IslamicFinance.de

The leading Indian banks have the capacity to launch a South Asian Shariah Fund to capitalize the region's untapped market for Islamic finance which requires multi-billion dollars of financing annually. Indian banks are in a position to lead the Shariah fund for the region, given their global network which includes facilitating Islamic banking and financing in one way or another, observed Ariff Sultan, regional director for Asia Pacific at the US-based global Shariah compliance product screening group, IdealRatings. Sultan said IdealRatings has been approached by a number of Islamic Banking-linked investors to screen opportunities for placing their funds in the Indian market. But there are regulatory restrictions.

Maybank Islamic Bhd is confident its Islamic banking business in Singapore will contribute further to revenue in the future. Group head, Islamic banking, and chief executive officer Datuk Muzaffar Hisham said this was in view of the ongoing support from the Monetary Authority of Singapore (MAS) in promoting Islamic banking. Muzaffar said in less than three years, Islamic banking in Singapore had contributed about 5% to its revenue. It is reported that Singapore's central bank will continue to strengthen Islamic finance owing to its cross-border growth. The report said that since MAS established its sukuk facility in 2009, there had been eight sukuk issuances totalling S$600 million (RM1.7 billion).

American Express said it had not witnessed a rise in credit card debt in the Gulf region, despite over a third of households reporting they had spent more than they planned last year and one in four in the United Arab Emirates (UAE) saying they had contributed less to their savings and pension. Despite the economic headwinds across the region, Amex's research titled 'Spending Habits in the GCC: A Research Report' shows little slowdown in the volume of spending, CEO Mazin Khoury said. Khoury told Zawya he had not seen any increase in levels of credit card debt and that he was not concerned about changes in repayment trends, despite rising consumer spending levels and a more challenging financial environment as a result of lower oil prices and slower economic growth.

The first quarter of 2016 saw concept papers on Qard and Hibah issued by Bank Negara Malaysia. The Islamic Financial Services Board (IFSB) has provided a further update on the financial soundness and growth of Islamic banking systems. The International Monetary Fund (IMF) has published a working paper on Monetary Policy in the Presence of Islamic Banking. Concept papers on Qard and Hibah In January, Bank Negara Malaysia (BNM) issued a concept paper on Qard. The concept paper is divided between the sharia and operational requirements in relation to the operationalisation of Qard contract.

Maple Leaf Cement Factory Limited (MLCFL) Monday paid Rs 8 billion Sukuk loan much earlier than scheduled. The company has been able to pay off much earlier than scheduled, its entire Sukuk loan of Rs 8 billion in the third quarter of the current financial year, said Muhammad Ashraf, MLCFL's company secretary, in a stock filing Monday. The payment, he said, was made against the agreed repayment schedule till December 2018. Improved profitability, better cash flow, cost curtailment initiatives and efficient financial discipline made it possible to repay the debt in advance.

India is the first country in the world to enshrine corporate giving into law. Following a change in company law in April 2014, businesses with annual revenues of more than 10bn rupees (£105m) must give away 2% of their net profit to charity. Areas they can invest this money in include education, poverty, gender equality and hunger. Two years on, overall charitable spend by companies has increased. Yet fears that companies would find ways of avoiding shelling out for good causes appear equally well-founded. A survey found that 52 of the country’s largest 100 companies failed to spend the required 2% last year.

Al Rajhi Bank Malaysia (ARBM) has received approval from Bank Negara Malaysia (BNM) for the appointment of Steve Chen Thien Yin as its new chief executive officer (CEO). As CEO, Chen is responsible for the overall operations of ARBM’s business to maximize company growth as well as to take on the responsibility in developing strategies to drive the Islamic banking and finance business of ARBM. Prior to joining ARBM, he was the chief operating officer (COO) for Corporate and Structured Finance at one of Malaysia’s largest local banks, Hong Leong Bank Berhad. Chen has held senior positions in various international foreign banks including J.P. Morgan, Royal Bank of Scotland, and Standard Chartered Bank.

The Saudi Capital Market Authority Board approved the Investment Accounts Instructions after publishing the Draft Instructions on the CMA's official website for 30 days, and reviewing the concerned and interested parties' comments and observations. The Investment Accounts Instructions comprise 17 articles regarding several aspects of investment accounts such as the mechanism on how to accept clients, availability of specific data to open an investment account and instructions of opening and operating the investment account. The Instructions also include the specifications to open investment accounts.

Dubai-based lender Emirates Islamic is laying off 200 staff to cut costs, according to a report. An un-named source confirmed that the bank was downsizing its workforce. However, Emirates Islamic declined to deny or confirm the report. Several banks in the United Arab Emirates have trimmed local operations as they look to reduce costs. Barclays is reducing its Dubai workforce by 150 people and closing its offices in Emaar Square. Earlier this year, the National Bank of Ras Al Khaimah also revealed that it will cut expatriate staff as it seeks to reduce its headcount by up to 250. The overall banking industry across the GCC is slowing because of low oil prices.

Gatehouse Bank plc has announced its entry into the residential property finance market. With a focus on greater London, Gatehouse will offer Shariah-compliant financing solutions for clients seeking to acquire or refinance residential properties. This new product was developed following strong client demand for residential property finance solutions. Gatehouse will offer clients bespoke property finance products, from simple single residential investment finance to more complex company structures including property portfolio and short lease finance. Abdulaziz AlDuweesh, Chief Investment Officer of Gatehouse sees significant opportunities to grow Gatehouse's presence in this market.

A group under the auspices of Adamawa State chapter of the National Council of Muslim Youth Organisations (NACOMYO) has resolved to pursue wealth creation and provide job opportunities for members of Islamic Youth organisations through Agriculture as a business. In a communique, the association further stated that the move was in line with the policy thrust of the current Buhari Administration in collaborating with NASR of the Central Bank of Nigeria, JAIZ Bank and Standard Micro-Finance Bank. The association produced a 10 point recommendation geared towards developing a framework which will see to the Socio-economic Development of the Muslim Umma in Adamawa State.

Singapore's central bank has asked financial institutions to provide details of any transactions linked to Malaysian state investor 1Malaysia Development Berhad (1MDB) as part of its probe into possible money-laundering in the city state. The statement came late Thursday after it was reported earlier this week that the Monetary Authority of Singapore (MAS) has reportedly asked close to 40 banks with a presence in Singapore to provide information linked to 1MDB. Australia and New Zealand Banking Group (ANZ) and National Australia Bank (NAB) are believed to be among those queried. ANZ and NAB both declined to comment.

The world's first Global Halal Data Pool offers massive trade opportunities for halal products and services providers, especially when it connects to the global data syncronisation network in August. Serunai Commerce Sdn Bhd Chief Executive Officer Amnah Shaari said in developing the platform it collaborated with the GS1 Council in Brussels, producer of 95% of global barcodes, which also runs the global data syncronisation network. Serunai Commerce, currently working with over 200 halal certification bodies, would act as the live verification centre for halal products and services using the Global Trade Item Number, as specified by the GS1 attributes.

Shareholders with Bahrain-based Ithmaar Bank recently approved of the new group structure plans that will help the core retail banking business grow along with the bank’s strategic focus. The new plans were part of a proposal from the bank's board of directors and are still subject to approvals and further changes. The new structure will better allow the bank to compete with the global market. Ithmaar Bank Chairman Prince Amr Al Faisal said this new group structure will help lower the risk profile of the new banking entity and enhance shareholder value.

Imams and other religious leaders are an under-used means of pushing action to combat climate change, experts and religious scholars say. Religious leaders have the moral standing to call on people and businesses to consider the environmental impact of their activities and take a bigger role in reducing their own carbon footprints and finding ways to cope with the growing impacts of climate change, experts said at a multi-faith meeting in Islamabad. But first, they need training to both understand and communicate the issues accurately in a country hard-hit by climate-related drought, flooding, crop losses and other problems.

RAM Ratings expects investment accounts (IAs) to become an important source of new funding for Islamic banks this year as they emerge as potential game-changers in the way Islamic banks source their funds from the public. It noted that unrestricted IAs (UIAs), which are marketed to customers, are estimated to have increased more than RM14 billion in Q4’ 2015, surpassing the RM8.3 billion growth in the overall banking system’s deposits. The recent rapid growth of UIAs follows the requirement of the Islamic Financial Services Act 2013 that Islamic banks distinguish IAs from principal guaranteed deposits by end-June 2015. RAM’s assessment revealed that UIAs accounted for two-fifths of the RM47 billion of IAs in the Malaysian Islamic banking system as at end-2015.

GFH Financial Group (GFH) has signed an agreement with Palace Revive Developments Limited worth £100 million to be a partner in the No. 1 Palace Street development in central London, a project being developed by Northacre. Under the agreement, GFH will become an anchor partner for more than 30% of the units in the development, which is located opposite Buckingham Palace. Located in Buckingham Gate, No. 1 Palace Street includes 271,051 square feet of space adjacent to Buckingham Palace in the area between St James's, Mayfair and Belgravia, the development of 72 luxury apartments, a restaurant and health centre. The development is expected to be completed in 2018.

The latest region seen as having big potential for Islamic finance is the Commonwealth of Independent States (CIS), comprising eight countries plus Russia that until 1991 were part of the Soviet Union. Being home for a large Muslim population, especially in Central Asian CIS member states, the area is emerging as a new frontier region for Islamic finance as banking penetration is relatively low and demand for financing is strongly growing. In all these countries, growth is strongly dependent on production and export of commodities, not just oil and gas, but also coal, iron and precious metals, among others. This brings with it the need for huge infrastructure investments for the production cycles of those commodities, and also for processing and transportation.

La dernière déclaration du gouverneur de la Banque centrale sur la création imminente des banques participatives rassure sur la marche des préparatifs, tout en marquant un report inattendu de l’échéance, que les opérateurs ainsi que le marché attendaient pour le 16 mars 2016, soit quatre mois après la date de dépôt des demandes d’agrément, conformément à l’article 34 de la loi 103-12. Bien sûr, le même article dispose que ledit délai ne court qu’après la réception de tous les documents et des réponses aux questions complémentaires de l’autorité monétaire, et le gouverneur a pris soin de rappeler que les entretiens étaient en cours.

The Iranian Ministry of Finance issued IRR 5 trillion of four-year lease-based Sukuk on 16 March. The bonds were sold through Iran Fara Bourse, Tehran’s over-the-counter market. The issue marks the first use by the Government of Iran of such bonds. Previously, in September 2015, another first had been notched up with the issuance of some $295 million in Islamic Treasury Bills on Iran Fara Bourse. Meanwhile, in banking, the State Bank of Pakistan called a special meeting of all banks/ financial institutions on 14 March 2016 to discuss progress made by the Pakistani banking sector for facilitating trade transactions with Iran. Later in March it was reported that Bank Melli Iran had expressed interest in opening a branch in Pakistan while Pakistan’s Habib Bank may open a branch in Iran.