UAE

ADGM’s aviation finance structure utilized in #sukuk issuance

Abu Dhabi Global Market (ADGM) has facilitated the transaction of a 12 year Sukuk issued by Natixis and Noor Bank. It is the first instance where an ADGM structure has been used specifically to hold aircraft assets for issuing Sharia compliant bonds. The transaction follows the successful completion of the first aviation sale and leaseback transactions arranged by Natixis in ADGM in late 2016 and the registration of three international aviation leasing companies earlier this year. ADGM aims to position Abu Dhabi as an international aviation finance hub to deliver bespoke solutions for both Islamic and Conventional transactions.

#UAE Startup Launches First-Ever Sharia-Compliant Islamic #Crypto Exchange

UAE-based Adab Solutions has announced the launch of the First Islamic Crypto Exchange (FICE). An in-house Sharia Advisory Board (SAB) made up of independent international Sharia experts will be in place to ensure that the exchange is in compliance with Sharia law. In April 2018, Mufti Muhammad Abu Bakar declared that bitcoin is Sharia-compliant, and as such can be used by Muslims. The move potentially opens the cryptocurrency space to a global market of over 1.8 billion Muslims. Adab Solutions is preparing to launch the project ICO in September and tokens will be used as utility keys to access the exchange platform’s services. All commissions within the FICE will be paid exclusively in Adab tokens.

Abu Dhabi Islamic Bank gets nod for $270m rights issue

Shareholders of Abu Dhabi Islamic Bank (ADIB) have approved proposal for a rights issue of AED1 billion ($270 million) by offering 464 million new shares. Shareholders also approved the issuance of a $750 million sukuk and the repayment of its $1 billion sukuk issued in 2012. Khamis Buharoon, ADIB vice chairman and acting CEO, said the bank will continue to focus on expanding its retail business, providing market-leading digital banking services, while capturing opportunities across corporate, transaction and correspondent banking. ADIB reported a 3% increase in net profit for the first half of 2018, which reached AED 1.16 billion.

Abu Dhabi Investment Council increases Al Hilal Bank's capital

Abu Dhabi Investment Council has increased the share capital Al Hilal Bank by AED 400 million. Al Hilal Bank's CEO Alex Coelho said this move will allow the lender to meet the growing demand for Islamic finance by investing in areas with the greatest prospects. The Central Bank of the UAE (CBUAE) raised this year’s economic growth forecast to 2.7% from its previous projection of 2.5% while non-oil GDP growth is forecast to increase to 3.9% this year from 3.4% in 2017.

ADIB’s Shareholders approve ADIB’s capital proposal to support growth

Shareholders of Abu Dhabi Islamic Bank (ADIB) have approved proposal for a rights issue of AED 1 billion to raise the Paid and Issued Share Capital through a tradeable rights issue of 464 million new shares. Shareholders also approved the issuance of USD 750 million (AED 2.75 billion) perpetual Tier 1 sukuk, and the repayment of its USD 1 billion (AED 3.67 billion) sukuk issued in 2012. The capital plan has been developed to support the bank’s continued growth and its objectives in achieving its strategy while meeting regulatory requirements.

Abu Dhabi National #Takaful Co. PSC announces combined net profit of AED 48.6 million for H1 2018 achieving a growth of 19% in profit

Abu Dhabi National Takaful Co. PSC (ADNTC) released its financial results as at end of second quarter on 30 June 2018. The company announced a combined net profit of AED 48.6 million, achieving a growth of 19% compared to AED 41 million for the same period last year. The technical profit reached AED 60 million showing an increase of 9% compared to AED 55.2 and the underwriting profit reached AED 36.4 million showing an increase of 6% compared to AED 34.2 million for the same period last year. According to CEO Osama Abdel Raouf Abdeen, the underwriting profit of AED 36.4 million for the first half of 2018 is an indication of the company's credibility as the leading takaful operator in the region.

How Lombard Odier got into the Islamic investment space

Lombard Odier has launched a full suite of Shari’ah-compliant investment solutions. Arnaud Leclercq, Limited Partner at Lombard Odier Group, said the offering began as a bespoke creation for one client six years ago, it has grown from a $10 million to in the hundreds of millions, primarily for investors in the Middle East. The investments are a mix between Sukuk and equities. Equities are chosen using a combination of MSCI’s Islamic Index and Lombard Odier’s inhouse experts. The goal is to reach $1 billion in total Islamic investment the next three to five years. Lombard Odier plans to increase its presence in the Middle East, with an office in Abu Dhabi for the coming year currently in the planning stages and a partnership with a Saudi firm currently in the works.

AAOIFI adoption set to standardise #UAE Islamic finance

The Central Bank of the UAE announced that the country's Islamic finance industry will be required to comply with AAOIFI Shariah standards from September 1. Islamic finance products in the UAE have historically adhered to AAOIFI standards, but the formal move to adopt AAOIFI standards will benefit the Islamic finance industry not only in the UAE. According to Dar Al Sharia CEO Mian Nazir, this move will facilitate standardisation of the Islamic finance industry across markets. These regulations are expected to grow consumer confidence and benefit the sukuk market as well. Dar Al Sharia is holding workshops to help relevant stakeholders, from internal Shariah control committee members to lawyers, develop an understanding of AAOIFI’s Shariah standards.

Dana Gas issues new #sukuk, drawing earlier dispute to a close

Dana Gas has completed refinancing its $700 million sukuk which has been sized down to $530m. The issuance of the debt instrument had been completed and listed on the Euronext Dublin, previously known as the Irish Stock Exchange. Dana has paid $235m in redemptions, profit payments and early participation fees bringing an end to its long legal battle. Dana Gas CEO Patrick Allman-Ward said the new sukuk represented a fair consensual deal for all sukuk holders. The new sukuk will have a three-year life, maturing in October 2020, with a new profit rate of 4% per annum. Legal proceedings in courts in the UK and UAE have been brought to an end by all parties. Last month, Dana Gas received about $44m in dividends from Kurdistan Region of Iraq for the first half of the year and expected its output from operations there to rise by 25% in the third quarter.

Awqaf And Minors Affairs Foundation Adopts #Endowments Investment Policy 2018-2021

The Awqaf and Minors Affairs Foundation (AMAF) has adopted a three-year Endowments Investment Policy. The board meeting was attended by senior board members who reviewed the achievements of AMAF’s newly appointed Charity Work Committee, Investment Committee, and Endowment Development Committee. In addition, it also reviewed the executive regulations of the Dubai Waqf Law No. 14 of 2017 (Dubai Waqf Law) and Dubai Law No. 9 of 2007 establishing Awqaf and Minors Affairs Foundation. The Charity Work Committee presented the financial budget for charitable work in 2018, which has exceeded AED74 million to date. Philanthropic projects during the Year of Zayed included the voucher initiative for needy families worth AED700,000, the AED150,000 Umrah initiative, and the AED450,000 Fund for Cancer Patients. AMAF also joined the project of "Modon Al Khair" to contribute AED500,000 towards the construction of homes for low-income people.

Islamic Banks' Assets Surge To AED565 Billion In H1 2018

Assets of Islamic banks operating in the UAE amounted to AED565 billion by the end of H1 2018, a 6.7% growth of AED35.5 billion over the corresponding period in 2017. The assets of Islamic banks account for 20.55% of total bank assets in UAE, valued at AED2.749 trillion, by the end of June 2018. The value of credit provided by Islamic Banks during the first half of the year surged to AED367 billion, a growth of 5% against the same period in 2017. Loans and credit facilities provided by Islamic banks made up 22.6% of total loans. Deposits held by Islamic banks amounted to AED392.4 billion, making up 23.3% of total deposits held by UAE banks, estimated at around AED1.7 trillion by the end of June.

Physical Gold #Fund SP announces Shariah compliance

Physical Gold Fund SP (PGF) has been endorsed as Shariah-compliant by Amanie Advisors. Amanie Advisors issued the fatwa in accordance with the Shariah Standard on Gold set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and developed in cooperation with the World Gold Council. According to Alex Stanczyk, managing director of Physical Gold Fund SP, this fund is unique in the Mena region and is a perfect fit for the values expected by Islamic investors.

GFH fully settles $200m #sukuk

Gulf Finance House (GFH) has fully settled its $200 million (Dh734 million) sukuk, which was originally drawn in 2007. The facility, which had its final maturity in July 2018, has now been settled with a recent payment of an outstanding amount of $34 million. GFH posted a 9% increase in its consolidated net profit for the first quarter to March. The total net profit rose to $36.89 million (Dh135.5 million) in the three months to March up from $33.55 million in the first quarter of 2017.

DIB donates Dh3m to Al Jalila Foundation

Al Jalila Foundation has received a donation of Dh3 million from Dubai Islamic Bank (DIB) to support it’s Aawen (treatment) programme. Since its inception in 2013, Al Jalila Foundation has supported 467 patients from 36 nationalities, including 190 children, and invested Dh34 million to provide relief to patients who suffer from chronic illnesses. The treatment costs for patients, newborn to 90 years of age, have ranged from to Dh20,000 to Dh250,000 per individual.

ADIB plans a Dh1.16bn rights issue and tapping the #sukuk market

Abu Dhabi Islamic Bank (ADIB) plans to maintain growth and pay off some of its old debt. The board of ADIB is recommending to increase the bank’s issued capital through more than a Dh1.16 billion rights issue. The proposed deal includes issuing 464 million new shares at a nominal face value of Dh1 per share. The bank’s board has also proposed the issuance of a $750m (Dh2.75 billion) perpetual tier 1 sukuk, and the repayment of its $1bn hybrid tier 1 sukuk issued in 2012. ADIB’s vice-chairman Khamis Buharoon said the pace of the bank's growth has been fast, increasing its number of customers to 1 million in the UAE, nearly double the number it had five years ago. He noted that the bank was raising capital to maintain its growth trajectory, while maintaining a capital buffer.

#UAE private wealth forecast to grow to $590bn by 2022

According to the Boston Consulting Group (BCG), private wealth in the UAE saw positive growth between 2016 and 2017 of 8% and this growth is projected to remain steady over the next five years. Private wealth is expected to reach $590 billion in investable assets by 2022. The main drivers were the bull market environment in all major economies and the significant strengthening of most major currencies against the dollar. While offshore share is expected to decline over the next five years from 30% in 2017 to 24.1% in 2022, it will continue to grow to reach $140 billion in the UAE in the same period. The report also showed that personal wealth in the Middle East rose by 11% to $3.8 trillion in 2017, a significant increase compared with the rate for the previous five years.

Noor Bank rolls out Noor Wealth

Noor Bank has launched Noor Wealth, a Shari’ah-compliant platform offering tailored product mixes. Noor Wealth targets customers with a minimum of AED 367,300 of assets under management or a minimum salary of AED 50,000. The bank offers mutual funds among other 10 lenders in the GCC and it also offers access to fixed-income products through its Sukuk platform and Islamic structured products. Noor Wealth collaborates with Knight Frank to offer global physical real estate services for its customers. Mufazzal Kajiji, Head of Retail Banking at Noor Bank, said that Noor Wealth currently serves clients from 10 countries and is in the process of expanding.

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.

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