IslamicFinance.de

Few Saudis are insuring their homes despite the recent floods and the relatively low-cost SR 5,000 annual premium per house on average. Sheikh Khaldoun Barakat, chairman of the board of directors of Arab Reinsurance Company, said current prices are “reasonable” and based on a house’s location, preparations to avoid risk and other factors.
He added companies and shops need to have insurance because there is a high risk of heavy losses if an accident or disaster occurs. Homeowners and businesspeople in Saudi Arabia are unaware of the importance of insurance against disasters. according to Barakat. Insurance experts said that government and the private sector should raise awareness of the importance of housing insurance.

Bahrain-based First Energy Bank (FEB) plans to build a $1 billion polysilicon production plant in Saudi Arabia with a local partner to cater to rising regional investments in solar power. The project is spearheaded by the strategic partner, FEB and the techno-commercial developer, Project Management and Development Company (PMD). It will cover a total area of approximately 375,000 square meters in Al Jubail Industrial City 2, and is expected to start production in 2013. The project will have a total production capacity of 7,500 tons per annum. It is expected that future expansion of the project facility (in second phase) would include investments in downstream sector. The project has achieved key milestones like the signing of the power supply agreement with Saudi Electricity Company (SEC).

Arcapita Bank has lined up $350 million in financing to take it out of Chapter 11 protection this summer. The Bahraini investment firm is seeking bankruptcy-court approval to move forward with a deal under which Goldman Sachs International will arrange and syndicate up to $350 million in financing, which court papers show will be structured to be compliant with Islamic Sharia law.

The event to support "Generation F" on Tuesday 16 April at Kuwait Oil Company (KOC) saw a collection of 70 Kuwaiti female oil and gas professionals congregate to develop their financial skills necessary for smart wealth preservation. London-based Gatehouse Bank participated in the workshop. The company has a history of supporting Arab women through education. Encouraging female financial literacy and supporting the development of the financial skills necessary for long term wealth preservation is a core objective for the Bank. According to Vice President Ms Azeemeh Zaheer, Gatehouse Bank works with women on education programmes to demystify the financial markets, enabling women to make their own decisions about how to build and diversify their investment portfolios in the best possible way.

Leonardo Peklar, the new chief executive of Hawkamah Institute for Corporate Governance, is planning an initiative to encourage regional companies to appoint more women to their boards. He hopes to invite female board members from global multinationals to the GCC region to extol the virtues of women business leaders. Currently, only 1.5 per cent of board seats in the GCC are held by women, according to Hawkamah statistics. Another priority for Mr Peklar is the issue of reforming the way the region's mainly family-owned businesses are run. Banks and Islamic finance and private equity were other sectors he planned to focus on improving corporate governance.

Sixty percent of Saudis save less than 10 percent of their monthly salary, according to a survey conducted by souqalmal.com. A recent report issued by Jadwa Investment confirmed that the Saudi consumer price index (CPI) inflation maintained the 3.9 percent year-on-year increase for the third consecutive month in March. According to the report, the main contributors to inflation are food and housing rent components. Financial experts have said Saudi families lack awareness on consumer consumption and financial management. Many reports confirm that Saudis are one of the highest spenders in the MENA region.

In 2007, the Organisation of Islamic Cooperation (OIC) created the Science, Technology and Innovation Organisation (STIO) to organise cooperative research and pool resources among its 57 member countries. STIO’s operated under the banner ‘Your money for your projects’ butut there is very little to show for its six years of existence. One problem is the politics of power within the Islamic world. It is important to rise above such politics to create organisations with shared ownership. Furthermore, member countries are allowed to spend up to 90 per cent of their financial commitment to STIO within their countries with just 10 per cent going to the organisation. Therefore, countries have tended to see the 10 per cent contribution as an undesirable tax. Without a fresh perspective, major redesign, and some inspiration, STIO is likely to remain dead on arrival.

The Islamic Development Bank (IDB) is reviewing the government's recent measures on the Padma Bridge Project to take a decision on revival of its committed funding support for it. As part of the original deal, it was supposed to to provide US$ 140 million for the approach road on the bridge's Jajira side. The ministry of finance is hopeful of getting the fund from the lender. However, IDB is observing what steps the government takes on the main bridge construction and river training work. So far, the project has not yet matured enough for IDB to reconsider its decision on it.

The 2nd Joint District Judge Court, Dhaka has given its verdict on Social Islami Bank Ltd's plea to dispose off the entire shares and delist the names of Islamic Charitable Society and Shahir Abdulraouf Batterjee from the bank's Share Register Book. The order depicts that the Islamic Charitable Society and Shahir Abdulraouf Batterjee being banned and non-existent entity, and hence, SIBL is entitled to sell the aforesaid shares and deposit the sale proceeds thereof in the special reserve account / suspense account. The Court also empowered SIBL to delete the names of both Islamic Charitable Society and Shahir Abdulraouf Batterjee from the bank's Share Register Book after selling of the aforesaid shares.

Business men and royalty from the Middle East have been acquiring majority shares in some of Europe’s supposed “less attractive” soccer clubs. Malaga, Paris Saint-Germain and Manchester City are the three biggest Middle Eastern owned assets, and all three have made improvements since the introduction of their respective owners. What the 2012/13 Champions League season has shown is that investment from Middle Eastern owners can only get a club so far, after that the club has to let the players gel and grow together. The Champions League crown will once again be the main target next season, and if the clubs use the summer months well, they could be serious challengers; Manchester City most likely as underdogs, but Paris Saint-Germain, certainly as one of the favourites.

In response to the exponential growth of Islamic Banking as a field, Woodbridge University has introduced its MBA program in Islamic Banking. The program is designed to equip executives with the specialist knowledge required for professional development in the international finance sector. It follows many of the same core modules as the Banking and Finance MBA, but also includes specialist modules in Islamic Banking and Finance. The MBA Program has attracted over 1,500 new students so far.

According to the Governor of the Central Bank, Mallam Sanusi Lamido Sanusi, banks in Nigeria will be required to appoint at least 30 per cent female board members and 40 per cent management staff by 2014. The decision was taken with a view to stimulating women's participation in development and nation building. He added that this year every bank must publish its gender positions, when they publish their statement of accounts. The Central Bank will not be exempted from this. Moreover, Mallam Sanusi lamented the high rate of school drop-outs in the North where over 70 per cent of girls cannot read.

The main suspect wanted in connection with a brazen daylight robbery of more than US$10 million (Dh36.7m) from Syrian International Bank for Trade and Finance (IBTF) has been held for questioning in Egypt. In January, $3.4m in cash, €4.75m (Dh22.8m) and 33m Syrian pounds (Dh1.7m) was allegedly stolen from the vault of the IBTF in Damascus. The bank learnt that the suspect fled Damascus to Egypt immediately after allegedly committing the crime. The suspect was arrested last month, upon the discovery by Cairo authorities that his passport was fraudulent. The bank has hired a lawyer to expedite the extradition of the suspect from Egypt.

Kuwait Finance House (KFH) organized in collaboration with the Islamic Finance Club at Gulf University for Science and Technology a scientific trip for a delegation of the university students to the United Kingdom. The trip that lasted for 7 days aimed to develop scientific knowledge in Islamic finance and increase awareness of the latest development of this industry. 17 students from various majors of the university participated in this trip. Moreover KFH organized, on the sidelines of the visit, a lecture on the principles of Islamic economy and its impacts on the lives of communities.

Tatweej Academy for Excellence Awards and the Arab Organization for Social Responsibility have granted Mr. Musa Shihadeh, Vice Chairman, General Manager of Jordan Islamic Bank (JIB) a red sash and gold medal of Distinguished and a Certificate of Excellence in the field of wise leadership. This ceremony honors Shihadeh in appreciation of his distinguished efforts in settling islamic banking rules in Jordan, and possessing leadership and management characteristics. The ceremony was held in Dubai with the participation and attendance of institutions and management figures who were honored for the achievements and initiatives.

Dubai Multi Commodities Centre (DMCC) has announced the inaugural Commodity Murabaha transaction on its DMCC Tradeflow platform. The transaction took place between Noor Islamic Bank and Commercial Bank of Dubai, marking the official launch of the DMCC Tradeflow Islamic product portfolio. According to Ahmed Bin Sulayem, Executive Chairman, DMCC, the DMCC Tradeflow pioneered the use of an electronic central registry of commodity ownership in Dubai. The commodities available on DMCC Tradeflow include oil products, foodstuffs and base metals and if required these goods can be inspected easily by Shari’ah scholars.

The Securities and Exchange Commission of Pakistan (SECP) has cancelled asset management and advisory service licences of Dawood Capital Management Limited (DCML) and slapped a penalty of Rs20 million on its chief executive officer for providing undue benefits to its connected persons and close relatives. Besides, it also imposed another million rupees penalty on the chief financial officer/company secretary. Redemptions were made from collective investment schemes by the connected persons before provisioning and the connected persons, the CEO and her close relatives had averted an imminent loss of Rs18.224 million.

Sustainable economic development in the Middle East and North Africa (MENA) will depend on job creation, education, poverty alleviation, and careful environmental management. Companies have a particularly important role to play through corporate social responsibility (CSR) initiatives that align with national development objectives. In order to improve CSR as a discipline, companies and governments should follow a four-step process: Define CSR for the MENA Región, Study Current CSR Activity, Identify CSR Best Practices, and Create an Environment for CSR.

The Securities and Exchanges Commission of Pakistan (SECP) revoked the licence of Dawood Capital Management and imposed a Rs20 million fine on its CEO Tara Uzra Dawood for insider trading. The SECP issued its order on Friday, after having conducted a nine-month investigation into the matter. According to the SECP’s findings, Dawood Capital Management had invested in corporate bonds issued by several companies that had defaulted on their obligations to bondholders. Dawood Capital Management said they are reviewing the order and reserve the right to appeal it.

Despite efforts to support financial literacy, only 35 percent of teens know how to manage a credit card and only 20 percent of teachers feel prepared to teach the subject. To help combat this critical social gap, some leading companies have started initiatives. For example, PwC is mobilizing its 35,000 people who are skilled in finance, accounting and business to address youth education with a focus on financial literacy. The firm’s centerpiece commitment, formally titled PwC’s Earn Your Future is a five-year commitment to reach more than 2.5 million students and educators and represents a $160 million investment for the firm, $60 million in cash and 1 million service hours.