A time for giving: New solutions for social impact

Rapids • Deals • News • Takaful • Asset Management • Ratings • Moves
29th July 2015 (Volume 12 Issue 30)
Charity begins at home Although Ramadan may be at an end for yet another year, the principles and precepts which drive the Islamic faith are not forgotten. Charitable giving always soars during the holy month, but this does not mean that with Ramadan over we should forget the duty we have to those less fortunate than ourselves. This week, we take a timely look at the institution of Zakat – and the exciting new ways in which social investment trends are assisting it to develop. Our IFN reports look at real estate in US and Germany as well as Islamic microfinance in Pakistan in light of a new Shariah microfinance bank while our IFN Correspondents cover Hong Kong, Egypt, Malaysia, Pakistan and Gulf Finance House’s listing strategy. Our features look at Japan, corporate Sukuk and Takaful and we also have a special report on Islamic securitization. Our in-house analyses explore Jordan and corporate Sukuk. As always, we wish our readers a productive week and hope you are enjoying the summer! Cover Story A time for giving: New solutions for social impact Ramadan has drawn to a close and the Islamic world resumes normal service after its annual period of contemplation, introspection and reflection. But while we might stop fasting, others do not — the poor of the Muslim world for whom philanthropy is often the only means of survival. While few concrete figures are available, there is no doubt that charitable donations rise around Ramadan. But are the current channels as efficient as they could be? LAUREN MCAUGHTRY looks at how the latest innovations in Islamic investment could improve the social as well as financial fabric. IFN Reports • Promising prospects for Islamic microfinance in Pakistan as Republic experiments with maiden Shariah microfinance bank • US real estate: The cream of the crop? • Pbb Deutsche PFandbriefbank extends Islamic refinancing facility for Berlin real estate portfolio • Sovereign Sukuk: The summer lull • Tougher environment for Middle Eastern Takaful operators in the short run • Jordan’s Hajj Fund strikes partnership with government investment vehicle to offer Islamic financing instruments • Hunt for yield and longer-term Sukuk persists • Kuwait’s ambitious infrastructure plans boosting Islamic banks’ prospects • IFN Weekly poll: Should Islamic finance be rebranded in non-Muslim countries? IFN Country Correspondents • Assets of Islamic banking industry continue to grow • Hong Kong’s SPV • New economic developments in Egypt • Malaysian Sukuk outperform despite weakening currency IFN Sector Correspondent • Should Gulf Finance House delist from Kuwait or Dubai in favor of listing on Tadawul? IFN Country Analysis • Jordan: Stronger and better IFN Sector Analysis • The corporate Sukuk market: A perpetual milestone Case Study Cagamas ICP: A need to be proactive National mortgage provider Cagamas on the 26th June successfully concluded the sale of its RM500 million (US$131.61 million) Islamic commercial paper (ICP). Auctioned at a time when markets were nervous about the Federal Open Market Committee (FOMC) meeting on the 17th June, Cagamas chose to act preemptively and managed to conduct the transaction in a profitable manner. Speaking to Chung Chee Leong, the president and CEO of the corporation, NABILAH ANNUAR takes a closer look at the deal. Special Report Islamic securitization – Still waiting in the wings? Several years ago, around 2008, the writer was asked by industry commentators whether the classic Sukuk structures common in the market would finally evolve from ‘asset-based’ structures to ‘asset-backed’ structures that were true securitizations and thus limited in recourse solely to the performance of the assets underpinning them. Features Japan at the crossroads: Can its Islamic finance keep up with the world? Japan has been involved in Islamic finance mainly since its current wave of global growth around 2005, backed by increasing oil prices. Private and public sectors were both the actors of the development. Not just during this period, but it has continued to evolve until recently as well and even now. In this article, ETSUAKI YOSHIDA provides an overview of its recent developments, as well as raising questions for further growth. Saudi Arabian sovereign debt issuance could boost corporate Sukuk market A return to debt issuance by the Saudi Arabian government could encourage growth in the country’s corporate Sukuk market. Upcoming regulatory reforms could also make Sukuk more attractive for a corporate sector that has traditionally relied heavily on short to medium-term bank lending. BASHAR AL NATOOR writes. What next for Takaful? The last few years have been somewhat of a watershed for Islamic finance. We have seen successful debut Sukuk issuances from the UK, Luxembourg, Hong Kong and South Africa. There have also been declarations of intent from a diverse group of countries including Tunisia, South Korea, Kazakhstan, Chile, New Zealand and Mexico. So, while still being dwarfed by conventional finance markets, BERT PATERSON opines that the Islamic finance industry is moving ever closer to the mainstream and is increasingly being accepted by non-Muslims as well as Muslims.  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: Geraldine Chan Direct Line: +971 4 427 3628 Kuala Lumpur: Siti Amilia Amir Amzah Direct Line: +603 2162 7800 ext 27