Latest News - Saturday, 4 July 2015
This Week’s Newsletter
This is a free content. Click title to see the full news. Daily Cover Story - IFN weekly market roundup: 27th June-3rd July 2015
GLOBAL: Several exciting deals and developments transpired over the week across multiple sectors including Sukuk and financing, banking as well as regulations and governance, bringing sweet promises for the industry. Let’s begin in the regulatory...
With three years of profitability under its belt and a position as one of the foremost fully-fledged Islamic banks in the European market,...
Editor's Note
Isaac Newton might have made the phrase famous, but the original source of the above title is attributed to 12th...
Wednesday, 01 July 2015
Volume 12 Issue 26
E.g., 07/04/2015
E.g., 07/04/2015

Daily News Briefs

MALAYSIA: Baitulmal, a department under the Federal Territories Islamic Religious Council, has launched the Takaful Asnaf Plan which covers benefits of RM5,000 (US$1,326.07) for accidents and death caused by accidents, and RM2,000 (US$530.43) for death, according to the New...


MALAYSIA: RAM in a statement has announced that it has published methodologies for rating systemically important banks and government-linked financial institutions. In the new criteria, RAM will evaluate conditions to determine the government’s propensity to provide support for...


EGYPT: The Egyptian Takaful Insurance Company (Non-life) targets to achieve premiums worth US$1.3 million in the fiscal year 2015-16 and expects to rake in EGP350 million (US$45.48 million) at the end of June 2015, according to Amwal Al Ghad quoting the managing director of the...


MALAYSIA: The recent issuance of Maxis’s RM840 million (US$223.63 million) Islamic paper pursuant to its RM5 billion (US$1.33 billion) unrated Sukuk Murabahah program has not affected BGSM Management’s credit rating, according to RAM in a statement. RAM’s analysis of BGSM...


SAUDI ARABIA: Arabian Company for Water and Power Development (ACWA) has secured US$1.7 billion in Shariah compliant financing from 10 banks for a new US$2 billion industrial gases project in Saudi Arabia, the largest of its type in the world, according to a statement by deal...


MALAYSIA: According to UOB Kay Hian Research’s report published on the official blog in i3investor.com, IOI Corporation could regain its Shariah compliant status by November 2015 if the company is able to restructure at least 78% of its US dollar-denominated term loan into...


INDONESIA: Indonesian Islamic banks have signed an MoU on a mini master Shariah compliant repurchase agreement, according to the Jakarta Post. The standard will serve as an alternative to the interest-based structure that would ensure a standardized bank-to-bank transaction and...


MALAYSIA: The ‘AAA(s)/Stable’ rating on Aquasar Capital’s RM1.5 billion (US$399.34 million) Sukuk Murabahah (2014/2029) has been reaffirmed by RAM, predicated upon the state of Sarawak’s fiscal strength and abundant resources. Aquasar Capital is an SPV indirectly owned by...


GLOBAL: Moody’s in a statement has assigned counterparty risk assessments (CR assessments) to 16 banks in the UAE. It has assigned CR assessments of ‘Aa2(cr)/Prime-1(cr)’ to National Bank of Abu Dhabi; ‘Aa3(cr)/Prime-1(cr)’ to Abu Dhabi Commercial Bank and Union National Bank; ‘...


UK: Islamic Finance Advisory & Assurance Services (IFAAS) has launched its corporate social responsibility (CSR) program dedicated to improving the environment through Islamic finance, the firm informed IFN. The program, known as ‘Oxygen’ will be in support of the UK’s...


MALAYSIA: Public Mutual has declared distributions of over RM178 million (US$47.39 million) for 13 funds including for PB Islamic Asia Equity Fund at 1 Malaysian sen (sen) (0.27 US cents) per unit; Public Islamic Savings Fund at 0.5 sen (0.13 US cents) per unit; PB Islamic Bond...


IN THIS WEEK’S ISSUE

Case Study

The Indonesian government on the 28th May closed its US$2 billion US dollar Sukuk at 4.325%, cutting through Indonesia’s Sukuk curve. The 144A/Reg S 10-year Islamic bond issuance drew orders of more than US$6.8 billion from a diverse group...

IFN Country Analysis

Torn by a protracted period of ongoing armed conflicts, Syria has greatly suffered at every level: economic, social, political. What about its Islamic finance and banking industry? VINEETA TAN finds out. Economic overview Largely...

Weekly Poll

There are only a handful of countries in the industry that religiously conducts regular Sukuk issuances to manage liquidity in their domestic Islamic banking landscape. Among others, these sovereigns include Malaysia, Indonesia, Bahrain...

IFN Sector Analysis

Equity capital markets in the Shariah compliant space are progressing steadily despite the pessimistic views many are taking towards the volatility of the global equity market as a whole. Over the past six months, the Islamic equity...
 

IFN Reports

Pakistan’s largest Islamic bank is set to gain an even larger market share as the bank continues its inorganic expansion strategy with the latest acquisition expected to be completed in the next few months. VINEETA TAN explores...

In the last week, two major developments have emerged in the sovereign Sukuk space. Turkey revealed more details on its Sukuk plans, while the Malaysian government revived its regular government investment issues with a Murabahah...

Kazakhstan may be making good progress on the Islamic capital markets and corporate banking side; however, the demand of the retail market has been largely left unmet. VINEETA TAN casts an eye over the latest developments in the...

Saudi Arabia’s flagship airline carrier, Saudia, will be expanding its fleet by Shariah compliant financial means, through its largest aircraft leasing deal yet as the Kingdom anchors its footing as the world’s largest Islamic...

Despite a sharp rise in debt-to-equity ratio and comparatively weaker credit quality of treasury investments, the IDB has managed to secure top ratings yet again. VINEETA TAN writes. As an institution with one of the strongest...

Indonesia has once again declared its ambition to become a global center for Islamic finance, with president Joko Widodo taking a firm stand at the launch of the “I love Shariah Finance” program by the Financial Services...

The cabinet of Uganda has approved the Financial Institutions (Amendment) Bill 2015, paving the way for Islamic banking and finance in the country. Potentially becoming a new player in the Islamic banking and finance landscape,...

What’s been going on in the world this week? LAUREN MCAUGHTRY brings you an update of the most significant economic, regional and global events, issues and trends that have the potential to affect the Islamic finance industry...

The IFSB is evaluating current Islamic microinsurance frameworks across different markets as it seeks to bolster the sector through an enhanced revision to such regulatory infrastructure. VINEETA TAN reports. Despite being...

One of the main highlights of this week was the Jordanian government’s commitment to its inaugural Sukuk having set a time frame for the issuance. Other than that, the sovereign Sukuk space also saw regular issuances from Bahrain...

Features

In this article, MAJID PIREH explores the equity capital market in Iran and looks at its current situation. The Iranian capital market for trading equities includes two exchanges as follows: Tehran Stock Exchange (TSE),...

Singapore has yet to accomplish its quest to become a global Islamic finance hub. It is undoubtedly one of the top five global financial centers, and has declared openly its objective of emulating this success in Islamic finance...

Earlier this month Arcapita, a wholly-owned investment management firm of Bahrain-based Arcapita Bank, announced the sale of its US real estate portfolio of senior care communities. The sale comes on the heels of several large...

In the author’s previous article about mobile finance and its applicability to Muslim markets, it was pointed out that over a billion people (the majority of whom are Muslims) do not have bank accounts and are invisible in the...

Islamic finance has been growing rapidly over the past decade as it broadens its investor base across the world. In terms of Islamic finance, Korea has been a latecomer in East Asia. But following the stated ambitions of adjacent...

IFN Correspondents

The government of Indonesia through the Ministry of Finance (MoF) has held two Sukuk auctions in June 2015. The first one was held on the 3rd June and the second one was held on the 16th June. In the first auction, the MoF...

Sukuk are effective financing instruments. Economy experts revealed the market needs new tools to employ savings in a relatively safe, low risk and new source of funding and to provide debt tools to absorb the liquidity surplus...

This month Oman joins Muslims all around the world in their celebration of the holy month of Ramadan which teaches social equality and care for the needy and neighbors for the purpose of being rewarded by the Almighty Allah SWT....

Bank Islam Brunei Darussalam (BIBD), the flagship of Islamic banking in Brunei, has announced its international banking aspiration with the opening of its representative office in Singapore in May 2015. According to BIBD’s...

The first Shariah compliant REIT fund has been successfully launched in Pakistan by Arif Habib Group, a very famous and strong group in Pakistan. The REIT fund is called the Dolmen City REIT Fund (DCR fund). Dolmen Group and Arif...

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

Like many other Muslim countries, Palestine is also interested in the establishment of new Islamic banks and developing the existing ones. Given the fact that Islamic banking in Palestine is still in its infancy, it has somehow...

In Korea, it has been a very frustrating and painful experience for a market participant with a keen interest having to wait for any significant developments to introduce Islamic finance (in particular, Sukuk) transactions...

Islamic finance is one of the fastest-growing industries. The industry has been growing rapidly from its appearance in the late 1960s and it has changed from being only a rural banking system at the beginning into a complete...

The critics of Islamic finance have focused on the economic effect of Shariah compliant financial transactions and not the legal effect of the transactions. This may be due to the misleading name of ‘Islamic finance’, after all,...

Ever since the 1970s, microfinance has become one of the schemes for poverty eradication and economic redevelopment strategies around the world. The main objective of this microfinance scheme is to eradicate poverty through...