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The GCC insurance industry is slated to grow to approximately $28bn by the end of 2015 and tip $40bn by 2017. Opportunities for both local and international insurers are huge, according to Markaz (Kuwait Financial Centre) in their latest GCC Insurance report, which looks at the trends in Insurance Premium volumes across the GCC. This includes the takaful (Islamic Insurance), life, non-life, health, and reinsurance domains and compares the macro insurance factors such as insurance density, insurance penetration, and so on, of the GCC states with that of world. The drivers for the insurance industry in the GCC include the rising income levels, high amount of expatriate population, the increasing awareness among the population about the benefits of insurance, the government's policies mandating insurance in some sectors. The region also has a favorable demographic trend with youth population projected to grow and the middle class set to rise in the next few years.

Kuwait Finance House (KFH) in collaboration with Kuveyt Turk (KFH Turkey) has launched a new Turkish real estate financing service. This service provides KFH customers with an end-to-end solution to their Turkish real estate requirements, tailored to their specific needs. It will support them searching for properties in Turkey, providing assistance on negotiation of an acquisition price, competitive Islamic real estate financing and offering post-sales services, should investors need to manage the properties in their absence. A specialized section has been established by KFH in Kuwait City, in order to support customers purchasing real estate in Turkey. This office acts as a contact point and provides customers with the relevant administrative services related to Turkish real estate, like document gathering and handling, information distribution and logistics handling.

Operating income continues to be stable at Ithmaar Bank at BD36.8 million, despite a significant compression of margins in overseas subsidiary due to a 300 basis points cut in benchmark profit rates. However, a net loss of BD2.8m was announced for the first six months of the year, compared with a profit of BD583,000 in the same period last year. According to Bank chairman Prince Amr Al Faisal, the bank continues to focus on cost control after total expenses were reduced by about 4.5 per cent in the first 6 months of the year. Murabaha and other financings increased by 1.6pc to BD1.19 billion in the first half as compared to BD1.17bn a year ago. Liquid assets, comprising cash, balances and commodity placements with banks, financial and other institutions, now represent about 13pc of the balance sheet. The bank continues on its board-approved retail business focus with the objective of becoming the region's premier Islamic retail bank.

Citigroup is the third largest bond underwriter in the Gulf region this year, up from fourth a year earlier and 19th in 2011. It’s also the fourth-largest arranger of syndicated loans, up from 11th last year. Citigroup is relying on the UAE and Qatar for lending as rivals including JPMorgan & Chase Co and Deutsche Bank AG expand in Saudi, the region’s biggest economy. However, the bank’s reliance on UAE debt may bear some risks. The spread between bonds from Saudi Arabia and UAE notes widened to 323 points on August 7, the highest since April 2009. UAE yields have risen 128 basis points this year. Besides, Citigroup is also expanding elsewhere in the Middle East. The bank in June got Iraqi approval to open an office in Baghdad. Iraq is the New York-based bank’s first country opening for six years and comes as CEO Michael Corbat seeks to sell or scale back consumer operations in nations such as Turkey, Pakistan and Uruguay, reversing an expansion strategy into faster-growing economies by former CEO Vikram Pandit.

The stock of outstanding GCC fixed income instruments rose to $239.8 billion in the first six months of this year. The largest debtors are the Qatari public sector (23 per cent), the UAE financial sector (16 per cent) and the UAE public sector (15 per cent). Among non-financial private issuers, the Saudi sector is the most active with 10 per cent of all outstanding GCC debt followed closely by the UAE. Issuance was up 13.2 per cent compared to a year ago, with $30.1 billion worth of debt securities issued over the last six months. The UAE, Saudi Arabia, and Qatar accounted for 82 per cent of the issuance in 2013. The private sector has been increasingly outperforming the public sector over the last twelve months. The average maturity of outstanding GCC debt securities remained steady at 5.8 years at the end of the first half of 2013.

Abu Dhabi Islamic Bank plans to branch out in North Africa as the UAE-based lender seeks to reach a larger population. The bank applied for licenses in Algeria and Libya and is considering new operations in Tunisia and Morocco. Chief executive Tirad Mahmoud said the bank is seeking to expand in nations with a critical mass in terms of population and economic activity. Abu Dhabi Islamic Bank has also moved into countries including Saudi Arabia, Egypt and Sudan, Mahmoud said. The bank wants to be better placed to serve companies, such as Dubai-based mall operator Majid al-Futtaim, which operate across the Middle East and North Africa. Banks that comply with Islam’s ban on interest have become increasing popular after the revolts implemented Islamists into power in some North African countries.

TheAbu Dhabi Forum on Entrepreneurship, which is organised by the Khalifa Fund for Enterprise Development, will take place at the Abu Dhabi National Exhibition Centre (Adnec) from October 7 to 9. The forum aims to highlight important projects by young entrepreneurs, support fresh and creative ideas and finance innovative business models. It addresses a diverse range of issues such as financing for small and medium enterprises (SMEs) and micro-enterprises, the evolving role of young entrepreneurs in the economy, social empowerment and numerous other advancements. The forum will also provide an opportunity to meet potential investors, clients and industry bodies and learn from their experiences in the world of business. Around 69 projects totalling Dh51.4 million have been financed by the Khalifa Fund during the first quarter of this year.

Standard & Poor’s Ratings Services has lowered the counterparty credit and financial strength ratings on Dubai-based Salama/Islamic Arab Insurance Co. (Salama/IAIC) to ‘BBB+’ from ‘A-’ . The outlook is negative. The counterparty credit and financial strength ratings on Salama/IAIC’s wholly-owned, Malaysia-based reinsurance subsidiaries, BEST RE and BEST RE Family have also been lowered to ‘BBB’ from ‘A-’ . The consolidated Salama/IAIC group displays a satisfactory business risk profile, and a strong financial risk profile. S&P has revised its view of the BEST RE subgroup’s group status to its parent to strategically important from core because the subgroup’s activities, size, and earnings potential have reduced. Despite the group and subgroup’s current difficulties, the rating agency continues to regard the consolidated Salama group’s capital adequacy as extremely strong. The outlook can be revised to stable if the situation at BEST RE stabilizes without causing material financial or reputational issues for Salama/IAIC.

Bahrain-based Seera Investment Bank has reported a net income of $5.1 million for the first half of this year compared with a net income of $1.7m for the same period last year. Total income was $8.5m compared with $4.6m last time. The increase in income was attributed to an increase in management fees on assets under management and the early settlement of financing relating to the bank's aviation portfolio. Total assets of the bank were $349m. Seera's balance sheet remains strong with a capital adequacy ratio of 23 per cent and liquid assets of $33m. Profit for the second quarter was $5.5m compared with a profit of $830,000 for the same period last year. Seera has investments in the industrial manufacturing and transportation sectors in addition to smaller investments in the utilities and real estate sectors.

Standard & Poor's reduced Al Baraka's rating from BBB- to BB+ with a negative outlook on the back of increased sovereign and economic risk in the regions where it operates, particularly Egypt and Jordan. Operating environment and credit conditions in the MENA region is expected to remain tough over the coming 12-18 months. Consequently, S&P foresees an adverse impact on Al Baraka's business and financial profiles. The negative outlook reflects S&P's view that the lender's capitalisation could deteriorate if, for instance, Egypt defaults and economic conditions worsen in Jordan. This is the first time that Al Baraka has been downgraded. Earlier this week, the lender said that net income for the second quarter of 2013 rose 11 percent from a year ago to $42 million.

Standard & Poor’s Ratings Services has lowered its long- and short-term counterparty credit ratings on Bahrain-based Al Baraka Banking Group (ABG) to 'BB+/B' from 'BBB-/A-3'. The outlook is negative. The rating action follows S&P's review of the wider implications of deteriorated sovereign creditworthiness in the past 12 months in some countries in the Middle East and North Africa (MENA) , where ABG operates, especially Egypt and Jordan. The ratings agency lowered its assessment of ABG's risk position to "adequate" from "strong," owing to its operations in high-risk MENA countries. The ratings remain supported by ABG's strong business position, and its average funding and adequate liquidity position. The negative outlook reflects S&P's view that ABG’s capitalization could deteriorate to levels deemed as weak if, for instance, Egypt defaults and further economic stress materializes in Jordan.

Bahrain-based Gulf Finance House has announced a net profit of $4.2m for the half year of 2013. Net profit fell compared to $5.7m in the corresponding half year period in 2012 despite a drive to reduce costs. Second quarter net profit also dropped to $2.7m from $4.7m for Q2 2012. Total income for the second quarter was $13.4m compared to a total income of $19.7m for the second quarter of 2012. It said income was primarily generated from management fees from funds under management, investment income and recoveries. It added that operating costs for the half year period reduced by 27 percent to $19.6m compared to $26.9m for the prior year period, underlining ongoing efforts in the streamlining of operations. GFH's new strategy calls for it to become more involved in its investments, and to hold projects until completion rather than passing them to third parties to develop as was done in the past.

In cooperation with Chambers of Commerce in Abha and Eastern Region, the National Commercial Bank ( NCB ) has recently celebrated the graduates of "How to Start Your Small Business" Course. A number of 94 entrepreneurs from Jeddah, Abha and Eastern Region enrolled in the course. The course has covered a great number of entrepreneurs projects in different areas including industrial, commercial and other projects. It included theory training for 10 days, followed by 6 sessions within 3 months for practical training, which included a program for follow-up and consultancy. The course comes in line with NCB CSR programs, through which the bank trains entrepreneurs from men and women to start their enterprises, encourages investment culture and creates a competitive environment in the local market.

The British University in Dubai (BUiD) organised and successfully concluded its second Sustainability Summer School (SSS)end June where over 50 undergraduate and post-graduate students from various universities across the region participated in a week-long professional development programme on sustainability.The theme at the event this year was “Greener Hands for a Greener Community’. It was aimed at the participating students imparting knowledge on how to reduce the ecological footprint not only as individuals but also as campaigners who would enthuse other members of the community in developing greener communities for a greener future.Members of the five competing teams were proactive in coming up with innovative eco-conservation ideas and making field trips to organisations such as Masdar City, Dubai Metro, DEWA and the Platinum Pacific Control’s building that uses solar energy.

Dubai SME has signed a memorandum of understanding (MoU) with the World Entrepreneurship Forum to host the UAE chapter of the Forum to promote entrepreneurial idea exchange and networking in the region. Dubai will be the first city in the Middle East to host a local chapter of the World Entrepreneurship Forum in December 2013. Dubai SME will be responsible for co-ordinating the local chapter through co-shaping policy ideas with regional key stakeholders to influence change and advancing entrepreneurship as a core strategy for socio-economic development. The Forum brings together key actors of the entrepreneurial ecosystem from a pool of entrepreneurs, social entrepreneurs, stakeholders, service providers, experts, academics, and politicians selected for their contribution and impact to society.

Bank Sohar's Islamic banking arm, Sohar Islamic, has launched a Shari'ah-compliant home finance programme, as part of its plan to expand the products and services portfolio. The new product features flexible terms, which offer financing for up to 80% of the property value, with a repayment period of up to 25 years.

Emirates Islamic Bank has tied up with a number of organisations to promote activities and charity campaigns to mark the spirit of Ramadan. The bank is the main sponsor for the Zakat Fund Ramadan Campaign, which aims to emphasise the importance of Zakat during Ramadan. In another major initiative, Emirates Islamic Bank is the Gold Sponsor for the Dubai International Holy Quran Award which aims to encourage young Muslims to memorise and understand the Holy Quran. The bank is also the main sponsor for the Al Ajer Initiative, to encourage people to understand the importance of forgiveness. Moreover, Emirates Islamic Bank is also supporting the Ramadan activities of Emirates Foundation for Youth Development that facilitates public-private funded initiatives. Emirates Islamic Bank has also teamed up with Dar Al Ber Society to provide vouchers worth Dhs500 to 100 underprivileged families during Ramadan.

Kuwait Finance House (KFH) announced 103 million Kuwaiti dinar or $362 million of precautionary provisions on Tuesday, as it posted a smaller than expected rise in second-quarter net profit. The bank did not provide any more details on the provisions, which cover the first half of the year, nor a comparative figure for the same period the year before. It added that indicators related to profit growth and operating revenues were positive. Net profit rose to 26.8 million dinars in the three months ended June. The lender did not provide further details on its profit. It said it would continue with its expansion plans after its 319 million dinar capital increase last month.

Dubai Financial Group (DFG) has agreed to divest of its 30.5% stake in Bank Islam to BIMB Holdings in Malaysia, in a deal worth $550m. BIMB Holdings currently owns 49% stake of Bank Islam and the recent acquisition, which completed on 31 July 2013, will enable it to strengthen its banking business in the country. Bank Islam manages a branch network of more than 127 offices. Following DFG's acquisition, the total assets of the lender rose from MYR14.6bn ($ 4.5bn) in 2006 to MYR37.4bn ($11.5bn) by the end of 2012. In June this year, the company divested its credit card operation The Dubai First to Abu Dhabi based First Gulf Bank (FGB) in a deal reached at $164m.

Qatar Islamic Insurance Company has reported a 3% rise in first-half net profit to QR35.84mn despite expenses growing faster than income mainly due to a 13% rise in general and administrative costs. Income from investments in associates almost quadrupled to QR3.97mn, rental income grew 16% to QR4.53mn, wakala fee by 8% to QR23.98mn and other income by 28% to QR1.06mn. However, income from shareholders’ investments shrank 30% to QR6.73mn and shareholders’ share in policyholders’ investment income by 5% to QR7.74mn. Nevertheless, total income grew 5% to QR48mn. Total assets were valued at QR662.22mn comprising policyholders’ assets of QR365.41mn and shareholders’ assets of QR296.81mn. Total shareholders’ equity stood at QR263.39mn on a capital base of QR150mn and earnings-per-share was QR2.39 at the end of June 30, 2013.