Latest News - Monday, 3 August 2015
This Week’s Newsletter
This is a free content. Click title to see the full news. Daily Cover Story - Islamic investors parking money in education sector
GLOBAL: GFH Capital is eyeing a majority stake in a Dubai-based private school against the backdrop of a significant Islamic investment wave into the lucrative private education sector. To be executed within the next 12 months, GFH Capital’s...
Ramadan has drawn to a close and the Islamic world resumes normal service after its annual period of contemplation, introspection and...
Editor's Note
Although Ramadan may be at an end for yet another year, the principles and precepts which drive the Islamic faith are...
Wednesday, 29 July 2015
Volume 12 Issue 30
E.g., 08/03/2015
E.g., 08/03/2015

Daily News Briefs

SAUDI ARABIA: EFG Hermes Asset Management has appointed Sadiq Hussain as the managing director of its asset management division. Sadiq joins the firm from JPMorgan Securities in Dubai where he served as the head of MENA equities and global frontier markets.


OMAN: Capital Intelligence (CI) in a statement has affirmed Oman’s long-term foreign and local currency ratings and short-term foreign and local currency ratings at ‘A’ and ‘A1’ respectively with a stable outlook. CI notes that in the absence of any expenditure adjustment, lower...


UK: The UK Trade & Investment (UKTI) has highlighted 18 potential Shariah compliant regeneration investment opportunities in the UK in its bid to attract foreign investment into the country and boost its Islamic finance industry. The projects are listed in the department’s...


MALAYSIA: The Malaysian Financial Planning Council (MFPC) has launched the 1st MFPC National Shariah Financial Plan Competition to enhance the Shariah financial planning sector. According to a press release, the competition – in partnership with the International Center for...


UAE: The Takaful Contribution Fund at Dubai Electricity and Water Authority (DEWA) is planning to introduce new programs and services, it said in a statement.


MALAYSIA: Great Eastern Takaful (GETB) is looking to launch two more Takaful products by the end of 2015. IFN has learned from a source that the plan is still in the midst of getting approval. 


KENYA: The Youth Enterprise Fund (YEF) is exploring options to make the fund Shariah compliant as it targets the Muslim population, according to Wajir Times quoting the fund’s CEO Dr Catherine Namuye. YEF is a state corporation focusing on enterprise development to increase...


BAHRAIN: Tamkeen, in partnership with Ithmaar Bank, has signed an agreement to add BHD10 million (US$26.52 million) to their joint enterprise finance scheme portfolio in a bid to help enterprises realize their strategic business objectives. According to Bahrain News Agency, with...


BAHRAIN: According to a press release, Gulf Finance House (GFH) has officially changed its commercial name to GFH Financial Group commencing the 31st July 2015, in line with its extraordinary general meeting’s approval obtained on the 12th April 2015.


CHINA: IFN has learned that a China state-owned enterprise has approached banks to arrange two Islamic finance transactions, and has mandated Singapore-based Silk Routes Financials to advise on the matter. A source close to the deals has revealed that the Chinese firm is...


IRAN: The outlook on the long-term foreign currency rating (FCR) of Export Development Bank of Iran (EDBI) has been upgraded to positive from stable by Capital Intelligence on the back of Iran’s revised sovereign long-term FCR outlook (also to positive from stable) following the...


IN THIS WEEK’S ISSUE

Case Study

National mortgage provider Cagamas on the 26th June successfully concluded the sale of its RM500 million (US$131.61 million) Islamic commercial paper (ICP). Auctioned at a time when markets were nervous about the Federal Open Market...

IFN Country Analysis

Determined to diversify its pool of funding and propel its Islamic finance industry forward, Jordan is making steady progress in that respect. VINEETA TAN traces the development thus far. Regulatory landscape Islamic banking was...

Weekly Poll

As the industry progresses towards an era where Islamic finance is no longer a foreign concept, one cannot help but ask what initiatives could be taken to accelerate and cement this position. Making a bold move, several Islamic banks have...

IFN Sector Analysis

Undoubtedly the face of Islamic finance, every Sukuk offering from first-time issuers indicate a significant breakthrough for both the company and the global Shariah compliant industry. With more entities testing their luck in the Islamic...
 

IFN Reports

GLOBAL: We kick off this week’s review with an exclusive sneak peak at a groundbreaking development in China: IFN has learned that a China state-owned enterprise has approached banks to arrange two Islamic finance transactions,...

TURKEY: Kuveyt Turk Participation Bank has sold Turkey’s largest lira Sukuk to date through an IPO, against the backdrop of a healthy Turkish Sukuk pipeline. The bank raised TRY160 million (US$59.46 million) from the 189-day...

GLOBAL: The ringgit has been displaced as the most preferred Sukuk currency as the Malaysian legal tender plummets to historic 17-year lows amid a plunge in Chinese equities and decline in global oil prices. A comparison of...

Analysts are projecting for Islamic and conventional Kuwaiti commercial banks to experience greater growth in terms of credit expansion and margin this year supported not only by their diversification strategies but more...

The weaker grade Sukuk market is showing no signs of abatement as higher-yield Islamic bond indexes continue to outperform indexes of their better-rated counterparts. VINEETA TAN provides a quick recap on the Sukuk market for the...

Jordan’s Governorate Development Fund (GDF) has agreed to provide Shariah compliant project financing instruments in a move, VINEETA TAN suggests, would boost the Kingdom’s Islamic finance sector as the government seeks to grab a...

Lack of economies of scale, underpenetration and a market highly overconcentrated — these are but a few of the reasons why the global Islamic insurance industry is struggling to expand further despite promising double-digit...

Slightly on the quiet side, last week only saw one sovereign issuance — from Indonesia. Apart from that, Jordan witnessed a new venture this week believed to encourage a sovereign issuance in the country. Additionally, the global...

When Kuwait Finance House announced it was launching a fully-fledged Islamic bank in Germany, it was as if there was a sudden shift of focus to the European country. However, the nation has been for years steadily growing in the...

In the last year, many Shariah compliant investments have transpired across the US real estate market. Islamic financial institutions from Saudi Arabia, Bahrain and the UK alike have made acquisitions in what now seems to be a...

Features

The last few years have been somewhat of a watershed for Islamic finance. We have seen successful debut Sukuk issuances from the UK, Luxembourg, Hong Kong and South Africa. There have also been declarations of intent from a...

A return to debt issuance by the Saudi Arabian government could encourage growth in the country’s corporate Sukuk market. Upcoming regulatory reforms could also make Sukuk more attractive for a corporate sector that has...

Japan has been involved in Islamic finance mainly since its current wave of global growth around 2005, backed by increasing oil prices. Private and public sectors were both the actors of the development. Not just during this...

GCC capital markets have continued to see downward pressure exerted from lower oil prices in 2015. Although oil prices have rebounded slightly since March, OPEC action has curtailed any significant upward movement driving the GCC...

In developments matching all expectations, Islamic finance is taking shape in the Senegalese capital. Already many programs and projects have been experimenting with financial products available to populations in different areas...

Column

Firstly, Eid Mubarak to all of our readers. Ramadan, as always, has been a period of both deep reflection and action, on personal and professional fronts. During the first few days of fasting, I was required to attend a...

IFN Correspondents

The signing of the MoU for the use of the Mini Master Repo Agreement (MRA) facilitated by Bank Indonesia (the central bank) on the 2nd July 2015 marked another important development in the Indonesian Islamic banking industry. MRA...

GLOBAL: The weaker grade Sukuk market is showing no signs of abatement as higher-yield Islamic bond indexes continue to outperform indexes of their better-rated counterparts. Year-to-date, the Dow Jones Sukuk Index outshone...

After 12 years of conflict in terms of nuclear power, finally on Tuesday the 14th July 2015, a deal was finalized after more than two weeks of furious diplomacy in Vienna between Iranian diplomats and major world powers....

For the first time last month the Tadawul, Saudi Arabia’s stock exchange, opened up to foreign investors. The Tadawul is not only the largest stock market in the Middle East with a total market capitalization of over US$550...

“Sometimes your best investments are the ones you don’t make”. Donald John Trump Sr, an American business magnate, investor, television personality, author, and politician, made this thoughtful statement.  “Risk comes...

Shariah Pronouncement

Query:   A corporate entity, which is a customer of an Islamic bank, had deposited an amount in a term deposit account for a period of three years on the basis of Mudarabah. However, upon completion of one year it has...

Special Reports

Several years ago, around 2008, the writer was asked by industry commentators whether the classic Sukuk structures common in the market would finally evolve from ‘asset-based’ structures to ‘asset-backed’ structures that were...

It is always challenging to have innovative products and services. The challenges vary from country to country and from one school of thought to another. If an individual customer needs an alternative credit card from an Islamic...

If you are getting nervous about the proposed Truth in Lending Act (TILA) disclosure statement changes that are on the way, you needn’t be. It is an ongoing process and it would seem that as soon as you get a good handle on the...

Islamic banking products have a natural and genuine relationship with the business of their clients compared to the shallow relationship conventional banking products have with the business of their clients. ISHRAT HUSSAIN...

Commodity Murabahah/Musawwamah (CM), which is guided by the concept of Tawarruq, may be considered as the most common Shariah contract used by Islamic financial institutions (IFIs). The trading platform is an important component...