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Dubai has achieved the 1st goal of its strategy aimed at making the emirate the global capital of Islamic economy, the UAE’s VP and PM and Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum has said. His remarks came after a report showed that Dubai has overtaken other financial centres for listing Islamic bonds on its exchanges. Sukuk listed on Dubai’s 2 exchanges, Nasdaq Dubai and Dubai Financial Market, rose to $36.7-B (Dhs 134.38bn) in Y 2015, according to a study by Nasdaq Dubai. According to a report the global Islamic economy has a potential value of $6.7 -T and is bigger than most of the economies in the world except China and the United States. The report estimates that Muslim consumers’ global expenditure on the media, food, and lifestyle sectors such as cosmetics and tourism is forecast to touch $2.47-T by Y 2018.

Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) obtained an Islamic Financial Business endorsement to operate an Islamic Window from the Dubai Financial Services Agency on 8 July, 2015. This approval has enabled its Dubai Branch to offer both conventional and Islamic financial services to customers. BTMU commenced its Islamic finance services in 2008 through its Malaysian subsidiary. Since then, the Bank has accumulated various skill sets and expertise regarding Islamic finance services such as deposits and loans. BTMU opened its Dubai Representative Office (now Dubai Branch) in 2007. It will be the Bank’s central hub of Islamic finance services in Europe, Middle East and Africa region.

Struggling to elevate the standard of living among orphans, the Takaful Welfare Society for Orphan Care in Madinah has announced a new project to build residential units for orphans in the holy city. According to the Takaful program, 195 residential units will be built for families of orphans in Madinah and its villages over a period of three years and 300 houses will be repaired. With the cost of around SR40 million, it is estimated that one unit will cost around SR180,000 for construction and SR20,000 for repairs. Besides, the society announced the Madinah Al Munawwara Award for Social Responsibility under the auspices of Prince Faisal bin Salman to support best projects for orphans.

Dubai has overtaken other financial centres in listing Islamic bonds on its exchanges, and is mounting a global drive to attract more listings while developing new channels to trade sukuk, Hamed Ahmed Ali, the chief executive of Nasdaq Dubai said. The exchange is working on ways to sell sukuk directly to retail investors, expanding the primary market beyond institutional buyers, and designing a sharia-compliant repurchase agreement, he said. Until 2013, issuers from the Gulf usually chose European exchanges to list sukuk; that has begun changing. Unlike Europe, Dubai has a stable of local state-linked firms which can be encouraged to issue sukuk and list them locally. Also, Dubai is at the heart of a Muslim region, which both supplies sukuk and provides investor demand, Ali said.

Dubai has overtaken other financial centres in listing Islamic bonds on its exchanges, and is mounting a global drive to attract more listings while developing new channels to trade sukuk, Hamed Ahmed Ali, the chief executive of Nasdaq Dubai said. The exchange is working on ways to sell sukuk directly to retail investors, expanding the primary market beyond institutional buyers, and designing a sharia-compliant repurchase agreement, he said. Sukuk listed on Dubai’s two exchanges, Nasdaq Dubai and Dubai Financial Market, rose to $36.7 billion last month from $7bn in 2013. Nasdaq Dubai accounts for the vast majority. Until 2013, issuers from the Gulf usually chose European exchanges to list sukuk; that has begun changing.

Abdullah Ahmad Al Ghurair, whose eponymous business group has interests including banking, food, construction and real estate, has unveiled the Abdullah Al Ghurair Education Foundation, a philanthropic institution dedicated to the advancement of young men and women in the UAE and the Arab World. A legally registered entity, the Foundation owns one third of the assets of the Abdullah Ahmad Al Ghurair group of companies, including all revenues and profits. The Foundation will award grants based on a competitive process. It will promote academic subjects that address the needs of the local and global economy and the priorities of nation building. Grants for higher education will be made through a clear and transparent process and awarded based on merit to Emirati and Arab youth in need of financial assistance.

Gulf Finance House (GFH) is planning to make an acquisition this year and sell a unit in an initial public offering. The expected moves are part of efforts to reshape GFH, which was hit hard by the 2008-2009 global financial crisis. Currently the Bahrain-based Islamic investment bank has four units: investment banking, commercial banking, real estate and industry. GFH’s first quarter net profit rose 140 per cent to US$6 million from $2.5m a year earlier. GFH, which is talking to one firm in Bahrain and two in Dubai, is banking on closing this year with at least one leveraged acquisition valued at about $200m. The firm is seeking to finance the acquisition through 30 to 40 per cent equity and the remainder in debt.

Bahrain-based Ibdar Bank has appointed Mr. Ahmed Al-Rayes as Chief Investment Officer (CIO) of the Bank. Effective 9 June 2015, Mr. Al-Rayes is responsible for leading the investment and wealth management teams and for establishing and implementing investment strategies to expand the Bank's investments horizon. This includes both broadening Ibdar's client base, strengthening existing relationships with key clients and partners and building relationships with international institutions globally. Mr. Al-Rayes holds a Bachelor of Science degree in Mechanical Engineering from the University of Bahrain and an MBA from the University of Strathclyde in Glasgow, Scotland. He has also completed a number of executive and Islamic training programmes in the region and internationally.

Several banks and financial institutions in the UAE are building provisions as a precautionary measure in anticipation of possible bad debts they may face in the future, the chief executive officer of Abu Dhabi Islamic Bank said. Tirad Al Mahmoud also said that since not all borrowers they deal with are registered with the UAE’s Etihad Credit Bureau, their data is unknown. At present, ADIB’s rejection rate for loan applications it receives is between nine to 10 per cent, which may drop or rise once the Etihad Credit Bureau’s report on an individual or corporate covers the financial data on all the customers of all banks and financial institutions operating in the country.

Some UAE and Gulf travellers are drawing up plans for short visits to Greece this summer, to pick up choice real estate assets on the cheap. Valuations on Greek realty are down to “10 cents to the dollar” from their 2007 peaks. Gulf investors can tick any number of reasons for picking up a Greek real estate deal now, and they need not be high risk-addicts to head that way. There are some choice valuations being offered up for prime assets as cash-strapped Greek developers/investors seek exits. Hospitality related properties figure prominently, as uncertainty shrouds its tourism industry. Barring a few exceptions, asset prices inevitably recover, although the time taken to recover may vary widely.

Effective regulation and supervision of Islamic banks achieved through a dedicated unit of the Central Bank of Oman (CBO) is positive for the sector as it should strengthen early detection of risks and support growth, Fitch Ratings said. The central bank inaugurated its specialist department for overseeing Islamic banking last week. The department will build up resources and expertise and centralise all aspects of Islamic banking regulation and issuance. Although the industry represents just over five per cent of total banking assets in Oman, it could grow rapidly, as it has in neighbouring countries where market shares range between 20 to 30 per cent, the ratings agency said. The global ratings agency added that a limited number of Omani corporates have issued sukuk and the country's banks may follow.

A government Islamic lease (Sukuk Al Ijara) issue floated to raise BD200 million ($530 million) is open to direct subscription by retail investors, the Bahrain Bourse (BHB) announced. Both Bahraini and non-Bahraini investors can subscribe to the issue through registered brokers at BHB. Each sukuk has a par value of BD1 and the minimum subscription is 500 sukuk (BD500). The securities have a tenure of 10 years with July 9 as the issue date and July 9, 2025 as the maturity date. The subscription ends on Tuesday, and investors will be able to trade the sukuk in the secondary market at BHB post listing, expected to be on July 26. The expected annual return (rent) on the securities is five per cent, to be paid every six months till maturity.

Saudi Arabia's billionaire Prince al-Waleed bin Talal repeatedly invoked the name Bill Gates this week when he pledged his entire $32-billion fortune to charity. He also cited Warren Buffett, who has pledged his wealth to the Gates foundation. The Saudi and the American philanthropists are already collaborating on an effort to eradicate polio, among other things, the prince noted. His foundation, Alwaleed Philanthropies, will focus on empowering women and youths, providing disaster relief, eradicating disease, and bridging cultures both inside and beyond the Arab world. The work will be conducted in communities regardless of religion, a decision the prince defended more than once during his news conference. He described the timeline for his philanthropy as "open-ended".

Emir H H Sheikh Tamim bin Hamad Al Thani, also Chairman of Supreme Council for Economic Affairs and Investment, has issued directives to privatise some government and semi-government-funded investment companies. A council meeting, chaired by the Emir, examined results of a study on investment firms partially funded by government and semi-government bodies. Deputy Emir H H Sheikh Abdullah bin Hamad Al Thani, also Vice-Chairman of the council, attended the meeting along with Prime Minister and Interior Minister H E Sheikh Abdullah bin Nasser bin Khalifa Al Thani, who is Executive Member of the council, and other members.

Saudi Prince Alwaleed bin Talal announced Wednesday his plan to give away his entire fortune in the coming years. Educated in California, Alwaleed is thought to be the 20th-richest person in the world, according to Bloomberg, with a fortune of $30.5 billion. He has pledged to give away even more than that, $32 billion, though no time frame was set. Alwaleed’s charity group, Alwaleed Philanthropies, has worked with the Bill & Melinda Gates Foundation and the Carter Center, founded by Jimmy Carter. Alwaleed cites among his causes: health promotion, electricity to remote villages, building orphanages and schools, disaster relief and empowering women. Some have suggested that his emphasis on charity and women’s rights is a tactic to endear his ventures to Westerners. However, few deny his generosity.

Alinma Tokio Marine Company submitted a request to the CMA to approve its capital increase by way of rights issue valued at SAR 250,000,000. The capital increase will be approved in the Company's extraordinary general assembly meeting, which will be determined by the Company’s board of directors at a later date and should be held within six months from the approval date. CMA's Board of Commissioners has issued its resolution approving Alinma Tokio Marine Company’s capital increase request, which is to be conducted in accordance with the tradable rights framework. The rights issue prospectus will be posted and made available to the public at a later time. Investors should carefully read the prospectus, which includes detailed information on the company, the offering and risk factors.

The Omani central bank has established an independent department to handle Islamic banking. The new department will handle all Islamic banking matters, though the existing examination and surveillance departments will continue their supervision of banks. The creation of a separate Islamic banking department appears to clear the way for two steps seen as critical to the long-term development of the industry: issuance of sovereign Islamic bonds, and the introduction of sharia-compliant money market tools. The government has said it plans to sell its first sukuk, an issue of OMR 200m ($520m), in coming months, while a central bank task force has been studying Islamic money market operations.

This year is shaping up to be a disappointing one for Islamic bond sales in the six-nation Gulf Cooperation Council. Sukuk issuance in the region has slumped by more than half in the year through 28 June. It’s a setback for the Shariah-compliant industry, where GCC sales accounted for 31 per cent of all global Islamic bonds in 2014. Islamic bond issuance from the GCC has plunged 53 per cent. Meanwhile, about 22 per cent more has been raised with Shariah- compliant loans from the GCC than in the same period a year ago. The worst-performing Islamic bond from a GCC borrower was a ringgit-denominated sukuk due 2022 from Abu Dhabi National Energy Company, known as Taqa, which has lost 8.2 per cent this year. Nevertheless, Islamic bonds returned an average 1.8 per cent, compared with 0.8 per cent for conventional bonds.

Banks in Oman believe that ease of access to financing and a wider range of options have enhanced the experience of customers but also hold the opinion that excessive consumerism should be avoided through educating the society. Yousuf Al Rawahi, deputy general manager - head of branches, retail and private banking at Ahlibank, says that with the ease of available credit, any society will have consumerism, which has to be managed accordingly. However, he says more efforts are required to promote the culture of saving in Oman. Asad Batla, head of consumer banking at Bank Nizwa, believes that the rate of consumption in Oman has witnessed ‘exponential’ growth. He added that Bank Nizwa encourages its customers to have discipline in their financial decisions, while constantly focusing on helping them lead financially-secure lifestyles.

Guidance Financial Group, a wholly-owned subsidiary of Malaysia-based Capital Guidance, wants to link the vast Islamic investment opportunities between the Middle East and Asia, Dr Hasnita Hashim, chief executive officer of Guidance Investments, said. If appropriately linked these two regions can deliver strong value for investors while making innovative investment opportunities and ethical funding bases on Sharia principles available across both the regions, she said. In the GCC and wider Middle East region, the company has plans to replicate the success of its US residential mortgage business targeted at primary mortgage customers and institutional investors seeking secondary market asset pools. The company is already involved in providing primary mortgages through Dar Al Tamleek in Saudi Arabia.