IslamicFinance.de

The government of Oman sold a $500 million six-year sukuk in a private placement. The profit rate is set at 3.5%, the amount will have to be repaid in three equal instalments after four, five and six years. Oman's first Ijara format five-year sukuk worth RO 200 million ($520 million) was issued in October last year and received strong orders. The government which is facing a widening fiscal deficit has been adopting several measures tide over the falling revenue from lower oil prices. Recently, the government raised a $2.5 billion two-part bond and a $1 billion loan from banks. This was the first international bond issue in two decades by the Sultanate.

S&P Global Ratings expects Sukuk issuance will remain muted over the next 6 to 18 months, with total issuance of US$50 bil to US$55 bil in 2016. The ratings agency explained that plummeting oil prices have not boosted sukuk issuance despite some commentators' expectations. Instead, total issuance actually dropped in 2015 compared with the previous year. S&P Global Ratings Global head of Islamic finance Mohamed Damak said while governments affected by the price drop are looking to spending cuts, their financing needs remain significant. At the same time, he believes the European Central Bank's quantitative easing programme and the entrance of a few new issuers to the Sukuk market will continue to support issuance volumes.

Kader Merbouh, expert en finance islamique penser que la finance islamique est la solution pour capter l’épargne dormante et en dehors du circuit bancaire en Algérie. L’Algérie a été un point d’encouragement à la finance islamique. Tant par les banques conventionnelles qui proposeront dans les prochaines années des produits de la finance islamique pour capter leur clientèle et tant par les banques islamiques comme Salam ou Baraka. Il y a aussi l’arrivée de nouveaux acteurs qui voudront être présents sur le marché algérien. Cela va créer une triple dynamique. L’Algérie est un marché formidable. La loi de modernisation bancaire en Algérie va introduire quelques règlements pour faciliter la finance islamique.

Maxis Broadband, a unit under telecommunications group Maxis, is planning a sukuk issuance to raise as much as MYR10 bn for acquisitions and capital expenditure. CIMB Investment Bank is the sole principal adviser and sole lead arranger for the programme, while CIMB Islamic Bank is the shariah adviser for the programme. The Islamic Development Bank (IDB) has issued a MYR350 mn ($86.6 mn) sukuk for project financing and other development activities. IDB president Ahmad Mohamed Ali said the successful issuance of sukuk in Malaysian Ringgit is a testimony to the increasing interest for sukuk.

After the listing of RHB Bank, attention is now on whether BIMB will do the same with Bank Islam Malaysia. Bank Islam is the oldest and largest standalone Islamic bank in Malaysia with an asset size of RM55.46 bn as at March 31. It also owns a 59.9% stake in insurer Syarikat Takaful Malaysia, while its other core business is BIMB Securities. BIMB, in turn is 53.6% controlled by pilgrim fund Lembaga Tabung Haji (LTH). It is believed that the bank still holds the dream to move into the big league and grow market share. However, it will not be able to achieve mega Islamic bank dream unless it mergers.

Somaliland's President has signed the Central Banking Act into law. According to Central Bank Governor Abdi Dirir the Commercial Banking Act will be passed in the next three to four months.
Back in 2012 the financial sector agreed to have a Dual Banking system where both Conventional and Islamic banking systems operate in the country. However, the Commercial Banking Act is more than four years overdue. Economically, Somaliland's longterm competitiveness can only be ensured by introducing the Dual Banking System in the country.

Equitable Financial Solutions (EFSOL), Australia's largest, international Islamic finance company has announced the establishment of its Dubai office at Emirates Towers. EFSOL is actively pursuing its Middle-East expansion strategy, following the successful establishment of its ASEAN office based in Singapore. Usman Siddiqui, Managing Director of EFSOL said the new Dubai office will give investors access to the company's superior products and returns. He is confident that the EFSOL team will boost their financial products' offerings in key areas of Islamic finance.

Bank Muamalat Indonesia was appointed as the National Zakat Collector Agency through its affiliation called Baitulmaal Muamalat (BMM). Bank Muamalat has distributed assistance fund to 4,500 orphans across Indonesia, which amounts to Rp1.35 billion (US$100,000) worth of zakat collected by BMM. The fund is distributed through a number of programs, namely community empowerment programs, like Orphan Kafala and educational programs, like the Islamic Solidarity School (ISS). The fund is also distributed through the B-Smart program that provides scholarships for accomplished students, and the Fi Sabilillah program that provides scholarships for orphans finishing their undergraduate studies.

Morocco's central bank will start issuing approvals for Islamic banks this year so that they can begin business in early 2017. The North African country had long rejected Islamic banking due to concerns about Islamist movements. Now the central bank has set up a central sharia board with the country's body of Islamic scholars to oversee the new industry. Lhassane Benhalima, the central bank's head of banking supervision said it was absolutely wrong that some banks had been pushing to delay the process. The central bank received seven requests to open Islamic banks and three to open windows selling Islamic finance products. According to Benhalima the bank is planning an Islamic interbank market and is encouraging the government to issue regular sukuk to ensure liquidity.

Morocco's central bank will start issuing approvals for Islamic banks this year so that they can begin business in early 2017. The North African country had long rejected Islamic banking due to concerns about Islamist movements. Now the central bank has set up a central sharia board with the country's body of Islamic scholars to oversee the new industry. Lhassane Benhalima, the central bank's head of banking supervision said it was absolutely wrong that some banks had been pushing to delay the process. The central bank received seven requests to open Islamic banks and three to open windows selling Islamic finance products. According to Benhalima the bank is planning an Islamic interbank market and is encouraging the government to issue regular sukuk to ensure liquidity.

On a pure investment basis, London has a transparent property market. Property tenure is clear cut and underpinned by the legal system. There has long been a trend for overseas buyers to purchase homes or investment properties in central London. Over the past few years, Russian and Asian buyers have become more active, but the interest from the Middle East has never waned. While the Qatar Investment Authority (QIA) Wealth Fund has been diversifying its portfolio away from Europe, it still has at least $7 billion directly invested in equities traded on the London Stock Exchange, in which it also holds a 10.3% stake.

The small European nation of Luxembourg is expected to threaten and take over London’s role as European hub for Islamic finance in a post-Brexit world. The big hit the UK is suffering politically and economically by the June 23 "Leave" vote will result in years of uncertainty and the risk of thousands of job cuts or relocations to mainland Europe. Over the past years Islamic finance has gained a strong foothold in London which served as a gateway for Arab investors to Europe. Now that the UK voted to quit the European Union, an exodus of investors is expected as they fear tighter regulations and higher taxes looming.
As an alternative, Luxembourg has shown readiness for innovation and will continue to improve its competitiveness. Luxembourg was the first European country that joined the International Islamic Liquidity Management Corp (IILM). In September 2014, Luxembourg also issued the first sovereign sukuk in the eurozone and is soon expected to host its first fully-fledged Islamic bank on its territory.

There is evidence both in the Quran and Hadith that supports wealth succession planning and management. A starting point for a discussion on Islamic wealth management would be the Quranic verses in Surah al-Kahf (Surah no. 18). There are lessons that we may draw from these Quranic verses. These verses indicate that although a person cannot foresee future events, he/she should take measures and have plans to manage their unfavourable effects on life and family welfare. That parents may have a succession plan through which the wealth earned could be transferred to children in the safest possible way.

Malaysia is adapting to fintech revolution by adjusting its financial regulatory guidelines with an Islamic angle. According to Muhammad bin Ibrahim, governor of the Central Bank of Malaysia, the recent Islamic finance initiative could be the next game changer. The Investment Account Platform (IAP) is a platform that connects lenders, banks and enterprises seeking funds, one that could shift the role of Islamic lenders to investment intermediaries. Serving as a central marketplace to finance small and medium-sized enterprises (SMEs), the IAP was launched by six Malaysian Islamic banks: Affin Holdings, Bank Islam Malaysia, Bank Muamalat Malaysia, Maybank Islamic, Bank Kerjasama Rakyat Malaysia and Bank Simpanan Nasional.

Pakistan Industrial and Traders Associations Front (PIAF) has felicitated Wapda and National Bank of Pakistan (NBP) for the Rs 100 billion agreement of 16 banks under Shariah compliant facility for Neelum Jehlum Hydro Power (NJHP) project. There was a long delay and the cost of project escalated up to Rs 414 billion from initial estimates Rs 84 billion. PIAF chairman Irfan Iqbal Sheikh said that now a ray of hope appeared for the completion of the project. He said this is the biggest ever funds mobilisation for a public sector entity in which 16 local banks participated. The issuance of Sukuk worth Rs 100 billion for NJHP would go a long way in arranging funds for other hydropower projects.

In #Kenya the Gulf African Bank has ambitious expansion plans for the local market. The bank, which is so far only represented in five counties, plans to open ten new branches between 2016 and 2017. Follwoing Sharia rules, the bank does not finance casinos, breweries and anything that is hazardous to the human body. Gulf African Bank is stable and prepared to increase core capital which now stands at Sh3.8 billion. At the end of the year the bank's capital will be above Sh4 billion, while by 2017 above Sh5 billion.

The Islamic Financial Services Board (IFSB), The World Bank Group (WBG) and the Republic of Turkey have organised a joint conference focusing on the takaful sector. This conference, themed "Realising the Value Proposition of Takaful Industry for a Stable and Inclusive Financial System" was held in Istanbul on May 30-31, 2016. The Keynote Address was delivered by Ramazan Ulger, President of the Turkish Insurance Association and Ozgur Koc from the Association of Participation Insurance. Mr. Ulger highlighted that there are 60 insurance companies and one reinsurance company operating in Turkey. He suggested for the takaful industry to develop a wider range of products to address the needs of individuals. Ozgur Koc reiterated the country's vision to establish Istanbul as an Islamic financial centre.

Malaysia has been rocked for more than a year by a financial scandal involving Prime Minister Najib Razak, a state investment firm, and an alleged frenzy of embezzlement. Authorities in a half-dozen countries have launched investigations into suspicions that several billion dollars was looted from complicated financial transactions involving 1MDB and parked around the world. Over the past year, Najib has purged 1MDB critics from his cabinet, curbed domestic investigations, and moved to prevent further discussion of the scandal. Najib has dramatically strengthened his control of the country. A state-level election and two parliamentary by-elections were won handily by Najib's ruling coalition, further bolstering his position.

In #Malaysia Danajamin Nasional is guaranteeing a 17-year sukuk murabahah programme amounting to RM300 million for Chellam Plantations. The first tranche of the programme amounting to RM150 million with a tenure of up to 17 years, was issued and subscribed last Friday. Funds from the sukuk issuance will support Chellam Plantations’ new planting in Kalimantan and expansion in Indonesia. Proceeds from the sukuk will also be used to refinance its outstanding borrowings and finance its capital expenditures. Joint lead arrangers of the transaction are RHB Investment Bank and OCBC Al-Amin Bank.

Il y a 6 ans, la société 570easi réalisait en France la toute première opération de financement immobilier conforme à l’éthique musulmane. C’est le cas pour plus de 500 familles qui sont devenues propriétaires via un financement immobilier Murabaha. Le grand public a la possibilité à ce jour de solliciter une durée de financement allant jusqu’à 20 ans.