UAE

ADIB launches 100% capital protected green notes

Abu Dhabi Islamic Bank (ADIB) launched a 100% capital protected smart and green energy equities basket note. The investment note, which matures in 12 months, is open for subscription until July 28, with a 31% participation rate in the upside positive performance. According to Saif Al Keem, Head of Wealth Management & Priority Banking at ADIB, this new note from ADIB focuses on equities that are driving investments in clean technology and manufacturing smart energy on a global scale. There is a growing demand for solutions which can capture and store energy generated from wind and solar power, which provides significant opportunities for the manufacturers of efficient battery technology.

ADIB becomes first bank to join UAEIIC

Abu Dhabi Islamic Bank (ADIB) has joined the UAE International Investors Council (UAEIIC), making it the first bank in the UAE to become a member in the council. ADIB's acting CEO Khamis Buharoon said his bank was committed to the development of Emirati investments, which are critical to economic diversification and the UAE’s global economic competitiveness. The council provides a link between investors, governmental and semi-governmental entities to streamline the investment process. It also serves as a pillar for ensuring the protection of UAE capital abroad through advice, guidance, and logistic support.

Dubai Islamic donates $5.4m to RAK charity

The Dubai Islamic Bank (DIB) has donated Dh20 million ($5.4 million) in Zakat money to the Ras al-Khaimah Charity Association. The association will distribute the funds to those eligible for Zakat though legitimate channels during the month of Ramadan. Abdul Razzaq Al Abdullah, head of the Community Services Department of the DIB, handed the donation cheque to Abdulaziz Al Zaabi, chairman of the charity association. Al Zaabi thanked the DIB’s management for its generous support and considerable donation.

Dubai Islamic Bank sees huge demand for capital raising plan

Dubai Islamic Bank (DIB) has announced a successful closing to its capital raising programme. The issuance of 1.6 billion additional shares at price of AED3.11 per share was announced in April with the aim to boost the core capital of the bank by over AED5 billion ($1.36 billion). According to DIB's Group CEO Dr Adnan Chilwan, growth remains on the horizon as the bank’s financial position has become stronger than ever before with improved asset quality and balance sheet. He added that the capital boost will help maintain the bank's "competitive edge".

Fitch: #UAE Reforms Aid #Sukuk Market; Implementation Still Key

The UAE's Securities and Commodities Authority (SCA) said that issuers of Islamic securities should improve disclosure. Issuers should specify how transaction resources and revenues would be treated if a security were deemed no longer compatible with the provisions of sharia. Issuers should also specify whether the Islamic securities being issued are tradeable under sharia rules. In addition, the SCA set out basic provisions for the composition and responsibilities of sharia boards. The SCA regulation provides a general framework for disclosure around these issues, not a detailed template. Nevertheless, the regulation is one of a number of initiatives that could support the UAE's sukuk market.

GII Islamic REIT acquires $32mln office in Dubai

GII Islamic REIT has acquired an AED 117.54 million two-floor office property in Downtown Dubai developed by Emaar Properties. The property is under a lease agreement with a global professional services firm, whose term will end after three years. The property was sold in consideration of $32 million with gross yields of around 8%. According to Mohammed AlHassan, CEO of GII, this is a high-quality acquisition for the REIT, and is consistent with GII REIT’s strategy to distribute 8% annual dividend to investors net of all costs.

Dana Gas gets wide support from creditors for #sukuk restructuring

UAE energy producer Dana Gas announced that a large majority of holders of its outstanding $700 million sukuk had consented to a proposed restructuring of the notes. The company, which last year refused to repay creditors, reached last month a restructuring agreement after a long and complex legal battle. Following the launch of a tender and exchange offer on May 22, 93.69% of the holders approved the terms of the proposed restructuring, exceeding the minimum required 75% approval threshold.

Dana Gas receives $40mn from #Egyptian government

UAE based natural gas producer Dana Gas has now received almost $90mn so far this year from the North African nation.

Damac Properties lists $400m #sukuk on Nasdaq Dubai

Damac Properties listed $400 million (Dh1.4 billion) sukuk on Nasdaq Dubai. It is the third Sukuk listed by Dubai-based Damac Properties on Nasdaq Dubai, following a $650 million Sukuk listed by the company in April 2014 and a $500 issuance in April 2017. Damac Chairman Hussain Sajwani said Damac continues to expand its development portfolio at home and internationally. Furthermore, the listing on Nasdaq Dubai provides them high visibility around the world and an excellent regulatory framework. Dubai's sukuk listings have now reached a total nominal value of $59.72 billion, the highest amount of any listing venue in the world.

#UAE’s Dana Gas agrees $700m #sukuk restructuring deal

Dana Gas has reached agreement with creditors on restructuring $700m of sukuk. Under the deal with the sukuk holders’ committee, investors who want to exit the instruments can do so in a tender at 90.5 cents on the dollar. Alternatively, investors can exchange the sukuk for new three-year Islamic instruments with a 4% profit rate, while receiving final profit payments that they were owed before the old sukuk matured last October 31. Holders representing more than 52% of $350m of sukuk convertible into equity, and 30% of $350m of non-convertible sukuk, agreed to take no further action before the tender. The deal would require the support of 75% of sukuk holders and would then become compulsory for the rest. Dana’s shares jumped 3.9% on Sunday after news of the deal.

Dana Gas reports 27% increase in net profit in Q1 2018

Dana Gas reported a net profit of $14 million for the first quarter of 2018 compared to $11 million reported during the same period last year. The company attributed the increase in net profit to better realised prices and the positive arbitration settlement with the Kurdistan Regional Government (KRG). First quarter gross revenue reached $120 million compared to $118 million in the first quarter of 2017. During the first quarter of this year, group average production was 65,000 barrels of oil equivalent per day (boepd), down 7% from 69,900 boepd in the first quarter of 2017. Dr. Patrick Allman-Ward, CEO of Dana Gas, said the first quarter 2018 saw Dana Gas continue to perform solidly from both a financial and operational perspective. The company recorded a 27% increase in net profit and higher revenues reflecting higher realised prices.

Dana Gas close to a deal on $700m #sukuk dispute, say sources

Dana Gas has reached an agreement with key holders of $700m of its sukuk to restructure the securities. A committee representing sukukholders agreed to accept an immediate cash payout of 20 cents to the dollar and to roll the rest into a three-year security. According to the agreement, the new security will pay an annual coupon of 4%, bondholders agreed to remove the convertible option in the securities. Dana Gas said it would pay a further 20% of the sukuk after two years and will raise the coupon to 6% if it fails to do so. The majority of sukukholders have agreed to the terms. Investment bank Houlihan Lokey is advising Dana Gas and Moelis & Co is the consultant to the committee of sukukholders.

Sharjah turns to the debt market to raise investment capital

The government of Sharjah is tapping the debt markets to help fund large-scale infrastructure and economic development programmes. On March 8 the emirate closed the book on a dollar-denominated sukuk, valued at $1bn. The 10-year bond was listed on the NASDAQ Dubai with an initial price of 150 basis points over the 10-year mid-swap rate, which then tightened to 135 basis points. Demand was high and the bond was oversubscribed, at around $2.4bn. Book runners were local, regional and global lenders, including the Sharjah Islamic Bank (SIB), Dubai Islamic Bank, HSBC and Standard Chartered. In early February the emirate also became the first Gulf sovereign issuer to tap the Chinese interbank bond market, issuing a RMB2bn ($318.4m) Panda bond. The increased investment is expected to boost GDP growth, with ratings agency S&P anticipating growth of 2.5% per year by 2020.

UBF launches handbook on financial literacy

UAE Banks Federation (UBF) launched its handbook 'Financial Literacy for Individuals'. Financial experts have often noted that consumer debt has been piling up, resulting primarily from a lack of financial knowledge. The 'Financial Literacy for Individuals' handbook highlights various aspects of borrowing, saving and the ways to manage debt efficiently. It highlights the benefits of investment, including financial security, wealth generation, financial preparedness for emergencies, as well as accomplishment of financial objectives. It also introduces the key investment products such as stocks, bonds and mutual funds.

Board of Directors of Awqaf and Minors Affairs Foundation in Dubai Approves 2018-2020 Strategic Plan

Awqaf and Minors Affairs Foundation’s (AMAF) new strategic plan for 2018–2020 has been approved by its Board of Directors. The strategic plan covers 18 main objectives that collectively aim to achieve AMAF’s mission and expand the number of people benefiting from its charity work. The objectives are also aligned with the pillars of Dubai Plan 2021 and the emirate’s Smart Government goals. AMAF Secretary General Ali Al Mutawa said the new strategic plan would implement several initiatives to realize the foundation's primary goal of providing care to minors, protecting and investing their finances, growing endowments, and encouraging society to engage in charity.

Islamic bank retrieves $170 million as it uncovers internal fraud

Abu Dhabi's Al Hilal Bank has uncovered internal fraud worth more than 600 million dirhams ($163 million). The case is now before the courts and includes several bank employees. A total of 38 bank employees from Asian and European backgrounds were arrested last summer, but the name of the bank was not disclosed then. Police and the central bank have been able to retrieve 625 million dirhams of the money taken. Employees allegedly withdrew funds from dormant customer accounts. Money was then transferred from the Al Hilal accounts to bogus accounts before being withdrawn. Al Hilal is a state-owned Islamic lender with total assets worth 42.7 billion dirhams.

Source: 

http://www.globallegalpost.com/big-stories/islamic-bank-retrieves-$170-million-as-it-uncovers-internal-fraud-17248478/

Dubai launches Sharia compliant #crypto assets backed with diamonds

Dubai's Al Kasir Group and Sheikh Ahmed bin Obaid Al Maktoum have jointly initiated the launch of a new crypto asset backed with diamonds. The crypto assets can be redeemed for diamonds of the same amount. Amit Lakhanpal, the founder of Al Kasir Group said this venture offers the convenience of a digital currency with the stability of a traditional asset. The name of the crypto assets unveiled at the event were Al Mas, Al Haqeek and Al Falah. Al Haqeek can be redeemed against precious gems. Al Falah can be redeemed against perfumes. The company plans to open 1,000 physical stores for customers across Gulf, South East Asia, Europe and UK. The crypto assets could be purchased over the counter.

Al Hilal Bank and ADGM to collaborate on knowledge-based initiatives

Al Hilal Bank and Abu Dhabi Global Market (ADGM) have signed a Memorandum of Understanding (MoU) to develop a strategic collaboration. The MoU focuses on the utilisation of ADGM Academy, the newly established financial educational centre. The MoU provides Al Hilal Bank with The Academy’s network of trainers, internationally renowned curriculum and ADGM’s business ecosystem. Al Hilal Bank Senior Managing Director Sultan Al Mahmood said this partnership represents a unique learning and development opportunity for employees to develop a best practice financial education. The signing ceremony took place on Monday, 16 April 2018 at the ADGM Academy, located on Al Maryah Island. It was attended by H.E. Ahmed Ali Al Sayegh, Chairman of ADGM and H.E Khalaf Abdulla Rahma Al Hammadi, Vice Chairman of Al Hilal Bank.

#FinTech Hive programme now includes Islamic finance

FinTech Hive at DIFC has announced that its upcoming programme will expand its themes to include insurance, Islamic finance, and regulatory technology services. This year’s cycle will welcome First Abu Dhabi Bank, Arab Bank, and Noor Bank as new Financial Institution partners, along with returning partners such as Abu Dhabi Islamic Bank, Citigroup, Emirates Islamic, Emirates NBD, HSBC, Mashreq, Standard Chartered, UAE Exchange and Visa. The participating Financial Institutions will partner with startups in a wide-ranging 12-week mentorship and networking programme. FinTech Hive at DIFC will also feature the Dubai Islamic Economy Development Centre (DIEDC) as a strategic partner again this year. In addition, FinTech Hive at DIFC will collaborate with Accenture’s FinTech Innovation Labs to connect regional innovators to the international FinTech ecosystem.

Green developments in Islamic finance

Increasing environmental awareness worldwide has seen a marked rise in the appetite for green bonds. Malaysia has been the market leader in the issuance of Green Sukuk, with guidelines issued in 2014 for socially responsible investment (SRI). These set out that the proceeds can be used to preserve the environment and natural resources, conserve the use of energy, promote the use of renewable energy and reduce greenhouse gas emission. Malaysia launched the world’s first Green Sukuk on 27 June 2017. The UAE's Green Growth Strategy was launched in 2012 to become a global hub and a successful model for the low carbon green economy. There will most certainly be challenges, like drafting of documentation acceptable to governments, investors and Shari’ah scholars. There is increasing appetite for environmentally friendly products and considerable potential in the UAE.

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