IslamicFinance.de

Dubai Exports , the export promotion agency of the Department of Economic Development (DED), recently showcased the emirate's expertise and resources in Islamic economic services to the business community in Toronto and Vancouver across a series of seminars. The seminars, jointly organised by Dubai Exports and Borden Ladner Gervais LLP focussed on encouraging linkages between Islamic financial and advisory firms in Dubai and their counterparts in Canada. Participants in the seminar also discussed the changes required in Canada's taxation and regulatory system regarding Islamic financial products. Opportunities are especially seen in the connection of the sophisticated financial and business communities in Dubai with leading edge Canadian technology companies and entrepreneurs in such areas as clean tech, life sciences, advanced materials and information technology, which are all shari'a compliant.

A U.S. judge Tuesday approved Arcapita Bank B.S.C.'s plan to gradually liquidate itself in a process that conforms with Islamic Shariah law, which generally prohibits borrowing money with interest. The Bahrain-based investment firm entered bankruptcy protection last year with a goal of restructuring itself but ended up with a plan to orderly liquidate its private-equity investments. The modified proposal solved several concerns from creditors, including creating a new entity that will retain the firm’s management, and setting a minimum valuation for the company’s remaining assets. Arcapita manages infrastructure, real-estate, private-equity and venture-capital investments that are compliant with Shariah.

Malaysia's BIMB Holdings Bhd has received approval from the country's central bank to begin talks with Lembaga Tabung Haji for the latter's 18.5 percent stake in Bank Islam, the country's oldest Islamic bank. BIMB, which presently owns 51 percent of Bank Islam, is also in the process of acquiring the 30.5 percent stake held by Dubai Financial Group. If it acquires both stakes, BIMB will control 100 percent of Bank Islam. Negotiations between BIMB and Lembaga Tabung Haji will be completed by the end of the year. BIMB's chief executive officer Johan Abdullah told reporters in May that the valuation of the Dubai stake was already determined, although a complete proposal had not been filed and the amount has not been disclosed.

The Islamic Corporation for the Development of the Private Sector ( ICD ) and Chad's Ministry of Finance and Budget have signed a partnership agreement aiming at the creation of a local leasing company (ijara) and a local Islamic bank compliant to the principles of Islamic finance. The two future entities -- leasing company and Islamic bank -- will provide Shariah-compliant financial services and products with a special focus on the SME sector. Through this agreement, ICD will contribute to promote the development of Islamic finance and support SMEs. Minister of Finance and Budget of Chad Atteib Doutoum thanked the ICD and reaffirmed his full support to make the private sector a key player in the economic development of the country. He then promised to provide the necessary support of his Ministry to implement the two financial institutions.

Mashreq Al Islami recently launched a range of Islamic banking solutions for business banking clients. In addition to personal banking products, the bank now offers flexible business solutions to small and medium sized enterprises (SMEs) across all their business needs. SMEs can benefit from multiple finance options while staying true to Sharia'h principles. Mashreq Al Islami 's Business Banking offers Small and Medium Enterprises a comprehensive suite of Islamic business solutions including Islamic business finance of up to AED1.5million, Islamic business current accounts offering a range of banking solutions on multiple business accounts, attractive and customized Takaful for life cover and savings plans, as well as Islamic treasury solutions.

Khaleeji Commercial Bank and Bank Al Khair, a pair of Bahraini banks, are in talks over a potential merger. The banks have signed an agreement to explore the feasibility of a merger and are forming a steering committee to do due diligence and execute the deal. The proposed tie-up between Khaleeji, an Islamic bank founded in 2004 and listed on the Bahrain bourse, and Bank Al Khair, an Islamic investment bank, comes amid a wave of talks among Bahraini lenders. Three small Bahraini banks completed a merger in January, and Bahrain's Al Salam Bank and BMI Bank are currently pursuing a merger.

Indonesia's Bank Muamalat plans to sell more than 30% by July through an initial public offering and private placements, Chief Executive Arviyan Arifin told reporters Wednesday. Shareholders of the country's first Shariah-compliant lender sought to sell part of their stake in 2011 and 2012 through private placement but couldn't agree on the price. The remaining shares will be offered through private placement. Bahana Securities said Muamalat's shares will be offered in a price range of IDR625-IDR975 each.

The Islamic Corporation for the Development of the Private Sector (ICD) moves in the Islamic banking sector of Kazakhstan with a mandate of converting a regional Bank into an Islamic bank with expected investment of up to 35 percent of the subscribed and paid up capital of the bank. Accordingly, it will become second Islamic bank in the country. Earlier, ICD , together with a diverse group of International and local investors including owners of Zaman Group established the first Islamic Leasing (Ijara) Company in Kazakhstan with authorized capital of $ 36 million. In addition, ICD extended $ 20 million for the real estate development project and committed $ 40 million lines of financing facility for the SME sector in the country.

The International Islamic Financial Market (IIFM) has released its IIFM Sukuk Report (3rd Edition) which consists of A Comprehensive Study of the Global Sukuk Market. The research report sheds light on the growth and development of international and domestic Sukuk issuances from 2001 - Jan 2013. According to Mr. Ijlal Ahmed Alvi, Chief Executive Officer of IIFM, the last two years were record years of Sukuk issuances. This year has also started on a positive note and the growth trend is expected to continue in coming years, he added. The report also highlights the different Sukuk structures used by international Sukuk issuers as well as Sukuk structures used at domestic level by various jurisdictions active in issuing Sukuk. Moreover, it contains selected Sukuk case studies in the international Sukuk market and the clarification on the meaning and types of Sukuk Al Istithmar (Investment Sukuk).

Barwa Bank has acted as joint lead manager on Albaraka Turk Participation Bank's (ABT) $200m Tier 2 sukuk. This transaction represents the first Sukuk Murabaha transaction issued in the international capital markets from Turkey. Barwa Bank has been involved in almost all meaningful sukuk business over the last 12 months, guided by its strategy to become a key player in the Islamic debt capital markets. The ABT sukuk is another milestone for the bank, having been involved with several high profile issuers earlier this year as Co-Lead Manager, notably, the government of Dubai, Emirates Airlines and Dubai Islamic Bank.

Kuwait's Boubyan Bank (BOUBYAN.KW) has sold a debt that was owed by an investment bank for 2.4 million Kuwaiti dinars ($8.38 million). Boubyan, which is an Islamic lender 58.33% owned by National Bank of Kuwait, said that it sold the debt to an international bank, without naming it. It added that it had previously set up provisions to fully cover this debt in keeping with the instructions of the country's central bank.

Luxembourg-based SEDCO Capital Global Funds (SCGF) has announced the first ever Shariah-compliant funds managed according to environmental, social and governance (ESG) principles. The SEDCO Capital US Equities Fundamental Indexing® Fund and SEDCO Capital Global Higher Dividend Yield Fund are screened for compliance with international conventions and guidelines on environment, human rights and business ethics such as UN Global Compact and OECD Guidelines. Non-compliance is dealt with through a process of engagement and exclusion. The funds are targeted at institutions, high net worth individuals, family offices, and qualified distributors wishing to invest in a socially responsible manner, while complying with Shariah principles. The funds can also be distributed by banks who wish to offer this investment opportunity to customers.

Saudi Fransi Capital has launched its new fund, the Saudi Fransi Real Estate Fund. The new fund seeks to achieve capital growth, by developing lands and real estate projects, along with the possibility of generating income stream by acquiring existing real estate in Saudi Arabia. It's a closed -- ended Shariah-compliant fund, with duration of four years from the day of closing, but may be extended for two successive periods of one year. The subscription period started on May 18 and will end on July 3. SFC signed a memorandum of understanding with a leading and renowned real estate developer, to be the principal real estate developer of the fund; the fund may assign other developers if needed. Yasir bin Othman Al-Rumayyan, CEO of SFC, said that the fund provides the opportunity for capital growth and generating income; since it generates cash during the development phase.

BMI Bank , the Bahrain based associate of Bank Muscat , has announced that they have agreed in principle in favour of a merger with Al Salam Bank, an Islamic Bank incorporated in Bahrain. The completion of the transaction, including final share-swap ratio, is subject to satisfactory due-diligence as well as regulatory and shareholder approvals, Bank Muscat said in posting on the website of the Muscat Securities Market. Bank Muscat has a shareholding of 49 per cent in BMI bank.

Stuart Crocker, global head of private banking and wealth management at Abu Dhabi Islamic Bank and Merrill Lynch veteran, has left the bank. Regional private banks were supposed to be making a challenge to the dominance of big international players and Crocker was one of the landmark hires to bolster the case for the local Banks. Crocker joined Abu Dhabi Islamic Bank (ADIB) in May 2011 as global head of private banking and wealth management. Apparently, there is no replacement lined up and Crocker's exit comes amid a change of strategy at the bank. ADIB didn't respond to requests for comment.

The Board of Governors of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), member of Islamic Development Bank (IDB) Group, approved in its 20th Annual Meeting the Annual Report and the Financial Results for 1433H (2012). Last year, the Corporation has continued to enhance the support it provides for exports from and investments into our Member Countries. Despite the existing challenges, the Corporation's Business Insured numbers remained strong at USD 3.07 billion, which is comparable to the business insured numbers achieved last year. ICIEC Chief Operating Officer Khemais El-Gazzeh said, especially the Political Risk Insurance (PRI) program stood out, having increased by 167% to reach a record high of USD 825 million.

Thomson Reuters has launched an Islamic Finance Development Indicator in collaboration with the Islamic Corporation for the Development of the Private Sector (ICD), the private sector development arm of the Islamic Development Bank (IDB). The indicator is a numerical measure representing the overall health and growth of the Islamic finance industry worldwide. It measures five key components quantitative development, governance, social responsibility, knowledge and awareness. Therefore, the Islamic Finance Development Indicator is a unbiased and reliable multi-dimensional barometer of the development of the Islamic finance industry.

The successful closure and signing of a US$ 230,500,000 and EUR 115,300,000 Syndicated Dual-Currency Murabaha Financing Facility for Asya Kat?l?m Bankas? A.?. (Bank Asya) was announced by its Initial Mandated Lead Arrangers and its Bookrunners. The Facility was signed on 30 April 2013 and a commemorative event was being held to mark the occasion. Launched at US$ 225 Million, the Facility was oversubscribed to close at US$ 382 Million equivalent with participation from 28 banks from across the globe. It carries a profit rate of 125 bppa over the relevant benchmark. Bank Asya will use the proceeds to expand its financing activities in Turkey.

It is often claimed that Islamic finance is not only for Muslims, sending the message that the market potential of Islamic finance is far greater than just the global population of Muslims. However, Shari'ah compliance as the constitutive element of Islamic finance is in itself rather irrelevant for non?Muslims. It could be macro?systemic or micro?commercial or ethical implications of the observance of Islamic law which make it appealing to non?Muslims. If it is not 'systemic superiority' that will attract non?Muslims, then it could be the pricing of Islamic products or their quality that the customers see as individual benefit for themselves. The responsible investing movement is a great opportunity for Islamic finance, but also a great challenge at the same time.

The Capital Market Authority is finalizing a regulatory framework which will allow foreigners to directly own stocks in Saudi Arabia, though the market has no need for liquidity from international investors. Foreign investment is attracted to come to the market for the technical expertise and human capacity. Indications are that foreign appetite is strong to invest in the largest regional exchange, which could add greater depth and breadth to the market and ultimately benefit all participants, Furthermore, large institutional investors could push for greater disclosures and transparency which will pave the way for Saudi equities to be included in widely followed emerging markets indices. Following this, the next steps would be the introduction of new instruments such as REITs, options and warrants, and covered shorts. An efficient and well-regulated market should be the eventual goal.