IslamicFinance.de

Pope Francis was sharply critical of the global arms industry in a speech at the Vatican this week, telling thousands of children in Rome that weapons manufacturers are money-hungry opponents of peace. Some people don’t want peace because they make more money from war, he said. The devil, he added, enters through the people's wallets. The arms industry, which had sales of at least $400 billion in 2013, is dominated by US and European firms, according to data from the Stockholm International Peace Research Institute, not to forget China’s mostly state-owned arms manufacturers. Pope Francis has spoken before against weapons and their impact on war, tweeting in 2013 that he condemned the use of chemical weapons.

Impact Investing has been experiencing quite an explosion of interest by asset owners, asset managers and service providers. Parallel with this there has been a dramatic increase in the number of “thought leaders” or “experts” on Impact Investing. There is however a lack of deep thought or reflection. Lester Brown and his team have done writings, research, efforts that are a great inspiration to many working in the financial, policy, and industry. Recently, a summary of developments regarding “Fuel Free” or Renewable Energy was published. It discusses the Seven Surprising Realities Behind The Great Transition to Renewable Energy.

Banks still have an appetite for project finance but are being more selective in lending as the project pipeline in the Arabian Gulf region stabilises. Project awards in the Gulf region this year are forecast to rise slightly to US$172.7 billion from $171.7bn last year. In the first quarter of this year $46.6bn worth of projects were awarded versus $53.7bn in the first quarter of last year – a figure skewed by the $15bn worth of contracts for Kuwait’s clean fuels refinery project last year. One reason banks are eager to finance good projects is the vast liquidity they amassed during the years of strong oil prices. Gulf governments have also pledged to continue spending on infrastructure, a sign that encourages banks to continue to lend.

There is no doubt that ordinary people in England—and in the rest of Europe—have become richer over the past hundred years, and quality of life has improved dramatically. But the humanitarian crisis didn’t just disappear into thin air—it was exported abroad. After the ravages of colonialism were over there was a time when things started getting better for poor countries during the 1960s and 1970s. Incomes grew quickly and the gap between rich countries and poor countries began to narrow. But these two decades of hope were brought to a crashing end in the 1980s. The World Bank and the IMF began to impose “structural adjustment programs” on developing countries as a basic condition for receiving international finance.

Blossom is a fintech company that offers Sharia complaint financial services to people in countries that are predominantly Islamic. The company merges bitcoin and traditional microfinance into a single package. Blossom offers microloans for the needy in Indonesia. What sets Blossom apart from most other players is the platform. Blossom platform uses bitcoin as a background to enable investors from across the world to fund those who are looking for micro-loans. Blossom ensures that the whole process is in accordance with Sharia’s Musharakah principle and the company doesn’t support businesses involving usury, gambling, pornography and other activities which are deemed unislamic.

Kuwait Finance House (KFH) is exploring the possible sale of assets including its Malaysia unit, as the Islamic lender looks for a leaner structure while seeking greener pastures through its Turkey franchise. KFH is restructuring activities ahead of a planned divestment by its largest shareholder, the Kuwait Investment Authority (KIA). The firm has hired Credit Suisse to advise on its options, including the potential sale of a Malaysia unit launched in 2005 that serves as a hub for southeast Asia. KFH did not give further details. A shift away from Malaysia, where KFH holds a valuable licence but lacks scale, would help it focus on Kuveyt Turk, the largest Islamic bank in Turkey with over 500 branches.

At its annual "Multaqa Sedco 2015", Sedco Holding Group has unveiled its growth strategy for 2025 through expansion of its investment ventures across the globe. The event gathered the Group's upper management, the heads of its operating companies, CEOs and senior executives, management boards, their partners along with the administrative cadre. Under the theme "Imagine Our Future with Synergy", the Group's thrust for the next decade was laid down with emphasis on teamwork, creativity and professional excellence as key to continuous growth and achievement of defined goals as enshrined in the company's "six values".

QIB (UK), the London arm of Qatar Islamic Bank, has hired an experienced banker as its head of treasury. Anthony Lee joins the bank in London having previously served as head of treasury and investments at Doha Bank in Qatar. At QIB (UK), Lee takes over leading the treasury effort from Haissam Saleh, who has been acting head since July last year.

Amlak Finance plans to re-list its shares on the Dubai Financial Market this month after an absence of more than six years. The Sharia-compliant home finance company, in which Dubai’s Emaar Properties has a 45 per cent stake, had won shareholder approval last month to resume trading. Amlak completed a restructuring of US$2.7 billion worth of debt last August, paving the way for the firm’s shares, suspended since November 2008, to resume trading. Amlak yesterday reported a 62.5 per cent drop in first-quarter net profit to Dh6 million from Dh16m a year earlier. Revenue fell 15 per cent in the first quarter to Dh105m because of its decreasing real estate portfolio, the firm said.

After overcoming an array of uncertainties and legal combats and complexities, the first ever Islamic finance compliant project is all set to take off in Kerala. If things go as planned, the Waqf Land Development Scheme by the Cheraman Financial Services Limited (CFSL) will be soon materialized in Kannur in northern Kerala. Kicking start a new model of investment a five storied shopping complex will be erected in Kannur. The funding by the company has been done mainly through BOT (build, operate and transfer) and joint ventures. After creating value on the property and sharing the rental income for 18 years, CFSL will give back the property to the Waqf Board.

The Islamic Development Bank (IDB) is in discussions with Chinese officials to study the use of Islamic financing in the planned Asian Infrastructure Investment Bank (AIIB). The move could spur the use of sukuk (Islamic bonds), which have gained prominence as funding tools for a range of countries in recent years, and among multilateral lenders to help fund some of Asia's mounting infrastructure needs. A potential link-up between IDB and AIIB, which have 20 member countries in common, would also open a growing pool of capital in the hands of private-sector Islamic investors across the Middle East and Southeast Asia.

As Pakistan continued its trend of looking for a helping hand to increase foreign exchange reserves, this time will take a loan of $1billion from Islamic Development Bank (IDB) and ask China to extend its term of the previous $1billion loan it detained earlier. The move has also been taken to support rupee against Dollar by raising $2billion in its foreign resources in the financial year 2015-16. According to an official from the Ministry of Finance, the government will take $1billion from from International Islamic Trade Finance Corporation (ITFC) of the Islamic Development Bank to finance crude oil imports, which will lend the money under a short-term Murabaha financing arrangement.

With China showing growing interest to participate in the global Islamic finance market, the country is working on establishing hubs for Shariah banking within its borders. The first such centre to emerge will undoubtedly be the southern metropolis of Hong Kong which is very serious about becoming an East Asian hub for Islamic finance with a side glance on its regional competitor Singapore. But many eyes are also on China's majority-Muslim autonomous province of Ningxia in the northwestern part of the country. Ningxia plans a $1.5bn debut sukuk sale as early as this year. The deal, managed by Nanchang-based AVIC Securities, will be China's first local-government overseas bond issuance and the first Islamic bond issued by a province.

More than 200 angel investors, start-ups from the MENA region and members of the local media gathered in Bahrain for the commencement of the second MENA Angel Investors Summit 2015. The event was organised by Tenmou, Bahrain's First 'Business Angels, in strategic partnership with the Economic Development Board (EDB). 45 fast-growth start-ups from Bahrain, Saudi Arabia, UAE, Lebanon, Morocco, Palestine, Egypt, and Jordan presented their business pitches to the angel investors in attendance in hopes of procuring more funding to take their businesses to the next level. The highlight of the summit was the launch of the region's first networking association, the MENA Angel Investor Network (MAIN).

Saudi Arabia's Capital Market Authority (CMA) is studying plans to introduce rules governing the listing of real estate investment trusts (REITs). The regulator has approached market participants in recent weeks about forming a panel which will report to it on areas including how REITs work in international markets. The CMA was not available to comment. Given the early stage of the plans and the slow pace of regulatory progress in the kingdom, it is likely to take some time to draw up even draft rules for REITs, securities which trade on stock markets but which invest directly in properties and distribute profits as dividends.

After a slow start, there are signs Islamic finance is beginning to gain the crucial mass and legislative backing it needs in Africa. Amid a surge in sovereign debuts in the sukuk market last year, one region – perhaps unexpectedly – featured prominently: Africa. First to the market was Senegal, the biggest economy in sub-Saharan Africa with a majority Muslim population after Sudan. Its CFAFr100 billion ($200 million) debut last June was Africa’s biggest-ever sovereign sukuk, attracting both local and international buyers. South Africa followed in September with a $500 million 5.75-year deal that was only the third-ever sukuk issued by a non-Muslim majority country, according to Standard Bank, one of the lead managers.

BLME Holdings plc has announced the appointment of Michael Williams as interim CEO of BLME Holdings plc and of its main operating company, Bank of London and The Middle East plc (“BLME”) with effect from Wednesday 13th May. Michael will report directly to Adel Abdul Wahab Al-Majed, Non-executive Chairman of the Board of BLME Holdings plc. Michael is a qualified banker, previously Chief Executive Officer of the International Bank of Qatar in Doha and before this Chief Executive Officer of the National Bank of Fujairah, based in Dubai. His former roles include Managing Director of Nomura Bank International Plc, London and Managing Director of Barclays Global Services. Michael will stand down as Senior Independent Director to be replaced by Neil Holden.

Despite this global spread, mainland China remains a major market that Islamic finance has not yet reached. But this could be set to change in the coming years – and one province in particular is leading the way. Ningxia, in the north-west of China, is an autonomous region where 35% of the population is Muslim and there has recently been talk of establishing an Islamic Financial Centre there in the next five to seven years. In September 2014, Ningxia Halal Food International Trade Certification Centre that established in January 2008 became the first Halal certification body in China with government’s stamp of approval. Moreover, in recent years, trade between China and the Middle East has considerably increased.

Alkhabeer Capital , an asset management and investment firm based in Saudi Arabia, announced the launch of its "Waqf" (endowment) program, intended to provide advisory services for structuring Waqf entities and managing its assets. Through its Waqf program, Alkhabeer is targeting educational and charitable institutions, family offices, high net worth individuals and other philanthropists who aspire to establish Waqf entities. The program addresses the challenges of traditional Waqf by providing Waqf structures in compliance with best standards of governance, disclosure and independent supervision to ensure the management of the Waqf affairs in accordance withterms of the Waqif (Waqf founder).

ICBC Financial Leasing signed a landmark collaboration agreement with the Islamic Corporation for the Development of the Private Sector (ICD). The two entities will work together across multiple lines to develop Islamic capabilities and opportunities and assist economic evolution across ICD member countries: including the provision of financing and banking services such as Ijarah, placement of funds, lines of finance and liquidity management; as well as technical assistance, training and expertise. The parties also plan to encourage and implement co-financing, club deal and syndication projects for eligible private sector projects.