The industry has spoken...

33 days to go Home Contact Us Subscribe Advertise Events Training REDmoneyGroup The industry has spoken... ...The votes have been counted, and the winners chosen. Yes, our cover story this week features the highly-anticipated results of the 2014 IFN Service Providers Poll and this year, the 10th anniversary of the survey, we celebrate our biggest and brightest yet. With a record number of votes and an exceptional range of nominees, we bring you the very best in show as defined by their peers, experts and industry participants across the industry. Elected by our readers, for our readers, the IFN Service Providers Poll honors the vital players who form the very backbone of our industry. Our IFN reports this week take a look at the growing Gulf interest in Indonesia and the limitations that its new foreign ownership laws could bring; along with an exploration of the Islamic investment opportunities in Nigeria; a focus on the factors behind a growing move back to commodity Murabahah transactions; and our weekly sovereign Sukuk round-up. Our case study analyzes the recent Senegal sovereign Sukuk, while our in-house analysis reports cover India and M&A; and our IFN Correspondent reports bring you a round-up of events in Sri Lanka, Nigeria and the Islamic leasing sector. Special reports come from Joanna Hossack of Harneys, who looks at the advantages of listing Sukuk in the Cayman Islands; as well as a comprehensive evaluation of Shariah as the governing law in Islamic finance contracts in the UK by Abdullah Abdul Rahman of Cheang & Ariff. Our country focus this week is India, and we have features contributed by Mohammed Asif of JaZaa Financial Advisory as well as Saif Ahmed of Infinity Consultants. We also concentrate on the M&A sector, with a look at risk management in M&A from R Lakshmanan of Pyramid Specialized Management Consulting; and M&A in Takaful from Mujtaba Khalid of UKIFC. We would like to thank all our readers for voting in the 2014 Poll; and congratulations to all the winners. We look forward to another exceptional year in 2015. Cover Story IFN Service Providers Poll 2014: Building on victory The results are in, and once again Islamic Finance news leverages its unrivalled industry network to bring you the best in sector provider performance over the past 12 months: as voted for by a comprehensive cross-section of peers, experts and industry leaders from across the globe. Throughout the month of July, IFN conducted its 10th annual IFN Service Providers Poll amongst its readers. An exceptional 6,070 votes were cast, with 1,466 being eliminated due to irregularities: leaving a record-breaking 4,606 votes counting towards the final results... (Click to read full report) Shariah Pronouncement: A customer previously obtained an Ijarah facility (financial lease) from an Islamic bank in order to procure a building (Click to read full report) IFN Reports: Increasing interest rates push the investment wheel back round to Murabahah Growing Gulf interest in Indonesian banking sector National campaign drives Islamic investment market in Nigeria Sovereign Sukuk market: Of new players and roadshows Eiger Trading launches pioneering commodity Murabahah trading platform in partnership with Gulf International Bank IFN Country Correspondents: PENCOM targets ethical investment Sri Lanka: Positive growth prospects IFN Sector Correspondent: Shariah compliant structures in the mortgage market IFN Country Analysis: India: Shifting Islamic finance landscape IFN Sector Analysis: Islamic M&A on the rise Special Reports: Listing Sukuk in the Cayman Islands Shariah as the governing law in Islamic finance contracts in the UK: The impact of Rome I Regulation and the position in arbitration Case Study: Senegal Sukuk: A strong statement for Islamic finance in WAEMU (Click to read full report) Features: India: The gradual rise of Islamic banking It is been long debated whether India should allow Islamic banking or not, and the attempts made by several Islamic institutions and individuals to seek recognition for the model have not succeeded due to regulatory constraints and opposition from political parties. MOHAMMAD ASIF runs us through the Islamic finance developments in India... (Click to read full report) India: Islamic banking and finance review India has rightly been classified as the last remaining major frontier for the Islamic banking industry to conquer. SAIF AHMED looks at what is holding it back, and what could drive it forward, outlining a roadmap for development that conforms to the unique regulatory, political and social environments of the world’s largest Muslim-minority nation... (Click to read full report) Risk management in Islamic banking: M&A As M&A becomes increasingly complex due to cross-border deals, marriage/combination between conventional and Islamic, tri-party merger and such, risk elements also increase. R LAKSHMANAN takes us through these issues... (Click to read full report) Takaful M&A: A challenge awaiting acceptance The M&A industry can be more complex than it first appears, and is affected by a complex web of factors across the financial markets. MUJTABA KHALID provides us with an outline of the sector, before taking us through the opportunities and challenges currently available in the Shariah compliant space... (Click to read full report) DEALS Development Bank of Kazakhstan makes premium payment on RM240 million (US$75.1 million) Sukuk Murabahah Malta considering sovereign Sukuk to ascertain market reaction, according to reports Hong Kong, Indonesia and Pakistan expected to issue paper worth a combined US$3.5 billion before September Sukuk returns to remain steady despite geopolitical uncertainty, according to RHB Bank Luxembourg to begin Sukuk roadshow at the end of September Government of Sharjah expected to issue US$500 million Sukuk on the 1st September, according to IdealRatings Indonesian government holds Sukuk auction to raise funds for State Budget 2014 FGB has no immediate plans to issue Sukuk, says head of treasury and global markets group NEWS Deputy prime minister expresses support for Ziraat Bank in acquiring Bank Asya International Bank of Azerbaijan signs Shariah supervisory agreement with Shariyah Review Bureau Bank Indonesia and OJK in talks regarding the introduction of short-term corporate Sukuk to help Shariah compliant banks manage their liquidity CIMB Islamic Bank makes RM1 million (US$312,800) contribution to Gaza relief efforts Indonesian Financial Services Authority confident that entry of new Islamic banking players will push Shariah banking market share up by at least 2% this year Merger talks between CIMB Group, RHB Capital and MBSB are going well, says MBSB CEO Filipino government suggests putting on hold the proposal to sell country’s sole Islamic bank until Bangsamoro Basic Law is passed Shariah compliant credit unions gaining popularity among both Muslims and non-Muslims throughout Thailand, say industry leaders Islamic banking legislation comes into force in Tajikistan Former Indian Supreme Court judge writes letter to prime minister urging for Islamic banking and finance legal framework Managing director of Karachi Stock Exchange highlights Islamic banking as target segment to expand investor base of government securities Islamic finance supporter Baroness Warsi resigns from government over UK’s policy on Gaza July slow month for global primary Sukuk market as it sees a 31.4% decline as compared to June, reports KFH French private equity firm Ardian contemplating purchase of US$2 billion stake in Abu Dhabi Investment Authority according to sources Market players should seek alternatives despite commodity Murabahah looking lucrative in current high interest environment, says IIFM CEO Malaysia wants to explore Islamic banking and Halal product opportunities in Turkmenistan, says Malaysian prime minister Gulf banks finding new opportunities in overseas expansion Acquisition talks between Qatar Islamic Bank and Bank Asya fall through Pakistan’s strategic plan for Islamic finance will drive strong growth and consolidation in the sector, according to Moody’s Law firm Taylor Wessing develops guide on Islamic finance contracts Financing of SMEs in the MENA region presents an opportunity for Islamic finance growth, according to analyst Higher interest rates could renew participation by western borrowers in Islamic finance Korea and the GCC need to diversify bilateral economic relations to mitigate risk and continue growth, according to think tank Damac uses proceeds from US$650 million Sukuk sale to purchase plot at Dubailand UAE gains top spot for FDI in the GCC although inflows decrease by 14.3% overall, according to UNCTAD Gulf Finance House makes debt repayment of US$25 million Dubai Financial Market accredits five brokerage firms for margin trading including Al Safwa Islamic Financial Services Islamic finance job opportunities in the GCC expected to grow in the next year, according to recruitment head World Bank collaborates with Al Baraka to examine risk management challenges in Islamic finance Dubai Holding makes largest asset disposal since debt crisis with the sale of German packaging firm for US$1.7 billion Qatari emir issues law allowing increase of foreign ownership limit for companies to 49% Kuwait Finance House signs strategic partnership with Kuwait Public Relations Association Amlak Finance to begin repaying financiers as its Shariah compliant debt restructuring plan receives approval Halal food market expected to grow to US$1.6 trillion by 2018 supported by growing UAE market in packaged food Astra Industrial to fund capital expenditure with SAR877.5 million (US$233.95 million) Islamic facility from the Saudi British Bank Emirates District Cooling restructures existing debt with US$245 million Shariah compliant facility from Dubai Islamic Bank Dubai Smart Government formally includes Emirates Islamic in its direct debit service Kuwaiti industry players urge authorities to introduce regulations for Islamic deposit products and to reconsider appropriate monetary reserves for Shariah compliant banks Business is profitable for BMI Bank despite ratings downgrade, says CEO AGInvest Properties Canada receives Shariah compliance certification for farmland investment Islamic banks in Qatar make donations in support of the people in Gaza National Bank of Abu Dhabi to implement new hardware platform to expand retail footprint Emirates Islamic launches campaign to increase utilization of digital banking platforms Khaleeji Commercial Bank launches Shariah compliant air miles finance package in partnership with Gulf Air Stabilizing macroeconomic conditions and progress in nuclear negotiations boost foreign direct investment into Iran Venture Capital Bank reports 84% leap in full year net profit for the period ended the 30th June 2014 HSBC announces pretax profit of US$1 billion for MENA operations in the first half of 2014 Liquidity Management Center notes net profit of US$2.1 million for the second quarter, a slight dip in year-on-year results Mitsubishi UFJ, Sumitomo Mitsui and Mizuho Financial Group report 20.9% year-on-year decline in aggregate profit Arab Insurance Group posts lower first half profit as a result of higher re-Takaful claims Standard Chartered Group CEO admits first half performance disappointing but is taking steps towards refreshed strategy Khaleeji Commercial Bank realizes 166.9% surge in net profit for the second quarter Al Baraka Banking Group sees 3.8% increase in net profit, hitting US$43.8 million in the second quarter of the year BMI Bank reports net loss of BHD3.1 million (US$8.21 million) for the first half of the year due to provisions made for merger with Al Salam Bank Qatar insurance sector reports 33.26% drop in profit for first half of 2014 Oman sees 147% surge in Islamic banking net revenues during the first half of 2014 Bahrain Islamic Bank rolls out new five-year strategy plan as it reveals 66.67% increase in half yearly net profit Syarikat Takaful Malaysia records higher second quarter pre-tax profit despite declining Family Takaful contributions TAKAFUL Malaysian graduates encouraged to explore Takaful as a career through the promise of high earnings Commissioner of insurance encourages Nigerian operators to consider retail Takaful as means to expand business AmMetLife Takaful and AmMetLife Insurance launch new brand campaign ASSET MANAGEMENT AmInvest announces income distributions for Shariah compliant funds RATINGS Bank Sohar reaffirmed at ‘BBB’ based on good asset quality and sustained profit growth New rules from government removing implicit guarantee to rescue UK failing banks prompt Moody’s to downgrade banking sector outlook to negative Ahlibank receives viability rating upgrade from Fitch Kuala Lumpur Kepong’s Islamic finance facilities afforded ‘AA1’ ratings by RAM Mizuho Bank receives top rating from RAM MOVES Abu Dhabi National Takaful Co appoints new chairman following sudden departure of former chairman Khadem Al Qubaisi Dubai Islamic Bank Pakistan appoints Mufti Muhammad Hassaan Kaleem as head of Shariah