Zawya

#UAE and #Saudi women control assets worth $326bln - BCG

Women’s wealth in the Middle East is expected to grow to $1.1 trillion from the current $786 billion during the 2019-2023 period. As of 2019, more than 40% of women’s wealth in the Middle East is concentrated in the UAE and Saudi Arabia where women control assets worth $102 billion and $224 billion. According to Boston Consulting Group (BCG), women’s wealth is projected to grow at a compound annual growth rate (CAGR) of 8.3% to $140 billion in the UAE and of 5.1% to $273 billion in Saudi Arabia by 2023. Women are likely to set the region’s wealth management trend, if asset managers target this market segment as a business opportunity and personalise their approach. Women are more likely than men to invest on the basis of their values, favouring funds that perform well but also create a positive impact, as opposed to investing solely for performance.

The Islamic Corporation for the Development of the Private Sector signed a collaboration MoU with FINTERRA Pte Ltd

Mr. Ayman Sejiny, the CEO of The Islamic Corporation for the Development of the Private Sector (ICD) and Mr. Satesh Khemlani, the Managing Director of Finterra, signed a Memorandum of Understanding to achieve sustainable business growth. Both organizations have common beneficiaries and share similar social impact development goals. The collaboration with Finterra is based on its highly powered blockchain solutions for Islamic social finance under the names of SadaqahChain®, WAQFChain® and ZakatChain®. The MoU was digitally signed during a virtual signing ceremony. The parties will explore opportunities of blockchain in OIC member countries in close collaboration with national licensed crowd-lending/crowd-funding operators.

AAOIFI concluded first global Islamic Finance Virtual Forum on COVID-19

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) organized its first Islamic Finance Virtual Forum on "Covid-19 Economic Implications, Islamic Finance and the Way Forward". It was organized in collaboration with Islamic Research and Training Institute (IRTI), College of Banking and Financial Studies (CBFS) and Minhaj Univeristy. The forum's three sessions were attended by more than 1,200 people while thousands more joined by live streaming on multiple online channels. Shaikh Mufti Taqi Usmani, Chairman of the AAOIFI Shari’ah Board delivered his keynote speech which highlighted the importance of riba-free system. Distinguished session panelists emphasized that the power of ideas has a greater impact compared to the power of size. It was suggested that a long term socially-driven Waqf sukuk would be a good idea for a sukuk issuance and called for a collective effort to work out a revenue generation aspect of it.

#Saudi Arabia raises $1.53bln in local sukuk -statement

Saudi Arabia has raised 5.755 billion riyals ($1.53 billion) in sukuk. The first tranche of the sukuk issue is 3.8 billion riyals, and the total tranche size is 6.549 billion, maturing in 2025. The second tranche has a size of 1.95 billion riyals, and a total tranche size of 10.296 billion, maturing in 2030.

GCC banks face 'earnings shock' from lower oil price, Covid-19

GCC banks will see significantly reduced revenue as they face an earnings shock from the oil price drop and Covid-19 pandemic. S&P Global Ratings credit analyst Mohamed Damak says the coronavirus will take a toll on important sectors such as real estate, hospitality, and consumer-related, but these will be relatively short lived and he forecasts a gradual recovery in nonoil activity from third-quarter 2020. In his view, if the recovery takes longer than expected, GCC banks could feel greater pressure. In March, S&P revised its outlooks of some UAE banks including First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Mashreqbank, Sharjah Islamic Bank and National Bank of Fujairah to negative. Most central banks in the GCC have already come up with stimulus packages to help the banking system withstand the economic fallout. The Central Bank of the UAE on Sunday doubled the size of its stimulus package to Dh256 billion.

Saudi's Al Moammar Information Systems signs $77mln Islamic loan

Saudi Arabia’s Al Moammar Information Systems (MIS) signed an Islamic facility agreement with Riyad Bank for 290 million Saudi riyals ($77.15 million). The revolving facility will be renewable every year. MIS’s listing on Tadawul last year marked the first listing for a company from the IT sector on the Saudi bourse. The company reported a net profit after zakat and tax of 76 million riyals in 2019, compared to 64.5 million riyals in 2018. Revenues rose to 997.5 million riyals last year, compared to 886.2 million riyals in 2018.

Alwaleed Philanthropies allocates $30mln to fight COVID-19

Alwaleed Philanthropies has allocated $30 million to a variety of diverse initiatives to battle against COVID-19 in collaboration with a variety of partners. The fund, chaired by Prince Alwaleed Bin Talal Bin Abdulaziz Al Saud, includes an additional $20.6 million on top of $9.4 million of existing funds, which have been reallocated for the fight against COVID-19. Continuing to support the Middle East and North Africa, the fund includes a significant allocation towards initiatives including allocation to UN-Habitat to improve water, sanitation and hygiene in the most vulnerable communities. Alwaleed Philanthropies will be working with the Gates Philanthropy Partners to fund a number of health projects to accelerate the development of therapeutics to protect vulnerable populations.

Saudi Arabia raises $1.48bln in local #sukuk -statement

Saudi Arabia has raised 5.55 billion riyals in sukuk. The first tranche of the sukuk issue has a size of 1.3 billion riyals, and a total tranche size of 2.523 billion riyals, maturing in 2027. The second tranche has a size of 4.25 billion riyals, and a total tranche size of 8.238 billion riyals, maturing in 2035.

#Egypt FRA eyes 5 #sukuk offerings in 2020

Egypt's Financial Regulatory Authority (FRA) plans for five new sukuk offerings worth EGP 5 billion this year. In early April, FRA approved issuing the first-of-kind sukuk in favor of the Arab Company for Projects and Urban Development, a subsidiary of TMG Holding (TMGH). The total value of this Islamic financing facility is estimated at EGP 2 billion. Additionally, Sarwa Capital has been granted in July 2019 the country’s first sukuk issuer license by FRA. This gives Sarwa the green light to issue Islamic bonds through its sukuk arm, Sarwa Sukuk Company.

Global #sukuk issuance down 32% in Q1 2020, recovery expected in Q3

The volumes of the global issuance of sukuk have dropped 32% in the first quarter of this year against Q1 2019, and a further decline is expected in Q2 2020, as several countries implement measures to control the spread of COVID19. Most government issuers of sukuk are likely to turn to conventional bond markets as they grapple with the impact of weaker economic environments and tight budgets. S&P Global Ratings identified two major trends for sukuk in 2020 - defaults and slowdown of the innovative sukuk issuance. Given the shocks to the economic environment and rapid change in market conditions, the advisory firm expects credit risk to increase sharply.

#Egypt approves first issuance of sukuk by Talaat Mostafa subsidiary

Egypt's Financial Regulatory Authority approved the first issuance of sukuk worth 2 billion Egyptian pounds ($127 million) by a subsidiary of Talaat Mostafa Group. The sukuk, issued by the subsidiary Arab Company for Projects and Urban Development, will be available for trading and for expedited payment but will not be transferable for shares. The new sukuk period is for 57 months, up to the end of 2024. Talaat Mostafa Group is Egypt's largest listed real estate developer.

Family Bank in #Bahrain opens Seef headquarters

Bahrain's Family Bank has opened its new headquarters in the Diplomatic Area of Manama. The ceremony was attended by the bank’s board members, chief executives of contributing banks and economic personalities. The establishment of the Family Bank as a first social bank in Bahrain in 2010 aimed to boost the social security network by the activation of a micro loan-giving mechanism. The bank was set up through partnership between the Labour and Social Development Ministry, the Royal Charity Organisation, the Bank of Bahrain and Kuwait (BBK), Ithmaar Bank, Ahli United Bank and Kuwait Finance House (KFH). It won Shaikh Mohammed bin Rashid Al Maktoum’s award for supporting youth projects in 2013.

#UAE's Gulf Islamic Investments buys New York office building

Gulf Islamic Investments (GII) has acquired a property in New York, which brings the firm’s US portfolio to more than $230 million. The property is an office building in White Plains, Westchester County, with a leasable area of 220,000 square feet, and is currently over 90% occupied by more than 30 tenants. It is also strategically located, as it’s close to the Federal, Supreme, District and Country courthouses in New York. According to CEO Pankaj Gupta, the global economy continues to signal a low-interest rate regime for the foreseeable future, hence, GII sees that such long income assets can deliver high single-digit returns. He added that GII was exploring such opportunities in Paris real estate market as well, with the view of taking advantage of the impact of Brexit.

Saudi's Fawaz Abudulaziz Alhokair secures $800mln Islamic finance

Saudi-listed retail group Fawaz Abdulaziz Alhokair Company has signed a Murabaha facility and a revolving credit facility agreement with a syndicate of Saudi banks. The $800 million debt facility is composed of two tranches, including a $650 million Murabaha to be fully utilized in refinancing existing debt, and a $150 million revolving standby credit facility to finance the business’ operational and expansion needs. The Murabaha matures in 7 years, while the revolving credit facility’s tenure is 3 years. The banks participating in the loan agreement are: Al Rajhi Banking and Investment Corporation, the National Commercial Bank, Samba Financial Group, Arab National Bank, Mashreqbank, Abu Dhabi Islamic Bank.

$26mln Islamic financing for #Oman copper-gold project

The Omani-Australian partnership Al Hadeetha Resources has secured funding to the tune of RO 10 million from Alizz Islamic Bank, which will support the financing of the formers copper-gold project. Australian-based mining firm Alara Resources is a majority investor in the project, which centres on the commercialization of an estimated 16 million tons of copper. These new financing arrangements signify another key milestone for the flagship Al Hadeetha Copper-Gold project in Oman. The funds will be used to procure major equipment for the copper processing plant at Washihi. Meanwhile, Al Hadeetha Resources has named Chinese state-owned enterprise China National Geological & Mining Corporation (CGM) as its Engineering Procurement Construction contractor. The project is expected to come into operation by Q1 2021.

Al Baraka Bank leveraging a robust global network

In this interview Adnan Ahmed Yousif, President & Chief Executive of Al Baraka Banking Group reviews the group’s 2019 results. Overall, Al Baraka Bank maintained its healthy financial performance despite the lower-income. However, Al Baraka's adherence to its conservative approach to set aside hedging provisions for all its units resulted in a 14% decrease in net income attributable to shareholders during the third quarter. In 2019 the bank launched the Al Baraka Global API website, a step towards innovation in open banking. Al Baraka Banking Group also inaugurated a new fintech company which focuses on e-payments ‘alneo’ in Turkey through its Turkish subsidiary. The bank’s units opened six new branches, taking the total number of branches to 703. Yousif is planning to enter new markets in the coming period through the presence in the Indonesian and Chinese markets, expansion in East Asia, as well as Africa.

More hope for #sukuk market growth: S&P

Global Sukuk issuances witnessed a 25.6% hike last year from 2018 numbers, with foreign currency issuances leaping 20.8%. This was driven by high levels of liquidity in Indonesia, good performance in Malaysia, Turkey's efforts to tap all available financing sources and the return of some GCC issuers to the market. According to S&P, total Sukuk issuance for 2020 is expected to reach $160 billion-170 billion this year, including $40 billion-$45 billion of foreign currency issuance. The research and ratings agency added that ample global liquidity and negative yields on more than $10 trillion of debt mean that issuers with a good credit story will find relatively easy entry to the Sukuk market this year. S&P pointed out several global themes that bode well for Islamic finance, technological innovation, sustainable investments and diversification, will continue to open the market to new players particularly small and midsize issuers.

Al Baraka celebrates Art Week in headquarters with an Art Exhibition by employees

Al Baraka Islamic Bank organized an art exhibition for talented employees of the Bank as well as for the staff of Al Baraka Banking Group. The Art exhibition took place on 28th January 2020 at the Al Baraka Headquarters in Bahrain Bay. Al Baraka Group President Mr. Adnan Ahmed Yousif said the exhibition aimed to explore the historical legacies of Bahrain, from traditional crafts, industry and pop culture to modernism’s forms, including art and architecture there by encouraging the talented employees. He further stated that some of the paintings would be selected for use in the Group’s calendars and greeting cards.

INJAZ #Bahrain set to launch its first mobile application

INJAZ Bahrain has endeavored to develop its first mobile application with the support of Al Salam Bank-Bahrain, K-Labs and Inforise IT. The application will offer an enhanced registration experience by enabling new joiners, volunteers and alumni to choose among a list of programs offered by INJAZ Bahrain in collaboration with public and private schools. The application will also provide INJAZ Bahrain’s privileged volunteers with reward points based on their contributed volunteering hours towards youth development. The INJAZ Bahrain application will be available for both Android and IOS users by June of this year. In an aim to expand youth education and economic development, INJAZ Bahrain is leveraging mobile to harness digital innovation to improve the learning process and encourage more volunteers to join its programs.

Abu Dhabi Islamic Bank extends $87 million financing for 2 deals in #UK

Abu Dhabi Islamic Bank (ADIB) has provided $87 million to help finance two deals in the United Kingdom that are valued more than $200 million. One of the clients is based in Abu Dhabi and plans to refinance a prime central London healthcare facility worth 900 million UAE dirhams ($245 million). The other client is a Bahrain-based company who plans to acquire a logistics hub in Edinburgh worth 55 million UAE dirhams ($15 million). The London property is operated by an international healthcare group. The Edinburgh property, let to Royal Mail, consists of an office facility and a distribution warehouse situated in Scotland.

Syndicate content