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Bitcoin Association sponsors Islamic Fintech Week 2020

Bitcoin Association has joined the inaugural Islamic Fintech Week 2020 as a sponsor and ecosystem partner. The three-day event will bring together stakeholders, regulators and innovators to chart the future of financial technology in the Islamic world. This year’s IFW2020 will be hosted in Malaysia from September 7-10. It will feature a themed series of panel debates, roundtable sessions and masterclasses. Topics on the agenda for the virtual event will include the role of Shariah in Islamic fintech, how Malaysia can become a global finance hub, fintech’s role in the recovery from the COVID-19 pandemic and the social impact of Muslim women in finance. Digital currencies and blockchain will also feature heavily in the event, with various guests set to address how they can be integrated into the Islamic finance industry.

#UAE's first ETF tracking Sharia-compliant index lists on UAE markets

The UAE's first exchange traded fund tracking a Sharia-compliant index began trading on the Abu Dhabi Securities Exchange and the Dubai Financial Market. Bourses in the the region are ramping up efforts to diversify their product offerings to attract more foreign direct investment. Chimera Capital listed its Chimera S&P UAE Shariah ETF, which is designed to replicate the S&P UAE Domestic Shariah Liquid 35/20 Capped Index. The Chimera S&P UAE Shariah ETF is structured and built by S&P and monitored by a Shariah board that meets regularly to review and re-balance the index quarterly. Currently the index has ten securities across the two UAE markets. The fund has a total market capitalisation of Dh234 billion and assets under management of Dh934,839.

State urged to expand sharia compliance loans to Muslims

As coronavirus pandemic continues to disrupt businesses in Kenya, the Muslim community has been urged to take advantage of financial institutions offering low bank charges to jump-start their businesses. Islamic finance expert Khalfan Abdallah has urged the government to rethink how to accommodate Muslims in various financial support programmes such as Youth and Women Fund. Mr. Abdallah said the government should borrow a leaf from Momentum Credit Micro Finance which has started offering Sharia compliance loans to Muslims using logbooks as collateral. The official said to bail out Muslims during these hard times, such affordable credit facilities which are sharia compliance are required.

Kenanga Cap Islamic partners Bay for digitised factoring solution

Kenanga Capital Islamic (KCI) has collaborated with a financing company Bay Group Holdings to enhance digitisation in the local factoring market. The collaboration will introduce a maiden local solution to the local factoring market through merging private and public sectors under a platform to tap into an underserved market, which is expected to grow fivefold from its current RM20 billion value. The partnership with Bay is expected to advance KCI’s position in the factoring market, reduce its overall operational costs as well as improve its efficiencies. Registered and regulated by the Securities Commission of Malaysia in 2016, Bay provides innovative digital solutions through its supply chain management platform and Bay P2P financing platform.

#Malaysia launches #Sukuk Prihatin, maiden digital Islamic bond

The Malaysian government has launched the RM500 million Sukuk Prihatin which aims to raise funds from the public and corporates who wish to help contribute towards the Covid-19 Fund. Prime Minister Tan Sri Muhyiddin Yassin said the fund would be used to modernise telecommunications network in the rural area to help students get access to education through digital channels. It is also to provide further assistance to the micro, small and medium enterprises, as well as the healthcare sector's research on infectious diseases. The minimum subscription for the first investment is RM500 with an interest of 2% per annum for a tenure of two years. After the tenure ends, subscribers or investors can opt to fully donate the interest to Covid-19 Fund and will be given a tax relief depending on the size of the donation.

Moody's and IFN team up on global Islamic finance expertise

Moody's Investors Service (Moody's) and Islamic Finance news (IFN) have announced their collaboration to provide insights and analysis for Islamic finance worldwide. IFN readers will gain access to Moody's exclusive content covering Islamic finance, ranging from sukuk issuance trends in Gulf Cooperation Council (GCC) countries to the latest trends in Islamic banking. Moody's is a global integrated risk assessment firm that empowers organizations to make better decisions. IFN is the leading Islamic finance news and solutions provider in the world, housing the largest pool of Islamic finance-related articles and coverage.

Gassner's picture

55%-83% of Retail Investors in CFDs loosing money as disclosed by the financial providers

Dear Reader,

Following up on my earlier post on CFD and wether those are halal and why not: http://www.islamicfinance.de/?q=node/9330 here a follow up with some disclosed data. The regulators asking CFD provider to disclose how many retail investor loose money. The exact rules and definitions you find here:

https://www.esma.europa.eu/sites/default/files/library/2018-esma35-43-13...

In a quick web search for "of retail investor accounts lose money when trading CFDs" that number is between 55.2% and 83%:

https://www.cmcmarkets.com/en/learn-cfd-trading/what-are-cfds

55.2% of retail investor accounts lose money when trading CFDs with Blackwell Global Investments (UK) Limited.

https://blackwellglobal.com/choosing-right-leverage-cfd-trading/

83% of retail investor accounts lose money when trading CFDs with this provider.

https://libertex.com/blog/what-contract-difference-cfd

79% of retail investor accounts lose money when trading CFDs with this provider.

https://www.xtb.com/en/learn-to-trade/what-is-cfd-trading

APIB aims to cooperate with domestic financial institutions to promote Islamic finance industry

Asia Pacific Investment Bank (APIB) aims to cooperate with domestic financial institutions to promote the internationalisation of the Islamic finance industry. APIB CEO Chris Wang is confident that APIB could be the bridge that connects Malaysia and China. In light of the US-China trade war and the Covid-19 pandemic, the government is facing a critical challenge in leveraging the country’s position. Wang said APIB could help the government achieve the goal by making the country’s Islamic finance industry more dynamic. APIB is an offshore Islamic investment bank, established in January 2015 with the approval of the Labuan Financial Services Authority, headquartered in Labuan and its main operating office based in Kuala Lumpur, with representative offices in Shanghai and Nanjing, China.

DIB Tier 1 Sukuk (3) Ltd. -- Moody's announces completion of a periodic review of ratings of Dubai Islamic Bank PJSC

Moody's Investors Service (Moody's) has completed a periodic review of the ratings of Dubai Islamic Bank (DIB).
Dubai Islamic Bank's A3 long-term Issuer ratings are derived from the bank's ba2 standalone baseline credit assessment and a five notch systemic support uplift based on Moody's view of a very high likelihood of government support from United Arab Emirates (rated Aa2), in case of need. DIB's ba2 BCA reflects the bank's solid profitability, deposit-funded balance sheet, and healthy liquidity reserves. These strengths are moderated by Moody's expectation of downside pressure on the bank's solvency in the 12-18 months on the back of lower oil prices, reduced investor confidence and the coronavirus-induced disruption.

Bitcoin Affiliation joins Islamic Fintech Week (IFW2020) as ecosystem accomplice and sponsor

Islamic Fintech Week 2020 organizers revealed Bitcoin Affiliation as its ecosystem accomplice and sponsor. IFW2020 is hosted with the theme “Envisioning Islamic FinTechFuture” and is ready to be a platform for international stakeholders, regulators, tech startups and the Islamic finance fraternity. Bitcoin Affiliation is the Switzerland-based international trade group that works to advance enterprise on the Bitcoin SV blockchain. The week will be a sequence of discussions, roundtable classes, debates and hopes to showcase a brand new expertise for on-line attendees to deal with native and international challenges and uplift humanity.

#Indonesia’s #sukuk issuance to rise to $27b to finance COVID-19 battle: Moody’s

Credit rating agency Moody’s Investors Service expects Indonesia’s sukuk issuance to increase to US$27 billion this year from $16 billion last year. Lead analyst Thaddeus Best said on Tuesday that he expected Indonesia’s sukuk issuance to increase by about 68.75% as the government unveiled a Rp 695.2 trillion (US$47.3 billion) stimulus package to fight the pandemic. To help fund the package, the government is planning to raise Rp 900.4 trillion in the second half of this year to cover for a widening budget deficit of 6.34% of gross domestic product (GDP) this year. The option-adjusted spread of Indonesia’s US dollar-denominated government sukuk had fallen to almost 150 basis points (bps) as of July compared to its highest spread of 400 bps in March.

Sombank takes Islamic banking to the cloud with Temenos

Somalia's Sombank selected the Temenos Islamic Banking solution in the cloud to accelerate its digital transformation and create innovative products to increase access to financial services in Somalia. Sombank will implement the full front-to-back Temenos Islamic Banking platform, which combines the capabilities of Temenos Infinity and Temenos Transact. Temenos’ cloud-native technology will allow Sombank to create innovative digital products and offer lower cost services. Currently, Sombank serves customers via branch and online network and representative offices throughout Somalia. The bank will use the Temenos Infinity digital front office to create a unified customer experience for all financial and non-financial services across all channels.

Corporate #sukuk to grow slow in 2020

According to Malaysian Rating Corp (MARC) chief ratings officer Rajan Paramesran, domestic corporate sukuk are in a better position than during the global financial crisis or the Asian financial crisis. Going into the current crisis, corporate sukuk had relatively stable cashflow metrics. He added that government-supported transport projects, state-backed water infrastructure projects and solar power plant projects have recently been and will be key sources for sukuk issuances. Rajan said the catalyst for the growth in the Islamic debt market continues to be government incentive on susuk issuances such as tax reduction. Based on MARC’s data, corporate sukuk issuance by the end of July 2020 amounted to RM34.3 billion, which is the lowest to date over the last 10 years and dampened by the Covid-19 pandemic. In a separate report, Moody’s said Malaysian Islamic banks are expected to remain resilient amid the Covid-19 outbreak, underpinned by heavy concentration on retail financing.

International Islamic Liquidity Management Corporation issues $1.06bn #sukuk

The Malaysia-based International Islamic Liquidity Management Corporation (IILM) successfully conducted an auction for a total issuance of $1.06bn short-term A-1 rated Sukuk in three series. The three series have been priced by the market as follows: USD400m of 1-month tenor at 0.33%; USD460m of 3-month tenor at 0.45%; and USD 200m of 7-month tenor at 0,58%, respectively. The tender resulted in significant demand from Middle Eastern, Asian and African investors, with an orderbook that closed in excess of USD1.72bn. ILM is an international organisation established by various central banks to develop and issue short-term Shari’ah-compliant financial instruments. The current members of the IILM Governing Board are the central banks and monetary agencies of Indonesia, Qatar, Kuwait, Luxembourg, Malaysia, Mauritius, Nigeria, Turkey, the UAE, as well as the multilateral Islamic Corporation for the Development of the Private Sector.

Source: 

https://www.thepeninsulaqatar.com/article/12/08/2020/International-Islamic-Liquidity-Management-Corporation-issues-$1.06bn-sukuk

College of Islamic Studies at HBKU and Qatar FinTech Hub Sign MoU

The College of Islamic Studies (CIS) at Hamad Bin Khalifa University (HBKU) has signed a Memorandum of Understanding (MoU) with Qatar FinTech Hub (QFTH). Through the agreement, CIS and QFTH will engage and contribute actively to the development of the financial technology (FinTech) industry in Qatar. QFTH represents a range of stakeholders in the industry from early-stage firms to large financial services companies and relevant service providers, who stand to benefit from CIS' insights and research. The Fintech Hackathon, which was launched in June 2020, is one of the pioneering areas of collaboration between CIS and QFTH.

#Russia’s Sberbank structures Islamic finance deal to supply wheat to #Egypt

Russia’s Sberbank has structured its first trade finance deal with an Islamic bank to supply Russian wheat to Egypt. The deal with Saudi Arabia’s International Islamic Trade Finance Corporation (ITFC) was implemented through Sberbank’s subsidiary in Switzerland. Egypt’s state-run General Authority for Supply Commodities (GASC) acted as the buyer in the deal. The Russian bank said ITFC will enable it to significantly increase its share in Russian wheat exports to Egypt.

Uganda: Resolve Islamic Banking Delay, Finance Minister Directs Bou

Finance Minister Matia Kasaija has said that whereas Bank of Uganda still has challenges, it should work around the clock to quickly resolve the pending establishment of Islamic Banking. Mr Kasaija said that, as government, they had done their job to pass the law and it was now the work of the Central Bank to operationalise the Shari'a-based banking system. In 2016, government enacted the law that would introduced Islamic Banking, agent banking and bancassurance, among other products. However, whereas other products have already been established, implantation of Islamic Banking continues to be delayed.

CII helps launch Islamic Finance MBA

The Chartered Insurance Institute (CII) has teamed up with the Islamic Insurance Association of London on the launch of a new MBA in Islamic Finance. The two-year, part-time graduate degree will focus on commerce and management. Applicants will need at least two years of relevant work experience and a UK honours degree, or equivalent. Presented by the University of Bolton, the course will teach students on the unique issues associated with Islamic products, and help them identify risk elements and mitigation techniques.

Mideast family businesses should focus on succession planning, wealth transfer

The desire for wealth transition means that many family businesses may have to change their approach and look outside the family to increase that longevity rather than simply relying on the next generation inheriting the family business. It may be that the skill set or appetite of the next generation to take on the family business is simply not there. Furthermore, the inheritance laws governing the transfer of assets locally may vary from those applicable to assets located abroad. Wealth planning company Julius Baer expects to see an increase in the number of Dubai International Financial Centre (DIFC)/Abu Dhabi Global Market (ADGM) Foundations to support wealth and succession planning for clients in the UAE.

Islamic law principles applicable to the administration of trusts

Under English Law, a trustee who breaches his duties is exposed to a potential claim for breach of trust; breach of fiduciary duty; and/or negligence, and if he is a professional trustee, e.g. a bank , accountant, or solicitor, will have professional indemnity insurance cover. Unless an exemption clause is valid and exonerates the breach, or the court otherwise excuses the breach, the extent of their potential liability is unlimited, the court issue fees in the English court in a will, trust, and inheritance dispute, are relatively nominal. In exercising the general power of investment, the trustee is under a duty to have regard to the so-called ‘standard investment criteria’. These criteria also apply when the trustee reviews investments.

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