Latest News - Sunday, 30 August 2015
This Week’s Newsletter
This is a free content. Click title to see the full news. Daily Cover Story - IFN weekly market roundup: 22nd-28th August 2015
GLOBAL: Last week’s vibrant Islamic debt capital markets activity continues on this week as we see exciting deals being announced amid several pioneering Islamic financing endeavors by industry players.  Indonesia’s Robert Pakpahan of the...
Last month, the Women in Islamic & Ethical Finance Forum (WIEFF) was launched, marking the latest in a line of encouraging activity to...
Editor's Note
Islamic finance is an ever-evolving animal, and I hope that like us, many of its practitioners enjoy confounding the...
Wednesday, 26 August 2015
Volume 12 Issue 34
E.g., 08/30/2015
E.g., 08/30/2015

Daily News Briefs

BANGLADESH: Bangladesh’s long-term foreign and local currency issuer default ratings (IDRs) have been affirmed at ‘BB-’ by Fitch with a stable outlook. The country ceiling is assigned a similar rating while its short-term foreign currency IDR stands at ‘B’.  


OMAN: Solid economic growth continues to support Oman (rated ‘A1/Negative’); however, the Sultanate’s high economic and fiscal reliance on the oil and gas sector and the limited scope for fiscal reforms will add pressure to public finances in 2015-16, according to a report by...


OMAN: Meethaq, the Islamic banking window of Bank Muscat, has upgraded to the new iMal core banking system, a Shariah compliant core banking system certified by AAOIFI. According to a statement, Bank Muscat is also using the iMal Islamic core banking system for its subsidiaries...


GLOBAL: A feasibility study has been undertaken by Malaysian experts to establish either Islamic banking or Islamic banking windows in Russia as the Federation is keen to collaborate with Malaysia to facilitate and develop its Halal industry and Islamic banking, according to...


PAKISTAN: Meezan Bank has inaugurated a new branch in Jamia Darul Uloom as part of its branch expansion strategy, according to a press release.


MALAYSIA: Bank Simpanan Nasional (BSN) will be converting its BSN Islamic Deposit products to a Wadiah structure from Mudarabah effective the 1st September 2015.


AUSTRALIA: The National Bank of Australia (NAB) has closed its debut Islamic financing deal worth AUD19.9 million (US$14.21 million) to fund a real estate purchase by Crescent Wealth, according to Reuters. The funding platform designed by NAB uses the Wakalah structure. Crescent...


GHANA: The Republic of Ghana could welcome its first Islamic bank before the end of this year. According to myjoyonline.com quoting the head of banking supervision of Bank of Ghana (BoG) Franklyn Belyne, the regulator is waiting for several final requirements to be met by the...


GLOBAL: Two out of the four Iranian banks in the UK (Bank Melli and Persian International Bank) will resume operations soon, according to the governor of the Central Bank of Iran, Valiollah Seif. Quoting Seif during a recent meeting with UK foreign secretary Philip Hammond in...


BAHRAIN: Capital Intelligence in a statement has affirmed Gulf Finance House (GFH)’s long-term and short-term ratings at ‘BB’ and ‘B’ respectively, with a stable outlook. The ratings are supported by GFH’s satisfactory leverage, and the moderately improved diversification of the...


QFC
QATAR: Qatar Financial Center (QFC) has announced the appointment of Hamed Al-Saadi as its chief financial officer and tax officer where he will be reporting directly to the CEO and assuming a strategic role in the overall management of QFC, according to a press release. Hamed...


IN THIS WEEK’S ISSUE

Case Study

Kuveyt Turk Participation Bank on the 30th June auctioned the country’s largest lira Sukuk to date through an IPO. The bank raised TRY160 million (US$55.52 million) from the 189-day lease certificate. Issued via Kira Sertifikalari Varlik...

IFN Country Analysis

Djibouti is widely known for its strategic importance afforded by its geographical position to the world’s busiest shipping routes. This has opened a slew of economic opportunities for the country. What about for Islamic finance? VINEETA...

Weekly Poll

In light of Malaysia’s recent legal debacle on whether a non-Muslim should be allowed to practice Shariah law, IFN takes the notion a step further asking the industry if they should be allowed to become Shariah scholars. With close-call...

IFN Sector Analysis

Over the last couple of years, the Shariah compliant scene began to see an uptick of transactions originating from the aviation and marine sector. From Sukuk to financing facilities, these logistic companies have started to position...
 

IFN Reports

MALAYSIA: One of the largest Takaful operators in Malaysia has forged an exclusive partnership with RHB Islamic in the backdrop of a growing number of bancaTakaful arrangements as Islamic insurers show no signs of abating their...

PAKISTAN: Pakistan may soon welcome a unified single stock exchange as the Republic’s three bourses have agreed in principle to integrate their operations as the frontier market gears itself to attract more capital, including...

Africa Finance Corporation (AFC), the second-highest investment grade-rated multilateral financial institution in Africa which is tasked to drive private infrastructure investments in the region, has made its debut foray into the...

Slightly on the uptick this week, the sovereign Sukuk market witnessed three issuances made from three different countries: Turkey, Indonesia and Bahrain. Mainly regular issuances for liquidity management purposes, the Sukuk...

With its currency in a rut and capital account adversely affected due to slowing global and domestic economic growth, Indonesia has drafted a budget designed to boost 2016 macroeconomic figures by increasing infrastructure...

Six years since the introduction of Islamic banking in Oman, the latest adopter of Shariah finance in the GCC has managed to quadruple its Islamic banking deposit base and grow its assets to OMR1.8 billion (US$4.66 billion),...

Islamic finance continues to gain momentum in Russia, with interest gathering despite limited action so far at a federal level. LAUREN MCAUGHTRY looks at the latest developments in a country struggling with economic challenges,...

Paramount Studios recently made London-based Shariah compliant Cobalt Underwriting its preferred insurer for its upcoming entertainment resort in Kent. VINEETA TAN writes how this is indicative of the rising demand for Shariah...

Ivory Coast has long been an African investment darling to the international community and its capital, Abidjan, is regarded as one of the most sophisticated economic capitals in West Africa where commercial banks outnumber...

Over the last year, Germany has undoubtedly upped its game positioning itself as a permanent industry player in the Islamic finance space. In the span of only one year, the country managed to enhance its Islamic retail and...

Features

Western markets are effectively closed for most Russian companies because of the European and American sanctions imposed due to the Ukrainian crisis, so the Russian government and Russian companies have been actively exploring...

The crowdfunding industry is continuing to strengthen globally, both in terms of new entrants and the volume of business underwritten. According to Statista, the global peer-to-peer lending market was valued at US$9 billion in...

In a provocative article published recently, the author suggested that we are now shifting into the era of post-capitalism. The author made the argument that capitalism will be reshaped and inexorably alter a new dynamic force...

There are now 16 million Muslims in the EU and France leads European countries by the size of its Muslim community which should represent, according to the Pew Research Center, more than 10% of the French population in 2030....

A discussion paper issued by the Malaysian regulator, Bank Negara Malaysia, on the Capital Adequacy Framework for Financial Holding Companies has added further dimension to the loss-absorbing terms of Basel III-compliant capital...

Column

My warmest greetings to you all. I have just returned from a very refreshing family holiday, with batteries recharged and the passion for Islamic finance re-energized. Later this month, I will be attending the first board of...

IFN Correspondents

Last month’s news that Ibdar Bank, a Bahrain-based Islamic wholesale investment bank, has disposed of its real estate company Sakan Development Company, was met with mixed views. On one hand, the bank successfully exited from its...

In summary, the answer is: Strategically aligned investors. When setting up a company, various tenets are required to provide this future entity with the best possible start. Though not an exact science, these variables, which...

After more than 12 years of transacting Shariah compliant real estate and more than US$2 billion of properties, I have finally achieved my goal…insuring them Islamically. Readers will be perfectly aware that any transaction...

The last few months have seen much focus on the wider geopolitical situation in the GCC by all of the regional governments. Qatar is no exception to this. With the nuclear non-proliferation deal with Iran being finalized, there...

Islamic finance, which is a centuries-old practice and which was revived and brought back into the limelight in the mid-1970s, is far more than an alternate mode. A simple web search on the term ‘Islamic finance’, or any specific...

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

Islamic or Shariah compliant exchange-traded funds (ETFs) have been around for almost a decade globally, yet the size and number of funds issued pale in comparison to the phenomenal growth of ETFs as a whole. To date, there are...

Bangladesh Bank (BB), the regulatory authority of banks in Bangladesh have decided not to issue any more Islamic banking licenses, meaning that there will be no more conversion of conventional banks to Islamic banks and no more...

Narendra Modi, the prime minister of India, in a public rally in New Delhi on the 4th February 2015 observed: “Pradhan Mantri Jan Dhan Yojana is a reflection of how rich India’s poor are at heart. Without any obligation to put...

Despite having a minute Muslim population, Japanese governmental, corporate and financial institutions have taken a number of steps in recent years to increase Japanese participation in Islamic finance. In 2008, Japan’s Financial...

The UK has sought to put itself at the forefront of Islamic finance and made a loud statement of intent in 2014 with the issuance of its GBP200 million (US$312.4 million) Sukuk – the first to be issued by a European government....