IslamicFinance.de mission is to support the Islamic finance, banking and takaful industry with news abstracts, opinions, a free encyclopedia, a Twitter page and networking.

Ajman Bank officially launched

Ajman Bank is officially launched as the Emirate of Ajman`s first Islamic commercial bank. The bank will serve the community and emphasize social corporate responsibility.

Yousif Khalaf is the CEO of Ajman Bank.

Emirates NBD launches Sukuk fund

Emirates NBD has launched a fund to take advantage of the high yields currently available in Sukuk following the steep price declines in Q4 2008 caused by the wider turmoil in global financial markets. The Shari’a-compliant Fund targets annualized returns of c.12% over the next four years.

Jamal Bin Ghalaita, General Manager of Consumer Banking and Wealth Management at Emirates NBD, sees Sukuk as undervalued after panic selling last year.

Minimum investment of USD 25,000 for individual investors and USD 1,000,000 for institutional investors. The secondary sukuk market is difficult to access but, by investing through the Fund, investors benefit from scale, diversification, and the skills of expert fund managers. Should the Fund meet certain return targets, the Fund will be called and gains will be locked in for investors.

BNP Paribas Investment Partners launches Sukuk Fund

BNP Paribas Investment Partners currently manages about half a billion USD in Sharia compliant assets and targets according to the chief executive MENA Tariq Al Samahiji to multiply this amount. The bank currently offers equity Sharia management and has recently started marketing its first Islamic bond or sukuk fund.
Al Samahiji expected the sukuk fund to attract investments from institutions and wealthy individuals, but stressed BNP would not market the fund to the retail market.

Kuwait Finance House’s 2008 posts profit before provision and increase income

Edward Russell reported on Financeasia on 2 February, that Kuwait Finance House’s (KFH) 2008 posts profit before charges but faces falling revenues. In Q4, KFH's revenue fell 16.3 % quarter-on-quarter to KD 185 mn. The revenue decline increased 3.7 % from the previous quarter when it fell 12.5 % quarter-on-quarter. Despite the decline in revenues in the second half of the year, the bank managed to report an overall increase in income of 6.5 % year-on-year.

The finance house's unaudited full-year net profit totalled KD 157 mn(USD 542 mn on revenues of KD 884.9 mn. Given the current economic environment, KFH announced to retain KD 211 mn as a "provision". After the KD 211 mn provision, KFH lost anywhere between KD4 8 mn and KD54 mn for the year. Full-year and fourth-quarter audited results have yet to be released.

Darakhim Sukuk Basket presented in Kazakhstan

Caspionet reported on 28 January, that Darakhim Sukuk Basket have been presented in Kazakhstan. It is expected that insurance companies, unit investment funds and pension funds will become the chief buyers of the new investment offer. Basically, they represent the companies of the Middle Eastern states, so they are issues of the central bank of Bahrain, the government of the Arab emirates, Kuwait and Saudi Arabia. It is expected that the profitability will amount to 10 % at a minimum with a circulation period of 3 years.

Tamweel restructuring including layoffs

Suzanne Fenton reported on 29 January on Gulf News, that Dubai-basedm mortgage lender, Tamweel PJSC - a company which is currently under merger process with Amlak - is restructuring its business plans and organisational structure that involves a reduction of 57 staff members from its workforce. Tamweel, Amlak, Real Estate Bank and Industrial Bank are about to merge to UAE`s largest mortgage provider. Emirates Development Bank will have access to government funds.

Iran: Cooperative Development Bank planned

Iran Daily reported on 1 February that the director of Iran Privatization Organization (IPO) has said the organization plans to establish the first-ever cooperative development bank.

Gulf Finance House targets undervalued assets in the region

Frederik Richter reported on Arabianbusiness on 1 February that Gulf Finance House is looking for acquisitions of undervalued assets in the region.

Deputy Chief Executive Mehran Jamsheer was cited.

Millennium Finance Corporation (MFC) on expansion course

Waheed Abbas from Emirates 24/7 reported on 2 February about the regional investment bank and private equity company Millennium Finance Corporation (MFC), which aims to expands its reach to Saudi Arabia, India and Nigeria through joint ventures and acquiring licences. The firm is also considering IPO.

CEO is Keba Keinde, which gave an exclusive interview with Emirates Business. Please click on the source below.

Bank of London and the Middle East plans three funds

Bank of London and the Middle East, or BLME, plans to launch at least three funds in 2009 targeting a US dollar based fixed income fund, a UK real estate distressed assets fund and an equities fund according to Adrian Gayler, the newly appointed head of private banking at BLME, told Zawya Dow Jones.

Dubai Islamic Bank partners with Hawkamah Institute

Rebecca Bundhun reported on Arabianbusiness on 29 January that Dubai Islamic Bank partners with Hawkamah Institute has signed a "founding member" sponsorship agreement with corporate governance organisation the Hawkamah Institute.

PT Bank Negara Indonesia to sell sukuk in Malaysia

Business Times reported on 30 January PT Bank Negara Indonesia, the nation’s third-largest state financial services company, plans its first Islamic debt sale in Malaysia, president director Gatot Suwondo said.

Plans are about USD 50 mn, with a 5-year and 10-year maturity if the pricing is attractive.

SCOTTISH Widows Investment Partnership enters Saudi market

The Scotsman reported on 29 January that SCOTTISH Widows Investment Partnership has launched a joint venture with Manar Financial Investment Company; Swip Saudi Asset Management. It will mainly focus on investment in the insurance sector, but will also manage shariah-compliant global emerging market equities.

Gulf Finance House reports quarterly loss and 14 % lower annual profits

Bahrain's Gulf Finance House has reported a Q4 loss of USD 10 mn after it made 'provisions on investments' compared with net income of USD 108.8 mn for the same period. Total year earnings are down to USD 291 mn (Dh 107 mn) in 2008 compared to USD 340 mn in 2007.

Securities Commission, Malaysia Approves 3 New Foreign Islamic Fund Managers

News Agency Bernama reported on 29 January that 3 new foreign Islamic fund management companies (IFMCs) have been approved by the Securities Commission to start operations in Malaysia:

The new companies are Aberdeen Islamic Asset Management Sdn Bhd, BNP Paribas Islamic Asset Management Sdn Bhd and Nomura Islamic Asset Management Sdn Bhd; the others who have been approved to establish operations are Kuwait Finance House (Malaysia), DBS Asset Management, CIMB-Principal Asset Management, Global Investment House and Reliance Asset Management.

Allianz SE Life Reinsurance approval to establish a separate fund to support for Family Re-Takaful

Allianz Re has announced that Allianz SE Life Reinsurance Branch Labuan (ARLL), recently recieved regulatory approval to establish a separate fund to support the life and health retakaful business (Family Retakaful). As a branch office of Allianz SE, ARLL enjoys an S&P rating of "AA" and A.M.Best rating of "A ". ARLL will offer retakaful solutions to Family Takaful providers.

Benchmark, India launches Exchange Traded Fund

Shailesh Menon reported in Economic Times on 29 January that Benchmark Asset Management is launching a Shariah-compliant open-ended exchange traded fund. The scheme opens for subscription on February 4 and closes on February 25.

Shortfalls and Overbanking in the GCC

Rohit Chawdhry, portfolio manager of Bahrain Islamic Bank, analyses the issue of overbanking in the Gulf region and the institutions anticipating mergers in the February issue of The Middle East. He concludes that all state plans fostering project developments are not covered by a sufficiently large banking sector. The Institute of International Finance estimates there are about USD 1.9 trillion worth of projects under way in the region, making the GCC one of the largest project finance markets in the world. But analysts estimate that the present project finance, which includes bank lending, bond and equity issuance, has a funding shortfall of at least $900bn, if not more. To create banks which are able to shoulder a greater proportion of the financing needs of projects under construction, by state and private investors is the challenge of the policy makers.

Nigeria: Micro Bank Offers Islamic Compliant Services

Mustafa Abubakar reported in Daily Trust / Allafrica on 28 January that, The Kwara Commercial Micro Finance Bank is to offering Shari'ah compliant services and was officially commissioned in Ilorin on 27 January.

The bank will also offer other conventional banking services such as Micro loan, pay plus, small business loan and agricultural loan. The director of the bank Olayinka Blackshear said the state Governor Dr. Bukola Saraki in partnership with other interests took the initiative to facilitate the incorporation of the bank, in a bid to boost grassroots economy.

S&P: Shamil Bank of Bahrain 'BBB-/A-3' Ratings Withdrawn At Bank's Request

Press Release

PARIS (Standard & Poor's) Jan. 28, 2009--Standard & Poor's Ratings Services said today that it affirmed its 'BBB-/A-3' ratings on Shamil Bank of Bahrain. The outlook on the ratings remains negative. The ratings were subsequently withdrawn at the bank's request.

As a result of the withdrawal, Shamil will no longer be subject to Standard & Poor's review. At the moment of the ratings withdrawal, the bank had no rated debt outstanding.

Syndicate content