IslamicFinance.de

Sukuk issuance in the first quarter of 2014 prompted relatively significant concern as issuance volumes showed no signs of rebounding from a weak 2013. However, the second quarter provided a boost heading into Ramadan with issuance sitting at $66.3 billion. Despite a decline in the number of sukuk issued from 383 to 330, issuance volume rose 14% compared to the same period last year as issuers boosted the size of their sukuk while also lengthening the average tenor. The issuance volume growth is significant but there is a greater need for more tradable instruments because there are no other sources in some of the largest markets.

Thomson Reuters in conjunction with Dubai Islamic Economy Development Centre (DIEDC) is pleased to welcome submissions for the Islamic Economy Award 2014. The Award recognises global and regional leadership within the following eight categories: 1) Islamic Finance 2) Food & Health 3) Media 4) Hospitality and Tourism 5) Waqf and Endowments 6) SME Development 7) Islamic Economy Knowledge Infrastructure 8) Islamic Arts. Additionally, the ‘Lifetime Achievement Award’ will recognise an outstanding business leader. Submissions for the awards will be accepted from now until 7 October, 2014. The award winners will be announced in the fourth quarter of 2014. To make your submissions, visit http://thomsonreuters.sgml1.co.uk/thomsonreuterslz/lz.aspx?p1=0501326S8&....

The autumn sukuk pipeline already looks likely to include the first Turkish corporate sukuk from Dogus Group, as well as sovereign issues from Hong Kong, Indonesia, Luxembourg, Pakistan, Sharjah, Tunisia and Turkey. September is typically seen as the earliest that borrowers can expect to find a receptive Gulf investor base. But this year there are good reasons for breaking with tradition, particularly for borrowers who are more novel than others. Ramadan will have finished by the end of July and those borrowers who are not largely dependent on the GCC can steal a lead on the pack. There is good sense in being ahead of the queue since markets can turn. A bad secondary performance by any one deal can quickly dampen appetite for those that follow. Moreover, the proximity of other borrowers can also force compromises.

Sharjah, the third-biggest sheikhdom in the United Arab Emirates, is getting bigger in Shariah finance. The emirate has reportedly approached banks about a debut sukuk sale. Moody’s Investors Service last week gave state-backed Sharjah Islamic Bank PJSC an A3 rating, citing its strong capital buffers. While Moody’s said that Sharjah’s economic growth this year is expected to be only 0.5 percent, the ratings company also pointed to the government’s low levels of debt and strong finances. Sharjah’s economy is well-diversified, with strong manufacturing and a more affordable cost of conducting business than in Dubai or Abu Dhabi.

The Board of Directors of Alizz Islamic Bank has announced the appointment of Salaam Said al Shaksy as the Chief Executive Officer of the bank. Al Shaksy comes with over 22 years’ experience in retail as well as wholesale banking. He previously held the position of CEO in several local and international banks and financial institutions such as National Bank of Oman, Dubai Bank and Dubai Islamic Investment Group. Currently, Al Shaksy is Chairman of Oman’s Investment Stabilization Fund. He is also a member of the Board of Directors; member of the Board of Executive Committee and Chairman of the Tender Committee of Al Rafd Fund (Oman’s Government funded SME fund); and a Board Member of the College of Banking and Financial Studies set up and supervised by the Central Bank of Oman.

Barwa Bank , Sharia compliant banking service provider from Qatar, has announced the opening of a representative office in Dubai International Financial Centre (DIFC). ?Currently in its fifth year of operation, Barwa Bank enjoys strong relations with major corporates, an increasingly growing SME portfolio and one of the fastest growing retail banking activities in Qatar. This momentum is expected to increase in 2014, as it continues to build up activities. This is the first time Barwa Bank has opened an office overseas and is in line with the bank's plans to develop the Sharia-compliant financial market outside as well as within Qatar, said Khalid Al Subeai, Acting CEO at Barwa Bank.

The DIFC is considering creating a single centralised Sharia board for the DIFC , in order to widen the acceptability of any one Islamic institution’s offerings and overcome the problems created by every institution having its own Sharia board and, therefore, limiting the liquidity of the market. Regulatory arbitrage is a problem in the global Islamic financial markets where every institution has its own Shariah board. A centralised DIFC Shariah board would help standardize the Islamic financial products and widen the number of people participating. Still there is not one global standard and every country has its own requirements which is not helping the development of Islamic finance.

Saleh Kamel, chairman Board of Trustees Iqraa Waqf for Employment & Business Expansion, has highlighted the worsening situation of endowment properties in Muslim countries as a result of interference of governments. Kamel who is also chairman of the board of trustees of Iqra Endowment, emphasized the role of development in fighting poverty while speaking at the 35th Albaraka Symposium for Islamic Economics. He urged the Islamic Development Bank (IDB) to strengthen its efforts in developing endowment properties in the Islamic world. Other speakers presented a number of models for endowments from different parts of the world, and emphasized the need for transparency.

Emirates NBD has announced that its Investment Bank is ranked as the leading arranger of US dollar denominated sukuk globally. According to league tables published by Bloomberg, from January 2014 to June 2014, Emirates NBD Investment Bank arranged 10 dollar sukuk issuances aggregating to $5.4 billion, which is the highest number of dollar denominated sukuk issuances led by any arranger during this period. This achievement is the latest in a series of recognitions for Emirates NBD Investment Bank, which has also recently been named the “Best Regional Bank of the Year” by IFR Middle East (Thomson Reuters) and “Best Debt House” by EMEA Finance.

The SME space is seeing tremendous growth in Africa, with easier access to funds from financial institutions and government policies encouraging sector growth. However, there still exists a ‘missing middle’, which finds it hard to access funds due to the category of funding they belong to; people that require between $50,000 and one-two million dollars. A new system of investing; impact investing, which started in 2008 after the global financial crisis, has been addressing the needs of this ‘missing middle’. The Africa Impact Group, for example, has been working towards helping Africa benefit from socially responsible investing through its activities.

AlKhair Capital Dubai has successfully managed the last listing of Sukuk by the Saudi property developer Dar Al Arkan Real Estate & Development Company. AlKhair Capital Dubai was the financial advisor for the Sukuk listings program on Nasdaq Dubai, with a total value of $1.15 billion. The Sukuk program, in US dollars, included a $400 million, listing - the third tranche which was issued last month and orders opened on May 20, 2014. The value of the orders was 2.3 oversubscribed the size of the tranche exporters. The third tranche was issued for five years and will mature on May 28, 2019 at a coupon rate of 6.50%.

Standard Chartered Saadiq, the Islamic banking division of Standard Chartered Bank, opened its first dedicated Islamic Banking Centre in the UAE at the Al Khalidiya Branch in Abu Dhabi. The launch of Saadiq Islamic Banking Centre comes in response to the increasing demand for Islamic banking service, the bank said. Standard Chartered has the largest retail distribution network among international banks operating in the UAE with 11 branches, five Electronic Banking Units and more than 90 ATMs and Cash Deposit Machines spread across the country. Standard Chartered Saadiq is the only international bank offering Sharia-compliant retail banking services in the UAE.

Euroclear UK and Ireland (EUI) is to bring to the market the first UK Soverign Sukuk bond. The £200 million Sukuk bond will primarily be issued in Brussels-based Euroclear and will settle in EUI and Euro Bank from 2 July. EUI is to provide an issuance, settlement and safekeeping service for this premier UK government Sukuk bond. UI already holds £1.3 trillion worth of gilts on behalf of clients. Euroclear Bank has a strong history of providing post-trade expertise in sharia compliant debt – last year Euroclear Bank partnered with Borse Dubai to support asset servicing for clients purchasing bonds on NASDAQ Dubai’s Sukuk trading platform.

The American President's leadership is needed in a matter of removing an ongoing source of inequality which continues to disfigure both democracy and capitalism in America and worldwide. In many ways Crowdfunding is the embodiment of ‘The American Dream’. A dream of independence, self-reliance and freedom, without rules and regulations designed to keep people down. In both the UK and the USA government has expressed it’s explicit approval and support for equity crowdfunding. Yet two years on, in each case, the financial regulator – your SEC and our FCA – have sought to veto the will of the legislature. We need to ensure that the vested interests who prefer the status quo step aside at last and allow ordinary people to participate.

Lors d’une séance plénière, la Chambre des Représentants a adopté à la majorité des voix, le projet de loi n° 103.12 relative aux établissements de crédit et organismes islamiques. Le texte prévoit la création d’une place financière de dimension régionale et internationale pour incorporer ce segment de la finance internationale, soulignant la nécessité d’offrir une gamme de produits et de services financiers non seulement aux citoyens résidents mais aussi aux MRE, dont les pays d’accueil offrent des produits de type finance participative. Ce texte a été adopté par 75 voix pour et 19 absentions.

Nakheel has said that it will not sell Sukuk to fund its growth plans, in the hope that its recovery from the risk of default in 2009 will help it secure cheaper funding from banks. Chairman of Nakheel, Ali Rashed Lootah, said the firm will not go for a bond because bonds are more expensive than commercial lending from the banks actually. He considers Nakheel being in a strong position to negotiate with lenders, with banks, and get good terms especially after what they have achieved.

Moody’s Investors Service on Tuesday assigned to Sharjah Islamic Bank ( SIB ) issuer ratings of A3/Prime-2 and a stand-alone bank financial strength rating of D+, which is equivalent to baseline credit assessment (BCA) of baa3. The rating assignment reflects SIB’s very strong capital buffers, relatively low borrower and sector concentrations and satisfactory profitability and liquidity metrics, according to the rating agency. Moody’s assessment of Sharjah Islamic Bank’s franchise takes into account the growing importance of Islamic finance and associated franchise opportunities in the United Arab Emirates, according to the rating agency.

Turkish Islamic lender Bank Asya has ruled out reports of ending share sales talks with Qatar Islamic Bank (QIB). Several reports on July 2 claimed Bank Asya and the QIB have ended exclusive talks regarding the QIB acquiring a stake in the Turkish lender after failing to agree on price. The reports also quoted sources claiming Turkish state-run bank Ziraat Bank may now be the most likely partner for Bank Asya, but the two banks have not officially begun negotiations. Ziraat Bank officials said there had not yet been any official attempts to move toward Bank Asya, but they did not deny the possibility of such an acquisition either. Meanwhile, on July 1, Bank Asya announced it has moved to sell assets worth around 133 million liras.

Fitch Ratings has upgraded Luxembourg-based ATLANTICLUX Lebensversicherung S.A.'s (ATL) Insurer Financial Strength (IFS) rating to 'BBB+' from 'BBB'. Moreover, its Long-term Issuer Default Rating (IDR) was upgraded to 'BBB' from 'BBB-'. The Outlook is Stable. At the same time Fitch has upgraded ATL's SQ ReVita Value of Business In-Force transaction and its Salam III Sukuk (Islamic bond) programme to 'BBB' from 'BBB-'. The upgrade reflects ATL's track record of strong profitability, low investment risk and its strong capital position. However, these positive rating factors are partly offset by ATL's dependence on unit-linked products and its fairly small size.

A Chittagong court has sent Shahjalal Islami Bank’s Director Mohammed Solaiman to seven-day police remand in a case over misappropriation of bank money. Shahjalal Islami Bank authorities had filed the case against Solaiman with the Kotwali Police Station in Chittagong on Apr 13, alleging misappropriation of Tk 1.49 billion. Later, the Anti Corruption Commission (ACC) recorded the case. ACC officials arrested him on Jun 25 in a raid on Akram Tower at Bijoy Nagar in Dhaka. After being detained following an ACC probe, Solaiman claimed he had been victimised by AK Azad, the present back chairman.