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Dubai Investments announced the establishment of a new Islamic bank called Arkan Bank. It will be the first home-grown, wholesale Islamic Bank operating from Dubai International Financal Centre. It will have an initial paid-up capital of $100 million and another $200 million will be raised after 12 months of its establishment through listing on Nasdaq. CEO Khalid Bin Kalban said Dubai Investments will initially hold a 25% in the bank and would aim to retain a stake of that size. He added that Arkan Bank's core business lines would be corporate banking, asset management and awqaf, investment banking and treasury. Arkan Bank initially plans to focus on the GCC region and subsequently build scale to become the top-tier Islamic wholesale bank in the region.

Dubai Investments announced the establishment of a new Islamic bank called Arkan Bank. It will be the first home-grown, wholesale Islamic Bank operating from Dubai International Financal Centre. It will have an initial paid-up capital of $100 million and another $100 million will be raised after 12 months of its establishment through listing on Nasdaq. CEO Khalid Bin Kalban said Dubai Investments will initially hold a 25% in the bank and would aim to retain a stake of that size. He added that Arkan Bank's core business lines would be corporate banking, asset management and awqaf, investment banking and treasury. Arkan Bank initially plans to focus on the GCC region and subsequently build scale to become the top-tier Islamic wholesale bank in the region.

The Rental Disputes Center (RDC) has received a generous donation of AED 500,000 from Emirates Islamic Bank to support insolvent tenants in rental claims disputes. The RDC has already set up the "Yad Al Khair Committee" to study the cases that require support from the donation. Awatif Al Harmoodi, General Manager of Operational Quality & Processes at Emirates Islamic Bank, said Emirates Islamic Bank is keen to expand its corporate social responsibility strategy to cover all segments of the UAE and will continue to cooperate with the RDC.

Al Hilal Bank has announced the dividend payout of the Al Hilal Global Sukuk Fund. The Fund, which was launched in March 2012, distributed a 3.93% dividend to all registered unit holders. Al Hilal Bank CEO Alex Coelho said the Fund had registered excellent cumulative total returns since its inception in 2012. Al Hilal Bank currently offers 3 open-ended mutual funds inclusive of the Global Sukuk Fund. In 2017, Al Hilal Global Sukuk Fund was awarded the title "Best Fund over 3 years", while the GCC Equity Fund received the "Best Islamic Fund" award in 2013 and 2014. The bank plans to continue launching investment products as part of its ongoing efforts to create value and increase diversification for its clients.

A London High Court judge again ruled in favour of creditors in a dispute over whether Dana Gas must repay $700mln sukuk. Judge George Leggatt rejected an attempt by the company to overturn his decision last November that the purchase undertaking behind the sukuk was valid and enforceable. There was no immediate comment from Dana.

Saudi SEDCO Capital announced the offering of its first Shariah-compliant real estate investment traded fund SEDCO Capital REIT. The fund will be offered to the general public through an initial public offer during the period of Jan. 24 to Feb. 6. With an occupancy rate of over 92%, SEDCO Capital’s real estate portfolio has grown to include seven assets across various geographical regions. According to CEO Hasan Al-Jabri, SEDCO Capital Real Estate Income Fund targets to generate an initial net yield of 7% through the acquisition of additional assets and by utilizing capital. To facilitate the offering period, three receiving entities were appointed for investors to subscribe, these include NCB, Al Rajhi Bank and Samba Financial Group.

Bahrain's Salam Bank will launch Islamic insurance products and Visa credit card services in Algeria this year. Salam Bank CEO Hideur Nasser said the lender would open 10 more branches in the country as the market for Islamic products was growing. He added that Islamic banking made up only 15.5% of the private sector in Algeria. The government wants to develop the sector, as the country looks for more ways to offset the sharp fall in oil prices and its energy revenues. For this, technical expertise and new legislation is needed in a country where powerful elites have resisted changes. Nasser said the legal framework had to be amended and sukuk could not be sold under current laws despite great appetite for them.

The Dubai Islamic Economy Development Centre (DIEDC) has enrolled as an observer member of the Responsible Finance & Investment (RFI) Foundation. DIEDC and the RFI Foundation will collaborate towards the common goal of shifting the focus of the financial sector from accumulating wealth to supporting equitable, inclusive, and sustainable growth. As a member, DIEDC gains access to the RFI Foundation’s research and its diverse network. Abdulla Mohammed Al Awar, CEO of DIEDC, said by joining the RFI Foundation, the efforts of the two entities integrate to identify universal principles that guide responsible finance. Blake Goud, CEO of the RFI Foundation, welcomed DIEDC as an observer member. He added that DIEDC was a valuable addition to the RFI Foundation’s member community that includes multilaterals organisations, commercial banks and asset managers.

The total size of the global Islamic finance assets is projected to grow by nearly 72% to $3.78 trillion (Dh13.87 trillion) by 2022 from $2.2 trillion (Dh8 trillion) last year. According to the Islamic Finance Development Report, Malaysia topped followed by Bahrain, the UAE, Oman, Pakistan, Kuwait, Saudi Arabia, Jordan and Brunei in terms of industry growth. The report studied key trends across five indicators: quantitative development, knowledge, governance, corporate social responsibility and awareness. Khaled Al Aboodi, CEO of the Islamic Corporation for the Development of the Private Sector, said Islamic finance was still tiny in comparison with the global financial industry, but the industry's rapid development suggested it would continue to grow.

In the GCC there are only a few corporate entities that currently issue sukuk. GCC governments have so far prioritised external capital market funding for plugging fiscal deficits rather than for corporations. Prevailing subdued oil prices continue to lead to fiscal deficits for GCC nations. According to S&P analysts, governments are yet to be fully convinced of the merits of the private finance model for infrastructure. The GCC corporate and infrastructure sukuk market has yet to exceed double-digit growth in issuance or to attract a wider variety of entities. The Dana Gas restructuring announced in May also influenced sukuk activity in the third quarter of 2017. At the moment, it remains unclear what ramifications the Dana case would have for the sukuk market.

Islamic banking is a growing industry, however still much smaller than conventional finance, even in Muslim majority nations. In the UAE, 76% of residents are Muslim, yet Islamic banks only hold 19% of banking assets. The question is: why would Muslims choose conventional banks when Halal options are available? Research has found that the chief reason was a better rate of return. A recent study shows that 25% of Islamic banking customers preferred conventional banks and products when interest rates were the same. When conventional banks offer 1% better interest rates, the share that would switch to conventional banks rose from 25% to 44%. About 25% of Islamic banking customers came to it because of their employers, while 35% use both Islamic and conventional banks. A group of about 40% of Islamic banking customers are truly loyal to Islamic banking, most likely for religious reasons.

The first phase of the King Abdullah Financial District project is due to be launched next year. The business hub in Riyadh has been under construction since 2006 and will soon get a fresh lease of life under the management of the kingdom’s sovereign wealth fund. The Saudi Public Investment Fund (PIF) will take over the management of the King Abdullah Financial District from the Public Pension Agency. As outlined in the Saudi Vision 2030 plan, the new hub is to be an economic free zone with visa exemptions and a direct connection to the airport. The government is now exploring new incentive options to attract financial institutions to occupy space in the district. The 73-building development has been restructured to reduce office space and increase the number of residential units.

Saudi Arabia's Public Investment Fund (PIF) has finalized a deal to take over the management of the King Abdullah Financial District from the Public Pension Agency. As outlined in the Saudi Vision 2030 economic reform plan, the financial district is to be an economic free zone with visa exemptions and a direct connection to the airport. The first phase of the project is due to launch next year with plans to host the G-20 meeting there in 2020. The government is now exploring new options to attract financial institutions to occupy space in the district. The 73-building site has been restructured to reduce office space and increase the number of residential units. PwC and local regulator Capital Market Authority are among the companies due to take space in the area.

Although Islamic banking and Sukuk comprise the lion’s share of Islamic finance assets, there are significant untapped opportunities in the securities, equity markets, investment funds, insurance and microfinance markets. For Islamic finance to flourish, time would be more valuably spent creating new financial products that are Shari'ah-based rather than adapting existing conventional products to become Shari'ah-compliant. The innovative magic is in the roots, not the branches. On 14 November 2017, the Dubai International Financial Centre (DIFC) will host the Global Financial Forum (GFF). The invited industry experts are set to provide valuable insights on the progression of the sector and innovation in Islamic finance.

Islamic banks in Bahrain have until June-end next year to fully comply with new standards mandated by Central Bank of Bahrain (CBB). According to CBB executive director for banking supervision Khalid Hamad, the new Islamic banking legislation, where independent external scrutiny is a mandatory requirement, will promote corporate governance and compliance with Basel III norms. Hamad said the CBB was also preparing comprehensive and detailed risk management legislation. According to him, Islamic investment banking needs to develop a sustainable business model as well as more mergers for a clear competitive advantage. To enhance governance and performance, Islamic banks are required to obtain a credit rating. The industry also needs to work on building the capacity of board members, senior management and officials, particularly those in risk management, through qualifications and training.

The growth of the global Islamic finance has provided a niche market with solutions through a well-defined Islamic ethos. Unfortunately, Islamic finance has been criticised for having diverted from its core principles of socio-economic empowerment. As a model, Islamic finance has advocated the narrative of a sharing economy through risk-sharing and fairness. However, the growth of Islamic finance has been witnessed primarily in wealthy nations without equally impacting those that are less fortunate. International organisations such as the International Federation of Red Cross and Red Crescent Societies (IFRC) and United Nations Development Programme (UNDP) are now actively considering Islamic finance solutions. In terms of sukuk, the era of the 'Green' Sukuk is upon us. With regards to research, the International Centre for Education in Islamic Finance (INCEIF) initiated a whole unit dedicated to Social Finance.

Saudi Arabia plans to issue an international sukuk in the first quarter of 2018. Fahad Al-Saif, head of the debt management office, said the government would issue domestic sukuk in November and December. Saudi Arabia issued its debut international sukuk earlier this year, raising $9 billion.

Abu Dhabi Islamic Bank (ADIB) launched a second 'Advanced & Autonomous Car' Equities Basket Note, following high investor demand for the first tranche. The Shariah-compliant note matures in one year and provides 100% capital protection. The product provides investors with exposure to a basket of five leading car manufacturers, including Daimler, SAP, Volkswagen, BMW and Tesla. The minimum investment for the note is US$30,000, with an option for early redemption after three months. In September 2017, the bank launched a similar equity basket note, which provided investors with exposure to a basket of nine companies operating across the car industry. On September 7, 2017, an ADIB Shariah-compliant diversified equity basket note capturing the performance of undervalued blue-chip yielded 5.45% upon its maturity.

DMCC has signed a Memorandum of Understanding (MoU) with Dubai SME to create a web-based trade finance platform for SMEs. The platform will be Sharia-compliant and operate under the DMCC Authority regulatory framework. Present at the signing ceremony was Gautam Sashittal, CEO of DMCC and Abdul Baset Al Janahi, CEO of Dubai SME. Gautam Sashittal said this cooperation between DMCC and Dubai SME opens a new avenue for funding and financing SMEs. Al Janahi said the SME sector in the UAE has evolved remarkably during the past decade chiefly due to support from the government. He added that this MoU was among a series of partnerships created after identifying the gap that existed in the SME landscape in terms of mobilising resources. DMCC is using Alternative International Management Services (AIMS) to make the platform Sharia-compliant.

#Bahrain-based Ibdar Bank has acquired a prime office building in Boston, USA. The deal is a collaboration with US property manager Lincoln Property Company and asset manager Ritz Banc Group and the total size is $48 million. The Boston property is a single-let building leased to Amazon Robotics, a wholly-owned subsidiary of Amazon Inc. The area is regarded as the "technology corridor", and is home to many well-known technology-related companies making it the epicentre of robotic innovation. The bank’s head of real estate, Bassam Kameshki, said the Boston metropolitan area has witnessed substantial growth within the technology and medical sectors. He ensured that Ibdar Bank will be working to add further value to the property and ensure a profitable exit scenario.