IslamicFinance.de

Saudi Arabia plans to set up a Fannie Mae-style company in conjunction with the upcoming mortgage law to buy mortgages from financial institutions and help develop national sukuk and debt markets, Saudi Arabia's finance minister Ibrahim al-Assaf said according to Reuters.

Investment Dar will brief creditors and investors in a meeting for June 8 in the United Arab Emirates on how its restructuring plan is progressing, the firm said in statemnt according to Reuters.

Indonesian shipping firm, PT Berlian Laju Tanker Tbk , in a prospectus published in Bisnis Indonesia newspaper, the firm said it plans to sell 400 billion rupiah of conventional bonds and 100 billion rupiah of ijarah sale-and-leaseback sukuk, which will be offered May 20-25.

It has appointed PT Danatama Makmur and PT Andalan Artha Advisindo Sekuritas as underwriters.

Nasser Al Sheikh, Dubai said that it received interest from sovereign wealth funds for the second tranche of the USD 20 bn bond, which will only be issued if needed.

Abu Dhabi-based Dolphin Energy has signed USD 3 bn of loans that will part refinance a USD 3.45 bn debt facility maturing in July, it is also finalising an Islamic tranche worth about USD 500 mn and is preparing to launch a bond worth USD 500 mn to USD 1 bn.

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) will seek a mandate from its trustees to examine the degree of sharia financial products' compliance with its 40 standards, its secretary-general, Mohamad Nedal Alchaar, said according to Liau Y-Sing from Reuters.

Lack of common standards makes it difficult to sell products across borders, while possibly enhancing innovation.

Dubai real estate developer Deyaar will launch a series of funds of up to AED 1 bn to buy distressed debt, including its own, as it looks to boost returns for shareholders, reports John Irish on Reuters.

Its first AED 500 million fund is about 60-70 % subscribed by a mix of local and overseas investors and would buy back properties on which investors have defaulted from Deyaar's own portfolio according to the CEO, Giebel.

Deyaar will rent out the units to provide cash flow for the company before selling them once the Dubai property market recovers.

Al Baraka Banking Group said it planned to enter the French market to tap into Western Europe's largest Muslim community reported Will Waterman in Arabianbusiness. Further Al Baraka's units in North Africa are planning tie-ups with French partners to "establish Islamic banking in France", it said in a statement on the Nasdaq Dubai, where it is also listed. However no legal agreements have been finalised

Armen Papazian said he was named to the post head of Islamic finance by UBS Investment Bank 2-1/2 weeks ago with a global mandate to hire staff and design innovative products and as sign of commitment, that UBS believes in the growth sector.

Faisal Private Bank's Chief Executive, Marco Rochat, said the absence of a global set of harmonised rules on sharia compliance created an unlevel playing field, reported Martin de Sa'Pinto on Reuters. Faisal Private Bank adivses on nearly USD 500 mn.

The hedge fund platform Al Safi set up by Barclays Capital is planning Private Equity funds, reported Pratima Desai and Cecilia Valente on Reuters.

A lack of legislation is seriously hampering domestic issues of Sukuk in Kuwait, forcing companies to go abroad, Abdulkader Thomas, president of consultancy Shape Financial Corp said to Ulf Laessing and Raissa Kasolowsky published on Reuters. A ministerial decree allowing sukuk issued in 2007 was not adequate for the market to flourish, Thomas said. Saudi Arabia would also have to overhaul its legislation for its sukuk market to function more effectively.

BMB Islamic adviced on the Sharia compliant F&C fund observing social responsible investing rules as well.

Gulf Finance House plans to launch a GBP 50 mn UK commercial property fund and a USD 50 mn Sukuk fund in the GCC. The USD 50 mn sukuk fund, to launch in the next two weeks pending regulatory approval, would focus on government, quasi-government, or very stable GCC issues, reported Ulf Laessing and Raissa Kasolowsky on Reuters.

Unicorn Investment Bank consider mergers in the Gulf, and acquisitions of about USD 2 bn in the Gulf, Europa and Asia. It plans a Sukuk Al Ijara about USD 425 mn in Q3 to fund its expansion reported Ulf Laessing and Raissa Kasolowsky on Reuters. Current targets are two Gulf firms, retail banks in Pakistan, India and Malaysia and one in Britain or continental Europe. Unicorn received also a license in Malaysia for a new set up.

Plans announced last September to issue USD 1.5 bn Sukuk by the end of 2008 had been postponed due to market conditions.

Bank of London and the Middle East (BLME), has delayed one global equity tracker and one emerging markets equities fund as the financial crisis constrains clients in the Middle East according to the CEO, reported Cecilia Valente and Daryl Loo on Reuters. One fund which has been delayed but is now poised to launch later this year with $70 million will aim to exploit a niche market for office space for doctors in the United States. BLME has also raised GBP 50 mn from an institutional investor for a UK property fund and plans to raise GBP 20 mn by June for a pooled UK property fund.

Algebra Capital sees the Mideast asset management sector to grow by 15 % from USD 80-100 bn to USD 300 bn by 2014. Fixed-income, which contributes less than 2-3 % of regional assets compared with a majority in equity investments, could provide a "tremendous growth" opportunity if regulators and governments focus on creating the domestic demand for new issues, Managing Director Mohieddine Kronfol said.

Franklin Rersouces Inc. holds a 40 % stake in Algebra Capital and have jointly launched 5 products on the equity side and now looking at fixed-income products and Islamic.

Cecilia Valente reported on Reuters that Lloyd's of London is examining the viability of an Islamic reinsurance, or takaful, syndicate with interested parties planning capacity of up to GBP 200 mn (USD 294.5 mn) according to
Mohammad Khan, director for takaful at PwC. A previous syndicate in 2006, Creechurch Underwriting Limited , did not underwrite ultimately because the firm was taken over.

Growth in the takaful industry, has slowed slightly as a result of the global economic crisis but is still outpacing the Islamic finance sector as a whole, Peter Hodgins, partner at international law firm Clyde & Co told Reuters: "In percentage terms it is growing faster than the Islamic finance sector and 30, 40 or 50 percent growth in premiums is not unheard of."

A recent report by HSBC estimated the global takaful market at $14.4 billion by 2010.

Kuala Lumpur-based Islamic reinsurer ACR ReTakaful SEA expects to grow its business in Malaysia, Brunei and Indonesia. The company is interested in specialized risk, including special liabilities, offshore energy, aviation and satellite and space insurance. The firm was in talks to enter into a strategic alliance with an Islamic reinsurer in Malaysia, which would likely take place in September.