Arab News

Egyptians pay tribute to Saudi businessman Saleh Kamel

Egyptians have been paying tribute to Saudi businessman Saleh Kamel who died in Jeddah on Monday after suffering a heart attack. Members of the country’s business, political, religious, and entertainment communities joined in mourning the passing of the prominent figure. Kamel, who was the chairman and founder of the Dallah Al-Baraka Group established part of his economic empire in Egypt including Arab Radio and Television (ART), and Al-Baraka Bank. He also used the ART Institution to fund charity projects throughout Egypt. Kamel had always been a strong supporter of Egypt and in March 2015 headed a delegation of 100 businessmen and investors at a major conference in Sharm El-Sheikh aimed at boosting the Egyptian economy.

The legacy of Saudi tycoon Saleh Kamel

Saudi billionaire Saleh Kamel died on Monday and has been buried in Makkah, but his legacy is sure to endure. Even at the age of 79, despite suffering from age-related health issues, Kamel remained active and busy. After graduating, he worked at the Saudi Ministry of Finance. After 10 years with the ministry, Kamel moved to the private sector. He founded his flagship Dallah Al-Baraka Holding Company in 1969 in Riyadh. He expanded the Group's acitivity to include financial and banking services, health care, manufacturing, real estate, tourism, trading and more. Dallah Al-Baraka Group also has the honor of being chosen to clean and sterilize the Two Holy Mosques. Kamel was also a well-known investor in the media and satellite television production. He established Arab Radio and Television and formed a partnership with the Arab MBC channel. Dubbed "the father of contemporary Islamic finance", he received Malaysia’s Royal Award for Islamic Finance in November 2010. The tycoon’s wealth was estimated to be about $2.3 billion. Kamel aspired to creating jobs. He believed that all people should have dignity and that all lives are precious and deserve to be honored.

Gulf banks could see second wave of mergers after pandemic dust settles

The impact of the novel coronavirus on the global economy is growing and continues to shock the markets. S&P Global Ratings acknowledges a high degree of uncertainty about the rate of spread and peak of the COVID-19 outbreak. It comes as no surprise that the pandemic will halt the growth of GCC Islamic and conventional banks this year as they focus on preserving asset quality rather than business expansion. The delay of Expo 2020 for Dubai and potential cancelation of the pilgrimage season for Saudi Arabia, may result in a stronger impact on the regional economies. When the dust settles and the full effect of current conditions on banks’ financials is visible, there could be a second wave of mergers and acquisitions in the region.

Organization of Islamic Cooperation holds virtual symposium on COVID-19

The Organization of Islamic Cooperation (OIC) held a videoconference on the COVID-19 outbreak. The symposium reviewed Sharia provisions on isolating confirmed and suspected patients; social distancing; acts of worship, including congregational prayer, Friday prayer and Ramadan fasting during the lockdown; personal hygiene; and adherence to health directives issued by authorities. The symposium followed an extraordinary meeting of the OIC Steering Committee on Health on COVID-19 held a few days ago, which called on jurists and preachers to urge Muslims to follow the true teachings of Islam in terms of hygiene and adhering to the required preventive measures.

Ayman Amin Sejiny, CEO at Islamic Development Bank Group

Ayman Amin Sejiny has been the chief executive officer of the Islamic Corporation for the Development of the Private Sector (ICD) since October 2018. The ICD is the private sector arm of the Jeddah-based Islamic Development Bank Group. Recently, ICD announced a rapid response initiative to combat the repercussions of the coronavirus disease (COVID-19) by allocating $250 million in emergency funding. ICD will aid the private health care industries of affected member countries. ICD will also work closely with more than 100 local and regional financial institutions so that they can continue to finance small- and medium-sized enterprises.

#Bahrain’s Al-Salam Bank appoints new chairman

Al-Salam Bank-Bahrain has announced the appointment of Sheikh Khalid bin Mustahail Al-Mashani as the chairman of the board of directors. He is now replacing Khaleefa Butti bin Omair bin Yousif Al-Muhairi, who submitted his resignation as chairman and board member of the bank. Sheikh Khalid has more than 24 years of banking experience.

Leaders of world’s most powerful countries come together for Saudi-led virtual summit

Leaders of the most powerful countries in the world will today come together in a virtual summit organized by the Saudi Arabia G20 presidency to tackle the accelerating coronavirus crisis. Among world leaders expected to participate in the meeting are US President Donald Trump and Chinese President Xi Jinping, Russian President Vladimir Putin and German Chancellor Angela Merkel. The World Health Organization, the UN, the International Monetary Fund and the World Bank are among the international organizations that will take part, as well as other development organizations. Saudi Arabia’s efforts at global coordination will continue after the virtual summit. Another forum of G20 finance ministers is planned for next month, as well as a virtual gathering of G20 health ministers.

SEDCO Holding CEO talks ethical investments at WGES

The World Green Economy Summit (WGES) 2019 was held in Dubai and saw the attendance of over 3,000 delegates. The plenary session of the summit explored lucrative opportunities presented by green finance and how businesses can tap into this promising market. Hasan Al-Jabri, CEO of SEDCO Holding Group, highlighted the company’s Prudent Ethical Investing (PEI) strategy and stressed the significance of ethical and socially conscious investing. SEDCO Holding’s PEI-based portfolios combine the principles of responsible and Shariah-compliant finance, bringing together the many benefits of both approaches. The portfolios ensure long-term risk-adjusted returns to support the performance of businesses and promote greater sustainability.

Alwaleed Philanthropies invests $5m in global fight for vaccines

Alwaleed Philanthropies is investing a further $5 million in its partnership with Gavi, the Vaccine Alliance. The foundation will make the investment through Gavi’s INFUSE initiative (Innovation for Uptake, Scale and Equity in Immunization). The grant is part of a range of efforts by Alwaleed Philanthropies to improve routine immunization and builds on the original $1 million investment made in 2015 to support vaccines in Timor Leste, Kiribati, Armenia, Azerbaijan, Moldova and Guyana for the 2016-2020 program. Princess Lamia bint Majid Al-Saud, general-secretary of Alwaleed Philanthropies, announced the partnership at the 7th Tokyo International Conference on African Development. Alwaleed Philanthropies recognize the pressing need to support immunization, as the majority of the world’s population is increasingly living in urban areas, and more than 19.4 million children are still under-immunized.

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.

First Islamic trade finance #workshop in #Uzbekistan

The International Islamic Trade Finance Corporation (ITFC), the Ministry for Foreign Trade of Uzbekistan and the United Nations Development Program (UNDP) have come together for the first trade finance workshop titled "Trade Finance as a Key Factor in Trade Promotion". ITFC's chief operating officer Nazeem Noordali said that ITFC and the government of Uzbekistan signed a $100 million framework agreement to finance pre-export and import activities in the country. He added that ITFC was working closely with its partners to promote Islamic trade finance among the Uzbek banks and non-banking financial institutions.

#Saudi issues new Islamic bond to finance budget

Saudi Arabia has completed the issuance of a new sukuk sale to help finance its budget deficit. The Kingdom raised $1.3 billion from the sale of sukuks in three tranches maturing in five, seven and 10 years. This was the second sukuk sale this year following a $4.8-billion issue it completed last month. The government debt level, both domestic and international, rose from 1.6% of gross domestic product in 2014 to 17.3 of GDP last year reaching $118 billion. During the same period, the government has drawn down some $245 billion from its fiscal reserves. Oil income made up more than 90% of public revenues before oil began to slide.

Islamic Development Bank grants $63.3 million to #Sudan

The Islamic Development Bank (IDB) signed a grant agreement worth $63.3 million for the establishment of facilities and services in South Darfur, Sudan. Earlier this month, the IDB agreed to lend Tunisia $185 million to finance developments including an electricity project. The bank agreed to finance an electricity link worth $150, as well as the construction of hospitals in Kasserine and Kef worth $34 million. The IDB is a Jeddah-based multilateral development financing institution. It began its activities in 1975. The present membership of the bank consists of 57 countries.

IDB, WB eye $1.9 trillion Islamic finance market

The Islamic Development Bank (IDB) and the World Bank are to use the Islamic finance market for infrastructure development projects through public-private partnerships (PPP). The IDB recently organized a forum in Washington in partnership with the World Bank on this subject. The World Bank suggested that the Islamic financial market has reached $1.9 trillion over the past six decades. IDB spokesperson Dr. Abdul-Hakim Elwaer said the aim of the forum was to create awareness about the potential for infrastructure development through PPP. This falls in line with the new development orientations of IDB member countries. For example, Saudi Arabia is targeting to increase the private sector’s contribution to the GDP from 40 to 65%. The Kingdom aims to achieve this through increasing the use of PPPs and through the privatization of government entities.

Islamic #insurance #merger creates #UAE giant

Takaful Emarat has agreed to acquire Al Hilal Takaful from Al Hilal Bank. The all-cash transaction will create the largest Islamic insurer in the UAE. The move is viewed as part of a consolidation drive in the Gulf’s takaful sector to offset weak profitability. Mohammad Al-Hawari, managing director of Takaful Emarat, said the deal would drive growth through a wider range of takaful services and a larger customer base. The merger is subject to full regulatory approvals and is scheduled to be completed in the first quarter of 2018. The transfer of Al Hilal Takaful’s ownership to Takaful Emarat will have no impact on current takaful policies, contracts, claims settlements or the writing of new insurance business.

GFH in $150m deal to sell assets to global private schools operator

Gulf Finance House (GFH) has struck a $150 million deal to sell part of its educational assets to a global private schools operator called Inspired. Inspired runs private schools in Europe, Africa, Latin America and Australia. Hisham Al-Rayes, CEO of GFH, said Inspired’s network and experience would add significant value to the schools. This way, both students and teachers will take part in exchange programs and benefit from the latest programs to enhance the level of education. Inspired has schools in Italy, the UK, Switzerland, Belgium, South Africa, Kenya, Australia, Colombia and Peru. GFH’s businesses include asset management, wealth management, commercial banking and real estate development.

ADGM and KPMG launch #FinTech Abu Dhabi Innovation Challenge

Abu Dhabi Global Market (ADGM) and KPMG have come together to launch the first FinTech Abu Dhabi Innovation Challenge on Oct. 22. The Innovation Challenge includes an intensive five-week program for innovative and mature start-ups to conceptualize and present market-ready solutions that address real business challenges in the Middle East, Africa and South Asia (MEASA) region. During the program, 10 finalist teams will work divided into six focus areas: Financial and Investment Management, Financial Inclusion, RegTech, Trade Finance, InsurTech and Private Capital Markets.The finalists will showcase their solutions at the FinTech Demo Day in Abu Dhabi to a panel of industry experts. Each finalist will benefit from mentoring sessions and fast-tracked consideration for admission to ADGM’s Regulatory Laboratory (RegLab) program. They will also win a $15,000 cash stipend to cover any costs associated with travel matters and accommodation.

#Dana #Gas takes offer to #creditors off the table in $700m #sukuk row

Dana Gas has withdrawn an offer to creditors to exchange its debt of $ 700 million Islamic bond for new notes. Thereby ending the chance of a consensual resolution to a case that could shape the future of the global Islamic finance industry. The gas company is refusing to repay holders of its Islamic bond which matures in October. It said last month it had received legal advice that the bond was no longer Sharia-compliant in the UAE because of changes in Islamic finance interpretations over the recent years, and was therefore not lawful. But creditors say Dana has to pay them back and argue if the sukuk was legal when the deal was struck, it holds, and if it was illegal then it would mean the company is in default.

Dana debacle highlights need for unified Islamic finance regulator

A recent report from Standard & Poor’s said that Islamic financial assets had accelerated toward the end of 2016, but that such progress was unsustainable in the long term. The agency pointed out too that a lack of standardization was a barrier to creating a truly global industry based in the Middle East. The Islamic economy would continue to grow but at much lower rates than in the boom years from 2007 onward. It is against this background that recent events at Dana Gas should be seen. In 2013, the company issued sukuk totaling $700 million. Dana, which does a lot of its business in Egypt and Iraq, had problems getting paid in those countries. Earlier this month, Dana said it had received new legal advice which meant its sukuk were no longer to be considered Shariah-compliant. The Dana debacle confirms the belief that what is really needed is a much more standardized regulatory approach in the Islamic finance market.

Workshop on #Sukuk Model Law project held

The Islamic Research and Training Institute (IRTI) and the Islamic Development Bank (IDB) organized a regional consultation workshop on Sukuk Model Law project. The workshop was organized in partnership with the Monetary Authority of Brunei Darussalam and was held in Brunei capital. Participants included senior officials of financial authorities from the IDB member countries in the ASEAN region, namely Brunei, Indonesia, Malaysia, Bangladesh and Maldives, as well as from Hong Kong, South Korea, Singapore, Philippines, Sri Lanka and Cambodia. The project aims to create a model Sukuk law and guidelines that allow IDB member countries and other jurisdictions a basis for a legal framework for Sukuk issuance and regulation. This was the second of four regional consultations on the Sukuk law. The first consultation was held in Senegal, Africa, and other two are planned for Europe/Central Asia and the MENA regions.

Syndicate content