IslamicFinance.de

Indonesian Bank Muamalat has implemented Oracle FLEXCUBE Universal Banking to streamline its core business processes and to enhance productivity. Oracle FLEXCUBE is now live across all of Bank Muamalat's branches and e-channel network (ATM, EDC, etc) including mobile branches. It covers its retail and corporate banking business, including treasury and trade, all in compliance with Shariah Laws. The implementation was completed well within time and within Budget. By implementing Oracle FLEXCUBE Universal Banking, the institution has been able to improve business processes and significantly reduce processing times required for financial and administrative transactions. FLEXCUBE has helped to support 24-hour banking operations as well as enable enhanced customer insight and simulations to deliver excellent customer service.

The shift in global banking is not a trend, and the challenge for all of us is to bridge the gap in financial practice and seize the opportunities that lie ahead, bringing ethics back into finance.

Thomson Reuters and Abu Dhabi Islamic Bank (ADIB) are partnering to launch the world’s first Ethical Finance Innovation Challenge and Awards (EFICA). In the dawn of a new economic world, these awards are designed to inspire and recognise a fresh way of thinking by promoting some of the most dynamic, innovative ideas and solutions around integrity and growth.

In May, John Kerry, the US secretary of state, announced a US$4 billion plan to kick-start Israel-Palestinian Territories peace talks. Sir Ronald Cohen has been arguing exactly that since 2003. He has direct experience of the suffering and dislocation conflict can cause in the Middle East because he and his family became penniless refugees from their home in Cairo after the Suez conflict. In Jordan, apart from Mr Kerry's initiative, there was another example of a strategy towards peace in a business framework with the "breaking the impasse" plan, aimed at getting Israeli and Arab business leaders in the region working together. Sir Ronald was involved in that from its inception. His plans have had significant beneficial outcomes in local projects to reduce prisoner recidivism, tackle homelessness and illiteracy. Most recently he was the chairman of Big Society Capital, the United Kingdom's first social investment bank.

Islamic microfinance providers represent a growing and important niche within the market of financial services specifically targeting the poor. Over the last decade, the microfinance sector has built up the infrastructure necessary to carry out such analysis. One piece of that infrastructure, MIX Market, provides access to current and historical financial and social performance information on more than 2,100 microfinance institutions serving some 94 million clients worldwide. MIX Market users can track the performance of other institutions and see impacts of policy interventions and other aspects. The microfinance industry as a whole stands to benefit from gathering this relevant, comparable information on Microfinance through MIX Market.

The Islamic Development Bank's board of executive directors has approved new finances worth $790 million to carry out different projects in member countries. The board agreed to give $220 million to the renewable energy program of the Development Bank of Turkey and $200 million for an electricity project in Damietta, Egypt. The new finances approved by the board will also benefit Morocco, Uganda, Pakistan, Burkina Faso, Mozambique, Yemen, Togo, Jordan and Mali. It has also agreed to provide grants to educational projects for Muslim communities in Kenya, Nepal and Congo. Moreover, the board discussed the decision taken by IDB governors to increase the bank's capital from $45 billion to $150 billion and arrangements to celebrate the bank's 40th anniversary.

There is a huge demand for Sharia-compliant products but there are not enough quality players in this space with the correct ability to provide Sharia solutions, according to Akber Naqvi of alternative investment firm Al Masah Capital. He was speaking at the Opalesque Gulf Roundtable which took place in Abu Dhabi on May 20th, 2013. He further said that his company is looking for the right partners who can come up with innovative Sharia solutions, and that there is a gap in the market for that. Sharia-compliant specialists and individual specialist asset managers should expand in this area, he added. Christian Stauffer, founder and CEO of EuroFin Asia Group, noted that even in Islamic Finance, there is a demand for asset classes that demand for non-directional and non-correlated classes of asset.

Abu Dhabi Islamic Bank (ADIB), in partnership with Thomson Reuters, have launched global awards to recognize and reward innovation in ethical and Islamic finance. Presented in three categories: Islamic Finance Industry Development Award, Ethical Finance Initiative Award, and Lifetime achievement award; these awards are designed to inspire real change in the financial services industry by recognizing and rewarding innovation that can be put into practice. Entries will be accepted from any institution, research centre, group of individuals or individual interested in shaping the financial industry within an ethical framework, with prizes of up to US$100,000 offered. A short-list of nominees for three award categories will be announced in November this year.

Deloitte Touche Tohmatsu Limited (DTTL) and its member firm network have launched the Humanitarian Innovation Program, which will deliver two global pro bono projects for humanitarian organizations. The program launches at a time when humanitarian organizations are increasingly responding to a variety of disasters, requiring an immediate response with limited resources. Deloitte’s Program aims to deliver solutions to humanitarian agencies to help them during the preparation and readiness phases, which could ultimately help to strengthen the response of the local and international community, sustain livelihoods, and save more lives. The Humanitarian Innovation Program will be open to any humanitarian organization worldwide and DTTL will receive applications through July 2013. A panel will review the applications and select two pro bono projects which Deloitte member firms will begin work on in late 2013.

Middle Eastern debt issuance surged 40 per cent in the first half of 2013, the strongest period on record, according to new data released by Thomson Reuters. Debt raised reached $26bn, including $20.8bn of investment grade corporate debt in the first two quarters of the year, accounting for around 80 per cent of debt capital markets activity. In a further sign of a brighter outlook for the financial sector, debt capital markets underwriting earned banks $102m, more than double the income of the same period last year, and the best first-half performance ever, the report said.

Mr. Abdul Razak Abdulla Al-Qassim - Chairman of the Board of Directors announced that the Board has approved the Financial Statements for the period ended on 30th June 2013. The Bank registered BD2.4m as net profit for the first half of the year after deducting BD5.7m as provisions compared to a net loss of BD15.8m for the same period last year. The Board has taken provisions of BD5.7m as a precautionary step against any unforeseeable deterioration in asset values compared to BD15.9m for the same period last year. Net operating profit for the three months of the second quarter registered BD3mn compared with BD1.4m for the same period in 2012. These results are considered good considering the prevailing economic circumstances.

Dubai Duty Free (DDF) has successfully concluded the repricing of its $1.75bn debut facility arranged in 2012. The Repricing was well received by the market with support from its existing syndicate of international, regional and local banks, with several institutions also offering to increase their commitments as well as accepting the lower pricing. However, no new commitments needed to be allocated. Citibank, N.A., London Branch acted as sole co-ordinator and bookrunner for the Company in connection with this Transaction. DDF's goal is to increase sales this year to $1.8bn to grow sales to $3bn within five years.

Sources in the Ministry of Finance and Economic Affairs and the Tanzania Insurance Regulatory Authority (TIRA) confirmed that relevant authorities were working on the possibility of introducing Islamic insurance. It is still on preliminary stages but the process is reportedly going on well. Introduction of Takaful will be another milestone in development of the country's financial industry following its liberalisation over 20 years ago, through the Banking and Financial Institutions Act of 1992. The insurance industry is regulated by the Insurance Act, 2009. The latest TIRA market report shows that Tanzania insurance industry grew by 20.0 per cent to 344.7bn/- in 2011, from 287bn/- in 2010.

Nigerian Jaiz Bank has increased its branch network to ten, with the commissioning of its Katsina branch. The bank commenced operations with three branches in Abuja, Kaduna and Kano states on January 6, 2012, after it received licence from the Central Bank of Nigeria on November 11, 2011, to operate as a non-interest bank. The bank now has branches in Gombe, Maiduguri, Katsina, and two branches in Kano. The bank has also added two branches in Abuja, the Federal Capital Territory. The branches are located at the National Assembly and Wuse District. According to the chairman, board of directors of Jaiz Bank, Alhaji Umaru Mutallab, there are plans to open additional branches in Bauchi, Zamfara, Sokoto, Kebbi and Jigawa states and at the Bayero University Kano, Federal Secretariat Abuja and Zaria, before the end of year 2013.

Pakistan's central bank has adopted the "investment sukuk" guidelines of the Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). Issuers will have to comply with this global standard for sukuk, or face penalties. The action could help Pakistani issues attract investment by foreign institutions from the Gulf and elsewhere. Around the world, the industry commonly refers to AAOIFI standards but they are mostly used as guidelines rather than manadatory rules. Pakistan's regulators are rolling out new rules in an effort to increase Islamic banks' share of the total banking sector to 15 percent by 2017. In May, the country's securities commission established a sharia advisory board to oversee Islamic financial instruments, while last year it announced rules for sukuk, takaful (Islamic insurance) and Islamic deposits.

The Eleventh Harvard University Forum on Islamic Finance titled "Takaful and alternative cooperative finance: Challenges and Opportunities" will take place at the Harvard University, USA on April 26-27, 2014. The forum seeks to reassess and critically engage with issues of risk sharing, mutuality, solidarity, and socio-economic welfare in the context of a discussion about takaful and other types of cooperative financial solutions. Papers are requested in the following areas: MUTUALITY: CHALLENGES AND ISSUES; RISK-SHARING; MARKET PENETRATION: STRATEGIES AND ACTIONS; SOCIO-ECONOMIC BENEFITS. Find detailed information and deadlines in the attached pdf-file.

The Bahrain-based investment firm Tadhamon Capital acquired two assets within its prevalent Social Infrastructure Platform in the United Kingdom in the second quarter of 2013. The two transactions are valued at approximately £32 million (US$50 million) which brings the total value of the assets held under the Platform to £123 million (US$190 million). The first transaction was established between Tadhamon Capital and Maria Mallaband Care Group Ltd (MMCG) to forward fund the development of the £6.7 million 53-bed care homes in Gerrards Cross, Buckinghamshire (west of London). The second transaction builds on the Platform's existing strategic relation with McLaren Properties by arranging the acquisition of 251-bed Brunswick House student accommodation scheme in Cambridge at a value of £26 million.

The United Arab Emirates central bank has asked local commercial banks in the country to provide details of their financial exposure to Turkey by Tuesday. The aim is reportedly to review the investments. The UAE’s financial ties to Turkey have expanded in recent years because Gulf banks are looking to diversify out of the region’s oil-focused economy and are hamstrung by a lack of potential acquisitions at home. UAE banks have also increased their exposure to Turkish debt, particularly sukuk. Sales of Turkish sukuk to Gulf investors may increase further as Turkey expands its offerings. A new regulation limiting exposure to Turkey is not expected despite the UAE's central bank's action unless the data compiled exceeded the norm.

The President of the Republic of Suan, Field Marshal Omer Al-Bashir agreed to sell al-Neilain Bank to expatriates, confirming the state's interest and keenness to provide all facilities for expatriates to employ their money inside the country in support of the national economy. Al-Bashir noted that the economic situation in the country is moving to the better, despite all the talk about the large external migration. He said that gold native mining and extensive migration from African and Asian countries to Sudan, demonstrate that there is an economic activity in a way to improve the situation, hoping that expatriates will pay attention to investing their money in Sudan to support the economy. Al-Bashir said that the state supports livestock development by focusing on the export of meat rather than the export of live cattle, by building a modern slaughterhouse in this regard to take full advantage of the slaughtered animals.

The UK government's national savings scheme, NEST, recently announced that HSBC was its choice of fund manager for its Sharia investment mandate. Chris Gower, head of European consultant relations at HSBC, said the fund follows a quantitative passive method. What is unusual it that the fund can have no exposure to financials. This practice leads to the Islamic index being overweight in the oil and gas sector and the healthcare sector. In terms of expectations of the fund Gower explains that HSBC works with a large number of UK defined contribution (DC) pension schemes. It opens up an investment universe to investors who would maybe otherwise not have the possibility to save for their retirement. Gower says the fund is looking forward to working together with NEST.

The Hamas government relies heavily on the taxes and tariffs imposed on goods flowing through the crossings with Israel and the tunnels with Egypt to cover monthly costs and payments for governance. The Hamas government taxes the majority of the Egyptian products to raise revenue, while the taxes on the Israeli supplies, including basic goods, go to the government in Ramallah. Now, the supply of goods smuggled from Egypt through underground tunnels has nearly come to a halt, severely exacerbating the economic hardship already being suffered by the Palestinian residents of the Gaza Strip. Tax receipts from goods entering through the tunnels account for about 40% of the government's general revenue. Thus, as a result of the tunnel closures, the government has been forced to borrow from the National Islamic Bank in Gaza to pay the salaries of local staff.