IslamicFinance.de

Aldar Properties PJSC (ALDAR) has consented to buy Sorouh Real Estate PJSC at the cost of 5.5 billion dirham ($1.5 billion). According to a statement y the two companies, 1.288 of Aldar's shares will be offered for each Sorouh share. Thus, based on the closing price of January 17th, Sorouh’s shares are worth 2.10 dirhams. The Managing Director of Sorouh - Abubaker Seddiq Al Khouri - will be chairman of of the combined Aldar Sorouh Properties PJSC. The deal was backed by the government of Abu Dhabi, which has taken an increasingly direct role in the development of projects and support of builders after the impact of the credit crisis on real estate.

According to the Economy Minister Sultan Al Mansouri, restructuring of Amlak Finance is considered a particularly complicated problem. However, solution is near. Amlak is currently discussing proposals to restructure bank debt of about US$2 billion (Dh7.34bn). Since the Dubai property crash in 2008, the company has been facing uncertainty in terms of finance due to the suspension of its shares. The authorities treat the situation with renewed urgency. The government of the UAE has summoned a special committee to resolve Amlak's problems.

The National Bank of Abu Dhabi (NBAD) has received the award Dubai Chamber of Commerce '&' Industry Centre for Responsible Business CSR Label. The award is a reflection of the recognition of the bank's responsible and sustainable business practices in the fields environment, marketplace, workplace and community. Senior Manager of Sustainability at NBAD - Belinda Scott - explained that being a major player in the economic development of the country goes hand in hand with caring for the social and environmental effect of the bank's activities.

Due to orders by Dubai's ruler, all legal action in the Dubai International Financial Centre courts involving Amlak Finance were transfered to a special judicial committee outside Dubai's normal legal system. According to a decree, which was issued on December 16th by Sheikh Mohammed bin Rashid, all Dubai courts including those in the DIFC are not allowed consideration and settlement of any application or claim related to Amlak Finance. A decree from 2009 established a special judicial committee which serves to hear claims against Amlak and Tamweel. That decree relocated all cases in the Dubai courts to the committee, did not however discuss cases in the DIFC courts, which have a separate set of procedures based on English common law.

This year, contracts worth $159 billion are to be awarded across the Middle East. Project finance loans are expected to grow almost 15% this year. It is expected that the area of project finance will grow from about $35 billion in 2012 to about $40 billion due to the increase in significance of infrastructure demand. On February 17-20 the Qatar Projects 2013 conference will be held in Doha, organized by Meed Events. The key part of the event will be a comprehensive review of contract financing opportunities and challenges in Qatar.

Emirates NBD surged after the forecast of its Islamic unit that profits would double. The stock gained 6.4% reaching Dh3.31 a share, which is the biggest increase since April 2011. On Wednesday, about 1.3 million shares were traded, which is three times the three-month daily average. The stock is said to be the biggest gainer on the Dubai Financial Market General Index. Emirates Islamic Bank will look for ways to boost net income to Dh150 million this year increasing it from Dh80m in 2012.

When last week Vice President of the UAE and Ruler of Dubai Sheikh Mohammed bin Rashid explained his vision of the emirate becoming a global hub for Islamic finance and economy, the head of Islamic finance structuring at Deutsche Bank (DB) in Dubai Ibrahim Qasim was pleased but not really caught by surprise. He considers the initiative a very positive one and thinks it will solidify Dubai and the UAE's current standing as an important Islamic finance hub. He further explains that the UAE already has an advantage in the area of Islamic economy. DB is prepared to help and support the policymakers of the emirates in their ambitions.

In a recent announcement SHUAA Capital made known that its wholly-owned subsidiary - Gulf Finance Corporation - has engaged with the UAE Central Bank for a license which shall serve to establish an Islamic Window for some of its financing activities. The plans of Gulf Finance include the submission of the necessary applications in the first quarter of 2013. It is expected to be market-ready in the spring of 2013, subject to regulatory approvals. The proposed programme to offer Islamic financial services is consistent with the vision of Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister of the UAE and Ruler of Dubai. He recently explained the necessity to establish a platform of Islamic economic products and services aiming to grow the Islamic economy.

According to research by Kuwait Finance House, the total of sukuk issuance by end of 2012 has amounted to $131bn. This is an increase of 54% compared to 2011. The total sukuk issuance in December is $8bn marking a 61% increase in comparison with the previous year. Malaysia is the country which issued the most sukuk, followed by Saudi Arabia, the UAE, and Indonesia.

Abu Dhabi Equity Partners (ADEP) closes first Sharia-compliant agricultural inventory finance transaction in Brazil. The investment deal is a combination of a mix of asset backed financing, capital and profit protection from Global investment bank, five to ten times US Dollar deposit yield pick-up, and global trading houses as counterparties. According to the Managing Partner of the company - Mr. Muneef O. Tarmoom - the combination of "back-to-basics" physical asset backed financing and Global 'A' rated banks' capital and profit protection features enables ADEP to originate financing opportunities with a yeald 5 to 10 times larger than current US Dollar murabaha rates. The company's landmark Brazilian agri-based inventory transaction shall serve to finance a leading sugar and ethanol producer in the state of Mato Grosso do Sul.

Property lending company Amlak Finance is in discussion with creditors about restructuring about AED7bn (US$1.9bn) of debt. This is the latest try to resurrect a victim of Dubai's property crash. THe creditor committee consists of six members including two government-owned funds, Dubai's largest lender and its biggest Islamic bank. Since November 2008, Amlak has not been able to trade due to suspension of its shares along with Tamweel. At that time, the credit markets had dried up the prices of real estates in Dubai began a slump leading them to a decrease of over 50%.

The countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE have a very high chance of success in the development of their financial markets and promoting their competitiveness. This is shown in a recent research by Deutsche Bank. One of the key factors stressed on in the research report is progress made in corporate governance-related matters. The Cooperation Council for the Arab States of the Gulf countries has made significant advances in establishing effective financial market regulation and oversight as well as a strong grip on market abuse and financial fraud. Continuing to follow this direction and committing the resources needed to achieve optimal consistency and effectiveness in regulation and market supervision is seen as crucial for achieving the goals of financial development and economic diversification.

Amlak Finance PJSC is discussing with creditors the restructuring of about US$2 billion of bank and government debt. The negotiations are being held between the company and a committee of five banks representing creditors. Amlak is being advised by PricewaterhouseCoopers LLP on the matter. Since the suspension of shares of Amlak and Tamweel PJSC in November 2008 following the blockage of the companies' access to borrowings by the global credit crisis, Amlak has experienced serious losses. In 2011 the company registered a third-quarter loss of 40 million dirhams (US$11 million).

Bankers have an optimistic attitude towards a full-scale restructuring of the US$10 billion (Dh36.72bn) debts of Dubai Holding. They consider such a move to be imminent following the settlement of a legal action against a unit of the conglomerate. Four banks, one of which Royal Bank of Scotland, have reached an agreement on the terms of restructuring debts of Dubai Group, the financial arm of the holding company. This will include their dropping a controversial legal action against the Dubai company.

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• Monitor and report legal and compliance risks to senior management
• Identifies, manages and reviews all legal and compliance matters arising from or in connection with the business
• Coordinate relationships with regulators and act as first point of contact for regulators
Sharia Compliance:
• First contact person for Sharia Board in respect of legal and Islamic banking compliance issues
• Ensure compliance of processes and products with Sharia law; coordinate cooperation with the Sharia Board and Sharia related consultants

According to a recent announcement, Abu Dhabi Islamic Bank (ADIB) has achieved a huge number of the Global Village visitors through its Financial Education Campaign. As the main sponsor of the campaign for the second year, ADIB supports the event as part of its strategy to help and promote initiatives launched by the government endorsing the UAE’s tourism and entertainment industries. Some of the exclusive services the bank offers at the venue are providing ATMs as well as setting up specially designed mobile branches. There, visitors have the opportunity to receive information about financial management and ADIB’s unique products and service.

According to announcement, Emirates NBD's Islamic unit plans will start with a rights issue worth Dhs1.5bn ($408m) this month. Emirates Islamic Bank (EIB) will offer 1.5 billion shares at Dhs1 each between January 25 and February 3, thus increasing its capital to Dhs3.93bn. Since last year, Dubai Bank is formally part of Emirates NBD, since it was rescued by the Dubai government in May 2011.

The Dubai Government is set to create a comprehensive platform of Islamic economy products and services, thereby strengthening its position as a global centre for Islamic economy. The initiative includes standardization and regulation of Islamic products, services and practices. Thus, Islamic economy will become stronger and independent from conventional and interest-based financial practices. As a regional business and trade centre, the UAE already has world class ‘hard’ infrastructure. According to Chief Economist of National Bank of Abu Dhabi Dr. Giyas Gokkent, now the ‘soft’ infrastructure will be added thanks to the initiative, this way encouraging and attracting Sharia compliant activity in various services and industries.

The Global Islamic Microfinance Forum in the UAE united MFI’s of 27 Countries to elaborate on the development of Islamic Microfinance. The event was marked by unanimity on the decision to work together for the advancement of Islamic Microfinance globally. The Forum took place on 8th-10th December 2012, in Dubai World Trade Centre, UAE. Among the delegates there were experts from countries such as UAE, Pakistan, India, UK, Bangladesh, USA, UK Bahrain, Yemen, Azerbaijan, Turkmenistan, Kirghizstan, Mauritius, Kenya, Canada, France, Egypt, Philippine, Uganda, Iraq, Nigeria, and Sudan. Key topics included bringing together the Islamic Microfinance Institutions on a single platform as well as the role of Islamic Microfinance in poverty alleviation. Furthermore, Shariah and related issues of Islamic Microfinance Institutions and their solutions were discussed.