IslamicFinance.de

Boubyan Bank’s CEO Adel Abdul Wahab Al-Majed said the bank succeeded in covering its capital enhancement sukuk which was oversubscribed by more than 5 times the targeted amount, reaching US$ 1.3 bn. This was achieved during a marketing period of two weeks from the date of obtaining the regulatory approvals from the Capital Markets Authority and the Central Bank of Kuwait. Boubyan Bank issued US$ 250 million sukuk, priced at 100%, which will bear profit at a rate of 6.75%.

Islamic finance is well suited to bridge financing gaps in long-term infrastructure development projects, especially in less developed markets. Deputy finance minister Datuk Johari Abdul Ghani said Islamic financing had huge potential and could meet long-term funding needs since it suited its asset-based and risk-sharing nature. The global Islamic capital market has expanded in size and depth across areas, with a combined market value of over US$21.5tril spread across 70 jurisdictions.

Hong Leong Islamic Bank's CEO Raja Teh Maimunah says the barrier of digitization is the fear of IT security and nervousness of regulators. But fintechs are here and have a high growth potential. The face to face service is an oldschool approach, what matters today is what banks can provide from a technology perspective.

Mohammad Daud Bakar says gold will be a game changer as a commercial asset, investment asset and hedging asset as well. There is now an attempt to put Sharia standard on gold, this will remove the worries of the scholars and regulators. Mohammad Daud Bakar believes the asset classes have to be expanded and Islamic banking shouldn't rely so much on commodities.

Bank Negara is reviewing the changes needed for the adoption of financial technology, or fintech.
As Bank Governor Datuk Muhammad Ibrahim said at the Global Islamic Finance Forum the bank wants to ensure that the regulatory framework remains appropriate to manage the risks, while encouraging productive innovation. Fintech has immense potential in Islamic finance. An estimated 10 to 40 % of overall banking revenues could be at risk by 2025 due to fintech innovations, according to a McKinsey research and CB Insights.

Bahrain-based Al Baraka Banking Group will establish a banking unit in Morocco after receiving approval from local authorities. The bank said entry to the Morocco market would significantly help diversify assets and income sources for the group. In contrast with its peers in the Gulf, Al Baraka has built the bulk of its business outside of the region, including units in Pakistan, Turkey, Egypt, Tunisia and South Africa.

Mehmet Ali Akben, president of the Banking Supervisory and Regulatory Authority (BRSA), said that Bank Asya will either be sold by the end of the month or its license will be canceled. The bank started reporting huge losses throughout 2015, while its shares were suspended from trading in Borsa Istanbul. Later it was taken over by the Savings Deposit Insurance Fund. The BRSA's audit report on Bank Asya said the bank's shareholders signed blank transfer contracts and a large number of dubious transactions were carried out.

The #Bahrain based Al Baraka Banking Group (ABG) announced that it achieved a substantial increase in total operating income of 16%, and net profits before tax and provisions by 13% during the first quarter of 2016. President & CEO Adnan Ahmed Yousif said the group opened 20 new branches in the first quarter of 2016 to bring total branches to 607 branches with total staff of 11,458. Additionaly, ABG obtainied official approval to establish a banking unit in Morocco, which means a higher diversification in assets and income sources for the Group.

According to Standard & Poor’s the profitability of Islamic banks in the Arabian Gulf is likely to deteriorate this year due to the fallout from the price of oil. The 70 per cent drop in oil over the past two years has put pressure on growth prospects and widened deficits across the region. Yet S&P predicts that Sharia-compliant lenders will weather the storm without too much damage because they have capital buffers that include quality assets. Islamic banking assets are continuing to grow at a rate of 16 per cent per year and by 2020, the global Islamic banking industry profit pool is expected to reach $30.3bn.

The Arab Petroleum Investments Corporation announced the completion of an innovative Sharia-compliant financing facility for Algeria’s Oil Recovery Services. The financing was arranged in conjunction with Paris-based oil and gas private equity firm 4D Global Energy Advisors. The initial $10 million financing will act as a template for the financing of several contracts of the company.

Leader of Russia’s Chechen Republic, Ramzan Kadyrov, is courting investment from Saudi Arabia. Kadyrov received a Saudi delegation in St Petersburg over the weekend, during which he discussed increasing the partnership between Chechenya and Riyadh. In January Kadyrov announced he is looking to open an Islamic bank, in order to attract investors from the United Arab Emirates and the Gulf.

The Arab Petroleum Investments Corporation (APICORP) announced the completion of a Shari’ah-compliant financing facility for Oil Recovery Services SAL (ORSsal) with operation in Algeria. The annual MENA Energy Investment Outlook Report issued by APICORP stated total planned energy investments in the MENA region will reach $900 billion over the next five years. According to the report, Algeria will invest $8 billion on gas as it focuses on developing its midstream sector as part of the country’s plan to expand total pipeline-network capacity by 30 per cent.

On the 10th anniversary of its presence in the Middle East, Lombard Odier demonstrates its long term commitment to the region by expanding its activities and services in the UAE. The team is also celebrating by moving its office location to the Conrad Business Tower. Patrick Odier, Senior Managing Partner of the Lombard Odier Group, said the bank maintains focus on wealth and investment management for private and institutional clients across the region.

Saudi Arabian Monetary Agency (SAMA) is expected to obtain a full membership at the Financial Action Task Force (FATF) in June 2018. At the 8th Compliance & Anti Money Laundering Seminar in Saudi Arabia SAMA Vice Governor Abdulaziz Al-Furaih said several new assessments have emerged including the set of recommendations by FATF and the MENA Financial Action Task Force (MENA FATF). Thomson Reuters Managing Director Nadim Najjar noted that compliance costs are set to increase in 2016.

Bahrain Islamic Bank (BisB) has announced the appointment of Nada Ishaq Abdul Karim as Executive Secretary to its Board of Directors. The appointment of the first Bahraini woman in this position comes within the Bank's strategic plans in line with the "Ishraq" Initiative- Back to Basics 2016. CEO Hassan Amin Jarrar said this shows the bank's continuous support for qualified Bahraini women and promotion of Bahraini personnel.

The World Bank Group, the Islamic Financial Services Board and the Republic of Turkey are jointly organising a conference on "Realising the Value Proposition of Takaful Industry for a Stable and Inclusive Financial System" on May 30-31, 2016 in Istanbul, Turkey. The conference aims to provide a platform for global practitioners and stakeholders in Takaful industry. The current state of the industry will be discussed as well as the evolving nature of the related legal and regulatory requirements in various regions.

According to a report by Ernst & Young (2015), there were more than 300 Islamic financial institutions worldwide in more than 70 countries with Islamic banking assets estimated to reach US$1.6 trillion. The strong position of the Islamic financial institutions is largely attributed to the inherent stability of the Islamic financial system. Despite the achievements, Islamic banks are criticised due to favouring debt-based contracts rather than the equity-based contracts. This results in a lack of financial innovations aiming at financial inclusion, particularly to the poor in rural areas in the form of Islamic micro-financing.

The German car manufacturer Audi has partnered with BankIslami Pakistan to introduce its brand in the Pakistani market. A Memorandum of Understanding (MoU) has been signed with Premier Systems, Audi’s general importer in Pakistan. BankIslami will provide tailor-made financing packages to Audi customers across the country through its flagship product of Islami Auto Ijarah. The MoU was signed by Muhammad Yasin Khan, CFO of Premier Systems and Yasser Abbas, Section Head Auto Ijarah, BankIslami.

Hackers have leaked files online containing data on thousands of customers of Sharjah-based Investbank UAE. The files were stolen last December when an individual tried to blackmail the bank for $3 million. When the bank refused to pay, the hacker threatened to dump the stolen files online, yet they never appeared. Security expert Mohammad Amin Hasbini warned that the hackers are going to release data from a second attack. According to Softpedia, the hacker group is Bozkurtlar, the same group that claimed responsibility for the Qatar National Bank data breach two weeks ago.

On 27 April 2016 Ziraat Participation Bank closed its first Syndicated Murabaha Financing Facility. The debut transaction received a strong response from the market. Due to the significant oversubscription, Ziraat Participation Bank increased the facility size to US$155 mn. CEO Osman Arslan said the proceeds from the facility will be used to support the funding requirements of SMEs and the financing of trade related businesses.