IslamicFinance.de

Armen Papazian said he was named to the post head of Islamic finance by UBS Investment Bank 2-1/2 weeks ago with a global mandate to hire staff and design innovative products and as sign of commitment, that UBS believes in the growth sector.

Faisal Private Bank's Chief Executive, Marco Rochat, said the absence of a global set of harmonised rules on sharia compliance created an unlevel playing field, reported Martin de Sa'Pinto on Reuters. Faisal Private Bank adivses on nearly USD 500 mn.

Gulf Finance House plans to launch a GBP 50 mn UK commercial property fund and a USD 50 mn Sukuk fund in the GCC. The USD 50 mn sukuk fund, to launch in the next two weeks pending regulatory approval, would focus on government, quasi-government, or very stable GCC issues, reported Ulf Laessing and Raissa Kasolowsky on Reuters.

Algebra Capital sees the Mideast asset management sector to grow by 15 % from USD 80-100 bn to USD 300 bn by 2014. Fixed-income, which contributes less than 2-3 % of regional assets compared with a majority in equity investments, could provide a "tremendous growth" opportunity if regulators and governments focus on creating the domestic demand for new issues, Managing Director Mohieddine Kronfol said.

Franklin Rersouces Inc. holds a 40 % stake in Algebra Capital and have jointly launched 5 products on the equity side and now looking at fixed-income products and Islamic.

Emirates NBD, the largest bank in the region in terms of assets, announces the appointment of Robbert Jan Voogt as the General Manager of Private Banking.

The new General Manager of Private Banking, Robbert Jan Voogt brings financial expertise from his previous positions at Merrill Lynch and FortisMeesPierson to Emirates NBD. He joins the team after heading the Private Bank South Asia at the Fortis Private Bank in Singapore.

Royal Bank of Scotland sees big growth opportunities in Islamic investment banking, expecting asset growth rates to remain 15-20 percent annually and profitability levels to increase, Navid Goraya, RBS' global head of Islamic banking said.

Bahrain-based Gulf Finance House is seeking to raise USD 600 mn for energy projects in Libya and Kazakhstan this year.

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.

Kuwait Finance House – Bahrain (KFH-Bahrain), has unveiled its new brand identity for ' Baytik Ijara Card', the first Islamic financing card that allows cardholders to acquire durable goods on a lease-to-own basis.

KFH-Bahrain's first Ijara card was initially launched in 2004. It gave customers the convenience to make purchases at hundreds of outlets in the Kingdom with the flexibility to pay back depending on period of their choice, which can range from 1 to 24 months.

Fitch Ratings had affirmed Kuwait International Bank (KIB)'s Long-term Issuer Default Rating (IDR) at "A-", Short-term IDR at "F2", Individual Rating at "C/D", Support Rating at "1" and Support Rating Floor at "A-". It said the outlook on the Long-term IDR was stable, adding that the bank's IDRs and Support Rating "reflected the extremely high probability of support that could be expected from the Kuwaiti authorities in case of need, based on the state's history of support for local banks during past systemic crises." It also said that the successful conversion into an Islamic bank and the many structural improvements to its business since the July 2007 conversion.

Liquidity Management House, which is a wholly owned subsidiary of Kuwait Finance has succeeded in making a combined global 1-year Murabaha finance deal about USD 115 million for KFH-Turkey, after attracting 7 global and regional banks: Halk Bank-Turkey, Islamic Development Bank, Citibank, Garanti Bank International-Holland, Gatehouse Bank-UK, NBK International PLC, Standard Chartered Bank.

KFH-Turkey Chief Executive Officer is Ufuk Iwan.

Mali and the Islamic Development Bank (IDB) have signed a grant agreement of 789 million CFA francs (about USD 1.578 million) aimed at supporting the revival of agriculture. The grant complements two funding agreements recently approved by IDB's Board of Executive Directors to support agricultural production on water control.

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.

Anjana Samarasinghe reported that First Barakah Investments Limited is expecting Central Bank approval to operate as a registered finance company shortly in Sri Lanka shortly. The company also expects to apply for banking licenses within two years time.

Barakah Investments will introduce ‘SUKUK’ an alternative way of bonds in Islamic finance to the market. The Government of Sri Lanka also expects to raise funds through 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 %.

Bank of London and the Middle East plans to focus on its wealth-management business this year and then aim for listing on the London Stock Exchange next year.

Parsoli Corporation Ltd has informed Bombay Stock Exchange that Mr. Uto Baader, and Ms. Christine Schiedermaier, have resigned as directors of the Company and accordingly they ceased to be directors w.e.f. March 25, 2009.

Press Release

PARIS April 6, 2009--Standard & Poor's Ratings Services said today that it lowered its long-term counterparty credit rating on Bahrain-based Arcapita Bank to 'BB' from 'BB+' and kept the rating on CreditWatch with negative implications where it was initially placed on Jan. 28, 2009. At the same time, Standard & Poor's affirmed its 'B' short-term rating on Arcapita.

"The rating action reflects the very weak investment climate, which has challenged Arcapita's business model and has decreased the value of its assets in our view," said Standard & Poor's credit analyst Mohamed Damak. "In this light, we believe Arcapita's leverage indicators have weakened, which has put pressure on its credit profile."

Arcapita has reported that it is implementing a set of measures to reduce its leverage and improve its liquidity position. It has already:

--Raised $300 million through two-year facilities from strategic investors;

--Raised $100 million of capital from a strategic shareholder in the Gulf; and

--Sold and leased-back its head office and a related piece of land in a $400 million transaction.

Simeon Kerr reported in The Financial times on 5 April that the Dubai government raised a
USD 635 mn Islamic finance to help retire a USD 1 bn in civil aviation authority debt maturing later this month.

The lease-based Islamic facilty syndication, led by Dubai Islamic Bank, mainly depends on local banks, but Industrial & Commercial Bank of China and WestLB also participated in the syndication, which was priced at 3 % points above US, UAE and euro benchmark rates. It is due to be repaid in three equal semi-annual instalments from April 2010.

It was the first Islamic transaction for the Industrial & Commercial Bank of China with a branch in the DIFC.

Dubai is preparing to seek a sovereign rating in the second half of this year.

The Investment Dar announces that the release of its financial results for the year ended 31 December 2008 has been delayed as a result of additional reporting requirements from the Company's subsidiaries and associates. The Company has been in dialogue with the Kuwaiti regulatory authorities regarding this issue.

As of 1 April 2009, the Kuwait Stock Exchange suspended trading in the companie's shares until further notice as a result of the postponement of the release of its full year financial results for the year ended 31 December 2008. The same action was taken for a number of other Kuwait Stock Exchange listed companies.