IslamicFinance.de

In a recent interactive session with journalists in Lagos, Mohammed Bintude, Manging Director and Chief Executive Officer of Jaiz International Bank, discussed the intoduction of Islamic banking in Nigeria. He stated that in spite of the initial controversial reception, Jaiz Bank Plc is now fully operational. Moreover, there are plans of nation wide expansion of the bank.

The AAA(s) rating of Muhibbah Engineering Bhd's RM130 million Islamic Bonds has been reaffirmed by RAM Ratings. Thus, Muhibbah's irrevocable and unconditional undertaking to purchase and cancel all the Islamic Bonds at the exercise price upon the declaration of an event of default is honoured. The support of Malayan Banking Berhad's guarantee will have a positive impact on the credit profile of the Islamic Bonds beyond Muhibbah's inherent or stand-alone credit standing.

As soon as the Central Bank of Oman grants the National Bank of Oman the final guidelines and the necessary approvals, the latter can offer Islamic Banking products. Also, it has launched its own Sharia compliant brand named ‘Muzn’.

Qatar's Islamic bank Masraf al Rayan has set up an independent brokerage subsidiary. Its purpose will be to offer a number of Shariah-compliant financial instruments for all types of investors. Although Al Rayan Financial Brokerage Company will be wholly owned by Masraf Al Rayan bank, it will operate as an independent subsidiary.

In Malaysia, there was a discussion whether to continue tax incentives for Islamic finance or to use tax-break pick-ups to lubricate the sector. Since some of the incentives were aimed to make Islamic finance competitive with conventional finance, they should at some point be phased out. However, incentives which ascertain the equity between Islamic and conventional finance, should be maintained.

Bahrain based Tadhamon Capital B.S.C. and London based Apache Capital Partners, both investment companies, have completed the acquisition of Central London student accommodation development - Paris Gardens. The development itself was planned to be finished in September 2013. The property in the London Borough of Southwark will provide student accommodation of 253 beds.

A group from Aabar Investments plans to set up the first Islamic bank in Oman - Al Izz Islamic Bank. The promotion of the bank is conducted under the supervision of Abu Dhabi's Aabar , Oman's Huriah Company and Dubai-based Tasameem Real Estate Company. The bank's role will be to provide comprehensive business and retail Islamic banking solutions in accordance with Omani law.

At the 12th meeting of the Centennial Fund's board of trustees works of the fund and a strategic plan until the year 2020 were revisited. The goal of the plan is to boost small and medium enterprises (SMEs). A large number of projects will receive money from the fund. The new strategy also aims to increase the amount of jobs and to fight poverty and unemployment.

A huge number of experts in Islamic finance are needed due to continually emerging markets in India and abroad. Since already 75 banks all over the world have Islamic banking and finance branches, job opportunities for as much as 50,000 experts are open. Among these corporate banks are e.g. HSBC, Citigroup, Deutsche Bank and Standard Chartered.

Shortly after Securities and Exchange Commission of Pakistan (SECP) waived the previous conditions that forbade conventional insurance companies from launching Takaful operations, State Life Insurance Corporation came with news. The largest insurance company in the country plans to launch its own new range of Islamic insurance within a year. Currently, they are assessing target market for Takaful.

The world’s third-largest asset-management company - Franklin Templeton Investments is starting its first Islamic funds. Following the steps of companies like BNP Paribas, Templeton will start three sukuk and stock investment vehicles in Luxembourg in the next couple of months. Thus, they aim to win business in the Muslim world.

Today is the start date of the new Islamic Equity Index. It debuts on the Nigerian Stock Exchange (NSE) and aims to contribute to the expansion of the Nigerian market. NSE's management has signed a Memorandum of Understanding (MoU) with Lotus Capital Limited, according to which the “NSE Lotus Islamic Index” (with the code NSE LII) will be compliant with the principles of Shari’ah.

On time for Ramadan, Takaful IKHLAS Sdn Bhd just started its corporate social responsibility (CSR) programme which aims to demonstrate the value of helping one another. As part of the programme, bank representatives visited a poor familiy and grantd them RM500 in cash and daily supplies worth RM300.

Albaraka Türk has authorized a number of leading banks to arrange a a $250 million dual-currency syndicated finance facility. This facility shall be used for the expansion of Albaraka Türk's financing activities in Turkey. The tenor of the facility is one year and its profit rate is of 200 bppa over the Libor/Euribor. Among the participating banks are ABC Islamic Bank, Al Hilal Bank, Bank Islam Brunei Darussalam Berhad, Emirates NBD Capital, Noor Islamic Bank and Standard Chartered Bank.

Until now, Malaysia has been focusing mainly on the takaful business, wich is not concidered enough any more. Malaysian bank should offer more innovative Islamic financial products as well. According to Chief Executive Officer of the Islamic Banking and Finance Institute Malaysia (IBFIM) - Datuk Dr Adnan Alias - it is essential for the development of Islamic economics, finance and entrepreneurship to be enhanced.

Even though Islamic finance has been thriving in Malaysia, a country with one of the most established and regulated Islamic finance frameworks, it is hardly present on the global Islamic finance market. Moreover, the majority of local banks tako part in neither the global syndication market nor the sukuk market. Therefore, confidence has to be built up in order for Malaysian banks to stop peceiving themselves as inferior to other syariah-compliant frameworks.

Background on the situation of Syrian refugees is provided by the UNHCR on its website:

http://data.unhcr.org/syrianrefugees/uploads/SyriaRRP.pdf

Donations are possible via:

http://donate.unhcr.org/syria?utm_source=general-donation-button&utm_med...

Murabaha Financing Facility (the "Facility") was launched into general syndication inviting numerous banks world-wide to participate. Among them are ABC Islamic Bank (E.C.), Al Hilal Bank PJSC, Bank Islam Brunei Darussalam Berhad, Emirates NBD Capital Limited ,, Noor Islamic Bank PJSC and Standard Chartered Bank (together the "Initial Mandated Lead Arrangers" and the "Bookrunners"). Together with Albaraka Türk Kat?l?m Bankas? A.?. ("Albaraka Türk"), a US$ 250 Million equivalent Dual-Currency was arranged. Albaraka Türk will use financing under the facility in order to expand its financing activities in Turkey.

The Development Bank of Kazakhstan issued the first sukuk in the former Soviet Union worth $75 million. It is expexted that this sukuk will soon be followed by a number of new issues in the country. The issued bond will generates an annual payment of 5.5 per cent and is a part of the bank's Islamic note programme worth 1.5 billion ringgit. THe programme is subjected to the sharia principle of murabaha.

Additional costs for issuing an Islamic bond no longer have to be paid - the "sukuk premium" is gone. As a senior executive at Deutsche Bank explained, this will result in a hige increase in sukuk issuance. At the same time, tenors will become longer. Until last year, the reasons of common premium payment were that issuers catered to a smaller investor base. Also, in comparison with conventional bonds, investors were little familiar with sukuk structurs. This is now not the case any more since a heavy investor demand for sukuk this year can be observed.