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.

Foundations Help Launch Financial Inclusion Nonprofit

Sponsored by the Bill & Melinda Gates Foundation Mojaloop software project has announced the launch of the Mojaloop Foundation. With additional support from founding sponsors Omidyar Network, the Rockefeller Foundation, Coil, Google, and ModusBox, the foundation will work to advance its free open-source software as a public good in service of financial inclusion globally. The software serves as a blueprint for how to simplify and reduce the cost of payment interoperability. This will enable banks, digital service providers, government agencies, NGOs, and other entities to develop tools that increase opportunities for low-income and unbanked individuals to access financial services.

Unified legislative framework for Islamic finance launched

Sheikh Hamdan Bin Rashid Al Maktoum announced the launch of a new initiative to create a unified global legal and legislative framework for the Islamic finance sector. The framework is set to enable the Islamic economy to expand its reach and responds to calls for greater standardisation within the sector. A memorandum of understanding has already been signed between Dubai Islamic Economy Development Centre (DIEDC) and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Furthermore, Norton Rose Fulbright has been recently appointed to provide legal advice in drafting the code for the global framework.

Islamic bank, Türk Eximbank ink $100 mln deal to aid SMEs

The Islamic Development Bank (IsDB) and Türk Eximbank signed a syndicated murabaha deal of $100 million to finance small and medium-sized enterprises (SMEs). The new murabaha facility is expected to increase companies' export capacity and workforce, similar to the previous one. According to IsDB, the new facility will play a significant role to alleviate the economic impact of the COVID-19 pandemic on the manufacturing sector by providing long-term funding to companies to finance their capital expenditures.

South Africa working on rand-denominated #sukuk issue

The Republic of South Africa is working on a rand-denominated sukuk for the financial year 2020/2021. Details regarding the size, tenor and structure of the Shariah-compliant notes will be made in due course. The government may also consider issuing a second sovereign U.S. dollar sukuk in the long term. South Africa issued its first-ever international sovereign sukuk in 2014. The deal consisted of a $500 million 5.75-year note, offering a profit rate of 3.90%.

Launched World’s First Halal Angels Network to promote Innovation, Entrepreneurship & Startups to tap $5 trillion, Halal consumer market

The World’s First Halal Angels Network was launched to promote Innovation, Entrepreneurship & Startups to tap the $5 trillion Halal consumer market. It was launched during the COVID-19 pandemic to help investors, businesses, entrepreneurs & startups overcome these challenging times. The network is founded by Indian American Dr. Tausif Malik and is the first Angels Network backed by Blockchain technology. The areas of interest for investments would be future technologies (Blockchain, Fintech AI, etc), Modest Fashion & Cosmetics, Retail, Pharmaceuticals, Food Cafe & Restaurants, Processed Food & Tourism. Halal Angels Network is setting up offices in GCC, Europe, and South East Asia and is planning to host Halal Angels & Venture Capital Two Day Summit 2021, for Networking, Startup Showcase & Strategic Partnership.

Islamic finance gaining stronger foothold in #China

As this year’s GDP growth of China is forecast to reach a 44-year low of just 2.5%, there is enough ongoing in the background to prepare for a post-coronavirus rebound. One such sector bustling with activity is Islamic finance which has grown in importance since China embarked on the program of the New Silk Road, officially known as Belt and Road Initiative (BRI). Expanding across Central and Western Asia and eventually the Middle East, the BRI leads through many Islamic economies and jurisdictions, so it is obviously advantageous for Islamic finance and halal trade to join and contribute to the BRI. There is also development of the sector within China itself. Malaysia’s Affin Islamic Bank together with Hong Kong-based Bank of East Asia has been looking into the opportunity of launching Islamic banking services in Urumqi, the capital of Xinjiang. China’s Ningxia and Xinjiang autonomous regions are home to a Muslim population of about 25mn.

PSE delays Rs200bn #sukuk

The Pakistan Energy Sukuk-II (PES-II) has been delayed by 7-10 days. The Power Holding Limited (PHL) is issuing the second issue of the Energy Sukuk to address the liquidity constraints being faced by the country’s power sector. Sources said the delay occurred as the government had to notify certain rules and regulations which could be completed in a couple of days.

Abu Dhabi based NMC Health’s trading arm sees major job cuts

More than 300 staff members at NMC Trading have been laid off and more are likely to follow. It was on April 9 that NMC was placed under administration on the UK High Court’s orders, following a request submitted by ADCB, the UAE bank with the highest loan exposure to the company. Letting go of its trading division could bring in some much needed funds for NMC Group. It's also part of the strategy to focus exclusively on core operations made up of its hospitals and clinics.

Saudi's Al Moammar Information Systems signs $77mln Islamic loan

Saudi Arabia’s Al Moammar Information Systems (MIS) signed an Islamic facility agreement with Riyad Bank for 290 million Saudi riyals ($77.15 million). The revolving facility will be renewable every year. MIS’s listing on Tadawul last year marked the first listing for a company from the IT sector on the Saudi bourse. The company reported a net profit after zakat and tax of 76 million riyals in 2019, compared to 64.5 million riyals in 2018. Revenues rose to 997.5 million riyals last year, compared to 886.2 million riyals in 2018.

International Islamic Trade Finance Corporation extends US$100m COVID-19 Emergency Financing for purchasing wheat and sugar in favor of Egypt

The International Islamic Trade Finance Corporation (ITFC) has signed a US$100 million financing agreement with the General Authority for Supply Commodities (GASC) to cover the Egyptian Government’s commodity needs during the Corona outbreak. ITFC CEO Hani Salem Sonbol said the financing supports the importation of critical basic commodities such as wheat and sugar. The wheat policy is of strategic importance to the Egyptian Government to ensure food security for all Egyptians. Since 2018, ITFC has been supporting the Governments’ efforts through a trade finance facility benefiting the GASC, Egypt’s largest wheat purchaser.

#Bahrain’s Al Salam Bank exits $182.5 mln U.S. multifamily real estate

Bahrain's Al Salam Bank has sold a portfolio of seven multifamily assets in the United States for $182.5 million. Al Salam acquired the real estate assets in North Carolina and Texas in 2016. The bank said the sale price exceeds the original underwriting for the portfolio. Al Salam Bank’s head of private banking Ali Habib Qassim said the exit comes at an opportune time ahead of the uncertainty of the current COVID-19 crisis.

Many Join Saudi Online Platform to Teach Arabic Calligraphy

The Saudi Ministry of Culture announced its launch of the first electronic platform to teach Arabic calligraphy and Islamic decoration. The electronic platform will be supervised by a group of professional calligraphers from the Kingdom and the Arab world. The platform offers various training courses, including professional courses in the types of Arabic calligraphy, making calligraphic paintings and artwork, letter formations, gilding, Islamic decoration, drawing and coloring, the art of paper marbling and Ebru (needle art). The platform will also give the trainee the opportunity to develop Arabic computer fonts by learning designs and programming fonts. The online platform was launched in 2018 and has over 19,000 users from 30 different countries around the world.

Alwaleed Philanthropies allocates $30mln to fight COVID-19

Alwaleed Philanthropies has allocated $30 million to a variety of diverse initiatives to battle against COVID-19 in collaboration with a variety of partners. The fund, chaired by Prince Alwaleed Bin Talal Bin Abdulaziz Al Saud, includes an additional $20.6 million on top of $9.4 million of existing funds, which have been reallocated for the fight against COVID-19. Continuing to support the Middle East and North Africa, the fund includes a significant allocation towards initiatives including allocation to UN-Habitat to improve water, sanitation and hygiene in the most vulnerable communities. Alwaleed Philanthropies will be working with the Gates Philanthropy Partners to fund a number of health projects to accelerate the development of therapeutics to protect vulnerable populations.

Islamic factoring tipped as game-changer for Turkish exports

At the moment there are six Islamic banks operating in Turkey, with Kuveyt Turk, Turkiye Finans and Albaraka Turk holding around three quarters of their market share. Harun Çelik, the Islamic Trade Finance Corporation’s (ITFC) regional head for Turkey, says that agriculture is one of the sectors where Islamic banks have big growth potential. Out of almost Tl120bn (US$18.5bn) of agricultural finance in Turkey, the six Islamic banks are only getting 1% of that. That’s where he sees growth potential. Perhaps the greatest nascent opportunity lies with small-to-medium enterprises (SMEs). One useful emerging tool for SMEs could be factoring. A form of supply chain finance, factoring typically involves a supplier selling its invoices to a third party at a discount. For the supplier it means quicker access to working capital, while the third party makes its profit once the invoices are paid.

Gulf bonds prove resilience amid virus-induced adversity

Gulf bonds are emerging resilient after yet another crisis. In the last few weeks the pandemic-induced investor worries soared and oil prices plummeted, but analysts still see them ending the year strong. According to capital markets expert Anita Yadav, total new bond issuances in 2020 will likely surpass the record $101 billion raised in 2019. So far this year, the GCC bond markets have comparatively stayed resilient, having in recent weeks only sold off 60% of emerging market debt and roughly 50% of high-yield debt. Year-to-date GCC issuers have priced more than $47 billion of USD denominated bonds in international markets, nearly matching the $47.8 billion raised during the same period last year.

Saudi Arabia raises $1.48bln in local #sukuk -statement

Saudi Arabia has raised 5.55 billion riyals in sukuk. The first tranche of the sukuk issue has a size of 1.3 billion riyals, and a total tranche size of 2.523 billion riyals, maturing in 2027. The second tranche has a size of 4.25 billion riyals, and a total tranche size of 8.238 billion riyals, maturing in 2035.

UK court's intervention is worst-case scenario, says NMC Health chairman

According to hospital operator NMC Health and its Executive Chairman Faisal Belhoul, getting placed in administration by a UK court order would be the "worst-case scenario" for the company’s future. The threat of coming under administration is a live one after Abu Dhabi Commercial Bank had filed a request with a UK court for NMC to be placed under a joint administration. ADCB – which has an exposure of Dh3.6 billion to NMC and affiliates - filed its request in a UK court because NMC Health is listed on London Stock Exchange. According to Belhoul, international institutional investors are keen to take an exposure in NMC despite its current predicament.

Gulf Islamic Investments’ Acquisition of Class A New York Office Building

Gulf Islamic Investments (GII) has announced the acquisition of 140 & 150 Grand Street Plaza, an office building in White Plains, Westchester County, New York, USA on behalf of its investors. Located just 30 minutes away from Manhattan, the Class A office building seats within the urban center of White Plains. The Property is strategically located within one block of the Federal, Supreme, District and County courthouses making it the preferred destination for government-affiliated and law-related tenants. GII is a UAE-based financial services company regulated by the Emirates Securities and Commodities Authority (ESCA). GII was advised by a cross border Orrick team led by Düsseldorf-based M&A and private equity partner Oliver Duys.

Ramadan during coronavirus may seem disheartening but it's the ideal time for reflection

It is going to be a very different Ramadan this year due to the Covid-19 global pandemic and the social isolation laws. Ramadan in 2020 means no communal gatherings in mosques for "tarawih" night prayers, no large "iftar" dinners with family and friends at sunset to break the day’s fast, and restrictions on celebrating Eid, the biggest social holiday for Muslims signalling the end of Ramadan. Self-discipline when it comes to physical acts of worship is a part of the heritage of Islam. However, the true essence of Ramadan has been diluted through the generations. The focus of Ramadan can move away from food preparation and "eating at sunset", to self-improvement and self-discipline.

Bahrain Islamic Bank launches Tejoori Instant Finance

Bahrain Islamic Bank (BisB) launched the Tejoori Instant Finance service allowing customers to obtain instant finance within 5 minutes. According to BisB Chief Retail Banking, Dalal Al Qais, customers can get instant finance on amounts ranging between BD 200 and BD 2,000, which will be credited to their Saving or Current Account in less than 5 minutes. Customers will be required to pay upfront fees that vary between BD30 and BD70, depending on the required amount. They can choose a minimum tenor of three months up to a maximum tenor of 12 months to repay the amount with no profits. The monthly instalment will be deducted directly from the customer’s Tejoori account.

Syndicate content