch of a Shariah index... (Click to read full report) Does Islamic finance really need derivatives? Derivatives are a touchy subject for Islamic finance practitioners, and their use has been clouded by controversy. SALMAN AHMED SHAIKH explores the issue and looks at how essential (or not) these instruments really are to a functioning financial market. In the traditional theory of finance, the basic premise for having financial intermediation rests on two arguments... (Click to read full report) DEALS DAMAC Properties’ successful Sukuk listing raises value of Sukuk listed on NASDAQ Dubai to US$6.35 billion Dubai taps capital market after a year of absence with US$750 million 15-year Sukuk International Islamic Financial Market targets twice as many standards by early 2015 with Sukuk Ijarah framework in place at the end of 2014, says CEO Six corporate Sukuk launches to be announced by Curzon Corporate Finance during London Sukuk seminar next month Saudi Telecom selects JPMorgan Chase, Standard Chartered and NCB Capital to arrange debut Sukuk offering Semi-annual profit payment on Nu Sentral’s Islamic facility due at the end of the month Capital Markets Board says that Bank Asya’s Sukuk sale will resume once it receives required documentation Sentral 384 semi-annual payment to shareholders due on its US$61.55 million Sukuk Public Islamic Bank to launch Basel III-compliant Sukuk program worth US$1.53 billion Pakistani Islamic debt market to receive boost as Engro Corp looks to raise US$40.51 million through Sukuk Special Power Vehicle’s Class A Islamic medium-term notes due and payable on the 19th May Contradicting reports on possible timeframe for Pakistan’s sovereign Sukuk emerge NEWS Nigerian regulators urged to strengthen support for non-Riba financial sector especially in the area of Sukuk and liquidity management Arab Orient Takaful Company shareholders agree to increase company’s capital to US$10.96 million IDB partners with Kaduna state government to further infrastructure development Rebrand sees Al-Watany Bank of Egypt become NBK-Egypt Al Nouran sugar production facility secures ICD Shariah compliant financing worth US$46 million Uganda engages the IDB and Islamic Chamber of Commerce and Agriculture to amend legislation to allow Islamic finance Islamic investment assets available in Senegal according to ISFIN partner National Higher Education Fund Corporation chooses RHB Islamic as agent for National Education Savings Scheme-i Islamic Bank of Thailand manager urges Thais to study Muslim way of life to attract Islamic money into the kingdom Malaysia Building Society confirms that it is on the right path to become a fully-fledged standalone bank State Bank of Pakistan joins hands with World Bank to develop 2014-18 national financial inclusion strategy Bangladeshi central bank to launch Shariah refinancing scheme for SMEs Kovsarbank resumes banking activities after three-year suspension Pakistani government to auction Sukuk worth US$427.26 million early May Kyrgyz Republic signs agreement to develop draft regulations for the introduction and development of Islamic securities and Takaful Arpico Finance Company enters Islamic finance space with the launching of new Shariah compliant unit Securities and Exchange Board of India preparing to launch trading in Sukuk this financial year Lloyds Bank accused of discrimination over the absence of overdraft charges for its Islamic accounts Recent introduction of trust funds in Czech Republic could enhance republic’s position as a potential investment destination for Shariah investors, suggests schoenherr Tamweel Africa Holding plans to establish Islamic banks in Benin and Mali Murabahah in stocks among topics discussed during inaugural meeting between Bahrain Bourse and Tadawul Mounting evidence points towards possible AUB-KFH merger OIC Islamic Solidarity Fund to form working group to identify new projects Investorp announces plans to acquire US-based Totes Isotoner Corporation in partnership with Freeman Spogli & Co ICD to open Ijarah leasing company in Palestine IDB engages Azerbaijani engineering firm to produce report on water and food security projects in the Greater Central Asia Sudanese Egyptian Bank to be bought by the Islamic Solidarity Bank of Sudan for US$22 million EY predicts Islamic banking assets to reach US$3.4 trillion in 2018 as bankable population expands underpinned by higher Muslim population growth rate Tharawat Holding Company now the majority shareholder of Quantum Investment Bank following 54% stake acquisition Money laundering and financial crime a worry for Middle Eastern banks, according to report ICD signs MoUs with Bank of Tokyo Mitsubishi UFJ and the Free Zone Authority of Nouadhibou Bahrain, Kuwait and Qatar to launch integrated point of sale service to facilitate debit card purchases within GCC region on Thursday Fajr Capital to acquire National Petroleum Services in the upcoming quarter RAKBANK to recruit over 120 Emiratis in support of Emiratization Home finance company Bidaya should be ready to launch by end of the year, according to ICD head Abu Dhabi Islamic Bank enhances mortgage line with new related personal finance package as UAE real estate market improves Knowledge sharing is key element for informed industry practitioners, according to Islamic finance player Al Madina for Finance & Investment aiming to strengthen financial position in deal with creditors Investcorp inaugurates new representative office in the UAE Dubai Islamic Bank emerges as one of the biggest drivers as Dubai Financial Market Index breaks 5,000 benchmark Maran Nakilat secures refinancing deal with Barwa Bank and Qatar Islamic Bank to expand LNG vessel fleet Dubai Investments approves raising foreign ownership cap to 35% in light of impending MSCI upgrade Khaleeji Commercial Bank inaugurates eighth branch in Zinj UAE Islamic banks will double market share by 2020 according to Emirates Islamic Bank Ajman Bank provides customers with trading services via alliance with Al Ramz Capital Al Rajhi arranges five-year US$266.59 million Murabahah facility for Arab Petroleum Investments Corporation Industry sources believe Mubadala to be the financier of Etisalat’s US$5.81 billion purchase in Maroc Telecom Industry participants expects robust IPO pipeline for Saudi Arabia this year Securities and Commodities Authority of the UAE reduces minimum Sukuk size eligible for listing to US$2.72 million in a bid to encourage trading Central Bank of Bahrain hosts Islamic finance students Al Baraka Banking Group commences dividend payment to shareholders Islamic banking sector assets hit US$2.09 billion in 2013, according to Oman central bank head Qatar Financial Market Authority introduces new legislation relating to capital adequacy standards for financial services, M&A and governance among others Al Khaliji Commercial Bank offers POS system to corporate and commercial customers Abu Dhabi Commercial Bank exceeds expectations with 15% growth in net profit for the first quarter Ahlibank reports net profit of US$15.4 million for the first quarter of 2014 Telecommunications company Mobily’s first quarter net profit up 4.5% to US$373.3 million Improved consumer confidence in realty market boosts Emaar Properties’ first quarter net profit by 55% Noor Bank sees first quarter net profit surge 174% to US$23.14 million United Arab Bank’s net profit up 34% in the first three months of 2014 Al-Madina for Finance & Investment Company reports losses for the second consecutive year Growth in Islamic financing income contributes to FGB’s 27% jump in first quarter net profit Qatar International Islamic Bank ends first quarter with 10.2% growth in net profit Masraf Al Rayan beats analyst estimates with 8% rise in first quarter net profit Al Khaleej Takaful reports higher net profit for the first three months at US$6.67 million Emirates Islamic’s total income for the first three months rises by 15.6% Meezan Bank’s reversal provisions against non-performing financing surge 257.1% while first quarter net income rises 12.5% Arab Banking Corporation announces a 27% increase in group net profit Jordan Islamic Bank posts net profit of US$14.67 million for the first quarter Pak-Qatar Takaful Group realizes combined turnover of US$55.62 million for the year 2013 Alizz Islamic Bank contains losses in the first quarter at US$3.81 million National Bank of Abu Dhabi reports 31% quarter-on-quarter growth in net profits for the first three months of 2014 Dubai Financial Market sees trading value for the first quarter surge 428.8% to US$29.94 billion TAKAFUL Amãna Takaful choses Ratnapura as the location for its 24th branch Securities and Exchange Commission of Pakistan to file compromise today with regards to Takaful firms’ constitutional petition withdrawal against Takaful Rules 2012 Syarikat Takaful Malaysia to make highest dividend payout for 2013 financial year XL Group establishes presence in Dubai to serve MENA market Shares distributed to Doha Insurance Company shareholders following capital increase AMMB Holdings to sell stakes in Takaful and insurance business to MetLife International Holdings for US$248.28 million The Committee of Insurance Irregularities and Disputes Settlement to look into lawsuit filed against INMAIA Real Estate & Tourism by SABB Takaful next month Parent company of Etiqa Insurance and Takaful eyeing to enter Filipino and Indonesian market ASSET MANAGEMENT RiverCrossing inaugurates US$125 million Islamic US real estate fund Permodalan Nasional’s returns on investments and dividends since 1981 reaches US$34.48 billion Rasmala Funds’ Shariah compliant funds register growth Azka Capital appears to have disappeared without a trace Al Hilal Bank expands Shariah compliant fund offerings with newly-launched Global Balanced Fund which invests in global equities and Sukuk Islamic private equity deals in the Halal sector are set to pick up over the next two years, according to CEO of Nur Global Strategies Swicorp looking to launch a series of Halal funds under the supervision of Shariyah Review Bureau RATINGS Strong government support leads RAM to maintain ‘AAA’ rating on Tenaga Nasional’s US$500 million Murabahah facility Bank of Tokyo-Mitsubishi UFJ Malaysia assigned ‘AA1/Stable/P1’ rating by RAM Islamic International Rating Agency maintains Burj Bank’s ‘A-/A2’ ratings based on the bank’s ability to effectively meet obligations LBS Bina’s Islamic facilities receive ‘MARC-1IS(fg)/AAAIS(fg)’ rating from MARC MARC withdraws ‘AAAIS’ rating on Midciti Sukuk’s Islamic debt program following early redemption Unexpected weakening of business performance leads RAM to downgrade outlook on Dar Al Arkan Real Estate Development Company’s ‘AA3/P1’ ratings Moody’s affirms ratings for Standard Chartered Bank Malaysia Bank of Khartoum receives reaffirmation on ‘AA-/A-1’ national scale credit ratings from Islamic International Rating Agency RAM maintains ‘AA2’ rating on Encorp Systembilt’s US$483.11 million Sukuk Murabahah MOVES OCBC Bank CEO to leave bank after six years of service Mohamad Alali joins XL Group’s Dubai reinsurance office as senior executive to build and manage treaty and facultative underwriting team Bursa Malaysia CEO confirmed for another three years HBL Bank appoints founding member of Noor Bank as head of retail for the Gulf region