The Peninsula

Call for promoting role of Islamic Waqf

Qatar's Ministry of Awqaf and Islamic Affairs organized a forum on waqf where participants called for the advancement of the waqf to regain its role in the Islamic economy. Qatar has made great steps in the advancement of the waqf, starting with the enactment of the laws regulating it, and taking all measures to ensure the governance and transparency of waqf operations. The four-day forum discussed current vital issues including the responsibility of scholars, the renewal of Islamic jurisprudence, the reform of religious education, and the Islamic waqf and its role in development.

#Sukuk issuance: QIIB weighs market mood

Qatar International Islamic Bank (QIIB) is waiting for the right time to issue its $500m sukuk in the international market. QIIB CEO Abdulbasit Ahmed Al Shaibei said that QIIB is currently weighing market conditions before the issuance of the 5-year sukuk. QIIB is not in a hurry to hit the market, as it does not face any kind of liquidity issues. The lead arrangers of the QIIB issuance will be QNB, Standard Chartered and some Malaysian Banks. The tenor would be 5 years. QIIB issued its first sukuk in 2012 for $700 and it matured in October 2017. The bank’s $2bn Trust Certificate Issuance programme has already been approved by the UK Financial Conduct Authority (the FCA) and is being admitted to the official list of the FCA and the London Stock Exchange. The Programme has been assigned a provisional rating of A2 by Moody’s Investors Service Cyprus.

QIB and INJAZ Qatar sign deal to launch financial literacy programme

Qatar Islamic Bank (QIB) has signed an agreement with the youth organization INJAZ Qatar to sponsor a three-year financial literacy programme for selected high schools and universities in Qatar. The agreement was signed by Bassel Gamal, QIB Group CEO and Emad Al Khaja, INJAZ Qatar CEO. The new "Personal Finance Program" is a five-week training with interactive sessions tailored specifically for high school students and university freshmen. The programme explores ways to earn money and spend it wisely by budgeting, saving, and investing. Courses include the cautious use of credit cards, and protecting your personal finances. Emad Al Khaja said the course was in line with local cultural requirements, as Islamic banking principles are incorporated into the programme.

Islamic banks’ financial profile to stabilise in ’18

According to S&P Global Ratings, the GCC Islamic banks’ financing growth will reach 4-5% in 2018-19, supported by strategic initiatives by the regional governments. Powered by Qatar FIFA World Cup, Dubai Expo 2020 and Saudi Vision 2030, and higher government spending in Kuwait led by Kuwait 2035 Vision, the region’s Islamic banks will continue to expand. Asset growth should remain in the low single digits due to slow economic growth, unless oil prices rebound significantly. However, Islamic banks’ cost of risk will increase due to the adoption of International Financial Reporting Standards (IFRS) 9 and Financial Accounting Standards (FAS) 30. While the volume of sukuk issuance increased in 2017 thanks to jumbo issuances by some GCC countries, issuance volume is currently uncertain for 2018.

QIIB to raise up to $500m via #sukuk; plans roadshows

QIIB plans to raise between $300m-$500m via Sukuk this year. CEO Dr Abdul Basit Ahmed Al Sheibi said the bank got shareholders' approval and will hold roadshows in selected Asian and European markets next month. QIIB’s $2bn Trust Certificate Issuance programme has already been approved by the the UK Financial Conduct Authority and is being admitted to the official list of the FCA and the London Stock Exchange. The Programme has been assigned a provisional rating of A2 by Moody’s Investors Service Cyprus.

Source: 

https://www.thepeninsulaqatar.com/article/27/03/2018/QIIB-to-raise-up-to-$500m-via-sukuk-plans-roadshows

#Qatar’s first Shariah compliant ETF to hit market tomorrow

Qatar’s second listed exchange traded fund (ETF), the Al Rayan Qatar ETF will begin trading tomorrow on Qatar Stock Exchange (QSE). Al Rayan Qatar ETF is the first Shariah-compliant exchange traded fund listed on QSE.
The ETF, issued by Masraf Al Rayan, will track the QE Al Rayan Islamic Index. The Fund will track the performances of 18 stock index of Sharia-compliant Qatari listed equities. Al Rayan Investment is the Fund Manager. HSBC Bank Middle East is the Investment Custodian. According to the prospectus issued by the Fund Manager, the Fund is structured as an open-ended vehicle with a maximum limit of issued capital of QR2bn. The base currency of the Fund is Qatari Riyal and the Fund will only invest in securities denominated in Qatari Riyal.

QIB launches new Investor Relations App

Qatar Islamic Bank (QIB) has launched an Investor Relations app for Android and iOS smartphones. The QIB IR App keeps the investors updated on the latest financial developments related to share prices, stock performance, bank news, financial results and key financial reports. It includes interactive financial screens enabling investors to see QIB’s historical share price and results while providing comparison with peers. As QIB’s investors are global, the app supports 17 languages and enables the display of share prices in different currencies as well. QIB cooperated with Euroland, a leading fintech company, to launch the app and update the information available on the website. All interested parties can download the QIB IR app from the Apple Store or Google Play Store and visit the Investor Relations (IR) section on QIB’s website.

QINVEST records solid revenues for 2017

Qatar's QINVEST announced its end of year results for 2017. Revenues from all business lines amounted to QR368.6m ($101.3m), resulting in operating profit of QR177.3m ($48.7m) and net profit of QR65.9m ($18.1m). The group’s global assets stood at QR4.45bn ($1.22bn) as of 31 December 2017. QINVEST has continued to enjoy a strong liquidity position of $120m as of December 2017. The company has also taken the decision to early adopt IFRS9 accounting standard, reducing future volatility from its reported results. The firm launched two income-generating Ijara funds in 2017 and both were oversubscribed. QINVEST will look to launch the third in the series of the Ijarah funds during 2018 to meet market demand.

The First Investor acquires another #German asset

The First Investor (TFI) Qatar, a subsidiary of Barwa Bank Group has acquired a new office building in Frankfurt. The asset is another unique blend to TFI Euro Income Fund, which was launched in 2017 with sharia compliant stature. Europe continues to provide excellent investment and business environments given low inflation and low interest rate regime. TFI is keen to pursue its investment strategy with the aim to help clients achieve their objectives in a very challenging business environment. By that, TFI will soon launch another UK Income Fund and a US Income Fund together with many investment opportunities during 2018.

#Qatar’s QR25bn worth #sukuk to mature soon

Almost half of Qatar’s outstanding sukuk, worth of over QR25bn, will mature in 2018. With the ongoing growth of Shariah-compliant institutions, new issuances are vital. If no sukuk are issued in the country to replace the maturing ones, Shariah-compliant investors might look to other sukuk investments outside Qatar. According to the joint research of Qatar Financial Centre (QFC), Thomson Reuters and Islamic Research and Training Institute (IRTI), retail sukuk remains an untapped segment in most of the countries in GCC. Qatar can capitalise on selling sukuk to the retail market to promote both the primary and secondary capital market. Financial institutions have been leading corporate issuance in the GCCIn Qatar, Ezdan Holding Group is the only corporation outside financial institutions to issue sukuk. Ijarah continues to be the most popular sukuk structure in Qatar. However, Qatari corporate sukuk have all been issued based on wakalah structure, which has been gaining popularity in the recent years.

#Zakat Fund aid amounted to QR13.6m in December

Qatar's Ministry of Endowments and Islamic Affairs provided zakat to the needy families, the zakat totalled QR13,624,806 last December. The aid was distributed to the beneficiaries, including the permanent aid provided monthly and the irregular aid, which is related to specific needs and emergency conditions. The funds were distributed according to Shariah and after comprehensively researching each beneficiary case and undergoing a social and field research. The cases are then presented to specialised committees, who meet daily and assess the cases, guaranteeing the delivery of assistance to beneficiaries in need.

Islamic finance can play key role in PPP delivery

The fast-growing Islamic finance industry can play a significant role in closing the infrastructure gap through public-private partnerships (PPP). According to the World Bank, shari‘ah-compliant assets have grown exponentially in the past two decades, accumulating nearly $1.9 trillion in assets. The Gulf Cooperation Council has the largest share of shari‘ah-compliant assets, at 42% of the global total, followed by Middle East and North Africa with 30% and the rest of Asia at 22%. Islamic banking and Islamic deposits grew faster than their conventional equivalents in Qatar, UAE, Saudi Arabia, Malaysia, Indonesia and Turkey. Developing countries in Asia will need to invest $26 trillion from 2016 to 2030, or $1.7 trillion per year to eradicate poverty and respond to climate change. The infrastructure needs of Sub-Saharan Africa exceed $93bn annually. Islamic finance instruments like Istisna and Ijarah can be used for large, longer-term financing arrangements, such as financing for power projects, infrastructure and transport equipment.

CEO of Al Rayan Bank receives OBE from Prince William

The CEO of Al Rayan Bank, Sultan Choudhury, has received his Order of the British Empire (OBE) from Prince William. Choudhury was appointed OBE in the Birthday Honours of Queen Elizabeth II, in recognition of his services to Islamic finance. Choudhury was part of the management team that obtained Western Europe’s first authorised Islamic banking licence in 2004. He has since grown the Bank to become the UK’s largest Islamic bank. Al Rayan Bank offers the largest Sharia compliant product range in the UK. The Bank currently has more than more than 80,000 customers throughout the UK, more than a quarter of which it estimates to be non-Muslim.

QINVEST bullish on #Turkey, bets on EM equities

Qatar’s QInvest is set to reinforce its presence in Turkey. Head of Asset Management at QInvest, Dr Ataf Ahmed is seeing huge opportunities in various asset classes in Turkey. In 2016, QInvest acquired ERGO Portfoy, rebranded as QInvestPortfoy and became a leading asset management group in Turkey. The company is also seeing opportunities within Emerging Markets (EM) equities, despite the inherent volatility of the asset class. Inflation is coming in under control and there are a number of positive surprises in economic growth. There is also exposure to broader EM within some of the global funds and mandates, however this represents approximately 10% of total assets across all QInvest funds. In the GCC region businesses have adjusted to low oil prices. According to Ahmed, GCC nations are reinforcing their plans to diversify the economies, moving into sectors like finance, trade and tourism.

QIIB to begin operations in #Morocco with four branches

Sheikh Dr Khalid bin Thani bin Abdullah Al Thani, Chairman of Qatar International Islamic Bank (QIIB) inaugurated the bank’s new branch at the Mall of Qatar. CEO Abdulbasit Ahmad Al Shaibei said the bank is expected to start its operations in Morocco by the first quarter of 2017 with four branches. The lender had signed a joint venture agreement with the Moroccan Bank Credit Immobilier et Hotelier (CIH) for the establishment of a bank in Morocco in December 2015. Under the agreement, QIIB will have 40% stake in the proposed bank. The new QIIB branch is on the ground floor of the Mall of Qatar, considered to be one of the most important shopping destinations in the region.

QIB offers online travel #takaful plan to customers

Qatar Islamic Bank (QIB) has introduced online instant purchase for its new Travel Takaful plan. From now on, QIB’s customers can conveniently purchase Travel Takaful plan through the Bank’s website www.qib.com. The comprehensive plans are offered by Damaan Islamic Insurance Company (Beema) and provide a wealth of coverages. Benefits include compensation in case of lost/delayed baggage, delay in departures, or in the event of lost passports, National IDs and driving licences.
A key benefit is the coverage of medical expenses incurred abroad, including hospital and surgical costs, dental emergencies and other needs that can occur when traveling.

Ezdan’s $500m debut #Sukuk a huge hit

Ezdan Holding Group has priced its inaugural Sukuk transaction in the debt capital markets with a $500m 5-year Sukuk issue. The transaction attracted an order-book up to $837m, with 71 investors participating. Investors from the Middle East took 68% of the issuance, with European investors subscribing for 21% and Asian investors taking 11%. Group CEO Ali Mohammed Al Obaidli said the investors’ strong interest resulted in the order book reaching to $837 mn, around 1.67 times of the offer amount.

QInvest completes debut $200m five-year syndicated facility

QInvest, Qatar’s leading investment group and one of the most prominent Islamic financial institutions in the world, announced the completion of its debut $200m five year syndicated facility.

The facility is in line with the bank’s funding diversification and capital efficiency plan and was arranged by QInvest’s key regional and international relationship banks, namely Masraf Al Rayan, Al Khaliji France S.A. and Natixis. QInvest previously announced that it was named the “Most Innovative Investment Bank from the Middle East” at The Banker magazine’s Investment Banking Awards 2015.

Al Rayan Bank operating income jumps 168pc

Al Rayan Bank, formerly known as Islamic Bank of Britain (IBB), yesterday announced its strongest financial performance to date, resulting in the Bank more than doubling its operating income and posting its first profit since its inception in 2004. The bank’s operating income increased 168 percent to £11.8m in 2014 from£4.4m in 2013. The bank saw 86 percent increase in total customer financing, to £450.3m. Retail deposits increased 59 percent to £509.8m and while wholesale deposits increased 53 percent to £31.7m. Increasing consumer confidence, the continued strength of the housing market and opportunities to provide property finance to the commercial sector as well as to investors in the Gulf has enabled Al Rayan Bank to post its best results to date.

Islamic bank BLME eyes first dividend in ’16

Bank of London and The Middle East (BLME), Britain’s largest stand-alone Islamic bank, aims to pay its first dividend in early 2016 as the lender diversifies its revenue and funding streams. Founded in 2006 by Kuwait’s Boubyan Bank, BLME has not paid a dividend, but its net distributable reserves are expected to reach a sufficient level in 2015, chief executive Humphrey Percy said. BLME, which provides corporate banking and wealth management services, posted a net profit of £4m ($6.6m) in the first half of 2014, up from £1m during the same period last year. This was aided by diversification of revenue streams, with the corporate banking division seeing its total operating income grow 32.5 percent from a year earlier.

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