Swings and roundabouts

Rapids • Deals • News • Takaful • Asset Management • Ratings • Moves
19th August 2015 (Volume 12 Issue 33)
Swings and roundabouts What goes up must come down. The global financial system is a piece of clockwork with a million moving parts; and while we are all cogs in the machine, the rate of revolutions will always change based on circumstance and situation. This week, we look at some of the biggest wheels in the Islamic finance world, and ask how the current economic and political challenges are affecting the outlook for the Sukuk market over the coming year. Will Malaysia's internal issues impact its position in the global industry, and how is the Middle East performing in comparison to its beleaguered Asian counterpart? Our IFN reports this week explore a wide range of issues: from the rise of Islamic IPOs to Tamweel Africa. Our IFN Correspondents cover Qatar, Bahrain, real estate and leasing while we also have special reports on India and Bangladesh and features from ATA Plus and Tejara Capital on crowdfunding. Our in-house analyses this week look at Afghanistan and crowdfunding as well. The wheel keeps turning, the summer break is over, and activity is picking up as the world returns to work. I hope that this week's issue of IFN provides you with an invigorating escape as you get stuck back into the daily grind! Cover Story Global Sukuk struggles: MENA surge amid Malaysian woes? Malaysia is struggling to maintain momentum amid political and economic chaos, while Middle East economies are surging forward and their capital markets are developing apace on the back of strong Sukuk demand. LAUREN MCAUGHTRY asks what we can expect from Islamic fixed income this year and, as the biggest contributor to the market, what impact the current Malaysian crisis could have on overall issuance… Column Daud speaks My warmest greetings to you all. I have just returned from a very refreshing family holiday, with batteries recharged and the passion for Islamic finance re-energized. IFN Reports • Tamweel Africa: The driving force of Islamic finance in sub-Saharan Africa • IBFD engages Bahraini Shariah advisory firm to boost Islamic finance capabilities of Russian businesses • Global external factors drag down Sukuk volumes, says Fitch • Iran to strengthen OIC ties with Islamic finance • Islamic equities on the up as IPOs attract optimism • Company Focus: Crescent Wealth • Sovereign Sukuk: Predictions • An Islamic ETF opportunity in the African region? • IFN Weekly Poll: With over 32 million Muslims (2.5% of the population) and 45,000 mosques in China today, which area has the most potential for Islamic finance? IFN Country Correspondents • Bahrain: Ibdar Bank offloads real estate arm with decent returns • Qatar: A Qatari summer IFN Sector Correspondents • Real Estate: Last piece of the jigsaw • Leasing: Who are the prime shareholders of an Ijarah company? IFN Country Analysis • Afghanistan — rising from the ashes? IFN Sector Analysis • Shariah compliant crowdfunding Case Study ACWA financing: The first air separation project to be financed Islamically Arabian Company for Water and Power Development (ACWA) successfully secured a US$1.7 billion Shariah compliant financing facility from 10 banks for a new US$2 billion industrial gases project in Saudi Arabia, the largest of its type in the world. The transaction is the first project financing of an air separation unit (ASU) in the Middle East and (thus far) the only air separation project to be financed in a Shariah compliant manner. Speaking to Leroy Levy, a partner at King & Spalding, the advisor to ACWA, NABILAH ANNUAR takes a closer look at the transaction. Special Reports The role of Islamic finance in formalizing India’s financial system Narendra Modi, the prime minister of India, in a public rally in New Delhi on the 4th February 2015 observed: “Pradhan Mantri Jan Dhan Yojana is a reflection of how rich India’s poor are at heart. Without any obligation to put any money in the zero balance accounts, they didn’t open an empty account”. This statement communicates a lot about the healthy and visionary present status of the Indian economy. TUSHAR GARG writes. Bangladesh: No more Islamic banks Bangladesh Bank (BB), the regulatory authority of banks in Bangladesh have decided not to issue any more Islamic banking licenses, meaning that there will be no more conversion of conventional banks to Islamic banks and no more Islamic banking windows or branches of conventional banks. M SHAMSUZZAMAN takes a look at this latest development. Features Takaful in France needs investors to take off There are now 16 million Muslims in the EU and France leads European countries by the size of its Muslim community which should represent, according to the Pew Research Center, more than 10% of the French population in 2030. EZZEDINE GHLAMALLAH opines that with such demographic data, it is questionable why it seems so complex to develop Islamic finance and Takaful in this country. Why the Islamic gift economy and equity crowdfunding make sense in the era of post-capitalism In a provocative article published recently, the author suggested that we are now shifting into the era of post-capitalism. The author made the argument that capitalism will be reshaped and inexorably alter a new dynamic force driven by a new kind of peer-to-peer, information-driven society. Principally, the author argued, post-capitalism is emerging because of three major shifts in information technology that have occurred in the last 25 years. ELAIN LOCKMAN explores. More tail winds for crowdfunding The crowdfunding industry is continuing to strengthen globally, both in terms of new entrants and the volume of business underwritten. According to Statista, the global peer-to-peer lending market was valued at US$9 billion in 2014 and is expected to reach US$64 billion in 2015, with the US and the UK accounting for the bulk. M MANSUR MANNAN and GINA MOK delve further.  CONTACTS Editorial: Sasikala Thiagaraja Direct Line: +603 2162 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