Dear visitor,
Please feel free to ask the chatbot any question, which will reply based on my publications. On the left side you find recent news, on the right side the blog entries with opinion pieces. My interest is in www.islamicwealthmanagement.com, fostering Islamic financial education, advising from time to time on matters of Islamic social and humanitarian finance aside from working in Islamic private banking.
-> the entry field is on the bottom of the post!
All the best, Michael
Meine erste Roadshow zum Thema Finanzen für Muslime in Deutschland nach einer Reihe von Vorträgen in der Schweiz - freue mich auf rege Teilnahme und bitte die Info weiterleiten - hier die Orte, Uhrzeit und je nach Standort Möglichkeit zur
Anmeldung:
Buchvortrag Berlin "Islam, Geld und Wohlstand" am 10. Januar 2023 um 19:30 in Berlin
mit anschliessender Gelegenheit zur Buchsignierung:
Wo?
Arresalah e.V. Moschee,
Turmstraße 83, 10551 Berlin
Themen:
Islam, Geld und Wohlstand – das Finanzbuch aus islamischer Sicht: Warum macht das Zinsverbot Sinn? Wie wirken Schulden für Arme und Reiche? Wie geht ein Muslim mit Schulden um? Wird Vermögen positiv oder negativ gesehen? Wie Geld erwerben, bewahren und ausgeben? Was ist Geld, was sind Kryptotoken? Welche Meinungen vertreten Gelehrte zum Hauskauf? Welche Aktien kommen infrage? Sind Versicherungen islamkonform? Wie wird die Sozialabgabe Zakat berechnet? Welche Aspekte gibt es bei Nachlassplanung und Testament? Für Muslime und alle, die offen und interessiert sind.
Podiumsdiskussion am 11.1.2023 um 18.00 Uhr in Berlin in der Katholischen Akademie
Hier die Infos vom Veranstalter:
"Gott und Geld
Islam, Money and Prosperity - the finance book from an Islamic perspective: Why does the ban on interest make sense? How does debt work for the poor and the rich? How does a Muslim deal with debt? Is wealth viewed positively or negatively? How to acquire, keep and spend money? What is money, what are crypto tokens? What are scholars' opinions on buying a house? What stocks are eligible? Are insurance policies compliant with Islam? How is the social tax zakat calculated? What are the aspects of estate planning and wills? For Muslims and all who are open and interested.
Michael Gassner lives and works in Geneva. He is the Head of Islamic finance of a Swiss private bank. He is also a member of the Sharia Board of Bosna Bank International in Sarajevo. After completing his banking education, he studied Arabic during his business studies (Diplom-Kaufmann) with a focus on finance, marketing and economic history. He spent his semester abroad in Damascus. After starting his career in the 'new economy', he worked as a financial consultant and specialized in Islamic finance. He immigrated to Switzerland from Jeddah, where he was in charge of Islamic product development at Bank Al Jazira.
Dear Reader,
As more and more token are offered also with Islamic label please find some thoughts on some very basic data checks (suggestions from the readers welcome: gassner@islamicfinance.de):
Token check list:
Pre-minted yes/no - if the tokens are already "minted" that means that all proceeds are going to the *central* promoter. Decentralised finance would be a misnomer, e.g. bitcoin genesis blockchain - the pre-minted token number was around 50 out of 20 million - thereafter miners were rewarded with the new bitoins. Now many issue token numbers of a billion or more. None of those has a chance to become the next bitcoin. Pre-minted token are the antithesis.
Intense online/offline marketing - press releases, repeated text, pick part of the press release text into " " and then google search how often it is cross-posted with unchanged wording. Bad sign.
This goes along with the question: Is there real third party write-ups in the web? Awards and Sponsorships do not count as they are bought for money like ads.
Due Diligence on team members:
type in Google: "Name" AND scam OR corruption OR Rüsvet OR bakshish OR fraud OR pyramid OR crime OR court OR shit
With the establishment of BBI Bank in the year 2000, a new era of business in the banking sector in Bosnia and Herzegovina has begun. For the first time, Bosnian citizens were given the opportunity to choose a different way of banking. Twenty years later, this is one of the most stable and fastest growing banks in Bosnia and Herzegovina.
The Bank was founded by The Islamic Development Bank (IsDB) as the largest shareholder with more than 45 percent ownership, Dubai Islamic Bank (DIB) with a share of 27.27 percent, and Abu Dhabi Islamic Bank (ADIB) with 27.27 percent. In order to harmonise its business with Islamic rules, regulation and principles, a Sharia Committee was established with domestic and world renowned experts in the field of Sharia law.
Dear Readers,
Ramadan Karim to all of you.
May your fasting be accepted!
Best regards,
Michael Gassner
More and more Muslims consider investing in Crypto Currencies and participating in so-called Initial Coin Offerings (ICO). What is the background aside from the poster child bitcoin?
There are two main types of Crypo:
Security Token - Crypto which has some rights or assets attached. Regulators tend to require a prospectus and deem it akin to a security. It's value follows the rights and assets attached and need careful analysis. As Security Tokes are offered online, they may or may not be subjected to a regulator, and any misrepresentations could not be prosecuted. Fraud is frequent.
Utility Token - Crypto which has no rights or assets whatsoever attached to it. Regulators mostly leave it to the people taking the view that no disclosures are required if something is essential without any value. Analysis about the price can only be derived from market psychology. Fundamental values are not given. It is a kind of gift to the issuer from a regulatory point of view and thus no need to protect anybody out there. There is no material countervalue from a secular legal point of view.
Sharia point of view:
Dear All,
as salamu alaikum,
as part of my book project I developed a simple tool for Islamic stock screening. What does it do?
- data pull from Google Finance and MarketWatch
- Calculating cash and debt compliance criteria versus 220days average market cap
- Zakat calculation per share for the zakatable asset approach, if held for investment
***Telegram Group for discussion on Islamic stock screening:
https://t.me/islamicstockscreening
***Live Google Sheet:
https://docs.google.com/spreadsheets/d/1VJYojBUrftJkAZRTcdbmN4TAsvaC1eas...
***Resources:
https://github.com/IslamicWealthManagement/Googlesheet
The tool is under a GLP-3.0 License and be used and amended privately with no charge. Users are encouraged to verify and improve the tool for mutual sharing. No warranties given. Feedback directly or via Telegram group highly welcomed. Is your market avalaible, or do you desire a screening for your market?
Other Screening tools are:
Idealratings: https://www.idealratings.com/
Halal Investors: https://halalinvestors.com/
Islamicly: https://www.islamicly.com/
Zoya Finance: https://zoya.finance/
m Dritten Teil der Vortragsserie stelle ich Euch/Ihnen vor, wie und warum Vermögen aufgeteilt wird, warum es wichtig ist dabei die Ziel zu berücksichtigen, welche Finanzprodukte hierfür in Frage kommen und welche religiösen Fragen von halal, haram und Charakterentwicklung sich stellen.
Geld (Euro, Gold, Silber, Crypto?), Unternehmen (Crowdfunding, Aktien), Immobilien und Kreditversicherung, Staatliche Rentenversicherung und Vorsicht vor Finanzbetrug.
Der Vortrag ist im Browser über den folgenden Link zu verfolgen oder mit besserem Bild in der MS Team App.
Am Samstag, den 20.2.21 um 21:00:
https://teams.microsoft.com/l/meetup-join/19%3ameeting_OTY0NGQ0MGMtZjZkY...
Dear Readers,
The discussion about cryptocurrency finds increasing interest and more and more research since my last post https://www.islamicfinance.de/?q=node/10961
Below a non commented link list - please don't hesitate to suggest further research paper or fatwa on the subject matter:
https://www.awqaf.gov.ae/en/Pages/FatwaDetail.aspx?did=88972
https://afinanceorg.files.wordpress.com/2017/08/research-paper-on-bitcoi...
https://islamicbankers.files.wordpress.com/2019/02/2017-shariah-analysis...
http://fiqhcouncil.org/islamic-economic-forums-declaration-on-bitcoin/
http://etheses.uin-malang.ac.id/15950/1/14220179.pdf
https://www.scitepress.org/Papers/2018/75394/75394.pdf
https://shariyah.com/wp-content/uploads/201/05/The-Shariah-factors-in-Cr...
https://www.wifaqululama.co.uk/images/Fatwa/wifaq-onecoin.pdf
https://dspace.uii.ac.id/bitstream/handle/123456789/11715/GAZI%20AMALIN%...
Sustainable Development Key Performance Indicators (SD-KPIs) are three particularly material environmental, social and governance (ESG) indicators for the expected business development of 68 different sectors.
The copyrighted SD-KPI Standard 2016-2021 was published by SD-M® on behalf of the the Federal Ministry for the Environment (BMU) and with support of the Sustainability Accounting Standards Board (SASB). A Japanese, Chinese and Arabic translation is also available:
https://www.sd-kpi.com/files/SD-KPI_Standard_2016-2021_Arabic.pdf
According to the BaFin Guidance Notice on Dealing with Sustainability Risks, ESG risks should be strategically considered, e.g. by means of SD-KPI Standard 2016-2021. The Guidelines (German) to the Sustainability Code of the German Council for Sustainable Development recommend the SD-KPI Standards for materiality analysis.
The Big Six® are the six most important challenges for sustainable development in 21st century:
climate change
freshwater scarcity and pollution
deforestation and desertification
absolute poverty
loss of biodiversity
population growth and migration
Tutorial Islamische Finanzplanung
Der Vortrag spricht sowohl über den Mindset zum Thema Vermögen und Planung als auch über den Erwerb (Arbeitnehmer, Unternehmer), Bewahrung (Budget, Absicherung) sowie Ausgeben (Spenden, Nachlassplanung, Stiftung) des Vermögens.
Ein Beispiel für eine Musterfamilie wird ebenso vorgestellt.
Das Thema deckt das 2. Kapitel des Buchprojektes ab.
Der Besprechung über Ihren Computer oder eine mobile App beitreten
Die Seite zum Buch: http://www.islamicwealthmanagement.com
Das Meeting findet via MS Team statt .- die App kann kostenlos runtergeladen werden - funktioniert aber auch einfach im Browser:
Hosted and moderated by Kristiane Backer, Michael Gassner is speaking on Islamic wealth management in three lectures - based on his upcoming book in German about Islam, Finance and Prosperity ( http://www.islamicwealthmanagement.com )
Please register: https://mailchi.mp/87418bf06f04/newmuslimsforum
Part 1 will discuss the issues with debt, interest and inequality - why does interest prohibition does make sense? What is wrong with today's tax rules, banking rules and monetary policy in a nutshell? Rather than going into various explanation, Michael argues that exponential growth of debt is the core of the problem. The poor getting poor and the rich richer? He explains how debt and interest really shifts wealth.
Please download the bulleting from the link below.
Excerpt:
Director-General of IOFS H. E. Yerlan A. Baidaulet
“As we all know that 2020 has been an unprecedented and challenging period that has affected
all parts of the world especially the OIC region with the COVID-19 pandemic and its subsequent
drawbacks. The global food systems have been tested by both environmental and biological
factors that reflect the urgent need for a more resilient, strong and powerful food system
that can bear the responsibility at national, regional, and international level. The first and
immediate global reaction to COVID19 was having in place all the measures for an appropriate
lockdown and closing borders to protect all countries from the spread of the pandemic. Such
action affects the flow of food supplies, disturbs the food chain and leaves farmers facing
challenges without support.
«According to the WFP and an estimated 265 million people could be pushed to the brink of
starvation by the end of this year. The food we need should be nutritional, safe, Halal and
enough for everybody.”
Migration and the wind of change: The role of the artist, and of museums, in the spirit of humanitarian aid.
By Dr Bilgehan Koehler
The International Islamic Trade Finance Corporation (ITFC) and the Islamic Development Bank (IsDB) jointly held a live webinar entitled "The Role of AgriTech in Food Security & Sustainability" to discuss sustainable climate-smart agricultural technologies for achieving food and nutrition security. The webinar highlighted the most promising AgriTech solutions to enhance efficiencies of agricultural value chains at the national, regional and global level. The webinar, which was presented in English and included French, Arabic and Russian interpretations, featured panel discussions and presentations by industry experts in the field of Agriculture, AgriTech and Trade Finance. The ITFC will provide technical assistance to farmers and associated agribusinesses to build their capacities to use the digital tools to enhance agricultural productivity. The 2nd webinar, entitled "Digital Supply Chain" will be held on the 25th of November 2020.
Malaysia’s pledge to minimise its greenhouse gas emissions by 2030 is facing challenges in terms of a mismatch in demand and supply of fundings. Bank Negara Malaysia (BNM) assistant governor Fraziali Ismail said that considerable funding gaps remain in sustainable projects, despite the roll out of green financing schemes. Fraziali emphasised that there is a need to find a way to bridge the language and information gap between scientists, government and financiers. He also emphasised the role of the financial sector, particularly that of the capital market, in driving Malaysia’s sustainable development through the sukuk market.
Abu Dhabi Islamic Bank (ADIB) has launched a remote sales platform allowing customers to converse with the bank and apply for personal finance, covered cards, takaful, and other banking products without having to leave their homes. A first of its kind in the UAE, the platform is equipped with virtual banking tools, including online application and electronic signature services. The platform also integrates virtual communications tools, including video conferencing and real-time screen sharing, to boost collaboration between customers and sales representatives. ADIB has seen a significant surge in customer demand for its digital banking services in 2020. Around 94% of ADIB’s banking transactions are conducted digitally and 65% of customer updates are made through the bank’s digital channels. In addition, 50% of new ADIB customers have opened their accounts digitally.
The Indonesian government announced that it would merge the syariah units of three state-owned lenders to create the country’s seventh-largest bank. Pending approval by regulators, the syariah units of Bank Rakyat Indonesia, Bank Mandiri and Bank Negara Indonesia will join forces by February to form a lender with roughly 215 trillion rupiah (S$19.8 billion) in assets. The move is part of an ongoing effort among Indonesian officials to capture a bigger slice of the market of religiously observant Muslims.
Abu Dhabi Islamic Bank launched a sales platform that allows customers to communicate remotely with the bank and apply for personal finance products, covered cards, takaful products and other banking solutions without having to leave their homes. This platform is the first of its kind in the UAE, and it is equipped with a set of virtual banking tools, including an electronic application and electronic signature services. Since its launch, more than half of the bank’s card sales are executed via the platform remotely.
The seventh annual G20 Interfaith Forum concluded its meetings on Saturday after five days of sessions that addressed the COVID-19 emergencies, climate change, social, racial, and economic disparities, environmental challenges, the preservation and safeguarding of sacred sites, and other pressing issues. Originally intended to be held in the Kingdom of Saudi Arabia, host of the 2020 G20 Summit, the conference was conducted virtually in response to the global pandemic. Attendance exceeded 2,000 participants from more than 90 countries. The crisis posed by the COVID-19 pandemic played a central role in the discussions at the Forum. The discussions offered vivid testimony to the need for the world's political leaders to include religious actors in policymaking processes including notably the November 2020 G20 Leaders' Summit in Riyadh. Formal recommendations resulting from the Forum will be shared with G20 leadership in the coming weeks.
Cryptocurrency adoption and investments remain low in Muslim countries as people are still unsure of its compliance with Islamic law. At the SCxSC Fintech Conference 2020 last week, shariah expert Datuk Dr. Mohd Daud Bakar said that investors need more time to understand cryptocurrency from the shariah perspective. In Malaysia, the SC Shariah Advisory Council has declared that it is permissible for Muslims to invest in and trade cryptocurrencies, including bitcoin, on government-registered crypto exchanges. Bakar explained that cryptocurrency is not regarded as legal tender, but it is a legit commodity that can be exchanged within the market, as long as it is not backed by “ribawi items,” like gold and silver. Bakar added that the Securities Commission of Malaysia has also made it possible for companies to issue coins as a method of raising capital, subject to certain restrictions through its fatwa resolution.
A university has announced the launch of the first Accounting and Islamic Finance undergraduate course in the UK. The BSc (Hons) Accounting and Islamic Finance degree at Birmingham City University will see students study Islamic economics, whilst developing an understanding of 'corporate social responsibility'. Course leader Shaista Mukadam said students on the course will be taught the philosophy around the principles and will be encouraged to find ways to implement them in real-world scenarios. It’s not just a course for Muslims, it’s about an ethical way of doing finance based on the teaching of Islam.
Al Rayan Bank, the UK’s oldest and largest Islamic bank, has announced that more than 20,000 of its customers are now using its digital banking services for their day-to-day banking. According to Dr Samir Alamad, Sharia compliance expert at Al Rayan Bank, Islamic finance institutions have a significant growth opportunity in their hands by making the digital shift, catering not only for Muslim communities but mainstream audiences alike. Their role is vital in reinforcing the UK’s position as a fintech hub and in growing awareness of Islamic finance overall. The Al Rayan Bank Mobile Banking app is available on the App store and Google Play – as well as through its desktop portal, which users can access using the app, through a separate authenticator app or using a hard token device. From 2021, customers will also be able to use the app to validate online purchases made using an Al Rayan Bank debit card.
United Arab Emirates energy firm Dana Gas has raised a $90 million loan allowing it to redeem $309 million in bonds due at the end of October and avoid a third debt restructuring. The company has obtained a one-year $90 million loan from Mashreq Bank. The new loan will be repaid when Dana completes a planned sale of its Egyptian assets. The firm shook the global Islamic finance industry in 2017, when it said it would not redeem its $700 million sukuk, arguing they were no longer valid under UAE law because of changes in Islamic financial practice. After a protracted legal battle, it reached an agreement with creditors in 2018. That restructuring followed an earlier one in 2012.
Indonesia's planned merger of three state-owned Islamic banks will create an entity with scale comparable with the biggest local lenders. The proposed merger between Bank BRIsyariah, Bank Syariah Mandiri and Bank BNI Syariah will create an entity with between 220 trillion rupiah and 225 trillion rupiah in assets. Bank BRIsyariah will be the final entity after the merger, expected to be completed by February 2021. It will be Indonesia's seventh or eighth biggest bank by assets. Analysts expect more M&A activity within the Indonesian banking space, mainly for smaller banks to remain competitive. Currently, the nation's biggest banks are Bank Central Asia, Bank Mandiri, Bank Rakyat Indonesia and Bank Negara Indonesia.
Saeed M. Al-Ghamdi is managing director and CEO of the new bank that resulted from the merger between the National Commercial Bank (NCB) and the Samba Financial Group. Before that, he was chairman of the NCB, building up more than 31 years of experience in the Saudi financial and banking sector. He has also been chairman of NCB Capital and the Saudi Credit Bureau. He serves on the board of the Real Estate General Authority and Misk Foundation and is a member of the consultative board of the College of Industrial Management at King Fahd University of Petroleum and Minerals.
En Ethiopie, ZamZam Bank exercera désormais l’activité de banque islamique après avoir obtenu la licence à cet effet auprès du régulateur du secteur. L’institution est la première du pays qui proposera exclusivement des services financiers conformes à la charia. En mai 2019, Abiy Ahmed, le Premier ministre éthiopien, s’était officiellement prononcé en faveur de la mise sur pied d’institutions financières entièrement dédiées à la finance islamique. Plusieurs établissements ont manifesté un intérêt pour l’activité, parmi lesquels ZamZam Bank qui a déposé sa demande auprès de la Banque centrale. Elle a été autorisée à ouvrir son capital à des investisseurs afin de lever des fonds dédiés à la mise en place de sa banque islamique, et a vendu des actions pour un montant d’environ 18,3 millions $.
Indonesia's three state-owned banks will merge their sharia banking units to create one of the country's biggest lenders. Bank Rakyat Indonesia, Bank Mandiri and Bank Negara Indonesia have signed a conditional merger agreement for their Islamic banking units. The new bank will have combined assets of 207 trillion rupiah ($14 billion), making it the eighth-largest lender by assets in the country. The merger is slated to complete next year and is still subject to approval from regulators and shareholders. Indonesia is keen to position the country as the hub of the region's Islamic economy. The country's five-year master plan aims to increase the market share of Islamic financing in the country to 20% by 2024.
First Abu Dhabi Bank (FAB) said it was not in merger talks with Abu Dhabi Islamic Bank. Citing unnamed sources, Bloomberg reported in April 2019 that Abu Dhabi was considering merging the two lenders to create the Gulf region's largest lender. There has been speculation over the past year of more banking tie-ups in light of a wave of consolidation sweeping Abu Dhabi. With around 50 banks, the crowded UAE banking sector has been squeezed by lower government spending and thinner profit margins.
Alors qu’elle avait trouvé son point d’ancrage sous le ciel ensoleillé de l’Australie, la finance éthique par excellence s’est heurtée à un écueil majeur, difficilement contournable. Si elle n’a pas encore largué les amarres sur l’îlot lointain du multiculturalisme, Covid-19 oblige, la première Islamic Bank for Australia (IBA) devrait toutefois prochainement, à l’horizon 2021, en faire son nouveau port d’attache. Loin de la France et de ses cris d’orfraie contre « l’halalisation » de l’Hexagone qui se perdent dans l’immensité des océans, la première banque islamique d’Australie se prépare à accoster sur les rivages de ce grand pays exportateur de produits Halal qui, demain peut-être, sera la nouvelle place forte de la finance éthique à l’autre bout du monde.
ZamZam Bank has obtained a license from Ethiopia’s banking regulator to carry out Islamic banking activities in the country. In May 2019, Abiy Ahmed, the Ethiopian Prime Minister, expressed his approval in favor of the establishment of financial institutions entirely dedicated to Islamic finance. Several institutions have expressed interest in the activity, including ZamZam Bank which filed its application with the Central Bank. The bank was authorized to open its capital to investors to raise funds for its plan. As part of this process, ZamZam sold $18.3 million worth of shares. According to the National Bank of Ethiopia, the presence of institutions entirely dedicated to Islamic finance will improve financial inclusion in the country.
The State of Pakistan and the International Trade Finance Corporation of the Islamic Development Bank signed a financing agreement amounting to $ 386 million, to be used in importing oil and liquefied gas. The Pakistani side emphasized the importance of this agreement and its role in promoting economic and social development.
In another development, remittances from Pakistanis working in the Kingdom of Saudi Arabia amounted to 665 million dollars in September this year, an increase of 29%. On the basis of a total, remittances from the Gulf countries and Western countries reached 3 and 2 billion dollars in September this year.
Pakistan is unlikely to fully benefit from $4.5bn financing package it secured about two and years ago from International Islamic Trade Finance Corporation (ITFC). Pakistan and the ITFC on Monday signed about $400 million worth of two facilities to finance oil and liquefied natural gas (LNG) imports by December this year. Another $100m facility is expected to be arranged by December. This is part of a $4.5bn package Pakistan and ITFC had signed in April 2018 to cover oil and LNG imports over a period of three years. Last year, however, the facility could not go beyond $1.05bn owing to limitations of the partner banks of the ITFC.
Hamad Bin Khalifa University (HBKU) co-organised a three-part webinar series with the United Nations Development Programme (UNDP), in partnership with Qatar Financial Centre (QFC) Authority. The first instalment of the HBKU-UNDP Webinar Series: Islamic Social Finance and SDGs on October 6 showcased National Zakat Board Indonesia's (BASNAZ) innovative application of Zakat funds for local SDG projects. Consideration was also given to how the BAZNAS Zakat Model for development can be replicated and utilised within and beyond the Islamic world.
According to Muhammad Jidda, Head Shari’ah Audit and Product Development, SunTrust Bank Nigeria, Fintech is a viable platform that can be leveraged to boost Islamic Finance in Nigeria. According to him, the pathway is harnessing the various spheres of Fintech and Digital banking to grow the market with innovative products and offerings. Providing further insight he said the Covid 19 pandemic made it imperative to deploy a digital technology strategy for financial services, and fintech was the way to go. He noted that through Fintech a lot of awareness and sensitization can be created on Islamic Finance, through the digital and mobile platforms across the country, which could have a wider reach to people in the rural communities.
The Islamic Corporation for the Development of the Private Sector (ICD) announced successful completion of the pricing of a five-year USD 600 million Sukuk issuance at MS + 140bps. This is the largest Sukuk issuance by ICD since inception and double the amount from its inaugural issuance in 2016 of USD300 million, despite the institution’s absence from the capital markets over the last four years. ICD attracted very strong investor response despite a slightly weaker market sentiment. The orderbook exceeded USD 1.5 billion and ICD released a price guidance at MS + 160 bps area. The Sukuk was priced 20 basis points from guidance pricing.
Al Meezan Investments launched the country’s first Islamic ETF named Meezan Pakistan Exchange Traded Fund (MP-ETF). The ETF will trade at the stock exchange under the ticker ‘MZNP-ETF’. MZNP-ETF is an SECP-approved product which consists of a basket of securities which tracks Meezan Pakistan Index (MZNPI) as the underlying benchmark index of the fund. MZNPI tracks approximately 70% of KMI-30, on average. The ETF is available through stockbrokers (TREC Holders) and trade like stocks with real time pricing during trading hours on an exchange.
The United Nations food agency, the World Food Programme (WFP), won the Nobel Peace Prize for its efforts to combat hunger and improve conditions for peace in conflict-affected areas. The Rome-based organisation says it helps some 97 million people in about 88 countries each year and that one in nine people worldwide still do not have enough to eat. The prize is worth ten million Swedish crowns, or around $1.1 million, and will be presented in Oslo on December 10.
Dubai-based asset manager Shuaa Capital has launched three new sharia-compliant funds on the Abu Dhabi Global Market (ADGM). The open-ended funds – Shuaa High Yield Sukuk Fund, Nujoom Aggressive Fund and Nujoom Balanced Fund – are backed by US$75 million in capital. Shuaa Capital is targeting long-term institutional investors including pension funds and insurers and will offer the funds via the Allfunds Bank platform. According to Shuaa Capital chief executive, Jassim Alseddiqi, the supply of sharia funds still lags the demand among investors.
The world’s fourth largest cocoa grinder Guan Chong (GCB) is undertaking a sukuk exercise for its future expansion plans. It is launching a sukuk wakalah programme of up to RM800mil in nominal value. According to managing diector Brandon Tay Hoe Lian, proceeds from the first tranche of issuance of RM300mil will go towards funding the ongoing construction of a new cocoa grinding facility in Ivory Coast, which is set to commence operations in the second half of 2021. The programme will also support the company's expansion in Europe, following the acquisitions of industrial chocolate provider Schokinag in Germany and the land and building in United Kingdom.
The role of Fintech platforms and services in supporting public services in Indonesia has become more prominent and relevant due to the global COVID-19 outbreak. Fintech service providers are now offering more digital payments options which allow Indonesians to pay for everyday expenses. Fintech investment platforms have also been launched. Financial tech startups have also announced that they’d like to help the nation’s government with disbursing Coronavirus related relief aid packages. Despite the efforts to establish a regulatory sandbox, there’s still a growing threat of illegal Fintech businesses. The Fintech sector in Indonesia remains focused on enabling greater financial inclusion by providing reliable payments and lending services to those who may be underserved by the traditional banking sector. However, these services must be well-regulated to ensure consumer protection.
Hesham Abdulla Al Qassim, Chairman of Emirates Islamic rang the market-opening bell to celebrate the listing by Emirates Islamic of a 500 million US dollar Sukuk on Nasdaq Dubai. The Bank achieved a profit rate of 1.827%, the lowest for a Sukuk issued by a UAE bank for 10 years, with subscription of 2.4 times. The issuance was rated A+ by Fitch Ratings. The nominal value of Sukuk currently listed in Dubai has reached 73.99 billion US dollars, one of the largest totals of any listing centre in the world. Following Emirates Islamic’s latest listing, 46% of Sukuk listings in Dubai by value are from UAE issuers and 54% from overseas issuers.
The Islamic Corporation for the Development of the Private Sector (ICD) has hired banks to arrange a five-year US dollar denominated sukuk. It has mandated Goldman Sachs International, HSBC and Standard Chartered as the global coordinators. They will be joined by Bank ABC, Boubyan Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Gulf International Bank, Goldman Sachs International, HSBC, the ICD, KFH Capital, LBBW, Mizuho Securities, Samba Capital, SMBC Nikko, Standard Chartered Bank and Warba Bank as joint lead managers and joint bookrunners.
Tezos Gulf received a Sharia Certificate from Shariyah Review Bureau (SRB). Tezos’ platform is backed by a global community of validators, researchers, and builders and is considered one of the first pure proof-of-stake blockchains. The Tezos blockchain has been utilised by numerous issuers of digital securities but mostly on the conventional side of the financial market. Tezos Gulf is a subsidiary of the Swiss-based Tezos Foundation. It was established to foster ecosystem development in the GCC region for the Tezos network, an open-source public blockchain for assets and applications.
The pandemic has brought the global economy to its knees and the lives we once knew as 'normal' have been turned on their head. At the same time, displacement and disruptions due to climate-related events such as storms, flooding and droughts have persisted and intensified. While causing great upheaval, the pandemic has provided an impetus for us to reset and reprioritise resources to reconstruct our economies and financial systems to be more sustainable and inclusive. In the case of the climate crisis, trillions are needed to help reach the goal of The Paris Agreement. The role of green bonds will be key. Malaysia continues to be the forefront of green sukuk, which caters to the needs of investors that prefer investments with a positive environmental impact.
The central bank of Kuwait’s board of directors has approved the establishment of the Higher Committee of Shariah Supervision for Islamic finance. The Committee’s key roles are to: give its opinions and advice to the central bank on Shariah compliance of financial transactions; propose general guidelines for products and services; propose controls to regulate the business of Shariah supervision bodies; conduct internal and external Shariah audits; give final decisions where deliberations of Shariah supervision authorities are inconclusive. Several countries have Shariah committees for Islamic finance at their central banks including Malaysia, Pakistan, Oman and the UAE. However, their powers differ from country to country.
IdealRatings Inc. launched the FTSE IdealRatings Sukuk Index incorporating IdealRatings’ Sukuk Shariah compliance screening methodology into the existing FTSE Sukuk Index methodology. The FTSE IdealRatings Sukuk Index tracks the performance of US Dollar-denominated, investment-grade Sukuk that are issued in the global markets. The screening of Shariah compliance for global Sukuk is based on the authentic methodology developed by IdealRatings. The methodology incorporates more than 150 Shariah standards to assign a pass / fail score based on a pre-determined threshold, and Sukuk must pass any mandatory standards set by IdealRatings.
According to Moody's Investors Service, net inflows into some large Islamic funds in the GCC countries have remained positive despite weaker markets and lower oil prices. The ratings agency said it expects growth in Islamic assets under management to slow between 2% and 4% this year. According to the Global Islamic Finance Markets Report, Shariah-compliant assets represent a significant portion of total banking assets of the GCC. While in the Middle East and North African region, Islamic banking assets represent 14% of total banking assets, in the GCC this market share crossed the 25% threshold. Globally, Islamic finance assets are expected to grow at a compound annual growth rate of 5.5% to hit $3.4 trillion during the next five years. Malaysia and Saudi Arabia are the largest Islamic financial service in the world, accounting for almost two-thirds of Islamic assets under management between them.
COVID-19 has disrupted the status quo in a number of ways. Firstly, Arab philanthropy has stepped up support to digital solutions in online learning, healthcare and mental well-being and income generation. Educate–Me, a social enterprise and investee of Alfanar Foundation runs a community school and organizes curricula training for teachers in Cairo. The crisis triggered Educate-Me to conduct a mapping exercise of existing digital capabilities of communities and based on the findings it has created a simple and workable system. Alfanar Foundation has also acted on the crisis through the “Survive and Thrive Campaign” by stepping up marketing and fundraising efforts aimed to support its social enterprise investees in Lebanon. Embracing the idea that technology can potentially play a more enabling role in microfinance is another immediate effect of the COVID-19 crisis. It is important to give philanthropic support to innovation in new technologies and digital solutions for social problem-solving, which has been largely untapped in Arab countries.