Utility companies face demand and consumption doubling, even tripling in 20 years, say organisers of region’s biggest international industry trade show The coming two decades are expected to see the biggest ever expansion of power generation capacity in the Arabian Gulf countries with the coming year seen as a turning point, say leading industry observers. […]
Michelin Luxembourg SCS: publication of the Annual Financial Reports The Annual financial reports of Michelin Luxembourg SCS, comprising the audited annual accounts, the Annual report of the Supervisory Board and the management declaration are available on the internet site of the Michelin Group at the following address: www.michelin.com/corporate, under the heading « Finance », « […]
Finance Minister Mohammad Abu Hammour on Sunday stressed the importance of Islamic sukuk describing them as strategic for the government. He said the government is interested in issuing sukuk as soon as possible indicating that at present, there is a legislative obstacle which precludes the issuance of such financial instruments. According to the minister, the government will examine means to overcome this barrier without having to introduce any legislative amendments.
The third edition of Ernst & Young’s World Takaful Report 2010: Managing performance in a recovery, unveiled at the 5th Annual World Takaful Conference of 2010, confirms that global Takaful industry is well on course to surpass US$8.8 billion in contributions in 2010. Contributions grew by 29% in 2008 to reach US$5.3 billion. Takaful refers to Shari’a-compliant cooperative insurance.
Saudi Arabia and Malaysia are biggest markets
Saudi Arabia, with contributions totalling US$2.9 billion in 2008, and Malaysia with US$900 million are the top two takaful markets in the world. Sudan is the most significant market outside of the GCC and SE Asia, with contributions totalling US$280 million in 2008.
UAE and Indonesia are fastest growing markets
Global compound annual growth rate for takaful for the period 2005 – 2008 has been 39%; the Levant region and Africa grew at 18%, the Indian Subcontinent at 135%, SE Asia at 28% and the GCC at 45%. The UAE was the fastest growing takaful market in the world with a compound annual growth rate of 135% from 2005-2008 while Indonesia rose quickest in SE Asia at 35%.
Generating profitability remains a challenge
Dubai property developer Nakheel’s trade creditors, unpaid for months, will be offered a hefty 10 percent return, a starting point for negotiations with trade creditors of the company, on a planned Islamic bond as Dubai tries to unblock a cycle of stalled bill payments to kick start its economy.
Dubai unveiled a $9.5 billion (6.1 billion pounds) rescue plan for Nakheel’s parent, state-owned Dubai World, last month, which calls for Nakheel’s trade creditors to get repayment of 40 percent in cash and 60 percent in a tradable security.
The offer is a generous one — especially in light of Dubai World’s opening offer to bank lenders of just one percent on two new tranches of debt maturing in five and eight years — and signals the trade creditors‘ dominant position in debt talks.
The government is placing a great deal of importance on trade creditors because if they do not receive cash flow, it will put pressure on construction and real estate markets, which will affect workers at the firms and hurt the overall economy, he said.
Investors are betting Dubai World will pay off $980 million (Dh5.5 billion) sukuk issued by its property arm Nakheel to avoid a default as it negotiates a debt restructuring proposal with creditors worth about $24 billion. The sukuk, or Islamic bond matures May 13.
According to Zawya.com’s Sukuk Monitor, Nakheel’s sukuk is up 4.5 per cent since the beginning of April and closed at Dh98 on Monday in which it is up almost 85 per cent since the start of March.
People are expecting repayment, however Dubai World, owned by Dubai’s government, declined to comment on the prospects of the sukuk being paid off.
Last month, Dubai World offered a debt restructuring proposal to creditors. The sukuk due in May comes after another $3.52 billion bond issued by Nakheel was paid off last December. In the weeks before that bond matured, hedge funds bought up the debt, hoping to go after the international assets of Dubai World, which had guaranteed the bond.
Libya’s Central Bank said three European banks and three Arab banks from the Gulf region had qualified for joint-venture bank licence bids. The central bank had said in early February it would allow foreigners to open joint-venture banks with local investors for the first time in 40 years.
European banks such as Unicredito SpA, HSBC Holdings Plc and Standard Chartered Plc were picked to submit bids alongside Arab banks Qatar Islamic Bank, Mashreq Bank and National Bank of Dubai.
The central bank has set June 15 as the deadline for the six to submit the required documents.
Libya has a total of 19 banks, including four devoted to specific banking services, such as Rural Bank, which focuses on microcredits, and Savings and Real Estate Investment Bank, specialising in banking services for real estate and housing, according to local Libyan bankers.
Islamic banking and insurance have shown significant progress in recent years in Pakistan, compared to conventional banks. In 2008, as many as 217 new branches of Islamic banks were established taking the tally to 506 from 289.
State Bank of Pakistan (SBP) reported that the growth of the Islamic banking sector was more than that of conventional banking and there is still a lot of potential.
At the end of December 2007, Islamic banking deposits were Rs 147b and assets were estimated at Rs 206b. There was also a comprehensive increase of more than 30 per cent in its reserves.
Growth continued in 2009 and according to the SBP, the sector grew 12.4 per cent by July- September 2009. Total assets of Islamic banking in the country reached Rs 325b in September 2009 compared with Rs 313b in June 2009.
The Islamic Banking industry envisions achieving a share of 12 per cent by 2012 according to the SBP. Country Head of Albaraka Bank, Shafqaat Ahmad said that Islamic banking provides a solution to all economic crises being faced by the world.
Abu Dhabi becomes regional focus for building contractors and suppliers – product sustainability and quality key to meeting developers’ demands The inaugural CityBuild Abu Dhabi trade exhibition for the building and construction industry which closed today (21 April 2010) laid the foundation for new business opportunities in the capital of the United Arab Emirates, according […]
Pioneering woman ‚opening doors‘ in construction CityBuild Excellence in Construction Award winners with their awards. A pioneering senior executive who has broken male domination of the region’s building industry boardrooms has received the first-ever Woman in Construction Award. Receiving the award at CityBuild Abu Dhabi, a new trade show for the Middle East building and […]
