The Islamic Development Bank (IDB) plans to take at least a 10% stake in Turkey's state-run stock exchange, Borsa Instanbul. Abdulhakim Elwaer, IDB's director of cooperation, said negotiations are expected to finalize in two to three months as part of wider efforts to develop Islamic finance in Turkey. Elwaer emphasized the bank's wish to help develop Turkey as a global Islamic financial center. IDB and Borsa Istanbul signed a cooperation agreement in November, with discussions currently ongoing to decide on a specific size and time frame. The bourse has a share capital of 423 million lira ($115.6 million), implying a value of 42.3 million lira for a 10% stake. Elwaer added that a gold trading platform is also in discussion, although the equity stake remains the bank's biggest priority.
#Saudi Jadwa Investment announced the conclusion of the public offering of its first Shariah-compliant Real Estate Investment Traded Fund, Jadwa REIT Al-Haramain Fund. The new fund will invest in real estate properties in Makkah and Madinah. The REIT, which has an initial size of SR660 million ($176 million), offered SR360 million worth of units to the general public. Over 5,800 individual and intuitional investors subscribed for SR4.53 billion during the offer period, resulting in a 1.257% coverage of the offered units. Haitham Al-Ghannam, head of alternative investments at Jadwa, said the initial portfolio of the REIT would comprise of two hospitality assets, a four-star hotel and a pilgrim accommodation. Both properties are located in Makkah with a combined capacity of 984 hotel rooms. At its initial offer price of SR10 per unit, the REIT offers net initial yield of 5.2%.
The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) will develop a package of standards covering Islamic endowments or awqaf. AAOIFI did not give a time frame for the completion of its awqaf standards, but said its board had discussed and approved specifications regarding the accounting standards. The plans are part of wider industry efforts to modernise awqaf, which receive donations to operate specific social projects, such as mosques, schools and welfare schemes. Most awqaf do not disclose full financial figures, although their underperformance is believed to be considerable. In India, awqaf are estimated to own 490,000 properties but their estimated annual income is just 1.63 billion rupees ($25.22 million.)
Malaysia's Public Sector Home Financing Board issued up to RM3.25 billion sukuk to finance housing loans to the public sector employees. The board is also known as Lembaga Pembiayaan Perumahan Sektor Awam (LPPSA). The LPPSA said the RM3.25 billion sukuk notes formed a part of its RM25 billion Islamic commercial papers programme, which is guaranteed by the Malaysian Government. The sukuk was issued in tranches of five-year to 30-year and was priced at 4.17% to 5.225% per annum across tenures. Lead managers include Affin Hwang Investment Bank, AmInvestment Bank, Bank Islam Malaysia, CIMB Investment Bank, Maybank Investment Bank, OCBC Bank and RHB Investment Bank. CIMB is also the facility agent while RHB Islamic is the Shariah adviser.
Sultan Choudhury, CEO of Al Rayan Bank, talks about Islamic finance in Britain and its appeal to non-Muslims. He says, Islamic finance appeals to anyone who agrees with the underlying principles: equitable distribution for everyone, prudent spending and the well-being of the community as a whole. It also provides an ethical alternative to traditional banking. Al Rayan Bank is structured to ensure that it operates ethically on a day-to-day basis. The bank's home-purchase plans (HPP) are structured differently to conventional mortgages. HPPs are based on the Islamic finance principles of ijara and diminishing musharaka. Currently the bank estimates that more than a quarter of customers are non-Muslim and the customer base is expected to grow in the coming years.
Bosna Bank International's net profit increased to 6.4 million marka ($3.5 million/3.3 million euro) last year from 5.6 million marka in 2015. Net interest income grew 22.5% year-on-year to 22.3 million marka in 2016, while net fee and commission income rose to 10.9 million marka from 9.6 million marka. The bank's total assets stood at 895.4 million marka at the end of 2016.
In Great Britain there are currently six Islamic banks, while another 20 lenders offer Islamic financial products and services. Al Rayan is Britain’s largest Sharia-compliant bank with 70,000 customers and 13 offices and branches. The bank underwent a major overhaul in 2014 when it was acquired by its Qatari parent, Masraf Al Rayan. Since that point, the brand was made more accessible, the imagery is no longer just Arabic, the bank uses British imagery as it is targeting all Brits. CEO Sultan Choudhury says about 25% of the bank’s customers are non-Muslim. Mr Choudhury also has his eyes fixed on the potential of the wider international market. In particular, he highlights the GCC national and expat market and HPPs (mortgages with an interest-free and Sharia-compliant structure). He says, Al Rayan's ambition is to be the number one bank for HPPs for GCC nationals and expats.
Turkish lender Albaraka Turk has secured a $213 million murabaha-based loan syndication, up from the $150 million it initially sought. The bank said the profit margin for the 370-day sharia-compliant facility was 125 basis points over three-month LIBOR. The lender had appointed ABC Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital Ltd, Qatar Islamic Bank and Standard Chartered Bank to arrange the transaction. The bank is a unit of the Al Baraka Banking Group, which is also planing to issue dollar-denominated sukuk.
London Stock Exchange welcomes the largest Sukuk issued by a supranational globally in 2017, raising $1.25bn. The isssuance is listed by the Saudi Arabia based Islamic Development Bank and is a five-year bond with a 2.393 % yield. This listing adds to the broad range of Islamic finance products available to investors on London Stock Exchange. According to Nikhil Rathi, CEO of the London Stock Exchange, the listing demonstrates London’s standing as the world’s most international financial centre and confirms the UK as the key destination for Shariah-compliant financial products. The CFO of Islamic Development Bank, Dr. Ahmet Tiktik, said choosing London as the location for the new $1.25bn Sukuk shows the bank's continuous support for London Stock Exchange.
Algeria is edging slowly towards Islamic banking services to suit more religiously conservative investors. Finance Minister Hadji Baba Ammi has already announced plans for the country's first local bond. Now six state-run banks plan to start Islamic financial services by the end of the year or in early 2018 and a national sharia board that would oversee Islamic banking is also planned by the end of 2017. Algeria's Islamic finance plan still faces huge barriers. It lacks a legal framework and technical expertise. Algeria is far behind North African neighbours Morocco and Tunisia, which have started to develop legislation for Islamic finance. The country is targetting domestic savers rather than foreign investors. Many local people distrust the state-owned banks and keep large sums at home in Algerian and foreign currency.
Saudi Arabia saw bids of $33 billion (Dh121.11 billion) for its record-breaking debut sukuk issue. The issue size of the sukuk could likely be $8 billion, spread across $4 billion each for the 5 year and 10 year tranche. The sukuk was priced at 100 basis points over mid-swaps for the 5-year tranche, and 145 basis points over mid-swaps for the longer dated issue. Anita Yadav, Senior Director of Global markets and treasury at Emirates NBD, said the yield on Saudi sukuk is likely to be attractive on relative value basis, which would appeal to the yield hungry international investor. Analysts expect larger institutions like Aramco or SABIC to take advantage and come the market. On an yearly basis, Emirates NBD expects $20 billion worth of issuance from Saudi Arabia including issues from the government, and state-run enterprises, banks and corporates.
East Africa’s biggest economy is positioning itself to become a regional hub for Islamic banking. Kenyan finance minister Henry Rotich said on March 30 that the government would propose amendments to the financial laws and issue new regulations to facilitate a Sharia-compliant retirement scheme. It will also amend the public finance management act to provide for the issuance of sukuk. In the past, Kenyan regulators found it hard to issue new regulations, as the government was battling the jihadist fundamentalist group al-Shabaab. Regulatory agencies say Kenya is now ready to allow Islamic finance and banking to thrive. In fact, Kenya is already a regional leader in Islamic banking. The country has two fully-operating Islamic banks. There’s also one takaful Islamic insurance company, a sharia-compliant mutual fund and two cooperatives. In December, Kenya joined the Islamic Financial Services Board based in Malaysia.
The order books for Saudi Arabia's debut U.S. dollar-denominated sukuk have reached about $25 billion. The dual-tranche sukuk is set to be the largest ever Islamic bond, beating a $4 billion sukuk issued by Qatar in 2012. The two tranches have maturities of five and ten years. The initial price guidance put the senior unsecured Islamic bonds in the 115 bps over mid-swaps area for the five-year tranche and 155 bps over mid-swaps area for the 10-year tranche.
According to the Global Takaful Report 2017, the Takaful industry has grown in double digits across the Gulf Cooperation Council (GCC) in recent years. Between 2012 and 2015 the GCC markets grew by a compounded annual growth rate (CAGR) of 18%. While South East Asia reported a negative growth of 4% due to currency depreciation, Africa reported a CAGR of 19% during the same period. According to Safder Jaffer, Consulting Actuary at Milliman, Saudi Arabia is the largest Takaful market with a gross written contribution (GWC) of $9.7 billion (Dh35.62 billion) in 2015. The Saudi market is dominated by general insurance with limited life insurance business. GCC markets continue to dominate general takaful whereas South East Asia continues to dominate life takaful. In the GCC, family takaful achieved a record growth of 34% in 2015. Global takaful GWC is estimated at $14.9 billion as at the close of 2015. There is strong growth in overall global takaful market in the range of 13 to 14% each year. The split of the family and general takaful market in 2015 is approximately 17% and 83% respectively.
77 academics from the Abant Izzet Baysal University (AIBU) face between 7.5 years and 15 years in jail on accusation of membership to a terrorist organization. 75 academics are sentenced to 15 years in prison, while the remaining two to 22 years. The prosecutor listed among evidence for terror charge the academics’ previous transactions within Bank Asya. The Turkish government closed down the Islamic lender as part of its crackdown against the Gulen movement. The government also pinned the blame for July 15 on the movement. The accused academics have withdrawn TL 2 million from other banks to deposit into Bank Asya since late 2013 when the bank was struggling. The prosecutor underscored that some academics transferred money from spouses’ accounts to another account in Bank Asya so that they could benefit from state insurance in case the bank faces closure.
On the 5th of January military intelligence operatives phoned the chairman, a vice-chairman and the managing director of Islami Bank Bangladesh and brought them to the agency’s headquarters in Dhaka. A few hours later the bank’s board selected their replacements. Islami Bank has been of interest to the government for its association with the Jamaat-e-Islami, Bangladesh’s biggest Islamist party. In recent months, companies with ties to S Alam Group have built stakes in the bank, although the group denies any role in this. The new chairman, Arastoo Khan, declined to comment on the changes at the bank. The shareholders from Saudi Arabia and Kuwait were kept in the dark about the boardroom coup and complained bitterly about it. The Islamic Development Bank (IDB) questioned the rationale behind the changes and pointed out that there was no proper recruitment process. The Bangladeshi government has assured foreign shareholders that it will not let politicians loot the bank.
The Securities and Exchange Commission of #Pakistan (SECP) announced that it was relaxing regulations for Sukuk issuance in order to develop the Shariah-compliant market. The regulator said the SECP was amending the 2015 Issue of Sukuk Regulations to facilitate the issuers, reduce the cost of issue and ease the regulatory burden. The SECP has invited public opinion on the proposed amendments before their finalisation. The commission has also advised the PSX to come up with proposals for reducing the cost of market-maker for Sukuk issuance, rationalising the minimum size of public offer portion to reduce the cost of issue and organising a seminar with potential issuers to widen awareness. According to the SECP, the Sukuk market has been performing below potential in Pakistan. While the demand is substantial, supply remains short.
With the continuous growth of Islamic banking in the GCC, products such as Islamic Real Estate Investment Trusts (I-REITs) have started to emerge. Al Mahrab Tower REIT was the first private I-REIT in Kuwait in 2007. Following that, Dubai launched its first I-REIT (Emirates REIT) in 2010 and Bahrain listed its first public I-REIT (Eskan REIT) in 2017. Emirates NBD has also recently listed ENBD REIT and due to strong demand the offer was oversubscribed. Firms responded to this growing demand, including IdealRatings, which launched its first Sharia-compliant REIT index in 2015. While the future of I-REITs may seem positive, there are many challenges that lie ahead. It is important for asset management firms to devise efficient and logical I-REIT investment methodologies. This needs to be supplemented by sound ethical principles to ensure the sustainable growth of I-REITs in the region.
Global law firm Baker McKenzie has successfully acted for Dubai Islamic Bank in its defence of a $2 billion claim brought against it in the English Commercial Court. The claim was brought by Plantation Holdings, a holding company owned by an Argentinian-resident property developer. The allegation was breach of contract related to plot of land on the outskirts of Dubai, which Plantation had planned to develop into a high-end luxury lifestyle and equestrian complex. The Bank took security over the project as part of the restructuring of a $500 million debt owed to it as a result of a complex receivables financing fraud. The case was heard in an eight week trial, with evidence from witnesses from seven jurisdictions. The court ruled that Plantation's principal director had made up evidence and that another of Plantation's witnesses had manufactured documents, Plantation has been ordered to pay 70% of the Bank's costs on the indemnity basis. The nature of the case also resulted in examining the volatility of the Dubai property market and the functionality of its property registration system, as well as the Dubai authorities' approach to financial misconduct.
Global sukuk market resumed positive strides in 2016 after three years of consecutive decline. The sukuk market also witnessed an important shift where corporate issuers dominated the market in 2016 with USD47.3 billion volume of issuance, representing a share of 63.2%. This is in contrast to historical trends where issuance was driven largely by sovereigns. Overall, sukuk issuer profile remained similar to historical trends. Malaysia continued to be the main driver for sukuk issuance, commanding a market share of 46.4% of total issuances, followed by Indonesia and the United Arab Emirates (UAE), accounting for 9.9% and 9.0% share. Elsewhere, Turkey recorded a notable rise in sukuk issuance at USD4.1 billion for the year, supported by a number sovereign issuances with maturity ranging from one to five years. The year 2016 also witnessed issuances from Senegal, Jordan, Ivory Coast and Kuwait.
Malaysia Venture Capital Management (MAVCAP) plans to announce a $50 million first close for two of its funds that will be launched this year, Asean Growth Fund and Global Islamic Economy Fund. The combined size of the two vehicles will be about $450 million. MAVCAP CEO Jamaludin Bujang said the Asean Growth Fund is $200 million vehicle, which is jointly launched with China-based Gobi Partners. This vehicle will be termed Meranti and will focus on later stage funding for technology related companies in Malaysia and Southeast Asia. In fact, MAVCAP is weighing options for the Islamic fund that is looking to invest in Shariah compliant and Halal sectors. Apart from the Asean Growth Fund and the Islamic fund, MAVCAP is also working on a clean-tech fund that will invest in companies that help reduce environmental stress. Bujang said the clean-tech fund could have a targeted corpus of anywhere between $50-$100 million.
Indonesian banks are expected to be cautious boosting credit disbursement because the non-performing loan (NPL) ratio is currently high with the gross NPL ratio hovering above 3% since mid-2016. Banks are now more selective in terms of credit disbursement, but this undermines the pace of the nation's macroeconomic growth. Although Indonesia managed to end the five-year economic slowdown in 2016, it is still far away from Indonesian President Joko Widodo's ambitious 7% GDP growth pledge. In fact, he revised his projection for Indonesia's 2018 GDP growth to 5.6% from a previous projection of a 5.4 - 6.1%. Thus, it should basically be impossible to see a 7% growth rate by 2017.
Sonny Bill Williams could find his rugby career curtailed if he refuses to support any sponsorship that runs contrary to his Islamic religion. Williams covered the BNZ logo on his collar in his first game for the Blues. Williams has lodged a conscientious objection in his contract to finance companies, banks, alcohol companies, tobacco companies and gambling companies. According to Victoria University religious studies professor Paul Morris, the rugby player's conscientious objection was valid if cleared with the sponsor and the management of the team. Islamic Women's Council spokeswoman Anjum Rahman said Williams was making a statement and it was a valid choice. New Zealand Bankers' Association CEO Karen Scott-Howman said banks were constantly responding to customer preferences. However, the banks do not see the demand for Sharia-compliant banking in New Zealand.
According to Moody's Investors Service, the growth of shariah-compliant investment accounts at Malaysian banks will remain strong over the next three to five years. Moody's Vice President, Simon Chen, said Malaysian banks have strong incentives to promote the growth of such investment accounts because they provide capital benefits. He added that concerns also exist over the untested state of loss-sharing mechanisms in the accounts. The robust growth of shariah-compliant investment accounts in Malaysia began in July 2015 following the implementation of the Islamic Financial Services Act 2013. By February 2017, these accounts had grown to RM74.2 billion, or 13%, of total banking system liabilities. On the question of risk, Moody's said that a significant loss event to test the resilience of this regime has yet to occur.
Saudi Arabia has included a disclosure on credit risk retention requirements in the prospectus of a debut dollar sukuk which is expected to issue this week and could total $10 billion. The disclosure to comply with the US Dodd-Frank Act has not been made for other sovereign sukuk issues. The US retention rule was set to align the interests of issuers of asset backed securities (ABS) with those of ABS investors by asking the sponsor of an ABS securitisation. Sukuk are generally asset-based, but in order to comply with the rules, Saudi Arabia will purchase at least 5% of the aggregate principal amount of each tranche it issues. Saudi Arabia began meeting investors on Sunday ahead of the deal, the second debt sale by the kingdom, which made its debut in the international debt markets last year with a record $17.5 billion bond.
La traduction en langue française de l’ensemble des standards de l’AAOIFI a été achevée. La première édition officielle en français des Normes Charaïques pour les institutions financières islamiques sera présentée le 12 avril 2017 à l’ouverture de la 15ème conférence annuelle de l’AAOIFI à Manama, Bahrain. Cette démarche s’inscrit dans le cadre des efforts de l’AAOIFI pour la diffusion de ses Shari’ah Standards, qui sont devenus la principale compilation de jugements de Fiqh contemporain dans le domaine de Fiqh al Mouamalat au niveau mondial. Eu égard à la taille des communautés francophones dans le monde, l’AAOIFI a entrepris de faire traduire ses Shari’ah Standards en français selon une méthodologie rigoureuse pour assurer une traduction une traduction fiable comportant plusieurs niveaux de révision, d’édition et d’assurance qualité.
Mizuho Bank #Malaysia opened a $300 million credit facility to the Islamic Corporation for the Development of the Private Sector (ICD). The two-year deal will finance projects in the member countries of ICD. According to ICD Chief Executive Khaled Al Aboodi, the $300 million accounts for 24% of funding programs earmarked by ICD in 2017. He added that funds could be disbursed for hospitals in Gambia, manufacturing facilities in Tajikistan or trade finance in Maldives. For Mizuho Bank Malaysia, the deal marks its first cross-border bilateral Islamic facility based on the concept of Murabahah. The bank's deputy CEO, Shinichi Nishiyama, said lending to ICD will expose Mizuho Bank Malaysia indirectly to the markets in Islamic countries and they are looking forward to a long-term partnership with ICD.
Saudi Arabia is expected to raise several billion US dollar sukuk across five and 10-year tranches. The notes will be in a hybrid mudaraba-murahaba format, a structure in essence already trialled by Saudi Aramco for a riyal-denominated sukuk. The kingdom is rated A1 by Moody's and A+ by Fitch. The banks running the deal are BNP Paribas, Citigroup, Deutsche Bank, HSBC, JP Morgan and NCB Capital. The national oil company Saudi Aramco raised SR11.25bn riyals in order to diversify its revenues impacted by low international oil prices. The floating rate local currency sukuk has a seven-year maturity and offers 25bp over the six-month Saudi Arabian Interbank Offered Rate.
Warba Bank has recently purchased a newly constructed UK vehicle imports-exports facility strategically located next to Immingham port. The property is leased to KIA Motors UK for unbreakable lease term of 20 years. The facility has a capacity of over 15,550 cars and totalling 86.68 acres (35.08 hectares) of land. In addition, the site also includes a warehouse space of 63,515 ft.² (5,901 m²), facilitating distribution, refurbishment, valet, inspection, refuelling, offices and gatehouses. The site receives on average c.1,200 vehicles a week. KIA anticipate 100,000 UK car sales target by 2020. Warba Bank’s CEO, Shaheen Hamed Al Ghanem, said this acquisition was one of the best risks mitigated real estate investment of the bank, generating a steady and secured return from unbreakable long lease. He elaborated that the investment plan for 2017 is highly ambitious and the bank is looking for more international real estate investment opportunities in USA, UK and other continental European countries.
Zaman Bank is expected to enter Kazakhstan's Islamic banking services market in near future. The news was announced by Nurlan Abdrakhmanov, director of the financial market methodology department of Kazakh National Bank. He noted that among all the products of Islamic banking, murabaha is in the greatest demand in Kazakhstan.
Bashar Qasem is the most outspoken voice among Muslim investors in the United States. He was the only Islamic financial representative among religious shareholder advocates who sent a letter in February to protest U.S. President Donald Trump’s travel ban. Qasem's Azzad Asset Management firm started its work in 2005, weighing in on issues like worker safety, climate change and lobbying disclosures. This direct advocacy will test whether U.S. Muslim investors will support the sort of faith-based shareholder activism common among other religious groups. Qasem's strategy appears to be helping to differentiate his firm from other asset management firms. Azzad's assets increased 11% in 2016 to US$487 million (£393 million) at year-end. Growth included US$5.7 million into the firm’s mutual funds, the third consecutive year of inflows.
The Iranian Ministry of Economy has published the details of letters of credit (L/Cs) that Iranian banks allocated over the past few years. The country’s international trade picked up considerable pace when the sanctions against Iran were lifted. According to the ministry’s report, Bank Melli Iran allocated 154 letters of credit worth $42.71 million over a four-year period (2013-16). During 2013-16, Bank Keshavarzi opened 19,253 L/Cs worth over $10.5 billion. It also played an important role in issuing 21 bank guarantees valued at $15 million. Bank Mellat also issued 32 export guarantees worth $15.4 million and four import guarantees worth $13.5 million. Export Development Bank of Iran opened 550 L/Cs and issued more than 1,750 bank guarantees during 2013-15 to emerge as one of the main forces in the Iranian economy.
The Managing Director of Jaiz Bank, Hassan Usman, has assured that the bank’s loan profile is very healthy. Jaiz Bank, he noted, was not heavily or significantly exposed to the oil sector, but the bank’s exposure is to real estate. While justifying the listing of the bank’s shares in the Nigerian Stock Exchange (NSE), he said Jaiz Bank’s activities remain transparent and open. Jaiz Bank has challenges like any growing institution. One of such challenges has to do with perception, as many people thought it was a charity organization. Other challenges include the enabling environment like infrastructure for non-interest banking like liquidity instruments. Another challenge is the limited number of qualified trained manpower to manage Islamic banking. Inspite of these challenges, Jaiz Bank has proved itself to be sustainable. It has grown into a national franchise with branches in South and South West and is also opening more branches in other parts of the country.
In #Nigeria Jaiz Bank has accumulated funds and is now ready to massively invest in Sukuk to finance in specific infrastructure projects in the country. Managing Director Hassan Usman said that the bank, being an Islamic bank, could not invest in interests yielding instruments and therefore had to wait until Sukuk was ready. He added that there are off-shore funds held by those who share similar non-interests philosophy of Jaiz Bank which could be brought into the country. Usman said that from a capital base of N5 billion, the bank has grown its capital base to about N50 billion. From a deposit of N3. 5 billion, it has grown to about N60 billion. From the initial three branches as a Regional Bank, Jaiz Bank has grown into a National Bank with 30 branches across the nation.
Maybank Islamic is turning to its home markets for growth, in particularly Indonesia where it manages $2 billion worth of assets and is aiming to compete with domestic Islamic banks. According to CEO Mohamed Rafique Merican, the bank could grow beyond its core markets of Malaysia, Singapore and Indonesia, but expansion in other markets would be opportunistic. Indonesia remains a key market for the bank, after Malaysia which accounts for 90% of the bank's business. As part of the ASEAN banking integration framework (ABIF), Indonesia and Malaysia have agreed in August to give their banks greater access to each other's markets. The move would give Malaysia's Islamic banks a potential lead to tap into the world's biggest Muslim-majority country, and one that continues to restrict to foreign lenders.
It seem like the ongoing bitter battle between the managers of Sabana Shariah-compliant Reit and some disgruntled investors will come to a head at an extraordinary general meeting End of April which has been called at the behest of 66 unit holders who began a campaign against Sabana Real Estate Investment Management.
Reason was dissatisfaction with the Reit manager's lacklustre performance and 3 years of falling distributions per unit. At the EGM 4 resolutions will be tabled one of which ask for Sabana Real Estate Investment Management to be removed.
Trustbank from Suriname is one step closer to open its doors to customers interested in Islamic banking products after it signed a new licensing deal with the Kuwaiti based software vendor, Path Solutions, to implement Islamic Banking and Investment System as a new core banking platform.
This is major thing for the Path Solutions, as it’s the company’s first Islamic core banking software deal in the Americas. The company won the deal as one of three shortlisted vendors besides Oracle FS, Temenos. Path Solutions won the deal because of ist Sharia compliance, product functionality and technological superiority.
Yielders, a UK based equity crowdfunding provider, has just attained the first Islamic Banking certification and become the first FinTech firm in the West to do so. Yielders have developed something that looks pretty innovative, pragmatic and could prove tob e competitive in a low yield environment. Islamic banking has been around for more than 60 years. However, Sharia compliant Financial institutions only manage 1% of the global assets.
The secretary general of the IFSB will retire next week, according to a statement. Jaseem Ahmed will step down middle of April after leading the IFSB 6 years.
The process for the selection of a new secretary general has begun. Zahid ur Rehman Khokher acting as interim secretary general.
To meet the SDGs by 2030, more data is needed and collecting it can be time-consuming and expensive. Governments can select the data collection methods and analytical tools that will best help them reach their SDG targets.
Fortunately, there are several approaches to this. Longitudinal data on household expenditure can be a better way of measuring poverty and income inequality in Asia and the Pacific compared to the cross-sectional data analysis currently used across the region. Longitudinal data tracks the same kinds of data over long periods of time. Cross-sectional data is collected from many subjects at a single point in time.
The Bank of England said it would develop a sharia-compliant liquidity tool for use by Islamic banks, to attract business from the industry's core centres. London has for some time sought to position itself as a global hub for Islamic finance.
The central bank has issued a consultation paper on a fund-based deposit model, that would help Islamic lenders to meet regulatory requirements for liquid asset buffers. It was stated, that the facility is unlikely to be ready before the spring of 2018, and it has yet to decide on whether it will develop a liquidity insurance facility. However, the tool would be a welcomed development for Britain's Islamic banks. These include Gatehouse Bank, the Bank of London and the Middle East, Al Rayan Bank and a unit of Qatar Islamic Bank.
The pricing would be comparable with conventional tools, and attractive for Islamic banks.
Al Hilal Bank announced appointment of Alex Coelho as new chief executive officer.
With more than two decades of experience in the global financial industry, he will be responsible for reinforcing the Al Hilal Bank’s position as a leading Islamic bank in the UAE and Kazakhstan.
In the past, Coelho had leadership roles between the Middle East and New York, and co-led global financial institutions coverage in the US, Canada, Latin America, Asia and Europe, according to a statement.
The IFSB sees growing demand for fintech within the Malaysian Islamic financial services system, because customers are looking for alternatives.
IFSB secretary-general Jaseem Ahmed said „demand for fintech within Islamic finance had increased following the global financial crisis“ and further that “There are tremendous opportunities for fintech within Islamic finance. In the aftermath of the global financial crisis, there has been a loss of confidence, so people are looking for alternatives,”
Jaseem added that commercial banks are really taking up fintech to reach out and improve the attractiveness of their products at a lower cost and also said that he expected sukuk issuance to continue remaining strong in Malaysia.
The IFSB event, which ends tomorrow, comprises forums that bring together key stakeholders of the Islamic financial services industry.
The International Finance Magazine (IFM) granted Eng. Ziad Tarek Aba Al-Khail, CEO and Managing Director of Aljazira Capital, the “Best Brokerage CEO – KSA Award” in 2016. Aljazira Capital was also granted the “Fastest Growing Islamic Brokerage House-KSA Award” in 2016.
Ziad Aba Al-Khail was really proud of the IMF’s appreciation of the performance. Such a constant international recognition of his team is a living example of our constant commitment to provide our customers with the best services as well as adopt up-to-date strategies in world trade in order to create new horizons for their customers and give them access to regional and global capital markets.”
Ziad Aba Al-Khail also expressed his gratitude and thanks to Aljazira Capital team whose efforts led to this achievement, and added: “This remarkable achievement is the fruit of our company strategy in rendering and managing an integrated system of Islamic-oriented financial services and investment solutions of unique value and high quality.”
Samantha Lord-Konare converted to Islam six years ago and then she found herself in a quandary because of a student and credit card loan that her new religion prohibited. Lord-Konare vowed not to use her credit card but resolving the issue of her student loan was more challenging.
She consulted the imam who presented her with four options. She could pay off her loan in one lump sum, obtain an interest-free loan, receive the money as a gift, or do her best to pay off her student loan as quickly as she could. "Of course, I had to choose the last. I could never ask someone for that amount of money," said Lord-Konare.
Islamic scholars say there is a clear prohibition on usury in the Koran. The Shariah also stipulates that Muslims should acquire wealth in a legal and ethical manner; any element of usury, gambling or chancing is forbidden.
NCB Capital, Saudi Arabia’s leading provider of wealth management and investment services, and the Kingdom’s largest asset manager, has announced the launch of its Pan European Real Estate Fund with more than $150 million raised through a private placement.
NCB Capital has partnered with Fidelity International, a leading global asset manager, to invest in commercial properties, including office, retail, logistics/industrial and mixed use, located in key European property markets including France, Germany, Benelux and the United Kingdom. Favorable currency conversion rates, robust legal and regulatory environments, coupled with consistent growth expectations of the core European economies make this an opportune time to invest in a solid real estate market.
Katharine Budd, the chief executive and co-founder of Now Money, a Dubai-based fintech start-up, explains how fintech works.
This is a new financial services phenomenon. While nowadays you might be able to operate your bank account from a website or mobile app, but the systems behind these online user interfaces have barely changed since they were implemented in the 1970s. The international payment transfer system Swift still runs on the telephone systems. This means that no matter how nice the front-end website your account is on, the transactions displayed are still run off legacy systems, which can lead to legacy issues such as delays in processing transactions and potentially losing the transaction in the system altogether.
New start-ups are innovating where banks are stagnating and are cooperating with regulators and cybersecurity experts and developing new technology. These organisations have become know as “fintechs” and their purpose can range from offering customers alternative ways to bank, usually through mobile, to using advanced analytics to provide investment recommendations.
Saudi Aramco has plans that would raise 11.25 billion riyals (3 billion US-Dollar) from its debut Islamic bond. That would boost the size of the sale because of investor demand. King & Spalding Partner Rizwan Kanji weighs in on "Bloomberg Markets: Middle East."
GCC is expected to account for about 31% of sovereign bond issuances from emerging markets this year. The expected 2017 sovereign issues will be distributed among GCC, Eastern Europe Middle East Africa and Latin America, according to forecasts by Bank of America Merrill Lynch.
Issues from the GCC has been increasing rapidly mainly due to low oil prices, with some new issuers in 2016, and analysts expect the 2017 issuance to continue to be high. Among those, Kuwait inaugurated the external sovereign debt market with $8 billion (Dh29.3 billion) to finance a budget deficit resulting from low oil prices. Sovereign issuance for 2017 is forecast to be 6% higher compared to the previous year. In 2016, sovereigns issued $135 billion, mainly from Latin America, while corporates issued about $300 billion, mainly from Asia. Analysts expect gross sovereign external issuance to come in at $144bn in 2017.