Islamic Banking

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CIMB to expand Islamic banking in Middle East

The Star Malaysia reported on 22 April that CIMB group intends to expand its Islamic banking business in Dubai and Saudi Arabia via acquisitions.

The group via Bumiputra-Commerce Holdings Bhd recently acquired a 19.99% stake in China-based Bank of Yingkou Co Ltd.

CIMB group chief executive is Datuk Nazir Razak.

Source: http://biz.thestar.com.my/services/printerfriendly.asp?file=/2008/4/22/b...

Markaz completes structuring of Arbun Call Option

Kuwait Financial Centre 'Markaz' released on 23 April that they developed an Arbun contract, functioning similar to an American option. Kuwait Stock Exchange is trading conventional options since 2005.

The Arbun (downpayment with revocation option) can be both cash and physically settled at anytime on or before the maturity date. The product has been submitted to the Kuwait Stock Exchange for their review and approval.

Mr. Hussein Zeinnedin is Assistant Vice President - Derivatives at Kuwait Financial Centre 'Markaz'.

Source: http://www.ameinfo.com/154396.html

France to host meetings on ‘Islamic finance’

Arab Times reported that the French Senate,is organizing two round table discussions May 14 to examine the role France can play in attracting Islamic funds.

Senates Finance Commission president Jean Arthuis will preside the meeting and Zubeir Bin Terdeyet, Director of Isla Invest, Maya Boureghda, a legal counsellor at BNP Parisbas, Anwar Hassoune, vice-president of Moodys rating company, Vincent Lauwick, SGAM Asset Management, London, Jean Francois Pon from the Federation of French Banks and Gilles Saint Marc, a lawyer from AARPI.

Source: http://www.arabtimesonline.com/kuwaitnews/pagesdetails.asp?nid=16009&cci...

Gulf Islamic banks continue to outperform conventional peers

Darren Stubing reported on 27 April Gulf Islamic banks continue to grow at a strong pace in excess of conventional banks in the GCC countries.

Islamic financial institutions exceed the return on assets of their peers in the Gulf (3.6 % vs. 2.4 %) and the return on equity (24 % vs. 19 %), net profit grew 11 % compared to 5 %.

Banks with retail banking proved stronger and more conventional banks consider converting to Islamic bank status, such as the Commercial Bank in Kuwait, however, Islamic banks do required better economies of scale to drive down cost-income ratios, which can be achieved by cross-border expansion including M&A.

Source: http://www.business24-7.ae/articles/2008/4/pages/04272008_70eea8abe8c54a...

Moody's comments on Islamic finance

Forbes reported on 15 April about the Moody's study regarding Islamic finance claiming the industry grows at double rate compared to the conventional markets and becomes more international but also remains diverse and heterogene. Interpretation of rules and regulation vary widely, and they perceive a lack of technical and contractual standardisation.

Moody's expects the Sukuk market to become more complex, more structured, larger, more diversified and more liquid as it evolves over time.

Source: http://www.forbes.com/markets/feeds/afx/2008/04/15/afx4891802.html

Bank AlJazira General Annual Meeting

Mohannad Sharaw, Saudi Gazette, reported on 18 April that Bank AlJazira increased the bank's capital from SAR 2.250 bn (255 mn equities) to SAR 3 bn (300 million equities), or a 33.3 percent increase and the the total number of shares of 27 stakeholders reached 142,201,320 mn, representing 63 % of the bank's 255 million equities. The SAR 750 mn hike will be deducted from the net profits account according to the SAMA regulations.

The 42nd general annual meeting of the bank was held at Jeddah Hilton led by Taha Bin Abdullah Al-Qwaiz, head of the board, along with Abdullah Saleh Kamel, Abdullah Al-Angari, Khalid Bin Omar Al- Baltan, Eng. Abdul Majid Al-Sultan, Khalifa Bin Abdul Latif Al-Mulhim, Mishari Bin Ibrahim Al- Mishari, and Mohammad Bin Abdullah Al-Mudbel.

The board likewise approved dividend of SR0.50 per each equity owned and registered at Tadawul by the end of the stock market session on Wednesday and the added profits on April 29.

Source: http://www.zawya.com/story.cfm/sidZAWYA20080418071404

JP Morgan eyes stake in Kuwait Finance House

Reuters reported on 20 April that JP Morgan eyes a stake in Kuwait Finance House quoting a local daily al-Anba based on an unsourced report. The local paper shall have said that the U.S. bank had applied to the central bank of Kuwait to approve a stake buy, adding it was unclear how large a stake it wanted to acquire.

Source: http://www.reuters.com/article/innovationNews/idUSL2066795520080420

Sharia compliant Ajman Bank holds founding general assembly meeting

Albawaba reported on 20 April that Ajman Bank PJSC it had held its Founding General Assembly meeting for shareholders of the company.
Convened on Wednesday 16 April, the shareholders approved all of the meeting’s resolutions including the completion of the incorporation of the Bank; the adoption of the Bank’s Memorandum and Articles of Association; the Founders’ report and the Pre IPO Auditing report.

Ajman Bank will be Ajman’s first commercial bank. Investors include the Government of Ajman and some of the UAE’s leading financial institutions and private individuals.

The Board of Directors comprises:

HH Sheikh Ammar bin Humaid bin Rashid Al Nuaimi, Chairman
HH Sheikh Ahmed bin Humaid bin Rashid Al Nuaimi, Vice Chairman
HH Sheikh Rashid bin Humaid bin Rashid Al Nuaimi, Member
Dr Ali Rashid Abdullah Al Nuaimi, Member
Mr Ali bin Abdullah Al Hamrani, Member
Mr Yousef Ali Fadil Bin Fadil, Member
Mr Salem Rashid Al Khadar, Member

The Fatwa and Shariah Board comprises:

Dr Husain Hamid Hassan, Sheikh Mohammed Abdulrazaq Al Siddiq,
Dr Jassim Ali Al Shamsi

Yousif Khalaf, the CEO of Ajman Bank and former CEO of Bahrain Islamic Bank and Ithmaar Bank.

Dubai Islamic Bank and DIC in talks to open bank in Jordan

Business 24/7 reported on 16 April that Dubai International Capital (DIC) talks with Dubai Islamic Bank about setting up a Shariah-compliant Islamic bank in Jordan.

Sameer Al Ansari heads Dubai International Capital. DIC manages a $500 million (Dh1.8 billion) fund investing in Jordan.

Source: http://www.business24-7.ae/cs/article_show_mainh1_story.aspx?HeadlineID=...

Alinma's USD 2.8 bn IPO oversubscribed

Tradearabia reported on 15 April that the Initial Public Offering (IPO) of the new Islamic bank, Alinma, oversubscribed the SAR 10.5 bn (USD 2.8 bn) three days before the close of subscriptions.

Alinma Bank sought to sell 1.05 billion shares at 10 riyals each representing 70 % of the banks capital. The bank raised 10.64 billion riyals from about 5.4 million subscribers.

The Public Investment Fund and two state pension funds - the General Organisation for Social Insurance (GOSI) and the Public Pension Agency - will equally share the remaining 30 % of Alinma's SAR 15 bn capital.

Source: http://www.tradearabia.com/news/CM_141803.html

Rajhi Bank increases profits

Souhail Karam reported on Reuters, 13 April, on the profit rise of 2.1 % of Saudi-based Rajhi Bank in Q1 from core business operations.

Net Income from investment rose 11.5 % to SAR 2.03 bn. Income from banking services increased 18 % to SAR 454 mn. Growth is targeted by diversifying its sources of revenue, developing the investment and corporate banking sectors along with retail banking. According to analysts posted profits could be even higher, but were impacted by the cost of international expansion.

Rajhi plans to add 160 branches in Saudi Arabia by mid-2008.

Chief Executive is Abdullah Sulaiman al-Rajhi.

Source: http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/id...

Islamic bank is planned in Ghana by the end of 2008

Felix Dela Klutse reported in Daily Guide on 10 April that an Islamic bank is planned in Ghana by the end of the year.

Professor Thomas Kubi is a promoter of the bank and gave an interview to CITY&BUSINESS GUIDE in Accra, Ghana. According to this the bank would be offering corporate banking, housing finance, car finance, retail banking products and other permissible services. The Ministry of Finance and the Bank of Ghana, which is the regulator of the country’s banking industry, had agreed in principle for the setting up of the bank in the country.

He further disclosed that an international Shariah advisory firm, Dar Al Istithmar, in collaboration with his outfit, MCA International Consult, had already prepared a proposal outlining the strategy to introduce Islamic banking to the country.

Source: http://www.modernghana.com/news/162238/1/Ghana-welcomes-islamic-bank

AlBaraka: Algerian subsidiary posts strong results

Bahrain Tribune reported on 9 April that, Banque Albaraka D'Algerie, a subsidiary of Bahrain-based Albaraka Banking Group (ABG), announced a net income increase to USD 19 mn in 2007, which is a 34 % growth.

Mohammed Seddik Hafid, Board Member and General Manager of the bank. Adnan Ahmed Yousif is Chairman of the Board of Directors of Banque Albaraka D'Algerie and President and Chief Executive of Albaraka Banking Group.

Source: http://www.menafn.com/qn_news_story_s.asp?StoryId=1093192151

CIMA launches qualification in Islamic finance

Joyce Goh reported on 9 April in The Edge Daily, that Chartered Institute of Management Accountants (CIMA) launches qualification in Islamic finance.

CIMA’s new qualification comprises four modules: Islamic commercial law; Islamic banking and takaful; Islamic capital markets and instruments; and accounting for Islamic financial institutions.

CIMA’s director of education is Robert Jelly. CIMA divisional director is Sopiah Suid, CIMA Malaysia's president is Michael Eow.
Deputy Finance Minister attented the signing: Datuk Ahmad Husni Hanadzlah. Dr Mohd Daud Bakar is president and CEO of IIIF.

Source: http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Artic...

IIFM aims to finalise Master Murabaha Agreement

Talal Malik reported on 7 April 2008 that the Bahrain-based International Islamic Financial Market (IIFM) said to finalise soon the standardisation for a Master Murabaha Agreement called Master Agreement for Treasury Placement (MATP). The Agreements are under final review by Sharia scholars.

Khalid Hamad is chairman of IIFM.

Source: http://www.arabianbusiness.com/515834-bahrains-iifm-drawing-up-islamic-f...

Belgium law firm Loyens & Loeff has launched an Islamic finance practice

Law.com reported on 3 April that Loyens & Loeff has launched an Islamic finance practice -- in a move thought to make Loyens the first Benelux firm to target the sector with a dedicated team, following the hiring of Marjorie Sinke as head last February. Sinke -- a former judge at The Hague -- joins Loyens after running her own Islamic finance consultancy. She was also previously an associate at Benelux giant Stibbe.

Source: http://www.law.com/jsp/article.jsp?id=1207133080920

Millennium Finance Corporation announces UGB as new shareholder

Al Bawaba reported on 30 March on the new share holder of Millenium Finance Corporation (MFC), which is United Gulf Bank BSC (UGB).

MFC, a Dubai Financial Services Authority (DFSA) licensed investment bank, was established by an experienced team of bankers from major international investment banking firms, in partnership with DIB. UGB is the investment banking arm of the KIPCO Group, Kuwait.

Khaled Al Kamda is Chief Executive Officer of Dubai Islamic Bank, Masaud Hayat, Managing Director of UGB, Keba Keinde, Chief Executive Officer of MFC, and William Khouri, Chief Executive Officer of UGB all signed off the transaction.

Source: http://www.albawaba.com/en/countries/UAE/224596

Inma Bank eyes SAR 10.5 bn in biggest Saudi IPO

Trade Arabia reported on 5 April based on Reuters that Inma Bank plans SAR 10.5 bn (USD 2.8 bn) in biggest Saudi Initial Public Offering (IPO) from April 7 to 16 selling 1.05 billion shares representing 70 % of the bank's capital SAR 15 bn capital. The Public Investment Fund, General Organisation for Social Insurance (Gosi) and the Public Pension Agency will each hold 10 %.

The IPO was previously delayed. Start of operations of the new Islamic bank is planned for the second half of 2008 with 15 branches.

The CEO is Abdel-Mohsen al-Faris. Lead Manager is Samba Capital.

Source: http://www.tradearabia.com/news/BANK_141332.html

New IFSB documents on Capital Adequacy and Liquidity Management

The Islamic Financial Services Board (IFSB) released on 1 April that the IFSB Council adopted two documents to further facilitate efforts towards enhancing the soundness and stability of the Islamic financial services industry.

In its 12th meeting held at the Islamic Development Bank's (IDB) headquarters in Jeddah on March 26th 2008, the Council of the Islamic Financial Services Board (IFSB) resolved to approve two documents that aim to further facilitate efforts towards enhancing the soundness and stability of the Islamic financial services industry. The two documents are:

Guidance Note in Connection with the Capital Adequacy Standard: Recognition of Ratings by External Credit Assessment Institutions (ECAI) on Shari'ah-Compliant Financial Instruments (Guidance Note)

Technical Note on Issues in Strengthening Liquidity Management of Institutions Offering Islamic Financial Services: The Development of Islamic Money Markets (Technical Notes)

Guidance Note in Connection with the Capital Adequacy Standard: Recognition of Ratings by External Credit Assessment Institutions (ECAI) on Shari'ah-Compliant Financial Instruments (Guidance Note)

New Islamic Private Bank in Switzerland planned

Andrew England and David Oakley wrote a short briefing on 30 March in the Financial Times about a new Islamic private bank planned in Switzerland. National Bank of Kuwait is supposedly partnering with a Saudi-Arabian institution.

Source: http://www.ft.com/cms/s/9bbfce9e-fe8c-11dc-9e04-000077b07658,Authorised=...

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