IslamicFinance.de

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.

The Investment Corporation of Dubai (ICD) is in talks with banks to launch its first Islamic bond, in order to diversify its funding sources. The deal will reportedly be completed this year. A source at ICD said the fund had no plans for a sukuk, but is turning to the Islamic bond market because of potential legislation capping lending by local banks to government related entities. Separately, ICD is also talking to bankers over a US$2bn loan due to mature in August, with refinancing the likely option.

Oman's Capital Market Authority (CMA) is encouraging consolidation in the country’s crowded financial sector, aiming in the long term for local banks to build a regional presence in the Gulf region. There are now 18 banks in the sultanate, whereas Oman’s three largest lenders account for approximately two-thirds of banking assets. According to Abdullah Salem Al Salmi, CMA’s executive president, the crowded field could lead to cutthroat competition, which would be unhealthy for the market and cause new entrants to struggle. However, he did not specify any ways in which the CMA might encourage consolidation.

Bank Nizwa is going to request the Central Bank of Oman (CBO) for allowing the bank to get relaxation in deploying funds in overseas markets for a certain period, until Sharia-compliant products are available within the domestic market. Dr Jamil Jaroudi, Chief Executive Officer of Bank Nizwa said there are restrictions in the new law that do not allow Islamic banks to achieve their full potential. The law for sukuk and takaful need to be issued, and the banking regulations have to be adjusted in order to attract Islamic investment, he added. The CBO needs to frame regulation for short-term instruments, which will allow Islamic banks to deploy their excess liquidity.

The markets for Islamic banking, insurance and sukuk bonds have all seen solid growth in recent years, but the sharia-compliant fund industry remains tiny. According to Hasan Al Jabri, chief executive of Saudi Arabia’s Sedco Capital, the growth of sharia-compliant investment has been stunted by a reputation for a lack of diversity, poor performance and high fees. Since May 2012, Sedco Capital has been building what is believed to be the largest sharia-compliant fund platform in Luxembourg. Its five vehicles hold $900m of assets. Sedco is currently launching two more vehicles. Mr Al Jabri emphasized that their investments are responsible, help creating value for the economy and jobs.

The CMA Board has issued its resolution approving Bank Albilad’s request to increase its capital from SAR (3,000,000,000) to SAR (4,000,000,000) through issuance of bonus shares. One bonus share will be issued for every (3) existing shares owned by the shareholders who are registered in the shareholders registry at the close of trading on the day of the extraordinary general assembly. Such increase will be paid by transferring an amount of SAR (1,000,000,000) from retained earnings account to the Company's capital. Consequently, increasing the Company's outstanding shares from (300,000,000) shares to (400,000,000) shares, by an increase of (100,000,000) shares.

The conference "Succession Planning 2013" organized by Abu Dhabi University Knowledge Group will be held in Dubai on 25-26 February 2013. The two-day forum will present case studies from family businesses, multi-national corporations and government organizations in the GCC region. Senior C-level Suite Representatives, HR professionals and talent management experts from the public and private sector are going to discuss the importance of implementing succession planning strategies to ensure business continuity and reduce corporate risks.

Saudi Arabia issued final regulations on real estate financing, leasing and supervision of financial companies. The regulations outlining three of the five laws were posted Sunday on the website of the Saudi Arabian Monetary Agency. Rules on the enforcement of foreclosures and mortgage registrations have yet to be completed. The package goes into effect when regulations for the two remaining laws are finished and once the final version of the legislation are publicized in the official newspaper, which should be in the next few weeks. The regulations bar mortgage lenders from providing loans for other purposes and prohibit home-financing providers from developing property.

Qatar Islamic Bank (QIB) has charted out a five-year global investments strategy to help anchor the Bank’s position as an Islamic financial institution of international stature. According to the Bank Chairman Sheikh Jassim bin Hamad bin Jassim bin Jabor Al Thani, QIB seeks innovation and diversification of its credit portfolio, support for small and medium enterprises, expansion of foreign investments, and maximisation of total profits. QIB recorded a net profit of QR1.24bn for the year 2012. Growth was also registered in other financial positions, such as total assets, customer deposits and total income.

A new type of sukuk, introduced by Gatehouse Bank, could make inroads in the market by offering greater security to investors through a structure similar to conventional covered bonds. The Gatehouse sukuk incorporates a purchase undertaking by the bank that gives primary security to noteholders, while in case of default they have secondary security on the property. It is based on an ijara (lease) contract which is commonly used in Islamic finance. Moreover, by adding the second layer of security, the Gatehouse sukuk effectively became asset-backed and not only asset-based. The Gatehouse sukuk pays a 3 percent annual distribution and offers quarterly redemption options.

RAM Ratings has received confirmation from the facility agent that Al-‘Aqar Capital fully redeemed all the outstanding Class A Islamic Medium-Term Notes (IMTN), Class B IMTN, Class C IMTN and Islamic Commercial Papers (ICP) under its MYR 300 million Sukuk Ijarah Programme (2008/2013). RAM has withdrawn the respective AAA, AA2, AAA(bg) and P1 ratings of Al-‘Aqar Capital’s Class A IMTN, Class B IMTN, Class C IMTN and ICP, and no longer has any rating obligation on the debt facility.

Ithmaar Bank has formally concluded a merger with First Leasing Bank (FLB), which involved a swap of four Ithmaar Bank shares for each FLB share. The merger enhances Ithmaar's capital base as well as its capital adequacy ratios. It also improves Ithmaar shareholders' profile. According to Ithmaar Bank chief executive Mohammed Bucheerei, the merger will consolidate Ithmaar Bank's position as an Islamic retail bank and create powerful new synergies, improving efficiencies and reducing costs. The necessary procedures in co-ordination with the Bahrain Bourse to merge the registrar of FLB shareholders to the registrar of Ithmaar shareholders are expected to be completed shortly.

According to a report from Standard and Poor’s, an increasing number of African countries are considering issuing sukuk to fund their huge infrastructure needs and to diversify their investor base. South Africa, Nigeria, Senegal, and Mauritania have all announced in recent years their intention to issue sukuk bonds. Moreover, following the Arab spring and the rising influence of Islamist parties in some countries, the development of Islamic finance has gained importance for their governments, for example in Egypt and Tunisia. Standard & Poor’s believes that sukuk issued by African sovereigns could address an investor base in the GCC or at the Islamic Development Bank.

Following approval from the Securities and Commodities Authority, Dubai Islamic Bank (DIB) has published its formal offer for the shares in Tamweel. Tamweel shareholders will receive 10 new DIB shares for 18 Tamweel shares. They will receive a copy of the offer, the offer statement and the acceptance form by mail and can accept until 5pm on Saturday, March 16. DIB’s offer is subject to final approval from its shareholders and will be presented to them at an extraordinary general meeting to be held on March 3.

The Islamic Bank of Thailand has experienced deposit runs due to worries about its financial stability. The state-controlled bank reported some 5 billion baht worth of withdrawals over the past two weeks following reports of its weakening financial status. The government is now to move quickly to reassure the public the bank will have full government support. Prawat Uttamote, a Pheu Thai party list MP and deputy chairman of the border affairs committee said the bank's restructuring plan estimates that 50% of the bad loans or 12 billion can be recouped within the next two years. Therefore, the bank is in no imminent danger, he added. Prime Minister Yingluck Shinawatra separately stressed that deposits in the banking system are fully protected under the Deposit Protection Agency.

International business leaders and in-house counsel gathered at the Patton Boggs office in Doha yesterday for an in-depth briefing on recent developments in U.S. and UK Anti-bribery laws, implications and compliance measures. Patton Boggs Partner and International practice Chair Joseph Brand lead a discussion on the U.S. Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act. The seminar held aimed to foster a more comprehensive understanding of the anti-bribery laws among U.S. and UK companies. It was the first in a series of seminars to help businesses operating in the Gulf to be compliant.

Middle Eastern business leaders gathered to discuss "Economies of Freedom: Reshaping the Future of the MENA region" at the second annual Wharton MENA Business Conference on Feb. 16, which was held in Philadelphia. Iraqi entrepreneur Shwan Taha, one of the panelists at the conference, advised the young audience to invest in frontier markets in whichever sector that could serve the young generation. Joe Saddi, who heads Booz & Company added that logistics is a big opportunity. The general recommendation for young US MBA students was to invest their time and business strengths into an uncertain environment instead of worrying about the unemployment statistics from MENA countries.

The Cabinet, under Prime Minister Hisham Qandil, stressed that the now-debated Sukuk is not an alternative to the other financing tools. The final blueprint of the Sukuk bill will be presented to the Cabinet next Wednesday 27/2/2013 after taking into consideration all remarks made by al-Azhar, the Central Bank of Egypt and investment associations. If approved, it will be referred to the Shura Council for endorsement on the same day. On the other hand, The Cabinet reviewed the security situation and urged protesters in Tahrir Square to allow the flow of traffic for the sake of citizens.

The selection meeting for the 8th edition of the Islamic Development Bank prize for "Women's Contribution to Development" was held on February 18-20 2013 at the bank's head office in Saudi Arabia. The annual IDB Prize for Women's Contribution to Development is one of the many activities the bank engages in for the purpose of socio-economic development of societies. Effat University (EU) was entrusted to be the Academic Consultant hence handle the screening and short listing of candidates. There were two categories of prizes, one for individuals that carries a cash award of 50,000 US dollars, and another for organisations with a 100,000 US dollars award. For this year, the Panel received 108 files.

Qatar-based Barwa Bank arranged $863mn of notes in 2012, and is therefore the eighth-biggest underwriter out of 25 for GCC sukuk. Barwa Bank chief executive officer Steve Troop said that there was a space for an institutional Islamic bank to focus on sukuk. Barwa Bank which started operations in the third quarter of 2009 will wait until releasing first-half results before pursuing a credit rating. Moreover, it is preparing to sell shares in an initial public offering and is being advised by QInvest.