Innovation and communication

26 days to go Home Contact Us Subscribe Advertise Events Training REDmoneyGroup Innovation and communication Innovation is one of the most frequently used terms in our industry, but it does not always have to occur on an individual basis. This week we take a look at how entire regions are collaborating to push forward innovative new methods of encouraging Islamic investment and improving access for asset managers, in our cover story focusing on the growing success of Islamic funds in Asia. Continuing the theme of communication, in our IFN reports this week we also bring you an exploration of the exciting developments in mobile banking and its close relationship with Islamic finance. We take a look at the positive changes that the new Basel III guidance could bring to Islamic banks; as well as evaluating the new relationship between South Korea and Islamic finance; and updating you on the latest news on sovereign Sukuk in central Asia. Our analysis reports cover syndicated finance and France, while our IFN correspondents write to you from Morocco and the UAE. Our country features this week focus on France, and are contributed by Farmida Bi of Norton Rose; along with Jean-Philippe Besse of Parisian Real Estate and Merbouh Kader of University Paris-Dauphine. Paul Jarvis and Helen Munro of Dentons & Co explore the tricky role of Ijarah in syndicated finance for our sector feature; and Anthony Coleby of Said Al Shahry Law Office looks at the Takaful market in Oman one year after its introduction. We round up with a selection of special reports on the Islamic approach to money from Mughees Shaukat of INCEIF; and an update in the UK post-issuance from Samina Akram of Samak Consultants. Cover Story Islamic asset management: Asian sunrise Islamic assets under management have surged over the past year, along with a flurry of new fund openings and a renewed interest in innovation and expansion as the sector recovers from its 2012 contraction. With Asia looking to be one of the brightest hotspots for 2014, we take a look this week at some of the exciting new initiatives that could transform the face of fund management in the region... (Click to read full report) Shariah Pronouncement: Shariah guidance is sought as to whether it is permissible for an Islamic bank to accept funds from a conventional bank in order to invest the same along with its common investment pool (Click to read full report) IFN Reports: South Korea & Islamic finance: Strategy re-think required Sovereign Sukuk: Kyrgyzstan begins laying bricks Can Basel III help Islamic banks address some of their biggest challenges? Mobile money & Islamic finance: a winning combination IFN Country Correspondents: Morocco: The market education challenge for Islamic finance New standards for Sukuk IFN Country Analysis: A class of its own: Islamic finance in France IFN Sector Analysis: Islamic syndicated finance Special Reports: A brief on Islamic approach to money and finance UK: Delivering its promise Features: Islamic finance in France France announced its intention to become a western center for Islamic finance in 2008. Despite government support, including rumors of a possible sovereign Sukuk, Islamic finance in France has subsequently not expanded significantly, whereas the recent UK sovereign Sukuk issuance on the 2nd July 2014 has cemented the UK’s place as the principal western center for Islamic finance. FARMIDA BI asks — what is the outlook for France now?... (Click to read full report) France: Islamic finance opportunities in real estate Investors in the Middle East are expected to spend US$180 billion in commercial real estate markets outside the Middle East over the next 10 years, due to a mismatch between the spending power in the region and a lack of institutional real estate in domestic markets, according to research from property advisor CBRE; and France is one of the markets targeted. JEAN-PHILIPPE BESSE and MERBOUH KADER discuss whether this step could be an opportunity for France to progress further in Islamic finance... (Click to read full report) Syndicated Islamic financings — a focus on total loss Despite appearing similar to a conventional lease on the surface, Ijarah financings have some unique features and functions which offer both challenges and opportunities in terms of Shariah compliance. PAUL JARVIS and HELEN MUNRO explain their role in syndicated Islamic finance... (Click to read full report) Takaful Insurance and Oman: One year on Over a year after the sultanate of Oman introduced its Islamic finance framework and encompassing Takaful guidelines, the country has seen steady and encouraging growth in the industry with numerous firms entering the sector. ANTHONY COLEBY discusses its progress... (Click to read full report) DEALS Central Bank of Bahrain’s monthly Sukuk Ijarah oversubscribed by 315% Gulf Finance House plans US$200 million Sukuk to fund project development in Bahrain and Dubai Abu Dhabi National Energy Co confirms not issuing any more debts before 2017 at the earliest Ras Al Khaimah’s syndicated loan proposal requests cast doubts on earlier Sukuk plans Indonesian Hajj fund issues IDR2.86 trillion (US$244.53 million)-worth of Sukuk IILM to issue maiden six-month Sukuk next week Indonesian government kicks off roadshow for global dollar-denominated Sukuk DIFC Investments to issue Sukuk in September to restructure US$1 billion syndicated loan, according to sources Malaysia Airports Holdings to hold investor meeting for perpetual ringgit Sukuk on Monday NEWS BLME extends US$58.54 million lending stream to Renaissance Asset Finance to assist SMEs Faisal Islamic Bank to build new operational framework using SunGard’s enterprise risk management solutions IDB and Sudan ministry form technical mission to oversee discussions on future IDB social development initiatives in the country CIMB Group CEO urges shareholders to hold off making any decisions before terms of tripartite merger have been finalized National Bank of Pakistan to begin due diligence for potential acquisition of Shariah compliant Burj Bank Islamic finance regulators working to reduce influence and fees of Islamic scholars Shares of Bank Asya removed from Turkish bourse as ownership uncertainty continues to loom Subsidiary of Singaporean Islamic scholars association signs MoU with UAE Islamic finance consultancy to set up business in Singapore Islamic finance to provide a solution for Russia’s financing needs Meezan Bank receives green light from Competition Commission of Pakistan for its proposed merger with HSBC Bank Middle East Government to study spending activities of Bangladeshi Islamic banks for militant financing Maldives Islamic Bank signs MoU to build country’s Center for Holy Quran CIMB Islamic commits RM148,000 (US$46,592.7) to CSR programs in the state of Perlis Local authorities working towards establishing single common Halal standard for Japanese market Habib Metropolitan Bank introduces new Islamic banking brand at opening of new dedicated Shariah compliant branch in Korangi International Bank of Azerbaijan makes plans for standalone Islamic banking unit Indonesia’s five-year Islamic finance blueprint to be available by the end of the year for public consultation Gatehouse Bank considering new avenues to generate revenue including an online deposit product slated for December Opportunities in Africa for the growth of Sukuk, Takaful and Islamic funds according to report Turkey launches two new participation indexes Basel III could be a positive force for liquidity management and bank capitalization within Islamic finance, according to S&P Savola Group begins acquisition talks with Kuwait Food Co King of Malaysia to present the Royal Award for Islamic Finance on the 2nd September 2014 ISRA project to provide Islamic finance textbook in Arabic now complete Center for Islamic Finance at the University of Bolton introduces new postgraduate course Al Etihad Credit Bureau to open its doors in September Emirates procures US$425 million Shariah compliant financing facility to acquire two Airbus A380s aafaq and MENACORP to provide Islamic financing solutions to UAE market investors Abu Dhabi real estate market showing signs of stabilization after six months of escalating values, according to ADIB report Dubai Islamic Economy Development Center seeking nominations for Islamic Economy Award 2014 Khaleeji Commercial Bank launches new Shariah compliant Visa credit card Increasing demand pushes more Omani colleges to offer Islamic finance and banking programs Islamic banks should do more to encourage growth among entrepreneurs and SMEs according to industry head Emaar Properties yet to decide on when to float IPO of malls unit Bank Nizwa’s Murabahah auto finance product sales double during Ramadan Dubai Islamic Bank inaugurates training program in line with emiratization initiative MSCI increases weighting of Qatar Islamic Bank to 0.25 as a result of foreign ownership reform Sohar Islamic launches dedicated construction financing product RAKBANK shareholders approve acquisition of majority stake in RAK National Insurance Shariyah Review Bureau to audit SEDCO Capital real estate funds worth US$160 million Khaleeji Commercial Bank signs MoU with Naseej on Al Madina Al Shamaliya affordable housing project National Commercial Bank expands geographically with nine new QuickPay centers Arab Banking Corporation marks first half of 2014 with 22% net profit growth Increasing government pressure pushes Bank Asya’s second quarter net profit down by 81% Takaful Emarat Insurance continues positive earnings uptrend with AED1.08 million (US$293,984) net profit for the second quarter Gulf Finance House more than double half yearly profits at US$10.6 million Ithmaar Bank slashes net loss to US$340,000 during the second quarter from US$8.95 million a year ago Qatar Exchange-listed companies report combined net profit of QAR21.35 billion (US$5.85 billion) for the first half of 2014 Al-Madina For Finance & Investment registers bigger year-on-year losses for the quarter ended the 30th June 2014 TAKAFUL Committee of Insurance Irregularities to hear lawsuit filed by SABB Takaful against INMAIA Real Estate & Tourism on the 8th September Malaysian Takaful Association optimistic on the prospect of a mega Takaful player by 2018 Kenya Re-insurance Corporation plans to grow re-Takaful capacity following favorable market response National Bank of Egypt in talks to sell stake in Egyptian Life Takaful Company ASSET MANAGEMENT DCG Capital to debut new Islamic Asia equities fund mid-August Lotus Capital opens subscription for new Halal ETF Islamic funds look towards developed markets, says CEO of Nomura Islamic Asset Management RATINGS Gamuda’s Islamic debt programs reaffirmed at ‘AA3/P1’ by RAM Axis Reit Sukuk receives rating reaffirmation by RAM for its RM110 million (US$34.48 million) Sukuk Attijariwafa Bank receives ‘BBB’ rating from Capital Intelligence due to sound asset quality despite rise in non-performing loans Moody’s revises rating outlook on National Takaful Insurance Company from positive to stable S&P assigns Takaful Re ‘BBB’ rating driven by strong liquidity despite underperformance Fitch affirms AK BARS Bank at ‘BB-’ highlighting the bank’s significant market share S&P and Fitch assign Indonesia’s global Sukuk ratings in line with sovereign’s long-term foreign currency issuer default ratings MOVES Kuwait Finance House waiting for approval to officially hire Mazen Al Nahedh as new CEO Dr Senthilverl tenders resignation as director of Amana Takaful Robert Christensen to succeed Jonathan White as chairman of Jersey Finance Clyde & Co appoints Adil Hussain as Islamic finance partner