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The Global Islamic Microfinance Forum (GIMF) will be organized jointly by AlHuda Centre of Islamic Banking and Economics (CIBE) and AKHUWAT on November 01-02, 2014. The purpose of this 4th GIMF is to unite Islamic Microfinance Industry under one roof. Islamic microfinance is going through big challenges e.g. non availability of Shariah Compliant funds, misconceptions regarding Islamic microfinance, lack of man power, regularity and Shariah problem. The purpose of this forum is to gather the stakeholders under one platform to find out the remedy to these problems to give a strong support to rapidly increasing Islamic Microfinance industry.

Islamic Development Bank (IDB) issued $1 billion in five-year Islamic bonds, or sukuk, earlier this month, the largest ever privately-placed transaction from the supranational institution. The sukuk was priced on July 17 and carried a 1.8118 percent coupon at issue, underwritten by the IDB itself. The deal follows a $100 million three-year private placement in April and a $1.5 billion five-year sukuk in February, the largest ever public issuance from the multilateral lender. IDB usually prints one public transaction a year, with plans to issue a benchmark-sized - around $500 million - sukuk around May of next year.

The UAE is emerging as a serious player in the Islamic banking market with total Islamic banking assets growing to about $95 billion (Dh348.9 billion) in 2013 compared to $83 billion in 2012, according to a report by Dubai Chamber of Commerce and Industry based on a recent study by Ernst and Young. The report shows that the compound annual growth rate (CAGR) for Islamic banking assets in the UAE is expected to be about 17 per cent over the period 2013-2018. The Dubai Chamber report, however, points out that many Islamic retail banks suffer from lower profitability than the conventional banks, mainly due to higher expenses attributed to complex products, lengthy process steps and more interfaces.

Commercial Bank of Kuwait ( CBK ) was granted permission by the Central Bank of Kuwait to issue KWD 120 million (USD 425 million) in Basel III-compliant bonds, which could complicate the process of CBK converting into an Islamic bank. CBK has had to write off loans that have significantly impacted its profitability and may be the reason the bank needs to issue capital-raising bonds. However, issuing capital raising bonds may complicate the conversion process since Basel requirements place limitations on the call provisions included in bonds issued to raise capital. The bank will continue to have an interest-bearing liability for five years, which is much longer than the typical period for a conventional bank that has converted to an Islamic bank.

Capital Intelligence (CI) has announced that it has affirmed the Financial Strength Rating (FSR) of Kuwait Finance House (KFH) of 'BBB+'. The rating is supported by KFH's dominance of the Islamic banking sector in Kuwait, as well as its large overall market share in both deposits and loans, and by the significantly improved equity base following the June 2013 rights issue. The rating is constrained by a less than satisfactory asset quality in terms of headline non-performing facility ratio and reserve coverage, and by poor profitability at the net level. Looking ahead, the growing international component of both revenues and balance sheet is likely to eventually become a supporting factor.

A study commissioned by Qatar Foundation on foreign labour recruitment to Qatar has called on the authorities to fix a minimum wage for all occupations in the construction sector and ensure timely payment of salaries. The report, titled “Migrant Labour Recruitment to Qatar”, was commissioned as part of the Qatar Foundation Migrant Worker Welfare Initiative. An assigned minimum wage for all occupations in the construction sector in Qatar, regardless of nationality, would help to prevent the exploitation of workers from particular countries, said the report. Moreover, cost of food should not be linked to wages.

Qatar Islamic Bank (QIB), Noor Bank and Warba Bank, the mandated lead arrangers, announced the successful closure of a $155m Shariah-compliant receivable backed syndicated financing facility for a UAE-based Jafza entity. The facility is a transaction that enabled the obligor to securitise its future receivables guaranteed by multinational oil and gas companies. Noor Bank acted as lead arranger and bookrunner for the facility besides its role as the account bank, documentation bank, Shariah-coordinator, as well as investment and security agent. The facility was designed to refinance existing debt and finance the company’s future capital expenditure.

FALCOM Financial Services and SEDCO Capital signed a strategic partnership agreement, according to which SEDCO Capital will manage the investment portfolio of FALCOM Arab Markets registered at the Capital Market Authority. Yazan Abdeen, Fund Manager at SEDCO Capital, will manage FALCOM Arab Markets Fund. Yazan has an experience of more than 12 years in analyzing and evaluating companies in the Middle East and offering professional services to clients through managing equity funds in Middle East markets. Established in 2005, FALCOM Financial Services has a paid capital exceeding one billion SAR.

Qatar CSR network has launched The Qatar CSR Report 2013, entitled "The Initiative", in partnership with Qatar University and participation of the Ministry of Economy and Commerce. The Report is available in both Arabic and English. The Ministry of Economy and Commerce intends to launch a Qatari CSR index that takes into account similar international experiments based on relevant UN standards. The Ministry also seeks to form a CSR network that covers Qatari companies in general and companies registered in the Qatari stock exchange in particular, in order to promote the exchange of ideas and help these companies work closely to meet CSR standards.

The UAE was the most active nation in the Middle East in terms of debt capital market activity in the first half, accounting for 55 per cent of activity at $12.1 billion, followed by Saudi Arabia with 28 per cent. Bonds issued in the Middle East during the first half of 2014 fell 16 per cent from the same period last year, to $22 billion, dragged down by a slow first quarter. Investment grade corporate debt totalled $16.4 billion and accounted for 90 per cent of the first half total. M&A activity totalled $14 billion in the quarter, 2-1/2 times the value registered during the previous quarter. However, the value of M&A deals during the first half of 2014 declined four per cent from the same period last year to $19.7 billion.

Tamkeen and BMI Bank have announced an extension of their partnership providing Sharia-compliant financing to local enterprises. This marks the fourth contribution of BD10 million by BMI Bank, expanding its portfolio to a total of BD40m whilst the total value of the scheme is BD302m. Initially launched in November 2010, the joint scheme offers small and medium enterprises (SMEs) including startups, a suite of financial products at a competitive cost. Enterprises are eligible to receive financing ranging from BD10,000 to BD500,000. All corporations with valid commercial registrations in the kingdom can apply to benefit from the scheme, which also features repayment options of up to 10 years with a grace period up to two years according to finance procedures.

SEDCO Holding Group’s Riyali Financial Literacy Program has recently signed partnership agreements with the Noble Center for Comprehensive Development and Al-Andalus Al-Khadra Training Center to provide training workshops for university students, as well as, elementary and secondary school students. Under the agreement, each center will aim to train 15,000 male and female university students and elementary school students during 2014 with each center approaching various schools and universities to offer free Riyali courses to students. The program, launched in late 2012, aims to improve financial practices among Saudi youth and kids, such as in financial planning, budgeting, investing and borrowing.

The Saudi Arabian General Investment Authority (SAGIA) has unveiled new regulations and conditions to promote value-added investment and said investment licences may be issued within five days if all the required papers are submitted. Governor of SAGIA, Abdullatif Al-Othman, said they have introduced a speedy customer service system for the benefit of all investors.

Saudi Arabia's crowded insurance sector is set for consolidation amid low penetration rates and rising costs, highlighting the difficulties for smaller firms in the industry to maintain market share or grow their business. The Saudi market remains dominated by compulsory products, with medical and automotive insurance accounting for well over 75 percent of all gross written premiums. Other products such as personal health or life coverage make up only a fraction of total policies issued and premiums written. However, penetration rates across GCC member states could double by 2017 thanks to longer life expectancies and compulsory health insurance programmes.

Growing their business remains the primary and dominant goal for high net worth business owners in the Middle East, according to a recent study on the wealth management needs and preferences of high net worth (HNW) business owners in Asia, Africa and the Middle East. The report by Standard Chartered Private Bank and Campden Wealth Research showed that 82 per cent of Middle East based high net worth business owners surveyed have already internationalised their businesses, implying the need for international banking services that support the geographic reach and growth of these businesses. Increasing market share is the top growth objective (82 per cent) of participants, followed by increasing production capacity (65 per cent) and international expansion (58 per cent).

Ahmed Bin Sulayem, Executive Chairman, DMCC, announced the launch of the organisation's latest CSR initiative, the 'DMCC Foundation'. The ' DMCC Foundation' will be a non-denominational fund to be governed by independent trustees appointed by the DMCC Executive Chairman to oversee the disbursements of funds. All DMCC employees will be encouraged to contribute 2.5 per cent of the average saving potential of their annual salary. The DMCC Executive Chairman has already led by example in doing so. Ahmed Bin Sulayem hopes to encourage other organisations in Dubai to take on the CSR challenge to bring the UAE to forefront of donating nations in the future.

Some GCC regulators have recently proposed a host of new takaful-specific regulations that are expected to boost the market access of these companies. Many of the new regulations relate to the implementation of more stringent corporate governance requirements such as board level investment committees, internal audit departments and approved actuaries. Transparency, a key deficiency in the GCC insurance markets, will also improve with periodic (quarterly, bi-annual and annual) and early warning reporting. In many GCC countries, authorities have sought to protect consumer rights through the mandatory purchase of certain insurance covers. The increasing regulation of the insurance market is expected to help to stabilise the market's volatility and further encourage market growth.

Bahrain-based Gulf Finance House (GFH) has signed a land sale agreement to establish a new mixed-use residential development in Dubailand. The agreement with Dubai Properties Group (DPG) involves the purchase of a total area of approximately 1,200,000 square feet of land. The project aims to build residential, commercial and retail space and facilities within Dubailand. The new development includes both villas and apartments in the residential part of the project and is expected to launch later this year. The project is scheduled to be completed within the next five years.

Commercial Bank of Kuwait has received regulatory approval to issue up to 120 million dinars ($425.8 million) of bonds, as it prepares to convert into an Islamic bank. In April, CBK shareholders approved both the issuance of the subordinated bonds and plans to convert the lender into a full-fledged Islamic bank. The bonds will comply with Basel-III rules. While CBK said its conversion would not be immediate, it would leave Kuwait with only four local conventional banks and could help tip the Islamic banking industry’s market share above an estimated 40 per cent. CBK is not the first to convert into an Islamic bank, with Boubyan and Al Ahli having done so previously.

The shares Bahrain’s Islamic investment bank Gulf Finance House (GFH), at the Dubai Financial Market, rose close to limit up, by 14.86 percent last Tuesday. The number of trades in GFH stock increased by almost two and a half times on the day before, while volumes were also up many times over. On Wednesday morning, GFH put out a statement saying that it had bought a 1.2 million square foot plot of land from Dubai Properties Group in Dubailand, on which it plans to build residential property. Following the announcement GFH shares rose by another 4.6 percent on Wednesday, closing at AED3.47. The Securities and Commodities Authority (SCA) did not say whether it would take this specific issue further.