IslamicFinance.de

Pakistan's Pak Qatar Family Takaful Limited (PQFTL) has signed a BancaTakaful agreement with JS Bank Limited. This agreement marks the first direct arrangement between Pak-Qatar Family Takaful and any Bank for Banca Takaful. The signing ceremony was held at JS Bank’s head office in the presence of senior officials from both partners, including Muhammad Menhas, Deputy CEO and Country Sales Head, Kamran Rashid, Head of BancaTakaful and ADC and S Adnan Hasan, Head of Marketing and Corporate Communication from Pak-Qatar Family Takaful Ltd. JS Bank was represented at the session by Khalid Imran, President and CEO, Kamran Jafar, Group Head - Corporate and Retail Banking Group, and Babbar Wajid, Head of Product Development & Business Management.

The Islamic International Rating Agency (IIRA) has reaffirmed a national scale rating of A+/A-1(sr) (A plus/A-One) to Bank AlJazira ( BAJ), incorporated in the Kingdom of Saudi Arabia. IIRA has also reaffirmed the bank's international scale ratings at A-/A-2 (A Minus/A-Two). Outlook on the ratings is 'Stable'. BAJ has posted continued business growth over the years. Moreover, capital adequacy ratio (CAR) has remained consistently above 15% over the last 5 years, sustaining the increased business levels. BAJ 's fiduciary score has been assessed in the range of '71-75', reflecting adequate fiduciary standards. The overall governance framework and practices are largely at par with international best practices.

There is a growing role for Japan in the development of the Islamic finance market, according to RAM Ratings. RAM said tax reforms were introduced in 2011 to level the playing field for the issuance of J-Sukuk and conventional bonds for tax purposes, and amendments had also been made to Japanese Securitisation Law to facilitate the issuance of J-Sukuk. While there has yet to be any issuance of J-Sukuk in the Japanese market, BTMU Malaysia Bhd – a wholly-owned subsidiary of Bank of Tokyo-Mitsubishi UFJ – has taken the first important step by debuting a US$500mil Sukuk programme in Malaysia in September.

The Malaysian government plans to roll out a new sharia-compliant investment platform next year. The government is backing the Investment Account Platform (IAP) with an initial start-up fund of 150 million ringgit ($45 million), intending that the IAP will serve as a central marketplace to finance small and medium-sized businesses. Under the scheme, announced as part of the 2015 budget, Islamic banks would vet businesses seeking funds, provide a secondary market for investors and in some cases underwrite the equity transactions. With elements of crowd funding and microfinancing, the IAP is expected to raise the profile of Islamic banks as investment houses.

Global Islamic bond sales, which had the busiest first three quarters on record, are mired in what’s set to be the worst end to a year since 2008. Borrowers have raised $1.9 billion in the fourth quarter so far, 73 percent less than in the same period a year ago. Issuers have also sold the fewest number of securities in six years. During the first nine months, the U.K., Luxembourg, South Africa and Hong Kong were among debut issuers of Islamic bonds. Some borrowers probably accelerated sales on concern borrowing costs may rise as the Federal Reserve ended its bond buying program. Sales this quarter may have slowed after crude prices declined 14 percent.

Malaysia, which is the second largest takaful market in terms of gross takaful contribution, is forecasted to hit US$3.024 billion (RM10.1 billion) in 2014 from US$2.436 billion in 2013. Bank Negara's target is to achieve a penetration rate of takaful of 75% by 2020, from currently 15%. Meanwhile, the local takaful industry is expected to see increased merger and acquisition activities between now and the end of next year, with the introduction of the Islamic Financial Services Act (IFSA). Malaysia's takaful industry achieved compounded annual growth rate of 24% over the last five years. Industry estimates indicate that given a conducive economic climate and its young demographics, Malaysia's takaful industry may be able to continue its double-digit growth path.

As oil prices plunge to four year-lows, the big news in the Gulf's debt market is that it is outperforming most of the rest of the world. Although the Gulf's oil exporters will suffer from low oil prices, Gulf bond prices have mostly been firm since June, for two reasons. One is that most investors and economists think the big Gulf Arab economies are not seriously under threat; they have amassed huge financial reserves. Also, Gulf funds and investment institutions have large amounts of free cash - the result of the region's economic boom - which they are happy to use to buy local bonds whenever foreign investors are tempted to sell.

One of the major reasons why Saudi Aramco's investment wing Wa'ed became a partner in PayTabs was because PayTabs has the ability to build entrepreneurs in Saudi Arabia. PayTabs can help build businesses and make entrepreneurs by tackling one of the major problems people face when they start an online business; collecting payments online. PayTabs is a payment gateway with its instant online invoicing system PayPage and ready to integrate eCommerce APIs/Plugins. PayPage can be used even without a website. With additional features like Express CheckOut, PayTabs has introduced some features enabling the customer to pay without leaving the merchant's website.

Bank Asya's net loss in the third quarter was due to higher loan provisions as it sought to increase its asset quality, and the Islamic lender's operations are continuing "healthily," the Turkish bank said in a statement on Tuesday. Bank Asya fell to a 301 million lira ($133 million) net loss in the third quarter from a 60 million lira profit a year earlier as its assets declined sharply, it said earlier in a stock exchange filing. The bank said its capital adequacy ratio stood at 18.32 percent.

CIMB Islamic Bank today signed a memorandum of understanding (MoU) with the Global University of Islamic Finance (INCEIF) to build a collaborative framework towards establishing a research centre for Islamic banking studies. CIMB Islamic Bank chief executive officer Badlisyah Abdul Ghani said the bank had allocated RM1.5 million as sponsorship over the three-year collaboration period. He said the MoU also aims to enhance and strengthen Malaysia's position as a globally recognised marketplace for Islamic banking and Islamic finance. INCEIF is the only institute in the world that focuses solely on Islamic finance education and research.

The Islamic Financial Services Board (IFSB) has issued its Second Working Paper on the Evaluation of Core Principles Relevant to Islamic Finance Regulation. The Working Paper is issued in parallel to the Exposure Draft (ED-17) of the Standard on Core Principles for Islamic Finance Regulation (Banking Segment), and provides the background and wider context for the Standard that is under preparation by an IFSB Working Group. The Working Paper (WP) assesses in full the Core Principles issued by the Basel Committee for Banking Supervision (BCBS), the International Organization for Securities Commissions (IOSCO), as well as those issued by the International Association of Insurance Supervisors (IAIS).

Hamdan Bin Mohammed Smart University (HBMSU) and Paris Dauphine University (UPD) have entered into a landmark agreement to extend cooperation in Islamic Finance education and training. Both parties will work closely to design programs and initiatives in Islamic Finance tailored for the GCC and MENA regions. They will also jointly develop curricula that will give full credit for courses taken in either of the institutions.

Conference program of the upcoming AAOIFI event.

A year after the emirate set out plans to be the Islamic economic hub, it's seven months behind schedule in setting up a centralised Sharia body that would help spur the emirate's sukuk market. Dubai is still deliberating with the federal government to establish the board, according to Abdulla Mohammad Al Awar, chief executive officer of the Dubai Islamic Economy Development Centre (DIEDC). While Islamic financial assets are set to almost double to $3.4 trillion by 2018, regulations in the industry are underdeveloped. Malaysia is one of the first countries to set up a Sharia authority as part of its central bank. The UAE Federal National Council, a half-elected advisory council with some parliamentary powers, plans to push for a central Sharia board.

Alizz islamic bank has begun its local community engagement in Dakhliyah governorate with generous support towards Al Noor Association in Burkat al Mooz. Salaam bin Said al Shaksy, chief executive officer of alizz islamic bank and other senior executives from the bank planned a surprise visit to the association after the successful launch of alizz islamic bank’s official launch of Nizwa Branch in Firq. The association serves the interest of blind and visually impaired in social, economic, welfare, education, health, training, placement and teaching of brail. The centre in Burkat al Mooz represents interests of the blind covering the Dakhliyah region.

The Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has issued two new sharia standards, revised three others and said it will review at least five more in coming months. The move appears to signal a more proactive approach by AAOIFI, which has acted only gradually to address some of the industry's big issues and controversies in recent years. AAOIFI may now be picking up the pace after it appointed a new secretary-general in September, Saudi Arabian national Hamed Hassan Merah. AAOIFI issued a standard for arboun (down payments) and another on conditional termination of contracts. Moreover, the body has also revised standards covering the conversion of conventional banks into Islamic ones, debt transfers (hawala) and murabaha.

Pakistan's Finance Minister Ishaq Dar has said that foreign currency reserves will be increased up to $15 billion till December 31 this year through selling Sukuk bonds worth $500 million as IMF has also nodded to give $1.1 billion installment. Ishaq said the government would first hold roadshows and then float sukuk in the Middle East and Europe between November 21 and 24. He claimed to achieve $15 billion target till the end of this year. He said that the government would increase the size of Sukuk bond from $500 million to $1 billion after observing the investors' interest. Pakistan's foreign currency reserves stood at $13.443 billion on October 31, 2014, including $8.618 billion reserves held by the State Bank of Pakistan and $4.825 billion reserves held by the commercial banks.

Last week, the Chairman of the IDB Group, Dr. Ahmad Mohamed Ali, signed a US$ 50 million agreement with Dr. Mohammed Saeed Al-Sa’adi, Yemeni Minister of Planning and International Cooperation and IDB Governor for Yemen. The agreement aims to provide economic empowerment to the needy Yemeni youth and families by contributing to capacity building and providing them with production inputs for job creation in various fields such as construction of rural roads, coffee cultivation etc. The financing arrangement is expected to pay great attention to employment of less-privileged females as well as the youth who will be employed in these projects. The agreement comes within the framework of the US$ 250 million Youth Employment Support (YES) Program launched by the IDB in 2011.

Turkey's Bank Asya on Tuesday posted a third-quarter net loss on loan provisions and a shrinking balance sheet but said its operations were healthy despite political turmoil that has surrounded it for much of the year. The Islamic lender fell to a 301 million lira ($133 million) net loss from a 60 million lira profit a year earlier. Assets of 16.5 billion lira at the end of the third quarter were down 40 percent from the end of 2013, while deposits almost halved to 10.07 billion over the same period. The bank continued its operations with a capital adequacy ratio of 18.32 percent, despite a 9-month loss due to higher loan provisions as part of efforts to increase asset quality, Chief Executive Ahmet Beyaz said.

Al Hilal Bank recently received Kairat Kelimbetov, the Governor of the National Bank of Kazakhstan at its headquarters in Abu Dhabi. Both parties discussed the key role of Al Hilal Bank as the first and only Islamic bank operating in Kazakhstan. Mohamed Jamil Berro, Al Hilal Bank’s Group CEO, personally welcomed Governor Kelimbetov and briefed the guest on the Islamic products offered by Al Hilal. Kelimbetov noted the role of Al Hilal Bank’s activities in the development of Islamic finance in Kazakhstan, and added that the National Bank of Kazakhstan will continue to support development of Islamic finance in Kazakhstan.