IslamicFinance.de

Dear Readers,

Please see my explanation to the recent Sukuk debate layed out in two articles.

Best regards,

Michael Saleh Gassner

David Masters reported on 15 April about the new Ernst & Young Report in the Insurance Daily, which says that the GCC countries contribute USD 1 bn to the USD 2 bn global Takaful market, which is supposedly growing at 20 %. Worldwide there are 133 Takaful operators. 59 of these operate within the GCC countries of Saudi Arabia, Qatar, Oman, Kuwait, Bahrain and the United Arab Emirates.

Ernst & Young’s head of Islamic finance is Sameer Abdi.

Source: http://www.insurancedaily.co.uk/2008/04/15/takaful-market-booming-in-gcc/

Full study at E&Y:

http://www.ey.com/global/content.nsf/UK/_Islamic_Financial_Services

Business Intelligence reported on 13 April that International Investment Bank (IIB), a globally-focused Islamic investment bank based in Bahrain, announced the successful initial public offering of ARTES, the exclusive distributor of Renault, Nissan and Dacia in Tunisia.

Aabed Al-Zeera is Chief Executive Officer of IIB.
Mohamed Hadi Mejai is Executive Director, Investment and Business Development, IIB.

Source: http://www.bi-me.com/main.php?c=3&cg=2&t=1&id=19150

Shami Bank released on 13 April the successful closure of its USD 90 mn Shamil Bosphorus Modaraba, an investment vehicle with an expected 60 % over three years focussing on residential and mixed-use real estate developments in Istanbul, and secondary homes on the Turkish coast.

The total cost of the projects targeted is approximately USD 450 mn. Shamil Bank subscribed to 10 % of the USD 90 mn.

Abdul Hakim Al Mutawa is Investment and Private Banking Head of Shamil Bank.

http://www.arabianbusiness.com/index.php?option=com_pressreleases&view=d...

Kuwait Finance House aims to re-arrange Bahraini investments according to a report by Ulf Laessing on Reuters on 11 April, citing Al Watan newspaper. KFH shall attempt to invest USD 1.5 bn in Real Estate Investment in Bahrain.

Source: http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/id...

ProLogis released on 8 April that they entered into a 50/50 joint venture agreement to create ProLogis Middle
East with Arcapita, an Islamic investment bank based in Bahrain. The Joint-Venture will develop and acquire a USD 1 bn portfolio of advanced
logistics warehouse space in the Gulf Cooperation Council (GCC) region.

Jeff Schwartz is chairman and chief executive officer of ProLogis.
Atif Abdulmalik is chief executive officer of Arcapita. "
Joseph Ghazal is senior vice president and head of
ProLogis Middle East. "

Companies:
http://www.prologis.com
http://www.arcapita.com

Source: http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/0...

Gulf News reported on 11 April that Gulf Finance House aims to develop the USD 10 bn Caspian Energy Hub in collaboration with the Government of Kazakhstan and PFC Energy International and signed a Memorandum of Understanding. The project, shall be a services hub that caters to commercial, technical and human resource needs of the oil and gas industry in the Caspian region. The hub also aims to become a global technical training centre for the oil & gas industry.

Esam Janahi is chairman of Gulf Finance House, Vahan Zanoyan is CEO of PFC Energy International and both presented the concept to Kazakhstan President Nursultan Nazar. Ulf Wokurka is deputy chairman of the Management Board of Kazakhstan Holding for Management of State Assets. Gani Uzbekov is deputy chairman of the Board of Sustainable Development Fund called "Kazyna".

Source: http://archive.gulfnews.com/business/Oil_and_Gas/10204695.html

Talal Malik reported on 7 April 2008 that the Bahrain-based International Islamic Financial Market (IIFM) said to finalise soon the standardisation for a Master Murabaha Agreement called Master Agreement for Treasury Placement (MATP). The Agreements are under final review by Sharia scholars.

Khalid Hamad is chairman of IIFM.

Source: http://www.arabianbusiness.com/515834-bahrains-iifm-drawing-up-islamic-f...

Business Intelligence Middle East reported on 4 April about the planned 50:50 Joint-Venture between Ahli United Bank and UK-based Legal & General Group. Both parties agreed to set up a takaful life, pension plans and health insurance provider, subject to necessary regulatory and statutory approvals. The authorised capital is reported at about USD 200 mn, of which USD 25 mn will be initally paid up. Operations shall start later the year.

Mr Fahad Al Rajaan is Chairman of Ahli United Bank

Source: http://www.bi-me.com/main.php?c=3&cg=2&t=1&id=18873

Bahraini and GCC investors plan to establish an Islamic stock market in Bahrain. The stock market is part of the proposed Islamic mega bank project, which is said to have received licence from Central Bank of Bahrain.

Businessman Shaikh Saleh Kamel is quoted to have said that the bank aims for a capital of USD 11 bn, of which USD 1 bn are administrative shares for the bank's strategic investors, among them Al Baraka Group, a Kuwaiti bank, Saudi Investment Bank, Islamic development Bank and Bahrain Islamic Bank.

The mega bank is supposed to launch USD 33 bn worth of investment funds in regional and international markets.

Source:
http://www.gulf-daily-news.com/Story.asp?Article=212659&Sn=BUSI&IssueID=...

ABC Islamic Bank (the Initial Mandated Lead Arranger and Bookrunner) launched general syndication for Kuwaits Munshaat Real Estate Projects Company ("Munshaat"). ABC Islamic Bank had successfully closed the senior phase of the US$100 million, 3-year Syndicated Revolving Murabaha Financing Facility.
 
Prior to general syndication BNP Paribas, Emirates Bank International PJSC, and Saudi British Bank joined the facility as Mandated Lead Arrangers at the senior stage.
 
This is the debut syndication for Munshaat and the funds will be used to finance development of prime properties in the Holy Haram area in Makkah and Madinah in Saudi Arabia. Athman Investment Company, Kuwait is acting as the financial advisor to Munshaat Real Estate Projects Company for this financing.
 
Summary of the facility is as follows:
 
Borrower: Munshaat Real Estate Projects Company K.S.C.
 
Amount: US$100 million
 
Facility Type: Revolving Murabaha Financing Facility Purpose: Financing of prime properties in Makkah & Madinah
 

Arthur Macdonald reported in Gulf Daily News that the Sukuk market has suffered from the global financial crisis, but it is likely to recover. It impacted pricing and access to investors. Further the discussion on the Dollar peg of Gulf currencies created addtional uncertainties. Nevertheless the market has grown in ten years from millions to billions, participants of a Sukuk conference in Bahrain said.

Source: http://www.gulf-daily-news.com/Story.asp?Article=211884&Sn=BUSI&IssueID=...