IslamicFinance.de

TBLI CONFERENCE has partnered with Nexus Network to increase awareness of, and create greater money flows toward, sustainable investing. The partnership will launch at TBLI CONFERENCE EUROPE in Zurich on 14-15 November, where TBLI and Nexus will present a special workshop called “Next Generation Dialogue”. Members of Nexus Network representing different generations will discuss their views and experience in responsible investing. According to Robert Rubinstein, founder and CEO of TBLI GROUP, the interest of Nexus’ members lies mainly in further exploring opportunities in impact investing and philanthropy. Beyond the partnership for TBLI CONFERENCE EUROPE this fall, TBLI and Nexus Network are in the planning stages for a series of smaller events hosted throughout Europe and abroad, focused on ESG and Impact Investing. These events will continue the dialogue and will help achieve TBLI’s and Nexus Network’s vision of creating a sustainable economy based upon well being. For more information please see attached file.

The Islamic Development (IDB) has approved financing of projects worth $747 million in various countries. The projects include $200 million aid for Rades Electric and Gas station project in Tunis for the development of energy sector in Tunisia , projects worth $190 million in six Iranian cities and $110 million irrigation projects in Egypt aimed to increase agricultural production in rural communities. The IDB is also providing $100 million to build an airport in Burkina Faso. The educational aid granted by the bank includes $72.5 million for development of the Lebanese University in Beirut, and $10 million for Arabic and French bilingual education project in Chad. Moreover, the bank approved several other projects in member and non-member countries. IDB's executive directors also reviewed the arrangements for the celebration of the 40th founding anniversary of the bank next year.

As the White House considers taking military action against Syria for its use of chemical weapons against civilians, the president should also consider using an additional tool to force the Syrian regime to change course: stepping up economic warfare against Syrian banks and institutions that do business with them. This type of effort can have measurable impact for a simple reason: the Assad government needs money. Without hard currency and access to the international market, the regime will find it far more difficult to fund its military and its ability to purchase Russian weapons will be limited. Syria is vulnerable to economic warfare, which would hurt the regime where it is weakest: its pocketbook.

In a setback for the United States’ attempts to isolate Iran, the General Court in Brussels threw out sanctions Friday on seven Iranian companies, including four banks, rejecting arguments that they were acting as front companies to bypass the punitive measures. The United States Treasury took the opposite tack on Friday, imposing restrictions on a network of six individuals and four businesses for links to oil sales. These actions represent a renewed crackdown to curb the use of front companies, financial institutions and businesspeople to conceal the direct involvement of the Iranian government and entities like the National Iranian Oil Company and the Naftiran Intertrade Company. European officials are expected to hold initial discussions on whether to appeal on Tuesday.

The New York Department of Financial Services (DFS) has asked half a dozen European banks to submit their official records pertaining to their financial dealings with Turkey's Uzan family. The six banks covered by the order are France based BNP Paribas, Societe Generale and Credit Agricole; Commerzbank and Deutsche Bank of Germany and Standard Chartered. The state banking regulator is investigating the case over the illegal business dealings with Uzans. Standard Chartered assured its full co-operation with the regulators, while representatives of the other European banks either declined to comment or did not respond to requests for comment.

Dubai Duty Free (DDF) has picked Abu Dhabi Commercial Bank, Emirates NBD, and Standard Chartered to arrange a $750 million loan to fund the company’s expansion at the world’s second-busiest airport and improve its capital structure. DDF’s new dollar-denominated transaction will be priced at 225 basis points (bps) over the London interbank offered rate (Libor). This is 25 bps inside the revised pricing on the dollar tranche of the previous loan. No lifespan for the facility, which will be arranged. The loan is structured so that banks can commit to either a conventional tranche or one compliant with Islamic principles.

The Securities Commission (SC) aims to position Malaysia as an Islamic wealth management centre, a target that is highly feasible because of the country's high savings rate. Steps are being taken to create a certain number of intermediaries in the area. As of July 2013, there were 19 licensed Islamic fund management companies in Malaysia. The country's assets under management of Islamic funds are expected to hit RM322 billion by 2020 from RM80 billion end-2012. Generating broader approach with regional countries can help Malaysia to continue innovating and expanding the Islamic market place.

Turkey’s large infrastructure investments may boost the country’s Islamic finance sector. Turkey’s mega projects like bridges, airports, and Kanal Istanbul are compatible with the Islamic financing structure, according to ?brahim Turhan, chairman of Turkey’s stock exchange Borsa Istanbul. Moreover, the private sector’s sukuk export needs are believed to increase due to the large infrastructure investments on the agenda. Bank Asya is planning to export at least 125 million Turkish Liras of additional sukuk before the year ended, while Albaraka Türk is mulling exporting over $200 million worth of sukuk within the last quarter or at the beginning of next year. Non-interest financial tools are accorded a great importance in Turkey’s bid to make Istanbul a global financial center as well.

Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) yesterday announced that the certification granted to Islamic banking and finance information systems offered by Path Solutions has been withdrawn with effect from September 1. Therefore, AAOIFI no longer certifies that the Islamic banking and finance information systems offered by Path Solutions as being compliant to AAOIFI standards, and bears no responsibility on the Sharia compliance of their systems.

The total value of new issuances in the Aggregate Gulf Cooperation Council (“GCC”) Bonds and Sukuk market, during the first half of 2013 (“H1 2013”) was USD 45.5 billion, a 4.6% increase in comparisonto the respective period of 2012 (“H1 2012”).

Bahrain's Ithmaar Bank has announced its chief executive Mohammed Bucheerei is to retire at the end of August and be replaced by Ahmed Abdul Rahim, currently general manager, as acting head. Bucheerei led the bank's transition from an Islamic investment bank to a retail Islamic lender offering a range of Shari'ah-compliant products.

Qatar-based Barwa Bank recently announcd aseries of changes to its leadership team including the promotions of Khalid Al-Ahbabi to General Manager, Wholesale & Business Banking and Hussain al-Abdulla to General Manager, Personal Banking & Wealth Management, a new role for Keith Bradley as Group Chief Operating Officer & General Manager International as well as the appointment of Nasser Mohamad Al-Hajiri as Chief Administrative Officer. Each individual has several years of experience in the banking sector.

Bank Negara has rejected BIMB Holdings’ proposed move to issue sukuk using Bank Islam Malaysia’s shares as security for the debt, but has allowed the former to acquire the remaining 49% stake in the latter. The central bank has then requested to source and notify the bank on suitable alternative assets as security for the proposed sukuk. An analyst felt the rejection by the central bank would not deter or derail BIMB’s plans to acquire Bank Islam, although it may slow down the purchase process. Last month, BIMB had announced the proposed acquisition of the remaining stake in Bank Islam – 30.5% from the Dubai Financial Group and 18.5% from Lembaga Tabung Haji – for a total cash consideration of US$884.6mil (RM2.87bil). This was to be financed via a two-for-five rights issue of 426.7 million new shares, and a sukuk issuance of up to RM1.47bil.

Islamic Banking and Finance has been nearly confined to the rich people and as per the ideology of capitalism, the profit urge has captured the Islamic Financial Industry and discriminated the underprivileged people and letting them deprived from Islamic financial services. The commercialism has captured Islamic Finance institutions in such a way that business with and financing to the poor has gone astray from their agenda. The share of Islamic Microfinance is less than 1% from the overall volume of $ 1.3 trillion of Islamic Finance Industry. Islamic Microfinance can be energized by utilizing available charity amount of Islamic Banking and Finance industry to reduce poverty and fuel social development. Islamic Financial Institutions have to execute and promote Islamic Microfinance otherwise there is a definite chance of rumors that Islamic Banking and Finance services are only for rich people.

Experts say that 85 percent of Saudi families do not save money and resort to diving into their savings or borrowing to meet their needs. The absence of savings is one of the biggest weaknesses of the Saudi economy. The spirit of consumption is dominant and this negatively affects economic growth and increases the rate of inflation due to the increased rate of consumption. Due to the absence of a culture of saving, Saudi families are exposed to financial woes every month, not because they earn a low income but because they never learned to save money and engage in financial planning. Most Saudi families suffer from over-spending and sometimes spend 10 percent more than they earn. This urges them to borrow money.

Capital Intelligence (CI) has assigned Gulf Finance House (GFH) Long and Short-Term Ratings of 'BB-' and 'B', respectively. The ratings are supported by a significant reduction in leverage as a result of debt repayment and increases in equity, the successful restructuring of debt with an extended repayment period, and the return to profitability in 2012. The factors currently constraining the ratings are the forced debt restructuring in 2012, tight liquidity (although this improved in H1 2013), an encumbered asset base, a small balance sheet coupled with single name and sector concentrations in the asset base, reliance on deal flow for income generation, and the still challenging investment environment.In view of the improvement in both liquidity and leverage in H1 2013, a 'Positive' Outlook is assigned to the ratings.

The number of the I phone Quran application users that was launched by Kuwait Finance House (KFH) 3 years ago has reached a million and 800 thousand, around 1800 daily users. The third version of I phone Quran application has high resolution, in addition to having the numerous features like night Reading and different color schemes. Moreover, the number of Android users of the Quran application has increased to reach 50 thousand, about 60 users a day. The Android app has been recently launched with many distinguished features, and users can download the application for free by typing 'KFH' during the search. KFH is keen to upgrade its applications and its programs on the internet. KFH is also eager to use advanced technology to serve the public, since this is part of its social responsibility.

Nakheel has released interest and profit payments of AED197 million (US$53.7 million) to its lenders in compliance with its restructuring requirements. The company emphasized that it remains focused on meeting its commitments in accordance with the terms set out in its company restructure and revised business plan. Nakheel's commitment, achievements and newly-announced projects will continue to contribute to the growth of Dubai’s real estate and tourism sector, including the government target of 20 million annual visitors to Dubai by 2020.

Oman Development Bank (ODB) is considering the launch of an Islamic window to offer Sharia-compliant products to small and medium-sized firms. After Oman adopted Islamic finance in December by issuing regulations for the sector, developing Islamic finance and smaller firms are two policies which the government hopes will cut unemployment. Government-owned ODB is likely to opt for an Islamic window instead of a full-fledged conversión into an Islamic bank. The Islamic window is not expected to start operating before the end of this year. Under the rules for Islamic windows, ODB would only be able to offer Islamic products through stand-alone branches, which would require converting some of its existing 15 branches or opening new ones.

Iran's president Hasan Rouhani has reportedly appointed Valiollah Seif, a private banker, as the head of the country's central bank. Seif will replace outgoing central bank head Mahmoud Bahmani. Seif ran the private Karafarin bank in Iran. He also supports independence for the central bank and a floating rate for Iran's currency, the rial, against foreign currencies. Seif takes over the central bank as sanctions over Iran's disputed nuclear program have been putting heavy pressure on the country's economy for the past two years. Oil exports have been slashed in half and the rial has lost two-thirds of its value since late 2011. Inflation also has shot up in the country.