IslamicFinance.de

The European Union's second highest court has annulled an EU asset freeze on Syria International Islamic Bank, dealing another blow to EU sanctions following legal victories last year by several Iranian companies. The EU imposed sanctions on SIIB in 2012, alleging that it had acted on behalf of two other banks, Commercial Bank of Syria (CBS) and Syrian Lebanese Commercial Bank (SLCB), that were both under EU sanctions. But the court said the bloc's governments had failed to provide evidence. The bank has also been sanctioned by the U.S. Treasury. The ruling is subject to appeal.

The UK government's decision not to choose a local Islamic bank as an arranger for its sukuk is a lost opportunity to promote the homegrown Islamic finance industry, according to Harris Irfan, of European Islamic Investment Bank. Malaysia’s CIMB, Qatar’s Barwa, National Bank of Abu Dhabi, Standard Chartered and HSBC have been chosen to lead the sale.

Islamic banks are beginning to make inroads into the banking scene in the US. Chicago-based Devon bank, for example, has transformed itself into an interest-free financing establishment, with Islamic financing accounting for more than 75 percent of the bank's mortgage portfolio. Giant financial institutions in the US now have their own Sharia advisory boards, while banks like Devon Bank in Chicago, with relatively small assets, rely on opinions from the Sharia Advisory Board of America. Muslims in America are becoming a significant demographic force, so Islamic banking is here to stay and offers a lot of potential.

Asya Katilim Bankasi AS (ASYAB), the Turkish banks in talks to sell a stake to Qatar Islamic Bank, has hired Goldman Sachs Group Inc (GS:US) as exclusive financial adviser on the deal. The Istanbul-based lender said in March that it was in exclusive talks with QIB for a strategic partnership, while the Doha-based bank said it was interested to take a stake in the lender. Bank Asya, in today’s filing, didn’t give more details. Bank Asya fell 2.9 percent to 1.66 liras at 10:35 a.m. in Istanbul. It’s gained about 14 percent this year.

Dubai Islamic Bank PJSC (DIB) has completed their first phase of accumulating shares in PT Bank Panin Syariah Tbk (Bank Panin Syariah) in Indonesia. As per the envisaged plan, DIB has completed the acquisition of 24.9% shares in Bank Panin Syariah by acquiring 2,427,750,000 shares. Afterwards, DIB will initiate formal regulatory approval process to obtain "Significant Shareholder Status" from the Financial Services Authority (OJK) to complete phase 2 of the share purchase plan by increasing its stake in Bank Panin Syariah to up to 40%. Bank Panin Syariah is currently controlled by PT Bank Panin and operates through a network of 10 branches. The bank is listed on the Indonesia stock exchange.

The Islamic Development Bank has launched a programme to release $180 million in financing to six African countries for renewable energy projects. The new initiative, called Renewable Energy for Poverty Reduction, will target projects over the next three years to improve access to electricity in Africa's rural areas. Around $125 million have been committed by the bank and initial talks with potential partners such as the OPEC Fund for International Development have started to secure the rest. The initiative will focus on West Africa and projects in Burkina Faso have already been approved. Projects such as mini-grids and rooftop solar systems for Mali, Senegal, Niger and Nigeria are likely to follow and a sixth African country not yet determined.

The Turkish Bank Asya’s board gave its management the go ahead to possibly sell the banks subsidiaries. This information was given Istanbul Stock Exchange and a rise of 5.4 percent in Asya share followed the news.

The Islamic capital markets in Malaysia might have seen fast expansion over the last years but a survey reveals that there is a pervasive lack of understanding of Syariah investments among the unit trust fund investors. Malaysian investors are also looking at alternative options such as Asian high dividend equities and Asian multi-asset income a survey by Eastspring Investments reveals. Asian multi-asset income unit trusts were also widely sought.

AHAB outlines a comprehensive settlement proposal to a group of banks and financial institutions with claims against the company. These asserted by banks, total billions of dollars, arise out of liabilities incurred through a massive fraud perpetrated by Maan Al Sanea in his time a head of the Money Exchange division of AHAB. The liabilities have so far spawned more than 70 lawsuits in at least 10 countries over the past five years.

BTMU has plans to issue Sukuk in Malaysia and hoping to tap the demand in the fast-growing Islamic Capital markets. The bank is considering floating bonds denominated in dollars and yen, with target on Middle Eastern pension funds and Islamic insurance companies. This would mark the first issuance of yen-denominated Sukuk. BTMU expects demand from investors that seek to diversify. A growth in Sukuk could provide a channel for Japan to attract Islamic money.

State-owned Ziraat Bank has interest in buying the Islamic bank Bank Asya. Yet nothing is official just now, according to Ziraat Bank, a state owned bank. The move would allow Ziraat to enter the Islamic banking market. The Turkish government would also like to change the banks’ capital structure that is controlled by Gülen supporters. Bank Asya has been the subject of focus since the Turkish media reported that state-owned companies and institutional depositors loyal to Prime Minister Recep Tayyip Erdo?an had withdrawn around 4 billion Turkish Liras in the wake of the Dec. 17, 2013, graft probe.

A 10 percent growth in the Malaysian Sukuk market for this and next year is in line with the positive views on the long-term growth trends in the global Sukuk market according to Philipp Lotter, Moody's Managing Director for the Corporate Finance Group in ASEAN. Malaysia will remain the world's largest Sukuk market, says Khalid Howladar, Moody's Global Head for Islamic Finance. Singapore and Hong Kong are tapping into this fast-growing asset class although Saudi Arabia is showing strong domestic potential," adds Howladar.

After the huge success and high demand to the first car manufacturing note, the Abu Dhabi Islamic Bank launched a new capital-protected note earlier this year. It matures in 18 months, provides 100 per cent capital protection at maturity to minimize risk, with an expected return of up to 10 per cent. The note is currently open for subscription with a minimum amount of US$30,000. It offers the opportunity to invest in the world's leading car manufacturers. These include Toyota Motors, Hyundai, KIA Motors, BMW and TATA Motors Ltd.

The UAB has launched a summer promotion on personal loans which runs until July 31. In the so-called 5-in-1 promotion, customers can make use of personal loans starting at a low rate while also enjoying free flights, free credit card, free travel insurance with no processing fees.
Customers receive up to 60,000 UAB Rewards points with the bank’s signature loyalty programme that can be redeemed against airline tickets.

DIB, the oldest sharia lender in the world, has now officially acquired shares within publicly listed lender Bank Panin Syariah from owner, Panin Bank. The statement was submitted to the Indonesia Stock Exchange shows Panin’s stake declining to 64.01 percent from 87.51 percent. Panin vice president Roosniati Salihin confirmed the deal.

The 19th Annual General Meeting of Social Islami Bank Limited was held in Sylhet, Bangladesh. A 12% cash dividend for the financial year 2013 was approved by the shareholders in the AGM. Major (Retd.) Dr. Md. Rezaul Haque, the Chairman of the Board of Directors of the Bank presided over the meeting. Directors of the Bank were present. The Managing Director of the Bank Md. Shafiqur Rahman stated that SIBL maintained and achieved a stable position in 2013 despite of many challenges in all of their key areas of operations.

Bangladesh Islamic finance industry is well developed but lacks sharia-compliant instruments such as sukuk. This is limiting further growth of the sector according to a report. Sukuk would be helpfull to diversify the funding sources and could make up for the limited scope of the Islamic money market in Bangladesh. Islamic banks that follow religious principles are now representing 18.9 percent of all Bangladeshi bank deposits.

Shari’a-compliant launches from UK based managers are growing steadily. The UK is at the forefront of Muslim investment. Even crowdfunding is becoming increasingly acceptable in the Arab world to raise capital for start-ups. But investments of any nature have to be Shari’a-compliant. Hereby Muslim communities from Bangladesh or Indonesia may differ from Arabs or Iranians. Some national governments, like Pakistan, insist on full Shari’a financing whereas others like Dubai or Bahrain have a less stringent approach to this. A lot of Shari’a money is completely untapped and is waiting on bank accounts. Most conventional products are not able to access this money due to non-Shari’a compliance.

The Islami Bank Bangladesh Limited approved 18pc dividend comprising 10pc stock and 8pc cash for the Shareholders for the year 2013. This was announced in its 31st Annual General Meeting, according to a news agency. Further in the meeting, four directors were elected. The AGM was held at the Bangabandhu International Convention Centre. Prof. Abu Nasser Muhammad Abduz Zaher, Chairman of the Bank presided over the meeting. The Shariah Supervisory Committee along with shareholders and high executives of the Bank were also present at the AGM.

The European Union on Thursday lifted sanctions on the Syria International Islamic Bank and businessman Sulieman Maarouf with ties to Syrian President Bashar al-Assad who lives in London. The moves came as part of a decision to extend the Syria sanctions on nearly all targets for another year, until June 1, 2015. A European diplomat said the decision to lift sanctions against the bank was taken because of a lack of strong evidence linking it to Mr. al-Assad's regime. The Syrian International Islamic bank was placed on the list because the EU alleged it facilitated transactions for the Commercial Bank of Syria and the Syrian Lebanese Commercial Bank. The list now includes 179 people and 53 entities that the EU says are "linked" to violent repression by Mr. al-Assad's regime.