IslamicFinance.de

Wasim Saifi is the Singapore-based global head of Islamic and consumer banking at Standard Chartered Plc (STAN). He affirmed that Singapore is very well positioned to influence with its considerable talent to help innovate Islamic wealth management. He also claimed that once Islamic products will be launched in Singapore, demand will come along.

In order to grow its Islamic banking franchise in the region, DBS Group appointed a new chief executive officer for its Singapore-based Islamic unit.
The new CEO is Toby O'Connor. Until now, thsi position was vacant.

With a supportive regulatory and tax framework and proximity to large Muslim populations in its neighbourhood, it is only a matter of time before Singapore becomes a major player in Islamic finance.
Analysts say Sukuk, or Islamic bonds and Syariah-compliant real estate investment trusts, are two products that have strong growth potential in Singapore.
One reason behind Singapore's success in Islamic finance is the Monetary Authority of Singapore's (MAS) efforts to create a supportive framework for a competitive Islamic finance landscape.

In the oppinion of National Bank of Abu Dhabi and EFG-Hermes UAE Ltd, Abu Dhabi may find it cheaper to borrow with Islamic bonds than non-Sharia compliant securities.
Abu Dhabi government officials will meet fixed-income investors in Beijing, Hong Kong and Singapore. Standard Chartered is arranging the meetings and the sit-downs with investors aren't related to an immediate transaction.

Indonesia is the fourth most populous country in the world. Its capital city is Jakarta, which is located on the island of Java. Since the majority of the population of Indonesia are Muslims, Indonesia can be considered the largest Islamic state in the world in terms of population. The Indonesian economy is classified as a developing economy, and is known as a "Tiger Cub Economy".
This is a reference to the more economically advanced "Asian Tiger Economies" that include Hong Kong, Singapore, South Korea, and Taiwan.

DBS Bank Limited, Sumitomo Trust & Banking and Nikko Asset Management of Japan have signed an agreement to combine DBS Asset Management and Nikko AM.
DBS and Nikko AM will enter into a non-exclusive distribution agreement, whereby Nikko's portfolio of investment products can be distributed through DBS' network in core regional markets.

Although Singapore has the stated ambition of developing the island-state into a global hub for Islamic capital markets products, the only other regulatory development of note has been the consultation on the proposal of the Monetary Authority of Singapore (MAS), the central bank, to amend the country’s Deposit Insurance Act to allow MAS to prescribe products as insured deposits, and to prescribe Murabaha as an insured deposit.
MAS launched the public consultation on Feb. 25, 2010 as part of its review with the Singapore Deposit Insurance Corporation (SDIC), on whether to amend and enhance various features of the Deposit Insurance Scheme in Singapore.

His Excellency Ahmed Humaid Al Tayer, Chairman of Emirates NBD officiated the launch.
A focus of the bank's Singapore branch will be on wealth management, targeting High Net Worth Individuals (HNWI) from the Middle East who would like to base part of their offshore assets in Singapore. The branch will promote MENA (Middle East North Africa) investments to Asian High Net Worth Individuals who are currently under-weighted in their MENA exposure.

Sabana Shari'ah Compliant Industrial Real Estate Investment Trust raised S$664.4 million in gross proceeds, after pricing its initial public offering at S$1.05 per unit.
The company, which filed its prospectus to the Monetary Authority of Singapore last week, said it was planning to sell a total of 632.8 million units in the IPO.
The company intends to use the proceeds of the IPO to purchase properties and to pay off debt-related costs.

Sabana Shari'ah Compliant Industrial Real Estate Investment Trust, or Sabana REIT, Tuesday filed its prospectus with Singapore's central bank for an initial public offering to raise about $541 million.
Singapore has been pushing for the development of Islamic finance in the city state, encouraging companies to offer a range of Shariah-compliant products including bonds and other investment products such as REITs.
Sabana REIT's initial portfolio will include properties in Singapore that have no connection to activities and products such as gambling, alcohol or pork.
Sabana REIT's initial portfolio comprises 15 industrial properties located across Singapore with an aggregate gross floor area of about 3.29 million square feet.

Recent initial public offerings (IPOs) were greeted enthusiastically by the market on their debut but for most of them, it appears the welcome ends there.
With the exception of two mega IPOs that are still holding up above their offer prices, others have pulled back after a strong showing on their first trading day, with some even falling below their IPO prices.
Meanwhile, new mainboard Chinese listings were given the cold shoulder immediately after their trading debuts. China's first aluminium producer to list here, XinRen Aluminum Holdings, also lost steam after a fiery run-up on its debut, eventually falling below the 55-cent offer price.
Other IPOs making their way to the market soon include South Korea's STX offshore unit, STX Offshore and Specialised Vessels.
For New Century Shipbuilding, this will be its second attempt to list here.
Analysts say that while the massive printing of money in the US is causing a flood of liquidity into Asian asset classes and bolstering their stock markets, uncertainties in the global economy and currency markets keep investors from taking on a longer-term view.

Until recently the issuance of Islamic bonds, or sukuk, was confined to the Muslim world. But now a number of international borrowers are tapping the markets, including Nomura Holdings in Japan and Europe's first corporate borrower, International Innovative Technologies.
The ratings agencies Moody’s and Standard & Poor’s say they expect to see a rise in the number of sukuk issues by new players over the next 12 months, including issues by borrowers in Singapore, Australia, Luxembourg, Thailand, Hong Kong, France and Russia.
While the Islamic Financial Service Board and the accounting and auditing organization have defined standards for sukuk, defaults over the past year have shown that new guidelines must be set as problems arise, particularly as sukuk start to generate global attention.

Elaf Bank, a closely held Islamic investment bank in Bahrain, has applied for a banking license in Malaysia.
The Southeast Asian nation plans to issue two more Islamic bank licenses, including one of a new lender that will be jointly established by institutions from Asia and the Middle East.
Bank Negara Malaysia already issued conventional licenses to five foreign banks in June, including National Bank of Abu Dhabi and Indonesia’s PT Bank Mandiri.
The bank would use Malaysia as regional hub, covering Singapore, Indonesia and Australia.
It would try to use this as an opportunity to converge differing interpretations of Islamic finance between Malaysia and the Middle East by getting Shariah boards to work closely.

Arcapita Bank, a leading international investment firm headquartered in Bahrain, announced today that it and its affiliates have successfully completed the IPO of a portfolio of 64 industrial properties in Singapore.
In July 2008, Arcapita’s Singapore-based real estate team entered into a joint venture with Mapletree Investments Pte Ltd, a leading Singapore real estate company, to acquire a diverse, industrial real estate portfolio strategically located in Singapore. The portfolio comprises flatted factories, stack-up/ramp–up buildings, business park buildings and a warehouse.

With the Islamic finance industry worth an estimated $1 trillion and growing rapidly, it is perhaps no surprise that a number of Asia-Pacific nations are among a growing band of countries worldwide to signal their intention to carve out a larger share of the market.
Countries like Malaysia, Indonesia and Singapore, along with Hong Kong, have set their sights on becoming hubs for Islamic finance, where investments are made according to Islamic principles.
While their sectors may be at varying stages of development, they are facing a common predicament: a shortage of professionals skilled in Islamic finance.
Education institutions around the Asia-Pacific region, like their counterparts in the Middle East and Europe, are increasingly seeking to fill that gap by adding Islamic finance specialization to their master’s programs in business administration and elsewhere.

The Singapore stock exchange is poised to welcome the city state’s first Sharia-compliant REIT, in a move that could broaden the real estate investor base and develop the Islamic finance market there. However, it is not clear that the regulator is ready for the new asset class. Daniel Stanton reports.

The Islamic Bank of Asia (IBA), a unit of DBS, said its CEO Vince Cook has quit for personal reasons and Friday is his last day with the bank.

Economists said two sectors which Singapore should focus on as it gears up for a global economic recovery are Islamic Finance and the green sector.

They said the country should also look to regions like the Middle East and Africa for new opportunities.

The Islamic Bank of Asia, (IBA) a venture of Singapore’s DBS Group Holdings Ltd., aims to stop using London Metal Exchange transactions.The bank is in talks with Olam International Ltd. to use its trading in commodities such as rice, coffee, cotton and cocoa as the basis for financing.

Vincent Cook is CEO.