IslamicFinance.de

On the 10th anniversary of its presence in the Middle East, Lombard Odier demonstrates its long term commitment to the region by expanding its activities and services in the UAE. The team is also celebrating by moving its office location to the Conrad Business Tower. Patrick Odier, Senior Managing Partner of the Lombard Odier Group, said the bank maintains focus on wealth and investment management for private and institutional clients across the region.

Saudi Arabian Monetary Agency (SAMA) is expected to obtain a full membership at the Financial Action Task Force (FATF) in June 2018. At the 8th Compliance & Anti Money Laundering Seminar in Saudi Arabia SAMA Vice Governor Abdulaziz Al-Furaih said several new assessments have emerged including the set of recommendations by FATF and the MENA Financial Action Task Force (MENA FATF). Thomson Reuters Managing Director Nadim Najjar noted that compliance costs are set to increase in 2016.

Bahrain Islamic Bank (BisB) has announced the appointment of Nada Ishaq Abdul Karim as Executive Secretary to its Board of Directors. The appointment of the first Bahraini woman in this position comes within the Bank's strategic plans in line with the "Ishraq" Initiative- Back to Basics 2016. CEO Hassan Amin Jarrar said this shows the bank's continuous support for qualified Bahraini women and promotion of Bahraini personnel.

Hackers have leaked files online containing data on thousands of customers of Sharjah-based Investbank UAE. The files were stolen last December when an individual tried to blackmail the bank for $3 million. When the bank refused to pay, the hacker threatened to dump the stolen files online, yet they never appeared. Security expert Mohammad Amin Hasbini warned that the hackers are going to release data from a second attack. According to Softpedia, the hacker group is Bozkurtlar, the same group that claimed responsibility for the Qatar National Bank data breach two weeks ago.

Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) holds on 4 May 2016 its International Conference, marking its 25th anniversary. Dr. Hamed Hassan Merah, Secretary General of AAOIFI said time is proper to revisit the 40 years history of the Islamic finance industry to evaluate its experience and contemplate the way forward.

The General Council of Islamic Banks and Financial Institutions launched its Global Forum 'Rethinking Values for Sustainable Growth' in Manama, Kingdom of Bahrain. The Forum was attended by delegates from more than 28 countries. Special keynote guest Dr. Mark Mobius covered expert views on MENA and emerging markets including the impact of oil prices on economies, as well as what structural reforms are required for sustainable growth.

Sheikh Abdullah bin Saud Al Thani, the governor of the Qatar Central Bank (QCB), issued operating instructions and governance principals for insurers operating in Qatar. The instructions relate to licensing, regulations and controls, risk management, accounting and actuaries reports. The new law stipulates that listed insurance companies must have capital greater than QAR100 mn or their risk-based capital requirement, while unlisted insurance companies must have capital higher than the figure set by the QCB.

Qatar National Bank has admitted that its systems were hacked but said the incident will not have a financial impact on the bank’s customers. Security researcher Omar Benbouazza said a Turkish far-right group called Bozkurtlar for Grey Wolves has claimed responsibility for the bank breach. He stated that the attackers used an SQL injection tool and the bank made a big mistake using known vulnerable software in the targeted host.

Capital Market Authority of Oman (CMA Oman) recently issued new sukuk regulations that aim to provide clarity and transparency to market players, while providing protection to investors in sukuk transactions. At the forefront of the historical initiative is Kemal Rizadi Arbi, a Malaysian who is an adviser at CMA Oman as well as a member of the Oman government’s sukuk committee. “It is to be noted that not all jurisdictions have specific and separate sukuk regulations, particularly in the Gulf Cooperation Council (GCC) countries, with many just having a conventional bond regulatory framework with some additions made on the syariah requirements. “In addition, it has been drafted to provide flexibilities and spur innovation in the market, among others introducing a new trust regulation and structure and allowing the issuance of a sukuk programme,” said Kemal in an email to Business Times recently.

Abu Dhabi-listed Sharjah Islamic Bank said on Monday it had obtained a three-year, $265 million syndicated murabaha financing facility from a group of banks.
ABC Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital and Noor Bank were lead arrangers and bookrunners, Sharjah Islamic said without giving pricing details.

Dubai Islamic Bank, the largest Islamic bank in the UAE, announced today that it had launched the first UAE Sharia Departments Forum 2016.The event was organized by the Bank, as Founder & Sponsor with the valued participation of other local Islamic banks, to create a platform where the Sharia departments of financial institutions across the country can meet to exchange experiences and share solutions to the challenges they face, with the strategic objective of developing the Islamic financial services sector in the UAE. The opening event took place on April 30, 2016, at The Palace Hotel in Dubai.
As the first event of its kind in the country, the Forum was led by Sharia department at DIB and featured the Sharia departments of other local Islamic banks including Abu Dhabi Islamic Bank ,Emirates Islamic and Al Hilal Bank . 'Sharia Audit' was chosen as the theme of the event this year with a very comprehensive series of panels, each of which was led by one of the participants, discussing a different element of the topic.

Saudi International Petrochemical Company (Sipchem) will begin investors meetings in May for a potential issue of sharia-compliant bonds, the firm said on Sunday.
Sipchem has appointed Riyad Capital and NCB Capital as managers of the possible sukuk, the value of which "will be determined based on market conditions", according to a Riyadh bourse filing.
On March 28, Sipchem announced its board had approved issuing sukuk.

Abu Dhabi’s new financial centre has been running for six months but the corridors still feel quiet. Almost 200 people have been hired to work for Abu Dhabi Global Market (ADGM) since its inception in 2013 but they are nowhere to be seen. Commentators have warned that ADGM’s established neighbour the Dubai International Financial Centre (DIFC) could prevent it from flourishing, and argued it is unwise to locate two financial centres in such close proximity.

Dubai Islamic Bank (DIB) is inviting its shareholders to subscribe for new shares, by way of a 1-for-4 rights issue. The Board of Directors resolved on 27 April to increase the issued capital of the Bank by AED 988,437,777 raising the capital of the bank to AED 4,942,188,884. The New Shares will be issued at a price of AED 3.20 per New Share, reflecting the nominal value of AED 1.00 per New Share and a share premium of AED 2.20. The ownership limitation on DIB’s shares remains in place: 51 per cent of the issued share capital of the bank must be owned by nationals of the United Arab Emirates.

Qatar National Bank is investigating a security breach that appears to have exposed sensitive personal data for what could be hundreds of customers, including employees of international broadcaster Al-Jazeera and potentially senior government officials. Four people identified in the files and reached by The Associated Press confirmed their personal information was authentic. It is unclear if all of the data posted online originated from the bank itself. The bank said it was coordinating with the concerned parties to investigate the matter and offered its assurance that there would be no financial impact for its clients or the bank.

Capital Intelligence Ratings announced that it has downgraded the ratings of Tadhamon International Islamic Bank (TIIB), based in Yemen. TIIB’s Financial Strength Rating (FSR) was downgraded to 'B-' from 'B' due to the extremely challenging local operating environment and the attendant risk to the Bank’s financials, and continued pressure on earnings and associated volatility. The Bank’s Long-Term Foreign Currency Rating (FCR) is downgraded to 'C' (from 'C+') due to sovereign risk factors and the operating environment. The Short-Term FCR is maintained at 'C'. All ratings remain on a 'Negative' Outlook.

Indonesia seeks to expand Islamic banking and has sought Qatar’s help in developing Shariah-compliant banking in the South East Asian country. Indonesian ambassador Muhammad Basri Sidehabi recently visited QIIB headquarters where they held talks with the bank CEO Abdulbasit Ahmed al-Shaibei. Ambassador Sidehabi said the delegation’s visit to QIIB was aimed at benefiting from Qatar’s Islamic banking experience and further expanding the areas of cooperation. He spoke about the great efforts being made by the authorities in Indonesia, where there is a huge demand for Shariah-based banking services.

The regional banking sector has entered a new paradigm with margin compression, tightening liquidity, moderate asset and profit growth, limited capital market activity, greater focus on cost reduction and a widespread need for greater capital and funding. KPMG, which analysed the results of 56 leading listed commercial banks in the GCC, noted Qatar's listed banks remain relatively resilient and their long-term outlook remains positive. Omar Mahmood, Head of Financial Services for KPMG said Qatar experienced the second highest growth rate in the region thanks to an increase in corporate lending as a result of the infrastructure boom.

According to Kuwait Finance Centre Markaz the Middle East will see $58 billion in bond and Sukuk issuance in 2016 and $385 to $390 billion through 2020. The excess allocation towards real estate has been exasperated by the shortage of Shari'ah-compliant fixed income. The next few years may be challenging for the GCC and its Takaful companies if energy prices stay low because the low penetration rate of insurance and Takaful has led to an extremely competitive market. A pipeline of around $60 billion per year for the next five years will support banks and Takaful operators to manage their balance sheets and support growth.

National carrier Saudi Arabian Airlines (Saudia) has appointed HSBC as the lead arranger for a 5 billion riyal ($1.3 billion) sukuk issue. According to director general Saleh al-Jasser the sukuk would be sold in the second half of the year. Jasser said last month that the sukuk offering would finance fleet expansion, with the carrier aiming to operate 200 aircrafts by 2020.