IslamicFinance.de

Burj Bank Limited was formerly known as Dawood Islamic Bank Limited (DIBL). The bank officially commenced operations in April 2007 and was renamed Burj Bank Ltd. in July 2011. Burj Bank has a diversified range of Shariah compliant funded and non-funded products and services aimed at facilitating both individual and corporate customers. Besides, the bank also offers investment and corporate advisory services. Burj Bank was quoted the best Islamic bank by world financial magazine in 2013. After incurring losses for three consecutive years since CY09, CY12 was the year when the bank made an after tax profit of Rs 84.6 million. In 2012, Burj Bank become a dominant player in fleet financing business and is regarded as a top player in this segment. Industry insiders strongly urge the development of an active Islamic money market via short-term sovereign instruments and secondary market via Islamic repo agreements.

Maybank Islamic Bhd, the Islamic banking arm of Malayan Banking Bhd (Maybank), aims to expand to all Asean member countries that Maybank has a presence in. According to its CEO Muzaffar Hisham, the bank intends to continue its regional expansion to other Asean nations after focusing on Singapore and Indonesia as part of its internationalisation initiative. Muzaffar said the bank has invested a lot of time and effort in the expansion opportunities, which were in line with the aspiration of Bank Negara Malaysia to internationalise Islamic finance. The bank grew by an average of 25% per year, held 30% market share locally and contributed 30% to the loans portfolio of Maybank domestically. Up to the first quarter of this year, Maybank Islamic has 4 million depositors with a deposit value of RM70 billion.

Md Asaduzzaman Khan has recently been reappointed as managing director of IIDFC. A career central banker, Khan joined IIDFC after taking voluntary retirement as executive director of Bangladesh Bank in 2008. He is an MA in economics from Dhaka University and an MA in banking and finance from the University of Wales, UK. He was appointed as administrator of the then Oriental Bank Ltd (now ICB Islamic Bank Ltd) in July 2008. He was also the managing director of the security printing press of the central bank at Gazipur. He is also a director of ICB Capital Management Ltd, a member-cum-director of IIDFC Securities Ltd and a former director of the Dhaka Stock Exchange.

Saudi Arabian dairy producer Almarai Co. has chosen four banks to arrange the sale of a hybrid sukuk. The firm has mandated the investment banking arm of Banque Saudi Fransi, BNP Paribas, HSBC's Saudi Arabian unit and Standard Chartered to arrange the transaction. The offering, which is not imminent, is likely to be denominated in Saudi riyals, although the company could opt to issue in dollars instead. Almarai's Chief Financial Officer, Paul Louis Gay, told reporters in May it could opt to issue a hybrid Islamic bond in the next 12 months to help fund its ambitious growth plans, with a target amount of around $500 million. However, Gay said in May it was looking to raise the cash from international investors, rather than the local debt market. Earlier this month, Almarai posted a 4.9 percent year-on-year rise in second-quarter net profit on the back of growth in its core business.

HH Sheikh Hamdan Bin Mohammed bin Rashid Al Maktoum has launched the Dubai Center for Islamic Banking and Finance as a new step in support of the efforts towards establishing Dubai as the world's capital for Islamic economy. The centre is a collaboration between the Hamdan Bin Mohammed e-University and the emirate's initiative: 'Dubai: Capital of Islamic Economy'. The new centre will provide support to the initiative through three academic programs on human resources development, scientific research and community service. In the area of Human Capital Development, the Centre offers programs and courses. On the research front, The Centre conducts and facilitates research to advance the professional and theoretical foundation for Islamic Banking and Finance.The Center will also play a role in widening access to Islamic banking and finance education to the wider community.

Bank Nizwa, Oman's first full-fledged Islamic bank, has received an investment banking licence that will allow it to manage funds and issue instruments such as Islamic bonds. The bank launched operations in January and is gradually rolling out a range of sharia-compliant products, aiming to grab a 5 percent share of the country's overall banking market in five years. In December, Oman became the last country in the six-member Gulf Cooperation Council to adopt Islamic finance, issuing extensive regulations for the sector.

Bahrain-based Banader Hotels Co, has signed a BD 18 million (US $47 mn) project finance deal with Kuwait Finance House, Bahrain to raise funds to complete construction of the Banader Rotana Hotel in Manama. Work on the 28-storey hotel and furnished apartments has already begun, with the finished property to comprise of 251 rooms including private suites. According to Banader Hotel Co. Chairman Abdulla Buhindi, the financial crisis affected many real estate projects in the region, where some of them ceased production due to the lack of funding. The KFH Bahrain funding will provide the finance to resume work on the Banader Rotana Hotel. The Banader Rotana Hotel will be located in close proximity to Bab Al Bahrain, Bahrain Financial Harbour and commercial markets.

The No Interest Loan Scheme (NILS) New South Wales (NSW) Conference 2013 will take place in Sydney, Australia on October 22-23, 2013. The event will highlight NILS and microfinance topics including energy efficiency programs, impact investing and social innovation, strategies to facilitate best practices in microfinance, and integration, collaboration and consolidation of NILS in microfinance institutions and community organizations in eight territories of Australia. NILS is a community-based program that provides interest-free loans for individuals or families living on low incomes to purchase essential goods and services in Australia.The cost to attend the two-day event is AUS 360 (USD 335), additional discounts are available. For more information visit the event website http://www.nilsnsw.org.au/latest-news/events.

The Central Bank of Nigeria (CBN) reportedly has partnered with the Bill and Melinda Gates Foundation (BMGF) to form a new initiative called “Geospatial Mapping of Financial Institutions” that aims to increase the financial inclusion of low-income Nigerians. The new service will map all financial access points in Nigeria, including every microfinance institution and off-site ATMs, that Nigerians will be able to see online or on their mobile phones. The program reportedly will also enable the government and banks to determine whether certain regions of the country lack access to an appropriate number of financial services. BMGF will provide a monetary grant of an unspecified amount in order to pursue this goal. This new project is part of CBN’s initiative, the Nigeria Financial Inclusion Strategy (NFIS). The amount of monetary support that CBN has contributed to NFIS is unavailable.

Investment Dar Co. will reduce borrowings after creditors holding 30 percent of its debt signed up to a new loan deal backed by assets including luxury carmaker Aston Martin. The lenders to the Kuwaiti company agreed to a cash payment totaling 5.7 percent of their debt and a portion of a new Islamic loan equal to about 44 percent. While the new deal represents a writedown of 50 percent it gives creditors more security over the assets. Nine assets will back the new facility, with Investment Dar’s 34 percent stake in Aston Martin the most significant. Creditors not taking the offer retain their claims under the approved restructuring plan. Lenders who have taken the settlement will become 15 percent shareholders in the company holding the assets, while the new $437 million Islamic loan will be repaid through unscheduled asset sales and has a tenor of up to seven years.

Representatives from Azzad Asset Management met with His Excellency Ebrahim Rasool, Ambassador of the Republic of South Africa to the United States, to discuss potential investment in South Africa as part of the portfolio held by the Azzad Wise Capital Fund. The Azzad Wise Capital Fund is America's first halal fixed-income mutual fund and invests in Sukuk as well as deposits and notes from Islamic banks that comply with specific socially responsible and halal financial guidelines. In recent years, South Africa has made strides in Islamic finance although the Muslim community represents only 3% of the population. Ambassador Rasool noted that South Africa's regulatory and legislative structures, strict risk management frameworks, as well as governance and compliance structures make it a possible springboard for companies into the rest of the continent.

ICIEC the trade takaful arm of the IDB Group published its quarterly newsletter for free download at the link below.

New regulations introduced by the Qatar Central Bank (QCB) in mid-June will curb local banks’ investment options, potentially making sovereign bonds more appealing at the expense of some private sector options. Under the new regulations, with which lenders must comply within six months, equities and bonds can account for up to 25% of a bank’s capital and reserves, although debt issued by the government and national banks are exempt from the limit. The cap had been previously set at 30%. The new regulations also limit the amount banks can place with individual companies and unlisted securities, establishing a maximum of 5% of capital and reserves for foreign investments and 10% domestically. The cap for total foreign equities is set at 15%. These new rules will apply to both conventional and Islamic lenders.

The NCA approved a bill that will legalize Islamic bonds or Sukuk on last Wednesday. The voting came out with a smashing majority of 102 votes against 3. The new law is likely to stimulate investments coming from the rich region of the Gulf and and close in the gap of the budget deficit. Tunisia's budget deficit is likely to raise to $3.2 billion for the incumbent financial year.

Banc ABC’s Head of co-operate Services, Zulfikar Chando has pointed out that Islamic banking would fuel investment and spending which will in turn support national economic development. The demand for this service with no interest rates shows the need to implement it and make it accesible, he added. BancABC also announced that for the upcoming annual pilgrimage to Mecca later this year in October, the bank has prepared special Visa cards at all their branches to ease the preparation of flight, accommodation and other details of the Holy trip. The service ensures ease and safety while travelling to any destination world wide, Zulfikar Chando explained that clients can choose between prepaid BancABC VISA cash card and BancABC Visa travel money, specifically made for travelling.

Sukuk issuance fell in pre-Ramadan June and growth momentum is expected to ease in the coming months after yields surged to a 25-month high, says the Malaysia Islamic Financial Centre (MIFC). The primary sukuk market this year has outpaced the previous year every month since January 2013, except June, which saw a noticeable slow down, says MIFC's second-quarter report. Momentum is expected ease as investors weigh US monetary policies in the coming months.

Hong Kong has reiterated its desire to become a hub for Islamic bonds, finally changing its tax laws to be much more sukuk friendly. But with no natural investor or issuer base for the product, and rising competition from better suited Asian countries, Hong Kong will only ever be an also-ran.

Turkish Prime Minister Tayyip Erdogan urged Turks not to use credit cards, accusing banks of locking people into poverty with excessive fees. He said banks were growing rich on high commissions and urged people to live within their means. Erdogan and members of his government have accused speculators and a "high-interest-rate lobby" of stoking volatility in financial markets to make a quick profit at the expense of the Turkish economy. The comments opened a new front in the verbal attacks Erdogan has periodically made against the financial community, which is betting the country's central bank will raise borrowing costs next week to steady the ailing lira currency. In fact, the central bank may raise rates next week to stem a slide in the Turkish currency which would make the lira and lira-denominated assets such as Turkish government bonds more attractive to foreign investors, as well as pushing up commercial banks' lending rates.

Household debt poses a growing risk to the financial sector in the United Arab Emirates (UAE). As of June 2012, household debt totalled over US$114 billion, which translates to over US$95,000 in debt per household. 48% of UAE citizens have monthly loan repayment obligations that exceed their financial means. The UAE represents roughly 67% of the consumer debt in the GCC. One reason for the disparity is the difference in lending regulations. The positive news is that the banking sector in the UAE and GCC in general retains a high degree of liquidity. In conclusion, household debt remains an issue of concern in the UAE, and government policy should be directed towards the causes rather than the symptoms. Issuing debt relief must be coupled with stricter regulations on household lending, so that excessive lending and defaults can be prevented.

Qatar-based Barwa Bank has reported half-year profits of QR303.6mn, up 85% from the QR162.9mn recorded in the same period last year. Return on equity increased from 6.6% to 11%, with earnings per share rising from QR0.55 to QR1.01 on the back of a 10% increase in total assets to QR27.8bn. The highlight of the first half has been the high level of activity in corporate banking as major infrastructure projects have started to bear fruit. Also, contributing ware the strong performances in the bank’s treasury and trading businesses. Barwa Bank has also seen selective expansion in its retail footprint with two new high-profile branches nearing commissioning and good response to its special outlets located in the Ministry of Interior and the Navy.