Crossing borders, connecting cultures

6 days to go Home Contact Us Subscribe Advertise Events Training REDmoneyGroup Crossing borders, connecting cultures This week, we look at the potential for connecting not only the Islamic finance industry to the wider global marketplace, but also uniting the disparate elements within the Islamic world itself. A market long held in isolation and with some uniquely different interpretations, Iran represents one of the most intriguing and idiosyncratic economies in the Muslim world. As IFN launches its inaugural IFN Iran Forum on the 10th June we take a look at the abundant opportunities- and unique obstacles – in this most fascinating of markets. Our IFN reports continue to explore new jurisdictions, with a look at the growing interest in Islamic finance in the Balkans; and the trend towards the capital markets in Oman. We also cover new competitors in the Sukuk race, take a look at the booming equities market and the growing success of GCC real estate; the fascinating potential for fashion in Islamic finance, and the murky world of Shariah compliant shadow banking. Our sector analysis explores the secondary market and our country analysis looks at Djibouti; while our case study covers the recent US$400 million issuance from Dar Al Arkan. Our IFN Correspondent this week comes from Egypt; while we also have a special report from Bijan Bidabad of Bank Melli on the complexities of compliant instruments in Iran. Dr Noor Suhaida Kasri of ISRA discusses Maysir in crude palm oil futures contracts; while Vanessa Abernethy of Baker Botts helps us decide on the most suitable market for an Islamic IPO. Sean Scott and Joanna Hossack of Harneys round off the issue with an asset management feature on the growth of Shariah compliant funds in the Cayman Islands. Cover Story Quantum of solitude: Spotlight on Iran Iran is a conundrum – a market cut off from the rest of the world, which in its enforced isolation has developed unique characteristics that provide both opportunities and obstacles to its ongoing development. As the country gradually opens up once again to overseas engagement, we take a fresh look at the idiosyncratic appeal of the world’s largest Islamic banking industry by assets – and the challenges it faces in its renewed engagement with the international markets. (Click to read full report) Shariah Pronouncement: Conventional banks are able to meet the requirement of customers to convert their non-funded facility into a funded facility by entering into the relevant arrangements at the relevant point of time (Click to read full report) IFN Reports: Sukuk race: Silence in Africa, sound in Southeast Asia GCC real estate: An opportune area of investment for QInvest A new boost for the Balkans Institutional investors and ETFs: The impetus for Islamic equities Islamic finance: Fashion’s new fad? Capital markets push for Oman Islamic shadow banking: The light at the end of the tunnel? IFN Country Correspondent: Egypt: Steady growth in the midst of a legislative vacuum IFN Country Analysis: Djibouti: A change of pace for Islamic finance in Djibouti? IFN Sector Analysis: Liquidity and secondary markets: Moving forward towards maturity? Special Reports: The complexities of compliance: Interpretative differences in Iranian debt instruments Deciding on the most suitable market for an IPO Maysir in the crude palm oil futures contract: A critical analysis Case Study: Saudi Arabia’s first US dollar real estate Sukuk in 2014: Dar Al Arkan (Click to read full report) Feature: Shariah compliant funds in the Cayman Islands Wealth in the Islamic world is accumulating, and investors are seeking competitive offshore locations in which to park their wealth and structure their vehicles. SEAN SCOTT and JOANNA HOSSACK explain the specific advantages of the Cayman Islands for Shariah compliant funds... (Click to read full report) DEALS Central Bank of Bahrain monthly Sukuk Salam issue oversubscribed by 282% Investment Corporation of Dubai's US$1 billion dual tranche issue oversubscribed by three times with 75% of demand from the Middle East Alam Maritim Resources issues Murabahah commercial papers worth RM40 million (US$12.45 million) Bank Islam Malaysia announces plans for a RM1 billion (US$310.95 million) Sukuk issuance to fund potential acquisition Fawaz Abdulaziz Alhokair’s shares rise 28bps on the back of Sukuk plans Ample Zone’s RM150 million (US$46.75 million) Sukuk Ijarah payable Indonesia auctions sovereign Sukuk on the 3rd June with an indicative target of IDR1.5 trillion (US$129.45 million) SP Setia to make first periodic distribution on RM700 million (US$218.15 million) Sukuk Musharakah on the 13th June Al Othaim Real Estate and Investment Co plans for debut local currency Sukuk of up to SAR1 billion (US$266.6 million) Etiqa Takaful concludes debut Tier 2 capital subordinated Sukuk Bank Negara Malaysia plans six Islamic issuances for the first half of June Tele-Flow Capital fully redeems RM10 million (US$3.11 million) junior Islamic medium-term note program NEWS IDB to aid Mozambique to develop a domestic cotton processing system Egypt to roll out first phase of income tax reforms, implementing 10% capital gains tax on stock market profits EFG Hermes positive about investment banking potential in sub-Saharan Africa based on revival of debt capital markets in the MENA region Otoritas Jasa Keuangan prepares a five-year road map for Islamic finance in Indonesia Islamic finance portfolio to contribute 20% to PMB Tijari’s annual revenue over the next five years, according to CEO The Indian Forum for Interest-Free Banking invests in microfinance pilot scheme Affin Holdings axes plans to invest in Bank Panin Syariah Dubai Chamber explores Iraqi opportunities in pursuit of Islamic economy Standard Chartered’s global head of Islamic banking highlights Singapore as nation with potential for Islamic wealth management Securities Commission Malaysia’s newly updated list of Shariah compliant securities takes effect Islamic Finance and Investment declares 10% dividend to its shareholders for 2013 SapuraKencana Petroleum’s exclusion from Securities Commission Malaysia’s list of Shariah compliant securities is only a matter of time, say analysts A new financial institution focusing on the provision of Shariah compliant financing to SMEs in the agricultural sector of Pakistan currently under formation A more comprehensive Sukuk framework is needed to boost Bangladesh’s fledgling Islamic money market, according to report Turkey looks to increase number of participation banks via the private sector and eyes US$1-2 billion in Sukuk this year Simply Sharia introduces Halal green energy investment scheme in partnership with Shariyah Review Bureau and Gardner Asset Management European Islamic Investment Bank seeks shareholder approval for GBP20 million (US$33.5 million) tender offer ICD contributes to EGP1.8 billion (US$252.04 million) Islamic financing facility for sugar production plant in Egypt BLME extends US$15 million Murabahah financing facility to Virgin Mobile Middle East & Africa QInvest engaging Turkish portfolio management company to advise on Shariah compliant asset management Italian fashion brand Roberto Cavelli approaches Investcorp for potential investment ISFIN makes Revera Consulting Group its exclusive partner in Belarus IDB organizes course on trade negotiation skills to assist OIC member countries in WTO-related matters EU lifts sanctions from Syria International Islamic Bank due to lack of evidence linking it to the regime of Syrian president Bashar Al Assad Sukuk still in demand as Ramadan approaches, according to BLME’s director of fixed income The ICD and Saudi-Egyptian Business Council sign an MoU marking cooperation in private sector investment in Egypt Australian academician highlights Islamic finance as key area to explore in order to boost trade ties with the ASEAN region The IDB and World Bank agree to join forces to enhance the Islamic banking system Wide gap in SME financing in the African markets provides robust opportunities for Islamic finance players, says Malaysian central bank deputy governor Riyad Bank shareholders approve plan for capital increase via bonus shares Al Baraka Bank launches promotional campaign in collaboration with Harley-Davidson Emirates Islamic announces first graduates of Al Mustaqbal training program Former GFH Capital deputy CEO charged with embezzlement of AED23.7 million (US$6.45 million) Qatar’s emir instructs listed companies instructed to raise their foreign ownership limit to 49% SHUAA Capital receives regulator approval for capital decrease to SAR75 million (US$20 million) Central Bank of Bahrain announces January 2015 as proposed date for Basel III roll out National Bank of Abu Dhabi and Cass Business School, City University of London sign agreement on student tuition fees New law introduces a dispute settlement authority to the Dubai International Financial Center Emaar Properties takes advantage of buoyant markets to restructure debt, replaces existing facility with new US$1.5 billion Islamic financing Emirates NBD inaugurates new branch in Abu Dhabi’s Deerfields mall Investrade contracts Shariyah Review Bureau to design Shariah Supervisory Board delivery model Total value of Sukuk listed in Dubai surpasses US$21 billion dollars following listing of US$700 million Sukuk from Investment Corporation of Dubai Saudi International Petrochemical Company’s Sukukholders agree to amend Sukuk terms allowing the firm to extend loans and credits to selected entities Al Hilal Banks enhances internet banking platform for corporate clients through the implementation of Infosys Financle e-banking solution Emaar Properties confirms Shariah compliant financing deal of US$1.5 billion for subsidiary Emaar Malls Group ahead of IPO Growth of Islamic banking set to outpace growth of conventional banking according to chairman of Standard Chartered Saadiq Bahrain’s business community opposes move by Tamkeen to invest in Shariah compliant stocks Emirates Islamic launches low-rate personal finance sale for a limited time Kuwait Finance House expands consumer product solutions with new campaign Mashreq introduces bundled benefit for Islamic and conventional personal financing facilities Bank Dhofar submits preliminary share swap ratio for proposed merger with Bank Sohar Saudi British Bank partners with Visa to offer debit cards to new and existing clients Kuwait Finance House strengthens presence in Bahrain by opening 10th branch QInvest seeking real estate financing opportunities in Qatar, Europe and the US Bank Albilad in the process of upgrading technological infrastructure for Islamic treasury operations RAKBANK identified as the most followed UAE bank on Twitter for the first quarter of 2014 Friends of Cancer Patients Society launches Zakat campaign to raise funds for financially disadvantaged Muslim cancer patients Mixed first quarter results for Al-Madina for Finance & Investment Company BMI Bank reports a loss of BHD4.3 million (US$11.34 million) for the first quarter of 2014 International Investment Bank posts full year net profit of over US$6 million for 2013 Faisal Islamic Bank concludes first quarter with lower net profit Maybank realizes 3.8% increase in first quarter profit backed by strong growth in Islamic banking among others TAKAFUL Conventional insurers upbeat on the potential of Pakistan’s Takaful landscape Takaful Insurance Africa to launch operations in Somalia in the next two months, with eyes on Tanzania and Uganda IFSB and IRTI mid-term review casts shadows on Islamic insurance industry Chartered Insurance Institute of Nigeria deliberates incorporation of Takaful into its training curriculum ASSET MANAGEMENT SBI Mutual Fund seeking regulatory approval to offer Shariah compliant equity fund Amanah Trust Management opens Shariah compliant international equities fund to the public, receives US$500,000 within a day Largest Latin American bank by assets plans to launch Brazil’s first Shariah compliant equity fund this month Funds to move investments into other markets as means to cut exposure in the UAE and Qatar following MSCI update, according to survey Pacific Mutual launches its first Malaysian mixed asset Shariah compliant fund Public Mutual declares distributions for its Shariah compliant funds RATINGS Capital Intelligence assigns National Bank of Bahrain ‘A’ rating based on strong capital adequacy ratio, sound liquidity and solid profitability metrics Moody’s maintains stable outlook on Malaysian banking system on the back of expected stable operating environment Moody’s affords ‘Ba3’ rating to International Bank of Azerbaijan’s foreign currency senior unsecured debt RAM maintains ‘AA1’ rating on TAQA’s Murabahah program based on strong support from government Fitch affirms Ras Al Khaimah at ‘A’ with a stable outlook based on the emirate’s low debt and strong fiscal surplus Al Rajhi Banking & Investment Corporation receives ‘AA-’ rating from Capital Intelligence Emaar Mall Group receives provisional rating of ‘Baa2’ from Moody’s ahead of IPO Moody’s affirms ‘Baa2’ rating for Qatar Islamic Insurance Company with a positive outlook Outlook on Qatar’s banking system remains stable according to new report by Moody’s MOVES Abu Dhabi Investment Authority names former chief economist of World Bank as head of research National Bonds Corporation appoints new chief commercial officer AAOIFI seeks new secretary-general following resignation of Khaled Al Fakih Bank Sohar appoints H Gopala Krishnan as new head of risk management Charles Russell makes key Islamic finance appointments Mohamed Azmeer takes over as CEO of Amãna Bank following the resignation of Faizal Salieh