IslamicFinance.de

Khazanah Nasional is set to issue Malaysia's first social-impact sukuk. Local agency Ram Ratings said the RM1 billion (US$282 million) Sukuk Ihsan programme, to which it assigned a AAA rating last week, was the first social-impact bond to be rated globally. Proceeds will go towards educational projects. Investors and market observers are eagerly expecting the first issuance off the programme as early as next month, although marketing preparations are still being finalised. Socially responsible investment is catching on slowly in Asia, but issuers in South Korea, India and Taiwan have sold so-called Green bonds and interest from investors is growing.

A startup that recently relocated from San Francisco to Jakarta aims to shake up micro-finance in Indonesia. Blossom‘s concept can be said to be breaking ground: it operates on Bitcoin and targets the global Muslim community. Blossom collects money from investors around the globe. Blossom does not hand down the funds to business owners directly, but via an experienced microfinance institution on the ground. After a 12-month investment cycle, Blossom collects profits from the microfinance institutions and distributes them back to the investors. Blossom expects returns in the range of 7.5 to 12.5 percent, and itself takes a 20 percent cut on the returns. All of its money transfers are based on Bitcoin.

With the registered retirement savings plan (RRSP) deadline on March 2nd, many Canadians are wondering and worrying about where to invest their money. An RRSP is registered with the Canadian government. In effect, it's a special bank account used to save up for retirement. This account is made up of investment products, such as stocks, bonds, and mutual funds that allow savings to grow over time. It's up to individuals to choose what investment products to have in their RRSPs. Unlike regular investment accounts, money inside an RRSP is tax-sheltered, meaning that it doesn't get taxed like regular income or investments. The challenge for Canadian Muslims is to know the nature of their investments to ensure their investments are halal.

The Central Bank of Bahrain (CBB) in cooperation with the Supreme Council for Women (SCW) hosted a roundtable discussion on the "Challenges Facing Women in Reaching Positions of Authority in the Financial Sector" on the 29th of April 2015. The session brought together leading female figures from the industry to share their experiences and insights into the obstacles that remain for women in climbing the corporate ladder. The roundtable was the first in a series campaign of activities to celebrate and promote the role of "Women in the Financial and Banking Sector" which leads to the main conference on November 30th 2015 under the theme ‘Women in Finance and Banking’.

Turkey is a test-tube study in how emerging market (EM) countries reach developed status. As such, it is subject to the interactions between developed and emerging markets, including hot money capital flows, currency wars and the struggles with interest rate policy and inflation. The good news is that the banking system is functioning well and inflation is contained. The bad news is that Turkish financial markets are now subject to many of the adverse trends affecting all EM economies around the world. The central bank is under pressure from politicians to cut interest rates and devalue the Turkish currency to promote exports and tourism.

Abdulaziz al-Ghurair, one of the United Arab Emirates’ most prominent businessmen, is leading calls for regulations across the Gulf Arab region to smooth the transfer of ownership of family businesses after the death of the founder. Ghurair, the billionaire chief executive of Dubai-based lender Mashreq and chairman of conglomerate Al Ghurair Investment, among his titles, would like to see the introduction of wills and trusts that are compliant with Islamic principles to allow the passing of control to future generations. A draft law will be submitted to Gulf policymakers this year that will include rules governing concepts such as Islamic family trusts and family ownership.

The Islamic version of a Real Estate Investment Trust (REIT) has to follow certain principles and rules in accordance with Shariah law. Malaysia was the first country that issued guidelines for Islamic REITS as early as in 2005, whereby a Shariah committee has to assess any property to be acquired by an Islamic REIT towards non-permissible activities of prospective tenants and sub-tenants. However, a certain quota of non-permissible activities is sometimes tolerated. The Middle East also started to adapt the new concept of Islamic REITs. However, the products have not developed as rapidly as in Southeast Asia and are still more or less handled as a regional collective investment scheme.

Speculation that the Turkish government may be closer to relinquishing control of Bank Asya has stoked its stock to a record gain. Bondholders proved harder to please. Shares of the Istanbul-based lender soared more than 50% after it said most Class-A holders provided documentation to the regulator proving they’re qualified to be founding partners. The bank’s Islamic bond climbed about 3% to 61.474 cents on the dollar in the week of April 12. Government control is considered positive for bondholders. The bank’s Islamic bond due March 2023 jumped 38%, the most on record, when Turkey’s agency responsible for resolving failed banks seized control in February as investors bet authorities wouldn’t let the lender default.

Turkish participation bank Kuveyt Turk has sold a debut deal of ringgit-denominated sukuk and has applied for a new 1 billion lira ($376 million) deal, as the lender looks to secure lower-cost financing. Kuveyt Turk, 62 percent owned by Kuwait Finance House , will sell the lira-denominated deal to qualified investors via its asset-leasing company, KT Kira Sertifikalari Varlik Kiralama. The ringgit five-year sukuk pays an annual yield of 5.8 percent, with the proceeds swapped into dollars to reduce the bank's funding costs to 4.4 percent. The 300 million ringgit sukuk is first issuance under a 2 billion ringgit programme.

A forensic audit of Nigeria’s state oil firm released on Monday confirmed the accusation by Emir Muhammed Sanusi that the NNPC withheld about $20 billion that it ought to have remitted to the national treasury. The report ordered released by President Goodluck Jonathan, more than two months after it was submitted by PriceWaterHouseCoopers confirmed that the NNPC illegally expended $18.53 billion on operational costs, kerosene and petrol subsidies, without authorisation from the National Assembly. Part of the money was also withheld by an NNPC subsidiary, without National Assembly authorisation.

It seems to be getting harder and harder to find a news story about the Middle East and North Africa (MENA) that doesn’t fall within the narrow narrative of disorder and political violence. From state collapse in Libya and the tragic conflict in Syria to the geopolitical flashpoint in Yemen, the headlines from the broader region make for bleak reading indeed. These challenges are real and they are significant, but there is another story about the region that remains under-reported. It is a story of dynamism and entrepreneurship, and it’s one of how private capital is playing a critical role in creating new realities for the region and its people.

The BNP Paribas - INCEIF Centre for Islamic Wealth Management (CIWM) and Labuan International Business and Financial Centre (Labuan IBFC) held their 2nd annual Islamic Wealth Management Symposium on 28 April 2015 in Kuala Lumpur, aimed at raising national awareness of Islamic wealth management, particularly Islamic trusts and foundations. The Symposium also marked the public unveiling of Labuan IBFC's international waqf foundation, the first Islamic foundation designed with the international market in mind. The Symposium attracted more than 150 delegates. A total of 12 speakers and panelists ranging from regulators, Islamic scholars, academics and industry practitioners, convened to discuss Islamic wealth management.

London-based European Islamic Investment Bank said on Tuesday it plans to close a proposed 20 million pound ($30.5 million) tender offer for its own shares in May as it transitions into an asset management business model. In February, the sharia-compliant firm said it had received regulatory approval to relinquish its banking licence and is now an investment firm regulated by the Financial Conduct Authority. EIIB plans to invest $1 billion in a mix of property transactions over the next 24 months. It held $1.1 billion in assets under management as of December. The firm posted a pre-tax operating profit of $2.3 million in 2014 compared with $2.23 million profit a year earlier.

The Islamic Financial Services Board (IFSB) has announced the release of a set of indicators on the financial soundness and growth of the Islamic banking systems in 15 member countries. This initiative is in line with Article 4 of the IFSB Articles of Agreement. The indicators, called Prudential and Structural Islamic Financial Indicators (PSIFIs) capture information on the size, growth and structural features of Islamic banking systems and on their macroprudential condition by looking at measures of their capital, earnings, liquidity, and exposures to various types of risks. They also cover the indicators on capital adequacy and liquidity based on newly issued IFSB Standards to complement international regulatory reforms under the Basel III regime.

European Islamic Investment Bank plc ('EIIB-Rasmala'), the London-listed asset management and financing group focused on the growth markets of the Gulf Cooperation Council (GCC), has announced its full year financial results for the year ended 31 December 2014. The total operating income was US$16.4 million compared to US$15.4 million a year before. Profit before tax from continuing operations was US$2.3 million (2013: US$2.23 million). Total assets under management (AUM) stood at US$1.11 billion. EIIB-Rasmala expects to invest about US$1 billion in broad mix of property transactions and grow the leasing and alternatives business to over US$1.5 billion in the next 24 months.

Banks are tightening lending conditions for small, private companies in the Gulf - a sign that the region's economies are not escaping damage from the plunge of oil prices. Heavy state spending is keeping economies growing strongly. Rather than borrow domestically or run down their deposits at local banks, governments of GCC countries such as Saudi Arabia are covering much of the budget deficits due to cheap oil by bringing home some funds stored abroad. So for many companies in the Gulf, it's still a borrowers' market for loans - credit is easily available at rock-bottom rates. The exception is small firms that do not have the advantage of shareholding links to governments.

Despite a robust mobile money market, six years after the launch of the first branchless banking product, the number of active, registered mobile money accounts in Pakistan stands at only 0.4% of the population. The percentage of users of mobile money products, however, is 7%, which means that the majority of the customers prefer to transact over-the-counter via an agent. However, true financial inclusion only results when customers open their own mobile money accounts. It is only then that customers can avail of more advanced financial products such as insurance, savings, and credit. Hence, mobile money accounts are an important indicator for financial inclusion.

The Thomson Reuters Global Sukuk Index is at 118.66237 points, up from 117.52672 at the end of last month and 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 117.64818 against 116.23259 at end-March and 113.69014 at end-2014. Sukuk in the pipeline include: Malaysian plantation company Kuala Lumpur Kepong will raise up to 1.6 billion ringgit from Islamic bonds. Malaysia Building Society plans its third issue of covered sukuk worth 900 million ringgit. PT Bank BNI Syariah, the Islamic subsidiary of state lender PT Bank Negara Indonesia, plans to issue sukuk mudaraba with a three-year tenor worth up to 750 billion rupiah ($58.3 million) in an offer on May 18 and 19.

Takaful Insurance Company has on Monday opened its doors in Somalia’s northeastern state of Puntland for the first time in over two decades, ushering in what analysts believe boost for the country’s fledgling insurance industry. Takaful Somalia head Omar Haji Hussein revealed that they would provide indemnity against a lot of losses facing business community. In support of purity and certainty, prominent cleric Sheikh Mohamud Haji Yusuf praised the opening of Takaful in Puntland. Opened in Mogadishu in December 2014 at first, Takaful insures cars, buildings and other essential properties for risks.

Malaysia’s International Centre for Education in Islamic Finance (INCEIF), the only educational institute dedicated to Islamic finance, is seeing a surge in female students from around the world, helping fill a shortage of experts in a global industry set to double to $3.4 trillion by 2018. The industry will require one million professionals worldwide by 2020 to meet the shortage of experts to vet products for conformity with Shariah law and for innovation to spur growth. The institute is seeking sponsorships to increase the ratio of females to 50 per cent from 36 per cent. There are already a number of female Islamic bank executives.