Latest News - Wednesday, 27 July 2016
This Week’s Newsletter
This is a free content. Click title to see the full news. Daily Cover Story - Arab Monetary Fund aligning with global Islamic finance bodies to facilitate integration of Shariah finance in Arab world
GLOBAL: Islamic finance is top on the agenda of the Arab Monetary Fund (AMF) as an instrument to develop the economies of Arab nations and the institution has aligned with the IFSB to meet this objective.  "Providing assistance to the...
  A year has passed since the Iran nuclear deal and the lifting of international sanctions — but where is the flood of inward...
Editor's Note
Iran is open for business, or so the Republic claims but with investors still keeping a distance from the world’s...
Wednesday, 27 July 2016
Volume 13 Issue 30
E.g., 07/27/2016
E.g., 07/27/2016

Daily News Briefs

BANGLADESH: IFN understands from a senior industry source that Standard Bank’s Islamic banking license application has been approved by the central bank of Bangladesh. An official announcement is expected to be made within the next two weeks.  


MALAYSIA: Great Eastern Takaful (GETB) will be launching six new products: three bancaTakaful products and three under agency distribution channels, the Takaful operator confirmed to IFN.  


SAUDI ARABIA: Shariyah Review Bureau (SRB) has granted approval to Al Alamiya for Cooperative Insurance Company for the following functions: separation of accounts (shareholder and policyholder); compliance of shareholder and policyholder investments with Shariah guidelines; and...


OMAN: Meethaq, an Islamic banking arm of Bank Muscat, has inaugurated its 14th branch in Corniche, Muttrah, according to the Times of Oman.


GLOBAL: Amana Bank, an Islamic bank based in Sri Lanka, has forged a partnership with Qatar’s Al Zaman Exchange to launch an instant money remittance service to Sri Lanka, according to The Peninsula.  


UAE: The Clean Energy Business Council (CEBC) has appointed Dr Nasser Saidi and Mhairi Main Garcia as the chair and vice-chair respectively for the next two-year term, according to a press release. The appointment coincides with the Green Sukuk Working Group adding several CEBC...


MALAYSIA: RAM has reaffirmed the ‘AA1/Stable’ rating on Batu Kawan’s Islamic medium-term note program of up to RM500 million (US$122.42 million), according to a statement. The rating agency noted that although the company’s credit metrics had not met expectations and could...


MALAYSIA: Bank Islam Malaysia has inked an agreement with Urus Maju Ehsan, a subsidiary of Perbadanan Wakaf Selangor, to provide RM15.5 million (US$3.8 million) in financing for two Waqf land development projects in Selangor. The two projects, according to a press statement,...


UGANDA: The government of Uganda, through the Microfinance Support Center (MSC) in partnership with the IDB, will soon introduce Islamic microfinancing models in the country as part of the Rural Income and Employment Enhancement Project (RIEEP) and will take effect in the 2016/...


QATAR: Qatar Central Bank has issued a circular allowing insurance and reinsurance and also Takaful and re-Takaful companies working in the country to impose a higher premium on motorists who have caused accidents or violated traffic laws. The new initiative is expected to...


MALAYSIA: Sepangar Bay Power Corporation’s RM575 million (US$141.45 million) nominal value Sukuk Murabahah program has been reaffirmed at ‘AA1/Stable’ by RAM based on the company’s robust cash flow-generation to service debt obligations, supported by the favorable terms of its...


PAKISTAN: The Securities and Exchange Commission of Pakistan (SECP) in a statement has directed all asset management companies (AMCs) to calculate and disclose the total expense ratio (TER) of all mutual funds under their management in a bid to bring about uniformity in the...


MALAYSIA: AMMB Holdings on the 21st July acquired 100% shareholding in AmIslamic Funds Management (AIFM) and AmFunds Management from AmInvestment Group (AIGB) which is wholly owned by AMMB. AMMB in an announcement noted that the consideration for the transfer was based on the...


MALAYSIA: The US$500 million Sukuk facility issued by Axiata SPV2 (a subsidiary of Axiata Group) has been assigned a definitive ‘Baa2’ rating by Moody’s. The paper is drawn down from its existing US$1.5 billion multi-currency Sukuk program.    


KUWAIT: Noor Investments of Kuwait has brought a case to the Court of Appeal to have The Investment Dar (TID) declared bankrupt. The court will hear the review of its committee of experts on the 26th October; meanwhile TID in a statement to investors said it is ready to...


SAUDI ARABIA: Samba Financial Group and Middle East Healthcare Company (MEAHCO) have signed an Islamic credit facility agreement (Murabahah) worth SAR200 million (US$53.29 million) for the latter to finance its working capital, according to a bourse filing. The facility is...


TURKEY: Following the suspension of Bank Asya’s operations on the 18th July by the Turkish Deposit Insurance Fund as the sale of the participation bank failed to attract bids, the Banking Regulation and Supervision Agency has canceled Bank Asya’s banking license, the bank...


TURKEY: Four executive vice-presidents (EVPs) of Turkiye Finans Katilim Bankasi have resigned, the Islamic bank confirmed with IFN. They are: Erol Gorgun, EVP of risk monitoring, collections and legal; Dursun Arslan, EVP of operations; Menduh Kara, EVP of commercial banking; and...


OMAN: Moody’s said in a statement that the 13.5% growth in total credit extended by Oman’s conventional and Islamic banks over the last 12 months that ended in May and that materially exceeded the low 0.4% growth in total deposits (according to the Central Bank of Oman’s May...


UK: Al Rayan Bank has seen a 141% increase in annual expat property financing since 2013, with 15% of new retail property financing from expats generated between January and May 2016, the Islamic bank said in a statement.  


IN THIS WEEK’S ISSUE

Case Study

Mohammed Al Barwani Holding (MB Holding) recently revitalized the Omani corporate Sukuk space, after three years of hiatus, with a US$76 million Sukuk Wakalah facility, becoming the second corporate to issue Sukuk and interestingly, the...

IFN Country Analysis

After years of economic struggle, Palestine is finally showing signs of recovery. VINEETA TAN provides an overview of Palestine’s Islamic banking and finance industry. Economic and political background The Palestinian economy has long...

Sovereign Sukuk

In what would be its sovereign debut issuance, Togo announced that it is launching a 10-year Sukuk offering with the Islamic Corporation for the Development of the Private Sector (ICD) as the lead arranger for the deal. Over in Southeast...

IFN Sector Analysis

Islamic syndicated financing witnessed a slight drop in the first half this year as compared with the same period in 2015, although the market welcomed several debutants. DANIAL IDRAKI recaps recent transactions in this specific area of...
 

IFN Reports

In what would be its sovereign debut issuance, Togo announced that it is launching a 10-year Sukuk offering with the Islamic Corporation for the Development of the Private Sector (ICD) as the lead arranger for the deal. Over in...

Islamic finance is top on the agenda of the Arab Monetary Fund (AMF) as an instrument to develop the economies of Arab nations and the institution has aligned with the IFSB to meet this objective. VINEETA TAN reports. “...

Company Focus: Amana Takaful Life expanding Takaful business in Sri Lanka with IPO offering. In a showcase of the growing importance of Takaful in the Sri Lankan market, Amana Takaful Life (ATLL), a wholly-owned subsidiary of...

Since its stellar performance of 2012, Sukuk volumes have struggled against regional and economic headwinds hampering their trajectory. The oil price plummet of 2014-15 strained the GCC and Southeast Asian markets while ongoing...

The Ministry of Human Resources recently issued a decree that exempts SMEs from bank guarantees beginning October this year, in what is considered a move to boost the growth of the industry in the Emirates. How will the new...

It is the digital era — and banks, including if not especially Islamic banks, stand to lose out should they not adapt and implement effective digitization strategies. In previous IFN coverage on the digital race, we have focused...

The Senate of Pakistan has approved the Securities and Exchange Commission of Pakistan (SECP) (Amendment) Bill 2016 which will facilitate better superintendence and control over the country’s capital and financial services market...

VINEETA TAN reports on the latest regulatory effort by the Indonesian Financial Services Authority to boost its Shariah capital markets. The Indonesian financial services regulator has released a draft regulation on Islamic...

VINEETA TAN explores how IDB’s participation in the new global ‘eTrade For All’ is significant to Muslim communities.  Muslim countries, which generally have relatively smaller participation in the e-commerce market, will...

The sovereign Sukuk space may have been quiet the previous week but activities have picked up this week. DANIAL IDRAKI brings you the usual updates.  Bahrain The monthly issue of the Central Bank of Bahrain (CBB)’s BHD43...

Features

Syndicated finance is a typical financing provided by a consortium of financiers by sharing the risk of the obligor as the amount of the financing is such that it cannot be taken entirely by any single financier. OSMAN ARSLAN...

As a natural outcome of a developing and expanding economy, increasing population and urban transformation projects in Turkey, financing for real estate investments has become an important issue for the market. BURAK GENCOGLU...

Islamic funds globally have experienced robust growth over the past decade with assets under management currently at around US$60 billion. Contributing to this growth has been the development of new products and solutions to...

In terms of business environment, financial sector development and infrastructure, Singapore as a financial hub has been very successful, edging past Hong Kong as the world’s third-best financial center, according to the recent...

Much of the focus in recent years in the Islamic finance space has been on the explosion in the issuance of Sukuk (or so-called Islamic bonds), the use of Islamic finance or tranches in financing large infrastructure projects and...

Women in Islamic Finance

By Laura Elder, a cultural anthropologist and teaches in the Department of Global Studies at Saint Mary’s College in Notre Dame. Her primary research interests are global political economy, Islam and gender. She can be contacted...

Column

By Mohammed Khnifer, an Islamic debt capital markets banker at a supranational banking institution as well as an AAOIFI-certified Shariah advisor and auditor. Europe’s top business schools are sending a message: “MBA holders...

By Kavilash Chawla, a partner at boutique management consulting firm Bâton Global and a visiting scholar at Drake University. This month has been another one for the ages, with global turmoil everywhere we look. The most...

IFN Correspondents

  In accordance with its annual general meeting, Zaman Bank shareholders have consented to the voluntary reorganization of the bank into an Islamic bank. Within a few months of the preparation of a high-level business...

The slow pace of the Islamic banking implementation process in Morocco was sharply criticized by local and foreign experts as well as observers. Indeed, the legal framework was adopted in November 2014 but banks are still waiting...

Maybank Indonesia has issued its ‘Shelf Registration Sukuk Mudarabah I Maybank Indonesia Tranche II’ facility (Sukuk Mudarabah) amounting to IDR700 billion (US$53.34 million). The offer period for this Sukuk Mudarabah was from...

The shock of waking on Friday morning to find that the UK public had voted to leave the EU was compounded by the prospect of flying to Kuala Lumpur on the Sunday. Not that I dislike meeting our Islamic investors in Malaysia,...

Bank Negara Malaysia (BNM) has been diligently rolling out more standards on various Shariah contracts and to date, BNM has issued the finalized Shariah standards for the contracts of Murabahah, Mudarabah, Musharakah, Tawarruq,...

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

As the dust settles after last month’s Brexit vote, the smoke is only getting thicker with no clear visibility on the tough road ahead. However, is it really all doom and gloom? Or, seen through a wider context, is it a bitter...

Focus on corporate banking technology is witnessing a resurgence and none more so than in the Islamic states. Trade finance currently supports 90% of world trade; however, emerging economies have seen the highest volumes of trade...

Given the recent recession and skyrocketing inflation, the conversion of Trust Bank in Suriname to a fully-fledged Islamic bank in line with the demand of its stakeholders that prompted its board members to undertake the...

Following a severe crisis in 2000-01, Turkey has established a new economic framework, prioritizing fiscal discipline, targeting inflation under a newly-independent central bank and restructuring banking system regulations. This...

A factoring agreement is a transaction where a company sells its account receivable, normally on a discounted basis, to a financial institution. The terms factoring and receivable financing are often used simultaneously although...