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Standard & Poor's Ratings Services has lowered its long-term counterparty credit rating on Jordan Islamic Bank (JIB) to 'BB-' from 'BB' and affirmed the short-term counterparty credit rating at 'B'; the outlook is negative. The rating action follows S&P's downgrade of Jordan in May 2012. As per their methodology, the ratings on JIB are capped at the level of Jordan's long-term foreign currency sovereign credit rating, because it is the bank’s country of domicile. This mainly reflects JIB’s material exposure to domestic sovereign risk, which indirectly accounts for a significant portion of JIB's earning assets and equity. JIB is considered to be "moderately strategic" to its parent group, Bahrain-based Al Baraka Banking Group. However, JIB does not benefit from any notches of parent support because of the constraint imposed by the foreign currency sovereign ratings.

The Islamic Development Bank (IDB) will organise the first investment forum in Tunisia to be held as part of the Deauville co-operation.The event will take place in June 2013. Minister of Development and International Co-operation Lamine Doghri commended the offer presented by the IDB concerning the completion of the elaboration of a strategic partnership document with Tunisia (2013/2015).

This week saw a big surge of MENA bond and sukuk activity, with four dollar deals coming to market and two other issuers lining up roadshows. The wave breaks the recent regional lull and points to a further flurry in the coming weeks as borrowers try to seize a window before the Middle East summer kicks in.

Crowell & Moring's Cairo office has advised the Abu Dhabi Islamic Bank-Egypt in connection with an Islamic finance facility extended to Maridive and Oil Services SAE. Abu Dhabi Islamic Bank- Egypt was the Initial Mandated Lead Arranger and the global coordinator in the deal, coordinating the financing with several Banks. The deal is the first Islamic Ijara structure syndication to take place in the Egyptian market, valued at $150 million. As legal counsel to the initial mandated lead arranger, Crowell & Moring advised the facility providers (the banks) on the structuring and documentation of the transaction.

A new bank is set to be inaugurated in the Gaza Strip next week, although it has not yet received the necessary licence from the Ramallah-based Palestinian Monetary Authority (PMA). The Al-Intaj bank has a capital of $20m and a board of directors chaired by Kuwaiti businessman and member of the International Islamic Fiqh Academy, Dr Riyadh Al-Khulaifi. The bank... will be headquartered in Gaza City and have branches in other parts of Gaza Strip in the coming years. 50% of its capital will be channelled to production-oriented activities, while 40% will be allocated to the traditional transactions. The remaining 10% will be set aside to the 'murabahat' (Shari'ah-compliant transactions), the lender's deputy board chairman Rushdi Wadi said.

The opposition Syrian National Coalition has received a last-minute invitation to Wednesday’s Friends of Syria meeting in Amman, which acting chief George Sabra will attend. The meeting is expected to focus on efforts spearheaded by the United States and Russia to organise a peace conference in Geneva next month. In the same time, Islamic Development Bank has temporarily suspended Syria’s membership, according to IDB President Ahmad Mohamed Ali Al Madani. Mr. Madani said the decision was taken by the bank’s Board of Governors, citing a Syria resolution by the Organisation of Islamic Cooperation that was discussed at the board’s recent meeting. He added the IDB was set to give Syrian refugees any kind of help, but stressed its humanitarian funds were strictly limited.

AlHuda Center of Islamic banking and economics (CIBE) Initiated a Islamic Microfinance research study for Yemen Microfinance Network (YMN) in Yemen. This study will be conducted in Yemen's capital Sana'a including Taiz, Adan and Almoukla, so that the Islamic Microfinance products can be examined broadly and further Islamic Microfinance products can be developed with the compatibility of the existing structure. The share of Islamic Microfinance in Yemen's Microfinance sector is approximately 90% and the remaining 10% are also converting their portfolio into Islamic Microfinance. The increased outreach of the Microfinance sector is expected to help eradicate poverty.

The Department of the Treasury has lifted sanctions against the Elaf Islamic Bank in Iraq following the bank’s significant and demonstrated change in behavior. On July 31, 2012 the Treasury Department imposed sanctions under the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA), against Elaf Islamic Bank for knowingly facilitating significant transactions and providing significant financial services for the U.S. and EU-designated Export Development Bank of Iran (EDBI). Following the CISADA finding, Elaf immediately began an intensive course of action to stop the conduct that led to the CISADA sanction. Now, U.S. financial institutions are once again permitted to open or maintain correspondent accounts or payable-through accounts in the United States for Elaf Islamic Bank.

Arab Bank recently issued its annual sustainability report for the third consecutive year; the report is a summary of the bank's performance and achievements on the social, economic and environmental levels for the year 2012. Arab Bank is the first Jordan based bank to issue a sustainability report at international standards. It focuses in detail on the internal programs adopted by the Bank, such as the integration of certain environmental and social criteria, in addition to the implementation of a number of initiatives that aim to reduce greenhouse gas emissions and also increase internal awareness levels. Also covered in the report are the Bank's social contributions, in addition to the participation of the Bank's employees in volunteering activities and capacity building programs for non-profit organizations.

In an effort to foster hope and stability among Yemen’s por, Al-Amal Microfinance Bank is working to introduce a range of Sharia-compliant microfinance products aimed at reaching the unbanked. However, demand for Islamic financial products can far exceed the capacity of existing microfinance institutions to provide them. That’s why institutions like Al-Amal are often forced to limit their suite of Sharia-compliant products to one or more products that are relatively simple to administer and offer a clear return. In Al-Amal’s case, the signature Islamic product is murabaha. The mark-up ranges between 14.5% (for purchases more than $5,000) and 24% (for purchases below $5,000). Further development of Al-Amal’s murabaha offering and the introduction of other Sharia-compliant products, will hinge on the bank’s ability to reach Yemen’s rural poor, who represent some 80 percent of the country’s population

The United Nations Development Programme (UNDP) and the Islamic Trade Finance Corporation (ITFC) of the Islamic Development Bank agreed today to cooperate in the Arab States region on fighting poverty and creating jobs. The first area of joint work is an initiative to boost employment through trade reforms. The newly-signed Aid for Trade Initiative for Arab States will spearhead trade reforms in Arab countries in the Middle East and North Africa with the aim of bringing about pro-poor economic growth. The Aid for Trade Initiative for Arab States was endorsed by the 3rd Arab Economic and Social Development Summit, held in January 2013. It is funded by the International Islamic Trade Finance Corporation -- a unit of the Islamic Development Bank Group -- as well as the Governments of Kuwait, Saudi Arabia and Sweden and UNDP.

A group of Egyptian civil society organizations have submitted their recommendations to the World Bank as input to Phase 1 of the Social and Environmental Safeguard policy review process. The document was endorsed by many of the same organizations that pushed the Bank to hold a civil society consultation in Cairo since such a meeting had not originally been scheduled to take place. In the submission, the groups emphasized the need for transparency, shared responsibility and accountability between the Bank and borrowing governments, and the need for the Bank to align its standards with those of international standards and conventions, while remembering that safeguards should contribute to the Bank’s overarching goal of reducing poverty.

As they shift towards more market-based economies, Arab companies can no longer afford to neglect demands for greater accountability and transparency in the boardroom. Ten years ago companies had their own practices and policies addressing accountability and social responsibility but there were no regulatory precepts and little attention paid to details of transparency or conflict of interest – issues crucial to the running of a modern business. Today 14 of the 17 MENA economies have a corporate code of some description and “hawkamah” (the Arabic word for governance) is becoming more than just a catchphrase. But while some countries are making great strides improving accountability and transparency, in many of the countries that need it most - those experiencing political, social and economic transition with an urgent need for foreign investment and jobs - the process has faltered.

A joint venture deal between Middle East’s EFG-Hermes and Qatar’s QInvest has failed because the Egyptian Financial Supervisory Authority did not approve it in time. Under the terms of the deal, QInvest would have injected $250m into a joint venture banking business, and owned 60 per cent. Businessmen in Egypt have complained that, since the 2011 revolution officials have shied away from making big decisions because of fears over possible allegations of corruption. Analysts had also speculated that the failure of the regulator to approve the deal might be linked to the trial of the two chief executives of EFG-Hermes, alongside the two sons of the former president, over profits from the 2007 sale of El Watany Bank of Egypt. However, EFG-Hermes has said in the past that it did not believe the case had anything to do with the delay in approving the joint venture.

Conventional insurers are proving to be tough competitors for major takaful operators given their big capacity, according to Nassib Barbir, deputy director of Takaful Re Ltd. Takaful operators must keep to Islamic roots and invest in research and development to create true takaful products instead of competing with conventional insurers, Ghassan Marrouche, CEO of Takaful Emarat – Insurance (P.S.C), said. Strong and credible retakaful operators are needed to assist the growth and expansion of takaful. Consistent Shariah compliance is a must for the industry to grow and mature.

L’installation au Maroc de la Faisal Islamic Bank appartenant au prince saoudien Mohammed Al Faisal Al Saoud n’est qu’une question de temps. En effet, la banque islamique n’attend que l’approbation du projet de loi sur la finance islamique qui devrait entrer en vigueur début 2014. Ce dernier ainsi que le ministre du Budget, Driss El Azami, se sont entretenus pour la deuxième fois avec les responsables de la banque sur le futur partenariat.

Morocco expects to sign a $ 2.4 billion loan deal next month with the Islamic Development Bank (IDB). The North African country has agreed a package with the IDB under which it will receive $600 million each year from 2013 to 2016. A small part of that sum will be a donation rather than a loan. A formal signing will be held in May. Moreover, Morocco is expected to raise around $ 1.5 billion this year by selling its first sukuk, with a final decision on borrowing to be taken by July. Morocco’s government has said it will limit its public debt to 60 percent of GDP despite the rising budget deficit.

Qatar-based bank Masraf Al Rayan is in the final stages of due diligence to acquire a stake in a Libyan lender. According to the group chief executive Adel Mustafawi, after preparing the required studies, a memorandum of understanding will be signed before proceeding to secure the required approvals from the authorities in both Qatar and Libya. Shareholders of Rayan had approved in February its plan to buy a stake in a Libyan lender, while also voting to give the board of directors control over a QR1bn ($275mn) war chest to make acquisitions over the next two years. Moreover, the bank has also made significant progress in fulfilling the requirements of acquiring a stake in Islamic Bank of Britain.

The Islamic Development Bank plans to invest US$3 billion into the Egyptian market over the next five years as it sees promise and many long-term investment opportunities there. The funds would come in the form of financing and investment. Over the past few years the bank has made investments in Egypt worth US$3 billion, of which US$1 billion came during the last year alone. The Islamic Bank increased its investments in Egypt after the 25 January revolution, at a time when several international institutions had doubts about investing in the nation. The bank’s main objective is to support development.

More than 5,000 organizations and over 60,000 participants took part in this year’s World Social Fórum. The four day event was held at the University of Tunis on the outskirts of the Tunisian capital. Among the 1000 workshops offered, popular themes were climate change, women, migration, globalization and economic justice. However, workshops on issues related to sub-Sahara Africa, The U.N., and the wars in Afghanistan and Iraq were absent. On the third day, two groups, one supporting President Assad, the other one supporting the opposition were confronting each other. A scuffle ensued and Forum organizers had to intervene. Some organizers proposed that the next Forum, to be held in two years, also take place in Tunisia to build on the contacts and structures built during this year's forum.