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Islamic Corporation for the Development of the Private Sector (ICD) CEO Khaled Al-Aboodi speaks out on the work he does around the world to bolster the private sector in accordance with the principles of Shari’ah law, and harnessing the Islamic economy’s vast potential. He says that all of the Halal activities need to be focused and there needs to be an established link between Islamic finance and the Halal activities, and make sure they are served by Islamic finance. The more links, the more demand there will be for Islamic finance, so these forces will work together to make both bigger. However, there are also weak links, like he lack of unified regulation for Islamic finance.

Upside for sovereign Sukuk issuance in countries in the Gulf Cooperation Council is limited in 2015, in Standard & Poor's Ratings Services' opinion. The rating agency expects that lower oil prices will lead to fiscal deficits in some countries in the GCC, but nonetheless most governments' net asset positions will likely remain strong enough to enable their financing. Most sovereign Sukuk issues will relate to essential infrastructure projects and refinancing needs. Government-related entities' (GREs) financing activity, the availability of large government assets, and healthy liquidity in the banking sector all limit the linkage between changes in oil prices and the potential for sovereign Sukuk issuance, according to S&P.

Moody's Investors Service says that the Indonesian government's (Baa3 stable) Islamic finance roadmap will encourage consolidation among smaller Islamic banks in the country, and foster the development of a larger domestic Sukuk market. The consolidation of state-owned and commercial Islamic banks will increase the size of the banks' capital bases, improve cost efficiencies, and allow increased underwriting in the corporate and infrastructure sectors. Moody's report points out that Islamic banks operate less extensive branch networks when compared to conventional banks, and their capital bases are smaller. Their riskier customer base has led to non-performing financing ratios that are consistently higher than the comparable non-performing loan ratios at conventional banks.

The Governor of the National Bank of Kazakhstan, H.E. Kairat Kelimbetov, launched the Islamic Financial Services Industry (IFSI) Stability Report 2015 during the Opening Session of the 12th Islamic Financial Services Board (IFSB) Summit on 20 May in Almaty, Kazakhstan. In essence, the IFSI Stability Report 2015 discusses the following topics: An overview of the IFSI as well as updates on trends and developments in the three sectors of the industry; Initiatives undertaken by international standard-setting bodies; Surveillance framework for the global financial system including identification of the gaps; Emerging issues in Islamic finance. The IFSI Stability Report 2015 aims to contribute to a wider cross-border engagement on stability issues in Islamic finance.

The Islamic Financial Services Board (IFSB) and INCEIF - The Global University of Islamic Finance have renewed an agreement to facilitate international cooperation between the two organisations to provide relevant activities relating to capacity building and awareness promotion in Islamic finance. This mutual co-operation aims to strengthen the efforts in promoting an exchange of information, undertaking research, development, training and education in the Islamic financial services industry. Under the first MoU, signed in 2012, the IFSB and INCEIF held a series of six Executive Forums (EF). he next Executive Forum on Islamic Finance, themed Building Momentum for Islamic Liquidity Management will be held on 3 - 4 June 2015 in Kuala Lumpur, Malaysia.

The Association for Development of Islamic Finance (ADIF) announced the signing of memorandum on cooperation with Shariyah Review Bureau (SRB). ADIF solely supported by National Bank of Republic of Kazakhstan (NBRK), is responsible for promoting, enhancing and maintaining the Islamic financial sector and cooperation with investors from GCC and South East Asia. The agreement was signed at the 12th IFSB Summit which took place in Almaty, Kazakhstan. Speaking at the Summit, Chairman of the Presidium, Zaratkazy Nurpiisov said, given the magnitude of Muslim population, enormous oil reserves, rich minerals and metal explorations the country has considerable advantages for Islamic finance.

As Islamic finance regulators and thought leaders converge on the commercial capital of Kazakhstan, Almaty, for the 12th Annual Summit of the Islamic Financial Services Board (IFSB), the world of Islamic finance is buoyed by a series of encouraging developments in the weeks leading up to the Summit. The Summit is scheduled to be held on 20-21 May 2015. The transformational impact of the Islamic finance industry can only be truly enhanced inter alia if the requisite infrastructure is in place. As such, issues relating to ‘Core Principles for Islamic Finance: Integrating with the Global Regulatory Framework,’ the Summit theme, is pertinent and follows the adoption last month by the IFSB of a new Standard on Core Principles for Islamic Finance Regulation (CPIFR)(Banking Segment) (IFSB-17).

ICBC Financial Leasing signed a landmark collaboration agreement with the Islamic Corporation for the Development of the Private Sector (ICD). The two entities will work together across multiple lines to develop Islamic capabilities and opportunities and assist economic evolution across ICD member countries: including the provision of financing and banking services such as Ijarah, placement of funds, lines of finance and liquidity management; as well as technical assistance, training and expertise. The parties also plan to encourage and implement co-financing, club deal and syndication projects for eligible private sector projects.

As part of the initiatives of the Dispute Resolution Authority (DRA), the DIFC has launched the DIFC Wills and Probate Registry, established by Resolution No. 4 of 2014. The new service aims to provide non-Muslim expatriates the ability to register English language wills that will allow their assets to be transferred upon death according to their wishes. The new rules have been drafted on the basis of Common Law principles from the Estates Act and Probate Rules of the UK, and legislation of other leading common law jurisdictions such as Singapore and Malaysia. While the rules are comprehensive, they are also easily accessible to legal professionals in the UAE.

Fatima Qasimi has been appointed as the Chief Executive Officer of Aseel Islamic Finance. Ms. Fatima joins Aseel Islamic Finance with almost 20 years of experience in consumer, corporate and Islamic banking. She joined the FGB group in 2008 as Head of Corporate Banking. She has a Bachelor’s degree in Business Administration from Strayer University, Washington, USA and an MBA in Financial Management from South Eastern University, London, UK. In her new position as CEO of Aseel, Fatima’s focus is on developing two business models for the company to cater to the Islamic financing needs of UAE consumers and corporates, particularly SME and mid-market businesses.

The Islamic Financial Services Board (IFSB) has announced the release of a set of indicators on the financial soundness and growth of the Islamic banking systems in 15 member countries. This initiative is in line with Article 4 of the IFSB Articles of Agreement. The indicators, called Prudential and Structural Islamic Financial Indicators (PSIFIs) capture information on the size, growth and structural features of Islamic banking systems and on their macroprudential condition by looking at measures of their capital, earnings, liquidity, and exposures to various types of risks. They also cover the indicators on capital adequacy and liquidity based on newly issued IFSB Standards to complement international regulatory reforms under the Basel III regime.

Noor Bank has successfully priced its inaugural five-year $500 million Sukuk today. With the final pricing of 2.788 per cent for the issue, it becomes the lowest ever pricing paid by any Sukuk issuer in the UAE till date. The final pricing came at the back end of global roadshows undertaken across Asia, Middle East and Europe. This pricing of 130 bps over five-year mid-swaps is at the tight end of the final price guidance and compares to initial profit thoughts of 140 bps area. The senior unsecured issuance rated ‘A-’ (EXP) received an overwhelming investor interest from various geographies including the Middle East (54 per cent), Europe (29 per cent) and Asia (17 per cent) wherein more than 45 per cent of the issuance was allocated to European and Asian investors.

Moody's Investors Service has today downgraded to Baa3/Prime-3 from Baa2/Prime-2 the deposit, issuer and senior unsecured debt ratings of three Bahraini Banks: BBK B.S.C., National Bank of Bahrain BSC, and Bahrain Development Bank B.S.C. Concurrently, Moody's downgraded the baseline credit assessments (BCAs) of BBK and National Bank of Bahrain to ba1 from baa3. These actions follow Moody's downgrade of Bahrain's government bond ratings to Baa3 from Baa2 on 16 April 2015 and reflect (1) the government's reduced capacity of support, and (2) the challenges in view of weaker economic growth. The negative outlooks assigned to the Baa3 long-term ratings of the three banks are aligned with the negative outlook on the government's Baa3 bond rating.

The Kenya Commercial Bank (KCB) Group has launched its Islamic banking unit as it seeks to tap into the growing demand for Islamic financial products across the East African region. The launch paves the way for the full roll-out of Shari’ah-compliant products under the proposition dubbed ‘KCB Sahl Banking’, after KCB received all the necessary regulatory approvals. In addition to the Kenyan operation, KCB Bank Tanzania is offering Islamic Banking services supported by the regulatory framework that is in place. For a start, KCB will roll out the Islamic Banking products in six of its branches as ahead of a national roll-out.

Bahrain-based Tadhamon Capital BSC has announced its successful exit from Paris Gardens - its first investment in a Central London student accommodation property. The sale of the property saw investors of Tadhamon Capital achieve more than 70 per cent return on their invested capital within a 30 month period. Since completion in the summer of 2013, the property has generated a stable net income of 8 per cent to investors. The sale of the property generated an IRR in excess of 25 per cent. Simultaneously, Tadhamon Capital has entered into a JV agreement for the development of a new, high-quality student accommodation, located at the centre of Kingston-Upon-Thames (South London).

Dentons has advised Ajman Bank on $155 million Islamic financing facilities made available by a syndicate of banks. The facilities comprise of a dual commodity Murabaha and Wakala arrangement with a two year lifespan. Noor Bank acted as the arranger and bookrunner for the deal, and along with Emirates Islamic Bank, First Gulf Bank, United Arab Bank and Warba Bank which participated in the facilities. This transaction follows on from the $200 million Shari’ah-compliant syndicated facility to Ajman Bank that Dentons worked on in December 2014.

Afaq Khan, CEO of Standard Chartered Saadiq, has decided to leave the Bank and plans to take a career break, according to a statement by the bank. Afaq Khan joined Standard Chartered in 2003 and is a well-known and well-respected figure in the Islamic finance industry. Khan is the second senior figure to leave Standard Chartered Saadiq in the last six months. At the end of October last year, Wasim Saifi resigned as Global Head of Islamic Banking for Consumer Banking. Saifi had rejoined Standard Chartered in the role in January 2011. The bank said a successor to Afaq Khan will be announced in due course.

London Central Portfolio (LCP) announces today that they will be closing their latest GBP 100 million quoted property fund on April 17th. London Central Apartments II (LCA II) is the only regulated vehicle exclusively targeting Prime Central London’s (PCL’s) Private Rented Sector. It will acquire one and two bedroom units as these are the most highly demanded and offer the highest returns. The properties will be renovated and interior designed to maximise capital uplift and rental returns. It is a five year fund, projecting an IRR of 12 per cent p.a. and shares are to be quoted on the Channel Islands Securities Exchange Authority.

Global audit services firm KPMG has exclusively partnered with Hawkamah, the Institute for corporate governance, to establish the first Audit Committee Institute (ACI) in the UAE. The Audit Committee Institute (ACI) will provide information, resources and knowledge sharing opportunities, to help audit committee members, directors and senior management enhance the effectiveness, integrity and oversight of the financial reporting process in the UAE and the MENA region. The ACI will be open to audit committee members of private, public, and UAE government institutions.

Qatar International Islamic Bank (QIIB) held its Ordinary General Assembly Meetings on 15 March. Among the agenda items approved, approval was given to the Board recommendation to issue Additional Tier 1 Sukuk non-convertible into ordinary shares up to QAR 3.0 billion. The Board was delegated powers to decide the size of each issuance, terms and conditions, issuance currency after getting all necessary approvals from supervisory authorities. The meetings also approved the proposal to pay 40 per cent of the bank capital as cash dividends, equivalent to QAR 4.0 per share.