IslamicFinance.de

Al Meezan Investments CEO Mohammad Shoaib announced the launch of the Meezan Asset Allocation Fund (MAAF), an open-end Shariah compliant asset allocation scheme. MAAF has an initial offering from April 18- 20, 2016 with no load and would be open for subscripion subsequently. MAAF aims to earn a potentially high return through asset allocation between Shariah compliant equity, fixed income and money market instruments. MAAF has an initial offering from April 18- 20, 2016 with no load and would be open for subscripion subsequently.

Islamic banking is growing fast in predominantly Muslim Pakistan, thanks to the growing popularity of its Sharia compliant structure and a helping hand from the government of Prime Minister Nawaz Sharif. According to the State Bank of Pakistan most of Pakistan's conventional banks have now opened Sharia-compliant branches and many are working on full conversion to Islamic banking, which is growing at an annual rate double that of the country's Western-style banking sector. Pakistan's 250 million people are served by 22 local and foreign banks, five of which are Islamic. With a few exceptions almost all local and foreign conventional banks also offer Islamic financing services.

Iran’s central bank governor Valiollah Seif demanded the Obama administration take more steps to facilitate his country’s banking transactions world-wide and warned the landmark nuclear agreement reached last year could be at risk if the U.S. doesn’t act. The White House in response to Seif’s comments replied that the U.S. is abiding by the nuclear agreement. Iranian banks have been unable to process international money transfers and finance trade freely in the months since the deal went into effect in January. Iran also has faced obstacles in repatriating tens of billions of dollars of its oil revenues.

Malaysia may price its 10- and 30-year global Islamic bonds at 150 and 165 basis points over U.S. Treasuries. The data compiled by Bloomberg show that Malaysia’s existing sukuk maturing in 2025 yield 3.05 percent, while securities due in 2045 are paying 3.96 percent. According to Abu Dhabi’s sovereign wealth fund International Petroleum Investment 1MDB and Malaysia’s finance ministry are in credit-default, but the state firm’s President Arul Kanda said the company is in dispute with IPIC and he sees an amicable resolution.

Islamic financial institutions in Oman are expected to achieve a healthy growth in the banking sector in the near future, said Dr Jamil El Jaroudi, chief executive officer of Bank Nizwa. He also said that Bank Nizwa will open new branches in the Sultanate by the end of the year. The bank was able to reach breakeven in December after three years of operations. In order to reach more potential clients, a mobile branch will travel all-around the Sultanate offering a host of products, services and also make the people aware on the benefits of Islamic banking. The truck’s journey will start from the governorate of Muscat, moving on to Dakhiliyah, Al Sharqiya, Dhofar, Al Batinah and Al Buraimi.

Following the approval of the Lotus Halal Fixed Income Fund offer by the Securities and Exchange Commission (SEC), Lotus Capital Limited held the signing ceremony in respect of the Offer on April 14, 2016. The offer has an initial subscription size of N1,000,000,000.00 consisting of 1,000,000 units at N1,000 per unit. The Fund will be launched upon receipt of final approval from SEC. The primary objective of the fund is to generate returns from investments in Shari’ah compliant fixed income securities and contracts, while ensuring capital preservation. A minimum investment of N5,000 is required.

L'agence 570 easi, pionnière en finance islamique en France vient de proposer une nouvelle offre de crédit halal permettant au client d’effectuer un achat immobilier sans avoir à contracter un emprunt portant un intérêt, selon le principe murabaha. L'offre actuelle est désormais disponible sur 20 ans, un crédit inédit en France. Le Conseil de la fatwa de l’Union des Organisation Islamique de France (UOIF) avait émis un avis juridique dans lequel il exemptait sous conditions, au nom du concept de nécessité, l’emprunteur musulman de l’interdiction de recourir au prêt bancaire à intérêt lorsque l’investissement vise l’achat d’une résidence principale.

The U.S. dollar-denominated Shariah compliant perpetual sukuk issuance is believed to be the first sukuk to be included within the Additional Tier 1 capital resources of a bank in the United States. Linklaters LLP has advised University Bank on its sukuk issuance in the United States. This is believed to be the first sukuk to be governed by the laws of the United States, in this case, the laws of the State of New York. The sukuk is limited to an annual profit rate of 5.75% and has no maturity date. University Bank, a subsidiary of University Bancorp Inc., is a community bank which specialises in Islamic banking and mortgage subservicing for the credit union industry.

1MDB issued a statement Monday saying Abu Dhabi state-run fund International Petroleum Investment Corp. has failed to pay interest on $1.7 billion on the Malaysian fund's 2022 bonds. The Malaysian government was cautioned about risks associated with the debt-ridden fund in 2014. The state investment fund set up by Prime Minister Najib Razak, has been burdened with debt of over $12 million over the years and has been accused of mismanagement while facing corruption allegations. Apart from Malaysia, the 1MDB investigation is also underway in the United States, Luxembourg, Singapore, Switzerland, Hong Kong and Abu Dhabi.

Chairman of CIMB Group Holdings, Datuk Seri Nazir Razak, is taking leave of absence to facilitate the review of the bank’s anti-money laundering processes. Earlier this month, Nazir was identified as one of the persons whom his brother, Datuk Seri Najib Tun Razak, had assigned the task of disbursing US$7mil (RM27.2mil) in the run-up to the 2013 general election. The review is expected to be complete in a few weeks, by which time the board of directors will decide whether Nazir will maintain his positions in the group.

Global investment management firm Arcapita has acquired a logistics park in Dubai for a total transaction value of approximately $100 million.The investment comprises nine freehold plots of land in the Al Quoz Industrial area covering an area of approximately 630,000 square feet, located next to Al Khail Road. The site will consist of 10 completed warehousing facilities that will be under a long term master lease with a UAE conglomerate. Martin Tan, Arcapita’s chief investment officer, expects Dubai’s logistics market to experience growth, driven by its geographical location and legislation.

Dubai has the resources to become the capital of the world’s Islamic economy following an initiative by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister, and Ruler of Dubai, according to Mohammed Al Gergawi, chairman of the Dubai Islamic Economy Development Centre (DIEDC). Gergawi added that Islamic economy is expected to have a potential value of nearly seven trillion (Dh25 trillion) in 2020. In his opinion Dubai possesses the resources that make it the capital of the world’s Islamic economy, such as experience, the strategic location and the necessary infrastructure.

Dubai Islamic Bank (DIB) plans to be operating in Kenya before the end of 2016, despite the Kenyan authorities' moratorium on issuing new banking licences. Kenyan banks have come under closer scrutiny from the regulator because of increasing bad debts, prompting officials and analysts to conclude the sector is ripe for consolidation. Three medium-sized and small banks have been taken over by the regulator since August last year. DIB had been in talks with the regulator before the moratorium was placed on the licensing of new commercial banks last November, meaning it would not affect a decision on its licence.

Islamic International Rating Agency (IIRA) has assigned investment grade, national scale ratings of BBB-(lb)/A3(lb) (Triple B Minus / A Three) to AlBaraka Bank Lebanon S.A.L (ABBL). Outlook on the assigned ratings is 'Stable'. The fiduciary score has been assessed in the range of '71-75', reflecting adequate fiduciary standards wherein rights of various stakeholders are adequately protected. ABBL was incorporated in 1992 as the first Islamic bank operating in the Republic of Lebanon. ABBL has sought to diversify its financings outside Lebanon, thereby mitigating the effects of the slowdown in the Lebanese economy. Owing to the market dynamics and management caution, ABBL maintains a highly liquid asset profile.

Strong views were recently expressed by the Muslim Consumers Association of Malaysia that the Islamic banking and finance industry follows the letter but not the spirit of Islam. Islamic finance (IF) is developing at a remarkable pace. However, Islamic banking is now being accused of operating in a similar fashion as its conventional counterpart, and being skewed to more profit and business-driven interests than serving the real needs of a just society. The heart of Islamic finance involves a risk-sharing spirit, which does not prevail in the practices of contemporary Islamic banks. The importance of independent Syariah supervision will significantly influence the development of the Islamic capital market.

Dr. Mark Mobius, Executive Chairman, Templeton Asset Management, is set to give a Special Keynote address at the CIBAFI Global Forum to be held in Bahrain. Mr Mobius will cover the following topics: Thoughts on how finance can contribute to sustainable growth of the economy; Insights on how financial markets in the global and emerging markets are expected to perform; Expert views on MENA market and the impact of oil prices on economies; Assessment of and what structural reforms are required to spur good growth; The potential growth markets in mid-to- long terms; Lessons for Islamic finance.

The Bank of England has fined Qatar Islamic Bank’s UK, a subsidiary of Qatar Islamic Bank, for failings in reporting its financial resources to the regulator in 2011 and 2012. The Bank’s Prudential Regulatory Authority (PRA) imposed a fine of 1.385 million pounds ($1.95 million) on QIB for failing to undertake a regular assessment of its capital. Guy Priestley, QIB UK’s interim chief executive, said the problems identified by the PRA have been remedied.

The recent instructions issued by the Qatar Central Bank (QCB) for insurers operating in Qatar are credit positive. These instructions are related to licensing, regulations and controls, risk management, accounting and actuaries reports. The instructions include prudential requirements and took effect this month. Insurers that will benefit from the new law include the largest Qatari insurance groups: Damaan Islamic Insurance Company, Qatar Insurance Company, Qatar General Insurance & Reinsurance Company, Doha Insurance Company, Al Khaleej Takaful Group and Qatar Islamic Insurance Company.

The Islamic Development Bank (BID) has given Benin 216.4 million U.S. dollars to support development projects in the higher education sector and an integrated micro-finance program. The first part of the BID aid of about 166.4 million dollars will be spent on funding development projects in the higher education sector. The other 50 million dollars will support the integrated micro-finance program. The program aims to contribute to the improvement of living conditions for rural communities in Benin. It will help to increase access to funding for small scale traders and reinforce capacities of micro-finance institutions, among others. The latest aid brings BID’s total funding to Benin to around 824 million dollars.

Dubai Islamic Bank (DIB) has listed its latest sukuk worth $500 million on Nasdaq Dubai, bringing the bank’s total sukuk listings on the region’s international exchange to $3.25 billion. Following a total of seven sukuk listings this year by regional and international issuers, the total value of sukuk currently listed in Dubai has reached $42.61 billion, the largest amount of any listing centre in the world, underlining the rapid expansion of Dubai as a global capital of the Islamic Economy. Given the challenging market conditions, it was critical to have a strong credit come in and successfully close a deal, said Dr Adnan Chilwan, group CEO, DIB.