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Guidance Investments (GI) has launched a RM150 million Shariah-compliant investment fund for equipment leasing for the Saudi Arabian market in partnership with Lembaga Tabung Haji (TH). This Tabung Haji acted as the capital provider, while the US-based ATEL Capital Group, the equipment leasing company is to provide the machineries for the Saudi market. TH CIO Abd Kadir Sahlan said that his company has committed a total of RM150 million in the private equity fund in support of ATEL in this venture. The funds will be disbursed in phases over the next two to three years, depending on the deployment of the portfolio in the Saudi market. At the same time, Guidance Investments has formally launched its operations in Malaysia with the opening of its headquarters in Kuala Lumpur.

Family businesses in the Middle East have performed well over the last year, with 83 %, reporting growth in sales in the past year, according to a Family Business Survey conducted by PwC. 23% of the family businesses in the region said that they are aiming to grow aggressively and quickly over the next five years. Moreover, raised standards of education coupled with improved economic conditions and financial opportunities have resulted in women contributing significantly towards the growth and success of family businesses. Family businesses are thriving regionally with sales growth particularly strong in retail, manufacturing and construction sectors. Recruitment of skilled staff, succession planning and family politics are some of the key challenges facing family businesses.

In the Middle East CSR is largely characterised by a charity mindset, easily regarded as archaic by outsiders. However, the region’s CSR focus on charity is explained by the general perception that CSR is a corporate form of Zakat, one of Islam’s five pillars, which stipulates that Muslims give a certain percentage of their wealth in charity. Saudi companies primarily focus their CSR activities on programmes that have little to do with these companies’ core activities. Some present aid to the handicapped while others support and encourage young Saudi citizens to join the labour force. Some concerns, however, receive little or no attention, such as environmental issues, human rights of guest workers or the equal treatment of women in the workplace. The CSR focus on charity is deeply rooted in religious tradition. Therefore, CSR in the Middle East will develop along its own path.

Last week, Arcapita took on Tide Natural Gas Storage LP's contention that Arcapita's bankruptcy plan shouldn't be approved by a judge because of $70 million it says it is owed.The $70 million lies in an escrow account and stems from Tide's 2010 purchase of natural-gas storage facilities from an Arcapita subsidiary. Tide has been fighting for the money in U.S. district court in Manhattan for two years saying its claim to the $70 million shouldn't be placed behind the claims of other creditors. In its filing made last week, Arcapita says the $70 million claim by Tide should be subordinated to those of other creditors. The filing comes as Arcapita tries to finalize its exit from Chapter 11. Tide lawyers have said they will most likely fight the plan at a hearing next month.

Saudi developer Dar Al Arkan has lowered price guidance on its planned Islamic bond issue. The company, which is planning to raise at least $300 million from a five-year Islamic bond, revised its guidance lower to around 6 percent from initial yield guidance of 6.25 percent. An update from lead arrangers on Monday indicated that order books were over $500 million. Dar Al Arkan has picked Bahrain-based Bank Al Khair, Deutsche Bank, Emirates NBD, Goldman Sachs and Qatari pair Masraf Al Rayan and QInvest to arrange the potential sale.

'My Savings' is a new initiative announced by the Government of Dubai in collaboration with National Bonds Corporation. During the introductory session on the goals and mechanism of the initiative, National Bonds elaborated on the benefits and advantages of the employee savings programme. The presentation was attended by senior officials,human resource directors and employees from Dubai Public Prosecution who confirmed their support for the initiative. Dubai Public Prosecution employees who opt to participate in the Shari'a compliant 'My Savings' programme will specify a fixed amount to be set aside from their salaries every month as part of their savings and Takaful plan with National Bonds Corporation. Moreover, the initiative also offers employees a 10% discount on Takaful family coverage programmes, as well access to free consultations pertaining to income management and financial planning.

Moody's Investors Service has downgraded Kuwait Finance House's (KFH) long term ratings by one notch to A1 from Aa3. Moody's also downgraded KFH's baseline credit assessment (BCA) and bank financial strength rating (BFSR) by two notches to ba1/D+ from baa2/C- respectively. The Prime-1 short term rating was confirmed. All ratings assigned to KFH carry a negative outlook. The rating actions reflect (1) continued asset quality pressures (2) an increasing reliance on volatile investment income and (3) the current organisational complexity and overall risk profile inconsistent with global peers. The rating action concludes the review for downgrade initiated for Kuwait Finance House on 7 November 2012.

Al Baraka Islamic Bank is raising $200 million through trust certificates in a Sukuk Al Wakala issue which will mature in 2015. The 18-month sukuk is aimed at raising cash to help increase the bank's exposure to Sharia-compliant trade finance. The issue is being promoted through a private placement with participants able to invest a minimum of $100,000. The purchase price for the certificates is 100 per cent of their face amount, plus an amount equal to 2pc of the face amount of the certificates for an agency. The certificates will not be listed or admitted to trading on any stock exchanges or markets. The bank expects a profit return on the certificates of 6pc over the 18- month period.

The International Monetary Fund’s (IMF) latest review of Bahrain points out that the size of the financial sector remains a key structural vulnerability of the banking sector. Stress tests indicate that the large wholesale segment is resilient to credit shocks, but there are pockets of vulnerabilities in the retail segment, particularly in Islamic banks because of their concentrated exposures to local and regional real estate. Risks in vulnerable banks could be ameliorated by the buildup of additional capital cushions through earnings retention. Planned adoption of the Basel III capital and liquidity frameworks, the designation of domestically systemically-important financial institutions, and moving the existing deposit insurance scheme to a pre-funded system should be considered.

Kuwaiti Ambassador to Qatar Ali Salman Al-Haifi praised Kuwaiti-Qatar coordination, namely setting up the sixth waqf forum. The forum which concluded on Tuesday reflected keenness of the two countries on maintaining the Islamic endowment, which is one of the important pillars for social solidarity, Al-Haifi said. The two-day forum, which dealt with emerging issues and Islamic legitimacy, was organized by Qatar's Ministry of Awqaf and Islamic Affairs, in coordination with Kuwait Awqaf awqaf authorities and the Islamic Research and Training Institute, an affiliate of the Islamic Development Bank Group.

The U.S. Treasury Department has placed sanctions on Al Hilal Exchange and Al Fida International General Trading, both based in Dubai. The two institutions were targeted for their role in providing financial services to Bank Mellat, which is itself under U.S. sanctions for being involved in Iran’s nuclear program. Both the exchange house and the trading company helped Iran maintain access to foreign currency Exchange. Moreover, Al Hilal also provided services to Bank Melli, which is also under U.S. sanctions. Representatives from each firm couldn’t be reached.

Qatar is striving to raise its credit rating to ‘AAA’, two levels higher than its current rating of 'AA' with a stable outlook. The country’s economic growth accelerated to an average 13% during the period from 2008 to 2012. Such favourable international ratings, combined with a healthy financial climate, ensured that Qatar enjoyed a stable economic outlook. However, Qatar may find it difficult to win a credit rating upgrade in the next two years unless the nation reduces its reliance on public spending. According to Standard & Poor's, Qatar’s limited monetary flexibility, and its banks’ increasing dependence on external financing stand in the way of raising the rating from ‘AA’.

Goldman Sachs International on Wednesday outbid Fortress Investment Group LLC to provide exit financing to Arcapita Bank BSC worth up to $350 million, money that will allow the Bahraini bank to meet outstanding obligations and work its way out of bankruptcy. U.S. Bankruptcy Judge Sean H. Lane noted that the bank was in the unusual position of having two institutions fighting over which would be able to provide the financing.

Tamkeen and Family Bank announced the launch of 'Mantoojati', a joint initiative aimed at enhancing the growth and sustainability of productive families in Bahrain. Through "Mantoojati", the beneficiaries will receive support to set up kiosks in selected shopping malls around the kingdom to market their products and services to a wider customer base. The support will be around BD6000 per applicant and will cover the cost of renting and setting up a booth. This will be complemented by the advisory services already provided to the beneficiaries by Tamkeen and Family Bank. According to Dr. Atef Elshabrawy, CEO of Family Bank, the programme seeks to encourage and motivate local and home-made goods and crafts, which the bank supports through funding and guidance.

Bahrain-based Al Baraka Banking Group (ABG) announced net income increased by 15 per cent to $66 million, and total operating income by 16 per cent to $233 million in the first quarter of 2013 compared to the same period of 2012. Total assets increased by 2 per cent and amounted to $19.5 billion. Total deposits including equity of investment accountholders grew by 2 per cent while total financing and investments remained unchanged at the end of March 2013 as compared with the end of December 2012. According to the group's CEO Adnan Ahmed Yousif, the good results are due to the bank's initiatives like introducing more innovative products, expanding the branch network of ABG subsidiary units, and entering new markets as well as modernizing and developing the group's infrastructures.

Dubai recently announced that its latest aspiration was to become the leading Islamic business hub in the world. Under the umbrella of Islamic finance, the emirate is hoping to provide the best facilities for Islamic finance instruments, Islamic insurance, the halal food industry and Islamic trade and quality-management standards. Dubai has numerous advantages as an Islamic finance hub, like its existing strong business and financial infrastructure as well as an established regulatory framework and political and socio-economic stability. Moreover, the emirate plans to set up a central Shariah board to supervise all Islamic financial products used in Dubai. However, the emirate needs to integrate a Shariah- compliant business framework with the already established conventional framework. Furthermore, Dubai also faces rivalry from the other GCC nations.

The Board of directors of Jordan Islamic Bank that is represented by Mr. Adnan Ahmad Yousif approved the financial statements of the 1st quarter of the current year. The Bank has achieved net profits after tax that amounted to $14.67m compared to $10.16m during the same period last year. Shareholders' equity at the end of the first quarter of the current year increased by 4.6% to reach about $336.95m. The Bank's assets with the managed accounts added to (restricted investment accounts and Muqarada bonds) amounted to about $4.67bn. Customers' deposits (including managed accounts) at the end of the 1st quarter of the current year reached approximately $4.200bn. Mr. Adnan Ahmed Yousif expressed his satisfaction over the results the Bank.

The sixth waqf forum will kick off in Doha on Monday under auspices of Qatari Prime Minister and Minister of Foreign Affairs Sheikh Hamad Bin Jassem Al Thani with delegations from 15 Arab and Muslim countries. The forum, themed "new issues and juridical rooting," will discuss a number of legal contemporary issues relating to the Islamic jurisprudence in the area 'Awaqf' (endowments). The gathering is being organized by the Qatari Ministry of Awqaf and Islamic Affairs in collaboration with Kuwait Awqaf Public Foundation (KAPF) and the Islamic Development Bank Group (IDB).

Bahrain-based Islamic investment bank Gulf Finance House (GFH) reported a 50 per cent increase in net profit at $1.5 million for the first quarter this year. Total income for the period was at $11.1m. Income was primarily from fees from funds under management and a profit of $4.9m from repurchase of debts at discount. The bank's strategy of streamlined operations continued to bear results with a 30pc reduction in operating costs for the current quarter at $8.3m compared with $11.9m in first quarter of last year. GFH acting chief executive Hisham Al Rayes said GFH Capital undertook due diligence on a number of potential strategic investors for Leeds United FC and exit arrangements for Mega City Navi Mumbai focusing on profitable growth.

You will be responsible to develop, launch and run Sharjah compliant retail products for the Islamic Banking arm. You will also provide leadership and hands on guidance to the team to achieve pre-set financial / non financial targets.