IslamicFinance.de

A combined team of partners and associates from the corporate and finance groups of Ogier's Cayman office recently advised Gatehouse Bank plc on its joint venture with Sigma Capital, for the construction of an initial 927 new rental homes, with a total development cost of approximately £110 million.

The year in Islamic finance 16/10/2014 Banking & Finance analysis: As we head towards the start of the new Islamic year, we ask a panel of experts to consider the development of Islamic finance and the future of this growing sector. They were asked about important developments within Islamic finance during the past year, as well as commonly used Islamic finance structures. Moreover, they gave their opinion about the development of the sector in the next 12 months. Another question concerned the international standard setting bodies and their divergences in applying Shariah law.

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 Inland Revenue and Stamp Duty Legislation (Alternative Bond Schemes) (Amendment) Ordinance is a new piece of legislation, introduced in Hong Kong. This law, which puts the taxation of sukuk on a level footing with conventional bonds in Hong Kong, marks a significant effort by the Hong Kong Government to promote the development of a sukuk market in the territory. However, success in developing a market for Islamic finance is not just about regulation and tax. Most importantly, it is about ethics, in the form of Shariah compliance. Islamic finance continues to be dominated by banking. Insurance (takaful) has received much less attention and its development reflects a degree of neglect. The problem lies in the widespread use of takaful and retakaful contracts which are nothing more than conventional insurance and reinsurance contracts. A strong ethical framework needs to be created and enforced within which Islamic finance can thrive.

On March 19, 2012, certain Arcapita entities filed voluntary petitions under chapter 11 of the US Bankruptcy Code as a means to reorganise their business and restructure over US$2.5bn of indebtedness. Arcapita’s chapter 11 process is still
ongoing but is already creating a new landscape for Middle Eastern companies to consider when they face restructuring scenarios. Several key elements of Arcapita’s ongoing chapter 11 process demonstrate that a chapter 11 filing can
be an effective means of implementing a restructuring for a Middle East-based company, including procedures
to prevent enforcement action by creditors, maintain the debtor’s control over its own restructuring and obtain access to new financing needed to complete a restructuring.

PwC Luxembourg in association with the Luxembourg Stock exchange publishes a new brochure about Sukuk listing in the Grand Duchy. This document distributed on 6 May 2013 during the “Journée boursière” provides an overview of the Islamic Finance Market in Luxembourg and highlights the benefits of Sukuk Listing and Trading in Luxembourg. 16 Sukuk have been listed on the Luxembourg Stock exchange. With more than 3,127 listed issuers coming from 103 countries, the Luxembourg Stock Exchange meets capital market players’ needs. Luxembourg remains one of the most competitive, stable and secure environments in Europe to locate securitisation transactions. The development of Islamic Finance in Luxembourg has been set as priority by the Grand Duchy.

International business leaders and in-house counsel gathered at the Patton Boggs office in Doha yesterday for an in-depth briefing on recent developments in U.S. and UK Anti-bribery laws, implications and compliance measures. Patton Boggs Partner and International practice Chair Joseph Brand lead a discussion on the U.S. Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act. The seminar held aimed to foster a more comprehensive understanding of the anti-bribery laws among U.S. and UK companies. It was the first in a series of seminars to help businesses operating in the Gulf to be compliant.

The Takaful market has been growing steadily and remains unsaturated with huge growth potential. Global Takaful contributions grew by 19 per cent in 2010 to US$8.3 billion and were forecast to reach US$12 billion in 2012.