New movement, new markets...

40 days to go Home Contact Us Subscribe Advertise Events Training REDmoneyGroup New movement, new markets... Islamic finance has a history of strength in certain areas – and we all know how popular asset classes such as Sukuk, real estate and commodities are with Shariah compliant investors. But as the industry matures and develops, it is gaining the capability to break new ground in fledgling markets that even the conventional industry has not yet dominated – and use its unique strengths to leverage opportunities for growth. Our cover story this week looks at just such a sector, with the increasing influence of Islamic finance in the alternative energy sector driving growth and innovation across global markets and reaching an audience far beyond the Islamic world. Our IFN reports continue this theme of expansion with an exploration of Brunei’s ambitions in the corporate debt market, the Canadian government’s new foray into Islamic financing and a round-up of the most recent sovereign Sukuk activity – as well as a look at the other side of the coin, with the limited attraction of Sukuk to meet the refinancing needs of EMEA firms. Our IFN Correspondent this week hails from Bahrain; while our case study covers the Al Baraka Turk Sukuk and our in-house analysis reports cover the troubled nation of Yemen and a look at the risk management element of Islamic finance. We also bring you a country feature on Yemen from Dr Moneer Hasan Saif of Invest Capital as well as a sector feature on risk management for Shariah compliant stocks from Adi Hanif Mohamed and Suhaib Torla of RHB Islamic Bank and a further feature on risk management in aviation financing from Charles Yeterian and Wesley Pollard of Novus Aviation Capital. Our asset management focus this week is provided by Alexandre Ferreira Lopes of Maalouf Ashford & Talbot who highlights the opportunities for Islamic finance in Brazil. Finally, in an action-packed issue, we also bring you a special report on Sukuk in Lebanon from Elias Chedid and Georgette Salamé of Chedid Law; and an additional feature on Islamic banking in Turkey from Ali Ceylan of Baspinar & Partners. As Ramadan draws to a close and the summer lull recedes, we hope all our readers have had a relaxing Eid holiday - and we look forward to an exciting new quarter as the market gears up for the start of a new season. Cover Story Rush for renewables: Islamic investors leverage new energy opportunities Rising investor interest in clean energy solutions and a growing urgency for renewable solutions across emerging Islamic markets are boosting opportunities for new players to enter the industry - and creating a market for Islamic investors to take advantage of the close fit between the ‘clean and green’ sector and the socially responsible foundations of Shariah compliant investing... (Click to read full report) Shariah Pronouncement: An Islamic financing company, which is especially engaged in real estate financing, has sought Shariah guidance (Click to read full report) IFN Reports: Canadian government foray into Islamic financing Sovereign Sukuk: Autumn roundup Brunei bid to build corporate debt boosts oil dependence Zakat and Islamic financing — a revolutionary new model? EMEA faces US$1 trillion in refinancing needs but Sukuk not seen as source to plug the gap IFN Country Correspondent: Bahrain: Forces of change in risk governance IFN Country Analysis: Islamic finance: A stepping stone for Yemen? IFN Sector Analysis: Islamic finance: Assessing the risks Special Reports: Sukuk: An opportunity for the development of Islamic finance in Lebanon Islamic banking is no more a ‘step child’ in Turkey Case Study: Albaraka Turk Sukuk issuance: A testament to its strength and standing (Click to read full report) Features: Yemen: Economic and political update As Yemen recovers from its political crisis of 2011 and growth returns to its economy, the country is renewing its focus on Islamic finance and seeking increased foreign investment to assist its ambitions. DR MONEER HASAN SAIF outlines the current situation... (Click to read full report) Keeping the seatbelt fastened: Financial exposure risk management in commercial aviation Using effective risk management techniques can help to avoid losses on aircraft financings provided by Islamic and conventional financiers, arising from airlines encountering economic turbulence. WESLEY POLLARD and CHARLES YETERIAN explore these opportunities... (Click to read full report) Stocks turning Shariah non-compliant: How investors can take control of Shariah risk management The default stance by investors in Malaysia today is to wait for the declassification of stocks to Shariah non-compliant, and only then, dispose of the securities. Opposing this attitude, ADI HANIF and SUHAIB TORLA suggest preventing the disease before it surfaces.Malaysia established its Shariah screening methodology in 1995 through the Securities Commission of Malaysia (SC)... (Click to read full report) Shariah compliant funds seek a safe haven in Brazil’s free trade zones With expansion plans charted beyond core market horizons in the Middle East and Malaysia, Islamic finance is setting its sights on finding a safe haven to dock in southern waters. Banco do Brasil, Latin America’s biggest bank by assets, is ready to welcome these explorers with the launch of Brazil’s first Shariah compliant equity fund. ALEXANDRE FERREIRA LOPES guides us through these new waters... (Click to read full report) DEALS Emirate of Sharjah appoints banks to manage inaugural Sukuk Societe Generale delays debut Sukuk issuance indefinitely, according to sources Sabah Credit Corporation to issue RM250 million (US$78.04 million) in Sukuk Kenya to make decision on reduction of local debt issuance in favor of Sukuk in a matter of weeks according to treasury secretary Bank Islam Brunei Darussalam looking to arrange up to BN$2 billion (US$1.58 billion)-worth of corporate Sukuk in the next 12 months Periodic payment distribution on MAF Sukuk to be made to Sukukholders on the 7th August 2014 Golden Asset International Finance to issue RM375 million (US$117.91 million) Sukuk today , according to IdealRatings posting Boustead Holdings taps Islamic market with fourth tranche of Sukuk Musharakah worth RM200 million (US$62.43 million) NEWS UK partners with the National Commission on Muslim Filipinos to establish regulatory for Islamic finance in the Philippines Nigerian government requests for the IDB to invest in the republic’s SMEs and developmental projects Kenya Commercial Bank to offer Islamic banking services in August Korea Investment & Securities eyes partnership with Islamic financial firms of Malaysia in bid to attract oil wealth Growth prospects for AMMB Holdings positive despite challenging economic environment CIMB Research downgrades Malaysian banks to underweight as landscape becomes more competitive with increasing margin pressure and new Islamic deposit ruling CIMB Group Holdings dismisses reports that it is seeking acquisitions in the Philippines at present moment Standard Chartered Saadiq discussing with several parties to establish Sukuk programs International Bank of Azerbaijan plans to launch Murabahah trade financing card as part of its strategy to increase Shariah compliant finance portfolio Kovsarbank issues shares worth ANZ38 million (US$48.42 million) in capitalization exercise Azerbaijan's Islamic banking legislation projected for implementation in 2015 IDB-financed hydropower plants go online in Tajikistan Mobile banking to move to the forefront in the next 10 years according to industry head Updates to course offerings including on Islamic finance at Arabic colleges in India on hold due to regulatory obstacles Aid from IDB misses Pakistan’s targeted projects in 2013 Export-Import Bank of Malaysia targets to expand assets to RM30 billion (US$9.33 billion) by 2018 as part of five-year growth strategy Maybank launches new program aiming to develop human capital in the financial services sector including Takaful and Islamic banking Privatization Commission selects consortium led by Dubai Islamic Bank to manage privatization exercise of Pakistan International Airlines IDB and government of Azerbaijan in discussion over US$224.4 million loan for road reconstruction project Deputy governor of Pakistani central bank confirms that dedicated Islamic finance sections will be established for all departments Dubai Islamic Bank finances Union Properties to strengthen its balance sheet ISFIN appoints De Gaulle Fleurance & Associés as exclusive French partner Providers having difficulty in finding a market for Shariah compliant home purchase plans in the UK Middle East investment in Europe grows by 25% in the first half of 2014, says Colliers International Sudanese finance minister urges Al-Baraka Islamic Bank to grow operations in Sudan Departing trade commissioner highlights developments in Islamic trade between Malaysia and the Philippines Islamic finance a closed market for Russia as it looks to Asia for funding opportunities Simmons & Simmons to develop business in the Middle East through the opening of new office by affiliate Hammad& Al-Mehdar Dallah Healthcare Holding Company sees stock price increase following announcement of further financing from Saudi British Bank Islamic banking sector set to overtake conventional market share in Kuwait, according to report Bank lending to the private sector sees 12.3% growth, according to SAMA 2014 to be a record-breaking year for primary Sukuk market, says KFHR The National Shipping Company of Saudi Arabia signs up for US$848 million Shariah compliant bridge facility IDB provides Iran with EUR2.92 million (US$392.04 million) in financing for water-related projects Real estate boom in Qatar not a threat to growth, according to Samba Financial Group Watania emerges as biggest gainer on the Dubai Financial Market following announcement of sale to Gulf investors Investment Dar open to legal action by creditors following ruling by Kuwait court Abu Dhabi Islamic Bank teams up with UAE Exchange to bring added convenience to customers in making bill payments Dubai World in talks to revise repayments of US$25 million, according to sources Al Hilal Bank makes AED1 million (US$272,175) donation to over 10 local charities during Ramadan Dubai Investments has no further plans for Sukuk as it aims for rating upgrade by the end of the year following 240% profit increase More than half of crisis support capital repaid by UAE banks, according to IHS Banking Risk Service Positive earnings for Oman’s MSM30 index overall despite a mixed showing for Shariah compliant stock Value of shares bought by foreign owners through swap arrangements on Tadawul increases in July following news of approval for direct foreign investment in 2015 Passporting regimes and convergence of Islamic finance and Halal sectors needed for further industry growth across borders, according to review ABC Islamic Bank marks second quarter with 43% net profit growth Barwa Bank Group charts 35% growth in net profit for the first six months of 2014 Bank Audi announces first half net profit of US$190 million Gulf International Bank reports dip in year-on-year profit for the first half of 2014 Blom Bank announces slight increase in profit for the first half of 2014 Kenya Commercial Bank sees first half pre-tax profit increase by 16% Aldar Properties second quarter net profits leap by 168% to AED506 million (US$137.72 million) Dubai Investments announces surge in net profit for the first six months of 2014 to AED805 million (US$219.11 million) Saudi Arabia’s second-largest pension fund takes a slight tumble in returns to 8.1% during 2013 Dar Al Takaful announces overall profit of AED2.5 million (US$680,439) for the first half Emaar Properties announces profit of AED1.73 billion (US$470.9 million) for first half of the year, with profit driven by Emaar Malls Group and hospitality and leisure business Investcorp posts 25% increase to US$131.2 million for 2013/2014 full year profits Bright Focus releases financial statement for 2013 fiscal year, reports increase in group profit TAKAFUL Deposit Insurance Corporation Malaysia to drive awareness regarding Malaysia’s national deposit insurance system to 57% by the end of 2014 Malaysia’sTakaful sector granted a stable outlook by RAM based on growth prospects and strong regulatory framework Malaysian Takaful Association contemplates rule waiver to speed up claim payments for MH17 EFU Insurance to establish Takaful window in Pakistan National Takaful Company to sell stake to Gulf investors AIA Public Takaful expands offering with new Shariah compliant investment-linked savings plan Malaysian Takaful Association commissions study to obtain clearer picture of gap in Takaful coverage among local population Tanzanian commissioner of insurance requests government to consider Takaful legislation Egyptian Takaful Life plans to distribute five new insurance products via bancaTakaful arrangements in the coming months Malaysian Takaful operators and general insurers incur 5% higher motor insurance claims during the first quarter Saudi Solidarity Takaful automates operations with ESKADENIA Software ASSET MANAGEMENT Labuan IBFC introduces Islamic wealth management services on the back of strong demand Rasmala Sukuk Fund registers a 4.22% year-to-date growth on the 28th July Wethaq Takaful Insurance selects Alpha Capital to manage soon-to-be-launched mutual fund RATINGS Despite decline in capital adequacy ratio Capital Intelligence assigns ‘BBB’ rating to Boubyan Bank based on solid asset quality Moody’s lifts Vietnam’s issuer and senior unsecured bond ratings by one notch to ‘B1’ Capital Intelligence affirms Oman at ‘A’ based on its prudent economic management MARC maintains ‘B-ID) rating for Talam Transform’s outstanding RM87.4 million (US$27.17 million) debt securities Moody’s upgrades Bank Negara Indonesia one notch and maintains deposit ratings Bank Dhofar receives ‘BBB+’ long-term issuer default rating from Fitch MOVES Head of Guernsey Finance to lead Channel Islands Securities Exchange as CEO early next year Standard Chartered appoints head of capital markets Noor Bank names Damian White as new treasurer