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Dentons advised the Islamic Development Bank (IsDB) on the update of the IsDB Trust Services Limited $10 billion Trust Certificate Issuance Programme completed on 24 February 2015. Dentons also advised the IsDB on the issue of $1 billion Trust Certificates due 2020 under the Programme, completed on 12 March 2015. The Programme was listed on the London Stock Exchange and NASDAQ Dubai. The Programme was arranged by HSBC and CIMB, HSBC, National Bank of Abu Dhabi PJSC and Standard Chartered Bank acted as Dealers. The Dentons team was led by Alex Roussos and included senior associate Beene Ndulo and associate Katie Phillips.

IdealRatings has launched of a Shari’ah compliant Asia-Pacific REITs Index, called the IdealRatings Asia-Pacific REITs Index, for the use of Fund Managers who are benchmarking REITs funds. For a start, the REITs Index will cover Asia-Pacific REITs and it will subsequently widen the coverage to include the entire global REITs universe. The market cap-weighted, free-float Index has a methodology to review the universe eligibility annually. The Shari’ah screening of the eligible universe takes place quarterly and the index is also re-balanced on quarterly basis. The IdealRatings Asia-Pacific REITs Index is calculated in US Dollars with REITs listed in Australia, Japan, Singapore and other countries.

Emirates Investment Bank (EIBank) has published its second “GCC Wealth Insight Report”, which outlines the views of high net worth individuals (“HNWIs”) across the Gulf on local and global economies as well as the main elements that define their investment and banking decisions. The Report found that GCC HNWIs are more positive about the economic situation in the Gulf region than globally. The more cautious approach to the global economy taken by regional HNWIs is matched by an increasing preference to keep assets closer to home, which has risen 19 percentage points since last year to 83 per cent. Regional HNWIs are also more likely to have a local rather than international bank to help manage their wealth compared to last year.

Moody's Investors Service has assigned a provisional (P)A3 senior unsecured (foreign and local currency) MTN rating to the $3 billion Trust Certificates Issuance Program of SIB Sukuk Company III Limited, a special purpose vehicle incorporated in the Cayman Islands by Sharjah Islamic Bank PJSC (SIB). The outlook on the issuer is stable. The (P) A3 rating assigned to the Sukuk trust certificates is at the same level as the A3 foreign and local currency issuer rating of SIB. The proceeds of each issue of Certificates will be used by the Issuer to acquire an ownership interest in a portfolio of assets. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavour to assign definitive ratings to any issue of Certificates.

Indonesian and Malaysian Islamic bonds are diverging as cheaper oil has opposite impacts on fiscal budgets. The yield on Indonesia’s US dollar Sukuk due 2022 fell to a 21-month low of 3.72 per cent in February, while Malaysia’s 2021 debt yield climbed to 3.05 per cent. Default risk for Indonesia has dropped nine basis points this year to 148, while that for Malaysia rose 15 to 121 just as both nations plan US currency global offerings before the Federal Reserve starts raising interest rates. Barclays Plc forecast a sovereign credit upgrade for Indonesia after an overhaul of a decades-old fuel-subsidy program last month. Malaysia, the region’s only major crude exporter, is contending with a drop in revenue and a higher budget-deficit target, prompting Fitch Ratings to warn of a possible rating downgrade.

Malaysia reportedly plans to tap the global Islamic bond market for the first time in almost four years. Banks have been asked to submit proposals for a dollar-denominated debt offering. Malaysia will become the first sovereign to tap the overseas Islamic bond market this year and Indonesia also plans an offering. Malaysia’s state-owned Petroliam Nasional Bhd. is seeking to sell a dollar Sukuk of as much as $7 billion. Malaysia last tapped the market in 2011, when it sold $2 billion of Shari’ah-compliant notes with maturities of five and 10 years. The yield on the 2.991 percent securities due in 2016 has climbed to 1.4 percent from 2014’s low of 0.98 percent.

Aafaq Islamic Finance, a provider of Islamic finance products and services in the UAE, has been awarded ISO 9001:2008 certification for its quality management system. The company’s implemented system has been recognized for its aim to satisfy Aafaq clients through its services--meeting client expectations as well as the requirements needed in developing the quality management system continuously. The ISO, which covers the set international standards on quality management systems within organizations, was awarded after a review and evaluation conducted by the British Standard Institute (BSI), the assessing body assigned by the International Organization for Standardization to grant the ISO Certificate of Conformity.

Fitch Ratings has appointed Bashar Al Natoor as Global Head of Islamic Finance, based in Dubai. In this new role, Mr. Al Natoor will coordinate all Islamic Finance activities and expertise across Fitch's Sovereign, Financial Institutions, Corporate, Structured Finance, Infrastructure and Insurance teams. As well as being involved in the rating process of Islamic Finance instruments, the Islamic Finance Group will continue to monitor and report on this sector, produce research and commentary as well as criteria development. Mr Al Natoor has more than 14 years' experience in the Islamic Finance market. Since joining Fitch in 2007, he has overseen Fitch's Sukuk criteria and Islamic Finance practices, undertaken research and written numerous published articles on Islamic Finance.

RAQABA signed an agreement for an independent external Shari'ah audit with American Finance House (Lariba) in the second half of 2014. RAQABA issued the first Shari'ah audit report in the United States after a professional work continued for several months in an examination of the structures and procedures for LARIBA’s home financing model "Declining Participation in the Usufruct (DPU)". American Finance House (LARIBA) was founded in 1987 in Pasadena, California in the US. The main objective of this company is interest-free financing for all segments of society, by leasing or participation through specialized products in home financing, commercial property financing, auto financing, and equipment financing.

The Islamic Corporation for the Development of the Private Sector (ICD) has signed a new agreement with Azerbaijani microfinance institution Vision Fund AzerCredit. The objective is to provide advisory services with the aim of developing a comprehensive Shari’ah-compliant microfinance solution for the country. VF AzerCredit's work emphasizes the provision of loans to small and micro entrepreneurs in rural areas, especially those remote regions which remain largely unbanked, through 45 outlets in 38 districts. With more than 80,000 borrowers and a portfolio of over $83 million, the group is a leader in the Azerbaijani microfinance field.

Turkey’s takeover of Bank Asya is making the government an even bigger player in the Islamic finance industry, just as state-owned lenders Ziraat Bank, Halkbank and Vakifbank prepare to start Shari’ah-compliant units to challenge the privately-owned banks. Vakifbank will get a $300 million loan from the Islamic Development Bank to help fund its Islamic finance arm, while Halkbank plans a capital raising to finance its unit. The initial idea as announced by officials was that the newly-established banks would not chase existing participation banks’ clients but instead focus on rural areas and increase the total pie. Finance Minister Mehmet Simsek said in an October interview he considered the Islamic finance industry in Turkey to be “under-banked” and that the government looked favourably on the idea of issuing new licenses to lenders.

Al Salam Bank Bahrain has reported total comprehensive income for 2014 down 52 per cent at BHD 16.68 million. The bank showed a 79.6 per cent increase in total assets to BHD 1.96 billion while liabilities rose 95 per cent to BHD 1.6 billion. Income from financing contracts was up from BHD 26.1 million to AED 51.5 million while total operating income was up 76 per cent to BHD 46 million. However, earnings per share slipped from 8.3 to 8 fils. Al Salam Bank Bahrain reported a jump in operating expenses from BHD 11.4 million to BHD 26.4 million.

H. E. Eng. Sultan bin Saeed Al Mansouri, UAE Minister of Economy and Chairman of the Insurance Authority, issued Decision No. (25) of 2014 Pertinent to Financial Regulations for Traditional Insurance Companies and Decision No. (26) of 2014 Pertinent to Financial Regulations for Takaful Insurance Companies, which regulate the financial, technical, investment, and accounting operations of Traditional and Takaful insurers operating in the UAE. Included in the regulations, an actuary is accredited for every insurance company operating in the UAE and there are new investment rules to protect the rights of policyholders and companies against risks.

The theme of the 12th IFSB Summit underscores the recognition that while there are significant benefits to Islamic finance from the processes of growth and international integration that is underway, there are corresponding challenges in building up the regulatory, supervisory and surveillance capabilities in order to contain vulnerability to cross border volatility and contagion. In particular, many regulatory authorities involved in the regulation and supervision of the Islamic financial services industry face challenges in identifying the applicable principles and benchmarks for assessing the gaps in their existing structures.

For all the sectarian violence gripping Iraq, Shari’ah-compliant banks operating in the nation see opportunities for growth. Elaf Islamic Bank, the 14-year-old Baghdad-based lender, is targeting 28 per cent increase in profit this year, even as rival Cihan Bank said its income dropped last year as militants seized vast swathes of the country. However, Cihan Bank also said its outlook improved toward the end of last year as the US began airstrikes on Islamic State. Meanwhile, Iraq’s cabinet approved a draft law yesterday regulating the Shari’ah-compliant banking industry, which will now move to the country’s parliament for passage.

New Islamic units of three state banks will accelerate Turkey’s plans to expand the share of Shari'ah-compliant assets, said Osman Akyuz, head of the country’s Islamic banking association. Akyuz foresees the country’s interest-free assets increasing by 30 per cent to $60 billion in 2015, up from 1.2 per cent growth in the 12 months through November. The association, which represents Turkey’s four Islamic banks, is also working to introduce new debt instruments, Akyuz said. Besides, the three state banks -- Ziraat Bank, Vakif Bank and Halkbank -- have pledged to quickly set up units for Shari'ah-compliant banking.

Tawreeq, an independent Dubai/Luxembourg based group, has launched a supply chain finance platform targeting SME’s. The company led a development process to devise a Shari'ah-compliant workflow for supply chain finance. At its core is an IT platform that connects all elements under a single, cloud-based system that allows global reach and service. Tawreeq tackles challenges faced by SMEs through cash-flow tools known as factoring and reverse factoring. Tawreeq has worked closely with Amanie Advisors to ensure Shari'ah compliance and certification of its products and processes.

Bank AlJazira reported Q4 net profit of SAR 199 million, up 32.67 per cent compared to one year ago and up 323.4 per cent on the previous quarter. However, the bank’s full year net profit was down 12.14 per cent at SAR 572 million. Total assets rose 10.97 per cent to SAR 66,554 million but investments were down 10.02 per cent at SAR 11,335 million. Loans and advances were up 17.86 per cent at SAR 41,245 million and customer deposits rose 13.49 per cent at SAR 54,569 million. Moreover, Bank Aljazira’s Extraordinary General Assembly approved the increase of the bank's capital from SAR 3,000 million to SAR 4,000 million, an increase of 33.33%.

Universiti Islam Malaysia (UIM) and CIMB Islamic have put in place agreements for their cooperation in promoting the development of higher education through a special endowment grant to establish the Chair for Waqf and Islamic Finance Management Studies as well as the establishment of CIMB Islamic Primary Resources for Islamic Finance Special Library. UIM President, Tan Sri Prof. Dr. Mohd. Yusof Noor and Chief Executive Officer of CIMB Islamic, Badlisyah Abdul Ghani signed two documents of Memorandum of Understanding (MoU). Both initiatives aim to enhance knowledge and capacity in the field of Islamic Finance and Waqf management.

Islamic investment bank GFH has reported that Bahrain’s High Civil Court has dismissed the Labor Case (amounting to $13.8 million) filed by Esam Janahi against GFH. The case had been filed by Janahi against GFH in June 2014, following several claims raised by the bank against him. All other cases filed by GFH against Janahi are still in progress. GFH also reported that the Bahrain Chamber for Dispute Resolution has awarded judgement in favour of GFH in a legal case amounting to $11.47 million (BHD 4.3 million) plus profits. The case was filed by GFH against Abu Dhabi Investment House and Qatar Entertainment City Company (QEC) pertaining to GFH’s investment in QEC.