IslamicFinance.de

At a networking event organised by ACCA (Association of Chartered Certified Accountants) in Manama, His Excellency Dr Abdul-Hussain Bin Ali Mirza, Minister of State for Electricity and Water Affairs, said that the financial scandals of the past have led to a general loss of trust and confidence in auditors. Finance professionals working in Bahrain and the Middle East have been urged to ensure working to the highest ethical standards in order to avoid such scandals. Ethics and integrity are at the heart of ACCA's Competency Framework. The vast majority of Chief Financial Officers said it was important to have a good understanding of professionalism and ethics besides finance expertise and capabilities.

Bahrain's Arcapita Bank is seeking more time under U.S. bankruptcy court protection as it continues talks with its creditors over the details of its plan to wind down its portfolio companies. In a filing Tuesday in New York, Arcapita's lawyers asked U.S. Bankruptcy Judge Sean Lane to approve an extension of its exclusive right to lobby creditors for support of its plan through July 7. The current solicitation period ends April 9.

Dubai Islamic Bank is likely to issue a benchmark-sized Islamic bond on Wednesday after receiving orders in excess of $10 billion. Dubai Islamic Bank perpetual sukuk may yield 7% annually.

Qatar Islamic Insurance Company ( QIIC ) Chairman Sheikh Abdulla bin Thani Al Thani has said that his firm would pursue its strategic plans for the Years 2013-2015 to ensure its continued growth. The company recorded good results in 2012 by generating a premium of QR206m and aggregate net profit of QR74m. The shareholders' profit reached QR58m, constituting earnings per share of QR3.5. The general assembly on Sunday approved the company's nine-point agenda, including its financial statements for the year 2012 and election of two people in the current QIIC Board of Directors.

In order to achieve achieve economic outcomes which are similar to the economic outcomes achieved by conventional finance, transactions that are undertaken in Islamic finance typically require more component steps. These additional transactions are at risk of being subject to transfer taxes or to taxes on income or gains. The tax treatment of four common Islamic finance structures, commodity murabaha, sukuk, salaam and istisna in eight MENA region countries: Egypt, Jordan, Kuwait, Libya, Oman, Qatar, Saudi Arabia, Turkey and in the Qatar Financial Centre were reviewed in this report.

According to a report released by MyHiringClub.com, Kuwait ranks 35th globally, Oman 37th, Bahrain 40th, UAE 42nd and Saudi Arabia 44th in a list that evaluates countries with women serving on company boards and top managerial levels. GCC economists said local business community is need of women's participation in company boardrooms. Saudi Arabia' share is 54 percent of total women labor force in the GCC region. This will allow the women to go beyond their traditional role and make remarkable progress in the area of labor, education, and socioeconomic development. The number of businesses registered for Saudi women stood at nearly 36,200 which represents 4.7 percent of total registered businesses in the Kingdom. The volume of women investments in businesses has so far reached SR 3 billion, which represents 4.3 percent of the total number of private sector companies in Saudi Arabia.

Abu Dhabi Islamic Bank (ADIB) has signed an agreement to provide financing facilities for AED 500 million to Dubai Airport Freezone (DAFZA). The financing will be used to expand DAFZA's key offices buildings, business centre and food court which are due to be completed in 2015. The agreement was signed at DAFZA's headquarters by Dr. Mohammed Al Zarooni, Director General of DAFZA and Tirad- Al Mahmoud, CEO of ADIB. The project is in line with HH Sheikh Mohammed Bin Rashed Al Maktoum's initiative to make Dubai the Global Capital of Islamic economy.

A company is sharia-compliant if it conducts its business according to sharia stipulations, and accommodates Islamic principles and disciplines in its business structures, setups, and operations. There are several stipulations, that a business should comply with in order to follow shariah principles. These include full disclosure and honesty with customers, quality customer service and finding ways to serve social, developmental or environmental causes conducive to your direct business lines. Prohibited activities for sharia-compliant companies are among others borrowing and lending with interest, investment in alcohol, gambling, weapons and pork as well as activities that harm the environment.

Ernst & Young signed a working agreement with Accounting and Auditing Organization for Islamic Financial Institutions ( AAOIFI ) to assist in Sharia certification of Core Banking Systems (CBS) used by Islamic banks. On the back of this mandate, Ernst & Young is launching its new Advisory Solution, CBS Sharia Assessment, to assist international and regional technology firms. The certification programme will assess CBS services to ensure that they conform to the approved global Sharia and accounting standards.

Dubai's Noor Investment Group and a government-run charitable foundation have agreed to set up a joint venture company that will manage funds on behalf of Islamic charities in the United Arab Emirates and beyond.

Safa Investment Services received this week its official certification for Shari'a compliance from Shariyah Review Bureau. It makes Safa Investment Services the first Islamic global asset management business in the world. Safa permits customers to benefit from global asset diversification of their managed accounts, but with a complete respect for the principles of Islamic law. This includes not only selecting securities that meet global regulatory standards, but also the process to manage accounts and the contracts under which they are managed.

The UAE insurance market is the largest and most developed insurance market in the Gulf region in 2011 where insurance premiums during the period recorded a 10% increase compared with 2010. UAE's insurance market has doubled in volume and achieved a CAGR of 21% through to 2010. The market, however, remains dominated by non-life insurance, which still accounts for 85% of total premiums. A total of 61 insurers operated in the country in 2011. The UAE government is working on reforms to implement a comprehensive legal framework in order to expand the insurance industry in its different forms.

Adib Alzamil has been elected as the new chairman of the board of directors of Jadwa Investment, suceeding Prince Faisal bin Salman. Alzamil is a senior member of the Zamil Group, where he is currently MD of finance and investments and serves on the board of directors and executive committee. He was MD of Zamil Industrial Investments Company from 1998 to 2004, and remains a member of its board of directors. He also serves on the boards of Sanabil Al-Saudia, Bank Albilad, Fajr Capital, Methanol Chemical Company, and Dana Gas. Alzamil holds a bachelor's degree in business administration from Portland State University.

Oman's non-banking financial companies (NBFCs) posted decent growth in income and profits in 2012. And analysts believe that the sector will see strong growth in 2013 on the back of project and infrastructure spending by the government. An analysis of the six listed NBFCs shows that aggregate income rose 11.94 per cent to RO65.30mn in 2012, while their combined net profit rose 17 per cent to RO24.14mn. NBFCs expect some competition for the leasing sector from Islamic banks, especially in auto financing.

Several industry sectors, led by the banking and financial segment, are set to increase hiring due to large-scale projects announced recently in the country. Sectors that are expected to see strong hiring this year are banks, oil & gas, and petrochemicals as well as construction and real estate, according to leading recruitment advisors. The National Career Exhibition will showcase employment and training opportunities at more than 100 leading financial institutions in the country. It will be held from February 20 to 22, 2013 at Expo Centre Sharjah. The admission is restricted to UAE Nationals only.

Al Khonji Real Estate & Development (Aqar) signed today that it has hired the services of Shariyah Review Bureau (SRB), to advice and supervise its future course of actions and transactions in light of Shari'a principles. Mohamed Al Khonji, Chairman/CEO, said that it has decided to spread its wings in the real estate market while ensuring it is truly Shari'a compliant. The assignment of Shariyah Review Bureau is expected to help developing an enterprise-wide Shari'a compliant framework, which will cover compliance with Islamic finance across all function streams in Aqar.

The sukuk, which comes amid a period of high demand and a flurry of bond sales in the region, is to be launched by the end of April in the name of Dubai Investments Park, a major real estate development Dubai Investments owns on Dubai's outskirts.

United Gulf Financial Services - North Africa has announced the launch of its 'Themar Investment Fund', with a capital of TND 50 million (approximately US$ 32 million). The fund targets small and medium Tunisian institutions seeking financing in different business sectors that support the Tunisian economy. Priority is given to existing and restructured projects in urban areas. According to Mohamed Fekih, Chairman of UGFS - North Africa, the fund will contribute to boost and diversify the Tunisian economy as well as increase Foreign Direct Investment and further develop Islamic banking in the country.

Egypt's Principal Bank for Development and Agricultural Credit (PBDAC) is launching sharia-compliant retail banking services this month to meet increasing demand in rural areas. According to Abdel Rahman Al Kafrawi, head of Islamic transactions at PBDAC, the bank will offer retail finance at 18 Islamic branches through murabaha and musharaka structures. The new Islamic services cover areas including purchases of durable goods and agricultural equipment, the setting up of clinics and medical laboratories, and the financing of education fees. PBDAC launches its new services with a portfolio of 50 million pounds ($7.5 million), that can be raised to 100 million next June based on demand.

3BL 'Triple Bottom Line' Associates (3BL), Bahrain's first social impact and sustainability consultancy, has released the results of the Bahrain Responsible Business Survey. According to report, the most popular understanding of corporate social responsibility (CSR) is community engagement. Whereas, the most prevalent CSR activities are: Community Engagement, Employee Wellness, Transparency, Corporate Governance, Health and Safety, and Gender Equality and Diversity. The importance given to the environment among survey respondents was much lower than for social responsibility.