Latest News - Tuesday, 3 May 2016
This Week’s Newsletter
This is a free content. Click title to see the full news. Daily Cover Story - DIFC and DEC collaborate to develop Islamic finance in accordance with Dubai Ruler’s Islamic economy ambition
UAE: Dubai’s financial free zone and the emirate’s think tank have joined hands to pool and mobilize resources to develop the country’s Islamic finance proposition, aligning themselves with the vision of Prime Minister Sheikh Mohammed Rashid Al...
Avid traveler Azrina Naimuddin always found it difficult to find personal care products that complied with her religious principles when...
Editor's Note
The last several years have seen a rush to the virtual world: online sales transactions are increasing while offline...
Wednesday, 27 April 2016
Volume 13 Issue 17
E.g., 06/04/2016
E.g., 06/04/2016

Daily News Briefs

UK: The London Central Portfolio, a Central London property fund and asset management specialist which also manages Shariah compliant London Central Apartments III, has appointed former FTSE 250 chairman Richard Crowder as a non-executive director of its quoted residential funds...


PAKISTAN: The IFN Pakistan Forum will take place on the 26th October at the State Bank of Pakistan Auditorium. The forum is expected to be the largest gathering of senior industry professionals within Pakistan and other Islamic financial markets globally.


UAE: Sharjah Islamic Bank (SIB) has completed a medium-term US$265 million syndicated Murabahah financing facility, according to a press statement. The size of the three-year facility was increased to US$265 million from the initial target of US$200 million due to strong support...


PAKISTAN: Pakistan’s ‘B3’ issuer rating reflects the strengthening growth and progress on structural reforms against a relatively high government debt burden and political risks, according to Moody’s. In a statement, Moody's said that its assessment of Pakistan's moderate...


QATAR: Mashreq Qatar, which also provides Islamic banking services, has launched biometric security for its mobile banking app, Snapp, allowing customers to access banking services using their fingerprint as password. Aiming to revolutionize Qatar's banking and financial...


GHANA: A provisional Islamic banking license granted to Makkah, a Saudi-based financial institution, has been revoked by the Bank of Ghana (BoG) after the financier failed to meet key requirements for the granting of a full operation license on two occasions, according to News...


MALAYSIA: RAM has reaffirmed SI Capital’s RM167 million (US$42.66 million) Bai Bithaman Ajil Islamic debt securities (BaIDS) at ‘AAA/Stable’, according to a statement. The reaffirmation reflects the strength of agreements which govern concession payments from the Sarawak state...


UAE: GFH Financial Group has signed a preliminary letter of intent with Eshraq Properties for a potential collaboration, in which Eshraq will acquire certain real estate assets of GFH in exchange for shares in Eshraq itself, according to a bourse filing. Terms of the agreement...


KUWAIT: Shariah compliant Al-Madina for Finance and Investment has appointed Yousuf Mousa Alabdallah Alabdelrazak as the company’s new CEO, according to a filing with the Dubai Financial Market.


MALAYSIA: Malaysia’s Sukuk issuance increased 50.5% to RM22.8 billion (US$5.81 billion) in the first two months of 2016, compared with RM15.1 billion (US$3.85 billion) for the same period last year, according to RAM Ratings in a statement. The increase made a significant...


BANGLADESH: Bangladesh’s ‘Ba3’ government bond rating by Moody’s is supported by the country’s stable and strong growth performance and modest debt burden. In a statement, Moody’s, however, noted that low per capita income, persistent fiscal deficits and a factious political...


IN THIS WEEK’S ISSUE

Case Study

Axiata Group in March 2016 sold the third Sukuk under its US$1.5 billion multicurrency Sukuk issuance program. Worth US$500 million, the 10-year paper, by far its longest tenor, received compelling demand from investors across geographies...

IFN Country Analysis

Africa’s largest economy has always been under the global Islamic finance radar and VINEETA TAN observes that developments over the past 12 months point to the Giant of Africa moving steadily to position itself as the region’s foremost...

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

Derivatives and hedging are tools that remain necessities in the financial system as a way to manage risks that might arise from uncertainties and price fluctuations in the market, although it remains a contentious subject in Islamic...
 

IFN Reports

KUWAIT: The national oil refining company of Kuwait has tapped the Islamic debt financing market for the first time in its half a century-long history culminating in the nation’s largest Kuwaiti dinar financing transaction...

GLOBAL: Market activities across the Sukuk, banking, asset management and Takaful segments were vibrant this past week with several potential mergers and acquisitions (M&A)in the pipeline, new regulations in the works, a new...

MALAYSIA: The appointment of deputy governor Muhammad Ibrahim to succeed Dr Zeti Akhtar Aziz as governor of Bank Negara Malaysia has been embraced positively by the financial community, particularly the Shariah finance fraternity...

UK: Islamic finance activity in the UK may look to have quieted down since the furore following the country’s inaugural sovereign Sukuk issuance in June 2014, but all that could be about to change as the authorities prepare to...

Issuance continues unabated even on the back of challenging economic conditions, as exemplified by Malaysia’s latest global Sukuk, while Fitch expects the strong momentum witnessed in the first quarter of 2016 to continue into...

The Dubai Multi Commodities Center (DMCC) seeks to inject confidence and provide reassurance to market players in the area of gold trading by adopting the World Gold Council (WGC)’s global Shariah standard on gold. VINEETA TAN...

Late last month, a fresh development in Turkey’s property investment space got the market raising some eyebrows, when Shariah compliant Mazaya Qatar Real Estate Development signed an MoU with Turkey’s Global Securities to create...

With a simple funding model with a quick turnaround time, crowdfunding appeals to entrepreneurs and investors. This revolutionary platform in recent years has made inroads into the Islamic finance space spawning the growth of...

It was a tough year for Islamic funds in 2015, with both geopolitical and economic events in the two main regions of the GCC and Southeast Asia placing pressure on performance and the global oil price volatility and OPEC...

Home buyers in Pakistan are increasingly turning to Islamic finance to make the largest purchase in their lives, as reflected in the State Bank of Pakistan (SBP)’s latest housing finance data. The SBP stated that disbursement of...

Features

Over the last two decades, Shariah scholars have gone to great lengths to explain why conventional derivatives are impermissible in Islamic finance. There are a handful of very compelling reasons and DR KEN BALDWIN examines them...

Oman’s minister of oil and gas, Dr Mohammed Al Rumhy, was unusually candid, ahead of the scheduled oil producers’ summit in Doha in the second week of April, when he stressed the social and economic impact of the continued very...

How does the choice of a CEO affect a company? Does a CEO’s background be it in investment banking, corporate banking or retail banking affect a bank’s strategy? In HUSSAIN KURESHI’s opinion, the answer is definitely yes. My...

Indonesia has the world’s largest Muslim population and yet it still lags behind in terms of Islamic finance when compared with its neighbor Malaysia and the GCC countries. In this article, FAROUK ABDULLAH ALWYNI reviews the...

Considering the recent lifting of sanctions in respect of Iran, many businesses expect a significant increase of volume of cross-border trade and investment with Iran, including Islamic finance. In this article, ROUSTAM VAKHITOV...

Women in Islamic Finance

After the 2007-08 financial crisis, a Treasury Select Committee in the UK reported that the excessive risk-taking in financial institutions in the early 2000s may have been exacerbated by the under-representation of women in...

Column

On the 18th April, we were honored to take part in the launch of a new economic development initiative — Global DSM. Global DSM has been architected to support the development of the regional and state economy by focusing and...

It was a very rare scene that morning when more than 150 Saudi homeowners complained how one of the Islamic banks raised the monthly mortgage installment without prior notification. The scene took place the month that followed...

IFN Correspondents

The recent downgrade of the Kingdom of Bahrain’s sovereign rating by S&P and Moody’s raised concerns among investors and regulators alike. S&P cut Bahrain by two notches to 'BB/B' with a stable outlook, pushing the rating...

Al Rayan Bank has introduced a new charities’ notice savings account which intends to meet the detailed banking requirements of charities and non-profit organizations throughout the UK. The 100-day notice account enables...

I thought it was time to write about a risk that is considered very difficult to measure: operational risk. Operational risk, as we define it, is the risk arising from failed people, systems and processes.  There was at...

RAM Ratings expects Sukuk issuance in Malaysia to ease to RM100-120 billion (US$25.64-30.77 billion) in 2016 (2015: RM148.3 billion (US$38.02 billion)). Our projection takes into account government expenditure cuts and potential...

The central bank of Indonesia, Bank Indonesia, has issued a new rule pertaining to Islamic hedging through its regulation No 18/2/PBI/2016 ‘Hedging Principles based on Shariah Principles’. This is basically a follow-up to the...

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 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...

The government of Kenya is determined to issue a retail bond to the public via a mobile platform to raise about KES5 billion (US$49.03 million) this year. The bond aims at promoting a saving and investment culture by Kenyans...

Leasing, as an industry, is fairly well developed. Countless hours, across various disciplines, have been invested to perfect its product offerings. So much so that if you were to ask individuals at random about the internal...

INDONESIA: Despite regional volatility, global industry players are optimistic of the Islamic finance growth story in Asia driven by favorable demographic trends, rising affluence and stronger regulatory support for the industry...

The news out of Standard Chartered (SCB) is reflective of the state of economies within the emerging markets. SCB reported its first loss since 1989 and it has to be noted that SCB is not a bank to get caught up in the subprime...