IslamicFinance.de mission is to support the Islamic finance, banking and takaful industry with news abstracts, opinions, a free encyclopedia, a Twitter page and networking.

Coronavirus in #UAE: Easa Saleh Al Gurg Group donates Dh13 million

Easa Saleh Al Gurg Group has announced donations worth Dh13 million aimed at supporting the healthcare sector and schools in Dubai to support the country amidst the global coronavirus (Covid-19) outbreak. The Easa Saleh Al Gurg Group Charity Foundation announced a Dh3 million donation to support the UAE's distance learning initiative at public and non-profit schools in Dubai. The Group also donated Dh10 million to support the Dubai Health Authority's preventive measures against the novel coronavirus. Furthermore, Al Gurg Group has offered tenants of its residential buildings the option of postponing rent payment for three months.

Islamic Development Bank comes to the rescue of virus-hit members

The Islamic Development Bank (IsDB) has set up an emergency funding line to tackle the coronavirus crisis. The Strategic Preparedness and Response Facility with a volume of $730mn is established in order to support the member countries and to mitigate the negative health and socio-economic impact of the pandemic. The emergency funding includes $280mn from the IsDB’s Bank and Islamic Solidarity Fund for Development to be used for sovereign projects and programmes, $300mn from IsDB’s division International Islamic Trade Finance Corporation to support trade finance among member countries, as well as $150mn to be applied to insurance coverage.

Takaful insurer gets approval for majority stake sale

Egypt’s regulators have approved the sale of 75% of Tokio Marine Egypt Family Takaful Co. for nearly 85 million Egyptian pounds ($5.4 million). Hermes Finance Group and GB Capital will each buy 37.5% of the takaful insurer. Mr Reda Abdel Moaty, FRA vice chairman, said that Cabinet approval is required under the law for investments in Egyptian insurance companies exceeding 10% of the issued shares.

COVID-19 and Islamic Law Roundup (2/2)

Countries and communities around the world are working to contain COVID-19 and mitigate its effects. The following digest represents a variety of sources in which Islamic law was invoked in the decision making process.
Kuwait amends the adhan to urge prayer at home amidst mosque closures. Egypt closes all mosques, nationwide, in light of COVID-19. Mosques from Istanbul to Mogadishu wrestle with decisions to close in light of coronavirus.
Worshippers around the world risk infection with communal prayer, defying orders to pray at home.

BOFIA Act Should Be Reviewed To Enhance Islamic Banking In #Nigeria - Abdul -Wahab Saadudeen

According to Imam Abdul-Wahab Saadudeen, the Banking and Other Financial Institutions Act (BOFIA) should be reviewed to enhance Nigeria's Islamic banking industry. He believes the regulatory bodies must take into cognizance the principles of Islamic Finance to create an enabling environment for its growth in Nigeria. The Islamic scholar noted that over the years, the Islamic Banking legal framework has not been reviewed to reflect the developments taking place now. He made a strong call for a competent Sharia Advisory Board to ensure that Islamic Banks and Financial Institutions are not exposed to avoidable systemic risks. He also called for more clarity in Islamic Banking because it seeks to boost financial inclusion, achieve sustainable development and economic prosperity for all Nigerians.

New Islamic endowment trust seeks to be UK’s first waqf to combine commercial and social investments

A new charitable foundation is being set up in the UK that aims to become a £1 billion waqf fund combining commercial and social investments. Sultan Choudhury, Executive Chairperson of the new One Endowment Trust (OET) said that the vision of the trust is to present Islam in a positive way through contribution to UK civil society. OET’s first investment is a £1.75 million 21 residential apartments with planning for four more in Creative Lofts in the Yorshire town of Huddersfield. The returns generated from OET’s portfolio of assets will cover the Trust’s costs and also be reinvested in designated social projects with partners. OET expects to begin investing in social projects particularly in the area of social care in 2022.

Dubai Islamic Bank shareholders approve 35 per cent dividend

Dubai Islamic Bank (DIB) announced that the Annual General Meeting has approved the bank’s 2019 financial statements and other tabled resolutions. For the year 2019, DIB reported a net profit of over Dh5.1 billion, the highest ever in its history. The shareholders also approved the dividend pay-out of 35 fils per share, increase in the foreign ownership limit in the bank’s share capital from 25% to 40% and the election of DIB Board of Directors. With the recent acquisition of Noor Bank, DIB is set to become one of the largest Islamic banks in the world, with total assets exceeding Dh275 billion ($75 billion).

Bank Nizwa Discusses Growth of Islamic Finace With Local Treasury Dealers and Financial Institutions

Oman's Bank Nizwa recently hosted a special dinner event for local Treasury Dealers and Financial Institution managers. With over 60 guests the gathering was a networking opportunity for industry professionals to share views and discuss the latest trends of Islamic finance. Islamic banking in Oman has shown robust growth with Islamic banking entities providing financing to a record of RO 4 billion by the end of 2019, a growth of 11%. Since its initiation in December 2012, Islamic banking now constitutes 13.9% of the overall Oman banking system assets. Bank Nizwa has been organizing such events to clients with other participant banks and financial institutions on a variety of important topics. The bank has partnered with IFN and Takaful Oman to raise awareness over Islamic finance services by organizing specialized forums and seminars across Oman.

Islamic Fintech Startups On The Rise In Southeast Asia

Islamic fintech firms in the Southeast Asian region are providing digital services with wide appeal. The services—especially peer-to-peer financing and crowdfunding—can easily be used by the world’s 1.9 billion Muslims, and the tech-savvy firms are able to compete well with conventional Islamic banks. For example, Alami has a sharia-compliant P2P service to link funders with small and medium-sized businesses in Indonesia. So far, the company has steered P2P funding into over 30 businesses and is recruiting for expansion. Ethis operates a variety of sharia-compliant crowdfunding platforms. Its Indonesian housing venture has built over 8,000 low-cost homes with investments from 65 countries, and a new Ethis platform now provides crowdfunding for real estate projects in Dubai. Two other promising firms are Investree, a P2P marketplace for a range of business financing needs, and Ammana, with similar services.

British Museum to exhibit 150 works by Middle Eastern artists in new major exhibition

The British Museum has emerged as one of the foremost sites for collecting and exhibiting Middle Eastern art in the UK. Much of the museum’s prominence is due to Venetia Porter, its curator of Islamic and contemporary Middle East art. The 150 works on paper that the museum will show are not loans, they have been acquired by the museum. The exhibition in the autumn will be accompanied by a major catalogue of the acquisitions and a conference. Among its subjects will be those of conflict and exile, two key areas for recent art of the region, explored by well-known artists such as Dia Azzawi, Hanaa Malallah, and Hayv Kahraman. There are also works of Syrian artists affected by the country’s civil war and more recently from Lebanon.

Net profit of Emirates Islamic increases by 15 percent

In 2019, Emirates Islamic net income grew by 15% to stand at AED1.061 billion. Total profit rose by 8% to AED2.7 billion, and financing and investing receivables were at AED37.5 billion, climbed by 4% from end 2018. Customer deposits reached AED45.3 billion, which is a rise of 9% from end of 2018; recent and saving accounts balances show 63% of total customer deposits, as Emirates Islamic reported. Chairman Hesham Abdulla Al Qassim said the bank delivered strong results for the year, with net profit of AED1.061 billion, the highest ever in the bank's history.

Saudi based Alinma Investment stuns the market with their Sukuk Bond ETF launch

Alinma Investment has recently launched its Sukuk Bond ETF in order to provide a low risk investment vehicle for the end investor. The world is currently awash with volatility and there has never been a better time to reap the benefits of a well-diversified multi-asset model portfolio. Until the recent launches of Sukuk Bond ETFs, it had proven very difficult to construct a Model Portfolio for GCC based investors, but this is no longer the case and it is not out of the question that this opening up of the Saudi Arabia Government Bond market could prove a key step going forward for other investors outside of the region. Alinma’s stunning ETF launch has more than a USD300 million in seed, so this fund is already large enough to be used by institutional investors across the globe.

New cat bond an important piece of #Mexico’s social protection strategy: Government

Mexico has newly issued a $485 million World Bank facilitated catastrophe bond, the IBRD / FONDEN 2020 transaction and sees it as an important part of the country’s social protection strategy. The new cat bond will provide the country with a four-year source of parametric earthquake and hurricane insurance protection, replacing the maturing coverage of the $260 million 2018 issuance IBRD CAR 118-119. The Government highlighted that Mexico is particularly exposed to natural disaster risks, with some 40% of the national territory, and about a third of its population, exposed to hurricanes, storms, floods, earthquakes and volcanic eruptions. The transaction was issued in four tranches, two exposed to different levels of earthquake risks and one each to Atlantic and Pacific hurricane risks.

Islamic fintech shows how inclusivity makes good business sense

Customers across the world are quickly taking to new mobile-based payment technologies; contactless and e-wallets taking the lead over cold, hard cash. But not every nation is moving quite as fast. In Indonesia there are some concerns about whether the adoption of digital payments and other fintech services are compliant with Islamic laws. Recently, the top Muslim clerical body in Indonesia has issued an edict deeming virtual money acceptable, as long as it meets specific conditions. GoPay has already partnered with the Indonesian Mosque Council to enable digital donations, including the practice of almsgiving, zakat. Islamic fintech is a good example of the business benefits of fostering inclusivity and acceptance among local markets. Inclusivity is not only the right thing to do, but it makes good business sense as well. Out of Indonesia’s 270 million population, half lack bank accounts but have mobile phones. As cash continues to become obsolete, Islamic fintech members will surely profit.

Shariah gold ETF rises as safe havens in demand

Malaysian Affin Hwang Investment Bank expects gold prices to average higher in 2020, helped by sustained accommodative monetary policies among major central banks. Using the TradePlus Shariah Gold Tracker exchange-traded fund (ETF) as an avenue to invest in the precious metal, Affin Hwang believes the ETF’s fair value is RM2.30. In 2019, the price of gold surged by 18.9% year-on-year (YoY) to US$1,523.1/oz compared to a decline of 2.1% in 2018 to US$1,309.3/oz. In the near term, Affin Hwang Capital believes concerns over the recent Covid-19 outbreak will likely continue to drive safe-haven flows into gold. Due to geopolitical concerns and low-interest rates, the World Gold Council noted that holdings in gold-backed ETFs hit an all-time high of 2,885.5 tonnes in 4Q19 compared to 2,858.8 tonnes in 3Q19 mainly from North American and European-listed funds.

How the #UK tech startup scene has become a powerful engine for Islam

Today, technology and Islam are seeing a valuable convergence in its contribution to exercising faith in a modern era. Technology has been a real driving force in the introduction of Islamic business banking in the UK, with more than 20 banks now offering Islamic financial products. Recent technological innovation in augmented reality has seen a team of UK entrepreneurs create the Islamic GPS app, designed with a 360 degree interactive view to help consumers find Islamic heritage spots and halal sites. Britain is now also home to a host of tech platforms looking to support charities. The creation of MyTenNights showed sharp demand for automated, personalised nightly donation plans during Ramadan. To ensure they maximise their positive impact, Muslims are using the nightly automating donation platform to remove the admin of charitable donation.

Dubai Islamic Bank shareholders approve Noor Bank acquisition

Dubai Islamic Bank (DIB) received shareholder approval for the acquisition of unlisted Dubai-based Noor Bank. With the acquisition, DIB will become one of the largest Islamic banks in the world, with total assets worth 275 billion dirhams ($74.9 billion). Shareholders gave approval for the acquisition through an increase of DIB’s capital from 6.6 billion shares to 7.2 billion shares, with a share swap ratio of 1 new share in DIB for every 5.49 Noor Bank shares, translating into an issuance of about 651 million new DIB shares. The deal comes after a wave of mergers in the UAE’s banking sector on the back of tougher competition and regulation, coupled with a slowing economy and a slide in house prices.

#Nigeria: Islamic Finance - Opportunities, Challenges and Policy Direction

Despite its growing acceptability around the world, there are untapped opportunities that can be accessed through Islamic finance in Nigeria. When the Central Bank of Nigeria (CBN) granted approval to the defunct Habib Bank to operate an Islamic banking service window, the attempt did not register a significant success but it kickstarted Islamic banking in the country. The Securities and Exchange Commission has issued Rules on Islamic Fund Management and Sukuk Issuance. Similarly, the Nigerian Stock Exchange and Lotus Capital have developed an Islamic capital market Index. The National Pension Commission had in 2019 issued Regulation on Investment of Pension Fund Assets which recognised Government Sukuk as one of the accepted classes of assets for pension funds investment. In all, the Nigeria Islamic Finance Industry is fairly backed by regulations, sound supervisory structure and fragmented legal framework.

Impact de la finance participative sur les Objectifs de développement durable (ODD)

La Société islamique pour le développement du secteur privé (ICD) et Al Akhdar Bank organisent une conférence et des masterclasses autour de l’impact de la finance participative sur les Objectifs de développement durable (ODD). En effet, l’impact investing ou investissement responsable devient une composante essentielle des stratégies d’investissements. La finance participative est considérée comme un levier fort permettant d’élargir les horizons de l’impact investing. Le lancement récent de ce marché au Maroc permettra aux acteurs impliqués de jouer un rôle significatif dans la mobilisation des ressources complémentaires. Par la même occasion, ICD apprécie les efforts entrepris par Al Akhdar Bank en matière de fédération des acteurs clés marocains autour des valeurs de l’impact investing.

Nasser Hideur, Directeur général d'Al Salam Bank #Algérie : «La finance islamique contribue à la mobilisation de l'épargne»

Lors du colloque international sur la finance islamique le ministre délégué à la prospective et aux statistiques, le docteur Bachir Messaitfa, avait réaffirmé l'intérêt des pouvoirs publics de voir ces activités financières se développer et contribuer de manière plus importante à l'effort de mobilisation de l'épargne nationale, de financement de l'économie et de bancarisation de la société. Les sukuk étant adossés à des actifs tangibles peuvent constituer une alternative pour toute entité de droit public ou privé désirant lever des fonds à travers des mécanismes de marché dans le respect des principes de la chari'a. En matière de crédit, la formule de vente par tempérament de véhicules préalablement acquis par la banque a suscité un immense intérêt auprès des citoyens.

Syndicate content