The president of the Islamic Development Bank (IDB) Group has urged the government of Ghana to join the Organization of the Islamic Cooperation (OIC) countries for the country to benefit from a number of development assistance being offered by the Group. Ghana and Liberia are the only two countries in West Africa who are still not members of the OIC. By becoming a member country, Ghana will benefit immensely from development assistance especially in the areas of infrastructure development. Although not a member country, the IDB has supported Ghana with more than US$5.5 million in grants for the completion of more than 16 different projects across the country.
Bahrain's Gulf Finance House will study the continuation of its equity listings in London and Kuwait. The investment firm is listed in four places, a potentially costly arrangement: Dubai Financial Market, where its shares are often the market's most heavily traded, Bahrain, Kuwait, and London in the form of global depository receipts. Moreover, shareholders approved reducing the firm's capital to $598 million from $1.49 billion to eliminate accumulated losses, and the company will change its name to GFH Financial Group. GFH did not give details of what its review would involve or say when it might be completed.
Lloyd's is close to accepting its first Shariah-compliant risk after giving XL's Syndicate 1209 approval to write equine cover through Islamic insurance managing general agent Cobalt. XL is a leader in the equine market and it is understood the syndicate approached Cobalt to adapt the product into something suitable for Islamic buyers. The majority of the equine risks in question are thought to originate from Kentucky - a world leader in breeding show horses.
The Thomson Reuters Global Sukuk Index is at 118.53448 points, up from 117.52672 at the end of last month and 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 117.5576 against 116.23259 at end-March and 113.69014 at end-2014. Sukuk in the pipeline include: Malaysia's Axis REIT said in early April that it had expanded its sukuk programme to 3.0 billion ringgit ($818 million) from 300 million ringgit, and extended the length to perpetual from 15 years. Kazakhstan's Finance Ministry is expected soon to propose a draft law allowing its first sovereign sukuk issue, which will probably take place early next year.
While awareness of CSR has improved in Lebanon, it has not at all become a trend, it’s still in its infancy. Most companies think they are doing CSR but they are doing philanthropy. Corporate social responsibility involves a business going beyond its fundamental profit-making motive to comprehensively and sustainably address social, ethical and environmental considerations in its workplace and the communities it affects. While CSR Lebanon has established itself as a leading authority on the topic and is the only consultancy of its kind in Lebanon, its clients remain located in the Gulf. Moreover, businesses in Lebanon tend to think short-term rather than investing in a multiyear strategy.
Representatives from G20 and OECD countries will meet in Istanbul on Friday to discuss how companies can avoid too much risk. The G20/OECD Corporate Governance Forum will consider sound corporate organization, safer financial markets, and well-regulated financial systems in emerging markets. The Forum will also address issues of systemic importance to sustainable private sector growth, including the institutionalisation of growth companies and capital market development in emerging market economies. Turkish Deputy Prime Minister Ali Babacan, a key figure responsible for the economy is scheduled to make the opening speech at the event.
The World Social Forum continues to be the pivotal global venue for left and progressive forces to advance struggles and create internationalist alliances to make another world possible. Tunisia, which provided the spark for the Arab Spring, hosted its second WSF from 24-28 March in its capital Tunis. Tunisia has unfortunately seen an increment in terrorist attacks and, according to estimates, is the largest source of recruits to the Islamic State (IS). Tunisia’s rate of unemployment is at its highest since the 2011 revolution with a huge percentage being educated youth.
The number of people living in extreme poverty has been cut by more than half in less than three decades, President of the World Bank Group Jim Yong Kim has said. He gave a speech on ‘Ending Extreme Poverty by 2030: The Final Push’ at the Center for Strategic and International Studies, Washington, D.C., United States. Despite the massive global migration to urban areas, 70 percent of the world’s extreme poor still live in rural villages, he added. They are mostly farmers or work in informal jobs – providing services to rural populations. The WB's experience in China shows that, in poorer economies, growth in agriculture is four times more powerful in lifting people out of poverty than growth in manufacturing and services.
An interview on Islamic Finance by Algeria International Radio took place on Monday 6 April and is now available on Youtube. The interview provides a short introduction to Islamic finance for those who have not come across it before. Mohammed Amin was asked several questions about Islamic finance, including: What definition would you give to Islamic Finance? What are the benefits of Islamic finance? Which countries apply this financial system? Has there been a historical evolution of Islamic Finance? How do you describe today’s Islamic Finance? What would be the challenges for Islamic finance?
Former central bank governor Durmu? Y?lmaz, who is running for Parliament in the June 7 general election on the Nationalist Movement Party (MHP) ticket, has criticized the Justice and Development Party (AK Party) government over its efforts to sink Bank Asya, claiming that the bank is strong and that it will be the nation that suffers most if the bank is destroyed. Y?lmaz said the public authority would have the duty of taking necessary action if Bank Asya had been involved in any wrongdoing; however, he said no clear or concrete mistakes, allegedly committed by the bank, have been revealed so far.
Representatives from the Interfaith Center on Corporate Responsibility (ICCR) and Azzad Asset Management have announced that Azzad will join ICCR as its newest member—the first Islamic firm to be affiliated with the group. As a member organization focused on corporate social responsibility and environmental advocacy, ICCR leverages the influence of its shareowner members to enact change. The two organizations expressed optimism about the opportunities this collaboration affords. Azzad representatives reportedly hope to bring a fresh, Islamically inspired perspective to the many corporate and social issues confronted by ICCR.
Malaysia Building Society Bhd (MBSB) has not initiated any new merger discussions with any organisation after the deal with CIMB Group Holdings Bhd and RHB Capital Bhd fell through. President and chief executive officer Ahmad Zaini Othman reaffirmed that MBSB has not received the green light from its shareholders to talk to any financial institution on a potential merger and acquisition. Meanwhile, Ahmad Zaini signed a Memorandum of Understanding (MoU) on behalf of MBSB with Credit and Debt Management Agency (AKPK). The MoU will enable MBSB to participate in AKPK’s debt management programme, which will see the latter extending its services.
The Islamic Financial Services Board (IFSB) successfully organised a 'Seminar on Enhancing Financial Inclusion through Islamic Finance' on 31 March 2015 in Jakarta, Indonesia. This Seminar is organised in conjunction with the IFSB Annual Meetings and Side Events 2015. The one-day Seminar aimed to explore the role of Islamic finance in supporting financial inclusion, the building blocks necessary for the development and promotion of access to finance to the uncovered population and key success factors and challenges in promoting financial inclusion for greater shared prosperity, financial stability and economic growth. The Seminar was followed by the IFSB's 8th Public Lecture on Financial Policy and Stability on 1 April 2015.
“Ending Extreme Poverty: A Moral and Spiritual Imperative”
Over 30 leaders from major world religions and heads of global faith-based organizations today launched a clarion call to action to end extreme poverty by 2030, a goal shared by the World Bank Group.
Ending Extreme Poverty: A Moral and Spiritual Imperative notes that remarkable progress has been made in reducing extreme poverty. Over 25 years the world has gone from nearly 2 billion people to fewer than 1 billion living in extreme poverty. Now, for the first time in human history there exists both the capacity and moral responsibility to ensure that no one has to live in extreme poverty’s grip
[---]
Bahrain Kuwait Insurance Co has raised its stake in local peer Takaful International to 40.9 percent, a move that could herald the start of wider consolidation in the sector. Last week, BKIC had taken an initial 10.8 percent stake in Takaful International, the largest Islamic insurance firm in a market. BKIC bought 18.8 million shares of Takaful International valued at 1.88 million dinars ($5 million) from three Bahraini and Kuwaiti institutions. BKIC now becomes the largest shareholder in Takaful International, displacing Bahrain Islamic Bank which has a stake of 22.75 percent.Takaful International swung to a loss of 1.7 million dinars in 2014 from a profit of 300,000 dinars a year earlier.
Kazakhstan's parliament approved new Islamic finance laws yesterday, moving a step closer to launching the oil-producing nation's first sovereign Islamic bond - possibly early next year. The lower house of the legislature passed a bill introducing new definitions, such as Islamic insurance, Islamic leasing and "murabaha", an acceptable form of credit sale under Sharia. The Finance Ministry is expected to propose a new draft law on sukuk very soon. Kazakhstan's first Islamic bond was a 240 million Malaysian ringgit ($73m), five-year sukuk issued by state-owned Development Bank of Kazakhstan in 2012.
American banker Glenn Stewart was running a financial firm for the Gosaibi family, but in 2009, after the fall of the Lehman Brothers, creditors demanded the firm repay its loans. What followed was the biggest corporate default on record in the Middle East, lawsuits against Stewart in 10 different countries, and Stewart's eventual escape from Bahrain with the help of an ex-CIA operative. Stewart and his Gosabi family partner, billionaire Maan al-Sanea, are accused of stealing up to $10 billion and driving the bank they established to collapse. Stewart, who says he was essentially "the chief house slave" in the Gosaibi family, claims he was "tricked, big time".
Kuwait investment firm Aayan Leasing and Investment has asked creditors to reschedule its remaining debts worth 176 million dinars ($587 million), chairman Fahd Ali al-Ghanim said. As part of the restructuring plan, Aayan planned to liquidate some of its portfolio of listed Kuwaiti companies, Ghanim said. However, many of the shares are still trading below the value at which they were bought, Ghanim said, adding this helped to explain why Aayan was seeking a further debt rescheduling. Despite rebounding slightly in 2013 and 2014, Kuwait's stock market is still trading 60 percent lower than its June 2008 peak.
Russia is trying to increase its cooperation with the UAE, especially in Islamic finance, as the country is seeking to strengthen its trade ties with the UAE and other Gulf countries, according to Igor Egorov, the Chairman of the Russian Business Council. Egorov said the country has brought in new regulations to attract Islamic financial institutions from the Middle East and Asia as demand for financing grows in Russia. He added that the trade figures between Russia and the UAE stand at $2 billion and are set to grow in the coming days. Moreover, the Eurasian Economic Union provides opportunity for UAE companies to invest.
Bahrain-based Waqf Fund hosted its eighth Shari'a Scholar session with Islamic finance scholar Professor Dr. Akram Laldin from Malaysia. Dr. Laldin serves on several Shari'a Boards including Bank Negara Malaysia's Shari'a Advisory Council, AAOIFI and a number of Islamic financial institutions in Malaysia and globally. The topic under discussion was "The Challenges of Achieving Shari'a Compliance in Islamic Finance". Dr. Laldin made a presentation on the key challenges in Shari'a compliance and narrated a number of real life cases from his experience as a Shari'a Board member. This was followed by an interactive session during which the participants asked questions and gave their comments.