IslamicFinance.de

The Islamic Development Bank (IDB ) and the New Partnership for Africa's (NEPAD) Development Planning and Coordinating Agency (NPCA) recently signed a memorandum of understanding (MoU) concerning regional integration and cooperation. The MoU also concerned infrastructure, agriculture and food security, education and human capital development, climate change and natural resource management and economic and corporate governance. NEPAD aims to provide technical advisory services coupled with grant and seed funding to assist countries in their development agendas. The challenges to be addressed are access to knowledg, youth employment, sustainable rural development, adequate infrastructure and industrialization.

Maybank Islamic Bhd has clinched major mandates valued at RM9 billion under its Islamic custody services in less than a year since its launch, with more new clients expected to be on board by end-2015, the bank said. Maybank Group’s Islamic banking arm stated by year-end, the financial offering will have assets under custody (AUC) amounting to RM13 billion on the back of these new clients. The clients comprise mainly from financial institutions, inclusive of non-bank entities, the bank said. Maybank Islamic’s custody services offering also provides value-added services such as Islamic performance measurement and attributes, and compliance monitoring.

The Thomson Reuters Global Sukuk Index is at 116.80989 points, down from 117.25342 at the end of last month but up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 114.94150 points against 115.35741 at end-November and 113.69014 at end-2014. Some of the sukuk in the pipeline are: Singapore's Vallianz Holdings said that a subsidiary would refinance loans with a Saudi riyal-denominated sukuk issue of up to 1.1 billion riyals ($293 million). Malaysia's Wego Sdn Bhd proposed a sukuk musharaka issue of up to 210 million ringgit ($49 million). Indonesian airline Garuda intends to raise $500 million through selling global bonds or sukuk next year to refinance debt.

The aim of Mutual Aid Networks is to redesign how we work; to apply what we know about economic and community building tools to create a new vision for work. Instead of getting jobs so we can afford to live, we decide how we want to live and create community supports for each other to do what we want to do. Eight pilot sites are currently forming MANs to increase energy conservation and renewable energy production, provide food security and others. This crowdfunding campaign will provide us with the money we need to develop our infrastructure via software, communications tools, training and travel, outreach and more.

A new study from IFC has found that external risks, security concerns, and over-indebtedness are perceived as the most serious challenges facing the microfinance sector in the Arab World. The survey, conducted in conjunction with Sanabel, the Microfinance Network of Arab Countries, said tackling those problems will be key to spurring the development of the industry. Microfinance has grown at a much slower rate in MENA over the last six to seven years, than it has in other parts of the developing world. The report marks the first in a series of studies on the microfinance sector to be developed by IFC and Sanabel. The initiative is part of IFC's wider efforts in MENA to expand access to finance, support to micro, small, and medium enterprises, and create jobs.

Capital Intelligence (CI) has affirmed Jordan Islamic Bank’s (JIB) Long- and Short-Term Foreign Currency Ratings (FCRs) at ‘BB-’ and ‘B’, respectively. JIB’s FCRs are constrained by Jordan's sovereign ratings (‘BB-’/’B’/ ‘Stable’), reflecting JIB’s base of operations in Jordan and its exposure to the Jordanian sovereign in the form of balances at the Central Bank of Jordan (CBJ). The Support Level of ‘3’ is affirmed, on the basis of the high likelihood of support from the CBJ in case of need, and from the parent Al-Baraka Banking Group in Bahrain. The Outlook for JIB’s FCRs remains ‘Stable’, in line with the Outlook for Jordan’s Sovereign FCRs. The Bank’s Financial Strength Rating (FSR) is maintained at ‘BBB-’, on a ‘Stable’ Outlook.

BIMB Holdings Bhd's wholly-owned unit, Bank Islam Malaysia Bhd, has issued the second tranche of the Subordinated Sukuk Murabahah amounting to RM400 million under the Subordinated Sukuk Murabahah Programme. The sukuk's tenure will be 10 years, with non-callable five years, and the maturity date will be Dec 15, 2025. The proceeds shall be used to finance Bank Islam's Islamic banking activities, working capital requirements and other corporate purposes and/or, if required, to redeem any outstanding Subordinated Sukuk Murabahah issued under the Subordinated Sukuk Murabahah Programme. The sukuk was rated 'A1/stable' by RAM Rating Services Bhd.

Maybank Islamic Bhd has so far secured major mandates valued at RM9 billion. More clients are expected to come on board by end of this year, which will bring the assets under custody to RM13 billion, its Deputy Chief Executive Officer and Head of Product Management Nor Shahrizan Sulaiman said. He said assets under management of Malaysia's institutional investors, government-linked companies and sovereign wealth funds were valued at about RM1.4 trillion. Nor Shahrizan said Maybank Islamic's custody services also provided Islamic performance measurement and attributes, and compliance monitoring for both domestic and global funds' portfolios.

BIMB Holdings Bhd’s wholly-owned subsidiary Bank Islam Malaysia Bhd has issued the second tranche of the Subordinated Sukuk Murabahah amounting to RM400 million under the Subordinated Sukuk Murabahah Programme. BIMB said the second tranche has a tenure of 10 years non-callable five years, with its maturity date being Dec 15, 2025. The sukuk has been rated A1/stable by RAM Rating Services Bhd. The proceeds will be utilised to finance Bank Islam’s Islamic banking activities, working capital requirements and other corporate purposes and/or, if required, to redeem any outstanding Subordinated Sukuk Murabahah issued under the Subordinated Sukuk Murabahah Programme.

The movement to reimagine the social purpose of business is accelerating at lightning speed, spinning off a renaissance of entrepreneurship that’s exhilarating to behold. This wave of corporate creativity for good is transforming the relationship that businesses have with their communities and the possibilities for real change. A new generation of businesses is filling the leadership vacuum by building philanthropy directly into their founding missions. For this innovative breed of companies, giving back is not optional or half-hearted; creating sustainable and measurable impact is as core to their definition of success as a high return to their shareholders.

Islamic Crowdfunding has the potential to help us change our world for the better. There is an immense variety and scope of applications for crowdfunding. Crowdfunding continues to evolve and in recent years made strides into the investment world. Real Estate Crowdfunding is one of the fastest-growing segments of this booming industry worldwide. The Global Crowdfunding industry is still dominated by the US, but Asia has recently seen strong growth eclipsing Europe as the next-largest Crowdfunding region. The low-entry capital makes it especially accessible to the middle income and small-medium business owners.

Regulators in developing countries need to find a new approach to supervising digital financial services or they risk hampering the efforts to increase financial inclusion, researchers have warned. Ross Buckley, chair of international finance law and Scientia Professor at UNSW Australia, said over-regulation posed the greatest threat to the development of the nascent fintech industry in developing countries. In many poorer areas the combination of finance and telecommunications technology was the only way to deliver banking services cost-effectively, he said.

CFA Institute, the global association of investment professionals, has launched the results of its first CFA Institute GCC Societies Survey, based on feedback from more than 200 GCC-based CFA charterholders and members from Bahrain, Kuwait, and the United Arab Emirates. The survey highlights economic, investment and employment trends and challenges in the GCC region. The economic outlook for 2016 seems uncertain, with the vast majority of respondents (81%) expect low oil prices to impact the GCC economy. Despite this uncertainty, the possibility of the introduction of Value-Added Tax (VAT), and human resources are dominant themes.

2008 was marked by a banking crisis that had a major impact on the world's economy. While the origins of the crash are still hotly debated, one issue has made a significant impact on the financial world – by and large, the real casualties of the crisis were not banks or financial moguls, but average people. One positive result of the 2008 crash has been a shift in the economic and business sectors towards a more ethical code of practice. There are areas of the economic world that are poised to provide the sound, ethical, and forward-thinking financial services, and for those already working in Islamic Finance the answer to solving and preventing the world's economic woes seems obvious – risk sharing.

Asia's wealthy have been quietly stepping up their commitment to philanthropy, pouring significant fortunes into causes such as education - and doing so well away from the sort of limelight that their Western counterparts often enjoy. Many established private banks have dedicated units to advise their wealth management clients on matters related to philanthropy. Credit Suisse Private Banking Asia Pacific is one of them, having created SymAsia five years ago to help its clients set up charitable foundations. Singapore has been very much part of Asia's growing philanthropic community. The Singapore Government has moved to encourage more giving.

Country Director Asian Development Bank (ADB) Werner Leipach, said that ADB was planning to explore opportunities of co-financing from new sources through Islamic Financing and the Asian Infrastructure Investment Bank (AIIB). The AIIB assistance will be sought for the M4 Project, Shorkot-Khanewal Section, near the China Pakistan Economic Corridor. Leipach mentioned that ADB’s total co-financing for Pakistan stood around $1050 million including $400 million grant commitments from DIFD. ADB has also provided trade finance support for the private sector investments to the tune of $95 million.

The difficulties in forming a megabank in the $2 trillion Islamic finance industry are becoming clear as Indonesia pushes back deadlines for its plan after failures in Malaysia and the Middle East. Financial Services Authority Director Dhani Gunawan Idat is the latest official to repeat Indonesia’s goal for such an entity after two years of trying, with a plan to merge the Shariah-compliant units of PT Bank Mandiri, PT Bank Negara Indonesia, PT Bank Rakyat Indonesia and PT Bank Tabungan Negara. He put the time frame as 2017 in an interview Friday, while his Chairman Muliaman Hadad said in January it may happen this year. Gatot Trihargo, deputy minister for government-run enterprises, said in June that 2016 was the target.

The former chief executive officer at HSBC Amanah Malaysia Bhd, Mohamed Rafe Mohamed Haneef, will soon head CIMB Islamic Bank Bhd. In a statement today, CIMB Group Holdings Bhd said Rafe will assume his new post on Jan 4 next year as CEO and executive director of CIMB Islamic Bank and CEO of Group Islamic Banking Division. CIMB group CEO Tengku Datuk Seri Zafrul Aziz Tengku Abdul Aziz said that Rafe brings with him experience in business and functional positions in three global banks, an international asset management company and a legal firm. Rafe holds a bachelor’s degree in law from the International Islamic University Malaysia and a master’s degree in International Finance and Securities Law from the Harvard Law School.

Noor Bank was named the "Most Socially Responsible Bank"™ at the "2015 Islamic Business Awards"™ ceremony hosted by the reputed CPI Financial. Amjad Naser, Head of Sharia™, Noor Bank, collected the award at the event, which took place at the Emirates Towers Hotel on 10 December. Noor Bank was honoured for its commitment towards enhancing and enriching the lives of the less fortunate. The CPI Financial judging panel nominated the bank among several other industry leading banks in the United Arab Emirates. Following the initial nomination, Noor Bank was voted the unanimous winner by financial professionals within the region.

Islam, which many Americans consider a threat, has a valuable and little-noticed lesson for Western investors. Following Muslims' Shariah law, the religion's investing style avoids highly indebted companies that burn brightly -- and risk fizzling out. Amana funds, the largest U.S.-based family of Islamic-oriented mutual funds, have posted mostly so-so performances since 2009, as corporations worldwide issued a plethora of bonds to take advantage of minuscule interest rates. Unfortunately, widespread unease about Islam in the U.S. obscures the virtues of Shariah funds. Calls for preventing Muslims from entering the U.S. are just part of the trend. Seven states have barred courts from using Shariah law.