IslamicFinance.de

Arab investors in a €400m (US$516m) French property fund operated by Dubai Islamic Bank (DIB) are seriously thinking about legal action because they have received neither any dividend nor audited financial statements on the fund's status for the last three years. The launch of the Al Rayyan II French Property Fund took place in 2005. It is managed by Qatar Islamic Bank (QIB) on behalf of DIB. The fund was used to invest in several income-producing properties in France. Initially, a yearly return of around 8% was given to the investors.

An exclusive home finance scheme for high-end residential communities was launched by Tourism Development and Investment Company (TDIC) and Abu Dhabi Islamic Bank (ADIB) on Saadiyat island. THe new scheme is applicable to purchases of the luxury Saadiyat Beach Villas. A unique and simple home finance package for potential residents of the Villas including 100% finance up to Dhs30m repayable over a period of 25 years with a competitive profit rate starting from 4.99% will be offered.

Emirates Islamic Bank (EIB) announced the successful integration of of Dubai Bank customers, branches and operations into its platform. The most branches have now been converted to EIB systems and brand. The remaining ones will undergo conversion at the beginning of December. EIB further explained that customers whose accounts have been migrated from Dubai Bank will receive new account numbers. The old account numbers and existing identification will still be valid for the foreseeable future across all banking channels.

The UAE has improved its ranking in terms of corruption and has moved one place up in a global ranking of countries perceived as the least corrupt. According to this year's survey, it is the only state in the Arabian Gulf to move to a better position. The annual study of the Berlin-based Transparency International examines the outside perceptions of dealing with public sector officials. It showed that the UAE reached the 27th place, alongside Qatar. The latter, on the other hand, has moved five places down since 2011.

According to an announcement by Noor Islamic Bank, the bank will launch its new product Business Instalment Finance. This new package will serve to cater to the financial requirements of small businesses. Small businesses which already have a business relationship with Noor Islamic Bank will have access to loans at competitive profit rates. Part of the new package is fixed-term financing of up to AED 750,000 for 48 months. Documentation and the processing time will be held at minimum.

In the attempt to assure Dubai's position in the Middle East as a center for transport and tourism, Dubai is about to launch some grandiose construction projects. Sheikh Mohammed bin Rashid al-Maktoum, Dubai's ruler, ordered a a new city development named after himself to be built. According to estimates, the project will most probably be worth about $10 billion. It shall include 100 hotels, the world's largest shopping mall, parks, art galleries and exhibition centers. A further project for a leisure complex of five theme parks worth $2.7 billion has also been announced.

AED1.05bn (US$410m) have been set aside by the government of the UAE in order to clear defaulted debts which Emirati nationals owe. According to a recent statement, the Higher Committee of the Nationals' Defaulted Debts Settlement Fund has given its approval for this sum complying with a directive by the Gulf state’s president HH Sheikh Khalifa bin Zayed Al Nahyan. The directive states that rescheduling of loan repayments by indebted citizens is not to exceed half of their monthly income. Banks on the other side have agreed to cut interest on monies owed by 1%.

A key business demographic in the Middle East are family businesses. However, various factors like increased competition, a global economy that is going through turmoil, reduced or more expensive credit facilities, the call for greater transparency and, in some countries, greater regulation have caused family businesses serious difficulties. The latter are not able to change these factors, which are mostly beyond their control. What they can do, on the other hand, is to improve their corporate governance. Generally, corporate governance is defined as structures, policies, plans and regulations which determine the way the management of an entity will function.

According to Hussain Al Qemzi, CEO of Noor Islamic Bank, three to five years will be necessary in order to to comply with new central bank regulations. The regulations state requirements for lenders to limit their exposure to state entities in the Gulf state. The new rules restrict banks from lending more than 100% of their capital to government institutions or more than 25% of their capital to any state-related entities. Hussain Al Qemzi described the given timeframe as "challenging".

According to a senior banker, UAE banks face difficulties in implementing the central bank’s new regulations on curtailing lending to government firms. Noor Islamic Bank's CEO - Hussain Al Qemzi - explains that the objective of the central bank is not clear enough. He further adds that it is not the optimal timing for exercising control and putting in place regulations so that banks do not have enough time to change the situation. They are unable to sell the huge amount the possess of these assets in such a short time in the market available.

Arabia CSR Network took part on the prestigious World Responsible Economy Forum thus representing the Arab region. The key issues of Forums where about 5000 business leaders, sustainability professionals and students came together were: sustainable marketing, corporate models and governance. The Network presented their key perspectives during the panel session and also speaking in plenum on the third day of the conference.

Thalassemia medical centre has acquired a Transcranial Doppler Ultrasonography (TCD) machine that can help prevention of stroke in patients with sickle cells as a donation from the Dubai Islamic Humanitarian Foundation and Dubai Islamic Bank. The center registers over 150 sickle cell patients who will benefit from a new machine.

KPMG and ACCA report underlines the necessity of the harmonization of the financial reporting and tighter cooperation of Islamic banks with the International Accounting Standards Board in order to develop guidance, standards and educate the investor community on key issues.

GFH Capital is a private equity firm based in Dubai, UAE. According to its website, the company has been highly successful investments and fund management over the past ten years. It also points out that it has handled investments worth more than eight billion US dollars in 25 different countries. Its funds to some extent come from the Dubai Islamic Bank, the World Bank and the Islamic Development Bank. The Gulf Finance House is an investment bank Bahrain. It completely owns GFH Capital Limited. Just as GFH Capital, the Gulf Finance House has made numerous successful investments worth billions of American dollars. GFH Capital has made its bid for Leeds United on its own and will handle the deal independently of Gulf Finance House.

An improved version of Attijari Al Islami's Ijarah Home products has been introduced to the public. Thus, UAE nationals and residents are enabled to afford their dream home compliant to the principles of Shariah. The improved version contains some new features and aims to address the growing demand for Shariah-compliant financial instruments in the UAE. Transparent and competitive rates are offered in order to be able to guarantee great value to the clients of the Commercial Bank of Dubai.

Al Ramz Securities' leading role in local industry has again been reaffirmed by the introduction of the Islamic Margin Trading service, which is first for the country. The pattern of the service is similar to that of the ‘Murabaha’ type of Shariah-compliant ‘cost-plus’ financing. Using its Islamic Margin Trading scheme, the company purchases Islamic-compliant shares specifically agreed upon with the client and, after that, resells them in accordance with the Murabaha sharing concept. The payment mode is to be chosen in advance.

For the third time, the Dubai Women Establishment (DWE) will be host of its flagship Arab Women Leadership Forum. The event will take place in Dubai from November 19th to 20th. The main focus of the forum will be issues and opportunities regarding the role of women in the boardroom. The forum is titled "Board Leadership '&' the Case for Diversity." National as well as internationally-recognized speakers, and accomplished women role models will participate. The forum, which is conducted on a yearly basis, plays a key role in DWE's agenda of activities and initiatives with the purpose of promoting the professional development and career advancement of women in the UAE.

Finance House PJSC (IFH) has made an announcement about the grand opening of its new main branch. It is located in the centre of Abu Dhabi. IFH is committed to growing across the UAE and to serving the customers who are seeking Shari'a compliant financial services. It offers a wide and diversified portfolio of Shari'a compliant products including personal and business finance alongside investments. Thus, it aims to enrich the financial experience of its customers using a customer-centric approach.

Last month, two UAE real estate developers - Al Futtaim Group and Emaar Properties - announced a big project in Egypt. Not only was this a boost to the country’s property market but it also acted as a sign of a revival of cross-border investment in the region. According to the two companies, they plan to invest about 5bn Egyptian pounds ($820m) in building the "Cairo Gate" which will be situated off the Cairo-Alexandria desert highway. The complex will be 65 hectare big and will be build around a shopping mall. An office park, a luxury hotel, schools, medical facilities and residential space are included in the plan.

After an investment, which turned out unsuccessful, at the beginning of the ongoing Arab turmoil, there is some positive perspective. A combination of excess liquidity and renewed business confidence has given motivation to new investment activities in the private equity sector. As Shailesh Dash, founder and CEO of Al Masah Capital, explained, the amount of money raised by private equity fund managers in the Gulf region has reached approximately 16.5 billion U.S. dollars in the last 10 years. He further cited two studies by consulting firms Preqin and Bain & Company which found out that private equity firms in the Gulf Arab region are in possession of between 3.8 billion to 5 billion U.S. dollars.