IslamicFinance.de

The forum "The Best Governance Practices for Combating Corruption in Family Businesses,” was held at the headquarters of the Council of Saudi Chambers in Riyadh. Representatives of a number of international organizations and CEOs of family businesses participated, among others. Speakers at the forum said serious efforts are needed to bring the concept of good governance to family-run businesses in the Kingdom. It was called for generalizing the culture of good governance in private sector firms as well as in government institutions, commissions and ministries and all civil society institutions. Good governance culture should prevail not only in financial aspects, but in all legal, administrative and financial work that combats corruption of all kinds.

Last month, Ikim organised a seminar on “Promoting Waqf as a Mainstream Tool in the National Economic Policy”. Several issues were discussed on the potential of waqf in supporting the social and economic development of the nation. One such issue perceived to impede its ability to unleash its fullest potential is the prevalent scepticism about the capability and professionalism of waqf management in managing its assets. Undoubtedly, waqf institutions – especially those under the purview of state religious councils – that are as professionally managed as well-governed corporations can significantly contribute towards improving the welfare standards and quality of life of many in a particular location or state.

DAMAC Hotels, the hospitality arm of DAMAC Properties , has officially launched the first fully certified Sharia-Compliant serviced hotel apartments in Dubai during the Arabian Travel Market (ATM) Exhibition. Constella is a luxury tower under construction in the thriving community of Jumeirah Village. The full management of the project will be carried out on Sharia principles which results in the issuing of a Sharia Certification by 'Dar Al Sharia'. Constella will have separate swimming pools, gymnasiums and saunas for men and women. The restaurant will also have a single section for men and separate family section. There will be dedicated floors provided for ladies that will be served by female only staff. In addition, Constella will also fully comply to Islamic financing principles, with all funds for the project managed by an Islamic Bank.

Kuwait Finance House (KFH) and Fitch Learning concluded a three-month paradigm training course in order to enrich the banking experience of employees, and boost their productive abilities. The training course had a capacity of 90 trainees that were divided into six groups. Fitch Learning staff gave this course based on the requirements of employees. Workshops witnessed competitive performance among the trainees. The course was divided into Sukuk, Client Handling Framework, Real Estate, Traded Equity, Private Equity, Asset Allocation and Diversification. After assessing the requirements of Wealth Management, the bank collaborated with Fitch Learning, in order to address those needs.

The Islamic Corporation for the Development of the Private Sector (ICD) and the Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad (BTMUM) have signed a memorandum of understanding (MoU) to form a joint strategic collaboration to tap opportunities in the Islamic finance industry. Khaled Al-Aboodi, ICD’s CEO and general manager, and Naoki Nishida, BTMUM CEO, inked the MoU at BTMU headquarters in Tokyo. The parties intend to leverage each other strengths and expertise especially to expand its Islamic finance activities in the ICD member countries. Khaled Al-Aboodi said the agreement will strengthen and deepen the ICD’s relationship with its non-traditional partners from the Pacific region especially to promote cross-border investment in ICD member states.

International law firm Simmons & Simmons and the Kyrgyz Republic have signed an agreement to provide consultancy services for the development of laws and regulations, supporting the introduction of Takaful and Sukuk in the Kyrgyz Republic. The consultancy services to be provided by Simmons & Simmons are to be funded under a technical assistance grant provided by the Islamic Development Bank (IDB). First Vice Prime Minister of the Kyrgyz Republic, HE Tayirbek Sarpashev, noted that upon the signing of this Agreement, the Government expects the economy to attract large investments that will favourably affect the development of the financial market and banking sector. The Simmons & Simmons team is led by Muneer Khan, assisted by managing associate Tariq Hameed.

The European Bank for Reconstruction and Development (EBRD) and the Islamic Corporation for the Development of the Private Sector (ICD) have signed a Memorandum of Understanding developing joint collaboration to support SMEs in Egypt, Jordan, Morocco and Tunisia. Under the terms of the memorandum, the EBRD and the ICD will aim to establish a $120 million investment fund, to develop and to financially support SMEs across the southern and eastern Mediterranean region (SEMED). Various financing products will be used such as equity and quasi-equity.The two institutions will contribute to the SME Fund, as well as exploring additional institutional investors and donor streams in order to provide further SME financing and technical assistance required in the region.

The Islamic Corporation for the Development of the Private Sector ( ICD ) together with Al-Nouran Multitrading (ANM), Egypt's private sector sugar trading house, have announced the signing of the Islamic Senior, Mezzanine and Working Capital Facilities Agreements for a new mega sugar production facility in Al-Sharkia Governorate. A total of $372 million will be invested into building this facility, which is expected to produce and refine more than 500,000 metric tons of sugar annually. ICD supported the project by a package including equity investment, mezzanine financing and standby
guarantees of up to $46 million. Further, ICD played a key role in arranging and structuring equity investment and mezzanine financing as well as supported ANM in negotiating and closing remaining financing package.

Bangladesh Bank (BB) will introduce Shariah-based refinancing scheme for Small and Medium Enterprises (SMEs) and other thrust sectors, Governor Dr Atiur Rahman said. Referring to the Shariah compliant mode of refinance support from BB's Export Development Fund (EDF), the governor said introduction of similar Shariah compliant refinance support against SMEs and other thrust sector lending by Islamic banks is also underway. The central bank already issued guidelines for Islamic banking in Bangladesh using an approach that delegates to the Shariah-based financing community the self-regulation and oversight of its Shariah compliance practices.

Gulf Finance House (GFH), the Bahrain-based Islamic investment bank, yesterday held the first meeting of its new board members following their election earlier this month. The eight-member board includes Dr Ahmed Khalil Al Mutawa (chairman), Musabah Saif Al Mutairy (vice-chairman) Faisal Abdulla Fouad Abubshait, Bashar Mohammed Almutawa, Yousef Ibrahim Al Ghanim, Dr Khalid Mohammed Al Khazraji, Shaikh Mohamed Daij Al Khalifa and Mohamed Ali Talib.

Ajman Bank has signed a strategic alliance with Al Ramz Capital, aiming to provide Ajman Bank customers with the services to trade in the UAE's stock market. The alliance has been officially signed by Mr. Mohamed Abdulrahman Amiri, Ajman Bank 's CEO and Mr. Mohammad Murtada Al Dandashi, Partner and Managing Director, Al Ramz Capital. Ajman Bank has launched a share finance product to invest in the UAE's financial markets based on Murabah. This product will double the investors purchasing power in the financial market by offering finance amount equivalent to the market value of the client's stock portfolio. Customers will be also able to trade with their own shares in addition to the finance provided by the bank.

Arab Petroleum Investments Corporation (APICORP), the multilateral development bank of the 10 member states of the Organization of Arab Petroleum Exporting Countries (OAPEC), has closed a five-year SR1 billion ($267 million) bilateral Shari’ah-compliant facility with Al Rajhi Bank. The facility is aimed at retaining and increasing APICORP’s medium-term funding. Al Rajhi Bank was the sole Murabaha Facility Arranger, Lender and Agent. APICORP enjoys a foreign currency issuer rating of Aa3 for long-term debt and Prime-1 for its short-term debt with stable outlook from Moody’s Investors Service. Al Rajhi Bank is the largest retail bank in KSA with total assets of SR279 billion ($74.4 billion).

Saudi Arabia-based Islamic Development Bank is seeking to boost trading in Shariah-compliant products by opening an office in Malaysia. The Islamic Cooperation for the Development of the Private Sector, a unit of IDB, got a license in February from the Southeast Asian nation’s central bank to start offering Islamic investment products in Kuala Lumpur. It will focus on money- market instruments, foreign exchange and sukuk, chief executive officer Khaled Mohamed Al-Aboodi said. It has hired two traders and will also act as an intermediary for business between Asia and the Middle East, he said. Islamic Cooperation plans to increase the team in Kuala Lumpur as and when needed, said Al- Aboodi. The recruits are now working on developing the infrastructure and building relationships with other banks in the region.

King & Spalding advised Turkiye Finans Katilim Bankasi A.S. in relation to the issuance of US$500 million senior unsecured certificates due 2019, listed on the Irish Stock Exchange. The certificates are issued through TF Varlik Kiralama A.S., a Turkish incorporated asset leasing company. Rizwan H. Kanji led the team handling the Turkiye Finans issuance. He was assisted by senior associate Lidia Kamleh. The joint lead managers on the transaction were Citigroup Global Markets Limited, EmiratesNBD, HSBC and QInvest. Co-managers Dubai Islamic Bank and Commercial Bank International were advised by Clifford Chance LLP.

The CEO of Kuwait Finance House (KFH), the Gulf country’s largest Islamic lender, has reportedly stepped down, according to two company sources. Mohammed al-Omar’s resignation as CEO is linked to wider management changes at KFH, one of the sources said.

Saudi Arabia's national home finance company, Bidaya, may open its doors by the end of this year. In development since 2010, the company is a venture between the finance ministry's Public Investment Fund and the Jeddah-based Islamic Corporation for the Development of the Private Sector (ICD). Bidaya is in its last phase of development prior to launch and will submit an application for a licence as soon as regulations under the kingdom's mortgage laws are finalised. The "target size" of its paid-up capital will reportedly be 900 million riyals ($240 million). Bidaya will increase access to finance for middle-income home buyers across the Kingdom and thus, raise low levels of home ownership in the country.

A meeting of the 58th session of the Permanent Council of the Islamic Solidarity Fund of the Organization of Islamic Cooperation reviewed the current financial situation of the Fund and the projects it is executing for member states and Muslim communities in non-OIC member states. OIC Secretary General Iyad Ameen Madani called for the mobilization of support for the ISF to overcome the limitation of resources in the face of growing needs, adding that many humanitarian issues were awaiting the attention of the Fund. He called for the establishment of a work group to identify projects for the ISF and unify efforts. The ISF has so far built 2,418 projects at a cost of $207 million in 130 countries throughout the world.

Turkiye Finans has completed a $500m bond issue. The issue is rated -/-/BBB and its maturity is April 24, 2019. The issue/fixed reoffer price is 100 with a profit rate of 5.375%. The spread at reoffer was 363.4bp over mid-swaps. The bonds were launched on Tuesday April 15, payment date is April 24. Joint bookrunners are Citi, Emirates NBD, HSBC, QInvest.

The Islamic Corporation for the Development of the Private Sector (ICD) plans to increase its activities in Africa, part of plans to widen the appeal of Islamic finance across the region. Under a new strategy, the ICD is helping develop what it terms "Islamic finance channels" to spread sharia-compliant financial products more widely, ICD chief executive Khaled Al-Aboodi said. Such channels include Islamic banks, investment and ijara companies, and takaful and retakaful firms. Some of the projects will be led by Senegal-based Tamweel Africa Holding which will establish an Islamic bank in Benin and is finalizing a feasibility study for one in Mali. In Chad, the ICD is supporting the establishment of an Islamic bank and a leasing company, depending on the approval from local authorities.

Kuwait Finance House (KFH) reported a 13 per cent rise in first quarter net profit which rose to 26.06 million dinars ($92.54 million) from 23.0 million dinars in the same period a year ago. Revenues were 1 per cent higher at 224.4 million dinars. Five analysts in a Reuters poll had estimated an average net profit of 32.76 million dinars for the quarter. KFH’s total assets were 17.3 billion dinars at the end of the first quarter, an increase of 16 percent compared to the same time last year while deposits rose 7 per cent to 636 million dinars. Shares in the company closed at 0.85 dinars on Thursday on the Kuwaiti stock market, which reopens on Sunday. Chairman Hamad al-Marzouq said KFH wanted to expand in Turkey and adjacent countries’ markets, without giving details.