IslamicFinance.de

Professor Shehu Usman Rano Aliyu, Director of the International Institute of Islamic Banking and Finance at Bayero University, Nigeria stated Islamic banking and finance is the best option for tackling challenges faced by the Nigerian economy. Meanwhile, Usman Hassan, CEO of Jaiz Bank, urged the Nigerian government to take a closer look at sovereign sukuk issuances to fund infrastructure projects. He stated that sukuk were very apt for Nigeria, as there are no failed projects and the financier (investor) will not allow abuse. He urged to government to look at the structure of sukuk to see how it can be of benefit to the economy as a source of FDI from a new diverse investor base.

Every fourth person on the planet is Muslim. However, the vast majority of them happen to be among the poorest in the world. However, there is a growing middle class in the Muslim world, including Pakistan, of which the upper sub-segment called the ‘mass affluent’ may potentially be relevant to wealth creation and subsequently to the business of wealth management. Muslim high-net-worth individuals (HNWI) hold an estimated $3.35 trillion, which is less than 30% of the total Islamic wealth. The remaining 70% is held by Muslim businesses, Islamic financial institutions, the mass affluent, and by the governments in the OIC block.

Johor Corp (JCorp), a Malaysian state-owned firm, plans to list an Islamic real estate investment trust (Reit) holding MR900m ($253.22m) in assets by the third quarter of this year.

Fitch Ratings expects Islamic finance to grow rapidly with more sukuk issuance. Issuance for new sovereigns may be seen from Jordan, Tunisia and even Egypt this year. Fitch Ratings said in a new report that the total new sukuk from GCC+7 issuers rose 13 per cent year-on-year in the first quarter. Total sukuk and bond issuance in the first quarter were up 47 per cent from the fourth quarter when volumes were exceptionally weak, due to falling oil prices and rising geopolitical tension. In the first quarter, the total sukuk issuance volume rated by Fitch grew 3.5 per cent to US$45.1 billion.

With the registered retirement savings plan (RRSP) deadline on March 2nd, many Canadians are wondering and worrying about where to invest their money. An RRSP is registered with the Canadian government. In effect, it's a special bank account used to save up for retirement. This account is made up of investment products, such as stocks, bonds, and mutual funds that allow savings to grow over time. It's up to individuals to choose what investment products to have in their RRSPs. Unlike regular investment accounts, money inside an RRSP is tax-sheltered, meaning that it doesn't get taxed like regular income or investments. The challenge for Canadian Muslims is to know the nature of their investments to ensure their investments are halal.

Turkey is a test-tube study in how emerging market (EM) countries reach developed status. As such, it is subject to the interactions between developed and emerging markets, including hot money capital flows, currency wars and the struggles with interest rate policy and inflation. The good news is that the banking system is functioning well and inflation is contained. The bad news is that Turkish financial markets are now subject to many of the adverse trends affecting all EM economies around the world. The central bank is under pressure from politicians to cut interest rates and devalue the Turkish currency to promote exports and tourism.

Abdulaziz al-Ghurair, one of the United Arab Emirates’ most prominent businessmen, is leading calls for regulations across the Gulf Arab region to smooth the transfer of ownership of family businesses after the death of the founder. Ghurair, the billionaire chief executive of Dubai-based lender Mashreq and chairman of conglomerate Al Ghurair Investment, among his titles, would like to see the introduction of wills and trusts that are compliant with Islamic principles to allow the passing of control to future generations. A draft law will be submitted to Gulf policymakers this year that will include rules governing concepts such as Islamic family trusts and family ownership.

A forensic audit of Nigeria’s state oil firm released on Monday confirmed the accusation by Emir Muhammed Sanusi that the NNPC withheld about $20 billion that it ought to have remitted to the national treasury. The report ordered released by President Goodluck Jonathan, more than two months after it was submitted by PriceWaterHouseCoopers confirmed that the NNPC illegally expended $18.53 billion on operational costs, kerosene and petrol subsidies, without authorisation from the National Assembly. Part of the money was also withheld by an NNPC subsidiary, without National Assembly authorisation.

The Islamic Financial Services Board (IFSB) has announced the release of a set of indicators on the financial soundness and growth of the Islamic banking systems in 15 member countries. This initiative is in line with Article 4 of the IFSB Articles of Agreement. The indicators, called Prudential and Structural Islamic Financial Indicators (PSIFIs) capture information on the size, growth and structural features of Islamic banking systems and on their macroprudential condition by looking at measures of their capital, earnings, liquidity, and exposures to various types of risks. They also cover the indicators on capital adequacy and liquidity based on newly issued IFSB Standards to complement international regulatory reforms under the Basel III regime.

Despite a robust mobile money market, six years after the launch of the first branchless banking product, the number of active, registered mobile money accounts in Pakistan stands at only 0.4% of the population. The percentage of users of mobile money products, however, is 7%, which means that the majority of the customers prefer to transact over-the-counter via an agent. However, true financial inclusion only results when customers open their own mobile money accounts. It is only then that customers can avail of more advanced financial products such as insurance, savings, and credit. Hence, mobile money accounts are an important indicator for financial inclusion.

Malaysia’s International Centre for Education in Islamic Finance (INCEIF), the only educational institute dedicated to Islamic finance, is seeing a surge in female students from around the world, helping fill a shortage of experts in a global industry set to double to $3.4 trillion by 2018. The industry will require one million professionals worldwide by 2020 to meet the shortage of experts to vet products for conformity with Shariah law and for innovation to spur growth. The institute is seeking sponsorships to increase the ratio of females to 50 per cent from 36 per cent. There are already a number of female Islamic bank executives.

La loi n° 103.12 relative aux établissements de crédit et organismes assimilés introduit les banques participatives dans le code bancaire à travers la mise en place de nouveaux fondements reposant sur les principes de partage des gains et des pertes, en faisant appel exclusivement au Conseil Supérieur des Oulémas pour donner ses avis de conformité. Le texte pose le cadre réglementaire pour la création, le fonctionnement et les activités de banques participatives et définit les points concernant le domaine d’application, les dépôts et les produits commercialisés par les banques participatives. La loi n° 103.12 s’applique aux établissements de crédit et organismes assimilés.

The number of family offices in Asia and the Middle East will more than double to about 400 over the next eight years as the ranks of wealthy individuals swell, Michael Prahl of Insead business school said. Driven by the region's economic expansion, the number of wealthy individuals is expected to rise 40 percent by 2023. Family offices manage assets as well as provide tax, legal, accounting and philanthropy services to the wealthy. In the average Asian family office, just three investment professionals manage about US$400 million of assets, according to Insead. That compares with five to six professionals managing between US$300 million and US$1 billion in Europe or the US.

Dr Syed Zafar Mahmood, President, Zakat Foundation of India, presented a research paper at the University of Glasgow's International Conference on Islamic Perspective of Accounting, Finance, Economics and Management (7 -9 April 2015). The paper explores the effect of Zakat, Sadaqah and Qulil Afwa on society, and discusses why riba is forbidden in Islamic economies. In conclusion, the concomitant theme of all economic activity should be to ensure that the community's wealth keeps on changing hands and circulating across the entire social spectrum.

Countries that are intensely religious are typically less innovative than those that aren’t, according to a new paper published by the National Bureau of Economic Research. The study, titled “Forbidden Fruits: The Political Economy of Science, Religion, and Growth,” compares religious beliefs and belief in God with scientific innovation as measured by issuance of patents. The paper also delves into the types of political and scientific regimes that result from religious conviction, ranging from a Western European model with relatively unimpeded scientific progress and a declining role for the Church to a theocratic model with a political class closely allied to religious leaders who are resistant to scientific discoveries. Both feature high taxes, though spending is channeled toward different ends.

Russia is looking to Malaysia to assist and build its knowledge and human capital in Islamic Finance, as it looks to introduce the system for its Muslim citizens. A delegation from Malaysia, consisting of representatives of a subdivision of the Central Bank of Malaysia for development of Islamic finance and University Tun Adbul Razak, visited Russia in February to assess the market. Earlier this year, two major Islamic banking institutions, Al Baraka and Al Shamal, announced that they are actively looking for partners in the Russian market at a recent banking summit. Working with a local partner will allow them to operate legally in Russia.

The Capital Markets Authority (CMA) is planning to allow in foreign investors from June 15. Mohammad Al Jadaan, chairman of CMA, expects a lot of benefits from the entry of foreign players into its stock markets. It is expected that the level of studies, research and evaluation done on the market in general and on the listed companies in particular would be higher which would provide more accurate information and more fair assessments, he said. This would also help to raise the level of the research and studies on the Saudi capital market, he added. The CMA is expected to publish the rules for foreign institutions on May 4, while rules will be effective June 1, and the QFIs will be allowed to invest in listed shares starting from June 15.

With the easing of economic sanctions against Iran, the country is expected to unleash its enormous potential of Islamic finance and enter the global stage with new Shariah-compliant products at a size that could threaten the dominance of Malaysia and Saudi Arabia in the sector. Iranian banks represent the world’s largest financial system based on Shariah law. However, due to the sanctions, the country has so far only marginally participated in the global Islamic finance sector and thus did not benefit from the rapid global growth of Islamic finance in the recent past. The entire banking system in Iran is Shariah-compliant, and there are no conventional banks to compete with.

Saudi Electricity Co (SEC), the Gulf's largest utility firm, has reported its net loss for the first quarter more than doubled. It lost 1.94 billion riyals ($517.4 million) during the three months to March 31, compared to a loss of 913 million riyals during the corresponding period of 2014. The utility cited the costs of implementing an order from the electricity regulator on power usage by top manufacturers, as well as other expenses, for the decline in earnings. It did not elaborate. During the first quarter, the firm paid 545 million riyals to employees in bonuses as part of a scheme to celebrate the Saudi royal succession. Besides, SEC's results are highly seasonal because of the big swing between power demand in winter and in summer.

The Islamic Development Bank (IDB) plans to expand its cooperation with Azerbaijan in respond to the request of the national government. In this regard the bank may send the MDPS to the country. The material is distributed only on private subscription conditions. If you are interested in it please contact the Marketing Service of Fineko Agency.