Finance News

NBAD launches Sukuk Income Fund

admin — Mon, 14 May 2012 09:54:34 +0000

The National Bank of Abu Dhabi (NBAD) has launched its Sukuk Income Fund, a unique product investing in Sharia'h-compliant investment instruments that provides investors attractive returns with low levels of risk.
The NBAD Sukuk Income Fund represents an open-ended and actively managed product aiming a profit rate of 5% based on current market conditions. It is for institutional and individual investors who can invest as low as USD500 either through lump sum or regular savings plans.
The Fund is intended to catch the best opportunities available to investors by investing in a range of Sukuk and money market investments that are launched by the UAE Government.

Ex-CEO loses civil case against Bahrain’s Bank Alkhair

admin — Tue, 08 May 2012 12:10:34 +0000

The former chief executive and founder of Bahrain's Bank Alkhair has lost a civil court allegation in the kingdom which chased to strike down his dismissal by the bank, the latest round of a legal battle between the two parties.
The judgement is the latest development in a series of legal cases following Al-Refai's departure from the bank.

Temenos Continues to Show Strength in Islamic Banking

admin — Tue, 08 May 2012 10:43:22 +0000

Temenos revealed that United Installment Sales Co. Ltd. (UIS) and Lexus & Daihatsu in Saudi Arabia, has signed an agreement to utilise Temenos’ market leading core banking solution, T24, for its Islamic Real Estate Financing & Vehicle Leasing transactions.
The latest version of T24 contains significant enhancements that allow Temenos to improve its Islamic Banking offering, including Sharia-compliant automated workflows, permitting Islamic Banks to streamline processes such as booking Murabaha, Mudaraba, Istisnaa or Ijara contracts with enhanced operational efficiency.

lnterest Free Microfinance through Cooperatives

admin — Tue, 08 May 2012 10:40:22 +0000

The Sahulat Microfinance Society, a National NGO working for the financial inclusion through cooperative based microfinance, will lead a national consultation on “lnterest Free Microfinance through Cooperatives: Challenges and opportunities”.
The keynote speaker will be Prof. Dr M S Swaminathan. The Consultation has the purpose to focus on steps to defeat the practical hurdles in registration process of interest-free Microfinance Cooperative societies all over the country.

Islamic banks ‘facing market challenges’

admin — Tue, 08 May 2012 10:36:48 +0000

Despite the fact that islamic banks have outperformed their conventional peers in most markets, a closer look presents the market dynamics are changing, revealing a new trend.
Two key indicators are cause for reflection: slowing growth rates and eroding profitability, as A T Kearney, a global management consultancy, states.
Cost income ratios are increasing in most markets, putting pressure on profitability. At the same time, declining growth rates are occurring in key geographies including Saudi Arabia, Bahrain and the UAE.

Indonesia Debt Drops Most in 8 Months on Fuel: Islamic Finance

admin — Tue, 08 May 2012 10:33:48 +0000

Indonesian two-year sukuk dropped last month, raising up yields by the most since September, as Standard & Poor's.
S&P didn’t associate with Moody’s Investors Service and Fitch Ratings, which have allowed Indonesia investment-grade status in the past five months, declaring the nation at risk from “policy slippages” such as the failure to reduce the fuel subsidies.

Meethaq Sharia board endorses RO 150m capital for Islamic banking window

admin — Tue, 08 May 2012 10:30:41 +0000

The Shariah board of ‘Meethaq’ Islamic banking gave the approval for RO 150 million capital assigned by BankMuscat for its Islamic banking window operations awaiting regulatory approval. The board from Shariah perspective authorized the authenticity of capital allocation from BankMuscat shareholders’ fund for operations of independent Meethaq Islamic banking.
Sheikh Dr Ali Qaradaghi, Chairman of Shariah board, revealed that the capital allocation is in line with injunctions of al-Quran and as-Sunnah and the fact that various contemporary Shariah scholars have supported the usage of shareholders' fund for Sharia compliant transactions.

Islamic banks need to tackle slowing growth rates, says A.T. Kearney

admin — Tue, 08 May 2012 10:27:44 +0000

According to A.T. Kearney, the modifying market dynamics are showing a new trend, with two key indicators giving cause for reflection: slowing growth rates and eroding profitability.
Descending growth rates are coming up in key geographies including KSA, Bahrain and the UAE, where growth rates have dropped to between 3% and 8% from double-digit figures.

Sukuk fuels economic expansion in Saudi Arabia

admin — Tue, 08 May 2012 10:24:35 +0000

Animated by the global economic turmoil, global deleveraging leads to a reduction in global bank credit available for Saudi companies and projects. But funds are neccessary and the government is correctly hesitant to offer it directly.
Richard Banks, Director of Euromoney Saudi Arabia Conference, states that despite the fact that important progress has been made in sukuk issuance, the active names have tended to be large companies.
This year's Euromoney Saudi Arabia Conference will tske place in Riyadh on 22-23 May 2012 in partnership with the Ministry of Finance, key figures from the public and private sector will discuss how this funding gap can be filled.

NETWORK FOR MIDDLE EAST FAMILY BUSINESSES LAUNCHED

admin — Mon, 07 May 2012 08:03:24 +0000

Family businesses are estimated in the Middle East at around 90% of all companies in the region controlled by families. Furthermore, its importance was underlined with the launch of the Family Business Network GCC, the first of its kind in the area.
The network will be based in Dubai, including members of the Gulf Cooperation Council, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

Muslims on Wall Street: Pragmatic over dogmatic

admin — Mon, 07 May 2012 07:58:07 +0000

Despite the fact that they have been around for many years, they are only now being noticed because of a variety of factors.
The difference between then and now is that there are more Muslims in the financial sector and non-Muslim colleagues know more about Islam because of a combination of internet, 24-7 news, 9/11, documentaries, Dubai's accomplishments, Islamic finance and personalities like His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
After New York Times recently interviewed several American Muslims, two ‘conflicts' were elaborated: Muslims working in conventional finance may encounter ‘interest' against their faith, and challenges of abiding by Islamic ‘traditions' in a secular workplace.

Shariah Funds: Will they rise and shine?

admin — Mon, 07 May 2012 07:49:56 +0000

An interesting concept, slowly gaining momentum in the Indian mutual fund industry, is mutual Fund houses launching specific schemes catering to philosophies reproduced by a particular community.
There are currently 3 Shariah compliant funds in the mutual fund space, one being a passively managed fund, while the other two funds are actively managed.
An observation of the AUM of these funds demonstrates that the ETF's corpus has actually witnessed a downward trend. If a closer look is taken at the total AUM of all equity diversified funds, it could be seen that the actively managed Shariah funds constitute only 0.11% of this total AUM. This clearly shows that the investors for whom this product is actually designed are not really aware about this offering.

AAOIFI to convene its Annual Shari’a Conference

admin — Fri, 04 May 2012 11:19:55 +0000

Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) will arrange its Annual Shari'a Conference on 7 and 8 May 2012 in Manama, Kingdom of Bahrain. The conference will be held under the patronage of the Central Bank of Bahrain.
The conference represents a part of AAOIFI's consultation with the industry to help its standard-setting efforts.
Some of the topics that will be discussed at the conference include Shari'a compliance and supervision processes, continuing development of Islamic financial and capital markets, legal issues in Islamic finance, potential areas for further growth of Islamic finance, and development of human capital resources in Islamic finance.

Edbiz Consulting publishes third Global Islamic Finance Report

admin — Wed, 25 Apr 2012 09:27:22 +0000

The third annual Global Islamic Finance Report (GIFR) 2012 was made in association with the Saudi-based National Commercial Bank and Malaysian-based CIMB Islamic and some other partners in Islamic banking and finance industry. The report is composed of in depth research and analysis on the Islamic financial industry.
After the success of the previous two GIFRs, the GIFR 2012 persists its objective of informing readers about the current state of the international Islamic finance market.
A unique characteristic of the GIFR 2012 is its special focus on social responsibility and philanthropy. The core section of the GIFR 2012 is outlined into three virtual themes revolving around social responsibility and philanthropy.

Gilmore speaks of aim to develop Ireland’s involvement in Islamic finance

admin — Wed, 25 Apr 2012 09:15:43 +0000

Tánaiste Eamon Gilmore addressed a seminar on the Government’s purpose to make Ireland a European hub for Islamic finance.
He announced the International Fiscal Association Ireland seminar that Ireland is currently the location for an evaluated 20pc of Sharia compliant funds stationed outside the Middle East. Moreover, he added that Ireland must be tought of as a gateway to the world.

Banque Saudi Fransi Sets Up $2 Billion Islamic Bond Program

admin — Wed, 25 Apr 2012 09:08:10 +0000

Banque Saudi Fransi arranged a $2 billion Islamic bond program as part of the Riyadh-based lender’s plans to mix up its sources of financing.
Islamic bond sales in Saudi Arabia, the world’s largest oil exporter, progressed to a record $6.55 billion so far this year as the government’s spending plan encourages companies to raise funds to invest.
Lead arrangers of the program were Citigroup Inc. (C), Credit Agricole, Deutsche Bank AG (DBK).

Slower takaful growth prompts strategy rethink

admin — Wed, 25 Apr 2012 09:03:45 +0000

Takaful statistics reveal that the growth of the business is slowing, amplifying pressure on the sector to boost efficiency, roll out new products and try out new markets.
According to Shyam Sankar, regional head of insurance sales through bank channels at Bahrain-based Medgulf Allianz Takaful, the industry's big challenges contain building product awareness and making consumers realise the importance of saving over the long term.

Egypt’s Corporate Social Responsibility

admin — Wed, 25 Apr 2012 08:41:55 +0000

The Supreme Council of the Armed Forces seminar titled ‘January Revolution and Horizons of Economic Growth' has the strong oppinion that Egypt’s economy is at risk.
The statement was based on the unprecedented decline of economic conditions in post-Mubarak Egypt: poverty rates at 70%, economic growth sliding to 1 to 2%, and hard currency reserves that have descended to $28 billion from $36 billion.
Egypt finds itself at social, economic and political crossroads. As the post- Mubarak government is still struggling to fulfill the existing societal challenges and fulfill the people’s revolutionary aspirations, socially responsible behavior (SRB) on the othger side, taken on by both individuals and corporations seems to be a real promise.

Qatar Islamic 1st-Quarter Profit Jumps 21%; Beats Estimates

admin — Wed, 25 Apr 2012 08:33:44 +0000

Qatar Islamic Bank's first-quarter profits jumped 21% on higher fee and commission revenue, beating analysts estimations.
Qatar’s banks improved lending as the country raised spending on infrastructure including a new airport, seaport, roads and rail systems. Central bank data reveals that the nation’s total credit facilities, including loans, rose an annual 31% in February while deposits were up 5.5%.

Allen & Overy advises on Saudi Electricity Company Sukuk

admin — Wed, 25 Apr 2012 08:26:39 +0000

Allen & Overy, associated with local law firm Abdulaziz AlGasim Law Firm, advised Saudi Electricity Company (SEC), on the successful closure of its $1.75 billion dual-series Sukuk issue. The transaction represents SEC's first international Sukuk issuance and the largest international debt capital markets issuance to date out of Saudi Arabia.
The transaction was organized as a Sukuk al-ijara, with the two series of trust certificates launched by Saudi Electricity Global SUKUK Company.

UMNO’s Islamic finance expert slams PTPTN’s un-Islamic practice

admin — Wed, 25 Apr 2012 08:21:04 +0000

An UMNO-linked Muslim scholar and economist has characterized the study loans supplied by the National Higher Education Fund Corporation as un-Islamic.
Dr Asyraf Wajdi Dusuki, head of research at the International Shariah Research Academy for Islamic Finance (ISRA), states that the current practice of dictatting a 'service charge' on borrowers was not excused by Islam and was contrary to Islamic financial laws as agreed by Islamic scholars.
According to him, the service charge must show the actual cost and cannot be based on a percentage of the loan.

Islamic finance industry grew by 24.4% & global Sukuk issuance increased by more than 60% in 2011

admin — Wed, 25 Apr 2012 08:16:28 +0000

The National Commercial Bank has recently cooperated in the Islamic Finance Forum coordinated by Harvard University in the United States of America. The forum is a praised annual event that gathers top scholars, researchers and analysts, with economists and industry leaders in Islamic Finance from around the world.
Being at its tenth session this year, the forum's agenda was centered on discussing the role of Islamic finance in the global economic development, underlining the latest challenges facing the growth of the industry and defining the competitiveness and opportunities inherent in Islamic finance as a potential alternative for the conventional financial system.

Qatar may list bonds, sukuk this year

admin — Wed, 25 Apr 2012 08:08:58 +0000

Qatar is searching to deepen its debt market. Regarding this aspect, it may list local-currency government bonds and sukuk on the country's bourse this year.
Qatar began to sell treasury bills in May to achieve excess funds in the banking sector and set benchmark rates for companies to issue local-currency debt.
Moreover, the country could spend close to $100 billion (Dh367 billion) in "the medium-term" on projects, involving the completion of a port and airport, a metro system and roads.

JCorp sukuk may yield less than AAA issuers

admin — Wed, 25 Apr 2012 08:04:38 +0000

According to MCIS Zurich Insurance Bhd and Bangkok Bank Bhd, Johor Corp will apparently pay less than AAA issuers to sell US$976 million of sukuk on local-government guarantees.
They say that Johor Corp could price the 10-year Islamic notes to yield 30 basis points more than non-Islamic sovereign bonds.

Investment of $100 million for MENA region

admin — Wed, 25 Apr 2012 07:55:24 +0000

The IFC and the Islamic Development Bank (IDB) will support the construction of major infrastructure projects across the Middle East and North Africa through an investment of up to $100 million.
The investment is an attempt to stimulate economic growth in the MENA region.
According to the IFC, countries in the Middle East and North Africa must invest aproximatly $70 billion annually in infrastructure to keep up their growth rates.

Islamic finance – the social paradigm

admin — Wed, 25 Apr 2012 07:40:50 +0000

The first home purchase plan approved by the Financial Services Authority (FSA) for the mainstream UK market is the genie out of a modern day bottle. It shows that the religious principles underlying Islamic products are important in the ethical and social finance marketplace and that Islamic principles can stimulate and improve the finance products being expanded to meet these challenging times in the residential domestic market.
Natalie Elphicke, head of structured housing finance, partner, international law firm Stephenson Harwood, states that the following characteristics apply equally to an approved Islamic home finance plan as they do to a new conventional purchase plan designed for a housing association in the north east of England: risk sharing, not profiting unjustly or unfairly, not charging excessive charges.

Islamic finance accounting changes proposed

admin — Mon, 23 Apr 2012 08:06:50 +0000

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has suggested more specific accounting standards for real estate while increasing disclosure for Islamic banks’ investment accounts.
The move made by the Bahrain-based AAOIFI submits it is responding to the same kind of pressure to tighten standards that has been noticed in the conventional finance industry since the global financial crisis discharged in 2008.
Both suggestions were discussed at a public hearing for industry participants in Manama and there will be another hearing in Doha on April 12.

Delcredere Länderblickpunkt Argentinien: Staatsinterventionismus bedroht Investitionsklima im Land

admin — Tue, 17 Apr 2012 12:00:29 +0000

- Nach der Enteignung des Ölkonzerns YPF: Rohstoffsektor unter Druck

- Wirtschaftswachstum wird sich abschwächen

Staatliche Eingriffe: Argentiniens Status als Netto-Ölexporteur bedroht Nach der geplanten Verstaatlichung des größten argentinischen Ölkonzerns YPF (Yacimientos Petrolíferos Fiscales) durch die Regierung Kirchner geraten der Energie- und der Bergbausektor in Argentinien zunehmend unter Druck.

Im Zuge ihrer protektionistischen Wirtschaftspolitik mit dem Ziel, den Überschuss in der Leistungsbilanz wieder herzustellen, hat die Regierung jüngst zahlreiche Kapitalverkehrskontrollmaßnahmen vorgenommen. Diese verlangen von den Öl- und Bergbaugesellschaften unter anderem, dass sie ihre Exporterlöse in Argentinien belassen.

Zusätzlich verlangt der Staat, dass die Ölunternehmen stärker investieren, da der Ölverbrauch in den letzten Jahren stark gestiegen ist, während die Ölproduktion sinkt. Aufgrund des ungünstigen Geschäftsumfelds und der seit einem Jahrzehnt eingefrorenen Energiepreise konnten viele Ölkonzerne jedoch keine weiteren Investitionen tätigen.

Neben der Verstaatlichung von YPF hat die argentinische Regierung daher einzelne Betriebsgenehmigungen entzogen, unter anderem von Petrobras, Argenta Argentina SA und Tecpetrol SA. “Dieser staatliche Interventionismus stellt eine massive Gefahr für das Investitionsklima im Land dar”, sagt Christoph Witte, Deutschland-Direktor des Kreditversicherers Delcredere.

“Energievorkommen und Bodenschätze sind elementare Standbeine der argentinischen Wirtschaft. Die zunehmenden staatlichen Eingriffe führen dazu, dass Argentiniens Status als Netto-Ölexporteur bedroht ist”, so Witte. Das wirtschaftliche Risiko für Geschäfte mit Argentinien stuft der Kreditversicherer daher als hoch ein (Länderklasse C).

Das kurzfristige politische Risiko bewertet Delcredere aktuell als mäßig hoch (Länderklasse 4), der Ausblick ist negativ.

Ende der expansiven Geldpolitik erforderlich

2011 konnte die argentinische Wirtschaft noch ein kräftiges Wirtschaftswachstum von 6,5 Prozent verzeichnen. Gründe hierfür waren unter anderem hohe Rohstoffpreise und eine solide Nachfrage aus Brasilien. Stimuliert wurde dieses Wachstum aber auch durch eine kräftige Inlandsnachfrage, die wiederum durch eine expansive Haushalts- und Geldpolitik mit Preissubventionen in der Versorgungswirtschaft und einer lockeren Kreditvergabe begünstigt wurde. Im laufenden Jahr wird das Wachstum jedoch weitaus geringer ausfallen.

“Aktuell leidet etwa der für die argentinische Wirtschaft so wichtige Agrarsektor unter einer Dürreperiode. Auch die externen Faktoren Auslandsnachfrage und Agrar- und Rohstoffpreise sind weniger günstig als 2011. Wir erwarten daher ein Wirtschaftswachstum von rund 3,5 Prozent für 2012″, so Christoph Witte. Hinzu kommt, dass die expansive Fiskalpolitik nicht endlos fortgesetzt werden kann, zumal sie auch finanziert werden muss.

Keine einfache Aufgabe: Der Regierung Kirchner ist der Zugang zu internationalen Kapitalmärkten versperrt, da das Land noch offene Zahlungsverpflichtungen gegenüber dem Pariser Club und einigen privaten Gläubigern hat. Wegen zunehmender Abflüsse von privatem Kapital machen sich immer häufiger Finanzierungsengpässe bemerkbar. Die Folge: ein Leistungsbilanzdefizit für 2012, eine sich fortsetzende Kapitalflucht und ein Rückgang der Währungsreserven.

Über Delcredere NV:

Der belgische Kreditversicherer Delcredere NV wurde 2004 als eigenständiges Tochterunternehmen des staatlichen Kreditversicherers ONDD gegründet. Delcredere NV schützt seine Kunden vor Risiken, die bei nationalen und internationalen Geschäften entstehen und erleichert die Finanzierung dieser Geschäfte.

Delcredere NV versichert und rückversichert die kurzfristigen politischen und wirtschaftlichen Risiken gängiger Handelsgeschäfte. Eine Kernkompetenz von Delcredere NV ist die Absicherung von Risiken in Schwellen- und Entwicklungsländern. Zu den Kunden im europäischen Wirtschaftsraum zählen große und mittelständische Unternehmen.

Delcredere NV ist an Standorten in Deutschland, Belgien, Großbritannien und Frankreich sowie mit einer Tochtergesellschaft in Tschechien vertreten und bietet seine Dienstleistungen europaweit an. Das versicherte Volumen betrug im Jahr 2010 15 Mrd. Euro, die Limitausnutzung betrug 6,8 Mrd. Euro. Der Umsatz lag bei 87 Mio. Euro. Das Eigenkapital lag Ende Dezember 2010 bei 141 Mio. Euro.

- Delcredere NV Christoph Witte-

Islamic finance makes its mark in banking

admin — Fri, 13 Apr 2012 07:39:55 +0000

Dr Ali Mohiyuddin Al Quradaghi, chairman, Shariah Supervisory Board of Al Hilal Islamic Banking Services, ahlibank Oman, and the Secretary-General of the International Union of Muslim Scholars , stated that Islamic finance industry is making mark in the world, leaving the opportunity for people to put in use the true tenets of Islam to their present-day economic needs.
Shaikh Ahmed bin Saud Al Siyabi, the Secretary-General of the ifta’a office, noted that Islamic finance should be made a part of one’s life because it is founded on Islamic Shariah.

Specialist proposes fatwa bypass on Islamic products

admin — Wed, 04 Apr 2012 18:54:17 +0000

Trevor Norman, director of Jersey-based fiduciary specialist Volaw Trust and Corporate Services, noted that UK investors and their advisers should be given permission to research products themselves instead of having to obtain a fatwa, or judgement, from a Sharia board.
Mahmood Faruqui, senior adviser for the Bank of London and the Middle East and former vice-chairman of the Institute of Islamic Banking and Insurance, added that another problem with the current system was the lack of transparency from the Sharia board in providing its judgements.

Goldman advisor says completed work on sukuk

admin — Wed, 04 Apr 2012 18:40:51 +0000

Dar Al Istithmar finished receiving the approval of Islamic scholars for the issue and the next move is depending from now on on Goldman.
Goldman's plan was to become one of the first top Western banks to gather money through Islamic bonds, but it attracted controversy in the industry, and the bank has not so far continued with the plan.
Some analysts have implied that Goldman might use the proceeds of the sukuk to lend money to clients for interest, which would not comply with Islamic law, and that the issue might not trade at par value on the Irish exchange, which would also contravene sharia law.

Arcapita Bank Wins Permission to Manage Cash, Pay Wages

admin — Wed, 04 Apr 2012 18:33:56 +0000

Arcapita Bank BSC was given permission to use cash within a budget and pay employees in bankruptcy.
U.S. Bankruptcy Judge Sean Lane in Manhattan certified Arcapita’s requests on an interim basis to escape “irreparable harm” being done to the company.
Arcapita was forced to search bankruptcy after hedge funds, including Euroville, derailed restructuring talks on its $1.1 billion loan due in March.

National Australia Bank mulls Sukuk sale

admin — Wed, 04 Apr 2012 18:27:50 +0000

It seems that National Australia Bank (NAB) is taking into consideration a sale of up to $500 million of Sukuk as Australian investors request less risky investments.
According to two people familiar with the deal, the bank is considering the sale, which would make it the first institution to issue Sukuk in Australia.
Crescent Wealth thinks that the investable universe for Islamic funds in Australia is worth between $4 billion and $8 billion, with potential to grow to between $7 billion and $13 billion by 2019.

TCW Lands an International Partnership

admin — Wed, 04 Apr 2012 18:21:17 +0000

TCW will oversee NCB Capitals international equity funds and expand distribution of NCB products and services internationally.
TCW was selected from a field of other contending US asset managers for its leadership in US markets.
TCW will operate three funds for NCB; US, Small Cap and Healthcare equities. These funds will be available only to Saudi investors at this point, but the distribution will eventually develop internationally.

Expat family lands up in vicious debt trap

admin — Wed, 04 Apr 2012 18:09:21 +0000

Indian expat KM is a typical example of a dream gone very wrong.
Initially, their dream was safe. Her husband earned enough and even bought a property in Goa, after borrowing from a local bank and an Indian bank.
But once the recession hit, their lives changed in a horrible way. Her husband’s company shut down, he became unemployed and was forced to max out his credit cards to make ends meet.
Moreover, the local bank filed a case against the husband over non-payment of the monthly installments, which had stopped after he lost his job.

Natural Capital Declaration a statement by the financial sector demonstrating itscommitment at the Rio+20 Earth Summit

admin — Wed, 04 Apr 2012 12:11:48 +0000

Who will be the first Islamic financial institution to become signatory of the Natural Capital Declaration? "The Natural Capital Declaration is a statement by the financial sector demonstrating our commitment at the Rio+20 Earth Summit to work towards integrating Natural Capital criteria into our financial products and services for the 21st century.

Through it we wish to acknowledge and re-affirm the importance of Natural Capital in maintaining a sustainable global economy, and call upon the private and public sectors to work together to create the conditions necessary to maintain and enhance Natural Capital as a critical economic, ecological and social asset.

Natural Capital comprises Earth's natural assets (soil, air, water, flora and fauna), and the ecosystem services resulting from them, which make human life possible. Neither these services, nor the stock of Natural Capital that provides them, are adequately valued compared to social and financial capital. Despite being fundamental to our wellbeing, their daily use remains almost undetected within our economic system. Using Natural Capital this way is not sustainable.

DIB repays $750m sukuk from own resources

admin — Wed, 04 Apr 2012 07:24:25 +0000

Dubai Islamic Bank (DIB) has repaid in full a $750 million (Dh2.75 billion) five-year sukuk which matured on March 22 from its own sources, prooving the bank’s financial strength and comfortable liquidity position.
The sukuk was launched in 2007, through a special purpose vehicle, DIB Sukuk Company Limited, located in the Cayman Islands, being the first sukuk to be listed on both the Dubai International Financial Exchange (DIFX) and the London Stock Exchange.

Dar Al Arkan Confident Can Repay $1 Billion Sukuk, Arabian Says

admin — Fri, 30 Mar 2012 12:18:12 +0000

Dar Al Arkan Real Estate Development Co. (ALARKAN) is certain that it will be able to repay a $1 billion Islamic bond maturing in July.
Saudi Arabia’s largest property developer has been developing cash reserves to repay the bond and can use assets and land as collateral to secure funding in the case of a shortfall.

Islamic Development Bank insured deals worth $3bn in 2011

admin — Fri, 30 Mar 2012 12:14:35 +0000

The export credit and investment insurance arm of the Islamic Development Bank (IDB) has secured more than $3bn (Dhs11.02bn) of business deals in 2011. The value of deals insured bounced 63% from 2010.
The flow was ascribed to the launch by ICIEC of new insurance products for political risk.

New standards for UNPRI

admin — Thu, 29 Mar 2012 08:04:47 +0000

Among the 1000 UN responsible investment signatories that will face new mandatory requirements next year are Colonial First State Global Asset Management, Local Government Super Scheme, Telstra Super, AMP Capital and TWUSUPER.
Dr James Gifford, who helped create the UN backed Principles for Responsible Investment, stated that the PRI will present next year mandatory transparency for responsible investment for all 1,000+.

Standard Chartered and Noor Islamic Bank arrange USD 175 million for Stanford Marine Group

admin — Thu, 29 Mar 2012 08:01:19 +0000

Standard Chartered Bank and Noor Islamic Bank operated jointly as Initial Mandate Lead Arrangers and Structuring Banks for a five years USD 175Mn Senior Secured Club Facility for Stanford Marine Group. The proceeds of the term loan have partly been utilized to refinance existing debt. Standard Chartered Bank was Facility Agent, Investment Agent, and Hedging Bank. The facility offers growth capital to acquire second hand and/or build offshore supply vessels.
The deal conatins dual currency tranches (AED and USD) and Conventional and Islamic Murabaha tranches.

Annual General Meeting of Al Baraka Banking Group Approves Cash Dividend Payouts and Bonus Shares to Shareholders of US$ 175.36

admin — Thu, 29 Mar 2012 07:53:24 +0000

The Ordinary and Extra-ordinary General Meetings of Al Baraka Banking Group took place on Wednesday 21st March 2012 in Manama, the capital of Bahrain. Discussions included: the report submitted by the Board of Directors on the Group's activities during the financial year ended 31 December, 2011, auditors report on the financial statements for the year ended 31 December 2011 and the report of the Unified Sharia Supervisory Board on financial year ended 31 December 2011.
Sheikh Saleh Abdullah Kamel, Chairman of the banking group stated reffering to the results that the outstanding financial results reached byt the bank in 2011 were the result of the implementation of cautiously studied ambitious strategies that made a balance between the adoption of prudent and conservative measures required.

IILM Plans First Islamic Dollar Bill Sale of Up to $1 Billion

admin — Thu, 29 Mar 2012 07:46:35 +0000

It appears that International Islamic Liquidity Management Corp. plans to sell $1 billion of the first global Shariah-compliant dollar bills by the middle of the year.
The Kuala Lumpur-based Islamic Financial Services Board forsees a growth from $1 trillion industry to $2.8 trillion by 2015.
It seems that the growth in Malaysia’s Islamic banking deposits has passed non-Shariah-compliant counterparts by almost three times, increasing an average 17.6 % over the past 10 years, compared with 7.1%.

Bloomberg Brief Launches Islamic Finance Weekly

admin — Thu, 29 Mar 2012 07:39:15 +0000

Bloomberg Brief revealed the launch of its Islamic Finance weekly newsletter, which offers global investors and financial advisors critical data and analytics to remain ahead of the developments and trends in the world of Shariah-compliant finance.
The Islamic Finance newsletter analyzes Shariah-compliant bond and loan offerings in the pipeline, accumulates underwriter rankings and examines the issuance of new sukuk assets, sales of which have reached $6.6 billion in 2012, up over 300% on the prior year according to data compiled by Bloomberg.

BLME completes first Islamic banking deal in the renewable energy space in the UK

admin — Thu, 29 Mar 2012 07:35:23 +0000

Bank of London and The Middle East plc (BLME) signed a £14 million leasing deal with Global Marine Systems Ltd.
According to the agreement, BLME will support Global Marine in the acquisition and refit of an offshore power cable installation barge. The barge will be uniquely suited for the installation of a full range of subsea power cables. The increased request for this type of cable installation barge is directly connected to the growth of offshore electricity transmission being constructed to link the off-shore wind farms now being built throughout the North Sea and surrounding waters.

Indonesia Islamic Insurance Assets Reach $1 Billion in 2011

admin — Thu, 29 Mar 2012 07:28:17 +0000

The data from Capital Market and Financial Supervisory Agency shows that Indonesia’s Shariah-compliant insurance assets increased by 32 percent to 9.2 trillion rupiah ($1 billion) in 2011 comparing to the year before.
The agency stated that takaful has grown by 50 percent on average in the last five year.
Moreover, it seems that Mayban Ageas and Syarikat Takaful Malaysia Bhd. plan to develop in Indonesia to take advantage of the growth rate.

Oman-based Bank Nizwa to install Path Solutions’ iMAL

admin — Thu, 29 Mar 2012 07:23:00 +0000

Bank Nizwa chose Path Solutions’ iMAL for its entire Islamic core banking solutions needs. The agreement was signed in Muscat between the Chairman of the Founding Committee of Bank Nizwa, Ahmed Saif Al Rawahi, and Path Solutions’ Group Chairman & CEO, Mohammed Kateeb. Witnesses at the ceremony were representatives of the founders of the Bank.
According to the agreement, Path Solutions will install at Bank Nizwa the state-of-the-art core banking system, iMAL which is an integrated, scalable and Sharia-compliant banking solution that helps financial institutions offer competitive Islamic products and unparalleled service to customers.

VC Legal Guide to Catalyse MENA VC Deals

admin — Thu, 29 Mar 2012 07:18:11 +0000

The MENA Private Equity Association has launched a VC legal documentation guide constructed to give entrepreneurs a practical understanding of the basic terms involved in a venture capital transaction.
The guide has the target on issues specific to the Middle East and North Africa, and also contains a standard term-sheet template format. Templates reduce transaction costs and time, whilst advertising fair legal norms throughout the industry.

IIFM and ISDA Launch Mubadalatul Arbaah (MA) Profit Rate Swap (PRS) Product Standard

admin — Tue, 27 Mar 2012 14:46:20 +0000

The International Islamic Financial Market (IIFM) and the International Swaps and Derivatives Association, Inc. (ISDA) are pleased to announce the launch of the ISDA/IIFM Mubadalatul Arbaah (Profit Rate Swap) product standard to be used for Islamic hedging purposes.

The Mubadalatul Arbaah (MA) standard follows on from the “ISDA/IIFM Tahawwut (Hedging) Master Agreement” and provides the industry with a framework for Islamic risk mitigation. The launch of the Tahawwut Master Agreement as the template for Shari’ah-compliant risk management was officially announced at a press conference hosted by Central Bank of Bahrain in March 2010.

Masraf Al Rayan, Qatar Red Crescent sign agreement for launch of charity card

admin — Tue, 27 Mar 2012 10:41:15 +0000

Masraf Al Rayan signed a partnership agreement with Qatar Red Crescent Society [QRCS] to launch its charity card to help people benefit from the services of QRCS. The card can be used only for Qatar Red Crescent activities.
Mr Adel Mustafawi, Group CEO of MAR, and Saleh Ali Al Mohannadi, Qatar Red Crescent Executive Director signed the agreement at the MAR Headquarters.
The agreement implies that MAR will launch the charity cards, which are convenient and easy to use within and beyond the State of Qatar.