CPI Financial

IRTI-IDB and BCEAO organize first regional #consultation on #Sukuk Model Law

The Islamic Research and Training Institute (IRTI) and the Islamic Development Bank (IDB) have organised a regional consultation workshop on the Sukuk Model Law Project. Partner of the workshop was the Central Bank of West African States (BCEAO). The workshop was held at the BCEAO headquarters in Dakar, Senegal from 23-24 January 2017. The objective of the Project is to create a model Sukuk law and guidelines that leverage global best practises for creating a legal framework for Sukuk issuance and regulation. Subsequent regional consultations are planned for South East Asia, Central Asia and the MENA regions. IRTI Director General, Prof. Mohamed Azmi Omar, said the workshop reaffirmed the importance of Sukuk as an emerging instrument of resource mobilisation.

Awqaf and Minors Affairs Foundation signs #agreement with Islamic Development Bank

Awqaf and Minors Affairs Foundation (AMAF) has signed a Memorandum of Understanding (MoU) with the Islamic Development Bank (IDB) to collaborate in areas related to endowment services enhancing the prosperity of Muslim societies. Tayeb Al-Rais, Secretary General of AMAF, and Dr Bandar Al Hajjar, Chairman and President of IDB, signed the MoU in Jeddah, Saudi Arabia. The two parties will work towards maximising the availability of Islamic banking services to the endowment sector. AMAF and IDB will also explore the possibilities of forging endowment partnerships and engaging third parties. Other areas of cooperation include building successful marketing strategies and providing advanced endowment tools for banking, finance, and investment.

Emirates #RealEstate #Fund procures AED 700 million Shari’ah compliant finance facility

The #UAE-based Emirates Real Estate Fund (EREF) has procured a AED700 million ($190.6 million) Shari’ah compliant finance facility with Emirates NBD. CEO of Emirates NBD Asset Management Tariq Bin Hendi said the facility would enable the bank to complete strategic acquisitions to boost the value of the fund. Over the last 24 months the fund has invested over $163 million in real estate acquisitions including Binghatti Terraces in Dubai Silicon Oasis, Arabian Oryx House in Al Barsha Heights, part of Burj Daman Office Tower in the DIFC and a residential building in Remraam, Dubailand. The partially undrawn facility is a five-year, profit-only Mudharabah facility with a 10% repayment of principal in its fourth year.

Bank AlJazira profits drop by almost a third

#Saudi Arabia’s Bank AlJazira has reported a drop in profits of 32.25% to SAR 872 million for 2016. Profits for Q4 2016 were down 4.4% on a year ago to SAR 152 million. Earnings per share were down from SAR 3.22 to SAR 2.18. However, the loans and advances portfolio contracted by 0.18% to SAR 42 billion. The bank attributed the fall in net income to a decrease in operating income by 14%. There is also a decrease in net special commission income, net trading income and other operating income against an increase in net exchange income and net banking fees. Total equity as of end-2016 was SAR 8,104 million, comparing with amount of SAR 7,413 million the previous year, an increase of 9%.

ADIB issues capital-protected equity #investment structured note

Abu Dhabi Islamic Bank (ADIB) has launched its First Shari'ah compliant equity investment structured note of the year 2017. The note is linked to a basket of undervalued blue chip companies from diversified sectors including healthcare, technology & telecommunications. The investment note has a maturity of one year and minimises investment risk by providing 100% capital protection to the capital invested. The note is currently open for subscription until 22 January, 2017 with a minimum investment requirement of $30,000. ADIB’s last three matured equity investment notes have yielded returns of 4.2%, 4.8% and 6.2%, respectively.

SC unveils five-year blueprint to further strengthen #Malaysia as a leading Islamic investment hub

The Securities Commission Malaysia (SC) has launched a five-year Islamic Fund and Wealth Management Blueprint designed to drive further development and growth of Malaysia's Islamic capital market. The Blueprint aims to establish the country as a leading international centre for Islamic fund and wealth management. It was launched by Datuk Johari Abdul Ghani, Second Finance Minister of Malaysia, on behalf of Prime Minister Dato’ Sri Mohd Najib Tun Razak, at the International Fund Forum 2017. To be implemented on a phased approach, initial work programmes will include the formulation of a framework for SRI funds, the setting up of a global centre for Islamic capital market and the introduction of a digital investment services framework.

#AAOIFI approves draft #standard for central Shari'ah boards

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has approved the draft of the governance standard on central Shari’ah boards. The proposed standard covers several key aspects such as the appointment, composition and dismissal of the board members; tenure of the board; functions of a central Shari'ah board; responsibilities of the appointing authority; fit and proper criteria and independence. The draft is expected to be issued by beginning of 2017 and will be posted on the AAOIFI website. The AAOIFI board also discussed progress on projects being carried forward into 2017, including the Internal Shari’ah Audit, Shari’ah Compliance and Fiduciary Rating, and Comprehensive Ethics projects. The next meeting is proposed to be held by March 2017, in Oman.

Meydan receives AED 1 billion in Islamic financing

Abu Dhabi Islamic Bank (ADIB) has acted as the sole bookrunner on a AED 1 billion Islamic financing facility for the Meydan business group. Dubai Islamic Bank and Al Hilal Bank were both mandated lead arrangers for the financing, which matures in December 2018. The deal was structured to meet Meydan’s financing objectives, on the back of its ongoing District One Project, a master-planned luxury residential neighbourhood in Mohammed Bin Rashid City in Dubai. Commenting on the transaction, ADIB's CEO Tirad Al Mahmoud said this deal demonstrates ADIB's ability to bring together diverse elements with a particular focus on high-growth companies and the real estate sector. Earlier this year, Meydan raised AED 1 billion Islamic financing through a dual tranche offering, comprising a AED 700 million Sukuk issue and a AED 300 million term facility, both maturing in 2024. ADIB acted as the sole coordinator of the transaction.

Al Baraka Banking Group obtains a #licence to establish a new bank in #Morocco

The Bahrain-based Al Baraka Banking Group (ABG) has obtained the approval of the Bank Al Maghrib (the central bank of Morocco) to establish a new bank in Morocco. The Group is now represented in all countries in the Maghreb. The Group now owns banking subsidiaries in Algeria, Tunisia, Libya and Morocco, as well as the African continent in Egypt, Sudan and South Africa. The Group has already obtained the approval of the Central Bank of Bahrain to establish the Morocco bank and will carry the name of Al Baraka Bank Morocco. The new bank will be under the management of Al Baraka Banking Group and will operate within its network of subsidiary banking units, which are currently located in 15 countries and in turn own more than 700 branches.

#Morocco gives nod for five Islamic banks

Five Islamic banks are set to open in Morocco after Bank Al-Maghrib, the country’s Central Bank, approved five applications. A further three banks have been given permission to sell Islamic products. A Shari’ah committee which will govern all Islamic finance activities will also be established. The five banks are: CIH Bank in partnership with Qatar International Islamic Bank; BMCE Bank of Africa jointly with the Saudi/Bahraini group Dalla Al Baraka; Banque Centrale Populaire with the Saudi group Guidance; and Crédit Agricole du Maroc in partnership with the Islamic Corporation for the Development of the Private Sector (ICD). Attijariwafa Bank is currently in talks about a future partnership. Banque Marocaine du Commerce et de l’Industrie, Crédit du Maroc and Société Générale have all been given the green light to sell Islamic products.

#Emirates #Islamic fosters #innovation in #Islamic #Finance

The Emirates Islamic Bank recently organised an ‘Innovation Day’ where various internal teams shared and showcased their innovations with working prototypes, to the bank’s management.
Emirates Islamic staff across business units participated in the event, designed to ideate and showcase innovative solutions in banking and financial technology. Emirates Islamic’s Innovation Day was aligned with the National Innovation Strategy launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai as a primary tool to achieve UAE Vision 2021 in the finance and banking sector.
Commenting on the bank’s push toward innovation, Jamal Bin Ghalaita, CEO of Emirates Islamic said: “Banking today demands an innovative and fresh approach to keep pace with the evolving needs of our customers. Tapping into our internal talent pool for ideas allows us benefit from their varied skills and experience to create products that match customers’ expectations and needs.

IsDB prize winner foresees bigger global role for Islamic finance

Winner of the 2016 Islamic Development Bank (IsDB) Prize in Islamic Banking Prof. M. Kabir Hassan has said that Islamic finance could play a bigger role on the global stage especially towards achieving the Sustainable Development Goals (SDGs). This can be achieved through profit-and-risk sharing entrepreneurship, home financing and Islamic social finance instruments of Zakat, Awqaf, and Sadaqah. According to Prof. Hassan, research has proven that the Islamic financial system operates more efficiently and with greater stability. However, he added that for Islamic finance to play its role successfully there is the need to maintain its original binding principles. Prof. Hassan urged regulators to monitor Islamic financial products to ensure that they meet the criteria of maintaining justice. He also urged the IsDB to make available comprehensive and credible Islamic finance data for the use of all industry stakeholders.

#Sukuk maintains positive outlook; undeterred by continued slowdown

Thomson Reuters has released the findings of its fifth consecutive Sukuk Perceptions and Forecast study. Despite a bleak 2015, market players remained hopeful for a robust year ahead. Core markets have adapted to ongoing low oil prices, while apprehension over expected global interest hikes has begun to subside. However, the decision from Bank Negara Malaysia (BNM) to cut short-term Sukuk issuances continues to dampen Sukuk supply. Total Sukuk issued in the first 9 months of 2016 dropped further by 18.46% to $39.8 billion from $48.8 billion for the same period in 2015. According to Thomson Reuters' Managing Director, Nadim Najjar, the global Sukuk market continued to drop in terms of volume and value during 2016. The report found that both potential demand and supply of Sukuk are expected to grow, with demand substantially exceeding supply until 2021.

GFH signs final #Sukuk restructuring agreement with Gulf Holding and Al Rajhi Bank

GFH Financial Group (GFH) has signed a final Sukuk restructuring agreement with Gulf Holding Company (GHC) and Al Rajhi Bank. The agreement allows for the rescheduling of the Villamar project’s finances and officially marks the re-launch of the project located in the Bahrain Financial Harbour. Villamar @ The Harbour is one of the flagship projects of GHC and is valued at $700 million, being a residential complex spread over 35,900 square meters. As per the agreement, GFH will participate in financing completion of the project with an amount up to $50 million. The restructuring will have a positive impact on GFH’s shareholding in Gulf Holding Company.

Islamic Development Bank prices $1.25 billion #Sukuk issuance

The Islamic Development Bank (IsDB) has successfully priced a $1.25 billion, five-year Sukuk under its $25 billion Trust Certificate Issuance Programme. The Sukuk was priced at par at 2.263%, to be payable on semi-annual basis. This issuance marked the Bank’s second benchmark issuance in 2016. In terms of the final allocation, the distribution was well diversified with 72% allocated to the Middle East and North Africa (MENA) region, 25% to Asia and 3% to Europe. Central banks and official agencies were allocated 90% followed by 10% to banks. IsDB’s CFO Ahmet Tiktik thanked the member countries and expressed his hope that this funding will continue to support their developmental needs.

GCC banks looking to Africa for new opportunities: EY

According to EY’s GCC Wealth and Asset Management Report 2016 'Global forces drive regional realities', the larger local banks in the GCC are approaching saturation in their home market and are starting to venture out to new markets such as Africa. George Triplow, EY's Wealth and Asset Management Leader says the UAE’s strong ties with African markets has encouraged a number of African businesses to use Dubai and the Dubai International Financial Center as an infrastructure hub. The regional retail wealth management sector faces the ongoing issue of lack of transparency and independence. According to Triplow, the key would be to provide lower costs, genuinely independent advice and technology-supported portfolio diversification with a focus on passive funds and exchange-traded funds, rather than complex structured products.

Prof. Datuk Rifaat Ahmed Abdel Karim wins the Royal #Award for Islamic Finance 2016

Professor Datuk Rifaat Ahmed Abdel Karim was conferred the Royal Award for Islamic Finance 2016 by the King of Malaysia, His Majesty the Yang di-Pertuan Agong. The biennial Royal Award initiative recognises individuals who have excelled in advancing Islamic finance globally. Professor Datuk Rifaat’s contributions include the establishment of two international standard setting bodies, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Islamic Financial Services Board (IFSB). He is the first Secretary-General of the IFSB, a post he held since the IFSB started to operate in 2003 until 2011. Under his stewardship, the membership of the IFSB expanded from nine founding members in 2003 to almost 200 members in 2010. He is a prolific writer and has authored several academic papers in key areas including accounting, finance, governance, Shari’ah and regulatory issues to further contribute to the development of Islamic finance.

ICD, Dragon Capital Partners (DCP) develop Shari'ah-compliant investment #fund in #Kazakhstan

Dragon Capital Partners (DCP) has mandated the Islamic Corporation for the Development of the Private Sector (ICD) as a strategic advisor for developing a joint investment fund to raise $100 million for Kazakhstani SMEs. The purpose of the fund will be to co-invest with foreign investors in Kazakhstan and unlock growth potential in key sectors of the country. The Silk-Way Growth Fund initiative aims to attract international equity funds to invest in Kazakhstani SMEs. The Fund will invest in high-growth Kazakhstani industrial and manufacturing SMEs that enjoy competitive advantages and strong export potential and capacity. The Fund will help reviving the Silk Road on Kazakhstani territory.

IFSB issues Exposure Draft on Disclosure Requirements for Islamic Capital Market Products

The Islamic Financial Services Board (IFSB) has issued its Exposure Draft of Guiding Principles On Disclosure Requirements for Islamic Capital Market Products (ED-19) for Public Consultation running from 31 October 2016 to 31 December 2016. ED-19 categorises a set of general principles that are common to the disclosure of both Sukuk and Islamic Collective Investment Schemes (ICIS), as well as specific principles applicable to each sector. The ED outlines disclosure requirements for Sukuk and ICIS, covering the main stages of disclosure and point-of-sale disclosure. The IFSB will organise a Roundtable on Disclosure Requirements on 30 November 2016 in Kuala Lumpur, Malaysia and a Public Hearing on ED-19 on 13 December 2016 in Cairo, Egypt. ED-19 will be revised based on the written and oral feedback received during the public consultation process and is planned to be submitted for final approval of the IFSB Council in April 2017.

#Emirates REIT becomes the World’s largest listed Shari'ah compliant REIT

Emirates REIT, one of the UAE’s first regulated Shari'ah compliant Real Estate Investment Trusts listed on Nasdaq Dubai, saw a 13% increase in total portfolio value. The total portfolio value stood at $742 million, a year-over-year increase of $85 million, making it the largest Shari’ah compliant REIT globally. The total property income for the nine months also increased 22% to $36.3 million. The net asset value increased to $1.60 per share, or $480.7 million. CEO Sylvain Vieujot thanked the UAE’s leaders who established a stable financial ecosystem with solid laws and regulations that have allowed the United Arab Emirates to become a world leader in Islamic finance.

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