Latest News - Thursday, 7 May 2015
This Week’s Newsletter
Daily Cover Story - Islamic funds industry to gain from ASEA...
GLOBAL: IFN previously discussed the potential seismic change the implementation of the ASEAN CIS Framework – a fund passporting scheme similar to Europe’s UCITS platform – could bring to the Islamic funds industry (See IFN Report: ‘ASEAN CIS: A much-needed impetus for regional Islamic cross-border...
Daily Cover Story - Kuveyt Turk diversifies funding base; br...
GLOBAL: Following its benchmark international Sukuk offering last year, and two other US dollar Islamic issuance in 2011 and 2010 respectively, Kuveyt Turk Katilim Bankasi – a subsidiary of Kuwait Finance House (KFH) – has once again tapped the Islamic capital markets but this time in Malaysia....
The knotty problem of Islamic pension provision is nothing new, and the slow growth of its ability to meet growing demand — whether through...
Editor's Note
One of the central tenets of the Shariah is to acquire, spend and preserve wealth in a responsible manner. Retirement...
Wednesday, 06 May 2015
Volume 12 Issue 18
E.g., 06/07/2015
E.g., 06/07/2015

Daily News Briefs

INDONESIA: Roosdiono & Partners (R&P), a member of ZICOlaw, and Anderson Mori & Tomotsune (AMT) have established a dedicated AMT Jakarta Desk in the office of R&P in Indonesia to assist AMT’s Japanese clients expanding into the country, according to a press...


GLOBAL: Bahrain-based Gulf Finance House (GFH) has acquired Events Mall, located in Jeddah, Saudi Arabia. The Islamic investment bank in a bourse filing announced that the mall is valued at SAR180 million (US$47.97 million) and that the deal is expected to realize an average...


SAUDI ARABIA: The Capital Market Authority (CMA) of Saudi Arabia on the 4th May adopted the Rules for Qualified Foreign Financial Institutions Investment in Listed Shares (the QFI Rules). According to a bourse filing, the rules were adopted following a 90-day review of its draft...


SAUDI ARABIA: Tadawul announced on its website that it began the first subscription period and tradable rights trading for Saudi United Cooperative Insurance Company (Walaa Insurance) yesterday. The subscription period is scheduled to end tomorrow on the 14th May 2015.


MALAYSIA: RAM has reaffirmed the ‘AAA/Stable/P1’ claims-paying ability ratings of Etiqa Takaful (ETB). The agency concurrently reaffirmed the ‘AA1/Stable’ rating of the company’s RM300 million (US$83.25 million) subordinated Sukuk Musharakah. According to a statement by the...


GLOBAL: The Asian Development Bank (ADB) and the IFSB have launched a joint publication entitled “Islamic Finance for Asia: Development, Prospects, and Inclusive Growth”. In a statement to IFN, the IFSB said that the publication aims to increase awareness on Islamic finance...


IN THIS WEEK’S ISSUE

Case Study

The Government of Malaysia (GOM) successfully priced a US$1.5 billion dual-tranche Sukuk on the 22nd April 2015. The 10 and 30-year certificates achieved a pricing of 20bps and 15bps over treasuries, respectively. Speaking to Mohamed Rafe...

IFN Country Analysis

With no proper regulations and only one dedicated Shariah bank, Bosnia-Herzegovina struggles to bring its Islamic banking and finance industry to the next level. VINEETA TAN casts an eye over the country’s fledgling Islamic finance space...

Weekly Poll

As the year progresses, one cannot help but ask how the industry is really doing. In order to gain a stronger foothold in our niche setting, some jurisdictions have been rumored to explore options such as eliminating Islamic windows,...

IFN Sector Analysis

In an era that is relentlessly moving forward, keeping up with the evolution of technology plays a crucial role in the advancement of any industry. The Islamic equity market needs to bring itself to par with its conventional counterpart to...
 

IFN Reports

In the past week, markets have witnessed new developments pertaining to Indonesia’s sovereign Sukuk plans as well as Egypt’s debut issuance. As usual, NABILAH ANNUAR keeps abreast of the latest developments in the sovereign Sukuk...

VINEETA TAN brings you a sneak peek into Pakistan’s newly proposed Modaraba regulations. Following a slew of new Shariah finance-related rules issued by the Securities and Exchange Commission of Pakistan (SECP) as it seeks to...

When the UK followed through with its promise of delivering a sovereign Sukuk issuance, London effectively secured a name for itself within the Shariah compliant financial community as a serious and formidable contender giving...

Revealing to IFN earlier this year of potential Shariah compliant aviation deals with regional carriers in Africa and the GCC, it has been confirmed that Bahraini Islamic financier Ibdar Bank has concluded an aircraft leasing...

This week, IFN shines the spotlight on one of UAE’s pioneering independent finance company, Finance House. VINEETA TAN explores the firm’s promising Islamic finance business. Established in 2004, Finance House offers a diverse...

Following its benchmark international Sukuk offering last year, and two other US dollar Islamic issuance in 2011 and 2010 respectively, Kuveyt Turk Katilim Bankasi — a subsidiary of Kuwait Finance House (KFH) — has once again...

The global primary Sukuk market may have been on an upward trajectory in terms of new issuances in the first quarter of 2015, however, Malaysia seems to buck the trend with a slowdown in sovereign Islamic offerings. VINEETA TAN...

The Islamic reinsurance sector is a segment that has often been overlooked by the Shariah compliant industry. On the basis of the principle of Darurah, Takaful products are largely reinsurance by conventional reinsurance...

The Indonesian religious affairs ministry is estimated to hold over US$5 billion in Hajj funds from pilgrims hoping to join the 12-year waiting list to make their journey. Yet currently, this money is spread over the banking...

What’s been going on in the world this week? LAUREN MCAUGHTRY brings you an update of the most significant economic, regional and global events, issues and trends that have the potential to affect the Islamic finance industry...

Features

While a significant amount of the non-performing loans (NPLs) in the country are being held by commercial banks, especially state-owned banks, specialized and private commercial banks, the banks pursuing Islamic banking are...

The stock market in Pakistan has offered investors returns of 300% over the past four years in dollar terms. The story has taken a different twist, however, in 2015. The market reached a peak of 34,826.51 points in February and...

The continuing rise of the Islamic banking sector is well documented, enough has been said and countless words are available to be read every day by the very best in the field, whether they are bankers, journalists or industry...

Islamic banking and finance will get a boost from the anticipated passage of the Bangsamoro Basic Law, which will be the legislative charter of the autonomous region in southern Philippines resulting from the agreement between...

The Islamic hedging segment of the Islamic financial services industry is a requirement-based activity and as the industry is growing so is the need to mitigate risk, mainly in the area of rate of return mismatch or currency risk...

IFN Sector Correspondents

China’s ‘One belt one road’ initiative, which refers to the 21st Century Maritime Silk Road, was viewed with keen interest by experts at the Asian Summit, hosted in Malaysia in April 2015. The initiative seems to be a catalyst...

Turkey Islamic lender receives a license from the Central Bank of Bahrain The Central Bank of Bahrain has granted a license to Turkish Islamic lender Turkey Finans to open a branch in Bahrain, the bank said in a written...

A first of its kind summit, entitled the ‘Ethical Investment and Entrepreneurship Summit’ was organized in Singapore in mid-April by Bizmedia Publishing and Amanah Asset Management, attracting almost a 100 participants. The...

A Kuwaiti investor visiting our offices last week used a phrase I hadn’t heard before, that “Capital is a coward”. Asking him to explain, he elaborated that in Kuwait at the moment it feels like there are “wars all around” and...

The Shariah concept of Salam was among the six nominated forms of Islamic finance sanctioned for use by Islamic banks under the purview of the Central Bank of Oman in its 2012 Framework document (each of which were set in stone...

Shariah Pronouncement

Query:  An Islamic bank has raised the following query. Sometimes the Islamic bank receives requests from some of its customers to include in Murabahah financing some components other than the cost of the goods, such...

Query:  Shariah guidance is sought if the Islamic bank is allowed to charge a fee in case of issuance of a letter of credit (LC), whether the goods under the LC are to be financed by the Islamic bank or the customer...

Query:  As part of banking services, an Islamic bank offers issuance of various types of letters of guarantee against a fee. Such letters of guarantee are issued based on a request from the bank’s customer. The letter...

Query:  An Islamic bank has in its array of retail products, auto financing for its individual customers. The product is based on the Murabahah structure whereby the bank, based on the ‘promise to purchase’ from its...

Query:  An Islamic bank has planned to launch a draw scheme for all of its current customers availing financing facilities from the bank. The subject matter of the draw will be 24-carat gold coins of a certain weight....

Special Reports

Just as good Islamic finance strives to make sure that Muslims get to partake in the American real estate market and stay true to the fair principles of Shariah law and away from usury and Riba, the Truth in Lending Act (TILA)...

India’s father of the nation, Mahatma Gandhi, famously said that there is enough on Earth for everybody’s need, but not enough for everybody’s greed. Taking forward the Gandhian principle of ‘empowerment’ and ‘sustainable growth...

Qatar’s economy grew by more than 6.7% in 2014 and, despite the fall in oil prices, it is expected to continue this growth trajectory for the next two to three years. The banking sector grew by more than 11% last year and growth...

Recently in India the Shariah-based SBI Mutual Fund which was scheduled to be launched in December 2014 was deferred with the motives noticeably seeming to be political, though the reason conveyed was that the Shariah fund will...

Getting laid off from one’s job has its advantages, provided one has sufficient funds to carry over until the next opportunity arises. Having time to reflect and reanalyze makes one feel a little like Gordon Gekko, re-emerging...