Luxembourg eyes more investment from UAE

Luxembourg has so far attracted around euro 500 million (Dh2.485 billion) from UAE investors in its various investment funds and is eyeing more, Luxembourg's Minister of Finance Luc Frieden said yesterday.

"We don't have a specific target [for investments from the UAE], but, there is a lot going on in our  financial services sector. There are about 7,000 investment funds and 150 banks in Luxembourg," Frieden old reporters here."We also have a treaty with the UAE to avoid double taxation," he added.

Frieden said Luxembourg plans to open an embassy in Abu Dhabi later this year which would help facilitate  regional investments in Luxembourg. Frieden said they are also eyeing investments in Luxembourg from other countries of the Gulf Cooperation Council (GCC).Lower returns Frieden said through the investment funds, the invested money goes into the entire European Union.

"The stability of the Eurozone is guaranteed and we have bank confidentiality rules," he added.Asked about the relatively lower returns on investments in Luxembourg compared to some of the emerging markets, Frieden said lower yields are a reflection of stability.

"Luxembourg is an international financial services centre. It is the world leader in investment funds  which are legal products and they channel international investments through Luxembourg into Europe," he added.

According to KPMG, Luxembourg is currently Eur-ope's number one investment fund centre and the second  worldwide behind the US. In July 2010, net assets managed by Luxembourg's investment funds were valued at 2.019 billion euros. Additionally, Luxembourg is emerging as a prime location for Islamic finance. There are currently around 16 sukuk listed on the Luxembourg Stock Exchange.

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Article from Global Islamic Finance Magazine

ADCB Opens Its Doors At New Sheikh Zayed Road Branch

Abu Dhabi Commercial Bank has announced the opening of its newest Bank branch on Sheikh Zayed Road, bringing the total number of branches across the UAE to 47. H.E. Eissa Al Suwaidi, the Chairman of ADCB formally opened the new branch at prestigious ceremony attended by ADCB Board Members, Ala'a Eraiqat, Chief Executive Officer, Executive Management Members, VIP customers and employees.

The new branch cements ADCB's commitment to service excellence, mirrored in all its branches across the UAE, with customers benefiting from innovative, efficient, fast and easy to use products and services. The branch  will service all customers, from retail and wealth management to commercial and small and medium enterprises (SMEs).

The latest addition to ADCB's branch network will also host a specific desk for ADCP customers as well as  two ATMs providing deposit facilities for both ADCB and former RBS customers.

Commenting on the branch opening, Ali Darwish, Head of Branch Network of ADCB, said "ADCB continues to  evaluate its customer's needs and the opening of the Sheikh Zayed Road branch is testament to this. Our  commitment to providing customers with innovative products and services in high traffic locations continues with the opening of this strategically located branch."

"We recognize that the UAE is a global hub for individuals and businesses alike, with diverse banking  needs. We believe the new Sheikh Zayed Road branch allows our customers to bank without restriction, offering them access to our services and products at any time of day or night."

The new branches which are to be opened up by ADCB will help to further facilitate Islamic banking and further develop services the for the increasingly popular sector. 

Source

Article from Global Islamic Finance Magazine

Islamic finance Industry 'Crucial Growth Engine'

Islamic finance has significantly surpassed its niche industry status to become an established component of  the financial system.

The fact that over recent years Islamic financial institutions have grown at a faster pace than their conventional peers confirms the increasing demand for Sharia-compliant financial products and services.

With the unprecedented growth of major economies in the Middle East, the region is increasingly becoming a  more competitive and sophisticated market and the key players are targeting a greater share of the exciting  growth potential for Islamic finance, according to David McLean, chief executive of Mega Events, organiser  of 1st Annual Middle East Islamic Finance & Investment Conference (MEIFIC 2011).

The event, to be held on April 12 and 13 at Dusit Thani Dubai, will set the stage for key players in the  region to successfully adapt to new market realities in the Middle East, 

"The exclusive opening keynote session at MEIFIC 2011 will examine the current state of and the future n prospects for Islamic finance in the region and the next wave of growth opportunities for Middle East players," he said.

"The session will also share critical insights on how the leading market players are re-tuning their  businesses to succeed in the Middle East Islamic finance market." he said.

Key players in the Middle East Islamic finance and investments industry will be gathering at MEIFIC 2011 to  explore the growth potential that the Islamic finance and investment market in the Middle East offers.

The conference will feature groundbreaking debates as the region taps into the next growth phase in the  post-crisis landscape.

Source

Article from Global Islamic Finance Magazine

Brand Ambassador, Kareem Saeid and Zeeshan!

We are glad to announce that three of our Brand Ambassadors, Kareem, Saeid, and Zeeshan have joined this Islamic Finance & Banking Savvier blog as co-authors. We are here to share our opinion or what we know about Islamic finance, banking and ecomonic.

Hope this blog will get bigger and bigger so more people will know about Islamic finance and banking!

Islamic Finance Proves Viability Worldwide

The Islamic principles of finance have proved their viability worldwide as the Islamic banking and finance  is growing at a rapid pace globally, Federal Minister for Finance and Economic Affairs, Abdul Hafeez Shaikh said Tuesday.

“In the wake of recent global financial crisis and debt problem of the third world countries and the Euro  Zone, the Islamic banking and finance has established itself and is growing at rapid pace,” he said at the inaugural session of two day International Conference on Islamic Business and Finance.

He said the size of Islamic banking was expected to reach $1.3 trillion worldwide in near future and at  present more than 1,100 institutions were offering Islamic finance service across the globe. The size of  investments in Islamic banking system reached Rs 424 billion till 2010 in the country and government was  taking measures to encourage Islamic banking and finance.

He said this system was very productive for the agriculture field, which could take benefit of it, however urged the banks to extend their role and reach the farming community.

He said the Islamic banks, coupled with a number of dedicated Islamic academic, legal, regulatory and  supervisory institutions could provide a solid platform for future growth and development of the Islamic  finance industry.

He called up the Islamic banking institutions to enhance awareness about Islamic banking products and  develop human resource by facilitating and arranging training workshops, short-term courses and particularlyoffering post graduate academic institutions.

Vice Chancellor, Riphah International University, Dr Anis Ahmed said the purpose of the conference was not  only to discuss the present state of national and international economies but also to reflect our faith and belief.

Senator, Prof. Khursheed Ahmed said adoption of Islamic way of banking was the need of the hour and the  Islamic banking and finance represents a change of paradigm. He said new approach was needed to change the fundamentals of finance to evolve a new financial and economic system and urged upon the participants of the conference to revisit the fundamentals and realise the importance of Islamic banking and finance.

The conference has been organised by Riphah Centre of Islamic Business a constituent institute of Riphah  International University.

Source

Article from Global Islamic Finance Magazine

Japan's Mitsui says eyes stake in Malaysian Islamic insurer

Mitsui Sumitomo Insurance, a unit of Japan's largest property-casualty insurance firm MS&AD , said on  Wednesday it may buy a stake in Malaysia's Hong Leong Tokio Marine Takaful to tap growing demand for  Islamic insurance.

The move comes as its Japanese rival Tokio Marine & Nichido said it is considering selling its 35 percent stake in the Islamic insurer to Hong Leong to end its partnership over strategic differences. Tokio Marine & Nichido is a unit of Tokio Marine Holdings .

Mitsui is keen to buy that stake, which would build up its presence in Malaysia after its insurance alliance with Hong Leong Financial Group worth $480 million last year, a company spokesman said.The deal could be  worth about 1-3 billion yen ($37 million), a source with direct knowledge of the deal said.HLA Holdings Sdn Bhd, which is part of Hong Leong Financial Group, owns the remaining 65 percent of Hong Leong Tokio Marine Takaful, according to the Islamic insurer's website.

Tokio Marine is expected to sell its stake in Hong Leong Tokio Marine to the Malaysian shareholder which  would then sell it on to Mitsui Sumitomo, both pending regulatory approval, a source said.

Japan's Nikkei newspaper had earlier reported that Tokio Marine was planning to exit its partnership in  Hong Leong Tokio Marine due to differences in business strategy. While Tokio Marine wants to sell a broad  lineup of life and non-life insurance, Hong Leong is keen to focus on savings-type policies, the paper said.

Mitsui Sumitomo has been looking to expand its overseas operations by forging tie-ups with peers in  emerging markets as Japan's non-life insurance market shrinks.

Mitsui Sumitomo Insurance managing executive officer Masaaki Nishikata told Reuters in September that  MS&AD Insurance was in talks to buy into several life insurers in Asia as it aims to tap the region'sgrowing economies.

A unit of Tokio Marine halted talks with Malaysia's PacificMas to buy medical insurance provider Pacific Insurance Bhd last July.

The market for Islamic insurance, or takaful, is expected to grow in tandem with rising demand for ethical investments. Total takaful contributions could reach $7.7 billion a year by 2012, Ernst & Young has  forecast. But global takaful contributions are less than 1 percent of the total insurance premium spend  annually, industry lawyers Clyde & Co have said.

Source

Article from Global Islamic Finance Magazine

Brand Ambassadors, Dian and عبد من عباد الله

We are glad to annouce that two of our Brand Ambasadors, Dian and عبد من عباد الله, have joined this Islamic Finance & Banking Savvier as co-authors. We are here to share some our opinion or what we know about Islamic finance, banking and ecomonic.

Hope this blog will get bigger and bigger so more people will know about Islamic finance and banking!