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The National Commercial Bank (NCB) has settled an issuance of subordinated Additional Tier 1 Capital Sukuk on Wednesday 23 December 2015, in the amount of SAR 2.7 billion through a private placement offer in Saudi Arabia. The issuance is intended to strengthen the Bank's capital base in accordance with the Basel III framework and sustain its growth while maintaining healthy capital adequacy levels. Additionally, the Sukuk will continue to extend the maturity profile of NCB's liabilities while continuing to diversify its sources of funding. The Sukuk are perpetual securities with no fixed redemption date. However, NCB has the right to call the Sukuk on a predefined date. All required approvals from the regulatory authorities have been obtained for the issuance. NCB Capital Company acted as Sole Lead Manager.

Islamic International Rating Agency (IIRA) has reaffirmed the ratings of Bank AlJazira (‘BAJ’) on the international scale at ‘A-/A2’ (SingleA Minus/A Two) and at ‘A+(sa)/A1(sa)’ (Single A Plus/A One) on the national scale. Outlook on the assigned ratings is ‘Stable’. The fiduciary score has also been reassessed in the range of ’71-75’, reflecting adequate fiduciary standards wherein rights of various stakeholders are adequately protected. The consistent growth in business volumes at BAJ, facilitated by expansion in branch network has been noted. The bank’s low net impairment ratio and sufficient liquidity held, lends support to the assigned ratings. Although financing counterparty concentration remains higher than desired levels, an improving trend has been noted. Capitalisation is adequate and above the regulatory minimum.

Keith Leach, chief commercial officer (CCO), Al Rayan Bank, has an answer to the question if the new UK stamp duty charges announced in the autumn budget have a negative impact on foreign investment into property. His answer showed that potential investors are looking at the big, global picture. The tax changes — what might be on the horizon — wasn’t figuring in their thought processes. What was in their thoughts was the political and economic instability in the region, he explained. With regard to the impact of the 3% hike across all bands of stamp duty on buy-to-let landlords in the UK, Leach said it could lead to landlords faced with higher charges raising rents, or abandoning the buy-to-let market with a consequent reduction in availability of rental properties.

The Alinma Bank Board of Directors has recommended the distribution of share dividend to its shareholders for the 2015 fiscal year. After approval at the bank’s next general assembly meeting in March 2016, shareholders will receive SR0.50 per share (5% of nominal value). The total disbursal will amount to SR745 million. Alinma Bank Chairman Engr. Abdulaziz Al-Zamil congratulated the bank’s staff and shareholders on a year of growth and success.

Qatar International Islamic Bank (QIIB) has signed an agreement with Moroccan lender Credit Immobilier et Hotelier S.A. (CIH Bank) to set up a bank in Morocco. In November, central bank governor Abdellatif Jouahri said Morocco would start issuing Islamic banking licences within the next year. QIIB will take a 40 percent stake in the new bank, which is expected to launch in coming months after necessary approvals, the Qatari institution said on Thursday without giving details of the venture. The Qatari joint venture is part of QIIB's strategy to pursue overseas investments and diversity its portfolio, the lender said in a bourse statement. Islamic banks from Kuwait, Bahrain and the United Arab Emirates have also expressed interest in entering Morocco.

Saudi Arabia's central bank has granted a license to its national home finance company, Bidaya and it will launch with 900 million riyals ($239.94 million) in capital. The decision by the Saudi Arabian Monetary Agency (SAMA) joins efforts to boost home ownership in the kingdom, where a shortage of affordable housing has become an economic and social issue. In development since 2010, Bidaya is a venture between the finance ministry's Public Investment Fund and the Jeddah-based Islamic Corporation for the Development of the Private Sector (ICD). The company aims to make financing more readily available in a kingdom where home ownership levels lag behind the global average of 70 percent.

Bahrain Islamic Bank announces that it has appointment Fahim Ahmed, as the Bank's new Chief Risk Officer effective 01 December, 2015. Mr. Ahmed brings over 17 years of international banking experience where he held various roles in corporate banking and risk management, the last as Chief Risk Officer at Standard Chartered Bank Bahrain, where he has been for the last three years. Mr. Ahmed has served in several markets such as Pakistan, Qatar, Oman, UAE and UK. He has a diploma in Islamic Finance (CDIF) and an MBA from the University of Warwick, UK. The position's scope includes not only the historical risk management responsibility, but also credit risk management, operational risk management and portfolio management.

CFA Institute, the global association of investment professionals, has launched the results of its first CFA Institute GCC Societies Survey, based on feedback from more than 200 GCC-based CFA charterholders and members from Bahrain, Kuwait, and the United Arab Emirates. The survey highlights economic, investment and employment trends and challenges in the GCC region. The economic outlook for 2016 seems uncertain, with the vast majority of respondents (81%) expect low oil prices to impact the GCC economy. Despite this uncertainty, the possibility of the introduction of Value-Added Tax (VAT), and human resources are dominant themes.

Noor Bank was named the "Most Socially Responsible Bank"™ at the "2015 Islamic Business Awards"™ ceremony hosted by the reputed CPI Financial. Amjad Naser, Head of Sharia™, Noor Bank, collected the award at the event, which took place at the Emirates Towers Hotel on 10 December. Noor Bank was honoured for its commitment towards enhancing and enriching the lives of the less fortunate. The CPI Financial judging panel nominated the bank among several other industry leading banks in the United Arab Emirates. Following the initial nomination, Noor Bank was voted the unanimous winner by financial professionals within the region.

Dubai-based developer Nakheel confirmed that it made a profit payment of Dhs 220m on its trade creditor sukuk. The company said that it has instructed Deutsche Bank, the registrar and paying agent, to make the profit payment to all sukuk holders on the due date of December 15, 2015 against the sukuk issued amount of Dhs 4.4bn to date. Nakheel’s last profit payment on its Dhs 4.4bn sukuk was issued in June this year. The company posted a net profit of Dhs 3.61bn in the first nine months of 2015, up 39 per cent compared to Dhs 2.6bn in the same period last year. The developer has paid off debts worth Dhs 7.9bn and is continuing to make payments on its Dhs 4.4bn sukuk, which is due to mature in August 2016.

Oman’s Islamic banks and window operations recorded a major growth of 65.9 per cent at OMR1.5 billion for the first nine-month period ending September 2015, compared with the same period of the previous year. Two Islamic banks and window operations of conventional banks have offered new products to lure in Omani customers, besides opening several branches in different parts of the country. The total value of customer deposits with Islamic institutions shot up by 210 per cent to OMR1.3 billion by the of September, from only OMR429.7 million for the same period of last year, according to fresh data by the Central Bank of Oman (CBO). There has been a significant increase in number of branches and assets held by these institutions since almost two year.

Bahrain-based Tadhamon Capital announced the successful exit from its investment in Coxlease School in Lyndhurst, Hampshire, UK. The school is a specialist residential education facility for children with severe behavioural, emotional and social difficulties. It is let to Priory Group for a 30-year period with annual rent reviews linked to the retail price index. Acquired in November 2010, the school was Tadhamon’s seed investment in its Social Infrastructure Investment Platform in the UK. The platform currently holds assets valued at more than $523 million across segments. Over the five-year investment period, a minimum annual cash dividend of nine per cent was achieved.

Al Hilal Bank announced the appointment of Khaled Abdulla Neamat AlKhoori as its new Chief Executive Officer. Prior to his appointment at Al Hilal Bank, Khaled AlKhoori held a number of positions at Abu Dhabi Investment Authority (ADIA). At ADIA, Khaled was responsible for managing the firm’s global investment mandate, ensuring a balance between different investment styles, geographies and sectors. He also served as Director of the Private Equity Department for three years, focusing on mega funds and credit investments in the US and European markets. Khaled AlKhoori holds a Summa Cum Laude BSBA degree in Finance and Accounting from Boston University, US, and has completed a General Manager Program from the Harvard Business School in 2005.

The collapse in the price of oil, which began in June 2014, came as a surprise to industry analysts and insiders. They were quick to place blame on OPEC, for its perceived high production, and on China for slowing demand. The truth includes some of these elements but it is not the entire story. Much of the blame for the fall in the price of oil can be traced back to the U.S. Federal Reserve and financialization of the market. Shale producers are now stuck. Many were not profitable at $100 per barrel and are now faced with bankruptcy unless they can continue to refinance their debt and get new funding, which is highly unlikely at this stage.

The UAE's Islamic finance sector has continued to outpace the UAE's conventional banking sector's growth in 2015, according to ratings agency Fitch. The agency said in a statement that it expects demand for UAE Islamic banks' lending to continue to grow, supported by wider acceptance and an expanding customer base. Fitch added that Islamic banks have managed to reduce exposure to the real estate sector, which was historically higher than for conventional banks. Moreover, UAE Islamic banks will benefit from the central bank's decision this year to include sharia-compliant securities in the range of instruments it accepts as collateral for accessing liquidity.

Central Bank of Bahrain (CBB) Governor Rasheed Al Maraj has made a renewed call to Bahraini Islamic banks to merge or acquire other institutions. In his keynote address at the opening of the 22nd Annual World Islamic Banking Conference (WIBC), he said given a tougher regulatory environment, challenges to their business model and increased competition from Islamic as well as conventional competitors, the preferred path, particularly for Islamic investment banks, was to merge in order to create institutions of size. Earlier this year, the CBB launched a new Sharia-compliant Wakala liquidity management tool aimed at absorbing excess liquidity of local Islamic retail banks. Mr Al Maraj also said the CBB is introducing a centralised Sharia Board with a broad mandate.

According to a recent report by the London-listed asset management group European Islamic Investment Bank, as Dubai pushes ahead with plans to expand its offering in Shariah-compliant financial services, it will be tapping into significant pent-up global demand for Islamic asset management, which could reach as high as $185 billion by 2019. The study, issued in mid October, highlighted additional measures that could be considered in order to raise Dubai's profile as a centre for IFS. Industry growth could be accelerated through wider consultation between fund managers and the authorities, with a focus on identifying ways to spur the creation of multi-asset-class, multi-geography funds.

Saudi Arabia has approved proposals for a 2.5% ‘white land tax’, which will apply to undeveloped residential and residential/commercial plots within urban boundaries. The law will come into force six months after the Ministry of Housing’s release of detailed regulations, the publication of which will take place within the next six months. Once implemented, proceeds from the tax will be deposited into an account of the Saudi Arabian Monetary Agency, and will be used to fund housing and related infrastructure projects in the Kingdom. The law is intended to stimulate further development to meet the demand for middle-income housing in Saudi Arabia. JLL predicts that some land owners will bring forward plans and begin development in order to avoid the additional tax burden of holding undeveloped land. Others, it suggests, will seek to sell sites to other developers, which should help to reduce land values.

Bahrain-based Arcapita has sold real estate assets it jointly held with Saudi Arabia's Al Rajhi Capital for 1.35 billion Saudi riyals ($359.81 million), the two companies said in a joint statement. The ARC Real Estate Fund, which had a lifespan of five years, acquired seven assets in logistics, warehousing and retail in Saudi Arabia and the United Arab Emirates, they said in the statement. The fund appointed an external consultant to advise on the sale in April. They did not say who they had sold the assets to. Al Rajhi Capital is the investment banking arm of Saudi Arabian lender, Al Rajhi Bank.

Al Baraka Islamic Bank-Bahrain is interested in purchasing Islamic bonds expected to be issued by the Kuwaiti government before the end of the year, CEO Mohamed Isa Al Mutaweh said. Kuwait's finance ministry said in September that it intends to issue bonds and sukuk before the end of 2015 to finance its public deficit, which is estimated to reach KWD 8 billion (USD 26.3 billion). The CEO said the bank, owned by Al Baraka Group, hopes to achieve growth in assets in line with the expected growth of the global Islamic banking at an annual average of 15-20%. Real estate financing accounts for around 40% of Al Baraka Islamic's portfolio in Bahrain and Al Mutaweh said the housing sector was expected to see strong activity due to rising demand.