Latest News - Monday, 27 June 2016
This Week’s Newsletter
This is a free content. Click title to see the full news. Daily Cover Story - DIB’s oversubscribed rights issue a boost to its expansion plans within the UAE
UAE: Reassuring its position as one of the UAE’s leading financial institutions when it comes to Islamic finance, Dubai Islamic Bank (DIB) saw its rights issue amounting to AED3.2 billion (US$870.96 million) being oversubscribed approximately three...
The UK and its European siblings are caught in the midst of a family row that could turn sour this week, if the island nation votes to...
Editor's Note
Leave or Stay? That is a decision that UK voters will have to make come Thursday the 23rd June in the big Brexit...
Wednesday, 22 June 2016
Volume 13 Issue 25
E.g., 06/27/2016
E.g., 06/27/2016

Daily News Briefs

INDONESIA: Pefindo has affirmed the ‘idAAA(sy)’ rating on Adira Dinamika Multi Finance’s IDR500 billion (US$37.05 million) Phase I (Series A and B) Sukuk Mudarabah, according to a statement. 


MALAYSIA: AEON Credit Service’s Islamic commercial paper program of up to RM1 billion (US$244 million) has been reaffirmed at ‘P1’ by RAM, which attributed the rating to the high likelihood of parental support from AEON Financial Service Co. 


UK: Moody’s announced in a statement that it has changed the outlook on the UK’s affirmed ‘Aa1’ long-term issuer and debt ratings to negative from stable, following the country’s vote in favor of exiting the European Union which will herald a prolonged period of uncertainty for...


INDONESIA: The Indonesian government intends to establish an offshore financial center (OFC) in the country allowing residents and non-residents to set up shell companies for offshore investments, according to Finance Minister Bambang Brodjonegoro as reported by the Jakarta...


TURKEY: Murat Uysal, the deputy governor of the Central Bank of Turkey, has confirmed his participation at the upcoming IFN Turkey Forum 2016. The IFN Turkey Forum, returning to the excellent facilities of Borsa Istanbul, is expected to engage over 300 dealmakers from Turkey,...


EGYPT: The Administrative Court in Cairo has rescinded the Central Bank of Egypt (CBE)’s decision to limit the tenure of CEOs of commercial banks to nine years, Amwal Al Ghad reported. The measure was introduced in March by CBE’s governor, Tarek Amer, in a bid to modernize the...


PAKISTAN: Pakistani Islamic banking assets stood at PKR1.63 trillion (US$15.44 billion) in the first quarter of 2016, capturing a market share of 11.4% according to the latest data from the State Bank of Pakistan (SBP). Shariah compliant deposits totaled PKR1.34 trillion (US$12....


OMAN: Muscat Securities Market (MSM) has announced new constituents of the MSM Shariah Index based on first quarter financials of 2016, according to a statement. The new sample, which passed AAOIFI’s rules for compliance with Islamic investment principles, will be effective from...


JORDAN: The Jordan Renewable Energy and Energy Efficiency Fund (JREEEF) has entered into agreements with local banks – Islamic International Arab Bank, Ittihad Bank, Ahli Bank, Jordan Islamic Bank, Cairo Amman Bank and Capital Bank – and the Jordan Loan Guarantee Corporation (...


KENYA: Islamic financial firms have joined hands to set up a team tasked with preparing the launch of a lobby group to push for the development of Islamic finance in the country, reported Kenya’s The Star. To be known as Association for Islamic Finance in Kenya, the proposed...


PAKISTAN: Among a host of changes brought about by the amended Finance Bill 2016 is a 2% reduction of tax rates on income of a listed company that is recognized as being Shariah compliant by the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan and the...


IN THIS WEEK’S ISSUE

Case Study

Issued out of its US$2 billion trust certificate issuance program, Ezdan Holding Group tapped the Islamic capital market for the first time with a successful US$500 million Wakalah Sukuk offering. Lead manager Emirates NBD Capital (ENBD)...

IFN Country Analysis

Iraq may seem the unlikeliest place to invest in considering its tumultuous geopolitical conditions, yet some analysts are seeing pockets of lucrative investment opportunities in this Muslim nation. What about Islamic finance opportunities...

Sovereign Sukuk

The sovereign Sukuk space was relatively tepid this week, if not for a potential US$2.5 billion issuance by Oman in the near term, and the regular monthly issuances in Bahrain and Indonesia which are key markets. DANIAL IDRAKI brings you...

IFN Sector Analysis

A key factor in driving the growth of Islamic finance is undoubtedly the education sector. The internationalization of the industry calls into attention the need for highly skilled professionals, which can only be molded by the right type...
 

IFN Reports

UAE: Muslims and non-Muslims globally may not be as aware of Islamic financial products as they should be, let alone understand their unique value proposition, but data from the UAE suggests that more Emiratis are buying...

The sovereign Sukuk space was relatively tepid this week, if not for a potential US$2.5 billion issuance by Oman in the near term, and the regular monthly issuances in Bahrain and Indonesia which are key markets. DANIAL IDRAKI...

In spite of Saudi Arabia’s strong Shariah reputation and leading position in Islamic finance, VINEETA TAN observes that the Kingdom’s financial community is still seeking ways to build the Shariah robustness of its offerings as a...

While firms and industries across the GCC scramble to diversify away from relying on the oil and gas sector, asset management and investment firm Alkhabeer Capital has already put in motion plans to tap into the growth of one...

Islamic finance is playing a progressively major role in both public and corporate financing, as players realize its potential as a viable source of funding in the current low liquidity environment. But while in the past Islamic...

The South Asian nation almost slipped off the radar of foreign investors after years of political turmoil and instability that gripped the country and stunted its growth, until its recent recovery in the financial markets...

  GCC sovereigns are in aggressive borrowing mode, scrambling to the international (conventional) markets to fill up their depleting coffers after the plunge in oil prices punched a hole into their reserves. But VINEETA...

In what is a sign of tightening liquidity of banks in the UAE and declining growth in the wider Gulf region, two Abu Dhabi-based banks are considering a merger that would create the largest bank in the Middle East, and bolster...

Foreign investors have been pulling out from the Malaysian bond and Sukuk market as global uncertainties and sluggish growth send jitters throughout the financial landscape rocked by the muted expectation of a Fed rate hike, a...

Government-linked First National Bank Modaraba (FNBM) has been dealt with a two-notch rating downgrade as it continues to suffer from deteriorating asset quality which has been weighing heavily on the Islamic financial...

Features

Since the establishment of the first Islamic financial institution in the 1960s, Islamic economics and finance (IEF) has been growing remarkably. For example, during 2006-13, the Islamic financial industry grew at the compound...

Thailand was an early pioneer for Islamic banking and finance among Muslim minorities in the ASEAN region, with an early introduction of Islamic products almost two decades ago. Yet the initial enthusiasm waned and the country...

The global financial crisis and the subsequent period of financial instability, presented a set of challenges to regulators and policymakers. Countries looked to deposit insurers and insurance guarantee schemes to restore market...

In this article, the Islamic Corporation for the Development of the Private Sector (ICD) takes a look at Suriname and Guyana, two countries in South America that are pushing ahead with Islamic finance. Suriname’s foray into...

Financial technology or fintech refers to the use of technology, usually in the form of software applications or digital platforms, to deliver financial services to consumers. An important feature of fintech is its disruptive...

Women in Islamic Finance

Young, soft-spoken and unassuming, one may find it surprising to learn that Dr Aishath Muneeza was the woman who built Maldives’s Islamic capital markets from scratch and is the one responsible for introducing many pioneering...

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. A novel way to pay debt should be seriously considered by...

IFN Correspondents

Crowdfunding around the world is growing at a staggering pace, with double-digit growth in the US and Europe, and even triple-digit growth in Asia (Crowdfunding Insider 12/2015). It is surprising that, despite this enormous...

The Reserve Bank of India (RBI) has initiated steps to regulate the nascent and hitherto unregulated peer-to-peer (P2P) financing businesses in India. The RBI has proposed registering P2P financing platforms as non-banking...

UAE: After a three-year hiatus, state-backed Al Hilal Bank has tapped the Sukuk market again, raising US$225 million from private investors in a move it says made it the first UAE institution to execute a Shariah compliant...

The natural, positive relationship between political stability and economic growth is quite clear in the Middle East and North Africa (MENA) region. The regional political crises of the past few years have led to important...

Funding the ambitious UN Sustainable Development Goals (SDGs) will require a huge amount of effort and money. Much debate has taken place regarding finding the right funding models to finance projects in the list of 17 areas set...

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

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...

Like every person has to go through different stages of life, every industry has to go through its industry life cycle”, according to Avadhut Nigudkar, the founder and chief contributor at FinanceWalk. To that end, the leasing...

The operationalization of Maqasid Shariah (Maqasid) or Shariah objectives has been a trending concern for academicians and researchers. The concept is intuitively appealing as it touches a deep and sincere part in the hearts of...

Islamic finance, being a Shariah compliant financial system, is not only expected to follow the principles and rulings of Shariah, but also expected to uphold the Islamic ethical and moral values by default. With such firm and...