Salaam Gateway

Moody’s upgrades AHB Sukuk Company Ltd.’s #sukuk programme to (P)A1 and its USD500 million senior note to A1 following guarantee by Abu Dhabi Commercial Bank

Moody's Investors Service upgraded to (P)A1 from (P)A2 the provisional foreign currency senior unsecured MTN rating of AHB Sukuk Company Ltd. The AHB Sukuk Company is a special-purpose vehicle established in the Cayman Islands by Al Hilal Bank. Moody's also upgraded to A1 from A2 the backed senior unsecured rating on AHB Sukuk Company Ltd.'s outstanding USD500 million senior unsecured note due 19 September 2023. The outlook on AHB Sukuk Company Ltd.'s senior unsecured note remains stable. The upgrades are driven by the issuance on 2 July 2019 by Abu Dhabi Commercial Bank (ADCB) of a guarantee covering AHB Sukuk Company Ltd.'s sukuk programme and its USD500 million senior note, and follows ADCB's acquisition of Al Hilal Bank on 1 May 2019.

#Malaysia’s Islamic fund manager BIMB signs UNPRI to incorporate ESG into investments

Malaysian Islamic fund manager BIMB Investment has become an official signatory of the United Nations-supported Principles for Responsible Investment (UNPRI). BIMB Investment is the only bank-backed Islamic asset manager in Malaysia to be a UNPRI signatory. The UNPRI group works to understand the investment implications of environmental, social and governance (ESG) factors and supports its network in incorporating these factors into their decisions. BIMB Investment CEO Najmuddin Mohd Lutfi said that the company has integrated more than 250 ESG metrics in its investment process since 2015. The company currently manages over 1 billion Malaysian ringgit of ESG assets. At the moment there are around 2,300 signatories to the UNPRI. Other signatories from Malaysia include Xeraya Capital, Navis Capital Partners, the national retirement fund KWAP, sovereign wealth fund Khazanah, and Corston-Smith Asset Management.

#Philippines to fast-track Islamic finance regulations – media

Philippines’ central bank will fast-track the issuance of Islamic finance regulations in the country as soon as the Islamic banking law is approved by the president. Philippines has been accelerating the growth of its Islamic economy sectors in the last couple of years. The country’s interest in Islamic finance is two-fold: to attract Shariah-sensitive foreign investments and capital from Islamic countries, as well as to provide its approximately 10 million domestic Muslim population with an Islamic banking option. The country also hopes to increase its exports to Muslim-majority countries and has been developing its halal infrastructure to support this goal. Its national halal certification scheme was launched last year and in February the Department of Science and Technology opened the Philippine National Halal Laboratory and Science Centre.

#UAE aim to become regional Islamic art and culture capital boosted by Jameel Prize’s first exhibition in Dubai

The UAE’s status as a centre for Islamic art and design was boosted this past week as Jameel Arts Centre opened the Jameel Prize 5 exhibition. First awarded in 2009, the Jameel Prize is a collaboration between London's Victoria & Albert Museum and Art Jameel. Worth 25,000 British pounds, it awards contemporary artists and designers inspired by Islamic tradition. In addition to the two joint prize winners, Iraqi artist Mehdi Moutashar and Bangladeshi architect Marina Tabassum, the prize exhibition in Dubai is also showing works by the six finalists. They are: Iranian artist Kamrooz Aram, Jordan and Dubai-based graphic designer and architect duo naqsh collective, Iraqi-born painter Hayv Kahraman, Bahraini fashion designer Hala Kaiksow, Moroccan multimedia artist Younes Rahmoun, and Pakistani painter Wardha Shabbir.

OPINION-Strategic Compassion: The power of Islamic finance in the service of global good

The practitioners of Islamic finance are increasingly framing their practices as ethical, socially responsible and conducive to humanity’s wellbeing. Tools like the obligatory zakat and charitable donations generate between $200 billion to $1 trillion annually. According to the World Bank, zakat can alleviate poverty in 20 of the 39 OIC countries. In Indonesia, Baznas—a national institution mandated to collect, distribute and manage zakat— has benefited around 6.8 million people. Baznas is also believed to be the first zakat organization to have formally committed to supporting the United Nations’ Sustainable Development Goals (SDGs). In 2018, in neighboring Malaysia, the International Federation of the Red Cross and Red Crescent Societies (IFRC) pioneered a zakat-financing instrument with a local zakat authority to support Kenya’s Drought Assistance Programme. Green-gram seeds were bought with the zakat monies and distributed to 175,000 households. In six months, the crops produced and sold a yield worth $20 million.

IRTI and Dar Al Sharia Sign MOU to Develop Solutions for Islamic Financial Institutions

The Islamic Research and Training Institute (IRTI) and Dar Al Sharia have signed a memorandum of understanding (MOU) for strategic collaboration. The MOU was signed by IRTI Director General, Dr. Humayon Dar, and CEO of Dar Al Sharia, Mian Muhammad Nazir. IRTI and Dar Al Sharia will jointly provide Islamic finance advisory services to Islamic financial institutions, multilateral financial institutions, sovereigns and quasi-sovereigns, corporate entities, development funds, regulators, Fintech companies, educational institutions and other clients offering Sharia-compliant products and services. Nazir said the strategic collaboration with IRTI was a landmark initiative towards the development of a sustainable platform for innovation in the Islamic finance industry.

#Saudi Arabia sells 4 billion riyals of domestic #sukuk

Saudi Arabia's finance ministry sold 4.0 billion riyals ($1.1 billion) of domestic Islamic bonds in its monthly auction. The issuance is actually a re-opening of the issue originally made in July. The ministry sold 2.25 billion riyals of five-year sukuk, 500 million riyals of seven-year and 1.25 billion riyals of 10-year, bringing the total issue size to 7.465 billion riyals.

ADGM’s aviation finance structure utilized in #sukuk issuance

Abu Dhabi Global Market (ADGM) has facilitated the transaction of a 12 year Sukuk issued by Natixis and Noor Bank. It is the first instance where an ADGM structure has been used specifically to hold aircraft assets for issuing Sharia compliant bonds. The transaction follows the successful completion of the first aviation sale and leaseback transactions arranged by Natixis in ADGM in late 2016 and the registration of three international aviation leasing companies earlier this year. ADGM aims to position Abu Dhabi as an international aviation finance hub to deliver bespoke solutions for both Islamic and Conventional transactions.

World’s first ESG #sukuk #fund another step forward for #Malaysia’s responsible finance

Malaysia’s Shariah-compliant BIMB Investment Management launched the world’s first environmental, social and governance (ESG) sukuk fund on August 1. BIMB’s ESG Sukuk Fund is the company’s fifth ESG-focused fund as a result of its partnership since 2015 with London-based Arabesque Asset Management. BIMB Investment CEO Najmuddin Mohd Lutfi said the company plans to launch more ESG that incorporates fintech like artificial intelligence, machine learning, big data, data analytics. The next investment focus could be in U.S. equity and multi-asset funds.

ADIB’s Shareholders approve ADIB’s capital proposal to support growth

Shareholders of Abu Dhabi Islamic Bank (ADIB) have approved proposal for a rights issue of AED 1 billion to raise the Paid and Issued Share Capital through a tradeable rights issue of 464 million new shares. Shareholders also approved the issuance of USD 750 million (AED 2.75 billion) perpetual Tier 1 sukuk, and the repayment of its USD 1 billion (AED 3.67 billion) sukuk issued in 2012. The capital plan has been developed to support the bank’s continued growth and its objectives in achieving its strategy while meeting regulatory requirements.

Abu Dhabi National #Takaful Co. PSC announces combined net profit of AED 48.6 million for H1 2018 achieving a growth of 19% in profit

Abu Dhabi National Takaful Co. PSC (ADNTC) released its financial results as at end of second quarter on 30 June 2018. The company announced a combined net profit of AED 48.6 million, achieving a growth of 19% compared to AED 41 million for the same period last year. The technical profit reached AED 60 million showing an increase of 9% compared to AED 55.2 and the underwriting profit reached AED 36.4 million showing an increase of 6% compared to AED 34.2 million for the same period last year. According to CEO Osama Abdel Raouf Abdeen, the underwriting profit of AED 36.4 million for the first half of 2018 is an indication of the company's credibility as the leading takaful operator in the region.

AAOIFI adoption set to standardise #UAE Islamic finance

The Central Bank of the UAE announced that the country's Islamic finance industry will be required to comply with AAOIFI Shariah standards from September 1. Islamic finance products in the UAE have historically adhered to AAOIFI standards, but the formal move to adopt AAOIFI standards will benefit the Islamic finance industry not only in the UAE. According to Dar Al Sharia CEO Mian Nazir, this move will facilitate standardisation of the Islamic finance industry across markets. These regulations are expected to grow consumer confidence and benefit the sukuk market as well. Dar Al Sharia is holding workshops to help relevant stakeholders, from internal Shariah control committee members to lawyers, develop an understanding of AAOIFI’s Shariah standards.

BRIEF-#Qatar Islamic #Insurance Receives C.Bank Nod To Change Name

Qatar Islamic Insurance Company received central bank approval to change its name to Group Islamic Insurance Company. The company also received approval from the central bank to establish a real estate company owned 100 percent by the group.

RAM Ratings: #Turkey rating downgrade triggers Kuveyt Turk downgrade

RAM Ratings has downgraded Kuveyt Turk's long-term rating to A1/Stable from AA3/Negative. The rating of KT Kira Sertifikalari Varlik Kiralama’s RM2.0 billion Islamic MTN Programme (2015/2025) has been revised downwards to A1(s)/Stable from AA3(s)/Negative. The Bank’s short-term financial institution rating remains unchanged at P1. The rating actions were triggered by the downgrade of Turkey’s sovereign ratings to gBB2(pi)/Stable/gNP(pi) from gBBB3(pi)/Negative/gP3(pi), due to an erosion of the country’s fiscal discipline. Kuveyt Turk has a relatively favourable funding profile, with a moderate reliance on market-based funding compared to the industry norm. The bank’s customer deposit base is well diversified. The bank’s liquidity profile is robust, with an average liquidity coverage ratio of 230% in fiscal year 2017.

#Malaysia: BIMB Investment targets RM100m for Shariah equity fund

BIMB Investment is targeting RM100 million in subscription for its newly launched BIMB-Arabesque ValueCAP Malaysia Shariah-ESG Equity Fund. The fund will be invested in 100 local shariah compliant companies listed on Bursa Malaysia. BIMB Investment CEO Najmuddin Mohd Lutfi said the investments would be based on selected companies that have strong financial standing. He said companies who are interested to increase their social responsible investment (SRI) and Environmental, Social and Governance (ESG) portfolios should also tap into this fund.

Official Launch of the IFSB Islamic Financial Services Industry Stability Report 2018 at the Astana Islamic Economy Forum

Astana International Financial Centre (AIFC) officially launched the sixth edition of the Islamic Financial Services Industry (IFSI) Stability Report 2018. The Secretary-General of the IFSB, Dr. Bello Lawal Danbatta highlighted some of the key findings of the 2018 Report, particularly the rising domestic systemic significance of Islamic finance in many key jurisdictions. According to the report, the global IFSI has returned to a robust growth of 8.3%, following two years of growth stagnation. While Islamic capital markets marked a strong performance in 2017 on the back of sovereign sukuk issuances, some underlying weaknesses persisted from the previous year, including those in the corporate sukuk market. The takaful sector continues to face challenges as a result of stiff competition from larger and more established insurance companies.

#Maldives launch first Islamic finance magazine: ‘Laaba’ to act as a platform to engage regional & global industry developments

Maldives Center for Islamic Finance (MCIF) has launched Laaba, the first publication in the archipelago dedicated to Islamic finance. The magazine aims to be the first platform in South Asia to bring together regional hubs with global partners in engaging knowledge and sharing ideas. The first issue has embraced the theme of responsible and ethical finance and how this is aligned with Islamic finance. Laaba also includes exclusive interviews with CEOs across Maldives financial institutions, including the Maldives Islamic Bank, Maldives Capital Markets Development Authority and Amana Takaful.

AIIB and IsDB Group join forces to grow sustainable infrastructure

The Asian Infrastructure Investment Bank (AIIB) and the Islamic Development Bank Group (IsDB Group) have signed a Memorandum of Understanding (MOU) to establish a framework for strategic cooperation. The MOU will have a strong focus on sustainable infrastructure including development of energy and power, transportation and telecommunications, rural infrastructure water supply and sanitation, environmental protection, urban development and logistics. IsDB Group President H.E Dr. Bandar M.H. Hajjar said the Group looks forward to stimulate the region’s economic growth together with AIIB. The two banks intend to share knowledge and exchange experiences among employees through joint temporary assignments, secondments and training.

Fitch upgrades Qatar Islamic Bank (QIB) rating to stable and affirmed 'A' rating

Fitch Ratings has upgraded Qatar Islamic Bank’s (QIB) outlook to 'stable'. The move reflects Fitch's view that Qatar has successfully managed the fallout from last year's rupture of trade, financial and diplomatic relations. Public sector liquidity injections have stabilised the banking sector and stemmed the outflow of non-domestic funding. The government has demonstrated a strong commitment to its banks and key public sector companies. Earlier this year, Fitch also affirmed QIB’s Long Term Issuer Default Rating (IDR) at 'A'. These ratings of QIB reflect its well-established franchise in Qatar, with a market share of about 11% of total banking system assets at end-2017.

INTERVIEW-How can new crowdfunder GlobalSadaqah improve transparency, impact of Islamic social finance?

In this interview Umar Munshi, the founder and CEO of Ethis Ventures talks about the Islamic crowdfunding sector. Ethis Ventures is a pioneer in the sector centred in Southeast Asia, in Singapore, as well as in Malaysia and Indonesia. Ethis Ventures is behind Ethis Crowd, the first Islamic real estate crowdfunding platform that raises funds for social housing development projects in Indonesia. Ethis is also behind Kapital Boost, which crowdfunds financing for small and medium-sized enterprises. The company’s latest project is a charity-based crowdfunding platform called GlobalSadaqah. It aims to match high-impact charity campaigns to donors who give either zakat or sadaqah.

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