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.

New #fund offers opportunity to tap into global market

CIMB-Principal Asset Management (CIMB-Principal) announced the launch of its CIMB Islamic Global Equity Fund, the latest addition to its suite of 20 Islamic funds. The fund offers Malaysian retail and corporate investors an opportunity to tap into the growth prospects of global equities. It is currently available to investors in MYR with a minimum initial investment of RM500.The fund will invest a minimum of 70% and up to a maximum of 98% of its NAV in syariah-compliant global equities and equities-related securities. 28% of the Fund will be invested in sukuk, syariah-compliant money market instruments and Islamic Deposits. CIMB-Principal CEO Munirah Khairuddin says global equity markets continue to be in a sweet spot with strong earnings in both emerging and developed markets. She hopes to meet the target fund size of RM300 million in assets under management within a year of the fund’s inception.

Dubai’s Arqaam Capital launches specialist fixed income #funds in DIFC

Dubai-based investment bank Arqaam Capital has announced the launch of two specialist fixed income funds located within Dubai International Financial Centre (DIFC). The high income fund will invest in emerging markets with a focus on the MENA region and will include a mixture of fixed and floating rate investments. The Islamic fixed income fund will invest in sukuk issued by sovereigns, quasi-sovereigns and corporates. Arqaam Capital said the funds are denominated in US dollars and pegged currencies and will target annual returns of 6 and 7%. The new funds will be co-managed by Abdul Kadir Hussain, head of fixed income asset management, and Zeina Rizk, director of fixed income asset management.

QIB named as safest Islamic bank in #Qatar

Qatar Islamic Bank (QIB) has been recognised by Global Finance as the safest Islamic Bank in Qatar and one of the safest Banks in the Middle East. Also, QIB was recognised as the second safest Bank across the banking sector, and the third safest Islamic Bank in the Middle East. Global Finance evaluates the ratings and total assets size of the banks, which were selected through an evaluation of long-term foreign currency ratings from Moody's, Standard & Poor's and Fitch. QIB's Group CEO Bassel Gamal said he was proud to be active contributor to Qatar's growing financial sector and to the country's National Vision 2030. Total assets of the Bank have increased by 9.2% compared to the first half of 2016, and now stand at QR147bn. Income for the first half of this year is QR3.14bn registering 18.4% compared to QR2.657bn for the first half of 2016.

London judge postpones decision on Dana Gas #sukuk hearing

A London High Court judge will decide on Friday whether to continue proceedings on the validity of $700 million sukuk issued by Dana Gas. United Arab Emirates producer Dana Gas started proceedings in June to have its sukuk declared invalid and unlawful because of changes in the interpretation of Islamic finance. A last-minute injunction obtained by some shareholders prevented Dana Gas from participating in the trial. High Court judge George Leggatt on Tuesday adjourned the trial and decided to reserve judgement until Friday. The outcome of the trial could have significant repercussions for sukuk issuers and investors worldwide, as it could set a precedent for other issuers. The case is being disputed in UK and UAE courts because while the purchase undertaking is regulated by English law, the mudarabah agreement underlying the sukuk structure is regulated by UAE law.

#Algeria plans first #sukuk issuance in 2018 -PM

Algeria plans to issue its first sukuk next year as it seeks new funding sources after a fall in energy earnings. Prime Minister Ahmed Ouyahia said the government would introduce Islamic financial services at two state banks before the end of this year and four others in 2018. The North African country had rejected sharia-based financing options after a war with Islamist movements that killed about 200,00 people in the 1990s. But financial difficulties have prompted the government to speed up implementation of reforms. Algerian firms rely heavily on state spending, which in turn depends on the hydrocarbons sector. The government also aims to modernise the stock market, which is now smaller than those in neighbouring Morocco and Tunisia.

#Algeria: 6 government banks to offer Islamic banking by 2018

Algeria’s Prime Minister, Ahmed Ouyahia, announced that Islamic banking is to be approved in two public government banks before the end of this year and will be approved in four other banks in 2018. According to Ouyahia, this funding was inevitable because of the country's difficult economic and financial situation, and it will be limited in time because it will continue till no later than 2022. Algeria has about 29 banking institutions, seven of them are government-owned public banks, and more than 20 foreign banks from the Gulf countries, others are French and one is British. The Algerian government has applied Islamic banking in a limited way through the Zakat Fund of The Ministry of Religious Affairs and Wakfs, that was launched in 2003. The country has been facing an economic crisis for three years due to the fall in oil prices. Its foreign exchange earnings fell from 60 billion dollars in 2014 to 27.5 billion dollars at the end of last year.

Dana Gas and partners start arbitration case against MOL over #Kurdistan settlement

Dana Gas and its partner Crescent Petroleum have begun arbitration proceedings against Hungary's MOL Group over Dana's settlement agreement with the Kurdistan Regional Government (KRG). The KRG agreed to pay $1 billion to the consortium and to reclassify some additional $1.24 billion from debt to outstanding costs. MOL is unsatisfied with the way Dana Gas, Crescent Petroleum and the Pearl consortium handled the settlement and would have pursued a final litigation and enforcement outcome against KRG instead. Dana and Crescent Petroleum own a combined 70% stake in the Pearl consortium, while Austria's OMV, Germany's RWE, and MOL each own 10%. The KRG settlement boosted Dana's cash balance and lifted the company's stock on the Abu Dhabi stock exchange by 14%. Last week Dana bondholders requested a $300 million cash paydown, but Dana refused the proposal and the case is now being disputed in a London High Court.

#Saudi Domestic #Sukuk: Indication of Financial Solidity

The Saudi Finance Ministry announced that the third domestic sukuk issuance reached 350% in a record rate, while the first issuance was at 297% and the second at 300%. These figures indicate the solidity of the Saudi financial and banking sectors. The government received more than 24 billion riyals (USD6.4 billion) in bids for its third riyal-denominated sukuk. The latest issuance was divided into three tranches as follows: 2.4 billion riyals (USD640 million) from a five-year tranche, 3.9 billion riyals (USD1.04 billion) from seven-year notes and 700 million riyals (USD186.6 million) through a 10-year tranche. Thirteen licensed commercial banks qualified for the domestic sukuk program. Once the program was established, financial institutions competed two months ago to submit investment applications in the first issued domestic sukuk in the local market.

EPF to boost #investments in shariah-compliant private equity funds

The #Malaysian Employees Provident Fund (EPF) is prepared to increase its investments in shariah-compliant private equity (PE) funds. Deputy CEO Datuk Mohamad Nasir Ab Latif said the pension fund has not met its full asset allocation target for its PE segment. He noted that the fund allocated 10% to infrastructure and real estate investment, while PE investment currently stood at 4%, adding that there was a shortage of shariah-compliant funds in the domestic and international markets. He said EPF would continue to invest in both shariah-compliant and conventional funds concurrently. For the second quarter ended June 30, 2017, EPF's shariah-compliant savings accounted for RM820.71 million out of RM11.51 billion of its total investment income, while RM10.69 billion was generated from its conventional savings.

#DIFC #Wealth and #Asset Management Report 2017

DIFC published a report about the Wealth and Asset Management industry.

From the abstract:

"Continued growth in Islamic asset management

Islamic asset management [IF: Islamic mutual fund business only] continues to grow, at a moderate CAGR of 2.44% since 2012 to reach US$58.89 billion in AuM by the end of 2016, despite the economic challenges in the GCC caused by falling oil prices. The industry is still highly concentrated in Saudi Arabia and Malaysia, however.

Shariah-compliant investments have strong demographic demand but remain under-utilised. Targeting different
market sectors and regions has been largely ineffective, due mainly to poor marketing strategies. Inadequate government support and recent market conditions have also impaired market performance.

Despite developments in Islamic finance and growth in Islamic assets, Islamic wealth management remains a niche market, and with local services still largely underdeveloped, most Middle East investors continue to invest overseas. Islamic pension funds’ potential scarcely tapped Pension funds in particular present one way to add scale

#Brexit suspense casts shadow over #UK as an Islamic finance hub

Uncertainty over the UK’s future status as a financial hub after leaving the European Union (EU) is already casting a shadow over London’s Islamic finance sector. It is estimated that London would lose at least 10,000 banking jobs and 20,000 roles in financial services as clients move €1.8tn of assets out of the UK. The banking exodus would also hit the Islamic finance sector in London, which is the largest globally in a non-Muslim jurisdiction. London currently hosts more than 15 large banks that operate Islamic finance windows and dozens of related service providers. A banking lobbying group has already urged the UK government to introduce post-Brexit laws that make sure that demand for Islamic finance services does not diminish. As long as the UK gives no clear direction whether and how it would excel as a financial hub, competitors will continue positioning themselves as alternative locations. Within the EU, Luxembourg and Dublin, and partly Frankfurt, have good chances to take on roles as Islamic finance hubs for Islamic finance institutions with business in the EU.

Jaiz Bank: Balancing the Business and The Market

After the first tier commercial banks in Nigeria, Jaiz Bank was the most active stock on the exchange with volumes of 7,179,550 with a total value of N4,682,686.00. The increased activity is indicative of swinging sentiments in favour of the stock. But the stock has underperformed the All Share Index (ASI) in the last six months as it returned a negative 45% while the ASI returned 40%. Jaiz Bank managed to grow its Gross Income in the first half year ending June to N3.25 billion from N2.56 billion. Income from Finance Investment grew 19.82% to N2.95 billion from N2.46 billion while Sukuk leapt 198.3% to N293.35 million from N98.35 million. Abdulfatah Ahmed, the Kwara State governor highlighted there was a lot of scope for growth for the bank and Islamic banking in Nigeria. Hassan Usman, the bank’s managing director, said he was optimistic about the future of the bank and therefore urged everyone irrespective of their religious background to key into the model.

Why #green #Sukuk could be a key growth driver for Islamic finance

Islamic finance is exploring green bonds in order to develop Sharia-compliant financial products to invest in climate change solutions. Green Sukuk are Sharia-compliant investments in renewable energy and other environmental assets. Over $30bn worth of green bonds were issued in the second quarter of 2017. Issuance from emerging markets has jumped from $2.3bn to $9.2bn year-on-year versus 16% a year ago. Malaysia has the opportunity and ambition to be a leader in this space on the premise that Malaysia is already a leader in Islamic finance. Another active player on this front is the United Arab Emirates (UAE), which launched the Green Finance and Investment Support Scheme to promote green projects. Green Sukuk is a good model to finance sustainable infrastructure as well as help bridge the gap between conventional and Islamic finance. The most important challenge for Sukuk is gaining acceptance by international investors due to lack of standardisation and legal enforceability risk. Other challenges of green Sukuk include investor’s awareness, demand for energy supply, government support and demand for energy financing.

KIA appoints consultant to study possible #merger of KFH and AUB – Tie-up will make KFH the largest bank in #Kuwait: Moody's

Kuwait Investment Authority has appointed a global consultant to study the merger of two banks, Kuwait Finance House (KFH) and Ahli United Bank (AUB). Moody’s said in a report that the merger of the two banks will have a positive impact on credit rating, especially for KFH. Moody’s noted that if the merger is successful, it will create the sixth largest bank in the GCC with nearly $85 billion in total assets. The merger will make KFH the largest bank in Kuwait, but it will remain the second largest bank in the Gulf after Al-Rajhi Bank Saudi Arabia. The number of domestic branches of KFH reached 65 while AUB has 37 branches. Several reports were published on the possible merger of the two banks. However, officials from both banks denied reports on the merger while others confirmed.

Jaiz Bank’s capital base hits N15bn

Jaiz Bank CEO Hassan Usman said that #Nigeria would become one of the countries to successfully offer Sovereign Sukuk in local currency. The Federal Government floated around N100bn and according to him, the offer was to last for five days. Hassan said these on the sidelines of Jaiz Bank’s Customers Forum in Ilorin, the Kwara State capital and also revealed that the institution’s capital base had reached N15bn. He said that Islamic finance worldwide was novel, being in existence for about 40 years compared to conventional banking, which had lasted for over 300 years.

CIMB Islamic outlines #growth #plans

In this interview CIMB Islamic Bank CEO Mohamed Rafe Mohamed Haneef talks about the bank's achievements in Malaysia and its growth plans. The most significant segment for CIMB Islamic Bank is retail banking. When Haneef joined the bank, consumer banking’s contribution was between 40 and 45%, while at the end of June it was almost 60%. The bank came up with an embedded model which enables both CIMB Islamic and the conventional side from CIMB Group to tap the same talent. CIMB operates on two separate licences, but out of the same branches, as relationship managers offer both Islamic and conventional banking options. According to Haneef, the bank plans to focus on the Asean region first before eventually building inroads into the Middle East beyond 2018. CIMB Group’s Islamic Asset Management is in close contact with the Securities Commission (SC) and plans to contribute to the development of Sustainable and Responsible Investing (SRI).

Interview with Mr. Khairul Kamarudin, CEO of Bank Islam #Malaysia Berhad

In this interview Khairul Kamarudin, CEO of Bank Islam Malaysia, talks about his leadership style and areas of focus. Besides sustainability, the other main area of focus will be digitalisation. In 2016 the bank launched the innovative product called 'e-Donation' Terminal using Visa PayWave, a platform where donations can be made through the contactless electronic method using any debit/credit card. Bank Islam has also taken a step towards accepting fintechs with the recent strategic collaboration with Cognizant. This will allow the bank to embark more on innovative digital Islamic banking. In terms of charity, Bank Islam has its own Waqf project in its office building, which provides prayer facilities to more than 3,000 people per week. Also, the bank supports the affordable development project in Selangor and a school-construction project in the state of Perlis.

MSM okays 35 Sharia compliant firms

Muscat Securities Market (MSM) adopted a list of Sharia compliant companies for the second quarter of 2017. The list of companies includes 35 public shareholding companies: Al Saffa Food, Al Anwar Ceramic Tiles, Al Izz Islamic Bank, Al Jazeera Services, Al Kamil Power, Al Madina Takaful, Al Maha Ceramics, Bank Nizwa, Computer Stationery Industry, Dhofar Beverages and Food Stuff, Gulf International Chemicals, Gulf Mushrooms Products, Gulf Quarries, Majan Glass, Muscat Gases, Muscat Thread Mills, National Biscuit Industries, National Real Estate Development, Oman Cables Industry, Oman Cement, Oman Fisheries, Oman Flour Mills, Oman International Marketing, Oman Packaging, Oman Refreshments, Omani Telecommunications, Ooredoo, Port Services Corporation, Raysut Cement, Salalah Port Services, Shell Oman Marketing, Takaful Oman Insurance, United Power, and Voltamp Energy. The list is reviewed every three months by adding standards-compliant companies and eliminating those that lost their eligibility.

QInvest invests in #Spanish #marina OneOcean Port Vell

#Qatar's QInvest has invested in OneOcean Port Vell in Barcelona, Spain. Originally built for the 1992 Olympic Games, the marina recently completed its transformation to a luxury facility, creating the ultimate destination for yachts up to 190m. QInvest will work with the city and port authorities in Barcelona to increase the profile of the marina by investing additional resources in the port infrastructure. OneOcean Port Vell is QInvest's second investment in Spain this year, having earlier invested into a Spanish real estate strategy focused on land developments in Madrid, Barcelona, Valencia and Marbella. The objective is to acquire well-located land parcels across Spain and develop residential apartments for first home owners. QInvest’s revenues from all business lines were QR209mn, resulting in an operating profit of QR113mn and net profit of QR34.6mn in the first half of this year. The bank’s global assets stood at QR4.7bn at the end of June 30, 2017.

Global #debt may be understated by $13 trillion - BIS

Global debt may be under-reported by around $13 trillion because traditional accounting practices exclude foreign exchange derivatives. Bank for International Settlements (BIS) researchers said it was hard to assess the risk this missing debt poses, but that the main worry was a liquidity crunch like the one that seized FX swap and forwards markets during the financial crisis. The $13 trillion exposure exceeds the on-balance-sheet debt of $10.7 trillion that was owed by firms and governments outside the United States at end-March. The fact these FX derivatives do not appear on balance sheets means little is known about where the debt lies. According to Claudio Borio, head of the BIS's monetary and economic department, the debt remains obscured from view.

Syndicate content