Latest News - Sunday, 24 May 2015
This Week’s Newsletter
Daily Cover Story - IFN weekly market roundup: 16th-22nd May 2015
GLOBAL: Moody’s Investors Service yesterday released a report noting that Malaysian Sukuk issuances are expected to fall short this year against 2014’s US$20 billion figure as the market continues to wrestle an environment of softer commodity prices and volatile foreign exchange. While the...
In an industry rapidly moving towards the mainstream and with a burgeoning capital market attracting even non-Muslim sovereigns to the...
Editor's Note
Islamic finance is not only about making a profit but about doing so in an ethical manner. Often the sectors that are...
Monday, 25 May 2015
Volume 12 Issue 21
E.g., 06/24/2015
E.g., 06/24/2015

Daily News Briefs

MALAYSIA: MARC has affirmed in a press release its rating of ‘AAAIS’ on Cagamas MBS’s RM2.11 billion (US$585.29 million) asset-backed Sukuk Musharakah issuance (CMBS 2007-1-i) with a stable outlook. The rating action affects the outstanding Sukuk of RM1.25 billion (US$346.74...


UAE: The International Islamic Financial Market (IIFM) during a seminar in Dubai called upon the industry to support the organization’s efforts in developing standardized financial contracts and product templates in the area of Islamic capital and money markets, corporate...


MALAYSIA: Malaysian Sukuk volumes in 2015 are expected to be at par or lower than the US$20 billion issued last year, said Moody’s which noted in a report that refinancing will drive the bulk of issuance this year. The rating agency also said that corporate Sukuk issuance will...


UAE: According to a bourse filing, Shariah compliant real estate financier Amlak Finance on the 20th May made key appointments including: Ali Ibrahim Mohamed as the chairman of its board of directors, Essamuddin Hussain as the vice-chairman and Arif Abdulla Alharmi as the...


UAE: Amlak Finance has endorsed the 2nd June as the date for the company’s shares to resume trading on the Dubai Financial Market, subsequent to receiving regulatory approval, according to a bourse statement.  


MALAYSIA: MARC has according to a press release placed Pinnacle Tower’s RM50 million (US$13.87 million) Islamic commercial papers and RM400 million (US$110.96 million) Islamic medium-term notes of ‘MARC-1IS’ and ‘AAAIS’ ratings under review to evaluate the impact of a proposed...


PAKISTAN: Askari Bank Islamic Banking Services has entered into a bancaTakaful arrangement with Pak-Qatar Family Takaful and FWU for the promotion of Takaful to its customers, according to the Pakistan Observer.


INDONESIA: S&P has revised its outlook on the long-term sovereign credit ratings of Indonesia to positive from stable. According to a press release, the ratings agency also affirmed its ‘BB+’ long-term and ‘B’ short-term sovereign credit ratings and ‘axBBB+/axA-2’ ASEAN...


OMAN: Al Omaniya Financial Services and National Bank of Oman (NBO) have confirmed their interest in bidding for United Finance Company (UFC), according to separate bourse filings. Bank Nizwa previously submitted a merger proposal with UFC which was agreed in principle; however...


PAKISTAN: MCB Arif Habib Savings and Investments has appointed a Shariah Supervisory Board under the chairmanship of former justice Mufti Muhammad Taqi Usmani for their existing as well as future Shariah compliant mutual funds, voluntary pension schemes , administrative plans...


CAYMAN ISLANDS: Elian Corporate Services and International Finance has named Lynden John as the associate director for corporate services and international finance in the Cayman Islands, according to a press release.  


IN THIS WEEK’S ISSUE

Case Study

Incepted in May 2013, the Al Hilal MENA Fund (AHMF) posted a return of 12% year-to-date as at the 30th April 2015. Boasting commendable performance, the fund is said to be the highest-performing open-ended mutual fund in Oman. Speaking to...

IFN Country Analysis

Despite it being ferociously secular, Turkey has taken great strides in the realm of Islamic finance, capturing the world’s attention as the emerging Islamic financial market to watch. VINEETA TAN tracks the development of the Turkish...

Weekly Poll

As Sukuk gain popularity among sovereigns and corporates across the world, IFN asks the industry which exchanges are most preferable to issuers to list their offering. The few main Sukuk listing centers are Bursa Malaysia, Irish Stock...

IFN Sector Analysis

It has always been a big deal when governments raise debt, particularly when it is issued in a Shariah compliant manner. The transaction not only has political implications, it also creates access to a niche market as well as provides a...
 

IFN Reports

The State Bank of Pakistan (SBP) recently announced tighter regulations to monitor derivatives transactions. The SBP announced the launch of its Derivative Transaction Reporting System (DTRS), which would capture all derivatives...

With several Sukuk roadshows taking place across the world, the sovereign markets are slightly quiet approaching the end of the first half of 2015. Keeping on top of things, Indonesia successfully raised US$2 billion from its US...

This week, VINEETA TAN speaks to the director of Edale Group to trace the development of the world’s first Shariah compliant multi-asset UCITS fund. Five years ago, the Islamic asset management segment witnessed a landmark...

On the back of a promising growth story, Shariah compliant investors have begun to look to Asia for long-term investments. Deemed to be one of the most opportunistic regions for Islamic finance activities, IFN asks the industry...

Islamic finance is gaining mainstream acceptance and its phenomenal rise in the international arena is significantly attributed to its unique proposition of risk-sharing. Yet it seems that reality paints a different picture from...

The Republic of Tajikistan will soon welcome its first fully-fledged Islamic bank, a development which VINEETA TAN writes, could see other domestic players follow suit and usher in new opportunities for the country’s fledgling...

The potential opening of the world’s largest Islamic financial market has sparked the excitement of the international Shariah financial community, with observers signalling it as a likely game-changer for the industry. However,...

The education sector is slowly turning heads as it positions itself as one of the main asset classes in the global investment landscape. Seeing this as a Shariah compliant avenue of opportunity, Islamic financial institutions...

Creating quite a splash in the sovereign Sukuk arena, Hong Kong will once again tap the international Sukuk market with a US dollar offering. In the last week, the market also saw Bahrain and Indonesia conducting their regular...

Looking to capitalize on Saudi Arabia’s growth, Alkhair Capital has rolled out a Shariah compliant initial public offerings (IPOs) fund targeting public joint stock companies in the primary markets of Saudi Arabia, the wider...

Features

Sukuk are certificates of equal value representing undivided shares in the ownership of tangible assets, usufruct and services or the assets of particular projects or a special investment activity. In order to generate returns...

China is already an economic powerhouse and the world’s second-largest economy, full of highly trained mathematicians, business people, finance experts, and millionaires. Anyone who gets off of an airplane in Shanghai will...

It may not be a good idea to look at an old article written sometime ago on the same topic as one may realize that a lot of the predictions made then did not materialize. However, in the case of the earlier article on a similar...

The Sukuk market has the potential to record incredible growth. To make it happen, however, there is a need to first concentrate on sovereign Sukuk. ISHRAT HUSSAIN writes. It is surprising that the Sukuk market had seen the...

Today, Malaysia is a brand name in the international Islamic financial market. Malaysia’s track record in developing Islamic finance has become an inspiration to many, particularly emerging economies. One aspect that is...

IFN Correspondents

The issue of liquidity in Islamic finance has for some time been the weakest link and challenge to industry leaders including both regulators and practitioners. It is often discussed in public forums and workshops but with few...

An Islamic financial institution (IFI) may offer Ijarah products to its customers who seek to obtain education loans without Riba. Ijarah products replace the conventional personal loan financing. Personal loans are fairly small...

In April, the Islamic syndication market turnover decreased slightly after an active ending of the first quarter. This month the market fixed three public transactions totaling US$1.44 billion exceeding the year-on-year April...

Banks in Kenya are opening Islamic banking windows to capture their market share in the Islamic finance sector. In April, Kenya Commercial Bank (KCB) launched KCB Sahl Banking, its Islamic banking unit in Kenya. The KCB plans to...

China’s ‘One belt one road’ initiative, which refers to the 21st Century Maritime Silk Road, was viewed with keen interest by experts at the Asian Summit, hosted in Malaysia in April 2015. The initiative seems to be a catalyst...

Shariah Pronouncement

Query:   A customer of an Islamic bank is a company engaged in import and supply of food and grocery items to the big outlets/supermarkets all over the country.  The standard Murabahah financing structure to...

Special Reports

Investment in real estate has witnessed a growing appetite in the financial markets, driven by the growing demand for real estate development globally, the competitive returns and tax benefits. Additionally, major pension and...

Islamic finance has shown resilient growth despite the recent global financial crisis and geopolitical instability. In this article, DR MARJAN MUHAMMAD delves into Islamic finance from the environmental, social and governance (...

The Dubai International Financial Center (DIFC) is perhaps one of the best-known Free Zones in the Gulf —but a multitude of other locations have sprung up in recent years that support the expanding economic and financial power of...

In order to suit the Shariah contracts and concepts in the current Islamic finance environment, these contracts must be backed by proper legal documentation. One such documentation which is widely used by Islamic financial...

Islamic trading accounts are a specific category of investment trading accounts that follow Shariah (Islamic law) to meet the needs of Muslim investors. Many banks and brokerages in the Middle East offer Islamic stock trading...