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In December 2012, the Supreme Council for the Environment was established in Bahrain. It consists of six ministers, who bring with them an expertise in various sectors. The Council’s declared aim is to protect Bahrain’s natural environment and to monitor potentially harmful industrial activity. The most important issues that the Council has to deal with are protecting marine life from urban sprawl and pollution and creating a balance between infrastructure growth and safeguarding natural resources. In addition, the Council is also responsible for the formulation of Bahrain’s 2020 environmental strategy. Thus, as of today, Saudi Arabia is the only Gulf country without a ministry of environment or a centralized governmental organ dealing with environmental issues.

Al Salam Bank-Bahrain has acquired an equity stake in the Education Experts Company for Education & Training, one of the fastest growing education companies in the Kingdom of Saudi Arabia. Mr. Abdullah bin Mansour Al Qahtani, Chairman of the Education Experts Company expressed pleasure in partnering with the Bank. Meanwhile, the Bahrain All-Share Index declined by 0.11% to 1,183.59 points on Wednesday, and Al Salam Bank-Bahrain lost 2.15% to BD0.091.

Saudi dairy firm Almarai is said to be looking to sell Perpetual Sukuk, the first from an issuer in the Kingdom of Saudi Arabia. This will be senior Sukuk that does not mature which means that from a credit point of view it is treated as equity rather than debt. BNP Paribas, HSBC Saudi Arabia, Saudi Fransi Capital and Standard Chartered are said to the joint lead managers for the Perpetual Sukuk. Almarai already sold SAR1.3bn of five- and seven- year Sukuk in March of this year.

Saudi Arabian food company Almarai plans to sell perpetual Islamic bonds, the first from an issuer in the kingdom. Almarai will meet domestic investors in the next two weeks to privately place of 1.7 billion Saudi riyals of senior sukuk that do not mature. BNP Paribas, HSBC Saudi Arabia, Saudi Fransi Capital and Standard Chartered have been mandated as joint lead managers for the perpetual offering. Almarai, which sold 1.3bn riyals of five- and seven- year sukuk in March, is raising funds for a 15.7bn-riyal four-year investment program. The ability to raise cash without disturbing a company's share structure is a key benefit, therefore this might be especially interesting for the region's family-owned businesses.

The Islamic Development Bank (IDB) will boost its sukuk programme by more than 50 per cent by year-end as demand for financing from member countries, including Turkey and Morocco, grows. IDB aims to raise its medium-term note programme to US$10 billion (RM33 billion) from US$6.5 billion, so that it is ready to tap the market at any time. The increase will be the largest by value since the programme was started in 2005 by the almost 40-year-old bank.

Saudi British Bank (SABB), an affiliate of HSBC Holdings and the kingdom's third-largest listed lender by market value, is reportedly aiming to sell a Tier 2 capital-boosting Islamic bond before the end of the year. HSBC is advising SABB on the potential riyal-denominated transaction.

Experts say that 85 percent of Saudi families do not save money and resort to diving into their savings or borrowing to meet their needs. The absence of savings is one of the biggest weaknesses of the Saudi economy. The spirit of consumption is dominant and this negatively affects economic growth and increases the rate of inflation due to the increased rate of consumption. Due to the absence of a culture of saving, Saudi families are exposed to financial woes every month, not because they earn a low income but because they never learned to save money and engage in financial planning. Most Saudi families suffer from over-spending and sometimes spend 10 percent more than they earn. This urges them to borrow money.

Zaheeruddin Khalid, director of portfolio management at Saudi-based Jadwa Investment, said that the mutual funds market is dominated by asset managers backed by commercial Banks. However, in the segregated accounts market, Jadwa Investment is one of the major players along with the big five. He moreover explained that Shariah-compliant products investing in Saudi Arabia have generally had performance similar to the conventional products. Shariah-compliant versions of most conventional products are available in the Saudi market. Most innovations are taking place in the private investment product side instead of the public products (mutual funds) because of higher demand for the former, he added.

In cooperation with Chambers of Commerce in Abha and Eastern Region, the National Commercial Bank ( NCB ) has recently celebrated the graduates of "How to Start Your Small Business" Course. A number of 94 entrepreneurs from Jeddah, Abha and Eastern Region enrolled in the course. The course has covered a great number of entrepreneurs projects in different areas including industrial, commercial and other projects. It included theory training for 10 days, followed by 6 sessions within 3 months for practical training, which included a program for follow-up and consultancy. The course comes in line with NCB CSR programs, through which the bank trains entrepreneurs from men and women to start their enterprises, encourages investment culture and creates a competitive environment in the local market.

Saudi investment firm Sedco Capital plans to register its Islamic funds in Switzerland and distribute them through tie-ups with global private Banks. This is part of efforts to diversify its client base outside Saudi Arabia. Sedco Capital has incorporated environmental, social and governance (ESG) principles into two of the equity funds, widening their appeal to include ethically minded investors in general. The firm hopes this will allow its funds to be marketed to investors beyond traditional Islamic areas in the Middle East and southeast Asia. The firm aims to be able to source two-thirds of its assets under management from outside Saudi Arabia in four to five years. One fund is to be signed by October and the second one by December.Sedco Capital's two ESG funds, launched in May last year, have $230 million in assets and are managed by Stockholm-based Informed Portfolio Management.

Saudi firm Wataniya Insurance Company announced the commissioning of Shariyah Review Bureau (SRB) as their Sharia advisor. Shariyah Review Bureau will oversee and supervise the company's Shari'a Compliance needs from Product structuring to Certification, and from Investments to periodical Shari'a reviews. According to Mr. Yasser Dahlawi, CEO at Shariyah Review Bureau, outsourcing Shari'a Supervisory functions is changing the landscape of the whole Islamic financial industry. It has been accelerated with greater demand from Institutional clients seeking cost-effective measures and a dynamic environment in having there queries and products quickly reviewed and verified, he added. Shariyah Review Bureau is currently serving 22% of the listed Cooperative Insurance companies in Saudi Arabia.

Ahmad Hamad Algosaibi & Brothers plans to make a new offer on US$7.2 billion of debt to creditors as it seeks to bounce back from the Middle East's biggest corporate default. The Saudi Arabian company, which runs a bottling plant for PepsiCo Inc. (PEP) products in the kingdom and has interests ranging from finance to shipping, will propose the new deal in the coming months, according to its Chief Executive Officer Simon Charlton. Creditors rejected a proposal from Algosaibi four years ago. The new debt proposal will include some upfront payments and those spread over a longer time. However, terms of the revised deal are likely to be less favorable than the initial offer. Charlton said Algosaibi plans to borrow from local and international banks once the restructuring is resolved.

A new whitepaper released by Deloitte in July examines the potential mortgage industry in Saudi Arabia and highlights key issues that need to be addressed in order to create both lender and consumer confidence in this market. The whitepaper lists and describes the five laws that will make up the Finance Law, which are The Enforcement Law, The Real Estate Finance Law, The Registered Real Estate Mortgage Law, The Finance Lease Law and The Finance Companies Control Law. The description is followed by a discussion of lenders and consumers’ potential concerns with regards to the new mortgage infrastructure. In principle, the multi-dimension reforms appear sufficient to develop a functioning mortgage market. However, fundamental to this is whether they are executed in their entirety, or whether there is any uncertainty as to their exact definition.

Saudi Arabian dairy producer Almarai Co. has chosen four banks to arrange the sale of a hybrid sukuk. The firm has mandated the investment banking arm of Banque Saudi Fransi, BNP Paribas, HSBC's Saudi Arabian unit and Standard Chartered to arrange the transaction. The offering, which is not imminent, is likely to be denominated in Saudi riyals, although the company could opt to issue in dollars instead. Almarai's Chief Financial Officer, Paul Louis Gay, told reporters in May it could opt to issue a hybrid Islamic bond in the next 12 months to help fund its ambitious growth plans, with a target amount of around $500 million. However, Gay said in May it was looking to raise the cash from international investors, rather than the local debt market. Earlier this month, Almarai posted a 4.9 percent year-on-year rise in second-quarter net profit on the back of growth in its core business.

The Islamic Development Bank's board of executive directors has approved new finances worth $790 million to carry out different projects in member countries. The board agreed to give $220 million to the renewable energy program of the Development Bank of Turkey and $200 million for an electricity project in Damietta, Egypt. The new finances approved by the board will also benefit Morocco, Uganda, Pakistan, Burkina Faso, Mozambique, Yemen, Togo, Jordan and Mali. It has also agreed to provide grants to educational projects for Muslim communities in Kenya, Nepal and Congo. Moreover, the board discussed the decision taken by IDB governors to increase the bank's capital from $45 billion to $150 billion and arrangements to celebrate the bank's 40th anniversary.

Abdulaziz AlSaghyir Holding has launched a center specialized in social responsibility. The aim of Namaa Center for Social Responsibility (NCSR) is to support social services, innovate communal programs and promoting scientific studies and research of this area. Moreover, the center seeks to build strategic partnerships with different partners to support the center'sactivities in the future. The NCSR also represents the strategic arm of Abdulaziz AlSaghyir Holding in planning,development and implementing communal programs. NCSR's long-term strategies and plans include the educational, social and training fields. The planning of a specialized program of leadership for university students from both genders has already been completed through strategic central relationships with the high education and universities. The program is based on thinking, experiment and building to advance the personality and behavior.

Saudi lender Bank AlJazira has reported a 29% jump in its net income for the second quarter to SR167m, compared with SR129m for the same quarter last year. Net profit during the first six months of 2013 grew 15% to SR312m from SR272m for the same period last year. The bank's total assets as of June 30, 2013 stood at SR56.22bn against SR47.12bn for the same period in the previous year, an increase of 19%.

Saudi-based construction firm Binladin Group has completed a 1-billion-riyal ($266.7 million) Islamic bond sale. The transaction, structured as a sukuk al-murabaha, has a one-year lifespan and pays a profit rate of 2.5 percent. The Islamic bond was sold to a wide range of investor types including financial institutions, asset managers and insurance funds among others. Sources said last month that BNP Paribas and the investment banking arm of Gulf International Bank were marketing a deal for Binladin Group to Saudi investors, with proceeds to be used to fund its projects. The sukuk sale is the fourth carrying a 364-day tenor. Binladin Group has already completed one, longer-dated local currency sukuk in 2013. It priced the 1.3-billion-riyal Islamic bond with a 2.5-year lifespan, arranged by the investment banking arm of Banque Saudi Fransi , in April.

Saudi-based Al Rajhi Bank posted a slight rise in its second-quarter net profit. The bank made 2.12 billion riyals ($565.3 million) in the three months to June 30, compared with 2.09 billion riyals in the same period a year earlier. Profit for the opening six months of the year was 4.17 billion riyals, up from 4.10 billion riyals in the corresponding period of 2012. The results are in line with analysts' forecasts that expected the bank, on average, to post a net profit of 2.13 billion riyals for the second quarter.

The Board of Executive Directors of the Islamic Development Bank (IDB) has approved US $789.4 million to finance development projects in eleven member countries as well as education projects for Muslim communities in non-member countries. The BED approved US $220 million for the Turkey Development Bank program to finance renewable energy projects. Moreover, Uganda will benefit from US $120 million for the upgrading of road projects. The rest of the approvals include US $8 million for Niassa electrification project in Mozambique, US $7 million for a project on access to energy for rural communities in Togo and US $23.7 million to the government of Mali to address food insecurity in the country. The government of Pakistan received approval of US $35 million for the financing of the reconstruction of schools destroyed by the floods and US $19.8 million will go to a water supply project in Ouahigouya, Burkina Faso.