IslamicFinance.de

Al Madina Investment (Al Madina) has organized an event to celebrate the issuance of the first sukuk in Oman. Al Madina acted as the Principal Advisor, Joint Lead Arranger and Joint Lead Manager for the OMR50 million Sukuk Al Ijarah issued by Modern Sukuk on behalf of Tilal Development Company (TDC). The proceeds from the sukuk will be utilized for the expansion of TDC's flagship project - the Tilal Complex. In the event, Al Madina honors the stakeholders and also the participants in the sukuk by presenting them with an award for their contribution to successful issuance of the sukuk.

According to Thomson Reuters' Islamic Finance Development Indicator (IFDI), Saudi Arabia has the second largest Islamic finance sector, after Malaysia, with Islamic finance assets in excess of $270 billion in 2012. Saudi Arabia was also in the top ten countries for educational infrastructure. Moreover, the kingdom performed well in terms of awareness and Sharia governance. However, it did not fare as well in terms of governance. Saudi Arabia has yet to introduce dedicated regulations for Islamic finance institutions and continues to score poorly in terms of financial disclosures compared to its peers. The IFDI was developed in collaboration with the Islamic Corporation for the Development of the Private Sector (ICD) and will be officially launched at the Global Islamic Economy Summit.

Emirates Islamic Bank has launched a four year Wakala investment option for customers, with an expected profit rate of 2.57 per cent per annum. Available on investment amounts ranging from AED 100,000 to AED 5 million, Emirates Islamic Bank’s latest product closely follows the launch of the three-year special Ramadan Wakala, introduced earlier this year. The four year Wakala investment option differs from conventional Wakala investments, with the profits being paid out on an annual basis to customers. Faisal Aqil, the bank's Deputy CEO - Consumer Wealth Management, said that customers are encouraged to develop a culture of saving through the launch of the bank's Sharia-compliant savings products.

Saudi Electricity Co plans to issue Islamic bonds denominated in both riyals and dollars in coming months and has reportedly selected banks to arrange the offers. The monopoly utility has large fund-raising needs as it looks to expand generation capacity to keep up with the kingdom's rapidly growing power demand. SEC has chosen the investment banking arm of Banque Saudi Fransi and HSBC's Saudi Arabian unit to arrange the riyal-denominated sukuk. This transaction is expected to launch as early as Thursday. HSBC will also be involved as an arranger of the dollar-denominated sukuk, along with Deutsche Bank and JP Morgan Chase. This sale is expected in early 2014.

Takaful Oman Insurance, one of Oman's first takaful insurance providers and still under formation, has announced its initial public offering (IPO). The promoters are offering 40mn shares, each priced at 102bz - with a par value of 100bz and 2bz of issue expense. The IPO, which opened for subscription on October 30, will close on November 28. Takaful Oman is promoted by ONIC Holding, National Investment Funds Co ( Nifco ), Oman Investment Corporation (OIC); National Bank of Oman, Blue Door Investment Services LLC, bank muscat, and T'azur Takaful insurance company, one of the top five takaful companies in Kuwait.

Dubai-based GEMS Education has set initial pricing thoughts of an 11.75-12.00 per cent profit rate for its planned debut sale of hybrid Islamic bonds. The company, which employs about 11,000 staff and operates around 100 private schools across the Gulf region, has hired Morgan Stanley Inc, Credit Suisse and Abu Dhabi Islamic Bank (ADIB) to arrange the sale. The sukuk sale will use a mudaraba structure and will be callable after five years. No details on the planned size of the offering was provided.

London has long been the default centre for international firms to issue sharia-compliant bonds, but it faces a mounting challenge from Dubai and Kuala Lumpur. The final result of the three cities' rivalry may not be known for years, but thousands of jobs and large amounts of direct investment in companies and real estate are likely to depend on the outcome. The most high-profile - and most cut-throat - area of competition between the three centres is arranging sukuk. Other areas of competition include Islamic insurance, known as takaful, and asset management. London has led in attracting sukuk issues by big international companies because of the massive size of its conventional financial markets and its globally respected legal system. However, its position looks weakest among the three centres from a long-term perspective because it is not located within a natural pool of sukuk issuers and European customers will remain a limited group.

Bahrain-based investment firm Gulf Finance House said that a family consortium led by chairman of English soccer team Leeds United had bought a 5.71 percent stake in the company, estimated to be worth around 28.9 million dinars ($76.6 million).

The Dubai government plans to establish a centre that will develop standards for corporate governance based on Islamic values, guiding companies in both financial and non-financial activities. The centre is to be opened in the second quarter of next year. The standards will not be compulsory for firms but the centre will issue sharia-compliance certificates to companies and banks meeting them. The standards will cover issues such as corporate transparency and disclosure. However, certificates will not be issued for individual products.

Emad Mansour, a veteran Gulf Arab banker, is planning to set up an investment bank in Dubai’s tax-free financial zone. Mansour, who has about 20 years of investment banking experience in the region, was most recently the chief executive of Doha-based Qatar First Bank (QFB). The executive will file an application to the regulator of Dubai International Financial Center (DIFC), and aims to launch the business in the first half of 2014. His firm will initially focus on private equity transactions and then will move on to offering M&A, equity and debt capital markets advisory services before starting asset management operations. Other former investment bankers from the region have also set up specialist boutiques betting on a continued upturn in activity.

According to estimates by EY’s Global Islamic Banking Center, the pent up global demand for Islamic pension funds is currently between $160 bn and $190 bn. At present, most of these funds are parked under conventional sovereign pension funds due to lack of investing options. Since greenfield operations would take too long to satiate market demand, a more practical approach is the partial transformation of existing pension funds to carve out Shari’a compliant tranches. The transformation will need to be carefully planned to choose the right business model and operational framework. The choice of business model will determine the governance structure, the complexity of financial reporting, tax implications, and go-to-market timeframes.

Qatar is a major player on the growing global Islamic finance stage which is estimated to be worth, at present, around $1.9 trillion. Qatar’s Islamic banking sector is set to flourish over the next three or four years. Islamic banks currently represent one-quarter of Qatar’s banking system in terms of assets, up from 13% in 2006, and it is expected that they will continue to gain market share. Moreover, infrastructure spending in the run-up to the FIFA 2022 World Cup is expected to spur lending for roads, stadiums and hotels. Qatar’s economy is expected to grow 5.2% next year, the fastest in the GCC. Islamic finance will certainly be one of the many topics discussed at the 9th World Islamic Economic Forum which will be held on 29 – 31 October 2013 at the ExCel London.

The Islamic Development Bank (IDB) has launched The Assistance For Trade in the Arab States (AFTIAS) aimed at boosting trade and economy as well as creating jobs in the Arab countries. Dr. Waleed Al-Wohaib, CEO of the International Islamic Trade Finance Corporation (ITFC) and Chairman of Board of the initiative, said the ITFC would work side-by-side with international organizations that would implement the initiative to guarantee its success. The initiative consists of five UN agencies: the UN Development Program (UNDP), the UN Conference of Trade And Development (UNCTAD), the UN Industrial Development Organization (UNIDO), the International Labor Organization (ILO), and the International Trade Center. It also include the Arab League, the Gulf Cooperation Council (GCC), the Agadir Technical Unit and the Arab Maghreb Union, in addition to seven donor parties.

Members of Saudi Arabia's wealthy Baeshen family, who control one of the Middle East's leading tea purveyors, AMS Baeshen & Co., are suing the reorganized Bahraini private equity and investment firm Arcapita Bank for the return of millions of dollars they'd earmarked for the bank's aborted stock sale. Lawyers for the Baeshens, the family behind the Rabea Tea brand, are seeking the return of some $3.5 million deposited at the bank in connection with the Bahraini bank's abandoned rights offering.

Dubai Islamic Bank (DIB) Group has reported a net profit of Dh1.2 billion for the first nine months of the year, up 33.5 per cent compared with Dh899 million reported in the same period in 2012. The bank attributes a 33.5 per cent increase in net profits to increased core business and lower provision requirements due to improved asset quality and overall improvement in the economic environment in the UAE. Net operating revenue of the bank at the end of the third quarter was Dh3.2 billion, up 5.6 per cent from Dh3 billion in the first nine months of 2012. Operating profit before impairments was up 7 per cent at Dh1.95 billion from Dh1.83 billion in the same period in 2012. The bank made provisions of Dh751 million in the first nine months of the year compared with D922 million in the same period in 2012. DIB continues to manage asset quality and non-performing assets by cautious lending and conservative provisioning approach.

Ajman Bank has appointed Mohammad Amiri as its new chief executive officer (CEO). A UAE national, Amiri served Ajman Bank in various capacities from October 2010 to April 2013, first as deputy CEO before being promoted as acting CEO. In his career in financial services, Amiri has been associated with leading organisations such as Dubai Bank, Dubai Islamic Bank and HSBC Bank Middle East Limited in senior management positions.

Bahrain-based Al Baraka Banking Group ( ABG ) has achieved a net income of US$ 197 million in the first nine months of 2013, an increase of 8% on the net income achieved in the first nine months of 2012. Similarly, statement of financial positions witnessed moderate increases. Total assets increased by 4%, investments and financing portfolio by 5% and customer accounts by 2% as at the end of September 2013 as compared with the end of December 2012. The net income amounted to US$ 197 in first nine months of 2013 compared to US$ 183 million in first nine months of 2012, which reflects an increase of 8%. With regard to the Group's plans to expand its branch network, the President & Chief Executive said that the subsidiary units of the Group in Turkey, Egypt, and Sudan continued opening new branches.

Abu Dhabi Islamic Bank (ADIB) has launched new capital-protected silver notes to allow customers to invest in a metal that analysts believe may soon see a price rebound. The Shari’a-compliant notes, which mature in two years, provide 100 percent capital protection at maturity to minimize risk. The notes are currently open for subscription with a minimum amount of US$30,000. This latest offering is part of ADIB’s wealth management approach to provide customers a diversified suite of investment solutions. ADIB’s structured notes have been well received by investors, particularly three capital-protected gold notes and two capital-protected oil notes that matured at the beginning of this year.

Kuwait Finance House has signed a memorandum of understanding to finance $115 million for Bahrain-based Foulath Holding Company for five years. Shaheen Al-Ghanem, International Banks General Manager, KFH said the deal was part of KFH’s efforst to expand in foreign markets. Foulath is owned by GIC and Qatar steel Company in addition to the National Industries Group, Gulf Cables and Kuwait Foundry Company. Foulath owns factories in Bahrain, Saudi Arabia and its businesses cover various countries in the Middle East.

Omani real estate developer Tilal Development Co has sold the country's first Islamic bond, a 50 million rial ($130 million) sukuk. Tilal's five-year sukuk, offering a profit rate of 5 percent and based on an ijara structure was privately placed with investors, arranger Al Madina Investment said. About 95 percent of the sukuk, rated BBB+ by Cyprus-based Capital Intelligence, was placed with local investors including pension firms and banks. Tilal, 40 percent-owned by sovereign wealth fund Qatar Investment Authority, will use proceeds from its sukuk to expand the Tilal Complex in Muscat, a flagship project which includes the Muscat Grand Mall as well as residential and office space.