IslamicFinance.de

Bahrain-based Seera Investment Bank B.S.C. has announced the successful completion of a new transaction in the UK Dementia Care sector. The transaction comprises a Shari'a compliant equity investment in a dementia care focused housing development in London, United Kingdom. The development, the first of its kind, when completed will provide circa 115 housing units providing specialized care to dementia sufferers. The project will be developed over a 3 to 4 year period. The units are expected to be sold over the development period with distribution of substantially all the originally invested capital in the 4th year of investment together with a part of the profits. Upon completion of the development the project will then be held to benefit from the ongoing care revenues.

Islamic lender Bank Asya has not yet filed all the documents sought by Turkey's banking watchdog BDDK after the regulators took over the bank's management and seized a small stake in it earlier this year, BDDK head Mehmet Ali Akben said on Wednesday. The government has said the management of the bank, founded by followers of President Tayyip Erdogan's ally-turned-foe Islamic cleric Fethullah Gulen, was taken over because it failed to meet some legal criteria.

Turkish Deputy Prime Minister Ali Babacan said on Wednesday that the growth of Islamic banking would strengthen Turkey’s financial system, praising the rapid growth of Islamic banks. Speaking at the 14th General Assembly meeting of the Participation Banks Association of Turkey in Istanbul, Babacan said the latest global economic crisis showed that interest-free financial methods are much more reliable, much more stable, and much more robust. His remarks came after one of Turkey's largest state-controlled banks, Ziraat Bank, was authorized by the country's banking regulator to start operations in its Islamic banking division last week. He also stated that an insurance system should also be developed using interest-free practice

QIB-UK is providing opportunities for customers interested to invest in the London real estate market starting with providing access to properties, both residential and commercial ones. A team of real estate specialists will ensure that customers, being continuously supported by QIB Private Banking Relationship Managers stationed in Doha, are able to achieve optimal return on their investments. Recently, QIB added Knight Frank, a global property adviser company established in London back in 1896 to its partners. Customers can now visit QIB’s website to find specific property listings, along with information on locations and prices. They can then submit an online request form indicating properties of their interest to be contacted by the QIB-UK real estate team.

Al Rayan Bank PLC, formerly known as Islamic Bank of Britain, has officially opened its new private banking branch in Knightsbridge, London. The flagship branch adds to Al Rayan Bank’s existing network of five branches and three agencies throughout the country. It will provide high net worth individuals and Gulf Cooperation Council (GCC) clients with private banking services including real estate finance, day-to-day banking services and bespoke investment opportunities. In 2014 the bank’s operating income increased by 168 per cent, customer financing increased by 86 per cent and retail deposits increased by 59 per cent. The bank also transformed a £5.5 million loss in 2013 to an after tax profit of £1.2 million, the first time in its eleven year history that it has posted a profit.

Kuwait Finance House (KFH) is exploring the possible sale of assets including its Malaysia unit, as the Islamic lender looks for a leaner structure while seeking greener pastures through its Turkey franchise. KFH is restructuring activities ahead of a planned divestment by its largest shareholder, the Kuwait Investment Authority (KIA). The firm has hired Credit Suisse to advise on its options, including the potential sale of a Malaysia unit launched in 2005 that serves as a hub for southeast Asia. KFH did not give further details. A shift away from Malaysia, where KFH holds a valuable licence but lacks scale, would help it focus on Kuveyt Turk, the largest Islamic bank in Turkey with over 500 branches.

QIB (UK), the London arm of Qatar Islamic Bank, has hired an experienced banker as its head of treasury. Anthony Lee joins the bank in London having previously served as head of treasury and investments at Doha Bank in Qatar. At QIB (UK), Lee takes over leading the treasury effort from Haissam Saleh, who has been acting head since July last year.

Kuwait Finance House (KFH) is restructuring activities ahead of a planned divestment by its largest shareholder, the Kuwait Investment Authority (KIA). Last week, KFH said it had hired Credit Suisse to advise on its options, including the potential sale of a Malaysia unit launched in 2005 that serves as a hub for southeast Asia. KFH did not give further details. A shift away from Malaysia, where KFH holds a valuable licence but lacks scale, would help it focus on Kuveyt Turk, the largest Islamic bank in Turkey with over 500 branches. Kuveyt Turk, 62 per cent owned by KFH, is in expansion mode: It plans to launch Germany's first full-fledged Islamic bank in July as a gateway to Europe.

London-based Gatehouse Bank plc has announced the acquisition of Fountainbridge, a student accommodation property located in Edinburgh, United Kingdom, from Rockspring Property Investment Managers LLP UK Value fund for £20.0 million. The property is a modern, purpose-built student accommodation asset with a total of 331 bedrooms, centrally located to the University of Edinburgh, Herriot-Watt, Napier and Queen Margaret universities. The investment follows the firm's successful realisation of four investments comprising over 1,600 beds with a combined value in excess of £100 million, completed last year. The firm is currently considering other investments in the UK student accommodation sector.

Saudi British Bank (SABB) is planning to sell a riyal-denominated sukuk that will boost its capital reserves, with an announcement set to be made as early as next week. The issue will boost SABB's Tier 2, or supplementary, capital and will be arranged by HSBC's Saudi Arabian unit. The sukuk could be worth 1.5 billion riyals ($400 million) and will have a 10-year lifespan but a clause that will allow the bank to redeem the issue at the end of the fifth year. Riyad Bank announced plans to issue a 4 billion riyal bond to boost its capital base earlier this week. It will have the same 10-year, non-call five, structure that SABB is planning to offer.

Al Rayan Bank, formerly known as Islamic Bank of Britain (IBB), yesterday announced its strongest financial performance to date, resulting in the Bank more than doubling its operating income and posting its first profit since its inception in 2004. The bank’s operating income increased 168 percent to £11.8m in 2014 from£4.4m in 2013. The bank saw 86 percent increase in total customer financing, to £450.3m. Retail deposits increased 59 percent to £509.8m and while wholesale deposits increased 53 percent to £31.7m. Increasing consumer confidence, the continued strength of the housing market and opportunities to provide property finance to the commercial sector as well as to investors in the Gulf has enabled Al Rayan Bank to post its best results to date.

SEDCO Holding Group, a Shariah-compliant private wealth management organization, has acquired a 50% stake in Mektebim Okullari, a company operating in the private education sector in Turkey. Anees Moumina, CEO of SEDCO Holding Group, and Ümit Kalko, Mektebim's founder and Chairman, signed the accord. Under a partnership agreement with the Turkish company which currently operates 17 schools from pre-school to high school levels, SEDCO Holding Group will own 50% of the company's shares and play an active part in the company's growth strategy in the region. The schools currently have over 4,000 students and Mektebim Okullari will add 8 more schools this year to its portfolio and has many other projects under consideration.

Gatehouse Bank plc has announced the completion of terms to provide £17.92 million of senior financing following the recent acquisition of a UK industrial estate by Saudi Arabia's SEDCO Capital. Palmer Capital is acting as the Investment Manager to SEDCO Capital which through this venture intends to deploy £100 million into UK real estate over the next 12 months through this venture. This transaction is the first such transaction for this programme, which will target the recovering office and industrial real estate market in the UK. The funding supports the acquisition of Blakelands Industrial Estate, an industrial estate in Milton Keynes.

The second International Investment Summit held in Istanbul between April 29-30 gathered international investment funds and investors from Qatar, Saudi Arabia, Kuwait and the United Arab Emirates, in total managing about 1.5 trillion dollars of Gulf investment funds. Turkey’s Science, Industry and Technology Minister Fikri I??k stated that Turkey is making huge efforts to facilitate foreign investments over the last decade, both for encouraging them to make joint ventures with the domestic firms and also investing jointly in third countries. Last year, Turkey has attracted about six billion U.S. dollars of foreign direct investment, while the country aims to reach 80 billion U.S. dollars annually.

More savers than ever are turning to Islamic accounts in Great Britain. Tim Sinclair is head of marketing and retail sales at Al Rayan Bank, formerly known as the Islamic Bank of Britain. He says that business has taken off in the past 18 months. A large part of this growth was driven by non-Muslims. Mohammad Khan, head of Islamic finance at PwC, thinks that ethical concerns are one driver of interest in sharia-compliant products, but not the main reason. The competitiveness of the Shariah products is also an important incentive. For example, six of Al Rayan’s savings products are currently listed in the Moneyfacts “best buy” tables.

The opportunity presented by Islamic insurance products could help offset the London market's declining share of premium in developing markets according to Max Taylor, chairman of the Islamic Insurance Association of London. Taylor spoke at the IIAL's launch on 30 April at an event at Mansion House attended by Lord Mayor Alan Yarrow.

Bill Gross, well known fixed income fund manager twittered (https://twitter.com/januscapital/status/590519759797530624) and moved markets with his idea to sell German sovereign bonds short (selling without having them) to buy them back later cheaper. He called it "The Short of a lifetime"; the only issue would be the "timing"...

Interest rates will be once raising again but will short seller stay solvent long enough to benefit? The German economy is doing fine, but other EURO zone countries do not perform as well and need low interest rates for a prolonged period of time. Japan has so far not convincingly ended their easy money policy.

Turkey is a test-tube study in how emerging market (EM) countries reach developed status. As such, it is subject to the interactions between developed and emerging markets, including hot money capital flows, currency wars and the struggles with interest rate policy and inflation. The good news is that the banking system is functioning well and inflation is contained. The bad news is that Turkish financial markets are now subject to many of the adverse trends affecting all EM economies around the world. The central bank is under pressure from politicians to cut interest rates and devalue the Turkish currency to promote exports and tourism.

Speculation that the Turkish government may be closer to relinquishing control of Bank Asya has stoked its stock to a record gain. Bondholders proved harder to please. Shares of the Istanbul-based lender soared more than 50% after it said most Class-A holders provided documentation to the regulator proving they’re qualified to be founding partners. The bank’s Islamic bond climbed about 3% to 61.474 cents on the dollar in the week of April 12. Government control is considered positive for bondholders. The bank’s Islamic bond due March 2023 jumped 38%, the most on record, when Turkey’s agency responsible for resolving failed banks seized control in February as investors bet authorities wouldn’t let the lender default.

Turkish participation bank Kuveyt Turk has sold a debut deal of ringgit-denominated sukuk and has applied for a new 1 billion lira ($376 million) deal, as the lender looks to secure lower-cost financing. Kuveyt Turk, 62 percent owned by Kuwait Finance House , will sell the lira-denominated deal to qualified investors via its asset-leasing company, KT Kira Sertifikalari Varlik Kiralama. The ringgit five-year sukuk pays an annual yield of 5.8 percent, with the proceeds swapped into dollars to reduce the bank's funding costs to 4.4 percent. The 300 million ringgit sukuk is first issuance under a 2 billion ringgit programme.