IslamicFinance.de

Gulf African Bank has tied its public listing plans to the exit of International Finance Corporation (IFC) from its shareholders’ roll. IFC bought a 15 per cent stake in the bank for $5 million (Sh430 million) last year, which valued it at about $33.33 million (Sh2.86 billion) at the time. Chief executive of Gulf Bank Abdalla Abdulkhalik said IFC plans to exit through a public share sale. The IPO is also expected to raise additional capital for the lender. However, no timeframe has been set. Going by the IFC’s investment horizon the public could get a chance to buy into the lender by 2017. IFC’s policy is to invest in firms for between five and seven years. Gulf Bank's total assets stood at Sh13.56 billion as at the end of 2012, up from Sh5 billion as at the end of 2008.

Syarikat Takaful Malaysia has put all future investments on hold until it gets a clearer picture on the newly-enforced Islamic Financial Services Act (IFSA). The takaful player had planned to make its first foray into the overseas property market last year and was vying for high yielding properties in London, the UK. However, with news of sweeping regulatory changes expected to be introduced under the IFSA, Takaful Malaysia is temporarily suspending plans. The firm has to study on how to utilise the required financial holding company as a vehicle for us to purchase foreign properties, according to group managing director Datuk Mohamed Hassan Kamil. As such, Takaful Malaysia is holding back its property purchases for now because later when the company is split into two separate units, it would be difficult with the property investment in the mix. Takaful Malaysia will have about RM335 million for property investment overseas.

European Central Bank, Occasional Paper No 146, June 2013

ABSTRACT

Islamic finance is based on ethical principles in line with Islamic religious law. Despite its low
share of the global financial market, Islamic fi nance has been one of this sector’s fastest growing
components over the last decades and has gained further momentum in the wake of the financial
crisis.

The paper examines the development of and possible prospects for Islamic finance, with a special
focus on Europe. It compares Islamic and conventional finance, particularly as concerns risks
associated with the operations of respective institutions, as well as corporate governance. The paper
also analyses empirical evidence comparing Islamic and conventional financial institutions with
regard to their: (i) efficiency and profitability; and (ii) stability and resilience. Finally, the paper
considers the conduct of monetary policy in an Islamic banking context. This is not uncomplicated
given the fact that interest rates – normally a cornerstone of monetary policy – are prohibited under
Islamic finance. Liquidity management issues are thus discussed here, with particular reference to
the euro area.

Job Description

Key accountibelites:

Ensure and complete contracting requirements

Coordinate with legal dept, to approve legal contents

Supervisees and direct all the work of the contract and purchasing dept, assuring of the effectiveness and adherence to producers

Prepare the draft , revision and confirmation of contracts and legal documents. As when needed

Orientation of contracts ,legal documents and legal advice, towards protection of bank’s interests

Ensure that legal advice, contracts and recommendations are in conformity with statutes

Job Description

A major International Islamic Bank is currently seeking a regional Chief Financial Officer for their operations in Lebanon and Qatar. This role will be primarily based in Beirut.
Skills

Requirements:

* 10+ Years Experience in Senior Finance Roles within Global Financial Institutions.

Job Description

• Define Bank’s Retail Banking branding strategy in conjunction with Head of Marketing. Positions and develop the brand in-line with the banks overall strategy.
• Create an integrated sales and marketing strategy for the Retail Banking division. Reviews with GM- Retail Banking and Head of Marketing to gains necessary approval.
• Develop and manages implementation and roll-out of sales and marketing plans to achieve income, profit and market share growth objectives for Retail Banking division.

Job Description

The Candidate will be :-

- Co-ordinating between the commercial banking operation and the IT system.

- Developing & Planning for the Islamic Banking Business in the organization.

- Supervising training programs which are focusing on Islamic banking "companies"
Skills

- Minimum 10 years Experience in a field of Islamic banking operation.
- Computer literacy & Programming laungue is a plus.
- Fluency in spoken and written English & Arabic is a must.
- Excellent communication skills.
- Dynamic with leadership qualities .
- Pleasant personality with mature demeanour.

In a story called “E-ducation: A long overdue technological revolution is at last under way,” the Economist reports on the future of learning online, mentioning Khan Academy. Four years after Salman Khan gave up his job at a hedge fund to focus on making maths videos, the Khan Academy has 6m registered users, who solve (or try to solve) 3m problems a day, and it has broadened its curriculum far beyond maths. It is spreading beyond America, too. Carlos Slim, one of the world’s richest men, is said to be paying for a version of Khan Academy’s curriculum to be developed for schoolchildren in his native Mexico.

Islamic capital markets and Shariah-compliant insurance have so far developed separately. However, linking the two markets could cause momentum for both. A big constraint on sukuk market growth has been the product's lack of secondary liquidity. On the other side, the pool of investable money held by insurance companies is a big target for building capacity in the Islamic capital markets. One point of connection between sukuk and takaful markets is that every sukuk deal is backed by commercial assets which are covered by insurance. So far, sukuk issuers can also use conventional insurance for that matter. However, greater use of Islamic insurance would likely make it more efficient und thus, reduce rates.

The Board of Executive Directors of the Islamic Development Bank (IDB) has approved US $789.4 million to finance development projects in eleven member countries as well as education projects for Muslim communities in non-member countries. The BED approved US $220 million for the Turkey Development Bank program to finance renewable energy projects. Moreover, Uganda will benefit from US $120 million for the upgrading of road projects. The rest of the approvals include US $8 million for Niassa electrification project in Mozambique, US $7 million for a project on access to energy for rural communities in Togo and US $23.7 million to the government of Mali to address food insecurity in the country. The government of Pakistan received approval of US $35 million for the financing of the reconstruction of schools destroyed by the floods and US $19.8 million will go to a water supply project in Ouahigouya, Burkina Faso.

The Libyan Stock Market has signed a multi-faceted memorandum of understanding (MoU) with global Shariah advisory firm, Amanie Advisors, to help Libya’s efforts to expand the role of Islamic finance in its economy. The comprehensive MoU sets out a clear roadmap for research into the areas of growth for Islamic Finance within Libya, Islamic Finance training and a joint agreement on conducting market research that aims to devise the proper development model for Islamic Finance with Libya. Amanie will also provide Shariah consultancy services to the relevant authority with respect to drafting relevant guidelines and regulations for their major Islamic capital markets initiative. With training a key challenge for Islamic banks, Amanie will provide in-depth guidance and training to the relevant agencies within Libya.

Dubai Islamic Bank (DIB) has announced the launch of the Al Islami FlexiBeta Dirham Certificate, a two-year Islamic certificate, providing investors with exposure to either emerging market equities or gold, depending on market conditions. The Certificate is issued by Oasis Certificate Programme Limited, a Special Purpose Vehicle that has been set up and sponsored by Citigroup to provide investors with a wide range of customised Shari'ah-compliant investment solutions. The certificate uses a framework comprising of observation of recent price trends and a forward looking risk indicator to adjust allocation between two asset classes, equities and gold. Investors will enjoy a capital protection without tying all their capital for the whole investment period. They will receive 90% of their total investment within two weeks of the issue date, with returns based on the full investment amount. The certificate is denominated in UAE dirhams with a minimum investment of AED 100,000.

South African power utility Eskom will look at new funding opportunities such as Islamic bonds to finance its capacity expansion projects. A lower than hoped for rise in power rates has left state-owned Eskom with an expected revenue gap of 225 billion rand ($22 billion) over the next five years. The associated decrease in projected revenues will materially affect operations, including ability to obtain funding for future capacity expansión. Funding for the next 12 to 18 months would be sourced from issuance of domestic and international bonds, export credit agency-backed financing, development finance institutions and the domestic commercial paper market. New opportunities from alternative funding sources and products such as Islamic funding (sukuk), preference share-type funding and project-based funding will also be explored.

In NCB Capital's (NCBC) view, the 14.7% YoY growth in Albilad’s net income is the result of an increase in NSCI income and fee and other Income. Although the bank’s total operating income came broadly in-line with NCBC's estimate, lower than expected operating expenses including provisions resulted in net income that was 9.4% better than the estimate. Albilad’s NSCI grew 10.7% YoY to SR228mn, in-line with the estimates, led by a 25.3% YoY growth in net loans. Albilad’s investment base also expanded about 8 times which enabled the strong NSCI growth. However, despite the shift from cash towards higher yielding assets, NCBC's calculation suggest that NIMs declined 4bps YoY and 9bps QoQ. This implies that the front loan rates have been declining by a significant level. Albilad’s total operating expenses including provisions grew 5.0% YoY, but came-in 2.7% below the estimates, enabling the 14.7% YoY growth in profits.

Rushdi Siddiqui, co-founder and managing director of the private equity advisory firm Azka Capital, is focused on halal industry initiatives with Islamic financing. He believes both industries have much in common, but hardly communicate with each other. Halal is not just about meats/foods, but also about pharmaceuticals, cosmetics, logistics, etc., all linked to the real economy, yet very unstructured and fragmented. The PE firm's goal is creating risk-adjusted portfolio value for investors who have traditionally invested in real estate, oil/gas, and healthcare. Strategic investors include family offices, high-net-worth individuals, sovereign wealth funds, food companies, Western investors looking for the next BRICS story in the emerging markets. Besides, Siddiqui believes that the development of the Islamic equity capital market (iECM) will bring balance to today's Shariah-complaint (debt bias) Islamic finance.

Capital Intelligence (CI) has affirmed the ratings of Saudi Bank ALJazira (BAJ). The Financial Strength Rating (FSR) is affirmed at 'BBB', supported by sound liquidity, strong customer deposit growth and improved profitability. For the same reasons, the Long-Term Foreign Currency Rating (FCR) is affirmed at 'BBB+' and the Short-Term Foreign Currency Rating at 'A2'. Ratings are constrained by the high non-performing loan (NPL) ratio, the high cost structure and a resultant low profitability, and a high level of deposit concentration. Both the FSR and the FCR continue to carry a 'Stable' Outlook. In light of the Bank's position in the Saudi banking sector, official financial support is expected to be forthcoming in the event it is needed. Consequently, the Support Level remains at '2'.

Competitions for cash prizes as well as Islamic lectures will be part of the activities at the Sharjah Islamic Bank’s (SIB) Ramadan Tent this year. For the seventh consecutive year, from July 11 to 25, the tent will feature various religious awareness and entertaining programmes as well as engagement activities, delivered by an elite group of Muslim scholars and experts. As part of this year’s programme, SIB has prepared a wide range of cultural activities and competitions titled “Who will encash the cheque”, and allocated several cash and material prizes. There will also be a Quran recitation competition, a “Social Awareness Night”, a children’s night, an Emirati evening with religious singing, an evening dedicated to people with special needs and radio broadcasts on Sharjah Radio.

Bank Asya is eager to achieve bilateral trade between the Indian and Turkish economies worth $15 billion over the next five years. Officials of the Turkish Islamic lender Bank Asya were in Mumbai to discuss the rapidly growing business ties between India and Turkey. The proximity of financial institutes between the two economies would benefit business and trade, according to Cenk Karacaoglu, Vice President, Bank Asya, Turkey. The rapidly growing Indian economy presents huge potential for business and trade with Turkey, he added. The bank will further expand business with Indian companies. Bank Asya has agreed to offer Shariah compliant banking facilities in India and was awaiting the regulator's nod.

Depressed initial public offering (IPO) activity in the Gulf Cooperation Council (GCC) continued into the second quarter (Q2) of 2013 with three new listings raising a total of only $ 48 million. This compared to two IPOs in Q1, 2013 raising an aggregate of $ 337 million, representing an 86 percent decrease in total value raised. The average offering value dropped 94 percent this quarter compared to the same quarter last year where four IPOs were witnessed raising a total of $ 1.1 billion. While the value of offerings significantly dropped this quarter, the number of offerings remained relatively stable at 3 IPOs. In contrast, Europe’s IPO markets have continued to gain momentum in Q2, building on the successful start to the year, with $ 6.8 billion being raised, a 58 percent increase on the $ 4.3 billion raised in the first quarter of 2013.

Malaysian Rating Corporation (MARC) has affirmed its AAA/MARC-1 financial institution (FI) ratings on Maybank Islamic and AA+IS rating on Maybank Islamic's 1.0 billion ringgit Islamic Subordinated Sukuk (Subordinated Sukuk). The outlook on the ratings is stable. The Subordinated Sukuk, which qualifies as Tier-2 capital for Maybank Islamic, is rated one notch lower than the bank's FI rating in accordance with MARC's notching policy for subordinated debt issued by a AAA-rated bank. Positive rating drivers include Maybank Islamic's leading position as the largest Islamic bank in Malaysia, healthy capitalisation, sustainable earnings, and sound liquidity and funding profile. The ratings also factor in the high likelihood of full financial support from the parent/group Malayan Banking. Constraining the ratings are continued margin compression and fierce competition as well as Maybank Islamic's increased exposure to risks associated with regional expansion.