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GFH Capital has announced the appointment of Jinesh Patel as its Senior Executive Officer to lead the Dubai based investment bank. In his new role, Mr. Patel has been tasked with further building and growing the business. Mr. Patel is a senior business professional with almost two decades of international experience in the financial services arena spanning Europe, the Middle East and Asia and brings to his role extensive experience in originating, structuring and executing private equity, debt and capital market transactions. Prior to joining GFH Capital, he was the Chief Financial Officer of Ammalay Commodities - Dubai. He holds an MBA from the University of Brighton and BA (Hons) in Business Economics and Finance.

The Islamic Development Bank (IDB) Group and the Republic of Chad have signed an agreement worth 3.14 million US Dollars to support a dual Arabic-French education development project in the first level of secondary education. The project will be financed through a loan from the IDB and the Islamic Solidarity Fund for Development affiliated to the IDB. The agreement was signed by the Chairman of the Islamic Development Bank, IDB, Group, Dr. Ahmad Mohamed Ali, and Mariam Mohamed, Minister of Economy, Planning and International Cooperation and Governor the Islamic Development Bank branch in Chad. The meeting discussed relations with the IDB Group and ways of boosting them and the features of the programme of the strategic partnership between the two sides, which will be launched soon.

The Islamic Financial Services Board (IFSB) successfully organised four events in Khartoum, Sudan on 18 - 20 February 2014. The Insurance Supervisory Authority of Sudan hosted the 6th Seminar on the Regulation of Takaful and the Facilitating the Implementation of the IFSB Standards (FIS) on Takaful while the Central Bank of Sudan (CBoS) was the host for the IFSB Meet the Members Session and the FIS Workshops on Banking. In addition, two workshops were held in Khartoum: the Facilitating the Implementation of the IFSB Standards (FIS) Workshops on Banking and the FIS Workshop on Takaful.

Oman's Bank Nizwa has partnered with the Ministry of Endowment and Religious affairs to create a seamless opportunity for customers to pay their Zakat. Customers can now easily transfer the required amount from their accounts into the allocated Ministry of Religious Affairs account at Bank Nizwa . They can also deposit cash directly into this account. Customers who regularly wish to transfer Zakat can set up a standing order. Bank Nizwa customers who choose to pay their Zakat through the afore mentioned Bank Account are assured of a waiver of fees on all standing orders linked to this account. There are also fee waivers on internal, local and International transfers associated with this account.

Bahrain-based Gulf Finance House (GFH) has announced the signing of two development agreements for real estate development in India. The flagship investment of GFH in India is the Energy City and Mumbai IT & Telecom City (India Project) developments in New Mumbai, the agreement of which was signed with Wadhwa Group. The second agreement was agreed with Adani Infrastructure & Developers , to explore development opportunities in relation to various infrastructure and real estate projects in India. Adani Infrastructure & Developers will be partnering with Asiastar City Holdings to develop the Phase 2 of GFH’s India Project.

The National Commercial Bank (NCB) has successfully placed its 5 billion Saudi riyal (Dh4.89 billion) 5-year subordinated Tier II capital sukuk offering. Great interest from the investor community generated a 2.1x oversubscribed orderbook exceeding the initial target issuance size of 4 billion riyals, allowing the transaction to be upsized to 5 billion riyals without impacting the final pricing of the sukuk. NCB’s issuance was priced at 6-month SIBOR+110bps. HSBC Saudi Arabia acted as a lead coordinator and GIB Capital, HSBC Saudi Arabia, JP Morgan Saudi Arabia and NCB Capital acted as joint lead managers and joint bookrunners. The issuance proceeds will be used to further support NCB’s growth plans across the various business segments of the bank.

The National Commercial Bank (NCB) has successfully placed its SR5 billion 10 non-call 5-year subordinated Tier II capital sukuk offering. The transaction represents NCB's debut of local riyal issuance and its inaugural Tier II capital offering. Interest from the investor community generated a 2.1x oversubscribed orderbook exceeding the initial target issuance size of SR4 billion, allowing the transaction to be upsized to SR5 billion without impacting the final pricing of the sukuk. NCB's issuance was priced at 6-month SIBOR+110bps. The issuance proceeds will be used to further support NCB's growth plans across the various business segments of the bank.

The President of the Islamic Development Bank (IDB), Dr Ahmad Mohamed Ali, and the UK Senior Minister of State for the Foreign & Commonwealth Office, Baroness Warsi of Dewsbury, view positively the fast growth of Islamic finance in the UK. During a visit to the IDB headquarters in Jeddah, Baroness Warsi told the IDB President that significant progress has been achieved by the UK Government in terms of Islamic finance. The UK is close to issuing its first sovereign sukuk which will possibly be issued by mid-2014, she said. Dr Ali and the Minister reiterated their commitment to the growing IDB-UK partnership in the area of development assistance and the economic empowerment of women. They also agreed to explore potential partnership opportunities in the development of Awqaf.

Islamic banking assets in Egypt are expected to reach around EGP 128 billion (USD 18.4 billion) in 2014, realizing an average growth of 10% to 12%. Islamic banking assets were valued at EGP 114 billion in 2013, up 11% from the previous year. Islamic financing extended by banks rose 6% to EGP 76.4 billion in 2013 while deposits grew by 13% to EGP 103 billion in the same period. The Islamic banking sector accounts for 7% of total banking assets in Egypt. Meanwhile, investors from Saudi Arabia are reportedly evaluating various investment opportunities in Egypt, including in the industrial and agricultural sectors, but are waiting for the political and security situation to stabilize before making a move.

The Turkish Treasury said on Monday it will issue a lira-denominated Islamic bond, or sukuk, on Feb 19. In order to diversify the borrowing instruments, broaden the investor base and increase the domestic savings, Turkish lira-denominated Lease Certificates will be issued. The Treasury previously said it would issue a sukuk worth 1.5 billion lira in February.
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The Islamic Corporation for the Development of the Private Sector (ICD) has celebrated the completion of the First Cohort of its Islamic Finance Talent Development Program (IFTDP). The IFTDP has been designed for mid-career professionals who possess prodigious leadership competencies. Its sole objective is to build up a pool of highly talented Islamic finance executives who are capable of leading the industry in the future. While the IFTDP is the latest addition by ICD to develop world-class Islamic finance executives, the Young Professional Program (YPP) has been the preeminent program preparing outstanding young graduates to become global development leaders. Both programs are based on the belief that attracting and retaining talent is the most powerful factor behind the success and excellence of organizations.

State-owned Islamic Bank of Thailand made an unaudited profit of 2.7 billion baht ($82.4 million) last year, compared to a loss of 13.25 billion baht a year earlier. Non-performing loans were cut by more than 20 billion baht last year, with about 27 billion baht of NPLs left on its balance sheet. Management now aims to increase capital levels to comply with regulatory requirements. The bank faced several problems in 2013 which affected its image and clients' confidence, leading to a liquidity crisis. The bank, rated BBB- by Fitch, now plans to increase loans by 20 billion baht, focusing on small and medium-sized businesses and retail clients, while growing deposits by about 25 billion baht in 2014. It maintains plans to issue sukuk this year to support expansion plans.

Abu Dhabi Islamic Bank has reported a net profit of Dh1.45 billion for 2013, up 20.7 per cent compared to Dh1.20 billion in 2012. The profit for the fourth quarter of 2013 increased by 41.4 per cent to Dh343.3 million. The Board of Directors recommended the distribution of 30.66 per cent cash dividends and 26.87 per cent bonus shares for 2013. Total assets have passed an important milestone and are now Dh103.2 billion, increasing by 19.8 per cent in 2013. Moreover, ADIB maintained its position as one of the most liquid banks in the UAE. ADIB Securities increased net profit for 2013 by 416.6 per cent to Dh29.7 million. With regard to Burooj, the Group’s real estate investment subsidiary, there was a reduction of commitments by a net Dh775 million vs 2012.

Islamic Bank of Britain (IBB) has revealed findings from the first national survey to look into British consumers' understanding of, and attitudes towards Islamic finance. The survey was conducted among 300 British Muslim and non-Muslim consumers by independent research company 2Europe. Around two thirds of those surveyed felt that Sharia finance is appropriate in a modern western society and relevant to all faiths. 58% considered Islamic finance to be an ethical system of finance and one which considers the impact of its activities on society. Moreover, 81% of IBB 's customers are likely to use Sharia compliant finance again. The survey shows that there is strong potential for further growth of Islamic finance.

National Commercial Bank has mandated its own banking arm, NCB Capital, as well as that of Gulf International Bank and the Saudi Arabian units of HSBC and JP Morgan to arrange a local currency sukuk. The sukuk will enhance the bank's Tier 2 - or supplementary - capital and will have a ten-year lifespan with an option of the bank redeeming the instrument after five years. The size of the issue has yet to be determined. NCB's chairman was quoted in October as saying the bank was planning to issue a capital-boosting sukuk worth up to 4 billion riyals ($1.07 billion).

Noor Takaful, the Islamic insurance arm of Noor Investment Group, announced on Tuesday that the company’s CEO Parvaiz Seddiqi has stepped down from his role. Seddiqi is the founder member of Noor Takaful. The company also announced that Andrew Greenwood has been named acting CEO. Noor Takaful offers general and family Islamic products to cater to individual and corporate customer segments.

Saudia's investment banking and asset management firm Anfaal Capital has announced the outsourcing of the Shari'a Supervisory function to Shariyah Review Bureau (SRB). As the new Shari'a Advisor, SRB will oversee and supervise the firms Shari'a Compliance needs from Product structuring to Fatwa issuing, and from stock screening to periodical Shari'a Audits. By having a team of shariah scholars and experts, SRB has the ability to deliver speedy solutions to the business while maintaining the level of Shariah standards. This in turn is expected to contribute to Anfaal's business growth and to meet the needs of the firm's stakeholders.

In Pakistan, Mudaraba companies and Mudarabas (Non-Banking Islamic financial institutions (NBIFIs)) attracted the major business groups of the country since the early 80s. The Mudaraba sector recorded rapid growth until 1996, when the fall back of NBIFIs began and the country witnessed a large number of closures and mergers during the next fifteen years. This left many of doubts and questions as to the future, viability and adoptability of Islamic finance. The causes of failure can be categorized into seven M's: management, money, major defaults manipulation, mismatch, moral hazards and monitoring. However, most of the national NBIFIs managed to survive and generate lucrative profits for their investors, which shows that it was not failure of the Islamic financial system rather a failure of the management.

Islamic International Rating Agency ( IIRA ) has reaffirmed its Shari'a Quality Rating of AA (SQR) assigned to Jordan Islamic Bank ( JIB ). This rating indicates JIB 's conformance to very high standards of Shari'a compliance in all aspects of Shari'a quality analysis. The bank has traditionally been supervised by an eminent Shari'a Supervisory Board. Moreover, the bank's Board of Directors has an adequate representation of independent directors, while recommended Board committees are also in place. Transparency of financial reporting by the bank with regards to investment accounts and corporate governance disclosures are generally in line with the recommended best practices by IFSB. However, diversification of Islamic financing structures in the portfolio is recommended by Shari'a scholars.

A study discusses four major defaults on sukuk that have happened since 2007. These case studies make clear that most problems can be traced back to clauses and structures that made the Sukuk more like conventional bonds. Furthermore, once default happened, most of the Sukuk discussed did not transfer the underlying assets to the Sukuk holders. So, in the event of default, due to limited recourse provisions, Sukuk holders often had no collateral to resort to. The case studies highlight the importance of the legal institutions of the country where the collateral is likely to be contested. The conclusion of the study is that Islamic Finance is not failing to deliver on its promises because Shariah compliance implies a clear allocation of property rights.