IslamicFinance.de

After the Arab Spring, an international but Arab-led investment plan is urgently needed to deal directly with the job shortage and promote economic stability across the region. The Arab Stabilization Plan is a private sector led policy response that envisages a multilateral economic plan. It focuses on creating jobs through fast tracked, project-based investment, achieving significant returns for investors and countries alike. However, the prospect of the private sector acting alone to restore economic growth is dim. In order to ensure a safer transition and prevent further instability and the potential for extremism, there is an urgent need for investment intervention over the medium term. Through a common regional investment platform, participating countries would be able to benefit through enhanced regional economic development, stability and security.

QInvest has revealed plans to launch at least 30 Islamic funds over the next three years on a managed account platform which it introduced this week. QInvest hopes to attract an investor base beyond the Gulf through its Cayman-domiciled funds. Four Islamic funds already exist on QInvest's platform which focus on international equities. All of the funds are actively managed and the focus is on delivering strong returns over the mid- to long term, without focusing on a specific benchmark, according to Ataf Ahmed, head of investment solutions at QInvest Wealth Management.

Oman's market regulator has given its initial approval for two local firms to issue sukuk. The Islamic bonds will hit the market after clearing the formalities for final approval, said the chief executive of the Capital Market Authority, Abdullah bin Salim al Salmi, without revealing the names of the companies.

Dana Gas said it has collected a total of Dhs271m ($73.7m) in receivables so far this year. Payment delays were behind Dana Gas's default on a $1bn convertible sukuk last year on Oct. 31, the sukuk's maturity date. Dana Gas added it was on track to complete the Sukuk refinancing process in the second quarter of 2013. The sukuk-holder meeting and final shareholder meeting to approve the refinancing transaction will be held on April 23 2013.

Gulf bond issuers are tapping new bond structures and investors as the energy-rich region embarks on big infrastructure projects, bolsters ties with Asia, and capitalizes on investor appetite for its highly rated paper. With global interest rates low, bond buyers around the world are hunting for higher yields and are buying Gulf bonds. They are attracted by the region’s mostly high-rated sovereign credits and yields that are often higher than other similar-rated issues in other jurisdictions. They are being paid a premium for perceived geopolitical risk in the Gulf. Total Gulf bond issuance in 2012 rose to $42 billion from $25 billion a year earlier, including sukuk. Sukuk sales in 2012 nearly quadrupled to $21.3 billion.

Some analysts see the ambition of overtaking London as the world capital of the sukuk business, as a challenge for Dubai's initiative to become the capital of the global Islamic economy. Mohieddine Kronfol, the chief investment officer for global sukuk and fixed income business for Franklin Templeton, thinks Dubai can establish itself in a leadership position in the long-term. Kronfol believes Dubai and the region need to be more mature in their overall approach to finance if they are to lead the Islamic economy. He cites the lack of a pension fund industry, the relative immaturity of the insurance and asset management businesses as examples of lack of financial depth.

Linklaters has hired KPMG global Islamic finance head Neil Miller as its new global Islamic finance head, based in Dubai. Miller joins the magic circle firm from accountancy firm KPMG. He joined KPMG two years ago from Norton Rose, having developed a leading Islamic finance practice at the firm over around 20 years. Norton Rose moved Miller out to Dubai from London in 2009 in a bid to strengthen its Middle East practice. He previously headed Norton Rose’s Bahrain office from 1997 to 2000.

Barwa Bank expects its sukuk trading platform to become full-fledged by the year-end. Moreover, it sees the market as very competitive and lucrative with a great potential, according to chief investment officer Bashar Jallad. He said Barwa Bank was active in both the primary and secondary sukuk markets and started to act as a custodian for some of the clients. Barwa Bank’s sukuk trading platform is already functional but has not reached the optimum level, Jallad added. A focus area for the bank is relationship management.

The sukuk market had its eyes opened to an expansive new landscape this week, as Saudi Electricity Company defied the doubters to bring the first ever benchmark dollar 30 year tranche, writes Dan Alderson.

After years of giving away land to citizens, the Saudi Arabian government is left with almost no space of its own to develop in urban areas. That will delay building as the government chooses between buying back city plots whose price has been inflated by speculation or paying a premium to build in the desert. Saudi authorities plan to address the lack of available urban land as part of a national housing strategy that includes measures to combat land speculation and incentives to build. To meet its affordable housing needs, Saudi Arabia must either build in the desert or force urban landowners to develop their empty lots.

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.

Abu Dhabi Islamic Bank (ADIB) is providing Dhs600m financing facility to Manazel Real Estate to fund the Abu Dhabi-based company's financial obligations and capital expenditure. The financing agreement was signed by Mr. Mohamed M. Al Qubaisi, Chairman of Manazel Real Estate PJSC and Mr. Arif Usmani, Global Head of Wholesale Banking in ADIB. Manazel Real Estate PJSC, a real estate developer in Abu Dhabi, recognizes and appreciates ADIB's support to real estate developers in Abu Dhabi along with other sectors and local businesses, which contributes to the growth and development of Abu Dhabi.

The takeover of EFG-Hermes Holding SAE (HRHO), Egypt’s biggest investment bank, by Qatar’s QInvest LLC is mired in delays almost a year after the transaction was agreed. The deal is set to expire on May 4 unless it receives a so- called no objection from Egypt’s regulator on the transfer of its assets to Qatar. The terms of the deal include a four Egyptian pound per share dividend once it is complete. However, EFG-Hermes’s co-chief executives are defendents on charges of illicit gains. Therefore, it is expected that the deal will not go through before the lawsuit is finalized.

Achieving sustainability is the core of corporate social responsibility (CSR) worldwide, according to Tamkeen Company CEO Asya Al-Ashaikh. The focus is on interactions between the government and private sectors to boost CSR locally and create a Saudi CSR model, she added. Al-Ashaikh explained that CSR in the Kingdom needs to be led ideally by government entities. Moreover, CSR is not about donations and philanthropy but about corporates addressing socioeconomic and environmental issues based on their core competency, according to the Tamkeen CEO.

Warba Bank announced that it has made significant progress over the past year in building its portfolio of investments in the region and the world. During 2012, Warba Bank completed a series of successful investments in various investment sectors, e.g. the purchase of a property in New York which they developed into a multi - family residential complex. Through its investments, Warba Bank seeks to achieve high returns on investments and guarantee the rights of the Kuwaiti people who are the bank's shareholder.

Capital Intelligence has affirmed Qatar International Islamic Bank's (QIIB) Financial Strength Rating (FSR) at 'A-', on 'Stable' Outlook - reflecting the Bank's good capital adequacy, very strong liquidity and good loan asset quality. Ratings remain constrained by single name concentration risks in both financing and investment portfolios and by high exposure to real estate. Moreover, the Bank's relatively small balance sheet and market share remain rating constraining factors. The Bank's Long and Short-Term Foreign Currency (FC) Ratings are also affirmed at 'A-' and 'A2', respectively, on 'Stable' Outlook.

Qatar's QInvest announced the launch of the QInvest Managed Account Platform (QMAP). QMAP is the world's first open architecture Sharia'a compliant managed account platform. It provides investors with the opportunity to select from a range of funds that are managed by professional teams. At QInvest 's Annual General Assembly, H.E. Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani, QInvest 's Chairman, informed shareholders about the launch of the account platform that allows shareholders and investors to invest in asset classes such as mutual funds and hedge funds, managed by globally recognized investment managers.

The Sharia Supervisory Board of Meethaq conducted its first meeting of 2013 under the chairmanship of Shaikh Dr Ali Qaradaghi. The board inducted two new members — Abdulqader Thomas and Dr Saeed al Muharrami. The two experts in the field of Islamic banking will serve as non-Shari’a members and assist the Shari’a voting members, providing insights on various Islamic banking issues. The board reviewed Meethaq activities during 2012 and discussed the strategy for the coming period.

Sedco Capital, the Saudi Arabia-based asset manager, has launched an investment platform of Sharia-compliant funds aimed at high net worth investors and institutional investors. The Sedco Capital Global Funds platform, a Luxembourg Sicav, currently has a choice of seven investment funds with total assets under management of more than $1bn. The plan is for the platform to include over 15 funds totalling more than $1.6bn by the end of 2013.

The third edition of Saudi Corporate Social Responsibility Forum (CSRF) will be held in Jeddah from April 9-10.
The event is being organized by the Jeddah Chamber of Commerce & Industry (JCCI) at the Park Hyatt Hotel.
The winner of the CSRF Award recognizing best practices and initiatives in social responsibility will be announced at the forum, which will have the participation of a number of senior government officials, experts and businessmen from Saudi Arabia and elsewhere in the Arab world. The fórum is expected to review a number of key issues, especially the performance of Saudi companies in social responsibility programs.