The eagle has landed…

Rapids • Deals • News • Takaful • Asset Management • Ratings • Moves
8th April 2015 (Volume 12 Issue 14)
The eagle has landed… The US is not only one of the biggest markets in the world but, despite the doom and gloom of recent years, has in the past few quarters put in one of the best economic performances: with indicators on the up, equity markets exploding and investors optimistic. This week, our cover story takes a comprehensive look at the opportunities available in the US market – and how the Islamic investor is able to take advantage of them. Our IFN reports look at the UAE’s federal Shariah board and Pakistan’s new Islamic finance strategy while our correspondents come to you from Bangladesh, Jordan, Hong Kong, Morocco and Pakistan, and our in-house analyses explore tax and accounting as well as Kuwait. We bring you a feature from Dr George Mickhail on Islamic finance opportunities in Australia and an exclusive interview with Salim Kazi, the managing director of Bait-un-Nasr where he discussed India’s recently revived Islamic cooperative credit society. The Islamic world is focused on emerging markets and that is as it should be, given the locus of the growing Muslim economies in Asia, the Middle East and Africa. But the potential, prospects and positive opportunities in the developed world should not be ignored – and the Muslim financial community worldwide should work together towards making all markets accessible. In the spirit of universal ties and cross-border collaboration in all their many forms, we wish all our readers a mutually profitable and internationally rewarding week. Cover Story The return of Uncle Sam: North America’s renewed Islamic appeal As markets continue their trend of turbulence and volatility remains the theme of the day, investors are turning back to safe havens such as the US and Europe to provide income yield and secure investments. After a period of quiet the Islamic asset management market is looking back towards big names and big tickets in the States to provide the reassurance and security their clients are looking for — but is the success story sustainable this time around? LAUREN MCAUGHTRY explores the outlook for Islamic investment into the US. IFN Reports • UAE’s federal Shariah board: A step towards standardization • Emulating the Malaysian success story — Pakistan surges forward • The ICD mobilizes technical expertise to enhance development in Mauritania • Investors seek income-generation as attention swings towards alternative asset classes • Company Focus: Beehive • Still a long way to go for Islamic finance • Islamic investors look to the US for low-risk high-yield opportunities • Sovereign Sukuk: Prominent markets • IFN Weekly Poll: What is the most interesting asset class at the moment? IFN Country Correspondents • Bangladesh: Islamic banking continues to grow • The Islamic capital market in Jordan • Hong Kong poised to be an Islamic finance hub in the east • Morocco: The implementation process of Islamic banks in progress • Center of excellence for the promotion of Islamic finance IFN Country Analysis • Kuwait: Solid growth, vast potential IFN Sector Analysis • Tax and accounting in Islamic finance: More efficient by the year Shariah Pronouncement An Islamic bank has in its array of retail products, auto financing for its individual customers. The product is based on the Murabahah structure whereby the bank, based on the ‘promise to purchase’ from its customer, purchases the vehicle from the individual seller in the case of a used vehicle, or the dealer in the case of a new vehicle. Case Study PETRONAS’s comeback after a six-year hiatus Malaysian oil and gas company PETRONAS has, on the 18th March 2015, successfully tapped the global Sukuk market with a US$1.25 billion offering, part of its US dollar bond program. NABILAH ANNUAR speaks to John Dewar, partner at Milbank, Tweed, Hadley & McCloy and Vicky Jones, Of Counsel at Norton Rose Fulbright, legal advisors to the deal, for a detailed account of the transaction. Interview Interview with Salim Kazi, the managing director of India’s oldest Islamic cooperative credit society, Bait-un-Nasr Indian Muslims’ consciousness to operate interest-free financial institutions is quite old. The first such effort was made in the princely state of Hyderabad in the 1920s. Feature Cautious optimism for Islamic finance in Australia Australia has arguably one of the most efficient and competitive financial sectors in the Asia Pacific region, which is the fastest-growing region in the world according to the 2009 report ‘Australia as a Financial Center: Building on our Strengths’ by the Australian Financial Center Forum (AFCF). Australia has the opportunity to export funds management, offshore banking and Islamic finance services to the region.  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