Latest News - Monday, 30 May 2016
This Week’s Newsletter
This is a free content. Click title to see the full news. Daily Cover Story - IFN weekly market roundup: 21st-27th May 2016
This week, IFN takes a look at the active sovereign and corporate Sukuk markets; Saudi Arabia’s keenness to co-found IDB’s Islamic infrastructure bank; two Russian banks counting the days to execute their first Islamic finance deals; and people...
As the global economy slows, Australia is no exception — and after 24 years of growth and a 10-year export boom, the country is facing a...
Editor's Note
In an interesting turn of events, Australia has finally changed its tax laws to accommodate Shariah compliant financial...
Wednesday, 25 May 2016
Volume 13 Issue 21
E.g., 06/30/2016
E.g., 06/30/2016

Daily News Briefs

MALAYSIA: Following the full payment of an administrative compound to Bank Negara Malaysia (BNM) by sovereign wealth fund 1Malaysia Development (1MDB), the central bank has wrapped up its investigation into the state investment firm which has been embroiled in controversies over...


GLOBAL: Six credit rating agencies: S&P Global Ratings, Moody’s Investors Service, Dagong, Scope, RAM Ratings and Liberum Ratings have signed the UN-supported Principles for Responsible Investment (PRI)’s Statement on ESG in Credit Ratings and Analysis. The statement – part...


MALAYSIA: Bank Negara Malaysia (BNM) will introduce a fintech framework to support fintech firms by providing regulatory clarity and lower barriers to entry as well as to accelerate time-to-market, announced Governor Muhammad Ibrahim at a recent event. Muhammad expects the...


EGYPT: The IDB and the Egyptian government have signed an agreement to establish an Islamic financial institution in Egypt to finance SMEs, including micro enterprises. The proposed specialized company – slated to become the country’s smallest Shariah compliant financial...


MALAYSIA: The outlook for Malaysia (‘A3/Stable’)’s banking system remains stable as it is driven by the banks’ strong capital, stable funding levels and continued high degree of government support, according to Moody’s. However, the rating agency’s vice-president and senior...


MALAYSIA: A total of 20 securities have been classified as Shariah compliant and included in the revised Shariah compliant securities list of the Securities Commission Malaysia (SC), bringing the number of Islamic securities to 669 or 74% of the total 905 listed securities on...


BAHRAIN: GFH Financial Group intends to list its unit Khaleeji Commercial Bank on the Dubai Financial Market (DFM), subject to obtaining regulatory approvals in Bahrain, according to a statement. However, GFH did not disclose the timeline for the listing of the Islamic bank...


GLOBAL: Kuwait-based Gulf Investment Corporation announced that an extraordinary general meeting (EGM) will be held on the 15th June in Kuala Lumpur for Sukukholders of the Series 5 certificates, under the group’s Wakalah medium-term note program of up to the nominal amount of...


GLOBAL: The IDB has agreed to provide US$3 billion in easy financings and grants to Iraq, according to a report by Asharq Al-Awsat. This comes after the IMF’s announcement to provide financing worth US$5.4 billion to the country this year as it copes with declining oil revenues...


INDONESIA: Fitch in a statement has affirmed the ‘BBB-’ long-term foreign and local currency issuer default ratings (IDR) on Indonesia, together with its senior unsecured foreign and local currency bonds. The ratings on the long-term IDRs carry a stable outlook. The rating...


UAE: Emirates Development Bank (EDB) is planning to launch Islamic finance services before the end of 2016, according to Mubasher.info quoting Rashid Mahboob Misbah, the bank’s acting CEO.   


IN THIS WEEK’S ISSUE

Case Study

Sime Darby recently made its third comeback to the Sukuk market with a successful issuance of RM2.2 billion (US$546.94 million) perpetual Sukuk at a yield of 5.65%. Speaking to John Chong, CEO of Maybank Kim Eng Group and Maybank...

IFN Country Analysis

The Turkish government continues its aggressive efforts to realize its Islamic finance ambitions: in 2015, the prime minister formed the Islamic Finance Coordination Committee and chaired the G20 meeting of which Shariah finance was a core...

Weekly Poll

As global oil prices continue their downward spiral, the increasing strength of the US dollar has created speculation that some GCC countries may not be able to hold on to their dollar currency pegs over the medium to long term. Over the...

IFN Sector Analysis

The sovereign Sukuk space has seen strong and sustained momentum by some of the largest issuers as well as a number of debut issuers over the past year. Fitch’s recent data, for instance, showed that Sukuk issuance in key markets reached...
 

IFN Reports

SRI LANKA: Islamic financial institutions in Sri Lanka are placing more emphasis on hands-on experience rather that Islamic finance qualifications when it comes to hiring staff for an industry whose workforce is dominated by...

The sovereign Sukuk space unfolded a number of new and exciting activities over the past week, with Jordan finally joining the sovereign issuance club. Germany and Nigeria could potentially join the Hashemite Kingdom in the not-...

The Islamic finance sector is heating up in Nigeria, with Lotus Capital making strides in the Halal fixed income market with its latest fund. The Lotus Halal Fixed Income Fund received the final approval from the Securities and...

Institutional and angel investors from Southeast Asia and the Gulf have recently collectively invested SG$500,000 (US$362,440) into a Singaporean Islamic real estate crowdfunding platform, a testament to the growing confidence of...

The industry may be dealing well overall with the continued pressure on oil prices, but the asset management sector is certainly feeling its effects. According to Morningstar, inflows into Shariah compliant funds dropped to US$...

The Islamic business community was abuzz recently when Malaysia’s treasury secretary-general, Irwan Serigar Abdullah, announced that the country is working toward establishing an international Islamic venture capital fund, in...

The Islamic finance industry has for decades been making the perennial call for innovation to propel the industry to greater heights, to stand on par with the conventional boys. Yet, while the innovation gears are turning and...

Jordan has officially made its entry into the sovereign Sukuk market after the Central Bank of Jordan (CBJ) announced that it has successfully auctioned the country’s first Sukuk worth JOD75 million (US$105.68 million). The five-...

A busy week, IFN takes a look at the Sukuk space teeming with a robust pipeline in the sovereign and corporate Sukuk market with a most interesting deal in the making – a US$15 billion transaction from China; the IDB’s efforts in...

IFN can exclusively reveal that a deal has this week been signed between China’s TEB Technology (TEB) and Hong Kong-based SAG Holding (SAG) to develop and expand TEB’s groundbreaking new green technology both in China and...

Features

Oil prices have dropped by more than 70% since mid-2014, putting an end to the commodity’s super cycle that started a decade ago. S&P Global Ratings expects the oil price to remain substantially below its peak level and...

Financial technology (fintech) is the convergence of technology with the financial system that has swept the global financial industry these past years. Islamic banking and finance industry players and regulators in Malaysia did...

Individuals and companies operating in a complex environment are constantly exposed to a myriad of risks. The probability of these risks materializing may be reduced through mitigation measures; however, in most cases it cannot...

To receive education is a fundamental right of every human being and it is the duty of governments around the world to ensure easy access for all its citizens without any discrimination, religion or creed. What to be taught, how...

The hype surrounding the interest rate increase in the US and the strengthening of the US dollar has, to a certain extent, been a bit overdone and both have already been priced into global Sukuk in 2015. AHMAD NAJIB NAZLAN writes...

Women in Islamic Finance

Widely recognized for her pioneering work in Islamic derivatives, Norashikin Mohd Kassim is now leading the award-winning asset management arm of the parent of one of the world’s largest Islamic banks (CIMB Group) and a Fortune...

Column

The IDB held its 41st Annual Meeting on the week of the 15th May in Jakarta, Indonesia. The annual meeting saw lots of headlines, including the IDB’s partnership with the UNDP on impact investing in support of the UN Sustainable...

The first thought that crossed my mind when I heard the phrase ‘Marriage Takaful’ was, did we just launch an insurance policy which will compensate the divorcee(s) from the high cost incurred by a divorce? All hopes were...

IFN Correspondents

MALAYSIA: The dull secondary Sukuk market will soon receive some color as Malaysia’s National Mortgage Corporation (Cagamas) prepares to list and trade its latest successful Sukuk reissuance. Market participants, including new...

  This month witnessed the much-awaited announcement regarding the establishment of a national regulatory authority for Shariah in the UAE which is expected to further promote the overall local Islamic economy. ...

Through its Vision 2030 statement, Saudi Arabia is planning the implementation of an economic reform program like none ever seen before. Prince Mohammed Salman Al Saud has generally taken a leading role in relation to such a...

The Sultanate of Oman’s budget (as compared to trade) deficit for 2016 is expected to be around 17% of GDP and is estimated to remain at the same level for 2017, minus a very significant appreciation in the level of the global...

I have a distinct sense of deja vu writing this article, for it was 21 months ago that I speculated on ‘Scotland the Brave?’ and what impact this could have on Muslim investors’ appetite to acquire real estate north of the border...

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

The question of how best to structure a short-term liquidity instrument for Islamic banks has been an area of much debate, deliberation, and indeed innovation for nearly 20 years. Treasurers of Islamic banks now have both...

In this exclusive op-ed piece, ABDULLA MOHAMMED AL AWAR, CEO of the Dubai Islamic Economy Development Center, shares with us his thoughts on why Islamic finance is such a compelling proposition for China. Interest in China...

The Australian government has finally released, together with its budget papers on the 3rd May 2016, the much-anticipated final report of the Board of Taxation’s discussion paper from 2011 titled ‘Review of the taxation treatment...

Although Riba-free transactions are one of the cornerstones of Islamic finance, many people in and around the industry do not have a proper understanding of what Riba is. Since there is an absence of a clear understanding of Riba...

The Investment Account Platform (IAP) was launched on the 17th February 2016 by the governor of Bank Negara Malaysia, Dr Zeti Akhtar Aziz and it marked a historic moment in the evolution of the global Islamic finance space and...