IslamicFinance.de

Morocco expects to sign a $ 2.4 billion loan deal next month with the Islamic Development Bank (IDB). The North African country has agreed a package with the IDB under which it will receive $600 million each year from 2013 to 2016. A small part of that sum will be a donation rather than a loan. A formal signing will be held in May. Moreover, Morocco is expected to raise around $ 1.5 billion this year by selling its first sukuk, with a final decision on borrowing to be taken by July. Morocco’s government has said it will limit its public debt to 60 percent of GDP despite the rising budget deficit.

Turkey's Bank Asya is set to complete the general syndication stage of its Shariah-compliant loan imminently.

Qatar-based bank Masraf Al Rayan is in the final stages of due diligence to acquire a stake in a Libyan lender. According to the group chief executive Adel Mustafawi, after preparing the required studies, a memorandum of understanding will be signed before proceeding to secure the required approvals from the authorities in both Qatar and Libya. Shareholders of Rayan had approved in February its plan to buy a stake in a Libyan lender, while also voting to give the board of directors control over a QR1bn ($275mn) war chest to make acquisitions over the next two years. Moreover, the bank has also made significant progress in fulfilling the requirements of acquiring a stake in Islamic Bank of Britain.

Al Baraka Bank (Pakistan) unveiled its new head office, ‘Al Baraka House’ in the city of Karachi, Pakistan on 20 April 2013. The new building was inaugurated by Chairman Al Baraka Bank Pakistan, Adnan Ahmed Yousif, who is also the President and Chief Executive of Al Baraka Banking Group. Adnan Ahmed Yousif emphasized the global strength of Al Baraka as a global Islamic bank, with presence of over 500 branches in more than 15 countries around the world.

Senior Shariah scholars and advisers of Islamic banks and conventional banks with Islamic windows have agreed to standardise Forex and interbank Musharakah agreements between Islamic banks and Islamic banking windows. This move will facilitate the availability of Shariah-compliant venues for deployment of excess liquidity of Islamic banks. This agreement was reached during a meeting called by Meezan Bank Ltd, in which Shariah scholars discussed the challenges in Islamic Treasury Operations.The forum was attended by several prominent Shariah scholars along with Product Development and Treasury professionals of all major Islamic banks and Islamic banking windows of conventional banks.

Barwa Bank has elected its new nine-member board of directors (for 2013-2015) with Sheikh Mohamed bin Hamad bin Jassim al-Thani as chairman and managing director. The other members on the board are Abdulaziz Mohamed Hamad Almana (vice chairman); Mohamed Esmail Ali al-Emadi; Abdulla Abdulaziz Abdulla al-Subaie; Mohamed Ebrahim Mohammad al-Sulaiti; Aisha Mohamed al-Noaimi; Sultan Yousef al-Sulaiti; Jamal Abdul Rahman al-Musalmani and Nasser Hamad Ali al-Sulaiti (all board members). The board of directors also appointed Talal Ahmed Abdulla al-Khaja as a secretary to the board, which will meet at least six times a year and ad hoc as required.

European Islamic Investment Bank (EIIB) is an Islamic finance institution which operates in accordance with Sharia’a law, and bridges the gap between the financial markets of the West/OECD & the Middle East & North Africa (MENA) region. EIIB evolved into an investment company which invests in bonds/loans on a relatively un-leveraged basis and a mixed bag of private equity (PE) investments. A strategic review was also completed, which confirmed EIIB’s new focus on building recurring revenue streams, primarily within the Asset Management business. With further head-count reductions & cost control to come, plus geographical & functional integration savings to be captured, EIIB's losses will be eliminated in due course.

Indonesian syariah lender PT Bank Muamalat Indonesia Syariah aims to raise up to US$300 million (RM912 million) through an initial public offering of at least 20 per cent of its capital. The IPO, subject to approval by the market regulator, is expected by the second quarter of this year and will make Muamalat the first syariah bank to list on the Indonesian stock exchange. Bank Muamalat has 2.5 million customers. Indonesia is expected to host several IPOs this year as companies look to tap excess liquidity in the stock market, which reached an all-time high this week.

Islamic banking is the fastest growing segment of Pakistan’s financial services sector, with an average anual growth rate of 59.6%. However, 67% of Islamic banking customers also use conventional banks, largely due to a wider range of services offered by conventional banks. Ultimately, however, the Islamic banks seem to have caught on the need to compete on their service breadth and quality. Islamic bank CEOs have all emphasised the fact that their banks now offer the full complement of services offered at conventional banks. A study revealed that deposits in Islamic banks appear to be growing mostly due to customers switching from conventional to Islamic banks. Very few customers start out from scratch at an Islamic bank.

Barwa Bank Group held its annual general meeting (AGM) on the 14th April at which the financial results for 2012 were approved and a new Board of Directors was elected. The Chairman, H.E. Sheikh Mohamad Bin Hamad Bin Jassim Al Thani, gave a detailed report on the bank's activities, and highlighted the group's strong growth in both balance sheet and profitability. The bank's net income for 2012 increased by 41% to QR345m, total assets increased by 32% to reach QR25.3bn. Following the AGM, Barwa Bank Group also held an Extraordinary General Meeting (EGM) to approve QR1bn in additional capital through a Rights Issue of 50 million shares at QR20 per share and an Initial Public Offering of 50 million shares at QR21 per share.

Omani lender Alizz Islamic Bank, the second full-fledged Islamic bank in the sultanate, plans to begin operations in the third quarter of this year, according to its chief operating officer Jamal Darwiche. Last October, the bank raised OMR40 million ($104 million) by selling 40 per cent of its capital through a month-long initial public offer of shares. It is targeting a 3.5 per cent share of financing and a 3.6 per cent share of deposits in Oman’s banking sector by 2017. Moreover, it aims for annual growth in total assets, financing and deposits of 15-20 per cent, and to build a customer base of between 65,000 and 100,000 accounts over five years.

Saudi's Bank Aljazira has gotten the approval to sell shares in its insurance unit Aljazira Takaful Taawuni Co. The unit will offer 10.5 million shares at 10 riyals per share in IPO. Bank Aljazira plans to own 30 percent in the new firm. The new firm is to have capital of 350 mln riyals.

Al Salam Bank-Bahrain has successfully completed and sold a joint venture comprising seventy three villas worth an estimated gross development value of RM260.6 million ($86m), in one of Malaysia's Penang Island's largest seafront residential developments. The venture, Martinique Villas By-the-Sea, was named as the Best Villa Development in Malaysia at the South East Asia Property Awards 2011. Successful completion of this project was a result of a tripartite venture involving Al Salam Bank-Bahrain, Eastern & Oriental and CIMB-Mapletree Management Sdn, who entered into the agreement in 2006. The successful collaboration was celebrated at a private event in Penang.

In 2012, Burj Bank’s deposit base grew from Rs.20 billion to Rs.36 billion reflecting a deposit growth of 77pc whereas the total assets grew from Rs.27.6b to Rs.47b reflecting 70pc growth during the year. During the year, the Bank launched and established several products and services such as Carsaaz Auto financing, Home Musharaka, Investment Banking, Islamic Debit MasterCard and an efficient internet banking platform. Morover, the Bank has grown its nationwide branches from 50 to 75.

Banks in the United Kingdom and the United States are not accepting transactions made through the Islami Bank Bangladesh Limited after allegations surfaced about its alleged funding of militant groups across the globe. The matter came to light when a team of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) met the central bank Governor. According to BGMEA, banks in the United Kingdom and the United States are not accepting export bills and documents through the Islami Bank Bangladesh. Apparel sector’s apex body has requested Bangladesh Bank Governor Atiur Rahman to resolve the issue, saying many of its members were facing troubles. The bank posted a clarification on its website and denied the charges.

Dubai Islamic Bank Pakistan Limited has reported a year end profit before tax of Rs501 million. Furthermore, a 38 per cent deposit growth was achieved in comparison to 2011, taking total deposits to Rs53.11 billion in 2012. DIBPL’s asset base rose by 32% in contrast to 2011 increasing the asset base to Rs63.5 billion in 2012. The Bank’s investments grew substantially by 65% over the year, taking total investments to Rs21.33 billion.DIBPL opened 25 new branches in 2012, increasing the total branch network to 100 in 35 cities. The Bank added over 20,000 more customers in 2012, taking full customer base to over 100,000.

Announcing its interim consolidated financial results ended March 31, 2013, Al-Rajhi Bank stated that its net profit during the first quarter is SR 2.05 billion, representing an increase of 2 percent compared with the corresponding quarter of previous year. Total operating income for Q1 is SR 3.53 billion compared to SR 3.43 billion for the corresponding quarter of previous year, representing an increase of 3 percent. Net profit from financing and investments increased by 3.5 percent. Earning per share for the three months is SR 1.37 compared to SR 1.34 for the same period of previous year. The reason for the rise in profits in the current quarter compared with the same period of previous year is due to higher income from operation income.

The company owning the "Chaichana Halal" beef-noodle franchise has filed a lawsuit against Islamic Bank of Thailand manager Thanin Angsuwarangsi at Bangkok's Ratchadapisek Criminal Court yesterday. This was after the manager allegedly failed to approve loans for its franchisees, despite signing a previous MoU agreeing to loan cash to 50,000 franchise applicants over five years. Chana Rattanapakdi, executive of Tha Pisut International that owns the franchise business, accused Thanin of abusing his authority and causing damage to others according to the Criminal Code's Article 157. The court will hear the case on July 15 at 1.30pm.

The International Bank of Azerbaijan has announced provision of new services to clients through the first and so far only "Islamic window" in Azerbaijan. A range of services offered by the bank includes such products of Islamic banking as Ijara, Vakala deposit, Islamic bank cards, and opening of Gard Hassan accounts. All procedures and documentation on these types of services meet the standards assigned by the Islamic financial regulator AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions).It is planned to introduce in the banking legislation the concept of Islamic banking.

Iraqi Islamic Bank for Investment and Development has teamed up with a Bahrain-based Baraka Islamic Bank to develop an investment vehicle that will target Iraq's lucrative and promising food sector. The fund has already acquired interest from Arabian Gulf and European investors, prompting the Iraqi lender to increase the size of the vehicle from US$50 million (Dh183.6m) to $75m. It will provide financial support to an affiliate company of Iraqi Islamic Bank that has a three-year track record of delivering contracts on sugar stockpile to Iraq's ministry of trade.