IslamicFinance.de

The Index of Philanthropic Freedom 2015 by the Centre for Global Prosperity at the Hudson Institute ranked Australia behind New Zealand, the USA, Canada, Japan and Spain in terms of barriers and incentives for individuals and organisations to donate money and time to social causes. Australia was ranked 13th overall for philanthropic freedom out of 64 countries, with the Netherlands, the USA and Germany taking out the top three places. New Zealand was ranked eighth while the UK was one place behind Australia at 14. Australia’s philanthropic environment is decidedly disjointed. On the one hand, Australia maintains the region’s most favorable environment for the operation and registration of CSOs (Civil Society Organisations), on the other hand, Australia has a variety of policies that are not necessarily designed to deter cross-border flows but do exactly that.

Eskan Bank (EB), established in 1979 and fully owned by the government, has the mandate to provide financing to the low-to-medium-income population segment, specifically to acquire (purchase/construct) a primary residence, and contribute to related property development. During its 36 years of existence, the bank has assisted approximately 35 percent of citizens by providing more than BD 700 million in mortgage financing. With its authorized share capital of BD 400 million and paid-up capital of BD 108.3 million, EB operates under a restricted conventional retail banking license issued and regulated by the Central Bank of Bahrain (CBB). Its total assets at the end of 2014 stood at BD 610.7 million.

Bahrain based Ibdar Bank together with Dubai-based Palma Holding received the African Aviation Awards' "Aircraft Finance Deal of the Year" for their successful structuring of a 12-year agreement for acquiring four brand new Bombardier Q400 Next Gen aircrafts and leasing them to the Ethiopian Airlines. The African Aviation Awards were introduced by African Aviation Magazine in 1999 in order to give International recognition to those individuals, companies and organisations who have made significant contributions to Aviation Development in Africa. Valued at USD 100 million, Ibdar Bank contributed as investor with USD 22 million, while an amount of USD 78 million was secured through a funding agreement with Canada's Export Credit Agency "EDC".

Maxim Tafintsev, President of the Arab European Lawyers Association, speaks on why Russia’s authorities this year are seriously going into the issue of opening the door to Islamic banking under Shariah Islamic law. For the past five years a certain practice has formed in the framework of the existing legislation, the practice, which allows using and employing certain products. Installment selling and leasing are allowed now, insurance products began to work as well. Specifically Russia needs to modify its banking laws to conduct credit and deposit policies. Particular changes in the tax legislation are required to help Islamic financial products be less costly. By the number of Muslim population in Russia, which is 20 million, their engagement in legal financial turnover may bring from shadow avalanchine sums of money.

London-based investment bank Gatehouse Bank Plc said on Monday it promoted Will Innes as vice president within its real estate investment team. He will work with Will Lowndes, vice president of real estate investment, and will be responsible for sourcing and originating real estate transactions across UK and continental Europe, Gatehouse said. Innes, who joined Gatehouse in January 2014, previously worked at Waypoint Capital where he was responsible for developing international private equity real estate platform.

A final approval for the draft takaful or Islamic insurance regulation, which was cleared by the State Council in February, is expected soon. The draft Takaful Insurance Law, which was prepared by the insurance regulator, Capital Market Authority (CMA), is expected to give the much-needed impetus to the development of the Islamic financial sector. The law, which was drafted with the assistance of a consultant in line with the principles of the Islamic Financial services Board, was circulated among all related parties, especially insurance firms for their feedback, before seeking approval from various entities like the Ministerial Council and the Ministry of Legal Affairs.

Shahjalal Islami Bank has recently reelected AK Azad as its chairman and Mohammad Younus and Md Abdul Barek as vice chairmen. Azad is the managing director of Ha-Meem Group and president of Bangladesh Chamber of Industries. He is also the former president of the Federation of Bangladesh Chambers of Commerce and Industry. Azad is also the managing director of Channel 24 and Daily Samakal. Younus has business concerns in paper, fabric, and cold storages industries. He is also a director of NTV, the bank said. Barek is a sponsor shareholder of Shahjalal Islami Bank and Shahjalal Islami Bank Securities. He also owns Arju Electronics, Jony Electronics and Rony Electronics.

MasterCard partnered with Al-Arafah Islami Bank to launch the MasterCard Islamic debit, credit and prepaid cards in Bangladesh. five new MasterCard cards will be added to the bank's repertoire. The cards will offer the lowest monthly compliance fees, 50 days without any additional charges, along with discounts at over 600 merchants and vendors. Jamilur Reza Choudhury, vice-chancellor of Asia Pacific University, attended the launching ceremony as the chief guest along with Badiur Rahman, chairman of Al-Arafah Islami Bank, and Syed Mohammad Kamal, country manager of MasterCard Bangladesh.

Mustafa Anwar has been elected chairman of Islami Bank Bangladesh, while Yousif Abdullah Al-Rajhi and NRM Borhan Uddin have been elected vice-chairmen. Anwar, who is the chairman and managing director of Birds Group, started his career as an engineer of Bangladesh Water Development Board after completing his graduation in civil engineering from Bangladesh University of Engineering and Technology in 1964. Rajhi is the general manager-cum chief executive officer of Al-Rajhi Company for Industry and Trade, KSA. Borhan Uddin, who is currently chairman of audit committee of the bank, is the vice-chancellor of City University, Dhaka.

Deloitte and Noor Telecom have collaborated with Dubai Islamic Economy Development Center (DIEDC) for the compilation of a report that highlights the untapped potential of the Digital Islamic Services market and offers key recommendations for realizing Dubai's vision of emerging as the capital of Islamic economy. The report whose title is ‘The Digital Islamic Services Landscape: Uncovering the Digital Islamic Services opportunity for the Middle East and the World’ combines a range of qualitative and quantitative research projects conducted for the offline and online markets around the world. The report defines the Digital Islamic Services landscape under nine key industry verticals and areas, which constitute the pillars of the global Islamic economy online.

Middle East investors are increasingly looking at Australia as a destination to expand their real estate portfolios, according to IP Global. A stable economy coupled with strong population growth continues to underpin the property markets in cities such as Brisbane and Melbourne, the property investment firm said in its latest quarterly global real estate outlook. While there are signs that property prices are overheating in traditional investor hot spots like Sydney, pockets of value still exist in suburbs of Brisbane and Melbourne. Paul Preston, Director, Head of EMEA at IP Global, which has offices in the UAE, said that a rising population and big infrastructure spending programs support the outlook for real estate returns in areas beyond the more well-known, traditional investment locations.

Turkiye Finans, the largest Islamic bank in Turkey, told regulators that its chief executive Derya Gurerk had resigned from his position on Friday, an unexpected move at a time of growing competition in the sector. Executive vice president Osman Celik would take over the role temporarily, the bank said in a regulatory filing without elaborating on the departure of Gurerk, who had served on the role since 2011. Turkiye Finans, in which Saudi Arabia’s National Commercial Bank is the largest shareholder, has a predominant focus on corporate banking and is one of four incumbent Islamic banks in the country.

The Thomson Reuters Global Sukuk Index is at 117.76047 points, down from 118.42537 at the end of last month but up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 116.64082 against 117.32893 at end-May and 113.69014 at end-2014. Some of the sukuk in the pipeline are: Saudi Arabia's Al Othaim Real Estate and Investment Co has revived plans to issue a debut local currency Islamic bond, probably after the summer. Dubai's Drake & Scull International set initial price guidance for its senior perpetual U.S. dollar sukuk at around 9 percent. The Islamic Development Bank increased the ceiling of its Islamic bond programme to $25 billion from $10 billion. Malaysian mortgage lender Cagamas still hopes to issue sukuk this year off a $2.5 billion multi-currency programme set up last November.

President Joko Widodo (Jokowi) has expressed hope that Indonesia will become a shariah financial center in view of the countrys huge potentials. He spoke at the launching of the "I Love Shariah Finance" campaign initiated by the Financial Service Authority (OJK). OJK chairman Muliaman D Hadad said that although the shariah finance has grown fast it is still relatively small compared to other national financial services. He said 12 shariah general banks with 22 shariah units in the country are owned by conventional banks and 163 shariah BPRs (local banks) with total assets worth Rp264.81 trillion and a market share of 4.88 percent. Until March 2015 total shariah shares traded at the shariah capital market reached Rp3,037.46 trillion with corporate bonds reached Rp7.1 trillion and shariah mutual funds Rp11.7 trillion.

Kuwait International Bank has invited banks to participate in a $100 million debut Islamic loan to fund its general funding activities and the marketing of the deal should close by early August, it said in a statement. The bank will raise funds with a three-year lifespan and will pay a margin of 120 basis points over the London interbank offered rate (Libor). The lender will use a murabaha-structured facility, which is a cost-plus-profit arrangement, one of the most popular formats for structuring Islamic loans. Arab Banking Corporation and ABC Islamic Bank are the mandated lead arrangers for the transaction.

Finance Minister of Bangladesh AMA Muhith has urged governors of the Islamic Development Bank (IDB) to push for a community-based partnership and come out of traditional financing models for a prosperous Islamic world. Muhith suggested leaders of the Islamic countries should work together to pull up the OIC (Organisation of Islamic Cooperation) region towards achieving healthy human development and securing strong, sustainable economic growth. He was speaking to OIC leaders at the 40th annual meeting of the Islamic Development Bank Group at Maputo, Mozambique. Currently, IDB's support for low-income members is stymied by not just a lack of adequate development funds but by its relatively higher cost as well, Muhith said.

The International Chamber of Commerce Nigeria(ICCN) is set to admit about 11 new members at its 16th annual general meeting billed for Lagos this month. ICCN secretary-general, Mrs. Olubunmi Osuntuyi, said in a statement that the new members are: Anu Eso & Co., Enterprise Transport & Logistics Ltd., Heritage Banking Company Ltd., Jaiz Bank Plc., Nigerian-American Chamber of Commerce, Nigerian Ports Authority, Norfolk Partners, Onwuamaegbu & Co., Rand Merchant Bank Ltd., Sola Ephraim-Oluwanuga & Co. and Strachan Partners. The statement said the AGM which would be sponsored by Sterling Bank Plc would feature the traditional Post- AGM Talk to be delivered by Bismarck Rewane.

Bank Islam Malaysia Bhd expects a moderate and slower performance in 2015 with assets to grow at 10% and financing at 15% due to the current economic challenges. The consumer market sector has been noticeably slowed down, especially with the guidelines of the introduction of responsible financing by Bank Negara (Malaysia), Managing Director Datuk Seri Zukri Samat said. Bank Islam, which currently has 142 branches nationwide, will open eight more branches, including in the rural areas by year-end, he added after presenting RM12.74 million in business tithe to Minister in the Prime Minister's Department Datuk Seri Jamil Khir Baharom in Kuala Lumpur. At the same event, Bank Islam introduced 'Mudah Zakat', a multi-channel tithe payment system to improve tithe management efficiency.

Bahrain-based Islamic investment firm Arcapita said on Wednesday it had sold its real estate portfolio of retirement communities across the United States to NorthStar Healthcare Income Trust for $640 million. The portfolio includes 16 facilities and 4,000 residential units for continuing senior care. Net operating income from the portfolio grew by 41 per cent between 2010 and 2014, despite a slump in the U.S. housing market following the 2008 financial crisis. Abdulmalik said the firm has given $3 billion in exit proceeds to its investors in the last two years but did not give a breakdown of profits for its real estate portfolio exit. In November, Arcapita completed a $100 million fundraising, a little over a year after emerging from Chapter 11 bankruptcy.

Islamic financial services are one of the top priorities for Turkey’s presidency of the G20, a senior Turkish finance official said on Wednesday. Speaking at a meeting of the Islamic Development Bank (IDB) in Mozambique’s capital Maputo, Deputy Undersecretary of the Turkish Treasury Burhanettin Aktas said Turkey believed strongly in the vital role the Islamic finance industry had to play in infrastructure and small-medium-enterprise (SME) financing. According to Aktas, Turkey has one of the highest growth potentials for Islamic financial services among the Organization of Islamic Cooperation countries, Turkey has developed new products, established a state-owned Islamic bank and plans to open two more state-owned Islamic banks.