IslamicFinance.de

Malaysian companies building railways and power plants under Prime Minister Datuk Seri Najib Razak’s US$444 billion (RM2 trillion) development programme will help revive sukuk sales from the slowest quarter since 2010. Corporate issuance could rise to as much as RM60 billion for the full year, said Mohd Effendi Abdullah, head of Islamic markets at Kuala Lumpur-based AmInvestment Bank. More Shariah-compliant bond sales are likely to be announced once the United States goes ahead with an expected interest-rate increase, removing an uncertainty that’s stifled issuance, said Effendi.

Malaysian companies building railways and power plants under Prime Minister Najib Razak’s $444 billion development program will help revive sukuk sales from the slowest quarter since 2010. Corporate issuance could rise to as much as 60 billion ringgit ($13.5 billion) for the full year, said Mohd. Effendi Abdullah, head of Islamic markets at Kuala Lumpur-based AmInvestment Bank. While the forecast would mark a pickup from the 31.5 billion ringgit sold so far this year, offerings would still remain below levels for the past three. Effendi said sukuk issuers that need the funds will still go ahead with sales even if market conditions are tough because they can structure longer-maturity debt to appeal to pension funds and insurers.

Cobalt Underwriting founder Richard Bishop has talked about why he launched London's first Islamic insurance managing general agent – and why London needs to stay relevant. It was back in 2007, when Richard Bishop was working in general broking, that a chance conversation with a Muslim cleric sewed the seed of a business idea that would grow to become the London market’s first Islamic insurance managing general agent.

When Senegal issued a 100bn CFA franc ($168m) sovereign Islamic bond in June 2014, it beat economic giants Nigeria and South Africa to market and began a race to create a hub for Islamic finance in Africa. Senegalese officials are optimistic about the country's prospects. There is an Islamic bank in Senegal, the Banque Islamique du Sénégal. Alioune N'Diaye, the finance ministry's director for money and credit, also emphasized the good relationship with the Islamic Development Bank (IDB). With a gradual readjustment of tax and other laws to be able to accommodate sharia-compliant financial instruments and growing ties with Gulf states, Senegal could become a prime destination for Arab investors who are looking for higher returns on their money.

The Nigeria Deposit Insurance Corporation (NDIC) has urged the management of Jaiz Bank to embark on public awareness and financial education on the benefits of non-interest banking practice to attract more customers. Alhaji Umaru Ibrahim, NDIC's managing director, informed the team that the corporation had developed a non-interest banking deposit insurance fund framework in May. He said that the framework was designed to create a level playing field and provide deposit protection for depositors involved in non-interest banking and protect them against any possible losses. In addition, he said that the corporation was in the process of appointing committee of experts to advise it on all issues relating to Deposits Insurance Scheme (DIS) for non interest banking.

Central Bank of Nigeria (CBN) has granted a na­tional licence to Jaiz Bank and a waiver on the reduc­tion of its liquidity ratio from 30 per cent to 10 per cent. The licence will enable Jaiz Bank operate in any part of the country. The Managing Director and Chief Executive of Nigeria Deposit Insurance Corporation (NDIC), Al­haji Umaru Ibrahim, informed that the corpo­ration had developed a non-interest banking deposit insurance fund framework in May 2015, in order to provide depos­it protection for depositors involved in non-interest banking, in addition to training its staff in Malaysia in this area of banking. The NDIC was in the process of ap­pointing a committee of experts to advice it on all is­sues relating to Deposits Insurance Scheme (DIS) for non-interest banking, he added.

Le patron de CIH Bank Ahmed Rahhou a annoncé vouloir se placer sur le créneau de la finance participative. Les banques ont jusqu’à la mi-novembre pour déposer leur demande d’agrément auprès de Bank al Maghrib. Le dossier de CIH Bank est en train d’être finalisé. Le PDG a précisé que cette activité, si elle obtient l’autorisation de la banque centrale, serait menée en partenariat avec une autre banque, sans en préciser le nom. Pour le moment, la BCP et la BMCE ont aussi fait part de leur volonté de se lancer dans le secteur. Des banques étrangères souhaiteraient aussi investir. En ce qui concerne les chiffres du premier semestre 2015 publiés le 21 septembre, la direction de la CIH Bank s’en dit satisfaite.

At the 5th Global Islamic Finance Awards (GIFA) 2015 held at the Gulf Convention Center, the CEO of Islamic Corporation for the Development of the Private Sector (ICD), Mr Khaled Al-Aboodi, was awarded the "Islamic Finance Personality of the Year" for his contribution to the development of the Global Islamic finance industry. The Global Islamic Finance Awards (GIFA) aims to highlight the best practices in Islamic banking and finance, and honor the efforts and contributions of individuals and institutions in the Islamic finance industry. Previous award recipients of GIFA include leaders such as Tun Abdullah Badawi, former Prime Minister of Malaysia and HE Shaukat Aziz, former Prime Minister of Pakistan.

Malaysian Electronic Payment System Sdn Bhd (MEPS) and its member banks will waive the fee for its real-time Instant Transfer, previously known as Inter-bank Funds Transfer (IBFT) service, from tomorrow – Oct 1 – to Dec 31. In a statement yesterday, MEPS said the zero fee was applicable for transactions on the Internet and mobile banking channels of the participating banks. However, the instant transfer fee at automated teller machines (ATMs) remained at 50 sen, it said. The initiative shows the banks’ and MEPS’ support for Bank Negara Malaysia’s (BNM) e-Payment adoption. By 2020, BNM is targeting to increase the number of e-payment transactions per capita from 72 to 200.

Unless Gulf bond sales pick up in the fourth quarter, the market will shrink this year for the first time in a decade. The prospects aren’t looking good. Issuance from the six-nation Gulf Cooperation Council dropped 31 per cent to $20.4 billion this year through 30 September, while $23.5 billion of securities are due to mature in 2015. Redemptions haven’t exceeded sales since at least 2005. A contraction would cap a year in which GCC debt investors have been starved of options as borrowers turned to loans and markets whipsawed amid China’s faltering economic performance and speculation the Federal Reserve will raise interest rates.

Egypt's Wethaq Takaful Insurance is to launch its first real estate fund during upcoming general assembly scheduled for next November, head of financial and administration affairs Abdel El Aziz Labib said. Wethaq will present 50 million Egyptian pounds (US$6.4 million) as an initial capital for the new fund. The Egyptian Financial Supervisory Authority (EFSA) has granted initial approval for the fund. Wethaq intends to raise the capital of its fund to 250 million pounds within few years after inception, a step toward a plan to launch another fund. Furthermore, Labib said Wethaq's talks with the Egyptian regulator had also included a proposal to establish a new subsidiary to manage the new fund. The new subsidiary shall be 20% owned by Wethaq Egypt, he added.

The Bank of Ghana is in the process of licensing Islamic Bank, which is expected to provide interest free loans to its customers across the country. The Central Bank Governor, Dr Henry Kofi Wampah, told journalists at a press conference in Accra that the Banking Supervision Department of his outfit is working assiduously to issue new banking licenses to Islamic Bank, as well as the Ghana Armed Forces Bank by the close of the year. Research from Lotus Capital Limited in Nigeria shows there is a growing appetite for Islamic finance as approximately 30 per cent of the Muslim population around the world would be interested in Islamic finance. Nevertheless, the operations of Islamic banks give rise to a unique set of risks, in addition to the standard risks associated with banking activities.

The Robin Hood Index chart shows the effect of confiscating all of the wealth of each country’s wealthiest individual and redistributing it to the poorest 15 percent of the nation’s population. Consider what happens if we took all of the wealth ($80 billion) of Microsoft co-founder Bill Gates and redistributed it to the poor. According to an analysis by Bloomberg News, the poorest 15 percent of Americans would get a one-time payment of $1,736 each. By adding the next billionaires on the list, that payment increases to $20,000. While a one-time payment of $20,000 might be nice for a few weeks or months, it solves precisely none of the long-term problems facing the poorest Americans.

Le gouverneur de Bank Al Maghrib, Abdellatif Jouahri, a assuré que le Comité des établissements de crédit a reçu plusieurs demandes d'agréments de la part d'institutions étrangères pour l'implantation de banques participatives au Maroc. Pour la plupart, il s'agit de banques du Qatar, d'Arabie Saoudite, du Bahrëin et du Koweit, qui veulent collaborer avec des banques de la place, pour certaines, et s'implanter au Maroc, pour d'autres. Toutes les demandes seront traitées selon des critères spécifiques, comme la capacité à réaliser un bon rendement. D'autres banques internationales ont également manifesté leur intérêt pour le Maroc, notamment HSBC, qui a déjà reçu une autorisation pour ouvrir ses portes au royaume.

Indonesia is drawing interest from Middle Eastern banks seeking to tap the world’s biggest pool of Shariah-compliant investors as some Islamic lenders wind down or close operations in Malaysia and Singapore. Emirates NBD PJSC wants to invest at least US$300 million in a new Shariah lender or acquire a stake in an existing one. The investments would be a boost for Indonesia in its ambition to become an Asian hub in the US$2 trillion industry. Emirates NBD’s plan comes as Kuwait Finance House prepares to close its Islamic operations in Malaysia, while Bahrain’s Elaf Bank BSC has already done so. DBS Group Holdings Ltd is winding down its Singapore arm catering to Muslims.

World Islamic finance market is set to almost double by 2020 from the current $1.81 trillion to $3.25 trillion, led by banking and Takaful assets, a study has revealed. Commercial banking contributes to about $1.34 trillion, while $33.4 billion is contributed by takaful insurance, while sukuks contribute to about $295 billion of the world Islamic Finance market. The growth has been fuelled by banking and Takaful assets, which have grown 12 per cent and 10 per cent respectively, while sukuk and funds witnessed modest growth of 6 per cent and 7 per cent respectively. However, the continued presence of significant macroeconomic and geopolitical hazards do not augur well for Islamic Finance sector.

In less than three weeks’ time, the world’s heads of state will gather at the United Nations in New York to officially adopt the post-2015 development agenda, known as the Sustainable Development Goals (SDGs). According to the campaign group The Rules, there’s so much wrong with the SDG process that its 17 goals and 169 targets are not only misleading and inadequate, but even dangerous. They argue that while the SDGs represent a significant step forward by aspiring to completely eradicate extreme poverty by 2030, the new agenda fails to provide an answer for how to realise its objectives within the means of our shared planet.

Indonesian regulators have launched a plan aimed at growing the sector, which currently accounts for less than five percent of banking assets, compared to a quarter in Malaysia and around half in Saudi Arabia. Authorities believe it is a good moment, with many Indonesians getting wealthier after years of strong economic growth and an increasing trend towards piety across broad sections of society. The Financial Services Authority (OJK) is spearheading the drive, and unveiled a five-year roadmap earlier this year that included plans to educate the public about Sharia’h lenders and the establishment of an Islamic finance committee to better manage the sector.

Pak-China Joint Chamber of Commerce and Industry (PCJCCI) has called for making the businesses and commercial activities in accordance with Islamic financial laws. The PCJCCI President Shah Faisal Afridi said all stakeholders should understand the limitations at this stage and work towards its advancement to develop an economic system truly reflective of the sacred principles of Islam. According to Global Islamic Finance Report, Pakistan ranked at number nine in the world in terms of development of Islamic financial services industry in the country, and second largest Islamic market (population-wise) after Indonesia, and could become the most important player in Islamic banking and finance, if it attained 20 percent market share.

The Thomson Reuters Global Sukuk Index is at 118.31951 points, up from 117.69120 at the end of last month and 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 117.20440 against 116.46023 at end-August and 113.69014 at end-2014. Some of the sukuk in the pipeline are: Turkish Islamic bank Kuveyt Turk has picked seven banks to arrange a potential U.S. dollar-denominated sukuk issue to bolster its supplementary or Tier 2 capital. The Pakistani government plans an international sukuk issue, likely to be worth $500 million, next year. Malaysia Building Society is finalising plans to offer up to 900 million ringgit ($214 million) in structured sukuk, probably later in the month.