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National Takaful Company Watania has announced positive financial results in 2019, as the company's net profit increased to 13.1 million UAE dirhams, compared to 9.4 million dirhams in 2018. The company launched many new initiatives in 2019 to boost its overall performance, most of these initiatives focused on enhancing the levels of customer service. A new digital platform was launched that allows one of the fastest quotations and policy issuance system for motor business in the UAE market. The Company was among the first ones in UAE to subscribe to Blockchain technology to manage the motor claims recovery process. Chairman Dr. Ali Saeed Bin Harmal Al Dhaheri is confident that once the corona crisis is over and businesses start to get back to normal, Watania will be in a good position to seize the advantage.

Oman's Bank Nizwa recently hosted a special dinner event for local Treasury Dealers and Financial Institution managers. With over 60 guests the gathering was a networking opportunity for industry professionals to share views and discuss the latest trends of Islamic finance. Islamic banking in Oman has shown robust growth with Islamic banking entities providing financing to a record of RO 4 billion by the end of 2019, a growth of 11%. Since its initiation in December 2012, Islamic banking now constitutes 13.9% of the overall Oman banking system assets. Bank Nizwa has been organizing such events to clients with other participant banks and financial institutions on a variety of important topics. The bank has partnered with IFN and Takaful Oman to raise awareness over Islamic finance services by organizing specialized forums and seminars across Oman.

Dubai Financial Services Authority (DFSA) has published the UAE’s first Guiding Principles on Sustainable Finance. The Guiding Principles are the result of co-operative efforts among a number of authorities in the UAE, namely the Dubai Financial Services Authority, the Central Bank, the Insurance Authority, the Securities and Commodities Authority, the Financial Services Regulatory Authority of the Abu Dhabi Global Market, the Ministry of Climate Change and Environment, the Dubai Islamic Economy Development Centre, the Dubai Financial Market, Nasdaq Dubai, and the Abu Dhabi Securities Exchange. The Guiding Principles are based on the United Nations Agenda for Sustainable Development and will serve as a catalyst for the implementation of the UAE’s sustainability priorities.

UAE real estate developer Deyaar Development has partnered with Dubai Islamic Bank (DIB) to benefit from the bank’s attractive and customised home financing solutions. The solutions will enable customers to make full payment on handover of their property through flexible home financing programs, with monthly installments up to 25 years with options to further extend their home payments at competitive rates. Handover of Afnan District, the first of six districts within Deyaar’s Midtown integrated urban development, began in early November. Comprising seven buildings ranging from seven to 16 floors, Afnan District has a total of 659 apartments, including studios, one-, two-, and three-bedrooms, all of which are sold out.

Bahrain Islamic Bank (BisB) announced the launch of open banking services starting from 1st of July 2019. This is the result of the Central Bank of Bahrain (CBB) and its directive to integrate all retail banks in the Kingdom with FinTech companies. The open banking services features two types of services. The Account Information Service grants customers access to their bank account data from different banks through a single unified platform. The second service entails transfers between different accounts through a single application. According to BisB CEO Hassan Jarrar, Open Banking is a game changer, offering new online payment channels without the need for credit cards or debit cards.

The GCC banking sector is undergoing major consolidation phase with 20 banks negotiating mergers and acquisitions with an estimated $1 trillion worth of assets. The UAE leads the pack with highest number of mergers both in terms of value and volume. Currently, six mergers and acquisitions are being negotiated or underway in the UAE banking worth sector worth $625.25 billion followed by two M&As in Saudi Arabia worth $256 billion and one each in Kuwait and Oman. According to Moody's Investors Service, the recent merger and acquisition drive will help the sector by easing overcapacity and boosting profitability. Moody's Senior Analyst Ashraf Madani says that slow growth and subdued credit demand in the region are the biggest drivers of consolidation.

According to S&P Global Ratings, Islamic banks of the Gulf Cooperation Council (GCC) are expected to show resilience over the next two years after weathering tough market conditions in 2018. Last year they expanded slower than conventional peers for the first time in five years. The growth forecast for Islamic banks for 2019-2020 is the same as what the rating agency is estimating for conventional lenders in the region. S&P Head of Islamic Finance Mohamed Damak forecasts a muted GCC economic growth over this period, despite some benefit from government spending and strategic initiatives such as national transformation plans and Dubai Expo 2020. However, with the transition to IFRS9/FAS 30, Islamic and conventional banks will even more closely align. Another trend is the significant increase in Islamic banks’ coverage ratios at end-2018, coupled with a stable cost of risk that is lower than conventional banks.

Mergers and acquisitions will inevitably happen in the UAE's overcrowded insurance and Takaful industry. According to Vasilis Katsipis, general manager at AM Best, there are several reasons that hamper local insurers and Takaful firms from consolidation. Individuals holding larger stakes in the companies are willing to sell at a much higher price which is not attractive for the buyers. Also, it is not a high priority for the owners either in terms of liquidating assets or in terms of spending time. Katsipis noted that if it is purely for financial reasons, then the market will see some activity in terms of consolidation in the next two years. According to Safder Jaffer, managing director of Milliman, the lack of long-term view of profitability by shareholders, low interest rate environment and lack of expertise continue to be a main challenge for takaful companies.

According to Moody’s Investors Service, the GCC region's sukuk issuance fell by 32% to reach $16.7 billion in the first half of 2018. This contributed to a reduction in the Gulf’s overall share of the global sukuk issuance to less than a third (30%) compared with 39% a year earlier. The GCC also dragged down total global issuance which fell by 12% to reach $55 billion in the first six months of the year. Recovery in the oil price has reduced pressure on Gulf government’s budget deficits and helped lower their borrowing requirements. While Islamic bonds have fallen out of favour in the Gulf, their appeal remains strong in Malaysia. The South-East Asian country increased its issuance by 9% in the first half of the year to reach $22.4 billion, making it the world’s leading Sukuk issuer.

Singapore-based fintech firm Finterra has developed a crowdfunding platform that uses blockchain to create smart contracts that would be linked to specific Waqf projects. Cash Waqf is a type of Waqf which is categorised as movable Waqf. It aims to promote service to mankind by establishing the endowment using money as opposed to using immovable assets. The idea of Waqfcoin lies on the principles of cash Waqf. Blockchain technology can be used to build trust in Waqf management and to ensure accountability. The technology could also provide a comprehensive global database on Waqf, which can be easily created and maintained in a transparent manner.

Fidor Solutions has opened its newest office in Dubai Silicon Oasis (DSOA), the integrated free zone technology park. DSOA's Deputy CEO, Juma Al Matrooshi and Fidor's Founder Matthias Kröner led the inauguration of Fidor’s regional headquarters in the presence of senior officials. Fidor is committed to contributing to the region’s growth by helping strengthen the fintech community and support the region’s economy through local employment and new talent searches. Commenting on the expansion, Matthias Kröner said Dubai was the natural next step for Fidor, especially because of the region’s growth within ecommerce, payments and its overall digitisation. Juma Al Matrooshi congratulated Fidor on expanding its regional presence in the Middle East and assured that the digital banking provider will significantly benefit from this location.

National Bank of Fujairah (NBF) announced the completion of a Shari’a-compliant bullion financing transaction with Malabar Gold. It is the first bullion financing in accordance with the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) standards on gold in the UAE. This partnership follows the launch of the AAOIFI Shari’a Standard on Gold in December 2016. The standard lays out a clear guidance on the permissibility to trade in gold in a shari’a compliant manner. It also enables Islamic finance institutions to develop new gold-based products and transactions. Vince Cook, NBF’s CEO, said he was delighted to be at the forefront of this major transaction in the gold and jewellery market. He thanked for the support of partners Malabar Gold, Amanie Advisors and World Gold Council.

The Arab Petroleum Investments Corporation (APICORP) has launched a USD 500 million 5-year sukuk off its USD 3 billion Trust Certificate Programme. APICORP undertook extensive investor meetings at the beginning of October in Asia, in the UAE and in London. The extensive marketing explains the successful outcome which included a book in excess of USD 3.45bn from 215 investors. The final distribution was 41% MENA and 59% in Europe, Asia and off-shore US. CEO Ahmed Ali Attiga said that with over 200 investors APICORP had firmly planted its flag in the capital markets. He added that the success of this transaction was testament to APICORP’s impressive 40 year track record and Aa3 credit rating. Abrar Hussain, Head of DCM at Credit Agricole CIB, mentioned that the extensive set of investor meetings also contributed to the oversubscription of the sukuk.

Thomson Reuters will provide Alinma Bank with a Shariah-compliant application. It will fully automate deal workflow for Shariah-compliant financial transactions. The application provides a real-time view of Shariah-compliant deals, through an automated online system that minimizes the process of tracking transactions. Alinma Head of Treasury, Abdullah Al Zahrani, said that he was pleased to be the first bank in Saudi Arabia to partner with Thomson Reuters to bring innovative solutions to the Shariah-compliant banking. Nadim Najjar, Managing Director for MENA at Thomson Reuters, said this innovative application would automate the validation process and offer a seamless digital solution for the industry.

Moody’s Investors Service has upgraded Dubai Islamic Bank’s (DIB) local and foreign currency long-term issuer ratings to A3 from Baa1. The outlook for the bank has been changed from positive to stable. Moody's also upgraded the bank’s baseline credit assessment (BCA), adjusted BCA as well as the long and short-term counterparty risk assessment. The primary driver for the BCA upgrade is the bank’s significant improvement in its asset quality and provisioning coverage. The upgrade also captures DIB’s improving profitability in recent years, with return on assets (ROA) improving to 2.0% for 2016. DIB said that its net income rose 13.8% in the second quarter to Dh1.1 billion compared with Dh929 million in the same period last year. Going forward, the rating agency expects that the bank’s net profitability may face modest pressure, due to increased funding costs, but that it will remain above the domestic average and global median.

The Arab Regulators Conference, hosted by the Arab Monetary Fund, took place on 8-9 March in Abu Dhabi. The two-day conference was an opportunity for regulators to engage in an open dialogue on how to strengthen the development of corporate governance across the region. The conference was attended by over 160 delegates from 17 different countries from both the regulatory and the private sectors. Abdullatif Al Othman, Chairman of Saudi Arabian Industrial Investments (SAIIC) highlighted the importance of corporate governance. He urged attendees to adopt the highest international standards of corporate governance, to help move the region from frontier markets to emerging markets to developed markets. This year, board diversity and women’s role on the board were also widely discussed as were governance trends and best practices.

With the growing demand for Islamic finance, the need for specially-educated professionals in the field becomes crucial. Ahmed Alkholifey, chairman of Saudi Arabian Monetary Authority (SAMA) elaborated this idea in his keynote speech on the second day of the 23rd World Islamic Banking Conference. As an attempt to tackle the lack of human capital in Islamic banking industry, the Bahrain Institute of Banking and Finance (BIBF) attempts to train individuals on the field providing degrees that combine theory and practice. Ahmed A. Hameed Al-Shaikh, deputy director of BIBF, said one of the most popular courses was Advanced Diploma in Islamic Finance (ADIF), which gives a general yet intensive overview of Islamic finance. Education provided at BIBF is tailored to cater to each group of students as needed.

Noor Bank closed an AED 850 million Syndicated Islamic Financing Facility for Ajman Bank. The two-year Shari’a compliant facility shall be utilised towards Ajman Bank’s future growth plans. Noor Bank was mandated for the second time to act as Lead Arranger. Dubai Islamic Bank, First Gulf Bank, Sharjah Islamic Bank, The Arab Investment Company and Warba Bank joined the deal as Mandated Lead Arrangers, while National Bank of Bahrain participated as an Arranger. Commenting on the facility, Noor Bank's CEO Hussain Al Qemzi said that this syndication was testament to Noor Bank's service quality and the relationship amongst the two institutions. He expressed his gratitude to Ajman Bank and all the partner banks who helped to close the transaction.

Dar Al Sharia Islamic Finance Consultancy has recently confirmed that the shares of DAMAC Properties are Sharia-compliant for the purposes of investment and trading. Adil Taqi, Group Chief Financial Officer of DAMAC Properties, said this certification will open up new horizons by attracting a wider range of potential investors that seek Sharia-compliant financial instruments. DAMAC's financial ratios are within the acceptable limits prescribed by the Accounting and Auditing Organisation for Islamic Financial Institution (AAOIFA) Sharia Standards and the Dubai Financial Market (DFM) Sharia Standard for share trading. DAMAC Properties’ financials will be reviewed on a quarterly basis in order to ascertain the ongoing Sharia compliance status.

The first China-UAE Conference on Islamic Banking and Finance is organized between May 24-25, 2016 in Beijing, China. The Conference will serve as an international platform for experts, decision-makers, scholars, academicians and other Islamic Banking and Finance stakeholders to exchange knowledge and best practices. The debuting conference aims to capitalize on the strategic ties between the UAE and China to identify challenges and opportunities related to Islamic finance.