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Egypt's Faisal Islamic Bank records $7.15bln in business volume during August

The Faisal Islamic Bank of Egypt has reported a 9.3% increase in its volume of business to EGP 112.751bn in August 2020, compared to EGP 103.149bn in August 2019. The bank’s total assets reached EGP 109.713bn in August 2020, which reflects a 13% growth compared to the EGP 97.124bn reported in August 2019. Faisal Islamic Bank aims to open five new branches over the course of the current year, bringing its total network of branches to 41. It aims to further expand its branch network to 46 by the end of 2021. The bank also plans to offer a number of new services, including “Meeza” debit and pre-paid cards, and new bill e-payment service “Fawri”.

#Egypt signs $2bn conventional, Islamic facility to finance budget deficit

Egypt’s Ministry of Finance has signed the first conventional and Islamic financing facility, worth $2bn, to finance the state’s budget deficit. The facility was closed by Emirates NBD Capital Limited, and First Abu Dhabi Bank (FAB) as the transaction’s global coordinators, mandated lead arrangers, and book runners. The main authorised regulators and the offering managers include Mashreq Bank, ABC Islamic Bank, British Standard Chartered Bank, Islamic HSBC, the Arab Banking Corporation (ABC), and the Japanese Sumitomo Mitsui Banking Corporation.

#Russia’s Sberbank structures Islamic finance deal to supply wheat to #Egypt

Russia’s Sberbank has structured its first trade finance deal with an Islamic bank to supply Russian wheat to Egypt. The deal with Saudi Arabia’s International Islamic Trade Finance Corporation (ITFC) was implemented through Sberbank’s subsidiary in Switzerland. Egypt’s state-run General Authority for Supply Commodities (GASC) acted as the buyer in the deal. The Russian bank said ITFC will enable it to significantly increase its share in Russian wheat exports to Egypt.

#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.

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.

Une deuxième émission de #sukuk se prépare en #Egypte

Sarwa Capital finalise une opération évaluée à 152,2 millions $. Ce sera la deuxième émission de ce type de produits financiers sur le marché financier égyptien après celle de Talaat Mostafa Holdings en avril 2020. Sarwa Capital est aussi en train de mener des discussions avec de potentiels arrangeurs et garants de l'opération. Pour l'heure, seules deux entreprises financières égyptiennes sont habilitées à émettre des sukuk. Il s'agit de Sarwa Capital et EFG Hermes. Celle-ci est cotée sur la Bourse du Caire.

Sustainable development for real economy: Some lessons from the 12th ICIEF

The 12th International Conference on Islamic Economics and Finance (ICIEF) was held in Istanbul this month. It was organized by Istanbul Sabahattin Zaim University, Islamic Research and Education Institute (IRTI) and the Islamic Development Bank (IDB). Because of the pandemic the conference committee decided to organize it virtually. 14 eminent personalities and Islamic finance experts shared their thoughts on the future of Islamic economics and finance. Altogether, 132 papers out of some 472 submissions from 40 different countries were selected for presentation. Some papers focused on implementing a circular economic model that facilitates environment-friendly production and consumption. The circular economy concept is very much aligned with the concept of sustainable development and may support achieving the United Nations' SDGs by 2030. Presenters repeatedly underscored that the Islamic financial system can be a major driver in the transformation toward a circular economy.

#Turkey's Erdogan says Islamic economy can pull world 'out of crisis'

Turkey's President Recep Tayyip Erdogan said Islamic economic system is the key to getting out of crisis as global economy continues to suffer from coronavirus pandemic. President Erdogan said the loss of nearly 440,000 lives worldwide can't be attributed to Covid-19 alone, saying many countries have an economic system that protects only strong and the rich. Erdogan said Turkey is among the countries that has fought the pandemic with the least damage. Pointing out the country’s first-quarter growth of 4.5%, Erdogan said that Turkey has shown that it distinguished itself positively from other countries not only in the health sector but also in the economy, during the Covid-19 pandemic.

Humania’s US$125 Million Islamic Financing Facility

Clifford Chance has advised four international development finance institutions on a US$125 million Islamic financing facility to Humania. Led by International Finance Corporation (IFC), the institutions involved in the consortium were: the European Bank for Reconstruction and Development (EBRD), Finnish Fund for Industrial Cooperation (Finnfund), and OPEC Fund for International Development (OPEC Fund). Humania is a private healthcare company within the Bait Al Batterjee Group. The financing will be used to develop greenfield general hospitals in Alexandria (Egypt), and Casablanca (Morocco).

#Egypt Faisal Islamic Bank gets FRA's approval for capital raise

The Egyptian Financial Regulatory Authority (FRA) approved a request from Faisal Islamic Bank of Egypt to publish the disclosure form to proceed with its capital increase procedures. The disclosure form included the board of directors’ approval to raise the company’s issued capital by $66.02 million to $506.2 million from $440.19 million. The capital increase will be carried out by issuing 66.03 million shares at a nominal value of $1 or its equivalent in the Egyptian pound per share through a 0.149-for-one bonus issue.

Banque Zitouna fête son 10ème anniversaire

Fondée en 2010, Banque Zitouna s’est rapidement développée en peu d’années s’imposant ainsi en tant que banque islamique entièrement évolutive en Tunisie. Le long de ses 10 années d’existence, Banque Zitouna n’a cessé de se réinventer toujours en accord avec ses valeurs de Banque islamique, en créant de la proximité avec ses clients et ses territoires, vecteur principal de sa réussite. En mars 2019, le Groupe Majda Tunisia a racheté les parts de l’Etat dans le capital de la banque. Banque Zitouna envisage également une expansion à l’international notamment en Afrique, au Maghreb et en Europe, outre la mise en place d’un plan de transformation digitale et le développement de nouvelles activités à travers la création de nouvelles filiales.

Egyptians pay tribute to Saudi businessman Saleh Kamel

Egyptians have been paying tribute to Saudi businessman Saleh Kamel who died in Jeddah on Monday after suffering a heart attack. Members of the country’s business, political, religious, and entertainment communities joined in mourning the passing of the prominent figure. Kamel, who was the chairman and founder of the Dallah Al-Baraka Group established part of his economic empire in Egypt including Arab Radio and Television (ART), and Al-Baraka Bank. He also used the ART Institution to fund charity projects throughout Egypt. Kamel had always been a strong supporter of Egypt and in March 2015 headed a delegation of 100 businessmen and investors at a major conference in Sharm El-Sheikh aimed at boosting the Egyptian economy.

Albaraka Türk's 5th International Calligraphy Competition Exhibition on Instagram

The fifth International Albaraka Calligraphy Competition Exhibition meets art lovers on Instagram. Albaraka Türk continues to boost its success in culture and art events as well as in participation banking. The fifth edition of the bank’s International Calligraphy Competition Exhibition was postponed due to the coronavirus pandemic and later went online on Instagram. The works in the competition have been decorated with illumination and included in the collection. The exhibition has been given a new form with unique content and presented to art lovers on Albaraka Sanat's official Instagram account ( https://www.instagram.com/albarakasanat/) with over 70 stories in total.

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.

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.

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.

#Egypt FRA eyes 5 #sukuk offerings in 2020

Egypt's Financial Regulatory Authority (FRA) plans for five new sukuk offerings worth EGP 5 billion this year. In early April, FRA approved issuing the first-of-kind sukuk in favor of the Arab Company for Projects and Urban Development, a subsidiary of TMG Holding (TMGH). The total value of this Islamic financing facility is estimated at EGP 2 billion. Additionally, Sarwa Capital has been granted in July 2019 the country’s first sukuk issuer license by FRA. This gives Sarwa the green light to issue Islamic bonds through its sukuk arm, Sarwa Sukuk Company.

#Egypt approves first issuance of sukuk by Talaat Mostafa subsidiary

Egypt's Financial Regulatory Authority approved the first issuance of sukuk worth 2 billion Egyptian pounds ($127 million) by a subsidiary of Talaat Mostafa Group. The sukuk, issued by the subsidiary Arab Company for Projects and Urban Development, will be available for trading and for expedited payment but will not be transferable for shares. The new sukuk period is for 57 months, up to the end of 2024. Talaat Mostafa Group is Egypt's largest listed real estate developer.

Al Baraka Bank #Tunisia increases its net income by 256%

Al Baraka Bank Tunisia recently announced its financial results for the year 2019. The results revealed that the bank has moved forward with a net income that increased by 256% and total assets by 20% compared to the end of 2018. The Bank’s financial statements for the year 2019 show that the total income amounted to 133 million Tunisian dinars ($48 million), up 29% compared to the same period last year. After deducting all operating expenses, net operating income went up 54% to 30 million Tunisian dinars (US$11 million). The Bank also increased its shareholders’ equity by 9% to 174 million Tunisian Dinars (USD 62 million) at the end of December 2019.

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