UAE

Bank of Sharjah to manage, arrange Dh2B Sharjah government #sukuk

The Sharjah government has raised Dh2 billion through sukuk to support its economy, corporates, SMEs, individuals and banking sector during the coronavirus crisis. Bank of Sharjah was appointed as sole lead manager and arranger for the issuance. The certificates will pay a profit rate of 1.5 per cent and mature in May 2021. Sharjah also listed $200 million sukuk on Nasdaq Dubai in March 2020. S&P Global Ratings lowered Sharjah's outlook to negative last month and affirmed its long-term rating at BBB, the second-lowest investment grade.

Abu Dhabi Islamic Bank PJSC CEO steps down, COO takes charges as caretaker

Abu Dhabi Islamic Bank has announced the resignation of its Chief Executive Officer, adding that the Chief Operation Officer (COO) will take over as caretaker. The bank did not provide reasons for Mazin Manna’s resignation. COO Sandeep Chouhan has been appointed to serve in the capacity until appointment of a new chief. The resignation occurred following a report of decrease in net profit Q1, from AED600.3 million to AED269.7 million same period last year.

Emirate of Sharjah starts marketing 7-year dollar #sukuk - document

Sharjah began marketing a seven-year dollar denominated sukuk. It comes as several governments in the Gulf seek to bolster their finances to face the economic fallout from the coronavirus pandemic and a slide in oil prices. Sharjah gave an initial price guidance of around 275 basis points over midswaps for the sukuk. Sources said the issuance would likely be between $750 million and $1 billion.

Higher Shari’ah Authority at CBUAE hosts 2nd meeting of Centralised Shari’ah Authorities

The Higher Shari’ah Authority at the Central Bank of the UAE, CBUAE, has hosted the 2nd meeting of the Centralised Shari’ah Authorities to discuss the economic implications of the COVID-19 pandemic. The meeting was held via a video conference and was attended by more than 40 participants from the members. The meeting discussed the Shari’ah parameters set to strengthen the economic and financial support scheme adopted by the governments and regulatory authorities in their respective countries. The attendees also discussed several matters with regards to challenges and Shari’ah treatments.

Ziina launches #UAE's first social P2P payments solution

Ziina, the UAE's first licensed social peer-to-peer (P2P) payment application, has raised a pre-seed round of $850,000. The application will help the UAE bank account holders to use their smartphones to send and receive money as easily as sending a text message. Ziina is the latest addition to the Middle East's fintech ecosystem and is capitalising on the region's rapid adoption of fintech friendly regulation. Ziina's cofounders are Faisal Toukan, CEO, Sarah Toukan, Chief Product Officer, and Andrew Gold, VP Engineering. They are joined by a strong advisory board including serial entrepreneur Samih Toukan, and Emre Tok. The founding team recently launched the start-up's operations out of Dubai's In5 tech start-up incubator.

Dubai Islamic Bank donates AED16 million to Zakat Fund projects

The Dubai Islamic Bank donated AED16 million to the Zakat Fund. Abdullah Aqeeda Al Muhairi, Secretary-General of the Zakat Fund, praised the bank for its donation as well as for its positive humanitarian and charitable role in improving the life of needy people. He also called on Islamic banks and institutions to follow the initiative of the Dubai Islamic Bank to provide zakat money to deserving groups and help the Zakat Fund achieve its goals.

First sharia crypto exchange opens in #UAE

A new sharia-compliant crypto exchange has announced plans to launch in the UAE. Sustain Exchange hopes to offer sharia-complaint and ethical services to give Muslims a space in which to invest in the crypto market. An initial coin offering is planned for June and security tokens issued during the offering will serve as the key to accessing the exchange’s services. Sustain Exchange will introduce an independent sharia advisory to maintain compliance with sharia principles. To this end it has appointed an Islamic fintech scholar to its board, Mifti Faraz, director of Amanah Finance Consultancy.

NMC Health administrators are said to have started selling off assets

Administrators of NMC Health have started selling off assets of the troubled Middle Eastern hospital operator as they seek funds to pay back creditors. Administrators are planning to start a sale process for NMC’s lucrative fertility business as soon as June or July. They are considering eventually selling most of the company’s assets, potentially including the flagship hospital business, which is the biggest private health-care provider in the Middle East.

NMC CFO and family left UAE on Indian repatriation flight: reports

NMC Health is at the centre of a multi-billion dollar fraud investigation, but its chief financial officer (CFO) Suresh Krishnamoorthy has left the UAE and returned to India. Krishnamoorthy stepped down as CFO in 2017 when Prasanth Manghat took over as the NMC CEO, but was reinstated in February this year when the company's financial troubles came to light. Abu Dhabi Commercial Bank (ADCB), which has $981 million worth of exposure in the healthcare provider, successfully applied to UK courts to have the company placed into administration and NMC has subsequently been removed from the London Stock Exchange.

Unified legislative framework for Islamic finance launched

Sheikh Hamdan Bin Rashid Al Maktoum announced the launch of a new initiative to create a unified global legal and legislative framework for the Islamic finance sector. The framework is set to enable the Islamic economy to expand its reach and responds to calls for greater standardisation within the sector. A memorandum of understanding has already been signed between Dubai Islamic Economy Development Centre (DIEDC) and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Furthermore, Norton Rose Fulbright has been recently appointed to provide legal advice in drafting the code for the global framework.

Abu Dhabi based NMC Health’s trading arm sees major job cuts

More than 300 staff members at NMC Trading have been laid off and more are likely to follow. It was on April 9 that NMC was placed under administration on the UK High Court’s orders, following a request submitted by ADCB, the UAE bank with the highest loan exposure to the company. Letting go of its trading division could bring in some much needed funds for NMC Group. It's also part of the strategy to focus exclusively on core operations made up of its hospitals and clinics.

UK court's intervention is worst-case scenario, says NMC Health chairman

According to hospital operator NMC Health and its Executive Chairman Faisal Belhoul, getting placed in administration by a UK court order would be the "worst-case scenario" for the company’s future. The threat of coming under administration is a live one after Abu Dhabi Commercial Bank had filed a request with a UK court for NMC to be placed under a joint administration. ADCB – which has an exposure of Dh3.6 billion to NMC and affiliates - filed its request in a UK court because NMC Health is listed on London Stock Exchange. According to Belhoul, international institutional investors are keen to take an exposure in NMC despite its current predicament.

NMC board, management should be held accountable: Al Ghurair

According to Abdulaziz Al Ghurair, chairman of the UAE Banks Federation, the board and management of NMC Healthcare should be held accountable for the financial irregularities. It is estimated that more than 80 local, regional and international banks have exposure to healthcare firm. The UAE banks last week announced nearly Dh10 billion exposure to NMC Healthcare. Abu Dhabi Commercial Bank has the highest exposure to NMC at Dh3 billion. Dubai Islamic Bank and its subsidiary Noor Bank announced Dh2 billion exposure while Emirates NBD and Emirates Islamic Bank disclosed Dh747.34 million exposure. NMC recently revised its debt position to $6.6 billion, well above earlier estimates. London's High Court last week placed hospital operator NMC Health into administration, on the application of Abu Dhabi Commercial Bank.

Abu Dhabi Islamic Bank Completes Trade Finance Distribution Transaction Using Blockchain

Abu Dhabi Islamic Bank (ADIB) has successfully completed a secondary market transaction using TradeAssets, a blockchain-powered trade finance e-marketplace. TradeAssets developed its blockchain-powered trade finance platform with an initial focus on secondary market transactions. In 2019, the company launched the platform with 25 banks, most of them in emerging markets such as Bangladesh. Currently, the platform has over 150 members with many of them being from the Middle East.

Alvarez & Marsal administrators to ailing NMC healthcare group

Richard Fleming, Mark Firmin and Ben Cairns of Alvarez & Marsal Europe have been appointed joint administrators of Abu Dhabi-based NMC Health. In February the company uncovered $335m (£258m) in previously undisclosed loans to related parties, and a further investigation by PwC unearthed over $2.7bn (£2bn) in undisclosed debt. The administrators have replaced the NMC board, stating that an immediate priority is to implement corporate governance changes in the group. In February, the Financial Conduct Authority launched an investigation into NMC's activities after the company's shares were suspended from trading on the London Stock Exchange.

ADCB to lead NMC Health lenders group formed to hold talks on $6.6bn debt

NMC Health's biggest creditors have set up a coordinating committee, taking a major step toward restructuring the $6.6 billion debt of the hospital operator. The company asked Abu Dhabi Commercial Bank (ADCB) to chair a coordinating committee of debtholders. Deloitte and Clifford Chance have been appointed to advise the committee while Lazard will work with its chair. Abu Dhabi Islamic Bank, Dubai Islamic Bank, Barclays and Standard Chartered will join Abu Dhabi Commercial Bank to form an initial steering group that will lead talks with NMC. NMC is being run by administrators Alvarez & Marsal after succumbing to creditor demands. NMC Health was suspended in February amid allegations of fraud. It has revealed more than $4 billion of undisclosed borrowings, pushing its total debt to $6.6 billion.

Administrators of NMC Health Revamp Company's Board

The administrators of troubled hospital operator NMC Health have announced a new board of directors. Previous board members, including executive chairman Faisal Belhoul have been removed. The move came after London's High Court on Thursday placed NMC Health into administration, on the application of one of its biggest lenders, Abu Dhabi Commercial Bank (ADCB). Michael Brenden Davis remains as interim chief executive officer and chief operating officer, but does not sit on the company's board.

#Oman's Taageer Finance and Sohar disclose 4.67m rial exposure to NMC

Oman's Taageer Finance and Sohar International Bank disclosed they have exposures to NMC Health. Taageer has a 1.23 million rial (Dh11.72m) exposure to NMC, while Sohar International Banke's exposure stays at 3.45m rials. Last week NMC was placed in administration by a UK court on the application of one of its biggest lenders, Abu Dhabi Commercial Bank. The joint administrators from turnaround advisory firm Alvarez & Marsal will take immediate control of NMC Health and will work on behalf of all stakeholders. In February, the UK’s Financial Conduct Authority launched an investigation into NMC's activities after the company's shares were suspended from trading on the London Stock Exchange.

NMC Health set for administration as negotiation attempts with creditors fail

Abu Dhabi's biggest healthcare company is heading for administration as the company revealed it had been unable to secure an agreement on its debt. NMC Health has made a series of damaging disclosures in the past few months after a report by activist investor Muddy Waters in December alleged it inflated cash balances, overpaid for assets and understated its debt. Following the disclosures, chairmen and executives departed from the firm. According to a disclosure from Abu Dhabi Commercial Bank (ADCB), NMC Health owes money to more than 80 local, regional and international lenders. ADCB said it expects joint administrators to launch a full, transparent and independent investigation into the company's affairs and the misrepresentation of its finances.

NMC’s Deepening Debt Crisis Heads to a Showdown in U.K. Court

The crisis surrounding NMC Health widened, as the struggling hospital operator rejected a call to be put into administration and United Arab Emirates’ banks disclosed more than $2 billion of exposure. The next chapter opens Thursday when a U.K. court is scheduled to hear Abu Dhabi Commercial Bank PJSC’s bid to place NMC into the hands of administrators. With a market value of $2.4 billion and total debt of $6.6 billion, NMC now faces an investigation by the U.K.’s Financial Conduct Authority.

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