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The Maroccoan Bank Al Yousr, the participatory subsidiary of the BCP Group in partnership with Guidance Financial Group has opened its headquarters in the capital Casablanca. After the approval and publication of the compliance notices on the 20th July relating to the model of an account agreement and the Mourabaha Immobilière contract issued by the Shariah Committee on Participatory Finance, Bank Al Yousr officially started its banking activities beginning of August.
The participatory bank is the third of its kind to start its activities, after Bank Assafa, a subsidiary of Attijariwafa Bank, and Umnia Bank of CIH Bank.

The private pension fund industry grew by over 32% during 2016-2017, and the total assets of the industry crossed Rs25 billion. This growth of the industry has primarily resulted from an increase in participation by general investors and better performance of the stock market.
Thereby investors preferred Shariah-compliant pension products over conventional products. Out of Rs25 billion assets of pension funds, over Rs16 rupees comprise of Shariah-compliant securities.
In 2007 private pension funds were introduced. Currently there are 19 pension funds operating in the market, out of which 10 are Shariah compliant and 9 are conventional. These funds are managed by 10 fund managers. The pension funds provide participants investment options in terms of securities and commodities.
Participants can choose retirement age between 60 to 70 years. On retirement, they can withdraw up to 50% of the accumulated balance in lump sum and the remaining 50% in installments, as pension.

The Tenaga Nasional Bhd informed the stock exchange that it has issued RM2bil Islamic medium-term notes (sukuk wakalah). This is the first issuance under the sukuk programme of up to RM5bil in nominal value set up last month. The programme has a tenure of 50 years starting from the date of this first issue.
Tenaga Nasional Bhd told the Bursa Malaysia that based on its consolidated statement of financial position as at May 31, 2017, its consolidated gearing would then increase to 0.70 times from 0.66 times. Additionally the sukuk wakalah issuance would not have any impact on the earnings, earnings per share and net assets per share of the company for the current financial year.
Earlier this year, Tenaga Nasional Bhd had said the proceeds raised from the programme would be used to finance capital expenditure, investment, general corporate purposes, working capital requirements and/or refinance any existing financing facilities and to defray any fees and expenses of the sukuk programme.

According to officials, Sharjah does‘nt have immediate plans for a sukuk, contrary to previous media reports. These had suggested that Sharjah had hired HSBC for a US dollar sukuk programme which could happen in the 4th quarter of 2017.
But, Tom Koczwara, Director, Debt Management Office, Finance Department at Government of Sharjah reiterated that the situation is still the same as in early May. “There is currently no immediate plan for a further sukuk issuance,” Koczwara said in an email. “The Debt Management Office reviews all financing options on an ongoing basis, assessing market conditions and the government’s financing requirements, and we will make appropriate recommendations on the different options to the relevant government authorities.“
S&P expects the Emirate’s fiscal deficit to narrow to 1.9 % of GDP in 2017 compared to closer to 3 % of GDP in 2016.

Public Islamic Bank Bhd is once more raising funds by tapping an Islamic medium term notes (sukuk murabahah) programme which was set up in 2014, issuing the second tranche of subordinated sukuk amounting to RM500mil after a gap of over three years. In a record with Bursa Malaysia, parent Public Bank Bhd said the takings would be used by Public Islamic Bank Bhd for its working capital, general banking and various other corporate purposes.
The first tranche was already issued in June 2014, also amounting to RM500mil with a tenure of 10 years. The coupon rate then was 4.75% p.a. The current tranche has a coupon rate of 4.65% per year, with maturity date of Aug 3, 2027.

Sources say, the emirate of Sharjah has hired HSBC to set up a US-dollar sukuk programme because its government is looking into borrowing to reduce its budget deficit. A first issuance under the newly set sukuk programme is expected in the 4th quarter 2017 according to sources. HSBC has not yet commented on this. The government of Sharjah did not respond either.
Sharjah debted capital market before, having issued a $750 million 10-year sukuk in 2014 and a $500 million 5-year sukuk in January 2016. Sharjah is rated BBB+ by Standard & Poor's. The agency affirmed its credit rating and outlook last month, citing Sharjah' social and political stability, and the emirate's low external risks derived from its membership in the United Arab Emirates. The rating however is constrained by the emirate's limited monetary flexibility, due to the fact that the UAE dirham is pegged to the US dollar, and the underdeveloped domestic bond market, S&P said.

Malam Hassan Usman, CEO of JAIZ Bank, perfected a partnership with Borno State government on the reconstruction of the state economy.
Usman said, that the fourth branch of JAIZ Bank had been opened in Nigerias Maiduguri about five years ago. And it has so far been getting the strong support of the state government since the branch was opened. So he was in Nigeria to explore the ways and means to reciprocate this kind gesture by the state government. His bank wants to help Governor Kashim Shettima in all his efforts to turn things around, especially now that peace and normalcy are gradually being restored in Maiduguri and the entire state.
JAIZ bank has launched a programme, which is being implemented since the beginning of the rainy season, to provide small-holder farmers with inputs. It is working with the coordinator as well as the private sector partner for the state to provide the seeds, fertilizer and other inputs to the partner. The idea of the state government is to start with 5,000 farmers, which it wants to empower at this initial phase of the programme.

The ratings on Kuveyt Turk Participation Bank continue to reflect its overall sound risk profile. IIRA’s assessment on Kuveyt Turk Participation Bank encompasses sponsor support from its key shareholders that include Kuwait Finance House, Islamic Development Bank and other quasi-sovereign entities such as the General Directorate of Foundations – Turkey and Kuwait Public Institution for Social Security.

Islamic insurers in the GCC will probably continue to face headwinds, despite a better overall. The forcasted slowdown follows years of annual growth in gross premiums of up to 20 %, which was mainly driven by the introduction of new mandatory covers, as well as strong increases in premium rates in Saudi Arabia, as new covers and actuarial pricing guidelines were adopted, S&P Global Ratings noted yesterday.
“Now that more policies are adequately priced, overall premium growth has slowed,” said S&P Global Ratings’ credit analyst Emir Mujkic. “The slowdown in premium growth has also been influenced by lower economic activity across all GCC states, as governments are trying to reduce or delay their spending due to lower revenues from hydrocarbon sales,” Mujkic added.

Oman‘s Bank Nizwa just launched its new wealth management services in order to provide high net worth clients with the most effective Islamic financial solutions to grow funds. The banks customers will have access to a full range of tailored products and services to cater to their exclusive needs, amongst them direct access to a relationship manager, Mudaraba Investment Options, and other value-added benefits.

Bank Islam Malaysia Bhd is aiming to grow its mobile banking customer base from currently 900,000 users to two million by the year 2019. This is part of the bank’s strategic collaboration with US-based global business and technology consulting company Cognizant to develop fintech products within the network of Bank Islam’s. The banks digital banking segment accounts for less than 5% of its non-fund based income and the bank plans to increase this figure to 10%.
Bank Islam chief executive officer Khairul Kamarudin said the bank expected to roll out at least one fintech product related to retail banking by the second quarter of 2018. The bank planned to develop fintech products targeted at the retail banking and small and medium enterprise segments. “Together with Cognizant, we shall identify suitable fintech products that allow better customer engagement, to be submitted to Bank Negara’s regulatory sandbox,” he said.

Indonesia, that is so far a behind in developing a comprehensive Islamic finance industry, has taken a big leap towards the creation of a supportive framework for Shariah-compliant banking end of July. On that day, the country’s President Joko Widodo inaugurated the National Committee for Shariah Finance, as part of the government’s push to make Indonesia a global hub for the Islamic financial industry.
It has been tasked to accelerate, expand and develop Shariah-compliant financial services to support the country’s development, National Development Planning Minister Bambang Brodjonegoro said in a statement. The ministry is the one that introduced its master plan for the development of the country’s Islamic finance future last year.

Although between 85 and 90 % of the Indonesian population is Muslim, Islamic banking, also known as sharia banking, remains underdeveloped in the country. In 2016 sharia banking assets only accounted for 5.3 % of total assets in Indonesia's banking sector. But at the same time in countries like Saudi Arabia and Malaysia these figures are much higher at 51.1 % and 23.8 %, respectively.
In order to boost Islamic banking in his country, President Joko Widodo formed the National Committee for Sharia Finance. This institution was installed to investigate and tackle the challenges surrounding sharia banking in Indonesia. Together with the Indonesian Islamic Economy Expert Association, KNKS is tasked to unite the vision and strategy of all stakeholders in this industry and turn the country into a global center for Islamic banking.
General Chairman of the IAEI Bambang Brodjonegoro said, the challenges in Indonesia's Islamic banking industry involve both the supply and demand side. The lack of business sectors that are based on Islamic banking makes it tough for the industry to develop, he added.

The world cannot acknowledge the idea that human progress might be at an end or even have stopped. The belief that science, technology advances as well as social and political systems can provide continuous improvement in life of humans is perhaps the most important idea in Western civilisation. Yet attempts to measure the actual progress are oddly vague. In January 2016, the Italian Prime Minister Matteo Renzi dispensed with practicalities arguing that “Europe cannot just be a grey technical debate about constraints, but must again be a great dream”.

Dana Gas has withdrawn an offer to creditors to exchange its debt of $ 700 million Islamic bond for new notes. Thereby ending the chance of a consensual resolution to a case that could shape the future of the global Islamic finance industry. The gas company is refusing to repay holders of its Islamic bond which matures in October. It said last month it had received legal advice that the bond was no longer Sharia-compliant in the UAE because of changes in Islamic finance interpretations over the recent years, and was therefore not lawful. But creditors say Dana has to pay them back and argue if the sukuk was legal when the deal was struck, it holds, and if it was illegal then it would mean the company is in default.

The strategic investment fund Khazanah Nasional Bhd has gathered RM 100 million from the second tranche oft he Sustainable and Responsible Investment sukuk. Khazanah said in a statement today that the proceeds will be used to fund a rollout of a Trust Schools Programme to more schools in Malaysia.
"Khazanah has successfully raised RM100 million via a second tranche of the seven-year SRI sukuk, issued by a Malaysian-incorporated independent Special Purpose Vehicle, Ihsan Sukuk Bhd. The settlement date of this Sukuk will be on August 8th, this year. Ihsan issued the first tranche of RM 100 million in 2015, under its RM 1.0 bn Sukuk Programme," Khazanah said in a statement. It explained that proceeds from this second tranche will fund the rollout of Yayasan AMIR’s Trust Schools Programme, reaching as many as 20 schools.

Central Bank issued a notificaiton in May this year about mis-selling of investments. The UAE‘s largest Sharia-compliant lender, Abu Dhabi Islamic Bank, has welcomed efforts by the central bank to clamp down on unscrupulous sales of investment plans to UAE expats It said, the reputation of the industry as a whole had been damaged by dishonest brokers.
“More regulation is a good thing and we work very closely with the central bank” and other wealth management institutions who wish to improve their services, said Daffer Luqman of Abu Dhabi Islamic Bank. “At the end of the day the reputation of the business affects everybody. If an institution does a bad job of promoting or marketing a service it affects the whole industry so it’s very important that this business is regulated, that it’s regulated effectively and that everybody plays by the rules.”

According to sources, the Saudi Arabia’s Islamic Development Bank has asked banks for proposals to arrange a U.S. dollar-denominated sukuk. The bank in Jeddah is a regular issuer of international Islamic bonds. The new sukuk, possibly with a five-year maturity, could be issued in the next month or two. The deal will probably have a size of between $1 - $1.5 billion. Banks were given a deadline of July 26 to respond to IDB’s request.

Securities Commission Malaysia (SC) announced the issuance of Malaysia’s first green sukuk under its Sustainable & Responsible Investment (SRI) Sukuk framework. To complement SRI Sukuk framework, several incentives are in place to attract green issuers. They include tax deduction until year of assessment 2020 on issuance costs; tax incentives for green technology activities in energy, transportation, building, waste management and supporting services; financing incentives under the Green Technology Financing Scheme (GTFS) with total funds allocation of RM5 billion until 2022. To be eligible for tax deductions, issuers must ensure that proceeds are used to fund SRI projects in the natural resources, renewable energy and/or energy efficiency sectors. The framework underlying this first green sukuk is the result of collaboration between SC, Bank Negara Malaysia and the World Bank Group to introduce innovative financial instruments to tackle global infrastructure needs and green financing.

Bahrain has sent out a request for proposals to banks to arrange issues of US dollar-denominated conventional bonds and sukuk. Bahrain needs to raise external financing to plug a budget deficit caused by low oil prices, as the state struggles to build political consensus around planned austerity measures. Last month the cabinet approved a draft budget projecting a BD1.3bn (US$3.4bn) deficit for 2017 and a BD1.2bn deficit in 2018. Bahrain had a deficit of BD1.5bn in 2016. Bahrain is rated BB- by S&P with a negative outlook. The agency last month revised the outlook to negative from stable, citing Bahrain's weakening external asset and fiscal positions. Fitch followed suit, revising the country's outlook to negative but affirming its BB+ rating.