IslamicFinance.de

Saudi real estate firm Dar Al Arkan (B+ from S&P) has launched a $300 million, three-year sukuk offering at 6 percent. The Reg S only deal is expected to price later on Wednesday via Bank Al Khair, BAML, DB, Emirates NBD Capital and GS. The sukuk al-wakala will mature on Nov. 25, 2016.

EIIB-Rasmala, a venture between London-based European Islamic Investment Bank and Dubai's Rasmala Group, has launched a sharia-compliant trade finance fund as a low-risk investment product. The Cayman-domiciled fund is linked to emerging market trade transactions and the firm hopes to attract $100 million into the fund over the coming year. The fund targets a return of 4 percent with low volatility as the firm continues to expand its sharia-compliant product range. Since last year, EIIB-Rasmala has launched three Islamic funds including a leasing fund and a sukuk fund seeded with $25 million of the company's own capital.

Thomson Reuters has released the findings of its second consecutive Sukuk Perceptions and Forecast Study. Overall, the study found that the potential demand and supply pipeline of sukuk is expected to grow. Despite this increase, demand is still expected to outstrip supply substantially until 2014, when it is predicted supply will begin to outpace supply. On the demand side, investors expect 50 percent of their portfolios to be allocated to Islamic finance investments, out of which 25% to 35%, would be allocated to sukuk. MENA investors overwhelmingly prefer USD sukuk. Oman is viewed as the most attractive emerging Islamic finance market for sukuk investment. The study will be launched at the Global Islamic Economy Summit on 25th & 26th November 2013 in Dubai.

According to Thomson Reuters Global Islamic Asset Management Report 2014, assets under management of GCC Islamic funds have been increasing, post global financial crisis and the 2011 political turmoil in the Arab world. However, assets under management (AUM) have been decreasing for the global Islamic fund industry. While Islamic funds globally have doubled since 2007, the AUM have marginally gone up in the last few years, and have in fact declined 1.7 per cent in 2013. Of the total $62 billion assets under management, Malaysia, Saudi Arabia Luxembourg comprise the top three Islamic fund hubs. The full report will be released next week at the Global Islamic Economy summit in Dubai.

According to the African Development Bank (AfDB), Nigeria has an infrastructure deficit of $360 billion. However, the adequate physical infrastructure in the country has been identified as one of the major factors to support sustained and broad-based strong economic growth. Addressing these challenges will require a substantially larger annual level of investment in infrastructure. However, access to finance, to fund the development of most of these critical sectors has remained a challenge. One of the alternatives today is Islamic finance. Moreover, Islamic finance products have the capacity for ensuring financial inclusion of significant segment of the population.

The Accounting and Auditing Organisation for Islamic Financial Institutions ( AAOIFI ) hosted the two day AAOIFI -World Bank Annual Conference on Islamic Banking and Finance 18-19 November in Manama, Bahrain. Discussions at the conference focused on international accounting standards for Islamic finance, the dynamics of auditing and risks, incorporation of Shari'ah principles in legal documentation, further innovation on Takaful operations and products, and continuing development of Islamic venture capital. Following the Conference, AAOIFI will hold training courses for its Certified Shari'ah Adviser and Auditor (CSAA) and Certified Islamic Professional Accountant (CIPA) professional development programs 20-23 November 2013.

Vision Financial Holdings Limited has shown its intention to acquire 49.11 percent or 492 million shares of Meezan Bank Limited (MEBL), subject to the approval of regulatory authorities. The terms of transaction are yet to be known; however, initial estimates suggest that the deal is likely to settle at a price of Rs47-50/share at premium of 25-30 percent at the current market price. The total size of the deal will be between $214 and $230 million. Interestingly, Noor Financials Investment Limited currently holds 49.11 percent share of Meezan Bank, which is the same proportion required by the acquirer. Therefore, probability of share transfer between the two parties is high. Meezan Bank Limited is currently trading at 136 percent premium to its book value.

Bangladesh's International Finance Investment and Commerce Bank (IFIC Bank) has decided to become a full-fledged Islamic bank. The proposal has already been approved by the bank's board, and the government, being the bank’s majority shareholder, has also given clearance. The conversion is now subject to approval from different regulators. Shah A Sarwar, managing director of the bank, could not give a definite time on how long the conversion process would take. The government holds 32.75 percent of the bank, directors and sponsors 11.31 percent, institutions 33.91 percent, foreign investors 0.28 percent and the rest 21.75 percent is held by the general public.

Al Madina Investment (Al Madina) has organized an event to celebrate the issuance of the first sukuk in Oman. Al Madina acted as the Principal Advisor, Joint Lead Arranger and Joint Lead Manager for the OMR50 million Sukuk Al Ijarah issued by Modern Sukuk on behalf of Tilal Development Company (TDC). The proceeds from the sukuk will be utilized for the expansion of TDC's flagship project - the Tilal Complex. In the event, Al Madina honors the stakeholders and also the participants in the sukuk by presenting them with an award for their contribution to successful issuance of the sukuk.

According to Thomson Reuters' Islamic Finance Development Indicator (IFDI), Saudi Arabia has the second largest Islamic finance sector, after Malaysia, with Islamic finance assets in excess of $270 billion in 2012. Saudi Arabia was also in the top ten countries for educational infrastructure. Moreover, the kingdom performed well in terms of awareness and Sharia governance. However, it did not fare as well in terms of governance. Saudi Arabia has yet to introduce dedicated regulations for Islamic finance institutions and continues to score poorly in terms of financial disclosures compared to its peers. The IFDI was developed in collaboration with the Islamic Corporation for the Development of the Private Sector (ICD) and will be officially launched at the Global Islamic Economy Summit.

Emirates Islamic Bank has launched a four year Wakala investment option for customers, with an expected profit rate of 2.57 per cent per annum. Available on investment amounts ranging from AED 100,000 to AED 5 million, Emirates Islamic Bank’s latest product closely follows the launch of the three-year special Ramadan Wakala, introduced earlier this year. The four year Wakala investment option differs from conventional Wakala investments, with the profits being paid out on an annual basis to customers. Faisal Aqil, the bank's Deputy CEO - Consumer Wealth Management, said that customers are encouraged to develop a culture of saving through the launch of the bank's Sharia-compliant savings products.

Bank Negara Malaysia’s (BNM) recently announced concept paper on life insurance and family takaful (LI and FT) may be the insurance sector’s re-rating catalyst. The proposals made in the paper focus on ensuring sustainable operating costs, enhancing disclosure and improving policyholders’ value proposition, which should collectively boost penetration, especially in the mass market. Key measures in the recent proposals include the introduction of the minimum allocation rate to replace commission/operating cost limits on investment-linked products, promoting distribution channels and encouraging greater product transparency with enhanced disclosure requirements and web aggregators. The outcome is considered a win-win for customers and insurers.

Jaiz Bank has appointed Muhammad Nurul Islam from the Islami Bank Bangladesh Limited as its new managing director/chief executive to steer its affairs and better position the bank. He takes over from Hassan Usman, who had been acting managing director of Jaiz Bank since April. Nurul Islam has vast knowledge of non-interest Islamic banking experience garnered for over three decades. He holds Masters in Business Administration from the Institute of Business Administration (IBA), University of Dhaka in 1982, with a major in finance and has attended several professional training and seminars. Moreover, he is a member of many professional associations, including Life Member, Association of the Bankers’ Bangladesh.

Saudi Electricity Co plans to issue Islamic bonds denominated in both riyals and dollars in coming months and has reportedly selected banks to arrange the offers. The monopoly utility has large fund-raising needs as it looks to expand generation capacity to keep up with the kingdom's rapidly growing power demand. SEC has chosen the investment banking arm of Banque Saudi Fransi and HSBC's Saudi Arabian unit to arrange the riyal-denominated sukuk. This transaction is expected to launch as early as Thursday. HSBC will also be involved as an arranger of the dollar-denominated sukuk, along with Deutsche Bank and JP Morgan Chase. This sale is expected in early 2014.

The first sukuk proposed by Osborne will only be valued at £200m, but it would make Britain the first non-Islamic country in the world to issue sovereign sukuk. However, ensuring that the sukuk are watertight in their compliance with sharia will be the acid test for Osborne. If they’re not, they are rendered pointless and a huge waste of time and money. If Osborne’s sukuk have a successful debut, it will herald a greater level of fiscal openness and consensus between the Islamic world and Britain. But it is highly unlikely this policy will make a difference to the life of the average British Muslim, and issuing a few culturally-catered bonds will not even begin to address the rampant inequality and instability of a British economy.

Somaliland President Ahmed Mohamed Silanyo has received a delegation from Islamic Development Bank (IDB) as the president congratulated the delegation for the ongoing development projects run by the Organization in the country. The delegation from the IDB has been in the country for the last 4 days. The Islamic Development Bank is currently implementing several ongoing development assignments including projects relating enhancing Hargeisa main hospital's infrastructures, as well as, Hargeisa and Gabiley Orphanage centers. The delegation and the President of Somaliland have agreed to continue expanding their co-existance and make their cooperation more effective than ever before.

Takaful Oman Insurance, one of Oman's first takaful insurance providers and still under formation, has announced its initial public offering (IPO). The promoters are offering 40mn shares, each priced at 102bz - with a par value of 100bz and 2bz of issue expense. The IPO, which opened for subscription on October 30, will close on November 28. Takaful Oman is promoted by ONIC Holding, National Investment Funds Co ( Nifco ), Oman Investment Corporation (OIC); National Bank of Oman, Blue Door Investment Services LLC, bank muscat, and T'azur Takaful insurance company, one of the top five takaful companies in Kuwait.

Malaysia's Royal Award for Islamic Finance commences the third global search to honour an exceptional individual in the field of Islamic finance, with the opening of nominations. An independent seven member international jury will select the deserving individual. The selection criteria encompass both qualitative and quantitative aspects, including financial innovation and pioneering work, exceptional leadership, adoption and acknowledgement within the industry, and inspiration and influence towards future progress and development of Islamic finance. The closing date for nomination is 31 January 2014, and interested persons and parties can submit their nomination online via the website award.mifc.com or via email RAIFSecretariat@seccom.com.my.

Global Donors Forum 2014
“CELEBRATING PHILANTHROPY IN EMERGING ECONOMIES”
Gaylord National Resort and Convention Center
April 13-16, 2014

CALL FOR PRESENTATIONS
Deadline: December 10, 2013
Dramatic shifts in the political and economic landscape of many low and middle income countries in recent years have resulted in the emergence of a new class of wealthy individuals. This has led to a rapid growth in private and family foundations in many emerging economies. But the benefits of economic liberalization have not always resulted in an equal distribution of wealth, and income disparities have only been exacerbated by the global economic crisis. This surge in social and economic inequality pleads the need and purpose of philanthropy, both individual and institutional, to be re-examined.

No longer is society looking outside their communities and national borders for change. Whereas once, Aid was the only option, now regional philanthropy is increasingly positioning itself as the “game changer”. This sliding dichotomy from Aid to philanthropy has already begun and nowhere is it more pronounced than in the “Emerging Economies”

Ladies and gentlemen,

One of the highlights of this year’s Euro Finance Week is the Frankfurt MENA Finance Conference on November, 21st 2013.

The speakers of the panel ‘What does Germany gain through Islamic Finance?’ are:

Dr. R. Ahmet Albayrak, Executive Vice President, Kuveyt Türk Participation Bank Inc.

Horst Bennin, Founding Managing Partner, Alp View Capital Partners GmbH

Dr. Manfred Dirrheimer, Chairman of the Board, FWU AG

Dr. Johannes Engels, Banking Supervisor for International Cooperation, BaFin

Dr. Ivo Schwartzkopff, Member of the Board, StarCapital AG

The host of this panel will be Zaid el Mogaddedi, Founder and Managing Director, Institute of Islamic Banking and Finance (IFIBAF).

Dr. R. Ahmet Albayrak will deliver a speech about ‘Opportunities in the European Financial Markets’ beforehand in the conference.

The conference language is English.

The event is without charge.

Location:

Congress Center Messe Frankfurt
Ludwig-Erhard-Anlage 1
60327 Frankfurt am Main

If you are interested to participate, please send an e-mail (company/name/e-mail address) to info@kuveytturk.de