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Fitch Ratings has assigned Al Hilal Bank's (Al Hilal; A+/Stable/F1) USD2.5bn trust certificate issuance programme a final Long-term rating of 'A+' and a final Short-term rating of 'F1'. At the same time, Fitch has assigned Al Hilal's USD500m senior unsecured fixed rate certificates (sukuk) issued under the programme a Long-term rating of 'A+'. The certificates have a profit rate of 3.267% per annum and mature on 8 October 2018. The ratings assigned to the programme and the certificates are driven solely by Al Hilal's Issuer Default Ratings (IDRs), as the sukuk structure is viewed as an originator-backed/asset-based structure. The ratings of the trust certificate issuance programme and the certificates are highly sensitive to any rating action on Al Hilal.

Qatar Islamic Bank (QIB) has reported a 12.4 percent drop in third-quarter net profit, missing analysts' average forecast. QIB posted a nine-month net profit of 975.1 million riyals, compared with 1.1 billion riyals for the same period last year. The third-quarter results, with a net profit of 345.1 million riyals ($94.8 million), missed the average forecast of eight analysts in a Reuters poll. QIB's total third-quarter income from financing and investing activity dropped to 738.4 million riyals from 773.8 million riyals a year earlier. Fee and commission income fell to 91.4 million riyals from 119.7 million riyals. QIB shares closed 0.3 percent lower on Sunday. They have fallen 9.7 percent year-to-date.

Daman Islamic Insurance Company’s net profit crossed QR40m for the first nine months of 2013. The figure reflects a 111 percent increase compared to the same period in 2012. Announcing the financial results, Daman Islamic Insurance Company Chairman Sheikh Jassim bin Hamad bin Jassim bin Jabor Al Thani said the returns from the investments increased by 160 percent on year-on-year basis. Sheikh Jassim attributed the company’s strong performance during the period to the diverse insurance products available in the market. The opening of new branches also supported the growth, he said.

Al-Rajhi Bank said third-quarter net profit fell 8.1 percent. The bank made SR1.72 billion ($458.6 million) in the three months to September 30, compared with SR1.87 billion in the same period a year earlier. Al-Rajhi attributed the fall in net profit to a decrease in operating income, which dipped 4.6 percent compared to the corresponding period of 2012. It did not elaborate further. Al-Rajhi's loans and advances at the end of the third quarter stood at SR185 billion, gaining 12 percent on the same point of 2012. Its total assets were worth SR273 billion at the end of the third quarter, up 10 percent on the corresponding point in 2012.

The Bahrain Chamber of Dispute Resolution (BCDR) ordered Bank Alkhair's former Chief Executive Officer, Majed Al-Refai, in a verdict to repay a $2 million loan he had taken during his tenure as CEO, and to compensate the bank for all legal fees and costs. The latest ruling against Al Refai follows several other criminal cases involving Al Refai and associates which have all been ruled in favor of the bank. On 29 September 2013, the Supreme Criminal Court of Appeal sentenced Al Refai and his Canadian associate Robert Little each to one year in prison for forging the bank’s Articles of Association. The bank has confirmed numerous legal proceedings, which are ongoing since September 2010, all within the jurisdiction of the Kingdom of Bahrain, and do not affect the ongoing operations of the bank.

The financial crisis has changed the focus for Bahraini investment banks away from bumper projects and the preference now is for slimmer balance sheets, according to GFH founder Essam Janahi, who last week stepped down as chairman. GFH has now reduced its liabilities to $223 million, from over $2 billion at the peak of the crisis, and is rolling out a more conservative strategy. Future investments will shy away from aggressive rates of return and favour smaller deals to better manage risk, Janahi said. Even some Islamic investment banks which rode out the global crisis fairly comfortably have streamlined their operations and say they will not spurn relatively small deals. Qatar's QInvest for example has streamlined operations and discontinued areas such as wealth management and brokerage services.

Saudi Arabia's National Industrialization Company (Tasnee) has signed a sharia-compliant loan facility worth SR4 billion ($1.06 billion) with seven Saudi banks and Emirates NBD. The Saudi banks which contributed are Riyad Bank, Al Rajhi Bank, Bank Al Bilad, Saudi British Bank, Samba Financial Group, Banque Saudi Fransi and Saudi Investment Bank. The financing, signed on Sunday, will be repaid in eight years including a one-year grace period. The loan, which was covered 1.5 times, will finance the company's stakes in future projects and refinance existing loans.

The financial crisis changed the focus of Bahraini investment banks away from bumper projects and the preference now is for slimmer balance sheets, according to GFH founder Essam Janahi, who last week stepped down as chairman. GFH has now reduced its liabilities to $223 million, from over $2bn at the peak of the crisis, and is rolling out a more conservative strategy. Future investments will shy away from aggressive rates of return and favour smaller deals to better manage risk, Mr Janahi said. Bahraini firm Arcapita filed for bankruptcy protection in a New York court in March last year, emerging from Chapter 11 last month with a five-year plan to sell legacy assets to pay creditors. Last week, the reorganised firm appointed a new seven-man board of directors that includes a representative from Bahrain's central bank and the chief executive of Bank Alkhair.

The Islamic Development Bank (IDB) is considering setting up an Islamic bond issuance programme in Dubai. It would be the IDB's first sukuk programme in a Middle Eastern country. While discussions are at an early stage, the IDB has seen growing demand for its sukuk and already plans to expand its main London-listed programme to $10 billion from the current $6.5 billion.The IDB sukuk could offer a much-needed boost to trading volumes and encourage issuers from outside the emirate to choose Dubai as their listing venue. Support for sukuk issuance is part of a broad cooperation agreement signed in July between the IDB and the government of Dubai.

Islamic Microfinance is an effective tool for the poverty alleviation and it should be introduced around the globe to state an effective policy for ultimate poverty alleviation from the world, Dr. Fatima Mohamed Yousif Al-Balooshi, Minister (Ministry of Social Development - Bahrain) stated. Dr. Fatima Al-Blooshi was speaking as a Chief Guest in the 3rd Global Islamic Microfinance Forum (GIMF) held on 6th to 8th October, 2013 in Dubai. Muhammad Zubair Mughal (CEO - AlHuda CIBE), said that the involvement of interest in micro financing is one of the major causes behind the increasing poverty in Muslim countries. He said that the forum aimed to streamline the policies for poverty reduction, to promote the Research and Education in Islamic Microfinance industry and to enhance its outreach on global canvas.

Al Salam Bank-Bahrain (ASBB) shareholders approved by majority the Board of Directors’ recommendation to merge the bank with BMI Bahrain through exchange of ASBB shares. The Chairperson H.H. Shaikha Hessa bint Khalifa Al Khalifa pointed out that ASBB’s strategy is to grow organically and through mergers and acquisitions, and consistent with this strategy the Board of Directors had been continuously on the lookout for suitable commercial banking targets to acquire and integrate. H.H Shaikha Hessa mentioned that upon merger the Group will have total assets of circa BHD 1.8 billion, financing facility of circa BHD 1.2 billion, equity of over BHD 285 million and total customer deposits in excess of BHD 1.2 billion.

In the executive summary of its report on GCC Islamic Finance, Kuwait Financial Centre “Markaz” notes that at the end of 2012, assets under management (AUMs) in Islamic finance reached $1.76 trillion. The Islamic finance industry reached about $434 billion in size, in the GCC, for the year ending 2011. The report points out that global Takaful market is estimated to touch about $25 billion by end of 2015. A variety of factors contribute to the remarkable rise in the Islamic finance assets, said Markaz, including growing GDP, rising middle class society, and most importantly increased awareness of the concept of Islamic finance. However, Markaz also notes there are challenges, relating to evolving standards, shortage of expertise in the industry. Furthermore, the capital markets in the GCC region are relatively underdeveloped which hinders the growth of Islamic finance in the region.

HSBC and NCB Capital announced the completion of the largest ever government guaranteed Sukuk in Saudi Arabia for the General Authority of Civil Aviation (GACA). Totaling a size of SAR 15.211 billion (US$4.056 billion), the Sukuk achieved a profit rate of 3.21% p.a. HSBC and NCB Capital acted as Joint Lead Managers and Bookrunners of the Sukuk. Additionally, HSBC acted as the Sukuk Coordinator, Sole Shari'ah Coordinator, Sukuk Holders' Agent, and Payment Administration Agent. Standard Chartered Saudi Arabia was Co-Lead Manager for the Issuance. The deal was 1.9 times oversubscribed with strong demand from a wide range of investors including banks, sovereign funds, pension agencies, insurance companies and corporates. Additionally, this issuance is also approved by the Saudi Arabian Monetary Agency (SAMA) to be eligible for repo arrangements and has also been assigned zero% risk weighting for capital adequacy calculation purpose.

Al Hilal Bank (AHB), rated A1by Moody's and A+ by Fitch, priced its highly successful debut $500 million Sukuk issued at par with 3.267 per cent semi-annual profit rate with a spread of 170 bps over the US Dollar at five-year mid swaps (MS). AHB, Citigroup, HSBC, NBAD and Standard Chartered Bank acted as Joint-Lead Managers and Joint Bookrunners, with BIBD, Maybank IB, SIB and UNB acting as co-Managers. The geographical distribution of the issue was as follows: 37 per cent to the UAE, 21 per cent to the rest of the Middle East, 22 per cent to Asia, 17 per cent to Europe, and 3 per cent to US offshore investors. The Trust Certificates will be listed on the Irish Stock Exchange under AHB’s $2.5 billion Trust Certificate Programme.

The Family Bank took part in the Third Global Islamic Micro-Finance Forum which is organised by the Al-Huda Centre of Islamic Banking and Islamic Economics (CIBE). The two-day forum includes a workshop on "How to Develop, Operate and Sustain Islamic Micro-Finance Institutions", in which a number of experts and consultants are participating. Family Bank, led by the Social Development Minister and Board of Directors Chairperson Dr. Fatima Mohammed Al-Balushi, implements its programmes in cooperation with the Labour Find (Tamkeen). It is the first Islamic micro-finance bank in the Middle East with the prime objective to contribute to poverty alleviation and socio-economic empowerment of the communities by providing sustainable Islamic financial services to the needy.

Oman’s Al Madina Insurance Co (AMIC) plans to list its shares on the local bourse as part of its transformation into a takaful firm. AMIC plans to issue 66.67 million shares with a face value of 0.1 rial per share, equating to 40 percent of its total post-IPO capital. The offer will take place this year depending on approval from Oman’s Capital Market Authority (CMA). It was unclear how much money AMIC planned to raise. Oman decided in 2011 to introduce Islamic finance; its draft takaful regulations require local Islamic insurers to be public companies, and AMIC said it expected to become one of the first takaful companies on the market.

Gulf Finance House climbed to the highest in more than three months as the Bahrain-based investment bank replaced its chairman Essam Janahi by by Ahmed Al-Mutawa. The shares surged 11 percent to 57.3 fils in Dubai, the highest since June 20, bringing the gain this year to 37 percent. Gulf Finance House shares listed in Bahrain rose 7.7 percent and those traded in Kuwait advanced 6.5 percent. Some investors may be taking advantage of the price difference in Gulf Finance House shares by buying in Kuwait and selling in Dubai. In Israel, the TA-25 index gained 1.4 percent, led higher by Perrigo Co., a generic drug maker, and Cellcom Israel Ltd. The gauge dropped 1.1 percent on Oct. 3 in a rebalancing for the entry of Opko Health Inc. into the index.

HSBC and NCB Capital announced the completion of the largest ever government guaranteed sukuk in Saudi Arabia for the General Authority of Civil Aviation (GACA). Totaling SR15.211 billion ($4.056 billion), the sukuk achieved a profit rate of 3.21 percent p.a. HSBC and NCB Capital acted as joint lead managers and bookrunners of the sukuk. Additionally, HSBC acted as the sukuk coordinator, sole Shariah coordinator, and agent of sukuk holders and payment administration. Standard Chartered Saudi Arabia was co-lead manager for the issuance. The deal was 1.9 times oversubscribed with strong demand from a wide range of investors. Additionally, this issuance is also approved by the Saudi Arabian Monetary Agency (SAMA) to be eligible for repo arrangements and has also been assigned zero percent risk weighting for capital adequacy calculation purpose.

The Board of Ajman Bank has decided not to confirm CEO, Mohammed Zaqout and instead named on an interim basis Seifeldin Abdelkareem as the Acting CEO. The decision has been taken by mutual agreement, the board said. The bank maintained earnings momentum recording a breakthrough performance with record growth rate of 382 per cent in 2012 year-end compared to 2011 year-end. Ajman Bank began its operations in 2008 and now operates 11 branches across the UAE.

The largest ever government guaranteed sukuk in Saudi Arabia for the General Authority of Civil Aviation (GACA) totaled SR15.211 billion ($4.056 billion), representing a 3.21 percent profit per annum. The deal was 1.9 times oversubscribed with strong demand from a wide range of investors. This diversity of investors means that any subsequent issuance won’t be over reliant on any one sector and GACA could tap into a ready investor base. HSBC and NCB Capital acted as Joint Lead Managers and Bookrunners of the sukuk. Additionally, HSBC acted as the Sukuk Coordinator, Sole Shariah Coordinator, Sukuk Holders' Agent, and Payment Administration Agent. Standard Chartered Saudi Arabia was Co-Lead Manager for the Issuance.