IslamicFinance.de

Gulf emirate Sharjah launched its first sovereign sukuk on Wednesday, a 10-year, 750-million-US-dollar Islamic bond with a 3.764 percent yield. Following a press conference in Sharjah on Wednesday to announce the issue, the government said the bond had been more than 10 times oversubscribed, drawing in 7.85 billion dollars in orders from 250 investors. Regional investors accounted for 50 percent of these, with British investors accounting for 20 percent, other European investors 11 percent, and those from Asia 14 percent. The bond was originally priced at 100 basis points over midswaps, but this was later tightened to 120 points in response to the high demand, before the government finally decided on 110 points. The bond will now be traded on the Nasdaq Dubai exchange and the Irish Stock Exchange.

Gulf countries will be the engine driving the growth of the global sukuk market, according to a report released on Monday by the Dubai Chamber of Commerce and Industry. The report, which is based on data from the UK Islamic Finance Secretariat (UKIFS) and the Malaysia International Islamic Financial Center (MIFC), expected sukuk to play an important role over the next decade in securing funds for a substantial line-up of new projects in GCC countries, particularly in Dubai. The GCC and Malaysia are the traditional hubs for the issuance of sukuk. But the report sees other countries also playing major roles in the spread of the asset class, with emerging Islamic finance markets such as Tunisia, Mauritania, Senegal and Oman having the potential to become major sukuk hubs in the future, it said.

The Council of Saudi Chambers has launched a series of awards for businesswomen with the main objectives to support and encourage Saudi businesswomen to take a more prominent role in the Kingdom’s economy. The awards will highlight achievements in three categories: ‘Leading Young Businesswoman,’ ‘Leading Businesswoman,’ and ‘Productive Families.’ The nominations will be submitted electronically and that no preference will be given to particular geographic regions within the Kingdom. The jury will not include members of the Council, however, in order to ensure the awards are unbiased. Nominations for the awards will closed on September 10. Results will be announced in 2015 to coincide with the Second National Forum.

Private investors from Gulf Arab countries plan to establish the first full-fledged Islamic bank headquartered in the euro zone. The investors aim to launch the venture, named Eurisbank, in Luxembourg during the last quarter of 2014. With initial capital of EUR 60 million, the bank would offer retail, corporate and private banking services, and would open branches in Paris, Brussels, the Netherlands and Frankfurt. In addition to the royal family from the UAE, Eurisbank will be owned by a bank from a country in the GCC and other private investors. The founders of the bank plan to apply for a license in January and expect to obtain regulatory approvals by April.

The Malaysia-based International Islamic Liquidity Management Corp (IILM) has issued its USD 490 million debut sukuk. The three-month Islamic bonds, denominated in US dollars, were fully subscribed. The IILM sukuk received a high A-1 credit rating from Standard & Poor’s, and the IILM has said it plans to increase its issuance eventually to as much as USD 3 billion. The sukuk, priced at 30 basis points over the London Interbank Offered Rate, was auctioned off to seven institutions from around the world. These primary dealers will now be responsible for selling the sukuk on to other Islamic banks and institutions in an effort to create an active market in the instruments.

Islamic financial markets heaved a sigh of relief after dodging the securitisation crisis which hit traditional banks, but the fallout may spark a global regulatory overhaul that could stifle the $1 trillion industry.

In Gaza a new "Islamic National Bank" was started with a capital of USD 20 mn reported Kifah Zaboun in Asharq Al-Awsat. The bank is licensed by Gaza without the consent of the Palestinian Monetary Agency.

The chairman of the bank, Ala Al-Rafati, denied accusations from sources within the Fatah movement which claimed that the bank is affiliated to Hamas saying that the Islamic National Bank is a private institute with a Board of Directors and an Executive Body.