Banking on success…

Rapids • Deals • News • Takaful • Asset Management • Ratings • Moves
4th February 2015 (Volume 12 Issue 05)
Banking on success… Despite the global volatility in oil prices, the outlook for 2015 looks surprisingly positive: with economic conditions improving and markets in the Middle East demonstrating unexpected resilience. As the financial sector surges forward on the back of sustained growth, we take a look this week at the compelling prospect for capital-raising in the region – with Tier 1 issuance the word that seems to be on everyone’s lips at the moment. IFN Managing Editor Lauren McAughtry talks to key market players to discover what we can expect for the year – and where/whom we can expect it from. Our IFN reports this week take you on a journey to Saudi Arabia under a new king and the UAE under new Takaful regulations, with a look at the global Sukuk market for 2015. Correspondents cover the Maldives, Africa, Turkey and real estate; while our analyses bring you the latest on Japan and technology. Special reports come to you from Tawreeq Holdings on SMEs and Oasis Financial Holdings on Canada as well as on a new banking charity scheme by the Royal Award for Islamic Finance recipient, Dr Abdul Halim; while our features this week focus on Jordan. As always, we wish you a productive week and a positive performance, and we hope you enjoy all the very latest news, features and analysis with which we have crammed our jam-packed issue this week. Cover Story Banking sector boom: Capital financing forges forward Bank financing is big news for 2015, as Basel III compliance, consistent growth and capital requirements push the financial sector further towards the fixed income markets to raise new capital and diversify their funding sources. The Middle East is seeing Tier 1 deals sprout up in all corners: with the UAE, Bahrain, Qatar, Kuwait, Oman and Saudi Arabia all expecting to tap the market over the next couple of quarters. LAUREN MCAUGHTRY talks to the industry. IFN Reports • Amid market concerns, Saudi Arabia is in a good position to ride out the storm • Halal hotels opening the door for Islamic finance • Equity volatility creates opportunity for Sukuk • Sovereign Sukuk: Gradual progress • European insurance model for the UAE • Malaysia plans to make Islamic finance a mandatory component for Halal certification • IFN Weekly Poll: On the back of its performance in 2014, will UAE's real estate sector continue to witness a downward trend this year? • Fund Focus: SICO Fixed Income Fund • IFN Global Trendswatch IFN Country Correspondents • Bank of Maldives introduces Islamic banking • Zorlu Enerji plans lease certificate issue • ISFIN analyzes Islamic finance opportunities IFN Sector Correspondent • Everything’s changing IFN Country Analysis • Japan: Revving its Islamic finance gears IFN Sector Analysis • Technology: Digital banking and beyond Case Study IBA’s largest Islamic facility to date The International Bank of Azerbaijan (IBA) last month successfully procured a US$252 million one-year Islamic financing facility. Securing the financing at a margin of 2.75% over LIBOR, the funds obtained will be channeled to IBA’s Islamic banking department for crediting Shariah compliant projects. Special Reports Foot in the door: Barriers to the banking industry Canadian citizens have long voiced their need for non-interest-bearing financial products and solutions. Islamic finance known as Shariah compliant banking which is recognized in Canada as one of the alternative financing means is the solution. When will Islamic finance make a difference for SMEs? For many years now the subject of how Islamic finance can assist small and medium-sized enterprises (SMEs) has been a hot topic. It is strongly argued that Islamic banks must be better than conventional banks at looking after the ‘little guy’, providing capital where capital is needed; not lending to those who do not need money, as the saying goes, but adding value and assisting those that employ the vast majority of people across the globe. New banking charity scheme to free the underprivileged in Asia from poverty 2014 was a remarkable year for Islamic finance as the industry achieved several milestones and continues to move towards greater sustainability and in providing a wider range of financial services. There is clearly a market with high potential within the Islamic economy. Feature Islamic banking in Jordan Ranked as one of the top 10 Islamic finance jurisdictions, Jordan is an interesting market despite its relatively small Islamic finance share. NAFITH NAZZAL walks us through the development of Islamic finance in Jordan. Islamic banking, ‘the next economic giant’, is banking or banking activity that is consistent with the principles of Islamic Shariah law and its practical application through the development of Islamic economics.  CONTACTS Editorial: Sasikala Thiagaraja Direct Line: +603 2163 7800 ext 34 Finance: Faizah Hassan Direct Line: +603 2162 7800 ext 26 Sales: Dubai: Geraldine Chan Direct Line: +971 4 427 3628 Kuala Lumpur: Steve Stubbs Direct Line: +603 2162 7800 ext 55 Subscriptions: Dubai: Mithun Gangolli Direct Line: +971 4 427 3638 Kuala Lumpur: Siti Amilia Amir Amzah Direct Line: +603 2162 7800 ext 27