IslamicFinance.de

The board of directors of El Wifack Leasing company wants to transform itself into a Universal Islamic bank and has submitted an application to the Central Bank of Tunisia (BCT) in order to get the approval. The transformation of the company comes by virtue of the decision taken during its meeting last March 28.

Cooperative Insurance Company is the first firm established in the form of a public joint stock cooperative in line with the general policies of Article 44 of Iran's Constitution, which seeks large-scale privatization, and promotion of cooperative sector. A majority of the shares of Cooperative Insurance Company belong to companies and associations affiliated to the cooperatives sector. Cooperative Insurance Company is to conduct insurance activities in the fields of life insurance and other types of insurance services under the supervision of the Central Insurance of Iran. The managing director of the company, Akbar Najafi, explained that the major goal of Cooperative Insurance Company is to address insurance needs and render services in the cooperatives sector. Since the cooperatives have been established with public assets, they need more financial and legal support compared to other sectors in order to materialize their goals.

In cooperation with Chambers of Commerce in Abha and Eastern Region, the National Commercial Bank ( NCB ) has recently celebrated the graduates of "How to Start Your Small Business" Course. A number of 94 entrepreneurs from Jeddah, Abha and Eastern Region enrolled in the course. The course has covered a great number of entrepreneurs projects in different areas including industrial, commercial and other projects. It included theory training for 10 days, followed by 6 sessions within 3 months for practical training, which included a program for follow-up and consultancy. The course comes in line with NCB CSR programs, through which the bank trains entrepreneurs from men and women to start their enterprises, encourages investment culture and creates a competitive environment in the local market.

Malaysia-based International Islamic Liquidity Management Corp (IILM) will issue its long-awaited sukuk programme worth $490 million (RM1.6 million) this month, offering tenors of three months. The dollar-denominated sukuk programme, rated "A-1" by S&P, is backed by sovereign assets from member countries and will carry maturities of up to one year. IILM delayed its maiden issue several times and replaced its chief executive in October last year. It plans to raise the programme to as much as US$3 billion, aided by a multi-jurisdictional network of primary dealers that will ensure a secondary market, which includes Albaraka Turk and Standard Chartered as primary dealers.

The UAE Central Bank had ordered banks and financial companies to adhere to its Notice Number 237/2013 dated July 18, 2013, with regard to issuance and marketing of mutual funds. The Central Bank has asked all banks and investment companies to complete a sheet in respect of mutual funds issued or marketed by the bank/company in the UAE since inception up to February 24, 2009, in order to provide information to Securities and Commodities Authority (SCA). According to Article 2 of the Regulations, mutual funds established in a free zone within the UAE are treated as foreign funds. The regulations define a mutual or investment fund as essentially a financial vehicle for the purpose of investment against the issue of investment units of equal value and rights. As per the law, no local mutual fund may be established and no foreign mutual fund may be promoted within the UAE, prior to obtaining a licence for establishment or approval of the promotion of the mutual fund from the SCA.

Ajman Bank partnered with Al Al Ihsan Charity Association as a main sponsor in its 'Ramadan Aman' Campaign. The objective behind this effort is to prevent drivers from speeding during the Ramadan rush hour before Maghreb prayer that often increases the risk of accidents. As part of the campaign Ajman Bank employees will serve as an active volunteer distributing some of the 100,000 iftar kits through the Holy Month in the emirates of Dubai, Sharjah, Ajman, Umm Al-Quwain and Ras Al Khaimah at selected areas. Every year there is a sharp rise in road accidents in the UAE during Ramadan. A considerably large number of these occur shortly before iftar primarily due to speeding.

Dubai Islamic Bank (DIB) has appointed Adnan Chilwan as chief executive. Chilwan, who was previously deputy CEO at the bank, replaces Abdullah Al Hamli who was named managing director. The management reshuffle at DIB comes when the bank is preparing for renewed growth, after it set aside about 5 billion dirhams ($1.36 billion) against bad loans following the 2009-2010 crash of Dubai's real estate market. According to Chilwan and Al Hamli, the bank has dealt with much of its balance sheet weakness and should see profits for 2013 grow in the double digits, allowing it to eye acquisitions in new markets in Asia. DIB, which is in the process of acquiring Islamic mortgage lender Tamweel , became the second Gulf bank to issue a hybrid perpetual sukuk when it priced in March a $1 billion Islamic bond to boost its Tier 1 capital ratio.

According to Adil Dahlawi, CEO and Managing Director of Itqan Capital, the Islamic banking sector will witness an increasing demand as Islamic financing jumped 27 percent in one year to $1.1 trillion from $800 billion. He noted that one of the most prominent topics discussed at Al Baraka's 34th symposium for Islamic Economic was zakat on debt, especially with the widespread presence of financial institutions specialized in financing from private companies and Banks. Besides, the increase in demand for private and public financing, whose notable effects are apparent on the financial statements of various companies and institutions were important issues. Standard & Poor's earlier forecast that sukuk sales are to double and reach $3 trillion by 2015 in light of companies which are working to capitalize on this growing and promising market.

The Islamic Development Bank's board of executive directors has approved new finances worth $790 million to carry out different projects in member countries. The board agreed to give $220 million to the renewable energy program of the Development Bank of Turkey and $200 million for an electricity project in Damietta, Egypt. The new finances approved by the board will also benefit Morocco, Uganda, Pakistan, Burkina Faso, Mozambique, Yemen, Togo, Jordan and Mali. It has also agreed to provide grants to educational projects for Muslim communities in Kenya, Nepal and Congo. Moreover, the board discussed the decision taken by IDB governors to increase the bank's capital from $45 billion to $150 billion and arrangements to celebrate the bank's 40th anniversary.

Abdulaziz AlSaghyir Holding has launched a center specialized in social responsibility. The aim of Namaa Center for Social Responsibility (NCSR) is to support social services, innovate communal programs and promoting scientific studies and research of this area. Moreover, the center seeks to build strategic partnerships with different partners to support the center'sactivities in the future. The NCSR also represents the strategic arm of Abdulaziz AlSaghyir Holding in planning,development and implementing communal programs. NCSR's long-term strategies and plans include the educational, social and training fields. The planning of a specialized program of leadership for university students from both genders has already been completed through strategic central relationships with the high education and universities. The program is based on thinking, experiment and building to advance the personality and behavior.

Saudi-based construction firm Binladin Group has completed a 1-billion-riyal ($266.7 million) Islamic bond sale. The transaction, structured as a sukuk al-murabaha, has a one-year lifespan and pays a profit rate of 2.5 percent. The Islamic bond was sold to a wide range of investor types including financial institutions, asset managers and insurance funds among others. Sources said last month that BNP Paribas and the investment banking arm of Gulf International Bank were marketing a deal for Binladin Group to Saudi investors, with proceeds to be used to fund its projects. The sukuk sale is the fourth carrying a 364-day tenor. Binladin Group has already completed one, longer-dated local currency sukuk in 2013. It priced the 1.3-billion-riyal Islamic bond with a 2.5-year lifespan, arranged by the investment banking arm of Banque Saudi Fransi , in April.

The Board of Executive Directors of the Islamic Development Bank (IDB) has approved US $789.4 million to finance development projects in eleven member countries as well as education projects for Muslim communities in non-member countries. The BED approved US $220 million for the Turkey Development Bank program to finance renewable energy projects. Moreover, Uganda will benefit from US $120 million for the upgrading of road projects. The rest of the approvals include US $8 million for Niassa electrification project in Mozambique, US $7 million for a project on access to energy for rural communities in Togo and US $23.7 million to the government of Mali to address food insecurity in the country. The government of Pakistan received approval of US $35 million for the financing of the reconstruction of schools destroyed by the floods and US $19.8 million will go to a water supply project in Ouahigouya, Burkina Faso.

Rushdi Siddiqui, co-founder and managing director of the private equity advisory firm Azka Capital, is focused on halal industry initiatives with Islamic financing. He believes both industries have much in common, but hardly communicate with each other. Halal is not just about meats/foods, but also about pharmaceuticals, cosmetics, logistics, etc., all linked to the real economy, yet very unstructured and fragmented. The PE firm's goal is creating risk-adjusted portfolio value for investors who have traditionally invested in real estate, oil/gas, and healthcare. Strategic investors include family offices, high-net-worth individuals, sovereign wealth funds, food companies, Western investors looking for the next BRICS story in the emerging markets. Besides, Siddiqui believes that the development of the Islamic equity capital market (iECM) will bring balance to today's Shariah-complaint (debt bias) Islamic finance.

Islamic International Rating Agency (IIRA) has assigned a national scale rating of A+/A-1 to Bank AlJazira (BAJ). On the international scale, IIRA has assigned a foreign currency and local currency rating of A-/A-2. Outlook on the rating is 'Stable'. The fiduciary score has been assessed in the range of '71-75', reflecting adequate fiduciary standards. BAJ has grown at a CAGR of 19% in terms of asset size over the last three years through continuous expansion in branches and business acquisition. Moreover, the bank has broadened its business base with an enhanced presence in the corporate segment and a growing exposure towards the retail market. However, it remains sensitive to concentration related risks. The bank has a well developed corporate governance framework in place with effectively functioning board and management level committees.

Profits of Lebanese banks operating in Syria in the first three months of 2013 fell by 98.2 percent to $640,000 from $49.8 million in the same period of 2012. That was compared to aggregate net losses of 489.5 million pounds in the fourth quarter of 2012. The aggregate shareholders’ equity of the seven banks reached 35.3 billion pounds, or $406.5 million, at end-March 2013, unchanged from end-2012. The banks’ total operating income reached 4.7 billion pounds in the first quarter of 2013, down 35.7 percent from 7.3 billion pounds in the same period last year. Lebanese banks in Syria have increased provisions for nonperforming loans, though they realize this will affect profits considerably. All of the Lebanese banks said they had no intention of withdrawing from the Syrian market now or in the future because they believed the situation would get back to normal eventually.

Fitch Ratings has affirmed the Islamic Development Bank's (IDB) Long-term Issuer Default Rating (IDR) at 'AAA' with a Stable Outlook and Short-term IDR at 'F1+'. IDB's ratings are underpinned by strong intrinsic features, primarily excellent capitalisation. The ratio of equity to assets has remained above 60% since inception. The ratio of debt to equity is low, at 57.5%. The bank also maintains a comfortable level of liquid assets, which more than fully covered its short-term liabilities. Moreover, credit risk is moderate. Fitch deems other risks like credit risk on treasury assets, interest rate risk and foreign exchange risk as well as the bank's risk on equity investments under control. Shareholders' support is also supportive of the rating since their willingness to support the bank is expected to remain strong.

According to a new special report published by Moody's Investors Service, the Saudi sukuk market will continue to grow over the next 12-18 months. Strong sukuk issuance has continued in 2013, with SR 11.6 billion already issued during Q1, leading the rating agency to expect that 2013 sukuk issuance will surpass 2012 levels. With limited investment options available, IFIs tend to maintain higher levels of very low-yielding cash and Islamic interbank placements. A larger sukuk market would facilitate liquidity management through a pool of higher-yielding Shariah-compliant securities and offer a profitability boost to local IFIs. Moody's says that the record issuance is being driven by strong investor demand; increased financing opportunities to fund the country's large-scale infrastructure projects; and a developing yield curve following the sovereign-guaranteed benchmark sukuk issuance by the General Authority of Civil Aviation in early 2012.

The second issue of the quarterly CSR Al Youm newsletter, released by Dubai Chamber of Commerce and Industry 's Centre for Responsible Business (CRB), marks the Sustainability Network's membership reaching 50 from just 2 in 2010. It also focuses on the members' sharing of their experiences on CSR, Sustainability and Corporate Governance to further support its development and adoption in the UAE. In its 'Sustainability Network Interview Series', the newsletter features Mr. Wasim Javed, HR Director, Middle East and Africa, TNT Express, who talks about his company's approach to CSR. The newsletter covers Engage Dubai's annual Give & Gain Day programme where business volunteers helped with everything from cooking classes at special needs schools to employability workshops for university students. Also, the newsletter profiles the CSR partnership in action of CHEP, Imdaad and Union Paper Mills to minimise waste to landfill and there is an article highlighting the environmental requirements of the Dubai Chamber CSR Label.

Venture Capital Bank successfully secured the acquisition of a prime boutique new-build freehold residential development in Mayfair Chambers, one of London's most eminent residential districts.. This investment opportunity comprises of a building currently being developed to house six luxurious residences. Construction of the development has commenced and delivery of the apartments is expected to be in April 2014. VCBank has been working on this development and investment opportunity for several months. The Bank has engaged Trowers & Hamlins - an international law firm- to conduct a full legal due diligence on the site and offer advice given the new changes in the tax regime addressing matters such as stamp duty land taxes, capital gain taxes, and annual tax on enveloped dwellings (ATED).

Al Madina Insurance Company is planning to float an initial public offering (IPO) in the fourth quarter of this year in an attempt to change its status to a Sharia-compliant takaful firm. As per the draft takaful regulation, insurance companies have to be public firms to function as takaful companies. The promoters will reportedly divest 40 per cent of their holding in the company in favour of investing public through the IPO, which will be a premium issue. Al Madina Insurance, which has branch operations in several parts of the country, has a capital base of OMR10 million. Besides, three other companies made similar proposals: Al Maha Ceramics, Sembcorp Salalah Power and Oman Arab Bank. Al Madina has received an 'in principle' approval from the Capital Market Authority for converting its status into an Islamic insurance firm and a final approval will be given only after the company lists its shares on the Muscat Securities Market (MSM).