Wednsday 5th April 2017: 18:00 – 20:30. Discussion starts promptly at 18.30
PwC, 1 Embankment Place, London WC2N 6RH, United Kingdom.
The Committee of IoD City of London in partnership with The British Malaysian Society invites IoD members
and guests to a discussion on ‘Islamic Finance: what it means & the opportunities for the UK post- Brexit.
The Islamic Finance Industry is predicted to reach $2.7 trillion in 2017. Islamic Banking contributes
80% to a total of $2.3 trillion. Other components of Islamic Finance include Sukuk Bonds (14%), Asset
Management (3%), Insurance (2%) and Micro finance (1%). Source for all figures – Centre of Islamic
Banking and Economics.
Our speakers are:
• Dato’ Faiz Azmi – Chairman, PwC Malaysia and Global lead
• on Islamic Finance for PwC
• Andrew Gosnay, Head of Banking and Finance,
Laytons Solicitors LLP
• Iqbal Asaria CBE , Islamic Finance expert and
Special Advisor to the Muslim Council of Britain
on business and economics affairs
After the panel presentations there will be opportunities for Q & A and discussion, followed by a drinks reception.
The evening is kindly hosted by PwC London. Dress code is business wear.
Please consider participating in the fundraising campaign for the victims of the #londonattack: https://www.launchgood.com/project/muslims_united_for_london#/
And also share and distribute further the letter to baghdadi http://www.lettertobaghdadi.com/ - the fatwa concerning the movement calling itself "ISIS".
"The attack on Westminster
At around 2:40 pm on the 22nd of March, an attacker drove a car into pedestrians on Westminster Bridge and then stabbed a police officer within the grounds of the Houses of Parliament. At least 4 people have been killed, including officer PC Keith Palmer, and about 40 were wounded (BBC News). The alleged attacker, apparently a British citizen, has been shot and killed by police. A full investigation has been launched.
Indonesia's finance minister Sri Mulyani Indrawati announced the government plans to issue a global sukuk this week. Indrawati did not give further details on the planned issuance. An official has previously said the government will issue global sukuk in the first half of 2017. According to Thomson Reuters, Indonesia has given initial yield guidance of 3.75% for a five-year tranche of the U.S.-dollar sukuk and 4.5% for 10-year tranche.
Casablanca Finance City welcomes international businesses that have been flocking to Morocco to take advantage of its cheap labour, skilled work force and proximity to sub-Saharan Africa. Amid the uprisings that characterised the Arab Spring, Morocco remained relatively stable. Political and social stability continued after 2010, while the neighbour countries struggled. Adding to Morocco’s allure is the introduction of formal Islamic financial products, officially labelled participatory finance in the country. In 2017 authorities issued five participatory banking licences to Moroccan banks and three to international banks. As Morocco continues to roll out participatory financial products and services slowly and cautiously, the sector will remain a niche.
Shareholders of Kuwait Finance House (KFH) have approved issue of sukuk and other sharia-compliant financial instruments.
Asian Finance Bank (AFB) has appointed Khalid Mahmood Bhaimia as its new chief executive officer effective from March 21, 2017. Bhaimia has over 20 years of experience in the global Islamic banking industry. He previously served as the CEO of Unicorn International Islamic Bank and RHB Islamic Bank as well as Hong Leong Islamic Bank’s managing director. AFP is a full-fledged Islamic bank and is backed by a consortium of shareholders comprising Middle Eastern financial institutions.
Nigerian CEOs have hinged the achievement of Sustainable Development Goals (SDGs) on partnership by businesses. This was stated by CEO of the Sahara Group, Tonye Cole, who delivered a keynote address at the CEO roundtable organised by First Bank of Nigeria in Lagos. Adesola Adeduntan, managing director of FirstBank, said the bank had put in place an environmental, social and governance management system to drive responsible lending and its commitment to financial inclusion. The bank CEO noted that engagement through programmes included over 16 executive education programmes, organised 16 workshops and three international conferences. The bank also empowered over 3,000 Small and medium Enterprises (SMEs). He called on business leaders to consider such partnership for the enhancement of sustainable development.
The recently established International Islamic Business Association (IAIB) has announced plans to develop halal businesses and open offices throughout the region. However, changes in Russian legislation are needed to attract investment from Muslim countries. The IAIB was launched in the assembly hall of the Golden Ring hotel in Moscow on 16 February. One of the founders of IAIB, Samir Huseynov, said that lobbying to change Russian legislation and to create favorable conditions for Islamic banks is one of the main goals of IAIB. In contrast, former Russian Vice President Alexander Rutskoy, who took part in the launch event, said that he does not believe laws need to be changed to enable the operation of Islamic banks in Russia.
The Central Bank of Jordan (CBJ) the second sukuk issuance on behalf of the National Electric Power Company (NEPCO) at a total value of JD75 million, 4.1% returns and a five-year maturity period. The bank reported that demand on the sukuk was 2.73 times the value of the issue, having received orders for JD205 million-worth bonds. The CBJ said the high turnout underlines the increasing demand on the financing tools compatible with the Islamic Law, which have been lacking in the local market during past decades. The bank said the success of this issuance was a result of the continuous coordination of the Finance Ministry, the CBJ, NEPCO, the Jordan Securities Commission and the Central Sharia Oversight Commission.
The International Monetary Fund (IMF) has been a proactive supporter of Islamic banking and has declared it a priority for its operations in countries with Islamic banking. In a recent report titled "Ensuring Financial Stability in Countries with Islamic Banking", IMF economists have created a plan of action that would have game-changing implications for the industry. The report acknowledges the progress achieved in developing prudential standards, but concludes that the current framework governing the global industry contains many gaps. Particular attention needs to be paid to developing resolution, financial safety nets, such as deposit protection insurance and a lender of last resort, and liquidity management frameworks. According to IMF, the emergence of complex hybrid Islamic financial institutions and products is a regulatory challenge.
Malaysia’s proximity in the ASEAN region and its mix of urban, suburban and rural population makes it a suitable environment for testing and launching FinTech solutions for the global Islamic Finance market. Datuk Yasmin Mohamood, CEO of Malaysia Digital Economy Corp (MDEC), has opened the country’s doors for FinTech startups and companies. Yasmin was speaking at the Finnovasia 2017 Conference in Kuala Lampur and claimed Malaysia as a viable test-bed for FinTech companies. He added that an organized FinTech ecosystem will be developed with the support of Bank Negara Malaysia and the country’s Securities Commission. In August last year, Bitspark partnered Malaysia’s Vitaxel to bring remittance solutions over the bitcoin blockchain. Later in December, Malaysian non-profit Blockchain Embassy Asia established a steering committee toward educating organizations about blockchain technology.
Mahmood Hashim Al Kooheji, the head of Bahrain’s sovereign wealth fund, Mumtalakat, is intent on brokering safe, considered deals that yield long-term growth. The wealth fund is taking an increased interest in the comparatively stable sectors of healthcare, education and industry. As evidence of this strategy, Mumtalakat last year took an undisclosed equity stake in Italian healthcare firm KOS Group. In October 2015, Mumtalakat took a majority stake in UAE-based GEMS Education as part of an investment group that included US private equity firm Blackstone. Al Kooheji expects another deal to be reached next year to launch GEMS schools in Bahrain. He also points out that Mumtalakat announced six new deals in 2016, a significant number for a small fund. According to Al Kooheji, Mumtalakat is now truly diversifed in the GCC, US, UK and Europe and this will continue in the future.
The insurance sector across the GCC is expected to report growth in gross premiums on continued growth in infrastructure investment and favourable regulatory changes. S&P Global Ratings analyst Emir Mujkic said gross premiums will increase in 2017 by around 30% in Kuwait, and by up to 10% in the other three markets. GDP growth will range between 1.5% for Kuwait and about 3.5% for Qatar. The Saudi Arabian Monetary Authority (SAMA) is expected to support the efforts of the traffic police to ensure drivers of illegally uninsured vehicles to buy motor coverage. There are currently 2.5 million Saudi nationals working in the private sector that are not covered by their employers’ group medical schemes.During 2017, the authorities will seek to prompt private employers to provide medical cover for all their staff.
#Qatar’s QInvest has successfully launched its QInvest SQN Income Fund. It aims to pay out a net yield of 7% per annum on a monthly basis and has a targeted IRR of between 8-9%, with a tenure of 5 years. The Fund invests in the leasing and financing of business-essential, long-life, revenue producing equipment across developed markets. Industries include health care, manufacturing and agriculture. QInvest plans to launch another fund in the same series later this year. QInvest CEO Tamim Hamad Al Kawari said the new fund provides investors with concentrated portfolios with means of diversification and risk mitigation. It provides attractive returns and a regular income distribution, all within a relatively conservative investment profile.
Land prices in Makkah are higher than in downtown Tokyo or Paris, this ensures that five-star luxury hotel supply growth is the norm. Makkah is also at a macro inflection point since 25,000 three-/four-star rooms were demolished or reclassified by the Saudi authorities. The Saudi government intends to triple Umrah visas to 15 million by 2020 as per the kingdom's Vision 2030 policy. Makkah hotel investing is also attractive because the Makkah's religious tourism market is dominated by tour operators who pre-book rooms en masse and place a premium on new hotels. Makkah is unquestionably the world's most resilient, low-risk, price/demand inelastic, supply constrained, foreign capital inaccessible, secular growth hotel market.
The Islamic Corporation for the Development of the Private Sector (ICD) and TUV SUD signed a memorandum of understanding (MoU) to foster their joint operations in the countries of Central Asia. ICD's CEO Khaled Al-Aboodi and the managing director of TUV SUD Central Asia, Anar Ahmadov, signed the MoU on behalf of the two corporations in Astana, Kazakhstan. The aim of the MoU is to facilitate cooperation in promoting private sector participation and inform about business opportunities in countries of Central Asia. This partnership will enable the two institutions to work closely on market studies related to the transit and logistic sector in the common member countries.
Dubai Financial Market (DFM) said it has officially published the final version of its Standard on Hedging against Investment and Finance Risks. This standard is the newest addition to DFM’s Sharia-compliant standards, which include Standard on Stocks and Standard on Sukuk issued in 2007 and 2014. The key amendments and add-ons to the draft of the standard are adding two types of risks, property risk and reputational risk. The amendment also emphasises the admissibility of the penalty clause only in Istisna, supply contracts and labour-lease contracts, excluding the contracts that result in a monetary debt owed by the debtor. It also emphasises the admissibility of the third-party guarantee in contracts of partnerships, Mudaraba and agency in investment, provided no link is made between this guarantee and the contract of partnership or Mudaraba.
The increase in emerging market debt to more than $900 billion in outstandings according to the International Monetary Fund (IMF) heightens the importance of sovereign debt restructuring. This concern affects not only holders of sovereign debt but also investors in corporate, financial, and structured debt. Too Little, Too Late is a collection of 15 papers on current sovereign debt–restructuring challenges and alternative approaches to resolving them. For investment analysts, the book is a valuable source of systematic analysis, insights, and data on a complex problem. The authors maintain that the only durable solution will be a multinational framework that brings lenders and borrowers together by focusing on mutually beneficial incentives.
UEM Edgenta will issue Islamic commercial papers (ICP programme) and Islamic medium-term notes (IMTN) with a combined aggregate up to RM1bil in nominal value and a sub-limit of RM300mil.
UEM Edgenta said the proceeds raised from the sukuk programmes would be utilised for its syariah-compliant general corporate purposes. The ICP programme has been assigned a preliminary rating of MARC-1/S and the IMTN programme has been assigned a preliminary rating of AA-IS by Malaysian Rating Corp. The company added that it had lodged the required information and relevant documents relating to the proposed sukuk programmes to the Securities Commission.
EdAid has launched the first ever Sharia-compliant crowdfunding platform to finance Muslim students interest-free. QardHasan will help students raise up to £30,000 within 40 days, channelling funds from charitable trusts and potential employers. The UK-based impact investment firm looks to contribute to each crowdfunding campaign by doubling every £500 raised by a borrower through the platform. The firm's founder and chief executive Tom Woolf said the new platform aims to provide affordable and fair funding options to Muslims. Woolf said the project falls somewhere in between LinkedIn and Kickstarter, as it helps students build up a broader network for their academic and professional career.
On March 15 Abu Dhabi Islamic Bank appointed Khamis Buharoun as acting CEO. The appointment of acting CEO Khamis Buharoun is in context of CEO Tirad Marouf Al Mahmoud's medical leave.
Islamic finance is increasingly making inroads into the US in a variety of forms, but widely out of the radar of the broader public. In the recent past, there has been a rise in the number of Islamic financial service providers. There are now about three dozen official Islamic finance providers in the US. Among the top institutions offering Islamic financial services in the country in terms of asset size are Lariba American Finance House and the associated Bank of Whittier in Los Angeles, as well as University Islamic Financial in Michigan. In terms of skills training, Harvard University has an Harvard Islamic Finance Program and the Franco-American Alliance for Islamic Finance is organising Islamic finance seminars this summer. On the consumer side, Islamic finance in the US is mostly prevalent in the real estate market.
Islamic Bank of Thailand plans to set up an asset management team to handle its Bt48 billion in non-performing loans. The bank also plans to invite 35 financial firms to invest in the bank to restructure its business and boost its new loans, which stand at Bt30 billion. Chairman Chaiwat Utaiwan said Islamic Bank aimed to sell its 74.5% stake in the bank, the remaining stake is owned by Finance Ministry. According to its restructure plan, the bank needs new capital of Bt20 billion in order to adhere to Bank of Thailand standards. The bank has outstanding loan worth Bt95 billion.
According to Moody's Investors Service, the profitability of Islamic banks' in the Gulf cooperation Council (GCC) region will outpace that of their conventional peers for the second consecutive year in 2017. Islamic banks will maintain stronger margins in 2017, primarily as a result of their low funding costs, which reflect their reliance on stable current and savings account balances. Islamic banks also tend to have higher asset yields, given their focus on retail and the real estate related lending. Moody's expects that Islamic banks will retain a margin advantage of about 40 basis points over conventional banks in 2017. Moody's analyst Nitish Bhojnagarwala says conventional banks will continue to beat Islamic peers in terms of cost efficiency. Islamic banks are investing in branch network expansion, while conventional banks have already established their branch networks.
According to a new survey by the Chartered Alternative Investment Analyst (CAIA) Association, incorporation of environmental, social, governance and ethics principles into the investment process is growing in importance. More than three quarters (77%) of respondents to the survey agreed that responsible investing is more important than it was three years ago, while 78% anticipate it will be more important three years from now. When asked to rank the largest drivers of adoption of responsible investing and ESG approaches, respondents chose: Adoption of industry standards (71%); Pressure from institutional investors (67%); and Positive investment return outcomes (64%). A total of 647 CAIA members participated in the survey, which was conducted in January 2017.
The #Malaysian Securities Commission (SC) released its SC 2016 Annual Report. The report states that the Malaysian capital market remains resilient and sustainable, growing in an orderly trajectory, attracting sound investor interest. According to SC chairman Tan Sri Ranjit Ajit Singh, the outlook for the Malaysian capital market in 2017 is positive. The SC is in capacity-boosting mode armed with several initiatives. These include launching the new Malaysian Code of Corporate Governance, the approval of RM5.95 million by the nascent Capital Market Development Fund aimed at encouraging new entrants into the industry, and the establishment of an Institute for Capital Market Research in 2017. This complements the initiatives by the SC in 2015 and last year, including the introduction of the first Equity Crowdfunding Framework in the region and a peer-to-peer financing framework.
The Arab Regulators Conference, hosted by the Arab Monetary Fund, took place on 8-9 March in Abu Dhabi. The two-day conference was an opportunity for regulators to engage in an open dialogue on how to strengthen the development of corporate governance across the region. The conference was attended by over 160 delegates from 17 different countries from both the regulatory and the private sectors. Abdullatif Al Othman, Chairman of Saudi Arabian Industrial Investments (SAIIC) highlighted the importance of corporate governance. He urged attendees to adopt the highest international standards of corporate governance, to help move the region from frontier markets to emerging markets to developed markets. This year, board diversity and women’s role on the board were also widely discussed as were governance trends and best practices.
The Responsible Finance & Investment (RFI) Summit 2017 has announced a series of Executive Sessions organized by the RFI Foundation and INCEIF, the Global University of Islamic finance. These sessions will introduce participants from all backgrounds to the connection between Islamic Finance and Responsible Finance. INCEIF President Daud Vicary Abdullah said the alignment between the guiding principles of Islamic finance and the Sustainable Development Goals (SDGs) was significant. Daud added that these interactive Executive Sessions would provide a platform for people working in responsible finance who do not realize the alignment of responsible investment with Islamic finance.
The Central Bank of #Kenya (CBK) announced it was in final stages of licensing two banks, DIB Bank Kenya, which is owned by Dubai Islamic Bank, and Mayfair Bank which is owned by Kenyan investors. The two firms had received an "approval in principle" before the indefinite suspension of new banks. CBK suspended the licensing of new banks on November 17, 2015 saying it needed to strengthen oversight. The moratorium stalled entry of international banks into the country, where commercial banks have come under closer scrutiny from the regulator because of increasing bad debts. CBK governor Patrick Njoroge said the local banking sector has made huge improvements over the past year, adding that CBK’s supervision department has improved its monitoring capacity.
Bahrain's GFH Financial Group may merge with Dubai-based Shuaa Capital, GFH said in a statement. A web of ties between GFH and Shuaa began forming last year. In May, Abu Dhabi Financial Group (ADFG) and GFH said they were jointly setting up an Islamic bank called ADCorp with initial capital of $100 million. In November, ADFG bought a 48.36% stake in Shuaa, which has a market capitalisation of about $535 million. In December, Shuaa bought 14% of Bahrain's Khaleeji Commercial Bank for $25 million. GFH owns 47% of Khaleeji. On Sunday, Shuaa said it would acquire Integrated Capital and Integrated Securities, both controlled by ADFG. Integrated Capital owns 11.74% of GFH. ADFG officials did not respond to requests for comment about the possible merger.
ZPay, a payment application for foreign tourists in Iran, has won Bank Pasargad Iran’s award for best fintech innovation at the First Fintech Festival. ZPay enables foreigners to shop in Iran while keeping their money outside the country. Iran is doing much to improve its fintech standing. Earlier this month, it was reported that Iran had launched a FinTech Association to push for further development. And yet, while the capital Tehran is home to a growing number of local fintech startups, Iran still has a long way to go before it can be considered a fintech hub.
Currently we face several humanitarian crisis, the most afffected are the children. The large organisations need more funds. UNICEF organises the Cycling for Children challenge, which I will join.
Please support my effort and campaign by donating today online via:
My best wishes, and thanks on behalf of all the kids!
A low-income housing policy will be introduced in Dubai, to provide housing units for individuals earning low income and renovate some old areas in the emirate. The Crown Prince of Dubai HH Sheikh Hamdan bin Mohammad bin Rashid Al Maktoum approved the policy. It will classify low-income people into Emiratis and non-Emiratis, including expats and workers, in strategic sectors in Dubai. The policy will also include families’ income levels, place of residence, and public benefits and will compare them with requirements and the extent of challenges families are facing. Sheikh Hamdan approved two main programmes. The first one aims to cooperate with real estate developers in order to provide housing units for low-income families while the second aims to refurbish some old areas in Dubai.
Saudi Arabia hired Citigroup, JPMorgan Chase and HSBC as global coordinators on its international Islamic bond sale. The kingdom also picked Deutsche Bank and BNP Paribas among others as lead managers for the sale. The sukuk could come as soon as this month. Saudi secretary-general of the Finance Committee, Mohammad Al Tuwaijri, announced in December the kingdom's plans to raise between $10 billion and $15 billion from international bond markets in 2017 and sell about 70 billion riyals locally. The world’s biggest oil exporter is considering international and domestic debt issues to help finance its budget deficit.
The Kenyan capital markets regulatory authority and the Nairobi Securities Exchange today visited the Qatar Stock Exchange (QSE) and signed a memorandum of understanding (MOU) for cooperation between the two exchanges. The two sides will share information and technical assistance in respect of processes and procedures relating to listing, trading, depository operations, clearing and settlement. Mr. Samuel Kimani, Chairman of the Nairobi Stock Exchange, said that his is a young exchange looking for further development and cooperation opportunities. Rashid bin Ali Al-Mansoori, CEO of Qatar Stock Exchange, expressed his happiness and hope that the MOU will help enhance the economic cooperation between the two countries.
Towards the end of this month Bank Muscat is expected to raise OMR23-30 million, which is the first tranche of Meethaq’s OMR100 million-sukuk programme. Meethaq is Bank Muscat’s pioneer Islamic banking window in Oman. The bank has already received an initial approval from stock market regulator Capital Market Authority (CMA). Bank Muscat's Deputy CEO Sulaiman Al Harthy said the sukuk programme starts with a small amount, maybe OMR25-30 million to test the market and see the market appetite. Al Harthy also noted that this year, Islamic financial institutions are expected to grow at a similar rate as seen last year. Meethaq Islamic financing receivables rose to OMR855 million by end-December 2016, compared to OMR635 million in the same period in 2015.
Noor Bank CEO Hussain Al Qemzi has ruled out possibilities of any possible mergers in the UAE’s Islamic banks. The last merger is between First Gulf Bank and National Bank of Abu Dhabi, expected to complete by end of first quarter 2017. The merged entity is likely to create one of the largest banks in the Middle East and Africa, with assets of $175 billion (AED642bn). Al Qemzi said Islamic banks need innovation to integrate and position themselves to offer value and a better choice for Muslim and non-Muslim customers in order to grow. The CEO said a shortage of Sharia scholars was also impeding growth of the Islamic finance industry with many institutions in the country sharing advisors.
Metito is the largest privately held water treatment company in the Middle East. Metito’s African operations account for nearly about a third of its revenues and the current backlog is around $300 million. Metito approached Islamic banks in early 2014 to tap on their resources to support the Group’s growth. As of today, a major of the long-term financing that the group has received in GCC region is comprised mostly of Shari'ah-compliant financing tools. The total size of Islamic financing facilities currently in use stand at around $150 million and the share is expected to increase over the next 12 months. The Group has so far availed three types of Islamic finance financing tools, Musharakah, Ijarah and Murabahah. Group CEO Wafic Ghanem said Metito has not yet considered tapping into Sukuk issuance for its African business given the infancy of Sukuk market in the continent.
On Feb. 26 the Iranian government got the parliament approval to sell a total of 10 trillion rials ($308 million) worth of excess properties owned by its ministries. The raised money is expected to help shore up the troubled Post Bank of Iran and the Cooperative Development Bank. According to economic newspaper Donya-e Eqtesad, toxic assets account for 40-45% of total banking assets in the country. Nearly 15% of these assets consist of immovable assets such as land and buildings. The rest consists of nonperforming loans and government debt. The sale of at least 33% of the surplus assets could have taken place in the fiscal year running to March 20, but banks eventually decided to find a legal way to postpone the sale process. Real estate expert Farhad Beizaei accused banks of wasting time so that they can sell properties at higher prices next year.
The United Arab Emirates' Sharjah Islamic Bank (SIB) plans to issue convertible sukuk equivalent to 10% of the lender's capital. Funds raised through the debt sale will be used by Islamic endowments selected by the government of the emirate of Sharjah. The bank also authorised a capital increase to 2.67 billion dirhams ($726 million) from 2.43 billion dirhams.
According to Bangladesh Bank's former deputy governor Khondkar Ibrahim Khaled, Islami Bank Bangladesh speaks about Islamic banking, but it does not act in that way. In his view, the private bank is not following Islamic banking rules of keeping customers as partners of profit or loss. He also alleges that remittances are dropping due to 'dishonest' mobile banking abroad. The statements were made at a seminar in Dhaka where several professors of Bangladesh Institute of Bank Management (BIBM) were present. Khaled said that remittances were dropping because money is being sent through illegal channels in the name of bKash. He advised the Bangladesh Bank to open a new wing to research mobile banking in order to stop transactions outside banking channels. In a research paper published at the seminar, it was said that a large section of the customers of Bangladesh's banks did not have clear ideas about the sector.
In this interview HRH Prince Khaled bin Alwaleed bin Talal reveals the full story behind his investment firm’s jump into the Shari’ah space. He founded KBW Investments four years ago and launched in mid-January his newest company, ARADA, in partnership with Basma Group. KBW’s first movement in the Shari’ah-compliant investment space is called Crestmount Capital. Prince Khaled found the fairness of Islamic finance most appealing, the extensive work in preparation of launching Crestmount Capital with Amanie Advisors has been really educational. The projects that Crestmount Fund will invest in will be delivered by PietyTHP Developments, which is a joint venture between Piety and the property arm of Lembaga Tabung Haji of Malaysia. Crestmount Fund I, a Shari’ah-compliant real estate private equity fund, is structured as a Cayman Islands entity. It will fund five identified under-development residential projects in Sydney, Australia, through Shari'ah-compliant commodity Murabahah agreements.
Jaiz Bank is now a public quoted company listed on the Nigerian Stock Exchange. To commemorate the listing, Jaiz Bank’s Executive Management, led by Chairman Dr Umaru Abdul Mutallab, were honoured with a closing gong ceremony to officially close trading on the bourse for the day. Hassan Usman, Jaiz Bank's CEO noted that the listing of the bank’s shares was a fulfillment of an earlier promise made at inception of the Bank. He added that the listing would elicit public confidence that Non-Interest Banking provides alternative model that contributes to the socio-economic development of the country. Oscar Onyema, CEO of the Nigerian Stock Exchange, said this listing would promote liquidity for the bank, enhance its value and increase its transparency.
Amid Brexit-fuelled uncertainty, London is trying to do its best to stay afloat as one of the most important hubs for Islamic finance in the Western world. There are now five fully-fledged Islamic banks, one Shariah-compliant hedge fund manager and one dedicated takaful provider in the UK. Also, there are over 20 banks providing Islamic financial services in “banking windows,” more than in any other European country. They benefit from the depth and liquidity of London’s capital markets, the large pool of expertise offered by specialists. Furthermore, the London Stock Exchange is a key global venue for the issuance of sukuk.
Experts say that one of the biggest drawbacks of Brexit for the entire UK banking industry will be the loss of “passporting” privileges that allow UK banks to access the single EU market without restrictions. Another issue is legal uncertainty for existing Islamic banks over to what extent current banking and financial regulations – which have largely been influenced by EU law – will change.
BankIslami Pakistan and fintech startup CompareOn Pakistan have signed a strategic alliance that will further enhance BankIslami’s reach. CompareOn Pakistan provides the online comparison platform Karlocompare.com.pk, which delivers product information and enables customers to apply without the need of visiting or calling BankIslami branches. The agreement was signed by Sumair Farooqui, CEO of CompareOn Pakistan and Yasser Abbas, Head of Islami Auto Finance. Speaking on the occasion, Sumair Farooqui said CompareOn Pakistan intends to serve the growing customer base of Auto Financing Industry and contribute to enhancing awareness around BankIslami’s products.
Oman’s Capital Market Authority (CMA) has given provisional approval for two new sukuk issuances of an aggregate size of RO 300 million (around $780 million). CMA President Abdullah bin Salim al Salmi said the proposed issuances underscore the potential and appetite for sharia-compliant finance and investment in the Sultanate. He noted that as of end-June 2016, the value of the sharia-compliant capital market jumped to RO 3.91 billion ($10.16 billion), comprising sharia-compliant shares, investments and sukuk, versus RO 3.24 billion ($8.42 billion) a year earlier, representing an increase of 21.14%. Significant growth has also been witnessed in the Takaful market with premiums reaching RO 41.99 million as of end-2016, up from RO 38.77 million a year earlier, representing an increase of 9.2%.
The Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has issued a draft standard on murabaha to update guidance on the most common financing tool used by Islamic banks. AAOIFI is conducting a wide review of its standards to encourage convergence of industry practices and increase consumer appeal. The proposed standard would supercede two earlier ones on murabaha. It would also cover new areas such as the accounting treatment on the liability side of a murabaha transaction. AAOIFI is seeking industry feedback on the draft until the end of March, aiming to make the final version effective from January 2019.
The General Council for Islamic Banks and Financial Institutions (CIBAFI) and the Islamic Research and Training Institute (IRTI) are jointly organising the yearly meeting of the Directors of Operations and Investments of Islamic Financial Institutions (IFIs). The theme this year will be "Bringing Islamic Investment of IFIs to the Next Frontier" and is held between March 22-23 in Manama. Experts in Islamic Investments will gather to discuss the disruptive agendas of the Islamic investments and look into topics of Strategies in the Infrastructure and Project Finance; Private Banking Capabilities of IFIs; Direct Equity Investment of IFIs; Sustainability Criteria in Islamic Investment Framework among other significant topics.
Bank Al-Maghrib and the Islamic Financial Services Board (IFSB) co-organized a regional workshop entitled "Facilitating Implementation of IFSB Standards" in Rabat. The workshop focused on 3 standards for participatory banking: IFSB-15 "Revised Capital Adequacy Standard" on Prudential Capital and Solvency Standards, IFSB-16 "Revised Guidance on Key Elements in the Supervisory Process" on Supervision Standards, and GN-6 "Quantitative Measures for Liquidity Risk Management" on prudential liquidity standards. This event is part of the measures taken by Bank Al-Maghrib to finalize the regulatory framework governing participatory banking activities in Morocco.
Bank Nizwa in partnership with Islamic Finance News (IFN) successfully concluded the second ‘Islamic Finance News Forum’. Sharing his expertise in the IFN Debate was Bank Nizwa’s new CEO, Khalid Al Kayed, who discussed the challenges of standardization and increased regulation. The CEO also took part in the closed-door IFN Oman Dialogue session to openly discuss the benefits and concerns facing the Islamic Finance market. Other sessions at the forum looked into the legal and regulatory framework of Islamic Finance, the development of sustainable and efficient Islamic capital markets, capital market activity and economic development, and innovation in Islamic Finance.