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Several borrowers plan to offer sukuk such as the Saudi Electricity Co. which has already started to arrange investor meetings. The Malaysian construction company IJM Corp plans to sell up to 3 billion ringgit ($910 million) of Islamic bonds. Moreover, the Omani Bank Muscat plans to set up a 500-million rial ($1.3 billion) sukuk program and sell up to 1 billion rials of Shariah-compliant debt in Saudi Arabia. Besides, Malaysia’s Maybank Islamic has reportedly set up a 10 billion ringgit Basel III sukuk program. On the other hand, U.A.E.’s First Gulf Banks planned 3.5 billion ringgit sukuk program was assigned a AAA rating by RAM Rating Services. Furthermore, the governments of Oman and Pakistan are considering selling sukuk this year, among others.

Bahrain’s Khaleeji Commercial Bank and unlisted Bank Al Khair have dropped their plan to merge after failing to agree on terms. The primary reason for this decision is due to the non-agreement on the structure and the valuation of the deal. The two lenders had been in talks since June last year. The decision to call off the merger was reportedly mutual and the two banks will continue to maintain a close business relationship. Mergers in the Gulf banking sector are rare as powerful local shareholders are often unwilling to give up controlling positions except for vastly inflated valuations.

The Board of Directors of The First Investor (TFI), Barwa Bank Group’s 100 percent owned investment banking subsidiary, has appointed Yousef Ali Al Obaidan as the Acting Chief Executive Officer of TFI. Since joining TFI in 2007, Yousef has spearheaded the company’s Investment Banking activities. He has gathered experience leading investment banking initiatives targeting investment opportunities through originating and successfully overseeing the establishment of several projects and companies in Qatar. Yousef graduated with a Bachelor of Arts in Finance and a Master of Arts in Integrated Marketing & Communications from the California State University.

Asset growth rates at Islamic banks in Qatar have dropped to just above those of their conventional peers, cutting a large lead which the industry held in previous years and suggesting the impact of a regulatory ban on Islamic windows is fading. Islamic banking assets grew 12.2 percent in 2013 to 218.8 billion riyals ($60 billion). That was only marginally faster than 11.2 percent growth posted by conventional banks during the same period. Before the ban of Islamic windows, they captured 54.6 billion riyals of assets. Since Qatar's ban took effect at the end of 2011, Islamic banks have added 57.5 billion riyals of assets to their balance sheets. This suggests that if Islamic banks absorbed the assets from the Islamic windows in their entirety, their growth excluding this factor has been minimal.

Abu Dhabi-based Mubadala Development Company (Mubadala) has appointed H.E Dr. Sultan Ahmed Al Jaber as chairman of the board of Masdar, Abu Dhabi’s renewable energy company, and Dr. Ahmad Belhoul will be CEO of the company. Dr. Al Jaber will be succeeding H.E Ahmad Al Sayegh, Masdar’s former chairman. He will continue to serve as UAE minister of state within the federal cabinet of the UAE. In addition, he serves as the UAE Special Envoy for Energy and Climate Change. Dr. Belhoul joins Masdar from Dubai’s Department of Tourism and Commerce Marketing, where worked as CEO of Strategy. Since its 2006 launch, Masdar has delivered a portfolio of projects and initiatives, including the launch of large-scale renewable energy projects and the development of Masdar City.

The year 2013 was a successful year for the Sustainability Network Task Groups operating under the aegis of Dubai Chamber of Commerce and Industry’s Centre for Responsible Business (CRB). Therefore, the chamber has recently launched the task groups for 2014. The Sustainability Network, which was initiated in December 2010, has 55 member companies till date. Membership of the Sustainability Network has jumped by 60% as 20 new companies came on board last year while 10 Task Groups were launched that examined key areas of opportunity, like Sustainable Energy, Supply Chains, Diversity, Social Enterprise, Health and Safety and Sustainability for SMEs. The companies within the Sustainability Network are playing a leading role in driving forward CSR and sustainability amongst businesses in UAE.

Abu Dhabi-based Tourism Development & Investment Company (TDIC) received cash injection of over Dh2 billion from the government in 2013, Fitch Ratings said. The state has consistently provided TDIC with substantial direct financial support, including the provision of free land, recognised by TDIC as equity contributions. In 2013, the government provided cash contribution of more than Dh2bn, according to the ratings agency. Fitch also affirmed TDIC rating with stable outlook. The ratings are aligned with the Abu Dhabi sovereign (AA/Stable/F1+), reflecting strong ties with the sovereign. Fitch said TDIC is unaffected by the emirate's recently approved public debt policy.

Arcapita Bank is suing Saudi Arabia's Al Baraka Banking Group BSC and Bahrain-based Alubaf Arab International Bank to recover a total of $45.3 million the investment firm transferred to them just before its 2012 bankruptcy filing. Arcapita is suing two units of Al Baraka for a total of $35.3 million and is going after Alubaf for $10 million in a separate suit. The suits are the biggest of 59 lawsuits Arcapita has filed seeking money it shelled out within 90 days before its March 2012 bankruptcy filing. The rest of the suits are mostly against law firms, consulting groups and vendors such as information services the company paid for. Most of those are for $200,000 or less.

Arcapita Bank is suing two Arab banks to recover a total of $45.3 million the investment firm transferred to them just before its 2012 bankruptcy filing. The suits, filed by the Bahrain-based bank against Saudi Arabia's Al Baraka Banking Group BSC and Bahrain-based Alubaf Arab International Bank BSC, are the biggest of 59 lawsuits Arcapita filed on Monday seeking money it shelled out within 90 days before its March 2012 bankruptcy filing. Arcapita is suing two units of Al Baraka for a total of $35.3 million and is going after Alubaf for $10 million in a separate suit.

Khaleeji Commercial Bank (KHCB), a Bahrain-based Islamic retail bank, has completed due diligence on a proposed merger with Bank Alkhair, a Bahrain-based Islamic wholesale bank. KHCB shareholders were told by chairman Dr Fuad Al Omar that the matter was under discussion and no decision had been taken yet. When compared with 2012 levels, the bank's total assets grew by 14.6 per cent to BD542.2 million last year with the consumer finance portfolio increasing by 66.7pc. However, the provision of an aggregate amount of BD17.7m in impairment provisions and marked to market losses resulted in net loss of BD19.2m. Dr Al Omar said the bank continued to improve its profitability with increase in revenue from core operations and control of costs. On future plans, he said KHCB would launch new products based on customer needs.

The board of Bahrain-based Ithmaar Bank has initiated several measures aimed at reducing costs this year. The initiatives include a combination of increased revenue, improved margins and cost reductions across Ithmaar Group which are expected to result in savings in the range of $25-$35 million annually. The bank now plans to leverage existing resources and share information technology systems and infrastructure between Ithmaar Bank in Bahrain and its subsidiaries, mainly Faysal Bank (FBL) in Pakistan. Moreover, the lender has identified areas to reduce costs, including staff and other overheads, and now wants to realise the full potential of these cost synergies through rationalisation of human resources and IT infrastructure.

Bahrain-based Gulf Finance House will seek shareholder approval later this month for a potential reduction in share capital and to issue a convertible sukuk of up to $500 million to restructure debt and fund new projects. Under the proposal, GFH will reduce the nominal value of its shares by 13.8 percent to $0.265 per share from $0.3075, according to a notice on GFH's website. As a result, paid-up capital will be cut to $837 million from $972 million. GFH also aims to issue convertible sukuk worth up to $500 million to restructure current liabilities, develop projects and fund possible future acquisitions, subject to shareholder and regulatory approval. No timeframe was indicated for the potential offering. The proposals will be discussed during its annual general meeting on March 31.

Dubai’s government will consider establishing the world’s first fully Shariah-compliant export-import bank to promote the emirate’s foreign trade. The bank would provide financing to companies involved in trade while helping them to reduce their risks and gain market access, the Department of Economic Development said in a statement without giving details of the proposed institution’s structure or financing. Noor Investment Group will advise on the project, the department added, but did not give a time frame. Last month the Export-Import Bank of Malaysia said it had issued the world’s first US dollar-denominated Islamic bond issue from an export-import bank; the $300mn, five-year sukuk attracted $3.2bn of investor orders.

Saudi investment and asset management firm Alkhabeer Capital has hosted a roundtable on ‘Family Businesses and Private Equity’ in Jeddah. The event was attended by clients, partners and a select group of prominent industry leaders and was chaired by keynote speaker, Dr. Benoit Leleux, a professor of Entrepreneurship and Finance at IMD Business School in Switzerland. Dr. Leleux presented two key sessions which addressed the relationship between private equity and family businesses, the first titled “Family Business and Private Equity – Valuable Partnership or Conflicts of Interest” and the second addressed “The Impact of Governance and Presence of Non-Family Executives on Family Businesses’ Entrepreneurial Wealth Creation”.

Dubai Islamic Bank plans to expand its operations into Asian and African countries as it emerges from a period of consolidation, the bank's chief executive Adnan Chilwan said. The lender, which currently makes some 95 percent of its revenue within the United Arab Emirates, says it is entering a growth phase domestically and internationally. It is exploring opportunities in Indonesia, Kenya and surrounding countries in Africa, the Indian subcontinent and the GCC. Expansion could be realized via acquisition, a Joint Venture, a finance company or a greenfield operation as long as DIB keeps management control and operates under its brand, Chilwan added. However, Chilwan said the bank also expected strong growth in its domestic market, so the balance between local and international business would not change radically.

Jamal Darwiche, acting CEO of alizz islamic bank, has resigned from his position for personal reasons. The bank said that the board is engaged in filling this role permanently, but added that Saif al Yarubi will take on this responsibility during the interim period. Before joining alizz islamic bank in July 2012, Darwiche held the position of chief operating officer and general manager of retail banking at Masraf Al Rayan Bank in Qatar. Saif al Yarubi was appointed as chief financial officer at alizz islamic bank in September 2013. He joined alizz islamic bank after serving five years as finance director at Investment Corporation of Dubai (ICD).

Dubai Islamic Bank has revealed plans to expand its operations to Africa as well as Asia, as it seeks growth for its domestic and international business. According to DIB’s chief executive Adnan Chilwan, the bank is exploring opportunities in Indonesia, Kenya and surrounding countries in Africa, the Indian subcontinent and the GCC, with the hope of doing this via acquisition, Joint Venture, establishment of a finance company, or through a greenfield operation startup. Given a five-year scenario, the bank expects a decent franchise spread across these countries with stable and solid yields across all sectors. International business is estimated getting at best 10 to 15 percent of the overall group numbers in about six to eight years.

GFH Capital has announced the appointment of Jinesh Patel as its Senior Executive Officer to lead the Dubai based investment bank. In his new role, Mr. Patel has been tasked with further building and growing the business. Mr. Patel is a senior business professional with almost two decades of international experience in the financial services arena spanning Europe, the Middle East and Asia and brings to his role extensive experience in originating, structuring and executing private equity, debt and capital market transactions. Prior to joining GFH Capital, he was the Chief Financial Officer of Ammalay Commodities - Dubai. He holds an MBA from the University of Brighton and BA (Hons) in Business Economics and Finance.

Bahrain's Gulf Finance House (GFH) will start building a $3bn financial park and real estate development north of Tunisia's capital, a project that had been suspended for five years. The project will be one of the largest private foreign investments in the North African state. GFH's project was scheduled to begin in 2009, but financial difficulties at the Islamic bank and Tunisia's 2011 uprising froze several large-scale projects. The $3bn project will start on 15 March, and an agreement has been signed with the Tunisian contracting companies to start practical implementation of the project in a few days, according to Lotfi Zar, the executive director of the project.

Dubai Islamic Insurance & Reinsurance Co. (Aman) has announced a loss of AED 51.6 million at year-end 2013 that has impaired its capital adequacy. Given that this loss represents about half of Aman's shareholders' equity, S&P consider that Aman's capital and earnings position and overall financial profile have weakened significantly. The rating agency is therefore lowering its ratings on Aman to 'BB+' from 'BBB-' and placing them on CreditWatch negative. S&P also believes that Aman's retained earnings over the next two years are unlikely to be sufficient to rebuild its capital adequacy to levels consistent with higher ratings.