MENA

Arthur D. Little: Shariah-Compliant Banking is an Increasingly Attractive Option for Western Players

A new report released today by management consultancy Arthur D. Little entitled “Islamic Finance Comes of Age” has identified a surge in activity around Islamic finance as a promising opportunity for the global financial services industry as it emerges from the current recession. With Islamic finance assets currently standing at USD 800 bn, Arthur D. Little expects this figure to surge to as much as USD 4 trillion in the next six years, representing a major opportunity for Western financial institutions looking to develop new partnerships and global markets.

The report can be downloaded after free registration at: http://www.adlittle.com/islamic_finance

Gaza: Islamic National Bank founded in controversy

In Gaza a new "Islamic National Bank" was started with a capital of USD 20 mn reported Kifah Zaboun in Asharq Al-Awsat. The bank is licensed by Gaza without the consent of the Palestinian Monetary Agency.

The chairman of the bank, Ala Al-Rafati, denied accusations from sources within the Fatah movement which claimed that the bank is affiliated to Hamas saying that the Islamic National Bank is a private institute with a Board of Directors and an Executive Body.

Opening Ceyhan Bank for Islamic Investment and Development in Iraq

The Minister of Finance in the Government of Kurdistan province, Baez Talabani has opened Ceyhan Bank for Islamic Investment and Development. The chairman of Ceyhan sets as goal of opening this bank to provide qualified and new services, on the basis of Islamic shareholders for people, companies and government institutions.

E&Y sees takaful contributions grow to USD 7.7 bn by 2012

Ernst & Young released a report saying that the takaful market may reach USD 7.7 bn contributions by 2012, compared to USD 2.5 bn in 2006 and USD 3.4 bn in 2007.

Source: 

http://www.business24-7.ae/articles/2009/4/pages/globaltakafulmarketmayhit$77billionin2012report.aspx

Follow IslamicFinance.de with Twitter

IslamicFinance.de installed on 18 April a new service to keep you updated with Islamic finance news by sending its content to a Twitter account allowing to follow news even by mobile phone, Wikipedia the online encyclopedia explains Twitter as follows:

"Twitter is a free social networking and micro-blogging service that enables its users to send and read other users' updates known as tweets. Tweets are text-based posts of up to 140 characters in length which are displayed on the user's profile page and delivered to other users who have subscribed to them (known as followers). [...] Users can send and receive tweets via the Twitter website, Short Message Service (SMS) or external applications. The service is free to use over the Internet, but using SMS may incur phone service provider fees." Source http://en.wikipedia.org/wiki/Twitter

Please feel free to use just another free service related to IslamicFinance.de by following the news via Twitter:

Go to: http://twitter.com/IslamFinance

Yemen receives USD 120 mn from IDB for grain silos

Yemen is to sign USD 120 mn agreement with the Islamic Development Bank (IDB) to finance a project of Grain Silos in Salif area of Hodeidah governorate.

New license: Tunisia's first domestic Islamic finance bank

Tunisian President Zine al-Abidine Ben Ali's son-in-law recently won a license to begin operating an Islamic bank, which would be Tunisia's first domestic Islamic finance bank.

Oliver Wyman says Islamic finance industry to grow to USD 1.6 trillion by 2012

Assets of the global Islamic finance industry are estimated to grow to around USD 1.6 trillion by 2012, a report by consultancy Oliver Wyman said. Growth opportunities lie in underpenetrated markets with large Muslim populations in the Middle East, Pakistan and South East Asia. Islamic wholesale banking needs to diversify from real estate finance to include advanced treasury services, innovative asset management, balance sheet management and securitisation management.

Request form: http://www.oliverwyman.com/ow/request.htm?name=The%20Next%20Chapter%20in...

Islamic Development Bank plans Sukuk

Saudi-based Islamic Development Bank (IDB) plans to issue USD 5 bn Sukuk, over the next five years to finance its programmes.

IDB's president Mr Ali said he expected 2009 issue would be priced higher and that the new sukuk would increase the IDB’s 2009 financing programme by 15 %.

Global finance structures must be revamped, says UN expert panel

International finance structures must be drastically overhauled in the face of the current global economic crisis, a panel of experts convened by the United Nations General Assembly chaired by Joseph Stiglitz, winner of the 2001 Nobel Prize for Economics said.

The expert panel made a number of suggestions to support developing nations and creating an international infrastruture for the global markets led by the United Nations.

The panel included Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia.

Gassner's picture

Sustainability, Islamic Finance and Managing Risk While Seizing Opportunities

I just published an article with the Dow Jones Islamic Market Indexes Newsletter, giving an overview about the lines of arguments regarding performance and ethical screens, be it Islamic or Sustainability and what empiricial findings have been published.

It is claimed by critics that the reduction of the universe through ethical screens shall reduce the performance, likewise corporate social responsiblity comes against a cost. Similar counterarguments have been raised regarding Islamic screening criteria.

Bank Sarasin published a study doing own research with partners and reviewing published empirical analyses in the literature. It shows that there is no negative impact on performance. My review of empirical analyses in regard to Islamic finance concluded the same and all publications let conclude that ethical screens add value by way of risk management. An example is the debt limitation of the Sharia tolerance criteria.

Ethical screens may therefore improve the investment decision process and more research shall determine, which factors add value to the portfolio and therefore form part of a professional process.

Standard & Poor’s Ratings Address The Growing Takaful Market

Press Release

LONDON, March 30, 2009 -- In a report published today, Standard & Poor's Ratings Services explains the way that its rating approach has been adapted to meet the growth of takaful insurance.

The article, "Standard & Poor's Approach To Rating Takaful And Retakaful (Islamic Re/Insurance) Companies," says that the last five years have seen takaful (Islamic insurance) grow from a niche product servicing relatively limited demand to become a mainstream risk management offering.

"In particular, we have seen rapid growth in the Arab world and an expansion across Europe. A further market development has been the growth of retakaful as a Sharia-compliant version of reinsurance," said Standard & Poor's credit analyst Kevin Willis.

Standard & Poor's has rated a number of Islamic insurers and reinsurers and so is able to comment on the way that the rating criteria have been adapted to address the specifics of this product.

No stand alone Islamic banks in Morocco to be licensed

In spite of several applications Bank Al Maghrib, the central bank of Morocco, did not issue a stand alone Islamic banking license. The reasons: too much stress for the Moroccan market and the problem of taxation on certain Islamic products. However, since their permission on the market, the total value of Islamic finance products is around DH 200 mn.

Amanie Business Solutions LLC. launches its Shariah compliant stocks screening service

Amanie Business Solutions LLC. officially launched its web integrated Shariah stock screening service, the service will target new entrants into the Islamic fund management industry.

The web delivery platform of Amanie Screening can be accessed through http://www.amaniescreening.com . Investors and fund managers will be able to view the details and features of the Shariah Stock Screening service.

Amanie is a Shariah advisory and education company seeking to serve the global Islamic finance community.

2nd World Congress of Muslim Philanthropists: Fostering Partnerships

PRESS RELEASE

Conventional to Strategic: A New Paradigm in Giving

March 22-23, 2009 • Abu Dhabi, UAE

Abu Dhabi, UAE: The 2nd World Congress of Muslim Philanthropists (WCMP) concluded today after several key developments had been achieved that indicate an evolution in Muslim giving. The WCMP is a high-level network of donors and foundations established to promote informed and effective giving. The annual Congress itself is a unique event which brings together a diverse set of participants, with the hope that enhanced cooperation between different philanthropies through strategic partnerships will add profound value to address global challenges that affect both humanity and the environment.

Dr. Tariq Cheema, the founder of the WCMP, affirms that the World Congress of Muslim Philanthropists (WCMP)' brings together leaders who understand the risks and opportunities they have are common as global citizens, and therefore realize that collaboration across the lines of faith and race is a necessity and not merely a choice'.

Developments

Global sukuk sales to fall again in 2009

Experts are expecting further drop in Sukuk isssuance in 2009. Local currencies help to support the markets, K. Salman Younis, head of Kuwait Finance House's Asian operations was cited.

UNEP FI Insurance Working Group conducts first-of-a-kind global survey on ESG factors and insurance

The UNEP FI Insurance Working Group, supported by leading academic institutions from the United States and Europe, is conducting a landmark global survey on the understanding and integration of environmental, social and governance (ESG) factors in insurance underwriting and product development. The nature and scope of this survey makes it the first of its kind.

The core objectives are to:

- Assess the understanding and integration of ESG factors in insurance underwriting and product development globally
- Assess the financial materiality of ESG factors in insurance underwriting and product development
- Provide recommendations for sustainable insurance underwriting
- Provide research input for potential projects on other core insurance processes (e.g. investment, claims management, and sales & marketing)
- Establish a solid business case for the development of "Principles for Sustainable Insurance"

Visit http://www.unepfi.org/events/2009/survey to find out more and participate.

KFAED, KFH intend to invest USD 100 mln in Morocco

Kuwait News Agency citing that the Moroccan newspaper "Al-Jareeda Al-Oula" reported that three Gulf investment groups have revealed their intention to invest USD 250 mn this year in Morocco, including the Kuwait Fund for Arab Economic Development (KFAED and the Kuwait Finance House Group (KFH).
In the same context, the newspaper quoted an official from the "ENOCENOC" group of the United Arab Emirates as saying that the group decided to invest USD 150 million to set up an investment project in the northern city of Tangier.

The Executive Director of the ENOCENOC Group Saeed Khoury said the investment will be to build the first phase of the plant in Tangier which is scheduled to enter service in the first quarter of next year.

Tunisia: New Islamic bank ahead: Banque Islamique Zitouna

Les Afriques reported on 7 March that Mohamed Sakhr El Materi, President of Princesse El Materi Holding has received end of January the regulatory agreement to create the commercial bank Zitouna.

Existing Islamic banks in Tunisia are Best Bank (Bank Ettamwil Tounsi Saoudi) and Noor Islamic Bank, the latter with its regional office.

More Sharia compliant Infrastructure Funds expected

Shashank Shekhar reported in Emirates Business 24/7 on 11 March that regional fund managers expect the emergence of several new Shariah-compliant funds focused on infrastructure projects, which offer returns in the range of 15 to 18 per cent. Infrastructure projects in sectors like health, agriculture and green energy are expected to attract the bulk of investments.

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