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1 day to go Home Contact Us Subscribe Advertise Events Training REDmoneyGroup Hedging bets... The growth and potential of the Islamic finance industry is often cited, but not always quantified. This week, we take a look at the numbers behind the claims, with a comprehensive analysis of the Shariah compliant funds industry for the first half of 2014. We also bring you inside information from the breath-taking sovereign Sukuk race, with our sources providing new details that suggest the race could be even closer than we anticipated. Check out our Sukuk race update for exclusive insights on the upcoming issuances. Our IFN reports cover the instability in the Gulf region, the investment potential in Egypt, the ambitions of Societe Generale in Southeast Asia, the troubles of Turkey and the new entries onto the London asset management scene. Our country analysis covers Qatar while our sector focus looks at Islamic private equity. Cheng Hong Yap of Eurekahedge provides a special report on Islamic funds, while we also bring you a correspondent update on issues in Pakistan and a sector feature on the Takaful industry. Dy Hylmun Izhar of IRTI provides a reflection on the mid-term Review of the 10-year framework from IRTI and IFSB; while Amjad Hussein of K&L Gates gives us a country feature on Qatar and M Mahbubi Ali and Lokmanulhakim Hussain of ISRA look at challenges in Shariah compliant retirement annuity plans for Takaful. We finish up with a case study on Emaar Mall Group’s US$750 million Sukuk issuance. This week IFN are in Luxembourg for the IFN Europe Forum 2014 and we look forward to bringing you some exciting updates from the conference in the coming days. Cover Story New laws, new shores: Are Islamic funds finally growing up? Shariah compliant funds had a choppy year in 2013, but as their offering strengthens and the product base expands, the Islamic asset management industry is this year seeing a seismic shift in investor attitudes - which could be the final push needed to drive the funds sector into a real growth curve. (Click to read full report) Shariah Pronouncement: An Islamic bank has approved a Mudarabah facility for a customer based on which the Islamic bank will provide funds (Click to read full report) IFN Reports: Sukuk race: The last hurdle Egypt turns its attention outwards once again Iraq instability: Blessing or curse for Gulf markets? Arabesque — a new entry to London’s Islamic asset management landscape SocGen seeking to expand in Southeast Asia with debut Sukuk issuance Turkey: Tough position IFN Country Correspondent: Government of Pakistan plans to issue another Sukuk Ijarah IFN Sector Correspondent: Skill mismatch: A talent development issue within the Takaful industry IFN Country Analysis: Islamic finance in Qatar: Building for the future IFN Sector Analysis: Islamic private equity and venture capital: A land of opportunity Special Report: Reflections on the mid-term review of the 10-Year Framework and Strategies for the Islamic financial services industry: A joint initiative by IRTI and IFSB Case Study: Debut Sukuk: Emaar Malls Group (Click to read full report) Features: Qatar: Dedication to Islamic banking There are few economies that have invested in and promoted their Islamic banking sector as much as Qatar has over the recent years... (Click to read full report) Challenges in developing Shariah compliant retirement annuity plan for Takaful The concept of Takaful is established on the notion of mutual assistance (Ta’awun), mutual security, responsibility (Tadhamun) and mutual protection and assurance which are incorporated into the concept of donation (Tabarru’)... (Click to read full report) A review on the performance of Islamic Funds The primary goal of Islamic funds is to engage in ‘ethical investing’ into products and companies that are compliant with Islamic guidelines, covering the investment needs of the largely ignored Muslim population... (Click to read full report) DEALS Central Bank of Bahrain’s monthly Sukuk Ijarah issuance oversubscribed by 410% State Bank of Pakistan issues investor guidelines on upcoming GoP Sukuk Ijarah Kuveyt Turk looks to price benchmark-sized five-year Sukuk Banque Saudi Fransi completes US$533.14 million Sukuk with proceeds set to boost the bank’s Tier 2 capital Bank Internasional Indonesia to issue IDR300 billion (US$25.41 million) Sukuk this week to finance domestic lending Participation bank Kuveyt Turk launches US$500 million Sukuk, according to reports Sukuk plans for Luxembourg in motion once again as revised bill makes its way to the Council of State Government of Pakistan reaches Sukuk Ijarah auction target, raises PKR49.54 billion (US$498.43 million) Pricing for Al Hilal Bank Sukuk expected Tuesday according to sources Albaraka Turk issues pricing for planned dollar-denominated benchmark Sukuk according to reports Salam-based structure for short-term Islamic instruments approved by State Bank of Pakistan according to industry player National Petrochemical Co completes its SAR1.2 billion (US$319.89 million) debut Sukuk issuance NEWS Oromia Cooperative International Bank launches interest-free pilgrimage savings account for Ethiopian Muslims Maybank Islamic introduces new Shariah compliant credit card to the Malaysian market Lembaga Tabung Haji introduces non-banking Islamic debit card in collaboration with MasterCard Hong Kong affirms commitment to become a regional player in the Islamic capital market Tourism industry, hotels and spa services to receive Shariah compliance guidelines from Malaysia Islamic Development Department Unified banking law could be presented to the Kazakhstan government by the middle of 2015 according to IDB executive director Development of Islamic finance highlighted as a campaign promise by Prabowo Subianto ahead of Indonesia’s election Sitara Chemicals signs up for PKR2 billion (US$20.14 billion) diminishing Musharakah facility Islamic banks on course to meet agri-credit disbursement targets in Pakistan OJK amends Islamic financial institution reserve requirement regulation to meet IFSB-15 standards European Islamic Investment Bank to propose capital reduction plan next month in a bid to enhance shareholder returns Islamic Corporation for the Insurance of Investment and Export Credit to hold seminar next week in conjunction with 20th anniversary celebration The IDB honors Ghana Islamic Microfinance project with Women’s for Development Award The Association of National Development Finance Institutions accepts six new members IDB annual board of governors meeting to be held this week Quantum Investment Bank and Palma Capital launch new Islamic aircraft leasing fund with Airbus Qatar Islamic Bank signs partnership with Alfardan Automobiles to provide Shariah compliant auto financing Saudi Arabia to maintain management strategy for foreign reserves worth US$730 billion First Energy Bank buys shares in Al Salam Bank–Bahrain for US$6.41 million Khaleeji Commercial Bank introduces Shariah compliant banking product which combines features of current account and Mudarabah investment account Bid for a 20% stake in EFG Hermes approved by Egypt’s financial regulator Saudi Electricity Co agrees 15-year US$13.17 billion interest-free loan with Saudi Arabia’s Ministry of Finance Abraaj Group submits tender for purchase of Cairo Medical Center ADX and NBAD collaborate to facilitate listing and trading of Sukuk and bonds Barwa Real Estate Company enters deal with Labregah Real Estate Company over sale of Barwa City Dubai Smart Government initiates electronic linkage with Dubai Islamic Bank to automate financial processes Egypt targeting US$10 billion in foreign direct investment for the coming fiscal year Muscat Securities Market launches new Shariah index sample Central bank to consider more flexibility in Qatar government Sukuk issuances depending on market conditions according to QCB governor Islamic finance identified as possible area of collaboration between businesses in Dubai and Malta ICD plans to establish SME funds with local partners for investment in small and medium enterprises according to CEO Qatar Islamic Bank opens new branch in Umm Salal City National Shipping Co of Saudi Arabia agrees 12 month Shariah compliant bridging loan worth US$847.72 million to finance purchase of Saudi Aramco marine unit New Shariah compliant products to be introduced by the Egyptian National Post Authority Banks in Qatar register highest loan book growth in the GCC for the first quarter of the year according to report IDB aims to become a world class development bank by 2020 Islamic Finance news holds the latest three events in its successful IFN/DIFC roundtable series Maybank Islamic hopeful for double digit growth of 12% for 2014 amid decline in first quarter pre-tax profit Public Islamic Bank registers growth in first quarter profit EXIM Bank reports 189% increase in Islamic banking assets for 2013 Jordan Islamic Bank posts slight increase in first quarter profit at US$14.71 million TAKAFUL Arab Orient Takaful Insurance opens new branch in Masr El Gedida Auditor-General highlights good performance of Perak’s poverty eradication programs which includes a Takaful Tabarru’ protection scheme Amãna Takaful extends partnership with Sri Lanka Auto-sports Drivers’ Association for the second consecutive year New guidelines for Brunei’s Takaful and insurance industry to come into effect on the 1st July 2014 Nigeria actively working to develop its Takaful industry in the face of provider and consumer interest according to commissioner for insurance Egyptian Takaful Insurance plans to boost investment for the upcoming fiscal year to EGP410 million (US$57.2 million) MAA Group to utilize Takaful business to lift PN17 status, negating need for purchase of additional company Takaful Oman Insurance Company launches officially ASSET MANAGEMENT Azzad Asset Management selects Federated Investment Management Company to sub-advise US’ pioneering Halal fixed income mutual fund Arabesque receives regulatory approval to begin operations as part of UK’s Islamic finance community Global Investment House Saudia’s Shariah compliant Al Noor fund outperforms benchmark with 27.5% return Saudi Arabia capital market sees more activity buoyed by local demand and economic stability RATINGS Capital Intelligence affirms ‘BBB’ rating for Bank Islam Malaysia based on improving asset quality and sound capital adequacy ratio Fitch assigns ‘A+’ rating to Boubyan Bank based on high probability for support from the Kuwait authorities RAM maintains ratings on MRCB Southern Link’s Islamic facilities Turkish asset leasing company’s proposed US$500 million Sukuk receives ‘BB’ preliminary rating from S&P IDB’s ‘AAA’ rating affirmed by Fitch due to status as one of the strongest-capitalized multilateral development banks RAM assigns ‘P1’ rating to Cagamas’ proposed US$20 billion Islamic and conventional CP programs Capital Intelligence assigns ‘BB’ financial strength rating to Albaraka Islamic Bank AM Best affords ratings to Solidarity General Takaful Sepangar Bay Power Corporation’s RM575 million (US$178.3 million) Sukuk Murabahah receives ‘AA1’ rating from RAM Fitch affirms Bahrain at ‘BBB’ with a stable outlook with the expectation of the country’s non-oil economy driving activity in the medium term Fitch affirms Kuwait at ‘AA’ with the country’s exceptionally strong sovereign balance sheet acting as support for the ratings MOVES Zaid Al Farisi rejoins King & Spalding as Islamic finance partner Agus Sudiarto named president director of Bank Syariah Mandiri Islamic Bank of Britain names Sultan Choudhury in newly created role of CEO and director National Bank of Abu Dhabi chief investment officer resigns according to sources Securities Commission Malaysia appoints new chairman for the Federation of Investment Managers Malaysia