IslamicFinance.de

Cyprus listed SFS Group and Kuwait Finance House (Malaysia) aim to launch a USD 150 mn fund. Fund's objective is to invest directly in shipping assets and primarily in vessels to be chartered out on a long-term basis to top league charterers. The fund will be established through a limited partnership in the Cayman Islands before the end of 2009.

Ab Jabar Ab Rahman is the deputy chief executive officer of Kuwait Finance House (Malaysia) Berhad.

HSBC launches its Amanah Islamic banking services in Mauritius, being the first Islamic window provider. The new services is primarily for international business clients in the offshore sector. Local clients may follow later.

Sandeep Uppal is the CEO of HSBC in Mauritius.

FT has today a 4 page special on Islamic finance. The link below leads to its pdf version (size 10 MB), discussing standardisation issues, credit crunch and other topics.

International Islamic Financial Market (IIFM) held its 20th board meeting and discussed the achievement of last year, the Master Agreements for Treasury Placement (MATP), and the new project of the IIFM-ISDA "Tahawwut" (Hedging) Master Agreement.

The objective of IIFM is to take part in the establishment, development and promotion of Islamic Capital and Money Market (ICMM). IIFM's primary focus lies in the advancement and unification of Islamic financial documents, structures, contracts, instruments, infrastructure and recommendations for the enhancement of IC

Press Release

DUBAI, April 30, 2009--Standard & Poor's Ratings Services today said it had placed the ratings on the following Dubai-based government-related entities (GREs) on CreditWatch with negative implications: DIFC Investments LLC, DP World Ltd., Jebel Ali Free Zone (FZE), the Dubai Multi Commodities Centre Authority (DMCC), Dubai Holding Commercial Operations Group LLC (DHCOG), and Emaar Properties PJSC (collectively, "the Rated GREs"). In addition, we placed the notes issued by Thor Asset Purchase (Cayman) Ltd. (Thor), which are securitized by cash flows from a revolving pool of existing and future receivables originated by Dubai Electricity and Water Authority (DEWA; not rated), as well as the notes issued by JAFZ Sukuk Ltd. (collectively, "The Notes"), on CreditWatch with negative implications (see Ratings List below).

Press Release

LONDON, April 29, 2009--The credit profile of Gulf banks will likely deteriorate this year, notably because of the tougher operating environment, lower business volumes, tighter liquidity, and the region's stock market slump since the end of third-quarter 2008, said Standard & Poor's Ratings Services in a report published today.

"We believe that as a result, asset quality and profitability of the banks that we rate are likely to suffer," said Standard & Poor's credit analyst Mohamed Damak, lead author of the report, "Tougher Environment Weakens Financial Profile Of Gulf Banks And Pressures Their Credit Ratings."

Indeed, we believe that 2009 will prove to be a difficult year for most Gulf Cooperation Council (GCC) banks.

"On a positive note, thanks to their good financial profile, Gulf banks have entered this tougher environment from a position of relative strength," said Mr. Damak.

Press Release

LONDON, April 29, 2009--In the spring of 2009, uncertainty remains the dominant theme for insurance companies and banks across the Gulf Cooperation Council (GCC) region, as it does internationally, Standard & Poor's Ratings Services noted in a report, titled "Insurance Markets In Saudi Arabia In The Wake of Regulatory Restructuring And The Global Economic Downturn."

Even within the GCC, however, Standard & Poor's detects a widespread belief that the Kingdom of Saudi Arabia (KSA) and its financial institutions have been less affected by the downturn than most of its neighbors, and that recovery will likely come more quickly there than elsewhere. Meanwhile, the ongoing flow of Initial Public Offerings (IPOs) on the Tadawul Stock Exchange in Riyadh in 2009--including the April IPOs of insurers Al Rajhi, Weqaya, ACE Arabia, and AXA Cooperative to raise a cumulative Saudi Arabian riyal 260 million (approximately $69 million) of new capital--indicate that Saudi investors still have considerable liquid assets with which to support attractive business propositions.

High Financing Costs May Crimp Future Issuance Of Project And Infrastructure Sukuk In The Gulf

LONDON, April 28, 2009--The global slowdown, along with local macroeconomic factors, appears to have curtailed the anticipated growth of sukuk (including those for infrastructure and project finance) in the Gulf region, says a report published by Standard & Poor's Ratings Services titled "Islamic Sukuk Come Of Age In Infrastructure And Project Finance." What's more, investor appetite for these instruments may continue to be adversely affected by the high costs of financing, predominantly local investor appeal, a real estate downturn, hydrocarbon prices, and accounting issues.

Dubai Islamic Bank's shareholders agreed Monday to increase its capital by 3 billion dirhams (USD 816 mn) over five years. The bank said in an emailed statement that shareholders at a general assembly also agreed to convert an 3.75 billion-dirham deposit from the Ministry of Finance into Tier 2 capital.

Abu Dhabi-based Dolphin Energy has signed USD 3 bn of loans that will part refinance a USD 3.45 bn debt facility maturing in July, it is also finalising an Islamic tranche worth about USD 500 mn and is preparing to launch a bond worth USD 500 mn to USD 1 bn.

Various experts were interviewed and confirmed the need for special banks addressing the needs of small and medium sized companies in the UAE.

EcoFirst Consolidated Bhd, Malaysia hopes to raise about RM 80 mn to RM 100 mn through the issuance of Sukuk by year-end to finance the building of two high rise buildings on top of the mall as well as the mall’s refurbishment, reported Shannen Won in The Star Malaysia.

In the coming weeks, Malta will be explored by a large institution for its potential to the introduction of the Sukuk

Any organisation interested in participating in an information session being organised with the visiting institution or in having one to one meetings are invited to send an email to Reuben Buttigieg on rbuttigieg@maltamanagement.com

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) will seek a mandate from its trustees to examine the degree of sharia financial products' compliance with its 40 standards, its secretary-general, Mohamad Nedal Alchaar, said according to Liau Y-Sing from Reuters.

Lack of common standards makes it difficult to sell products across borders, while possibly enhancing innovation.

Dubai real estate developer Deyaar will launch a series of funds of up to AED 1 bn to buy distressed debt, including its own, as it looks to boost returns for shareholders, reports John Irish on Reuters.

Its first AED 500 million fund is about 60-70 % subscribed by a mix of local and overseas investors and would buy back properties on which investors have defaulted from Deyaar's own portfolio according to the CEO, Giebel.

Deyaar will rent out the units to provide cash flow for the company before selling them once the Dubai property market recovers.

The UAE’s two largest Islamic home finance companies will need to secure adequate funding before they can re-start lending, the chairman of Tamweel. Both firms have been funded by banks on short term maturities, a business model, which does no longer work.

Malaysia's retail Sukuk was a success and oversubscribed, now a second tranche is in preparation.

The whole-sale "mega bank" initiated by Saleh Kamel, Chairman of Dallah Albaraka Group shall be situated in Bahrain and is going to fundraise this year reported Shakir Husain in Gulf News. The bank should be business even outside the Muslim regions.

The bank's founders will contribute USD 1 bn in equity and USD 10 bn will be raised by offering shares to the public. Another USD 200 bn is planned to come from sukuk issuance and investment funds.

Among the main shareholders will be the Islamic Development Bank (IDB), the Jeddah-based multilateral lending agency, Dallah Albaraka Group, Kuwaiti Real Estate Bank and another 10 banks. There are two possible names being considered for the bank, which are Al Imar and Al Istikhlaf.

Al Baraka Banking Group said it planned to enter the French market to tap into Western Europe's largest Muslim community reported Will Waterman in Arabianbusiness. Further Al Baraka's units in North Africa are planning tie-ups with French partners to "establish Islamic banking in France", it said in a statement on the Nasdaq Dubai, where it is also listed. However no legal agreements have been finalised

New sales of Islamic bonds or sukuk, by Asian governments such as Indonesia are revitalising the market, ratings agency Moody’s said in a report, wrote Uta Harnischfeger in The National. Last week, the government of Indonesia issued its first international dollar sukuk, raising US$650 million (Dh2.3bn). The Sukuk was seven times oversubscribed.