IslamicFinance.de

The IREF Summit 2014 will be taking place on the 16th-17th December 2014 in London. The theme 'Real Estate - The Asset Class of 2014 & Beyond: Sustainability & Innovation in an Ever-Changing Global Real Estate Market', is gathering speakers from the UK, Middle East & Asia. The session themes are focused and aimed at providing a platform to discourse the pertinent current themes and trends marking the sector, with a particular emphasis on the Islamic real estate finance market segment. On the evening of the first day of the IREF Summit, ICG will once again host the 2014 IREF ME Gala Dinner Awards Ceremony. For further information on the Summit, how to nominate and attend the Gala Dinner Awards Ceremony, please visit www.irefsummit.co.uk or contact info@icg-events.com.

Turkish and international bankers convened at the IFN Turkey Forum 2014 in Istanbul on Thursday to discuss Turkey's growing Islamic banking sector. Professionals from Turkey, Malaysia, Qatar and the United Arab Emirates discussed a number of key issues pertaining to various markets, trends and strategies. The Islamic banking sector is booming in Turkey, according to Central Bank of Turkey Deputy Governor Murat Cetinkaya, who said that Islamic banks have doubled their market share in the past 10 years. According to Cetinkaya, Turkey's regulatory framework, in conjunction with the recent macroeconomic stability, has paved the way for the growth of the sector.

The chairman of Istanbul's Stock Exchange, ?brahim Turhan, has said that public offerings of debt instruments is increasing. He made the comments in response to questions from press members after the 11th Synergy Meeting held in Bursa by the Balkan and Rumelia Industry and Business Association (BALKANS?AD). He also announced for the first time that the Islamic Development Bank, of which the Turkish Treasury is also a shareholder, will be quoting non-interest bearing notes (sukuk) of $10 billion at Istanbul's Stock Exchange Market. He added that soon a major insurance company will be offered to the public, followed by an important bank due for a capital increase.

Islamic Bank of Britain (IBB) has announced the promotion of Matthew Glover to the newly created positon of Head of IT & Change. Mr Glover's remit is to manage the Bank's transformation programme as it enters a period of expansion. His is the third senior appointment this year, including Keith Leach as Chief Commercial Office and the confirmation of Sultan Choudhury as Chief Executive Officer. All three appointments have followed the Bank's acquisition, in early 2014, by Masraf Al Rayan (QSC). Since then, IBB's new parent has invested £100milion of capital to support the Bank's ambitious growth targets. IBB also recently announced that subject to formal shareholder approval, it will be changing its name from Islamic Bank of Britain to Al Rayan Bank, in December 2015.

A series of German-funded studies and pilot projects aims to bridge the gap between Islamic finance and microcredit, to the benefit of communities in developing countries. Expanding the appeal of Islamic microfinance is crucial for an estimated 650 million Muslims who live on less than $2 a day, according to the Washington-based Consultative Group to Assist the Poor (CGAP). The German government's international development agency GIZ is helping to develop regulations, education and training for Islamic microfinance in developing countries. A study of Islamic microfinance products by GIZ and CGAP aims to identify ways to lower costs, while a separate GIZ study is exploring demand factors.

GFH Capital has signed an agreement to sell a $25 million prime property in one of London's most prestigious postcodes. The investment firm said it has sold the Queen’s Gate Gardens property that it had acquired last year. The property is a Grade II listed building located in the prime Kensington area of London overlooking the gardens. According to the terms of the agreement, the buyer has paid an initial deposit with a target to complete the transaction in six weeks, subject to receiving relevant approvals. GFH Capital said investors in the deal can expect to make a return that can reach 21 percent return per annum. The deal is expected to positively reflect in the Q4 financial results of GFH.

Turkish state-run lender Halkbank has decided to establish an Islamic finance unit, in line with a government effort to develop the sector and tap a pool of investors in the Gulf and southeast Asia. The bank said its management would seek regulatory approval for the Islamic unit, known locally as a participation bank, but gave no further details on the plans. The Halkbank board has mandated the general management for the establishment of a participation bank, and to carry out the required processes for legal and administrative permissions, it said in a stock exchange filing. Since 2012, the Turkish government has pushed the development of Islamic finance by regulatory moves and issuing sukuk.

The scope of Britain's Islamic finance market is widening with several initiatives from the government and private sector, although the country is about to lose European Islamic Investment Bank, one of its six full-fledged Islamic banks. Last week a government official said the central bank would look into developing a liquidity management tool for use by Islamic banks, while Britain's export credit agency expects to guarantee sukuk for the first time next year, an issue by a customer of European plane maker Airbus. Taken together, the new official initiatives seem likely to create a more benign environment for Islamic finance, allowing banks to operate more flexibly and efficiently, and therefore more cheaply.

Luxembourg is poised to test demand for Islamic bonds as the issuer of the lowest-yielding sovereign sukuk on record plans to become a regular borrower. The country has been “encouraged” by investor feedback and the market’s readiness and will begin working on its next sukuk, Finance Minister Pierre Gramegna said. Luxembourg sold 200 million euros ($254 million) of five-year Islamic bonds in September priced two basis points below midswaps. That compared with 10 basis points above the swaps for notes of similarly rated Islamic Development Bank. However, Luxembourg’s sukuk isn’t for everyone, least of all those looking for yields, an expert said. The reason why it’s so tight is because there are still Islamic investors that are looking for very conservative assets.

Mohammed Amin is Chairman of the Conservative Muslim Forum. He says that one particularly successful UK micro-policy is the country’s approach to Islamic finance. Gordon Brown and Ed Balls deserve credit for promoting Islamic finance and changes to UK tax law to facilitate it. Sadly, their efforts eventually ran out of steam in 2008, due to the combined effects of the global financial crisis and excessively frequent changes in the ministerial responsibility for the subject. Promoting Islamic finance as the government has done is clearly in the best interests of the economy and therefore of all British citizens and taxpayers. However, it is also good politics, since it should increase the Conservative party’s appeal to Muslim voters.

Turkey’s government has moved to expand Islamic banking by inviting public banks into the sector. Earlier this month, the largest state-run bank, Ziraat, received approval to establish an Islamic unit with $300 million in capital. Ziraat has nine months to establish the new bank. But a key question remains unanswered: Where will the capital come from? If Ziraat’s interest-based earnings are considered illicit, how is it going to establish the capital of an interest-free bank? To resolve the conundrum, the Treasury is reportedly planning to provide the required capital although it also operates on the basis of interest. Meanwhile, the government has already submitted a bill to parliament to clear legal hurdles in Vakifbank and Halkbank’s path to Islamic banking.

The third Turk-Arab Youth Congress started on Oct. 24 and was hosted by the Istanbul Youth Assembly Foreign Affairs Commission at the Istanbul Congress Center to create a platform for Turkish and Arab youth to discuss a vision for the region's future. A team of well-educated youth from around the world gathered at the three-day program titled "How to Lead the Future." Several sessions were held on the first day of the congress, discussing different issues of the region. On the second and third day, workshops were held under the subsidiary bodies of the congress and they published a final declaration with the remarks of the participants.

Ahmet Beyaz, the chief executive of Turkey’s government-besieged Bank Asya, says his bank is the victim of a political campaign waged by Turkey’s powerful president Recep Tayyip Erdogan. Beyaz and his executive vice-president Feyzullah Egriboyun claim the repeated attacks on the bank clearly constitute a crime under Turkey’s strict banking legislation. The Turkish president has denied any orchestrated campaign against Bank Asya. He went on to say "this bank has already failed", without naming Bank Asya. Such claims are wrong, Beyaz says, insisting Bank Asya is among the three strongest banks in Turkey, boasting a capital adequacy ratio at about 20%. Bank Asya supporters argue that the Erdogan attacks on Bank Asya pose a systemic risk to the wider Turkish banking system.

Islamic Bank of Britain (IBB) plans to change its name to Al Rayan Bank PLC, subject to formal shareholder approval. The change will be completed in December 2014. The rebrand follows IBB's acquisition, earlier in the year, by Qatar-based Masraf Al Rayan (MAR). Rebranding activity will involve the introduction of a new Al Rayan Bank logo and brand identity. It will continue to operate as a UK regulated bank, and customers' deposits will remain protected by the Financial Services Compensation Scheme. With an increased focus on corporate and real estate finance, Al Rayan Bank will develop its presence in London. Its retail banking and operational head quarters will remain in Birmingham.

Dear Reader,

Please visit the following sites to see the latest updates in the Islamic finance job market:

http://www.islamicfinancejobs.com/

http://www.bayt.com/en/international/jobs/q/islamic-finance/

https://www.linkedin.com/jobs/search?keywords=Islamic&locationType=Y&ori...

http://www.naukrigulf.com/islamic-finance-jobs

https://www.gulftalent.com

http://www.gulfbankers.com/home/index

http://www.efinancialcareers.ch/search?keywords=islamic

http://www.isdbcareers.com

https://jobs.thelawyer.com/jobs/islamic-finance/

Best regards,

Michael Gassner

The Ziraat Bank has received regulatory approval from the banking watchdog (BDDK) to establish what would be the fifth Islamic lender in the country, a key part of the government's efforts to expand the sector. Ziraat will be allowed to set up a standalone Islamic unit with $300 million in capital, according to the regulator.

The Republic of Tunisia has sent banks request for proposals for a potential US dollar denominated sukuk transaction. The sovereign, rated Ba3/B/BB-, hopes to complete the debut Islamic bond by the end of the year and thereby becoming the fifth sovereign to issue a debut sukuk this year, after the UK, Sharjah, Hong Kong, South Africa and Luxembourg.

Competition is increasing among the world’s financial centers to grab a slice of Islamic finance, which is expanding beyond its traditional bases in southeast Asia and the Middle East. The focus is mostly on the booming market for sukuk (Islamic bonds). Luxembourg, Britain and Hong Kong are seeking to draw more issuance activity and have already made debut issues of sovereign sukuk this year. But Liechtenstein, is instead concentrating on wealth management through a coordinated effort by the public and private sectors.

According to a Turkish official Turkey has not taken specific decisions for this year to utilize sukuk market on an annual basis. Turkey sold its US$1.5bn debut 5.5-year sukuk in September 2012, and followed that up with a US$1.25bn five year note in October 2013.

A Brit, a Pol and a Brazilian have come together to form a unique Alternative Business Structure and specialise in Islamic finance. Kawa, Guimaraes & Associates Solicitors, based in London’s Canary Wharf, offers services in immigration, family and employment, together with a limited amount of personal injury and medical negligence. Senior partner Mehedi Rahim, said the firm specialised in finding commercial solutions compliant with Islamic principles.