Asia

The new power brokers: How oil, Asia, hedge funds, and private equity are faring in the financial crisis

A new McKinsey Report is released reviewing the performance of the so-called "new power brokers" being sovereign wealth funds, private equity and hedge funds during the financial crisis.

The power brokers' collective performance in the financial crisis, though better than the sharp declines in wealth of most institutional investors, masks an important shift: Asian sovereign and petrodollar investors emerged as more influential than ever, while hedge funds and private equity saw their previously rapid growth interrupted.

In a 2007 report, MGI labeled these four groups of investors the “new power brokers” because they had gained enough wealth and clout to influence global financial markets. MGI revisited the power brokers to examine how their fortunes diverged over the during the financial crisis that unfolded in 2008 and projects where they may go from here, using a scenario approach.

The full report can be downloaded for free after registration:

Abolition of Commodity Murabaha and/or Tawarruq?

Mushtak Parker covered the controversy regarding the decision to abolish Organised Tawarruq of the International Council of Fiqh Academy (ICFA) in Arab News.

Badlishah Abdul Ghani, CEO of CIMB Islamic Bank seeks further clarification whether the decision covers only the so-called organized Tawarruq and reverse Tawarruq on the one hand or the classical commodity Murabaha contract likewise. In the classical Tawarruq, the third party has to be identified and cannot have any link with the financier or bank. In a commodity Murabaha this is not necessarily the case.

Tawarruq has been practiced in most countries except perhaps in Qatar where the Shariah scholars have discouraged its use per se. More and more Islamic banks in countries including Saudi Arabia, Malaysia, Kuwait and UAE, are now shunning Tawarruq, even the accepted form.

Malaysian scholars declares organised tawarruq permissible

Organised and reverse tawarruq comply with Sharia, in the opinion of Engku Rabiah Adawiah Engku Ali who advises the central bank of Malaysia provided they involve the actual sale and delivery of goods.

Amara Holdings partners with Chinese investment firm

Amara Holdings, a Dubai investment firm, and New China Trust Company’s subsidiary, Shanghai Ding Hai Investment Management Company, will identify and evaluate Islamic finance investment opportunities in China for themselves and co-investors and clients.

Al Hilal Islamic Bank to be opened in Kazakhstan

The Governments of Kazakhstan and the United Arab Emirates signed the agreement on opening of Al Hilal Islamic Bank in Kazakhstan; Aigul Tulekbayeva on Kazinform reports. The Bank’s nominal capital will make up over AED 100 mln and it will be opened in Astana and Almaty.

PT Bank Rakyat Indonesia Syariah aims to double assets by year end

Indonesian Islamic financer PT Bank Rakyat Indonesia Syariah (BRI Syariah) expects its assets to double to 3 trillion rupiah by the end of the year.

ADB, IDB setting up Islamic fund to finance infrastructure

To speed up the development of infrastructure projects, the Asian Development Bank (ADB) and the Islamic Development Bank (IDB) have agreed to set up Asia's first major multi-country USD 500 mn Islamic infrastructure fund.

The 12 targeted countries are Afghanistan, Azerbaijan, Bangladesh, Indonesia, Kazakhstan, Kyrgyz Republic, Malaysia, Maldives, Pakistan, Tajikistan, Turkmenistan and Uzbekistan.

Tawarruq controversy, Mohammad Akram Laldin approves of it

Sharia scholar Mohammad Akram Laldin rules organised tawarruq as not violating Islamic law principles.

New Certificate in Risk Management for Islamic Financial Institutions

The Global Association of Risk Professionals and the Banque du Liban recently announced the development of a new program, the Certificate in Risk Management for Islamic Financial Institutions.

The explosive growth in, and increasing sophistication of Islamic financial products has created the need for standards and guidelines for sound risk management approaches analyzing these financial instruments.

The Certificate is expected to be available in 3Q 2009

3 Indonesian banks to open Islamic units

Three national banks are in the process of opening Islamic units to respond to growing demand for sharia banking services, an official was cited in Antara: Bank Central Asia (BCA), Bank Panin and Bank Victoria.

New Islamic bank in Indonesia

Reuters reported on 18 March that Indonesia's third-largest lender, PT Bank Central Asia Tbk, is planning to launch an Islamic bank in September following its acquisition of a small bank last year, its vice president director said.

Manulife applies for Takaful license

Insurer Manulife Holdings Bhd will submit an application before the end-October deadline for a takaful licence to tap into the growing Islamic insurance market. The plan by Manulife to seek a takaful licence is in line with the Government’s move to liberalise the financial sector and allow more takaful players into the market.

Group issues Sukuk in favour of CIMB Islamic Bank

BUMIPUTRA-Commerce Holdings Bhd, said it received approval from the Securities Commission for the sale of as much as RM 2 bn Sukuk, to be made availabl to CIMB Islamic Bank.

Indonesian PT Bakrieland Development Tbk going to raise Sukuk

Indonesian property firm PT Bakrieland Development Tbk wants to raise up to 300 billion rupiah from an Sukuk issue, or twice the amount previously indicated. Bakrieland has appointed PT Bahana Securities and PT Madani Securities as underwriters for the sukuk. The firm plans to issue a 2-year tranche with an indicative yield of 14-15 %, and a 3-year tranche with an indicative yield of 15-16 %.

HwangDBS Investment Management Bhd HwangDBS AIIMAN Sukuk Fund (ASF)

HwangDBS Investment Management Bhd launched its first local sukuk fund, HwangDBS AIIMAN Sukuk Fund (ASF).

Indonesia' Govt Aims For USD 485 mn Of Sukuk Sold By End Q2

The government plans to sell up to Rp 5 trillion (USD 485 mn) of Sukuk, to institutional investors in the domestic market by the end of the second quarter.

IDB finances several projects in Turkistan

The Islamic Development Bank (IDB) granted a USD 31 mn facility to Turkmenistan to finance the purchase of two "river-sea" vessels with the capacity of 7 tons each for transportation of oil and oil products.

Istanbul Declaration Adopted By The First Meeting Of The Development And Cooperation Institutions

Istanbul Declaration Adopted By The First Meeting Of The Development And Cooperation Institutions Of The Member States Of The Organisation Of The Islamic Conference (May 13-14, 2009) Istanbul, Republic Of Turkey

Date: 16/05/2009 - View in: Arabic | French - Print

We, the Heads/Representatives of the Development and Cooperation Institutions (DCIs) of the Member States of the Organisation of the Islamic Conference (OIC) and the Heads of Delegations participating in the First Meeting of the Development and Cooperation Institutions of the OIC Member States held in Istanbul, Republic of Turkey on 13-14 May 2009,

Inspired by the OIC Ten-Year Programme of Action, adopted by the Third Extraordinary Islamic Summit held in Makkah Al-Mukarramah in December 2005,

Commending the OIC General Secretariat, the Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC) and the Turkish International Cooperation and Development Agency (TIKA) for their initiative of convening the First Meeting of the Development and Cooperation Institutions of the OIC Member States,

PT Berlian Laju Tanker Tbk, Indonesia issues Sukuk

Indonesian shipping firm, PT Berlian Laju Tanker Tbk , in a prospectus published in Bisnis Indonesia newspaper, the firm said it plans to sell 400 billion rupiah of conventional bonds and 100 billion rupiah of ijarah sale-and-leaseback sukuk, which will be offered May 20-25.

It has appointed PT Danatama Makmur and PT Andalan Artha Advisindo Sekuritas as underwriters.

Singapore shall focus on Islamic finance and Green Sector

Economists said two sectors which Singapore should focus on as it gears up for a global economic recovery are Islamic Finance and the green sector.

They said the country should also look to regions like the Middle East and Africa for new opportunities.

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