GCC

APICORP Issues $500 Million, 5-Year #Sukuk

The Arab Petroleum Investments Corporation (APICORP) has launched a USD 500 million 5-year sukuk off its USD 3 billion Trust Certificate Programme. APICORP undertook extensive investor meetings at the beginning of October in Asia, in the UAE and in London. The extensive marketing explains the successful outcome which included a book in excess of USD 3.45bn from 215 investors. The final distribution was 41% MENA and 59% in Europe, Asia and off-shore US. CEO Ahmed Ali Attiga said that with over 200 investors APICORP had firmly planted its flag in the capital markets. He added that the success of this transaction was testament to APICORP’s impressive 40 year track record and Aa3 credit rating. Abrar Hussain, Head of DCM at Credit Agricole CIB, mentioned that the extensive set of investor meetings also contributed to the oversubscription of the sukuk.

APICORP lists $500 million #Sukuk on Nasdaq Dubai

Nasdaq Dubai has welcomed the listing of a $500 million Sukuk by APICORP, the development bank of the Arab world’s oil and gas industries. The transaction is APICORP’s second Sukuk listing on Nasdaq Dubai, as the first was in January 2016. The Sukuk was issued under a $3 billion Sukuk programme and is aimed at diversifying its funding sources. APICORP’s activities include equity investment, debt financing, financial advisory and energy research services. Sukuk listings in the Emirate currently totals at $52.97 billion. 11 Sukuk listings have taken place so far in 2017 on Nasdaq Dubai with a total value of $10.25 billion.

Dana Gas Is Said to Miss Payment on $700 Million #Sukuk Today

Dana Gas has no plans to repay the two mudaraba sukuk of $350 million in size each due Oct. 31. The company shocked the Islamic finance industry when it said it no longer considered its sukuk Shariah-compliant. The missed payment will be the second time in five years the company fails to settle bonds at maturity. In June Dana Gas offered to replace the existing sukuk with four-year bonds that pay less than half the current rate. It retracted that offer in July, adding that it will seek a court-driven solution. A UAE injunction has barred Dana Gas from taking part in the trial in London, but British judge George Leggatt will hand down a ruling on the 13th of November.

Ibdar: Pioneering a Fully Digitised Islamic Investment Bank

Ibdar Bank is directing its FinTech strategies to position the bank as a fully-digitised Islamic investment bank. The Bank has USD277 million in paid up capital and a geographical reach that spans the GCC and Middle East North Africa Turkey (MENAT) region. The Bank also transacts in Southeast Asia and select developed markets. Ibdar Bank has significant expertise in areas including aviation, infrastructure, maritime, oil & gas, and real estate. According to CEO Ayman Sejiny, Ibdar has set out a comprehensive plan in 2018 for its engagement with global Fintech service providers. In the first phase, the bank is set to digitise its operations internally, the second phase will focus on implementing its service offerings in response to the needs of a Global Islamic Digitised Economy (GIDE). Sejiny added that the Central Bank of Bahrain has taken decisive steps towards a FinTech supportive environment in order to facilitate the growth of the sector.

#Saudi's Jabal Omar picks two banks for #sukuk sale early next year -sources

Saudi Arabia’s Jabal Omar Development Company has hired two banks to manage a sukuk sale which could exceed 4 billion riyals ($1.07 billion). Bank Albilad and GIB Capital were hired to arrange the issuance, which is planned for the first quarter of 2018. The property developer's sukuk would be among just a few corporate debt sales expected over the next few months, as the Saudi market is still largely dominated by government bonds. The government has issued a total of 47 billion riyals through monthly sukuk sales since July, and is likely to continue. Jabal Omar’s flagship Mecca development project includes residential units, hotels and commercial malls. The company has raised a number of large bank loans over the past few years, and the sukuk proceeds would be used to refinance its existing bank debt.

Exclusive: First Islamic #robo-adviser to launch in Mena

The first Sharia-compliant robo advisers plans to start operations in the UAE soon, as it looks to a US$2 million funding boost this week from the Dubai venture capital firm Beco Capital. The digitally automated investment adviser Wahed Invest launched in the USA five months ago. CEO Junaid Wahedna said the company was in the process of moving to a new office in Dubai which will become the company’s new global headquarters. Wahed Invest expects to start regional operations by mid-Nov­ember, focusing initially on the UAE. According to Wahedna, the target for ethical, Sharia robo-advisory is the younger demographic, 25-35 years old, digitally savvy and educated millennials. The minimum investment of $100 enables it to tap into a broader customer base.

#Bahrain’s GFH eyes #Saudi asset management moves

Bahrain’s GFH Financial Group is considering a listing in Saudi Arabia. CEO Hisham al-Rayes said the Group was also keen to participate in Saudi Arabia’s privatisation programme in sectors such as education and healthcare. He added that GFH was looking at asset management and private equity sector as sectors to acquire. Al-Rayes also disclosed that GFH was in talks with an unnamed financial services company in the Gulf. GFH's acquisition of Dubai-based Shuaa Capital was postponed due to a failure to reach acquisition terms and a lack of initial regulatory approval.

Dubai's Emirates Reit plans debut #sukuk of at least US$300m this year: source

Dubai-based Emirates REIT plans to issue a debut Islamic bond of at least US$300 million by the end of this year. The Syariah-compliant real estate investment trust (REIT) has called a shareholder meeting on Nov 23 to discuss the planned sukuk, which could be issued shortly after that date. The company's total debt as at June 30 was about US$300 million. The loan-to-value (LTV) ratio of the REIT stood at 36.8%, which means there is room for issuance larger than US$300 million, the source added. The company had a portfolio of US$772 million at the end of June. Its portfolio includes mixed-use properties, office buildings and schools in Dubai.

#UAE’s Dana Gas leaves maturing #sukuk unpaid but no default declared

Dana Gas will not redeem $700 million (Dh2.57 billion) of its sukuk, as the dispute on the validity of the sukuk drags on in British and UAE courts. Dana claims changes in the interpretation of Islamic finance over recent years means the securities are no longer Sharia-compliant and have become unlawful in the UAE. The case is closely watched by the global Islamic finance industry because some investors think it could set a precedent for other sukuk issuers. Dana asked the Sharjah court for an early hearing date for an appeal which would allow it to participate in the London court case. Proceedings in London are expected to resume by Nov. 13, a ruling on the case could be issued on that date or shortly afterwards.

Thomson Reuters Provides Shariah-Compliant Deal #Application to Alinma Bank

Thomson Reuters will provide Alinma Bank with a Shariah-compliant application. It will fully automate deal workflow for Shariah-compliant financial transactions. The application provides a real-time view of Shariah-compliant deals, through an automated online system that minimizes the process of tracking transactions. Alinma Head of Treasury, Abdullah Al Zahrani, said that he was pleased to be the first bank in Saudi Arabia to partner with Thomson Reuters to bring innovative solutions to the Shariah-compliant banking. Nadim Najjar, Managing Director for MENA at Thomson Reuters, said this innovative application would automate the validation process and offer a seamless digital solution for the industry.

AAOIFI, ACCA sign MoU

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Association of the Chartered Certified Accountants (ACCA) signed a landmark Memorandum of Understanding (MoU) in Bahrain. The MoU aims at enhancing the cooperation between the specialized professional accounting fellowship issued by AAOIFI, Certified Islamic Professional Accountant (CIPA) and the international professional fellowship ACCA. According to Farhan Noor, AAOIFI's Head of Professional Development, the new CIPA now requires the candidates to pass four module exams and fulfill a one-year practical experience requirement. By this agreement, ACCA qualified accountants can now get exemptions from half of the CIPA program to acquire the prestigious CIPA Fellowship. The MoU also includes cooperation in different areas such as research, events and continuous development.

#Saudi Regulator Urges Consolidation in Crowded #Insurance Sector

Saudi Arabia’s insurance industry needs more consolidation and foreign input to help create solid companies. According to Ahmed Alkholifey, governor of the Saudi Arabian Monetary Authority (SAMA), there are some small firms which are incapable of surviving in the market in their current condition. There are 33 insurance firms listed on the country’s stock exchange with a combined market value of $11.1 billion. The governor said two foreign firms would soon increase their stakes in Saudi insurance companies, but did not mention names. Banque Saudi Fransi sold an 18.5% stake in Allianz Saudi Fransi Cooperative Insurance to Allianz Europe BV. In June, Al-Ahlia Insurance started non-binding talks with Gulf Union on a proposed merger. An agreement is expected to be reached by the first half of 2018.

#Saudi Arabia considers issuing international #sukuk early next year- Maaal

Saudi Arabia plans to issue an international sukuk in the first quarter of 2018. Fahad Al-Saif, head of the debt management office, said the government would issue domestic sukuk in November and December. Saudi Arabia issued its debut international sukuk earlier this year, raising $9 billion.

ADIB launches second Advanced & Autonomous Car #Equities basket note following high demand

Abu Dhabi Islamic Bank (ADIB) launched a second 'Advanced & Autonomous Car' Equities Basket Note, following high investor demand for the first tranche. The Shariah-compliant note matures in one year and provides 100% capital protection. The product provides investors with exposure to a basket of five leading car manufacturers, including Daimler, SAP, Volkswagen, BMW and Tesla. The minimum investment for the note is US$30,000, with an option for early redemption after three months. In September 2017, the bank launched a similar equity basket note, which provided investors with exposure to a basket of nine companies operating across the car industry. On September 7, 2017, an ADIB Shariah-compliant diversified equity basket note capturing the performance of undervalued blue-chip yielded 5.45% upon its maturity.

DMCC and Dubai SME to develop Shariah compliant #trade finance #platform for SMEs

DMCC has signed a Memorandum of Understanding (MoU) with Dubai SME to create a web-based trade finance platform for SMEs. The platform will be Sharia-compliant and operate under the DMCC Authority regulatory framework. Present at the signing ceremony was Gautam Sashittal, CEO of DMCC and Abdul Baset Al Janahi, CEO of Dubai SME. Gautam Sashittal said this cooperation between DMCC and Dubai SME opens a new avenue for funding and financing SMEs. Al Janahi said the SME sector in the UAE has evolved remarkably during the past decade chiefly due to support from the government. He added that this MoU was among a series of partnerships created after identifying the gap that existed in the SME landscape in terms of mobilising resources. DMCC is using Alternative International Management Services (AIMS) to make the platform Sharia-compliant.

Mazoon #Sukuk receives Fitch rating

Fitch Ratings has assigned Mazoon Electricity Company's Sukuk an expected rating of 'BBB'. The expected rating is in line with Mazoon Electricity’s Issuer Default Rating (IDR) of 'BBB', which has a negative outlook. Mazoon Assets Company’s is the issuer of the certificates and trustee and is a closed joint stock company in accordance with the laws of the Sultanate. The trustee has been incorporated solely for the purpose of participating in the transactions contemplated by the transaction documents. Earlier, Moody’s Investors Service assigned a Baa2 rating to Mazoon’s Sukuk certificates. The outlook on all ratings is negative.

#UAE Central Bank warns against #Bitcoin

The UAE Central Bank has warned against Bitcoin, terming it as unofficial and lacking sufficient supervision. According to Governor Mubarak Rashed Al Mansouri, it can be easily used in money laundering and in funding terror activities. Al Mansouri also said the central bank has completed the formation of a committee for developing Islamic Sharia-compliant products in order to support the Islamic finance sector. On the level of the UAE financial exposure to global capital markets, the governor said local markets have a slight exposure as the existing liquid assets now account for 17% of the banking sector's total assets. He added that UAE banks are robust enough to deal with risks as they have sufficient capital on account of the rising level of individual deposits.

Islamic Development Bank (IDB) celebrates listing $1.25 billion #Sukuk on Nasdaq Dubai

Dr. Zamir Iqbal, Chief Financial Officer of the Islamic Development Bank (IDB), rang the market-opening bell to mark the listing of a $1.25 billion Sukuk on Nasdaq Dubai. 53% of the five-year Sukuk issuance was acquired by investors in the EMEA region, while 47% went to investors based in Asia, with an annual return of 2.261%. The IDB is one of the largest Sukuk issuers on Nasdaq Dubai, with a current total of eight listings valued at $10.25 billion. The bell-ringing ceremony was attended by Hamed Ali, CEO of Nasdaq, as well as Azahari Bin Abd Kudus, Capital Markets Manager of the IDB. Dubai is a leading international centre for Sukuk activity, with Sukuk listings in the Emirate currently totalling $52.47 billion.

#Saudi Arabia joins AAOIFI, bringing potential boost to finance sector

Saudi Arabia’s central bank has joined the Islamic financial regulator Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). The move could increase cross-border financial deals in the region, as guidelines will apply to all financial institutions within Saudi Arabia. Both conventional and Islamic banks will now be subject to the same standards, potentially encouraging deals with other Muslim countries. AAOIFI Chairman Sheikh Ebrahim bin Khalifa Al Khalifa stated that the addition of the Saudi central bank would help foster closer collaboration with the kingdom. Saudi Arabia may now hold ambitions of becoming a global heavyweight in the Islamic finance sector. However, it will face intense competition from Malaysia, South Africa and the UK.

Dubai Economy launches Sharia-compliant #smart #programme

Dubai Economy in partnership with Dar Al Tawreeq has launched a Sharia-compliant smart programme to offer receivables finance to suppliers dealing with government entities in Dubai. Dubai Economy is the first government entity to offer such a financing option to suppliers. Faster payment will support businesses in growing sustainably and maintaining cash flows. Businesses working with government entities can use the smart software developed by Dar Al Tawreeq to ensure liquidity by obtaining financing on their invoices. The programme also provides easy access to on-demand working capital for businesses at no additional cost. The programme was launched by Khalid Al Kassim, Assistant Director General in Dubai Economy and Haitham Al Refaie, CEO of Tawreeq Holdings. The programme emphasises the principle of public-private partnership adopted by Dubai in its evolution into an Islamic Economy Capital.

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