IslamicFinance.de

Abu Dhabi Islamic Bank (ADIB) is providing Dhs600m financing facility to Manazel Real Estate to fund the Abu Dhabi-based company's financial obligations and capital expenditure. The financing agreement was signed by Mr. Mohamed M. Al Qubaisi, Chairman of Manazel Real Estate PJSC and Mr. Arif Usmani, Global Head of Wholesale Banking in ADIB. Manazel Real Estate PJSC, a real estate developer in Abu Dhabi, recognizes and appreciates ADIB's support to real estate developers in Abu Dhabi along with other sectors and local businesses, which contributes to the growth and development of Abu Dhabi.

The Saudi Arabian Monetary Agency (Sama) has announced plans to launch a real estate refinancing company with SR5bn ($1.3bn) of capital to help develop the kingdom's mortgage market. The company will be launched through the government's Public Investment Fund (PIF) or its subsidiaries, said Sama governor, Fahad al-Mubara.

Tarek Ali Fadaak, a member of the Shoura Council, said the Kingdom is in need of 143,000 housing units annually. He commended the "constructive steps" taken to end the housing problem with the 500,000-unit free housing project and the adoption of a housing strategy that seeks to facilitate every citizen owning a house, in addition to the launch of the mortgage law and the Real Estate Development Fund facility. By contrast, Tunisia's Housing Minister Shahida Faraj Bouraoui said that the Tunisian government's efforts in the housing sector focuses on encouraging private companies to invest in the housing sector. Jaime Lerner, former governor of the state of Parana, Brazil, warned decision makers that their housing strategies should consider people's tastes.

The Saudi Arabian Monetary Agency (Sama) has decided to allow foreign financing firms to operate in the kingdom in order to boost the real estate financing sector, Saudi Gazette has reported. This will be in accordance with the provisions of the land mortgage law, said Sama governor, Fahad al-Mubarak.

Saudi Arabia issued final regulations on real estate financing, leasing and supervision of financial companies. The regulations outlining three of the five laws were posted Sunday on the website of the Saudi Arabian Monetary Agency. Rules on the enforcement of foreclosures and mortgage registrations have yet to be completed. The package goes into effect when regulations for the two remaining laws are finished and once the final version of the legislation are publicized in the official newspaper, which should be in the next few weeks. The regulations bar mortgage lenders from providing loans for other purposes and prohibit home-financing providers from developing property.

The UK’s student accommodation market was recently calculated by realtor CBRE as having generated £2.7 billion in transactions in 2012. With the exception of the largest operator none of the top five operators are listed or otherwise in obviously British public ownership. The lack of liquidity is a definite drawback for investment in student accommodation. There’s growing American money in the UK’s student accommodation investment market, and Middle Eastern, Shari’ah-compliant investment – such as the AUB UK Student Accommodation Fund, which hails out of the Ahli United Bank of Bahrain. A REIT, a real estate investment trust, could serve as a vehicle for investment in this part of the UK’s real estate sector in order to instill a high level of investor confidence, which in turn aids liquidity.

The Saudi Capital Market Authority (CMA) has said the number of real estate investment funds in the kingdom has so far reached 58 funds and there has been tremendous turnout among real estate developers and investors to float more funds. The market regulator has issued guidelines to regulate investments in this sector to avoid non-organised real estate investment, which has had a negative impact on many citizens in a bid to streamline group investment on the real estate sector and allow investors, especially young and small categories.

La Française AM created several OPCI funds, including one OPCI Charia for the account of one of the largest Islamic banks and financial institutions of Kuwait.

Aldar Properties PJSC (ALDAR) has consented to buy Sorouh Real Estate PJSC at the cost of 5.5 billion dirham ($1.5 billion). According to a statement y the two companies, 1.288 of Aldar's shares will be offered for each Sorouh share. Thus, based on the closing price of January 17th, Sorouh’s shares are worth 2.10 dirhams. The Managing Director of Sorouh - Abubaker Seddiq Al Khouri - will be chairman of of the combined Aldar Sorouh Properties PJSC. The deal was backed by the government of Abu Dhabi, which has taken an increasingly direct role in the development of projects and support of builders after the impact of the credit crisis on real estate.

In a report titled "The growing crisis of affordable housing in MENA" Ernst & Young explain that the growing crisis of affordable housing can be fought if regional governments involve the private sector in the matter. Even though a number of countries in the MENA region have made commendable efforts, affordable housing is still far from enough and the demand is continuously rising. The government is not able to deal with the issue of supplying affordable housing on its own. That is why both supply-side and demand-side strategies should be used to mobilize the private sector and thus expand government resources.

Property lending company Amlak Finance is in discussion with creditors about restructuring about AED7bn (US$1.9bn) of debt. This is the latest try to resurrect a victim of Dubai's property crash. THe creditor committee consists of six members including two government-owned funds, Dubai's largest lender and its biggest Islamic bank. Since November 2008, Amlak has not been able to trade due to suspension of its shares along with Tamweel. At that time, the credit markets had dried up the prices of real estates in Dubai began a slump leading them to a decrease of over 50%.

In the process of Arcapita Bank's asset liquidation aiming to raise money for its creditors, the bank has sold its interests in five retirement homes outside London. According to a statement, Arcapita and its investors have sold their ownership of 80% in the property to Health Care REIT. The investment in the US-based publicly traded property investment trust was carried out in 2003 through a joint venture with Sunrise Senior Living. At the time Arcaoita sought Chapter 11 protection on March 19, 2011, the bank had assets of US$3.06 billion (Dh11.24bn) and liabilities of $2.5bn.

Dear Reader,

Islamic finance had another great year. Many of its market segments progressed, like for example the Sukuk market gaining more maturity. Despite the ongoing debt crisis a good sign of hope and happiness.

Nevertheless we are - as an industry - still not satisfied with the achievements. Islamic finance shall grow stronger in terms of social impact and in terms of substance:

Hence, please allow me to re-iterate my call for participating in international initiatives beyond just our own industry to learn and spread knowledge and experience:

Calling Islamic financial institutions to become member of the United Nations Finance Initiative
http://www.islamicfinance.de/?q=node/811

Inshallah we see more Islamic financial institutions taking a lead in SRI, Social Impact Investing and other approaches while contributing with Islamic finance knowdledge to the conventional industry. The time is now; and there are signs that Malaysia aims for a lead:
http://www.islamicfinance.de/?q=node/4151

Kuwait Finance House (KFH) made an announcement about the sale of 16 real estate assets worth KD84m ($298m). Thus, KFH reorganises its property portfolio. No specific locations of the properties released from its portfolio across North America, south East Asia, and Europe were made public. According to Anwar Al-Ghaith, CEO of KFH, the sale aims to ensure better returns for investors and depositors.

The project Sarajevo City Center in Bosnia worth €130,000,000 has recently reached 60% completion. The project is conducted in partnership between International Investment Bank (IIB) and Al Shiddi Group. It is a hybrid complex which includes a number of main interconnecting features. A shopping mall is the central building of the complex together with an entertainment complex on 5 levels that cover an area of 49,500 square meters.

Gatehouse Bank's acquisition of a diverse industrial portfolio of 19 operationally critical properties all over the USA has been competed. The properties are leased to 16 tenants, whereby the remaining lease term is 14 years in average. The portfolio is stabilised at 100% occupancy. The acquisition worth $178 million was carried out in partnership with the Brennan Investment Group (BIG).

In the attempt to assure Dubai's position in the Middle East as a center for transport and tourism, Dubai is about to launch some grandiose construction projects. Sheikh Mohammed bin Rashid al-Maktoum, Dubai's ruler, ordered a a new city development named after himself to be built. According to estimates, the project will most probably be worth about $10 billion. It shall include 100 hotels, the world's largest shopping mall, parks, art galleries and exhibition centers. A further project for a leisure complex of five theme parks worth $2.7 billion has also been announced.

Saudi Arabia is studying draft regulations which are probable to contribute to the establishment of real a real estate refinancing company similar to U.S. firm Fannie Mae. The government has been making efforts to develop a housing mortgage sector in the kingdom for a long time. Saudi Arabia's conservative character however stick to restrictions of Islamic sharia law which have made it difficult to secure lending against property. Meanwhile, the country suffers from a shortage of housing, especially among lower and middle-income people. As land prices rise quickly, several months ago the government passed laws to regulate mortgage and lease lending.

Dear Reader,

The German language book on Islamic finance by the Editor of IslamicFinance.de and Dr Wackerbeck from Booz Consultants is now translated to Chinese.

Please find the biographical information below:

Authors: Michael Gassner / Philipp Wackerbeck
Title: Islamic Finance – Islam-gerechte Finanzanlagen und
Finanzierungen
ISBN number: 978-7-5139-0217-5
PUBLISHER: Beijing - Democracy and Construction Press
Pre-Publication Date: 2012.7

Full biographical details: http://db.lib.bua.edu.cn/asord/asorditem.php?asord_marc_no=0001344540

Orders: http://www.amazon.cn/%E4%BC%8A%E6%96%AF%E5%85%B0%E9%87%91%E8%9E%8D-%E7%B...

Book review about the German language original: http://www.rpi-virtuell.net/workspace/24686AD5-936C-476D-9EA0-65E2968590...

Best regards,

Michael Gassner

IslamicFinance.de offers an overview about new job openings of October 2012 herewith - firms aiming to be included please send a job profile/hyperlink to newsdesk@islamicfinance.de - the full details of the advert has to be accessed by the hyperlink below the brief description:

Product Manager, Islamic Banking

Standard Chartered Bank - United Arab Emirates-SCB (United Arab Emirates)
Job Description
?Development of Islamic wealth products across CBMS, insurance and investment streams to create customer value proposition.
?Ensure successful implementation of the Islamic banking strategy across high value segment.
?Concentrated responsibility to work with the Priority/Wealth/Private/SME product/frontline teams and support functions to build on the current Islamic banking capabilities and to create seamless customer experience
?Act as a product specialist for RMs on client meetings to introduce and explain the Saadiq solutions to meet their needs
?Financial budgeting and business forecast. Evaluation of financial performance.