Leading the legal field…

49 days to go Home Contact Us Subscribe Advertise Events Training REDmoneyGroup Leading the legal field… It’s that time of year again when we celebrate the cream of the Islamic legal crop: highlighting the achievements and accolades of the elite in the legal experts that support the ongoing growth and development of the Islamic financial industry. Our cover story this week brings you the results of the 2014 Islamic Law Awards: premiering a new judging process which we believe provides the most comprehensive and conclusive round-up of the cutting edge in Shariah compliant legal activity this year.. Continuing the theme of innovation and advancement, our IFN reports this week explore the exciting new UAE mission to Mars and the potential for Islamic investment in the fascinating field of space exploration; along with a more down-to-earth look at the potential effects of Tadawul’s impending liberalization; and a round-up of upcoming sovereign Sukuk issuances. Our case study covers the recent Al Hilal Sukuk while our weekly in-house analyses cover the topics of Turkey and corporate governance. We have a wide range of contributions from an impressive array of experts this week: including a country feature from by Pelin Baysal and Ilgaz Önder of Mehmet Gun & Partners on developments in Turkey; as well as sector features from Mujtaba Khalid of UKIFC and Hussein Azmy from Hegazy & Associates looking at corporate governance in the UK and Egypt, respectively. Our Takaful feature is brought to you by Farouk Abdullah Alwyni of Alwyni International Capital and discusses the potential of Islamic insurance in Indonesia. We also have special reports from Syamsul Azuan Ahmed Fauzi of Anfaal Capital covering the impetus needed to expand the cross-border Islamic financial market; as well as from Samir Alamad of Islamic Bank of Britain on the UK's retail Islamic banking sector. As we celebrate the best and brightest in our industry once again, we cannot help but appreciate the importance of mutual praise and recognition: in order to foster an atmosphere of excellence which will encourage further development and participation. We wish all our readers a very happy Eid Mubarak, wherever you may be, and we look forward to celebrating the holiday together in the same spirit of honor and attribution. Cover Story IFN Law Awards 2014: Weighing the scales The results are in, the word is out: and once again the industry-leading IFN Law Awards cut a cross-section through the elite of Islamic finance law to bring you the foremost legal leaders in global, regional and sectoral expertise for 2013-14. Read on to discover who was the best, where came the rest – and why this year Islamic Finance news has put a whole new model to the test... (Click to read full report) IFN Reports: UAE’s mission to Mars Tadawul’s liberalization: A gateway to untapped opportunities Sovereign Sukuk market: Gears still moving IFN Country Analysis: Turkey — in a pinch IFN Sector Analysis: Walking the line: Shariah compliant corporate governance Special Reports: Four major impetuses in expanding cross-border Islamic financial market UK: On the right track Case Study: Al Hilal Bank’s sophomore Sukuk issuance Abu Dhabi-based Al Hilal Bank came to the market for the second time with a US$500 million perpetual additional Tier 1 Sukuk issuance on the 24th June 2014. Priced at par with a profit rate of 5.5%, the Sukuk represented the lowest coupon ever achieved by any bank for a US dollar Tier 1 issuance outside of the US since 2008... (Click to read full report) Features: Islamic finance in Turkey Islamic banking is currently dominated by Iran, Saudi Arabia and Malaysia, but offers significant promise in Turkey given the country’s strong financial structure and distinctive potential. In 2013 the Islamic finance market of Turkey grew by 36.7% surpassing the 25.5% growth rate recorded by conventional banks... (Click to read full report) Islamic finance corporate governance in Egypt — less than sophisticated The corporate governance policies and practices of Islamic financial institutions, while similar in several aspects to those implemented in conventional financial institutions, include certain elements that correspond to and reflect the special characteristics of the products they offer and the image of such institutions in the market... (Click to read full report) Corporate governance in the UK Islamic finance industry Despite anchoring itself in the Islamic finance space, the UK has yet to see its Shariah compliant retail banking sector take off, prompting for a policy re-think and governance framework restructuring. MUJTABA KHALID analyzes the current structures in place... (Click to read full report) Takaful in Indonesia: Room for growth Over the last five years, the market share of the Indonesian Islamic insurance industry has increased steadily to 4.2% in 2012 from 2.13% in 2008, according to the latest available official data... (Click to read full report) DEALS IDB issues privately-placed five-year US$1 billion Sukuk Principal partial redemption on Ample Zone’s RM150 million (US$47.25 million) Sukuk Ijarah payable Danainfra Nasional raises RM2.5 billion (US$788.48 million) in Sukuk to fund MRT project Engro Corporation declares highest rate of return for its listed Sukuk in a bid to attract individual retail investors Government of Pakistan looking to finalize list of arrangers for upcoming US$1 billion Sukuk within the week NEWS ISFIN selects Simeza, Sangwa & Associates as exclusive Zambian partner Pakistan’s Habib Bank joins Sri Lankan Islamic finance fraternity with the opening of its Shariah compliant banking operations Askari Bank signs MoU with Pakistan Telecommunication Company to provide the latter’s employees with Islamic financing facilities at special rates Bank of Khyber launches Islamic microfinance service in collaboration with provincial government Islamic Bank of Britain to offer premium financing service for GCC investors in UK real estate Kuwait Finance House supports National Union of Kuwait Students – UK and Ireland as part of the bank’s CSR push World Bank supports project with US$250 million loan to improve access to longer-term Islamic financing in Turkey Emerging markets to capture more proportionate share of global capital markets by 2030 driven by rising growth in capital-raising activities, according to study NASDAQ Dubai issues trading and settlement arrangements for Eid Al Fitr Reserve Bank of India begins review process of republic's Islamic banking regulations Sohar Islamic organizes celebration for children in collaboration with Oman Association for the Disabled Saudi Arabia to open stock market to foreign investors with possible upgrade to emerging market status in the horizon Umm Al Qura Cement Company procures SAR618.87 million (US$165 million) Islamic financing facility from Saudi British Bank Gulf Finance House pursues case following halt on execution of Bahrain Chamber for Disputes Resolution verdict against former chairman Real estate loans approved by Saudi banks in the first quarter of 2014 totals SAR123.4 billion (US$32.98 billion), according to SAMA Saudi Ministry of Social Affairs issues warning against Zakat donations through social networking sites Saudi British Bank signs financing agreement with DHHC for SAR955.5 million (US$254.74 million) for the construction of medical facilities RAKBANK in talks to acquire majority stake in Ras Al Khaimah National Insurance Co CIMB eyes acquisition of Philippines’ Al-Amanah Bank Abu Dhabi National Energy Co pulls out of US$1.6 billion India hydropower plant deal, according to report First half results for Dubai’s Shariah banks prompt analysts to reassess predictions on 2014 full year profits Qatar Islamic Bank introduces summer campaign on foreign purchases in collaboration with Visa Jordan completes Islamic finance legislative framework, clearing the way for public and private Sukuk issuances National Bank of Bahrain sees net profit for the first half of the year jump by 7.4% to BHD28.74 million (US$75.37 million) Alizz Islamic Bank reports net loss for second consecutive quarter despite year-on-year increase in total assets First six months of the year nets FGB a 21% increase in profit Masraf Al Rayan posts profit of QAR904 million (US$248.12 million) for the first half of the year Sadara Basic Services Company announces 2014 second quarter results Salama Cooperative Insurance Co announces total accumulated losses of SAR71.1 million (US$18.95 million) despite profit for the second quarter Saudi RE for Cooperative Reinsurance Company reports a net loss of SAR7.21 million (US$1.92 million) due to a 134% in claims Solidarity Saudi Takaful Co manages to reduce net loss in the second quarter by 94.92% Emirates REIT announces net profit hike of 194% for the first half of 2014 Allied Cooperative Insurance Group marks second quarter with 89.11% surge in net profit RAKBANK’s six-month figures see increase of Islamic deposits by AED599 million (US$163.04 million) National Bank of Abu Dhabi charts 17.5% growth in net profit for the first half Al Khaleej Takaful’s net profit for the first half of 2014 up 68.13% Takaful International Company records lower second quarter profit Union National Bank sees net profit increase by 5.6% in the second quarter Finance House announces 8.4% increase in first half net profit boosted by 13.6% growth in Islamic financing and investing assets Mashreq’s net profit surges 45% in the second quarter Al Madina Takaful records 39% decline in half-yearly net profit Takaful contributes approximately 25% of Niger Insurance's gross premium income in 2013 Ahlibank sees net profit jump 16.3%, reaching OMR7 million (US$18.12 million) for the second quarter Warba Bank achieves net profit of KWD43,000 (US$151,976) for the second quarter of the year Qatar Islamic Insurance Company discloses higher net profit for the first six months at QAR48.61 million (US$13.34 million) Majid Al Futtaim Holding realizes group revenue of AED12.8 billion (US$3.48 billion) for first half Emirates Islamic posts net profit hike of 104% for the first half of 2014 Abu Dhabi National Takaful reveals AED15 million (US$4.08 million) profit for the first half Al-Ijarah Holding Company sees half-yearly net profit drop by more than half Barwa Real Estate achieves profit for the first half of 2014 despite second quarter loss of QAR42.9 million (US$11.77 million) Dubai Islamic Bank records 59.6% surge in second quarter net profit TAKAFUL Malaysian Takaful sector could reach half the size of conventional industry by 2018, says RAM Securities and Exchange Commission of Pakistan issues order against Takaful company for violation of regulatory provisions Takaful firms command approximately 22% of total gross premiums last year as gross contributions charts 7% growth Takaful Brunei Darussalam donates goods as part of CSR drive during Ramadan ASSET MANAGEMENT Financial regulator CSSF approves requests of 215 firms to be authorized as alternative investment fund managers Lotus Capital to launch Halal exchange traded fund based on the NSE Lotus Islamic Index Saudi government opening up Public Investment Fund to local and foreign investment through partnerships with private and public entities RATINGS CJ Capital’s RM114 million (US$34.91 million) Sukuk Murabahah receives ‘AAA’ rating reaffirmation from RAM Moody’s assess Sri Lanka’s credit status and indicates the country has strong growth potential Capital Intelligence maintains ‘BBB’ rating on Sharjah Islamic Bank RAM downgrades growth forecast for Kazakhstan from 6% to 5% Nur Power’s Sukuk Mudarabah tranches receive ‘AAA’ rating from RAM supported by Maybank Islamic and Danajamin Nasional MOVES Qatar International Islamic Bank names new chief operating officer Previous appointment of Michael Warren Kidd as chief financial officer for European Islamic Investment Bank falls through