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Moody's - Decline in #sukuk issuance to be limited by GCC financing needs

Moody’s expects sukuk issuance to modestly decline by 5% this year to about $170 billion because of the coronavirus crisis. Despite the decline, 2020 will still see the second highest sukuk issuance total ever, following a 36% increase in 2019. Total issuance in the first six months of 2020 dropped to $77 billion, down 12% from the same period last year, as activity in Malaysia and Indonesia flagged. Issuance in southeast Asia dropped by 25%, while volumes in the Middle East rose 7%. Volumes are likely to rebound in the second half of 2020, as governments raise money to finance their responses to the coronavirus crisis.

Fitch Named Best Islamic Finance Rating Agency for Fourth Year

Fitch Ratings has been recognised as the Best Rating Agency for Islamic Finance for the fourth consecutive year by The Asset magazine. Fitch has a dedicated sukuk rating criteria and provides takaful-specific considerations within its global insurance rating criteria. It also provides specific consideration to environment, social and governance factors in its ESG scores in rating Islamic banks. Recent landmark deals in which Fitch participated include the first sovereign green sukuk, issued by Indonesia in 2018, and its follow-up issue in 2019 and 2020.

Mideast Islamic banks, investors urged to expand operations to #Philippine market

Islamic banks and investors from the Middle East have been urged to expand their operations into the Philippines which is currently seeing a growing halal industry. Speaking at the webinar ‘Islamic Finance as Vehicle to Economic Recovery’, Philippine Central Bank Managing Director Atty Arifa Ala highlighted the potential of the Islamic finance industry in her country. She also invited foreign Islamic banks and investors, especially from the Middle East to expand their operations in the Philippines. Ala highlighted the new law Republic Act No.11439 or ‘An Act Providing for the Regulation and Organization of Islamic Banks’. She reiterated that the new law was created as an expanded Islamic banking system that involves tax neutrality, stronger risk management, ethical financial stability, further establishment of Islamic banks and other Islamic financial activities.

Dubai Islamic Bank reports Dh2.1b first half 2020 net profit

The Dubai Islamic Bank (DIB) reported a net profit of Dh2.11 billion for the first half of 2020. Due a difficult quarter, DIB continues to demonstrate healthy profitability whilst ensuring prudence in growing the balance sheet.

Islamic Banks: Structural Advantage

Banks who are in the Gulf Cooperation Council (GCC) states, will have weaker earnings and profitability this year, due deterioration in nearly all their sources of income said Junaid Ansari, head of Research and Strategy at Kamco Invest, Kuwait. Conventional banks and the Islamic financial institutions will record weaker performance he said, but Islamic banks, due to their structure and focus, may cope better.

Collaboration Between Industry and Academia, Key To Developing Islamic Finance In Nigeria

Dr. Umar Oseni said that the collaboration between Islamic finance practitioners and academia will be vital to the development of Islamic Finance Law in Nigeria. Dr. Umar Oseni also said that western models dominate financial markets and that conventional banking has existed for over 200 years, while the Islamic finance reemerged towards the end of the last century with Tabung Hajji, West African Muslim Bank, and IsDB which was established in 1975 and this has brought improvement in the Islamic finance industry.

‘Economies must rely on equity, not debt,’ expert outlines globalization challenges during virtual session

The Western economies have relied on debt has got to stop says former Deputy Governor at the Bank of Canada. Governments and central banks have got to start following more symmetrical monetary and fiscal policies and that the world needs to look at debt reduction options and “needs a wholesale embrace of Islamic finance.”

How relief measures impact Islamic banking clients

Due the Covid-19 pandemic crisis all banks have introduced measures to help customers that are struggling. Islamic banking are offering now cirisi products and are more flexible to their costumers and their needs.

Tribune/Finance islamique : comment la #Guinée peut-elle saisir les opportunités de l’émission des Sukuk (emprunt obligataire islamique) ?

Plusieurs pays africains se lancent depuis quelques années dans cette finance d’éthique et prometteuse. Présentement, les différents gouvernements de l’espace UEMOA (Union économique et monétaire ouest-africaine) ont déjà élaboré un cadre règlementaire à travers la Banque centrale des États de l’Afrique de l’Ouest (BCEAO) pour réglementer l’émission des Sukuks souverains dans leur zone. Des États de l’UEMOA ont déjà émis des Sukuks à hauteur des centaines de milliards de francs CFA. Il est important que la Guinée emboite les pas à ses pays voisins pour prendre en compte la finance islamique dans son écosystème financier en adoptant ce modèle et l’harmonisant avec les modèles classiques dans le but de mener une politique de pluralismes dans l’attraction des investissements étrangers pour les secteurs privés et publics.

Abdulkader Thomas To Speak on Islamic Trade Finance: Challenges and Opportunities in #Nigeria

WebTV's Islamic Finance Weekly will be featuring a robust conversation with Abdulkader Thomas on Islamic Trade Finance, Challenges and Opportunities in Nigeria and Africa. Key discussion points include: understanding the concept of "Islamic Trade Finance"; how the Islamic Trade Finance Framework is helping to boost Intra-African trade; challenges and opportunities for integrating Islamic Trade Financing to support African businesses and SMEs; how Islamic Finance can be adopted to support the development of the economy and lift millions of people from poverty.

Islamic fintech industry sets strategic priorities to drive financial inclusion

The stakeholders of the Islamic fintech space have determined nine strategic priority areas that will further reinforce and enhance financial inclusion in Malaysia. These include the setting-up of a national Islamic fintech taskforce; the renewed focus of enhancing digital and Islamic financial literacy, especially within B40 segment; developing smart partnerships among ecosystem players; and ensuring there was greater readiness among Islamic institutions to embrace digitalisation. The priority areas were drafted during the Islamic Fintech Dialogue 2020: Driving Financial Inclusion through Islamic Fintech held virtually in May. Malaysia Digital Economy Corporation (MDEC) CEO Surina Shukri said the end-goal was to empower the B40 group and the micro, small and medium enterprises.

#Algerie : Aymen Ben Abderrahmane, la finance islamique lancée en août

Le ministre algérien des Finances, Aymen Ben Abderrahmane, a annoncé la mise sur le marché des produits de la finance islamique. Ben Abderrahmane a dévoilé que deux banques publiques ont achevé les procédures d’obtention d’une fatwa, afin de faire adapter les produits à la charia et que ces produits seront mis sur le marché à compter du début du mois d’août prochain. Il s’agit de la Banque nationale d’Algérie (BNA) et de la Banque de l’Agriculture et du développement rural (BADR). L’Algérie compte 30 établissements bancaires, dont sept publics, et plus d’une vingtaine d’institutions étrangères, en provenance particulièrement des pays du Golfe et de la France ainsi qu’une banque britannique et une autre espagnole.

CIMB hunts for marcomms and CSR lead for group Islamic banking

CIMB Bank is looking for a director, Islamic marketing, communications and CSR, group Islamic banking (GIB). The appointed individual will develop and enhance the CIMB Islamic brand platform in line with business aspirations. The individual will also offer strategic marketing and communications support to GIB consumer banking, commercial banking, transaction banking, wholesale banking and asset management. The individual is expected to have at least 10 years of experience of relevant banking background in established banks or financial institutions, in-depth knowledge of Islamic marketing, communications and corporate responsibility, and working knowledge of Shariah and governance.

Emirates Islamic announces First Half 2020 Financial results

Emirates Islamic announced its financial results for the half year ending 30 June, 2020. The Bank reported a net profit of AED 12 million for the first half of 2020. The total income is of AED 1.1 billion, lower by 15% year-on-year. Funded Income margins are lower by 25 bps year-over-year due to lower profit rate environment. Total assets stand at AED 64.2 billion, decreased by 1% from end 2019. Customer accounts stand at AED 45 billion, broadly flat from end 2019, while current and savings accounts balance up 10% from end 2019.

#UAE’s personal wealth shoots past $400 billion mark

According to Boston Consulting Group (BCG), personal wealth held by UAE residents surged to $400 billion between 2014 and 2019, with 48.5% of it held by millionaires in 2019. The consultancy reckons the ranks of UAE’s millionaires are expected to grow by 4.2% annually over the coming four years. The UAE represented 7.1% of the share of personal wealth pool in 2019 in the Middle East and Africa, having grown by 3.8% annually to $400 billion between 2014-19. The consultancy says the wealth management industry's value proposition will change over the next two decades, new forms of interaction will evolve, as well as new business models.

Faisal Islamic Bank's profit down 54% in Q1 2020

The consolidated financial results of Faisal Islamic Bank of Egypt showed a 53.6% year-on-year (YoY) drop in its net profits to EGP 483.53 million in the first quarter (Q1) of 2020 from EGP 1.043 billion. Meanwhile, the bank’s revenues fell to EGP 2.63 billion in the January-March period, compared to EGP 3.22 billion in the corresponding period a year earlier. It is worth mentioning that in 2019, Faisal Islamic Bank of Egypt reported consolidated net profit of EGP 2.78 billion, up from EGP 2.56 billion in 2018, including minority shareholders’ rights.

#Sukuk Market Developing Fastest in #Saudi Arabia

Launched in 2017 with the aim to diversify funding, the Saudi finance ministry had planned to raise US$31.5 billion of Sukuk in 2019. A new ‘primary dealer’ scheme for local-currency government sukuk was launched in 2018, under which five local banks buy the sukuk directly from the government and then make a market by quoting two-way prices to other investors. Additionally, Saudi regulators introduced a number of incentives in 2019 for corporate sukuk issuers and investors to encourage further issuances. Lower regulator fees and zero tax/zakat on investments in domestic sovereign sukuk also promise a more active and liquid secondary market.

Sukuk Issuance Cross $1 Trillion Mark

Since the issuance of the first modern sukuk in 1996, cumulative issuance of sukuk has crossed the US$ 1 trillion mark. As of the end of 2018, outstanding sukuk were valued at US$ 469.7 billion across 2,887 sukuk. The Saudi and Malaysian governments were the largest issuers in 2018, at US$ 17.1 billion and US$ 13.9 billion. Malaysia maintained its lead position in terms of issuances, boosted by the return of short-term murabaha sukuk from Bank Negara Malaysia. The central bank resumed sukuk issuances after a three-year hiatus. It issued US$16.1 billion in shortterm sukuk during the second half of 2018.

Siraj Holding completes deal for Al Hilal Bank's Islamic insurance business

Private investment firm, Siraj Holding, has officially acquired Al Hilal Takaful, the Islamic insurance business and operations of Al Hilal Bank. The transaction, which was initially expected to be complete in the first quarter of 2020, was given the green light by shareholders, the Securities and Commodities Authority (SCA) and the Insurance Authority. The firm plans to rebrand and align with the new leadership and group operating model following the completion of regulatory formalities. A new group of board members was appointed as part of the acquisition, while the operations of the company will be led by Thomas Joe as chief executive officer.

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