Malaysia has made unprecedented achievements in the Islamic finance sector and it currently dominates domestic Sukuk,with 72 per cent by value, Sudan leads short-term issuance (maturity one year or less)
Ijlal Ahmad Alvi, Chairman & CEO, IIFM Chairman and Chief Executive Officer of the International Islamic Financial Market (IIFM) Ijlal Ahmad Alvi said ,"The trend toward issuing shorter tenure Sukuk is slowly increasing and is again driven by sovereign issuers through central banks."
He was speaking at the launch of the second edition of the International Islamic Financial Market (IIFM) Sukuk Report in Labuan. Bahrain is the most active market within the Gulf Cooperation Council (GCC), regularly issuing short-term Sukuk Al Salam and Sukuk Al Ijarah. "It is the first government in the GCC to use Sukuk as one of the primary tools for raising finance," he said, adding, "Moreover, it is expected that Bahrain, Brunei, Sudan plus several new entrants, will contribute to the development of the short end of the market.”
Separately, Zawya’s Sukuk Quarterly Bulletin notes that global Sukuk issuance rose by 18 per cent in Q2 2011 on year-ago levels to $16 billion. Across H1 2011, some $43.8 billion was raised globally, setting a new record. Government issuance dominated in Q2 2011, totalling $11.651 billion. Malaysia was responsible for $12.676 million in Sukuk, all denominated in MYR. By structure, Murabaha was the most important, accounting for $7.56 billion, followed by Bai Bithaman Ajil ($2.49 billion) and Musharaka ($2.2 billion).
The top five Sukuk lead managers (excluding central banks) were: HSBC Bank Middle East (four issues worth a total of $904 million); Aminvestment Bank (24 issues, $789 million); Maybank (46 issues, $625 million); RHB Islamic Bank(six issues, $591 million); Standard Chartered Middle East & South Asia (nine issues, $402 million).
Monday 25 July 2011
Kuwait Finance House launches Ijarah Promotions
Kuwait Finance House (KFH) announced that it has launched competitive promotions to finance car purchase through leasing, since KFH is keen, through its Cars Department, to offer its clients best services and promotions that are convenient to various client segments seeking to purchase a car.
Acting Cars Department Manager Wael Al-Kharraz explained that the cars promotions offer unprecedented privileges, such as takaful insurance, providing the client with another car is leased car requires over 24 hours of repairing, and having the agent's warranty.
He added that KFH client takes advantage of paying a low monthly rent, because there is a final payment in order to own the leased car.
He revealed that all KFH's car showrooms have various cars that meet all requirements, but clients can also obtain a price quote for a new car from any car agents in Kuwait.
He stressed that KFH is making great strides in the field of car financing through Murabaha, which is reflected in its possession of a significant market share of this competitive sector.
He noted that such a success highlights KFH's strategy that is based on meeting clients growing needs, in addition to making premium Shariah compliant offers that suit all segments.
Moreover, Al-Kharraz stated that this kind of leasing service is highly demanded, since it offers them various financing solutions to their requirements.
Acting Cars Department Manager Wael Al-Kharraz explained that the cars promotions offer unprecedented privileges, such as takaful insurance, providing the client with another car is leased car requires over 24 hours of repairing, and having the agent's warranty.
He added that KFH client takes advantage of paying a low monthly rent, because there is a final payment in order to own the leased car.
He revealed that all KFH's car showrooms have various cars that meet all requirements, but clients can also obtain a price quote for a new car from any car agents in Kuwait.
He stressed that KFH is making great strides in the field of car financing through Murabaha, which is reflected in its possession of a significant market share of this competitive sector.
He noted that such a success highlights KFH's strategy that is based on meeting clients growing needs, in addition to making premium Shariah compliant offers that suit all segments.
Moreover, Al-Kharraz stated that this kind of leasing service is highly demanded, since it offers them various financing solutions to their requirements.
Shariah Compliant Finance Facility Signed By Tamkeen
It has been reported that the leading Middle Eastern company Tamkeen and Bahraini Saudi Bank sign a Shariah-compliant financing facility agreement to fund private sector projects.
A Shariah-compliant agreement was signed today between Tamkeen and the Bahraini Saudi Bank (BSB) by which the Bank will provide Shariah-compliant financing facilities aiming to fund, finance, and support private sector businesses.
The agreement was signed by Dr. Ahmed AbdulHameed Al-Shaikh, Tamkeen's VP for Enterprise and Human Capital Development and Dr. Anwar Khalifa Al-Sada, BSB's Chairman of BSB. BSB is a subsidiary of Al-Salam Bahrain Bank.
Dr. Ahmed Al-Shaikh made a statement pointing out that this project comes within the scope of Tamkeen's objectives to develop and support the national economy on the private sector front and make it the real stimulator of economy in the Kingdom. This is an unmatched opportunity to provide financing on concessional terms in full compliance with the Shariah laws and principles.
The initiative is inspired by Tamkeen's objectives to facilitate enterprise growth to develop businesses in collaboration with financing bodies of the Kingdom of Bahrain which already have Shariah-certified funding system.
Dr. Al-Sada also commented that providing support and funding to private sector enterprises has the effect of enabling those enterprises to increase their success factor and increase growth opportunities and sustainability.
He went on to further comment that the Bank is keen through this agreement to boost all initiatives supporting private businesses consequently leading to economic development and prosperity for the Kingdom of Bahrain.
A Shariah-compliant agreement was signed today between Tamkeen and the Bahraini Saudi Bank (BSB) by which the Bank will provide Shariah-compliant financing facilities aiming to fund, finance, and support private sector businesses.
The agreement was signed by Dr. Ahmed AbdulHameed Al-Shaikh, Tamkeen's VP for Enterprise and Human Capital Development and Dr. Anwar Khalifa Al-Sada, BSB's Chairman of BSB. BSB is a subsidiary of Al-Salam Bahrain Bank.
Dr. Ahmed Al-Shaikh made a statement pointing out that this project comes within the scope of Tamkeen's objectives to develop and support the national economy on the private sector front and make it the real stimulator of economy in the Kingdom. This is an unmatched opportunity to provide financing on concessional terms in full compliance with the Shariah laws and principles.
The initiative is inspired by Tamkeen's objectives to facilitate enterprise growth to develop businesses in collaboration with financing bodies of the Kingdom of Bahrain which already have Shariah-certified funding system.
Dr. Al-Sada also commented that providing support and funding to private sector enterprises has the effect of enabling those enterprises to increase their success factor and increase growth opportunities and sustainability.
He went on to further comment that the Bank is keen through this agreement to boost all initiatives supporting private businesses consequently leading to economic development and prosperity for the Kingdom of Bahrain.
Friday 22 July 2011
Labuan FSA hosts IIFM's 24th Board of Directors meeting
The 24th Board of Directors meeting of the International Islamic Financial Market's organization (IIFM) was held at the Labuan Financial Services Authority (Labuan FSA) offices which is one of the founding and permanent members of IIFM.
Besides Labuan FSA, the IIFM Board of Directors are represented by senior officials from the Central Bank of Bahrain, Authoriti Monetari Brunei Darussalam, Bank Indonesia, Central Bank of Sudan, State Bank of Pakistan, Islamic Development Bank, Bank Islam Malaysia Berhad, National Bank of Kuwait, Credit Agricole CIB, Standard Chartered Saadiq, Kuwait Finance House-Bahrain, European Islamic Investment Bank and ABC Islamic Bank.
Dato' Azizan Abdul Rahman, Director General of Labuan FSA and Board member of IIFM welcomed the IIFM Board of Directors to Labuan and reiterated its strong support to IIFM's Islamic financial market unification efforts through standardization of Islamic Capital & Money Market (ICMM) products, documentation and related processes.
Mr. Khalid Hamad Abdul Rahman Hamad, Executive Director-Banking Supervision, Central Bank of Bahrain & Chairman of IIFM, thanked Labuan FSA for their hospitality and appreciated the IIFM Board of Directors for their commitment to IIFM's efforts in the standardization of documentation for liquidity management and hedging products over the past few years, which will greatly facilitate the development of the ICMM.
The Board reviewed the progress on market implementation of the Tahawwut Master Agreement (TMA) and also deliberated on the related current IIFM initiative of Islamic hedging products standardization under the TMA. The progress of IIFM's other current market initiatives such as the Master Wakalah Agreement was also discussed.
Mr. Ijlal Ahmed Alvi, Chief Executive of IIFM, briefed that as per the directives of the IIFM Board during its meeting held in December 2010 as well as in line with IIFM's comprehensive industry wide process of market standardization; the "IIFM Market Consultative Meeting on the Master Wakalah Agreement" was held on 12th June 2011 in Dubai. The meeting was very well received by the market practitioners as well as Shariah scholars and resulted in establishing the need to address various issues in the existing Wakalah arrangements in order to provide further enhancement to current practices keeping in view the Shariah requirements of such liquidity management tools.
The IIFM Board formally approved the standardization of Wakalah for the Islamic inter-bank market.Mr. Alvi stressed the need of bringing the Islamic banking institutions, regulators, Shariah scholars and other market participants on a common platform to address their needs and requirements as well as create awareness in the markets.
In this regard, the IIFM's events such as its project consultative meetings, industry seminars and workshops which have benefitted institutions in various jurisdictions. This IIFM seminars and briefings so far held in 2011 are Pakistan, Labuan (Malaysia) and Brunei on 23rd June, 5th July and 6th July respectively.
The IIFM Sukuk Report (2nd Edition) was launched at the press conference following the Board meeting. Mr. Alvi said that this report has now become an annual research feature for the industry.
Besides Labuan FSA, the IIFM Board of Directors are represented by senior officials from the Central Bank of Bahrain, Authoriti Monetari Brunei Darussalam, Bank Indonesia, Central Bank of Sudan, State Bank of Pakistan, Islamic Development Bank, Bank Islam Malaysia Berhad, National Bank of Kuwait, Credit Agricole CIB, Standard Chartered Saadiq, Kuwait Finance House-Bahrain, European Islamic Investment Bank and ABC Islamic Bank.
Dato' Azizan Abdul Rahman, Director General of Labuan FSA and Board member of IIFM welcomed the IIFM Board of Directors to Labuan and reiterated its strong support to IIFM's Islamic financial market unification efforts through standardization of Islamic Capital & Money Market (ICMM) products, documentation and related processes.
Mr. Khalid Hamad Abdul Rahman Hamad, Executive Director-Banking Supervision, Central Bank of Bahrain & Chairman of IIFM, thanked Labuan FSA for their hospitality and appreciated the IIFM Board of Directors for their commitment to IIFM's efforts in the standardization of documentation for liquidity management and hedging products over the past few years, which will greatly facilitate the development of the ICMM.
The Board reviewed the progress on market implementation of the Tahawwut Master Agreement (TMA) and also deliberated on the related current IIFM initiative of Islamic hedging products standardization under the TMA. The progress of IIFM's other current market initiatives such as the Master Wakalah Agreement was also discussed.
Mr. Ijlal Ahmed Alvi, Chief Executive of IIFM, briefed that as per the directives of the IIFM Board during its meeting held in December 2010 as well as in line with IIFM's comprehensive industry wide process of market standardization; the "IIFM Market Consultative Meeting on the Master Wakalah Agreement" was held on 12th June 2011 in Dubai. The meeting was very well received by the market practitioners as well as Shariah scholars and resulted in establishing the need to address various issues in the existing Wakalah arrangements in order to provide further enhancement to current practices keeping in view the Shariah requirements of such liquidity management tools.
The IIFM Board formally approved the standardization of Wakalah for the Islamic inter-bank market.Mr. Alvi stressed the need of bringing the Islamic banking institutions, regulators, Shariah scholars and other market participants on a common platform to address their needs and requirements as well as create awareness in the markets.
In this regard, the IIFM's events such as its project consultative meetings, industry seminars and workshops which have benefitted institutions in various jurisdictions. This IIFM seminars and briefings so far held in 2011 are Pakistan, Labuan (Malaysia) and Brunei on 23rd June, 5th July and 6th July respectively.
The IIFM Sukuk Report (2nd Edition) was launched at the press conference following the Board meeting. Mr. Alvi said that this report has now become an annual research feature for the industry.
Islamic Finance Education To Be Offered by Dar Al Sharia
The Islamic finance sector can further prosper from companies offering innovative methods of educating their employees.Dar Al Sharia, a consultancy and advisory services unit of Dubai Islamic Bank (DIB) has partnered with UK-based Durham University and Hawkamah, the Institute for Corporate Governance, to offer training courses in Islamic finance.
The new courses will be offered at an affordable price and will last for between three and five days. It will initially be run in Dubai, said a DIB statement.
The courses will suit professionals working within the finance industry in particular, as well as university students hoping to work in the field of business and finance, it added.
The courses are aimed at meeting the needs of the UAE’s rapidly expanding Islamic finance industry for high quality academic and practical training, said the DIB in its statement.
Certificates for the courses will be awarded jointly in the names of Dar Al Sharia, Durham University and Hawkamah.
Through this workshop, students will benefit from a unique curriculum that teaches simultaneously the academic and practical elements of Islamic finance, including the role of corporate governance in it. This will provide the participants a complete picture of how Islamic finance operates.
With the support of Hawkamah, the courses will be developed under the guidance of two experts - Dr. Hussain Hamed Hassan, chairman - DIB Sharia Board and the managing director of Dar Al Sharia who has been instrumental in developing the structure for several landmark Sukuk and products, and Professor Rodney Wilson of Durham University, a leading Islamic finance academic for over 25 years.
Dr Hassan said, "Islamic finance is one of the fastest growing industries in the world. However, authentic education on the subject is not widely and easily available."
"We are delighted to work with Durham University and Hawkamah to fill this vacuum and create what will be the benchmark in Islamic finance teaching," he noted.
"For the first time in the UAE, practitioners as well as students can benefit from a curriculum designed to teach both the academic and practical skills needed to succeed in Islamic finance," he added.
Dr Nasser Saidi, executive director of Hawkamah, said: “We are pleased to partner with Dar Al Sharia and Durham University on holding this course, as capacity building of those who are involved first hand in this industry is key to the development of the Islamic Finance Industry."
"Hawkamah strongly advocates creating awareness about corporate governance in the Islamic finance industry and is also providing solutions to the Islamic finance industry on how to bridge the corporate governance gap in the region,"he stated.
Prof Wilson said, "Working with Dar Al Sharia and Hawkamah, we will set the standard in excellence for the teaching of Islamic finance, fuelling development in this fast growing sector of the UAE economy."
The first course, 'Understanding Sukuk Structures and Documentation', will run from September 12 to 14 and will be conducted by the Dar Al Sharia team.-
The new courses will be offered at an affordable price and will last for between three and five days. It will initially be run in Dubai, said a DIB statement.
The courses will suit professionals working within the finance industry in particular, as well as university students hoping to work in the field of business and finance, it added.
The courses are aimed at meeting the needs of the UAE’s rapidly expanding Islamic finance industry for high quality academic and practical training, said the DIB in its statement.
Certificates for the courses will be awarded jointly in the names of Dar Al Sharia, Durham University and Hawkamah.
Through this workshop, students will benefit from a unique curriculum that teaches simultaneously the academic and practical elements of Islamic finance, including the role of corporate governance in it. This will provide the participants a complete picture of how Islamic finance operates.
With the support of Hawkamah, the courses will be developed under the guidance of two experts - Dr. Hussain Hamed Hassan, chairman - DIB Sharia Board and the managing director of Dar Al Sharia who has been instrumental in developing the structure for several landmark Sukuk and products, and Professor Rodney Wilson of Durham University, a leading Islamic finance academic for over 25 years.
Dr Hassan said, "Islamic finance is one of the fastest growing industries in the world. However, authentic education on the subject is not widely and easily available."
"We are delighted to work with Durham University and Hawkamah to fill this vacuum and create what will be the benchmark in Islamic finance teaching," he noted.
"For the first time in the UAE, practitioners as well as students can benefit from a curriculum designed to teach both the academic and practical skills needed to succeed in Islamic finance," he added.
Dr Nasser Saidi, executive director of Hawkamah, said: “We are pleased to partner with Dar Al Sharia and Durham University on holding this course, as capacity building of those who are involved first hand in this industry is key to the development of the Islamic Finance Industry."
"Hawkamah strongly advocates creating awareness about corporate governance in the Islamic finance industry and is also providing solutions to the Islamic finance industry on how to bridge the corporate governance gap in the region,"he stated.
Prof Wilson said, "Working with Dar Al Sharia and Hawkamah, we will set the standard in excellence for the teaching of Islamic finance, fuelling development in this fast growing sector of the UAE economy."
The first course, 'Understanding Sukuk Structures and Documentation', will run from September 12 to 14 and will be conducted by the Dar Al Sharia team.-
Indonesia & Malaysia Colloborate To Boost Islamic Banking
The Indonesian and Malaysian central banks have agreed to improve cooperation to boost the development of Islamic finance in the two nations.
“Islamic finance like Shariah banking is no longer just complementary but has now become a genuine alternative financing option,” said Darmin Nasution, the governor of Bank Indonesia. “So there is a strong need for Islamic banks in Malaysia and in Indonesia to improve their cooperation and develop the Islamic finance market.’’
Darmin was speaking at the opening of a two-day conference on Islamic finance, which was also attended by Vice President Boediono and the governor of Malaysia’s central bank,Zeti Akhtar Aziz.
Darmin said Indonesia’s Shariah banking sector should learn from Malaysia, which has become the center of Islamic finance in Asia. Total assets of Islamic banks in Malaysia stood at $116 billion as of the end of 2010, according to data from its central bank.
“Islamic finance in Malaysia has developed extremely quickly, while Indonesia has a huge potential market given that it has the largest Islamic population,’’ Darmin said.
Assets of Shariah banks in Indonesia totaled Rp 104 trillion ($12.2 billion) at the end of last year. Indonesia has 11 banks that offer Islamic finance options, including Bank Syariah Mandiri, Bank Muamalat Indonesia, Bank Mega Syariah, BRI Syariah and BCA Syariah.
Separately, Zeti said that Malaysia and Indonesia should improve cooperation in Islamic finance and help to develop the sector in the global market.
“Islamic finance will continue to play an important role in the global economy,” he said. “So it’s important for us to grab this opportunity, not only for Malaysia and Indonesia but also for other Asian countries. Islamic finance will help improve welfare and boost economic growth.”
Halim Alamsyah, a Bank Indonesia deputy governor, said the bank wanted to discuss the technical aspects of Shariah banking with its Malaysian counterpart in greater detail. “This will help to create added value in the Shariah banking sector,’’ he said.
In the banking sector overall, Bank Indonesia forecast lending by the country’s 120 commercial banks would rise 24 percent this year, slightly higher than the 23.8 percent gain in 2010. In the first half, loans climbed 24 percent to Rp 372.8 trillion from the same period last year.
Last year, banks’ combined net profit rose 26 percent to Rp 57.1 trillion from a year earlier, according to central bank data.
“Islamic finance like Shariah banking is no longer just complementary but has now become a genuine alternative financing option,” said Darmin Nasution, the governor of Bank Indonesia. “So there is a strong need for Islamic banks in Malaysia and in Indonesia to improve their cooperation and develop the Islamic finance market.’’
Darmin was speaking at the opening of a two-day conference on Islamic finance, which was also attended by Vice President Boediono and the governor of Malaysia’s central bank,Zeti Akhtar Aziz.
Darmin said Indonesia’s Shariah banking sector should learn from Malaysia, which has become the center of Islamic finance in Asia. Total assets of Islamic banks in Malaysia stood at $116 billion as of the end of 2010, according to data from its central bank.
“Islamic finance in Malaysia has developed extremely quickly, while Indonesia has a huge potential market given that it has the largest Islamic population,’’ Darmin said.
Assets of Shariah banks in Indonesia totaled Rp 104 trillion ($12.2 billion) at the end of last year. Indonesia has 11 banks that offer Islamic finance options, including Bank Syariah Mandiri, Bank Muamalat Indonesia, Bank Mega Syariah, BRI Syariah and BCA Syariah.
Separately, Zeti said that Malaysia and Indonesia should improve cooperation in Islamic finance and help to develop the sector in the global market.
“Islamic finance will continue to play an important role in the global economy,” he said. “So it’s important for us to grab this opportunity, not only for Malaysia and Indonesia but also for other Asian countries. Islamic finance will help improve welfare and boost economic growth.”
Halim Alamsyah, a Bank Indonesia deputy governor, said the bank wanted to discuss the technical aspects of Shariah banking with its Malaysian counterpart in greater detail. “This will help to create added value in the Shariah banking sector,’’ he said.
In the banking sector overall, Bank Indonesia forecast lending by the country’s 120 commercial banks would rise 24 percent this year, slightly higher than the 23.8 percent gain in 2010. In the first half, loans climbed 24 percent to Rp 372.8 trillion from the same period last year.
Last year, banks’ combined net profit rose 26 percent to Rp 57.1 trillion from a year earlier, according to central bank data.
HSBC Amanah Wins Six Prestegious Islamic Finance Awards
HSBC Amanah has been doing unprecedently well as they have been reported to have won a staggering six awards, in recognition of its leading Islamic capabilities, from arranging Sukuk to structuring Islamic investments, providing custody services and trade financing.
The awards that HSBC Amanah received were: The Asset’s Triple A Islamic Finance Awards 2011, Sukuk House of the Year, Best Islamic Investment Bank, Asia , Best Islamic Investment Bank, Middle East, Islamic Custodian of the Year for the second consecutive year, Euromoney’s Trade Finance magazine Awards for Excellence 2011, Best Islamic Trade Finance Bank for Europe, Middle East and Africa (EMEA), Credit Awards 2011, and Best Bank for Islamic finance for third consecutive year.
Razi Fakih, Deputy CEO of HSBC Amanah, said, “We are grateful to be recognised time and again as the leading international Islamic bank across customer segments, be it corporates, institutions or individuals. HSBC Amanah is at the forefront of the industry, helping structure innovative Islamic finance deals for customers. So far in 2011, HSBC Amanah is the No 1 underwriter of international Sukuk, with a 37.4 per cent market share.
“We are also pleased to retain the ‘Islamic Custodian of the Year’ award for the second consecutive year. The launch of HSBC Amanah Securities Services in March 2011 allows managers of Islamic funds to have for the first time, a globally consistent Shariah-compliant securities service in 17 markets across the Middle East, Asia Pacific, Europe and the Americas. This is crucial for asset managers who are looking to distribute products beyond their home markets.”
HSBC Amanah is also ‘Best Islamic Trade Finance Bank (EMEA)’, according to Trade Finance magazine’s Awards for Excellence 2011. With a wide range of Islamic commercial banking and treasury products and presence in six markets across Asia and the Middle East, HSBC Amanah is uniquely positioned to connect customers between Asia and the MiddleEast.
Cross-border trade flows have indeed been increasing in recent years, especially between Asia and the Middle East, according to WTO data. HSBC’s Islamic products for corporate customers include account services, working capital and trade finance, long-term and project finance, payments and cash management solutions, treasury hedging solutions, Sukuk (Islamic bonds), syndications and takaful (Islamic insurance).
HSBC Amanah has also been named ‘Best Islamic Investment Bank, Asia and the Middle East’ for its broad array of Islamic funds, spanning from equities (global, emerging markets, Europe, Asia, GCC and Saudi Arabia), money markets, real estate, balanced funds, income-focused funds and capital-protected funds. Besides the six awards, 10 of the deals that HSBC Amanah arranged between July 2010 to June 2011 were also selected as winners in The Asset’s Best Islamic deals.
The deals are; Republic of Indonesia’s 8.03 trillion rupiah retail Sukuk; Qatar Islamic Bank’s $750 million Sukuk; Saudi Electric Company Saudi Riyal 7 billion Sukuk; Sabana Shariah-compliant industrial REIT’s $636 million IPO; Trans Thai-Malaysia (Thailand) 600 million ringgit Sukuk; National Bank of Abu Dhabi’s 500 million ringgit Sukuk; Abu Dhabi Islamic Bank’s $750 million Sukuk; Government of Malaysia’s $1.25 billion Sukuk Ijara; Saudi Bin Laden Group’s Saudi riyal 700 million Murabaha Sukuk and Cagamas’ 230 million ringgit variable rate Sukuk.
The awards that HSBC Amanah received were: The Asset’s Triple A Islamic Finance Awards 2011, Sukuk House of the Year, Best Islamic Investment Bank, Asia , Best Islamic Investment Bank, Middle East, Islamic Custodian of the Year for the second consecutive year, Euromoney’s Trade Finance magazine Awards for Excellence 2011, Best Islamic Trade Finance Bank for Europe, Middle East and Africa (EMEA), Credit Awards 2011, and Best Bank for Islamic finance for third consecutive year.
Razi Fakih, Deputy CEO of HSBC Amanah, said, “We are grateful to be recognised time and again as the leading international Islamic bank across customer segments, be it corporates, institutions or individuals. HSBC Amanah is at the forefront of the industry, helping structure innovative Islamic finance deals for customers. So far in 2011, HSBC Amanah is the No 1 underwriter of international Sukuk, with a 37.4 per cent market share.
“We are also pleased to retain the ‘Islamic Custodian of the Year’ award for the second consecutive year. The launch of HSBC Amanah Securities Services in March 2011 allows managers of Islamic funds to have for the first time, a globally consistent Shariah-compliant securities service in 17 markets across the Middle East, Asia Pacific, Europe and the Americas. This is crucial for asset managers who are looking to distribute products beyond their home markets.”
HSBC Amanah is also ‘Best Islamic Trade Finance Bank (EMEA)’, according to Trade Finance magazine’s Awards for Excellence 2011. With a wide range of Islamic commercial banking and treasury products and presence in six markets across Asia and the Middle East, HSBC Amanah is uniquely positioned to connect customers between Asia and the MiddleEast.
Cross-border trade flows have indeed been increasing in recent years, especially between Asia and the Middle East, according to WTO data. HSBC’s Islamic products for corporate customers include account services, working capital and trade finance, long-term and project finance, payments and cash management solutions, treasury hedging solutions, Sukuk (Islamic bonds), syndications and takaful (Islamic insurance).
HSBC Amanah has also been named ‘Best Islamic Investment Bank, Asia and the Middle East’ for its broad array of Islamic funds, spanning from equities (global, emerging markets, Europe, Asia, GCC and Saudi Arabia), money markets, real estate, balanced funds, income-focused funds and capital-protected funds. Besides the six awards, 10 of the deals that HSBC Amanah arranged between July 2010 to June 2011 were also selected as winners in The Asset’s Best Islamic deals.
The deals are; Republic of Indonesia’s 8.03 trillion rupiah retail Sukuk; Qatar Islamic Bank’s $750 million Sukuk; Saudi Electric Company Saudi Riyal 7 billion Sukuk; Sabana Shariah-compliant industrial REIT’s $636 million IPO; Trans Thai-Malaysia (Thailand) 600 million ringgit Sukuk; National Bank of Abu Dhabi’s 500 million ringgit Sukuk; Abu Dhabi Islamic Bank’s $750 million Sukuk; Government of Malaysia’s $1.25 billion Sukuk Ijara; Saudi Bin Laden Group’s Saudi riyal 700 million Murabaha Sukuk and Cagamas’ 230 million ringgit variable rate Sukuk.
Gatehouse London Enters into Takaful Sector
Gatehouse London is entering into the Takaful sector with the facilitation of the city's first Takaful brokerage. Gatehouse London (GNL) said "We're for the first time offering global corporations Takaful support from London, the world's leading insurance market," Richard Bishop, CEO of GNL Insurance.
He said: "Up until now large multinationals that have required global Shari'ah compliant insurance solutions have been forced to use small brokers in Asian and Gulf countries, whereas they can now be serviced from London."
GNL Insurance is a joint venture between British Islamic bank, Gatehouse and Paul Napier, a Lloyd's insurance broker based in London.
The new firm will provide a global gateway for corporate and institutional clients seeking commercial risk protection, with its initial mandate being the provision of insurance for real estate, trade finance and financial institutions.
The firm will only be focusing on large commercial clientele, not retail or general Takaful. Bishop said: "The retail insurance market is not ready for Takaful, this is why [UK retail Takaful firm] Salaam Halal Insurance failed, as the market, especially at the retail level is dominated by a handful of large, aggressive firms who will force any competition out of the game by all means necessary."
GNL's first client is Chartis UK a diversified global risk solutions leader. For several years Chartis has recognized the importance of Takaful financial products and through Chartis Takaful in Bahrain has been offering Shari'ah compliant commercial and consumer products since 2006.
He said: "Up until now large multinationals that have required global Shari'ah compliant insurance solutions have been forced to use small brokers in Asian and Gulf countries, whereas they can now be serviced from London."
GNL Insurance is a joint venture between British Islamic bank, Gatehouse and Paul Napier, a Lloyd's insurance broker based in London.
The new firm will provide a global gateway for corporate and institutional clients seeking commercial risk protection, with its initial mandate being the provision of insurance for real estate, trade finance and financial institutions.
The firm will only be focusing on large commercial clientele, not retail or general Takaful. Bishop said: "The retail insurance market is not ready for Takaful, this is why [UK retail Takaful firm] Salaam Halal Insurance failed, as the market, especially at the retail level is dominated by a handful of large, aggressive firms who will force any competition out of the game by all means necessary."
GNL's first client is Chartis UK a diversified global risk solutions leader. For several years Chartis has recognized the importance of Takaful financial products and through Chartis Takaful in Bahrain has been offering Shari'ah compliant commercial and consumer products since 2006.
Thursday 14 July 2011
Ajman Bank Chief Operating Officer Awarded Prominent Position
Ashraf Shokry, Chief Operating Officer of Ajman Bank, was inducted into the Who’s Who of Financial Technology-Middle East 2011. The accolade from the World Development Forum, organisers of the Financial Technology Summit Middle East, recognised Shokry’s dedication, leadership and excellence in financial technology.
Commenting on this selection, Khaled Eid, CEO of the World Development Forum and founder of the Financial Technology Summit, said: “The induction of Ashraf Shokry recognises his commitment to excellence in financial technology and the leading role he is playing to bring business value to the financial industry through the effective use of Information Technology.”
“Ashraf presented a paper on QR Codes at this year’s Financial Technology Summit, explaining how a new innovative technology with low implementation costs has added great value to Ajman Bank. The paper was rated as one of the summit’s best sessions as it inspired the audience and showed them how technology and innovation can make difference. I would like welcome Ashraf to the prestigious group of Who’s Who of Financial Technology and I am confident that this gathering of leading minds will bring added value and innovation to the industry and the region,” concluded Eid.
Shokry said: “Ajman Bank is committed to transforming the offering and experience of Islamic banking. Central to this goal is the adoption of leading-edge financial technology that enhances the customer experience. I thank the World Development Forum for recognising Ajman Bank’s commitment to innovation, and I look forward to working with my industry peers as we strive to stay at the forefront of financial technology.”
Ashraf Shokry joined Ajman Bank in June 2008 as CIO, and now holds the position of Chief Operating Officer. Mr. Shokry has more than 22 years of experience in banking and non-banking operation and information technology. Before Ajman Bank, he was Head of IT at Khaleeji Commercial Bank and Bahrain Islamic Bank in Bahrain. Shokry holds a bachelor’s degree in Electronics & Communication Engineering and a master’s degree in Computer Science, in addition to many certifications from international bodies.
Commenting on this selection, Khaled Eid, CEO of the World Development Forum and founder of the Financial Technology Summit, said: “The induction of Ashraf Shokry recognises his commitment to excellence in financial technology and the leading role he is playing to bring business value to the financial industry through the effective use of Information Technology.”
“Ashraf presented a paper on QR Codes at this year’s Financial Technology Summit, explaining how a new innovative technology with low implementation costs has added great value to Ajman Bank. The paper was rated as one of the summit’s best sessions as it inspired the audience and showed them how technology and innovation can make difference. I would like welcome Ashraf to the prestigious group of Who’s Who of Financial Technology and I am confident that this gathering of leading minds will bring added value and innovation to the industry and the region,” concluded Eid.
Shokry said: “Ajman Bank is committed to transforming the offering and experience of Islamic banking. Central to this goal is the adoption of leading-edge financial technology that enhances the customer experience. I thank the World Development Forum for recognising Ajman Bank’s commitment to innovation, and I look forward to working with my industry peers as we strive to stay at the forefront of financial technology.”
Ashraf Shokry joined Ajman Bank in June 2008 as CIO, and now holds the position of Chief Operating Officer. Mr. Shokry has more than 22 years of experience in banking and non-banking operation and information technology. Before Ajman Bank, he was Head of IT at Khaleeji Commercial Bank and Bahrain Islamic Bank in Bahrain. Shokry holds a bachelor’s degree in Electronics & Communication Engineering and a master’s degree in Computer Science, in addition to many certifications from international bodies.
Malaysia Hosts 2nd World Conference on Riba Islamic Interest
The 2nd World Conference on Riba scheduled to be held in Malaysia on 26 and 27 July 2011 will set the stage for an in-depth andcomprehensive deliberation on Riba (usury) from all perspectives.
With the theme “The Riba Conundrum: Impartial Outlook from Accounting,Legal and Religious Perspectives”, the conference will be held at the TunHussein Onn Hall, Putra World Trade Centre.
Conference Convener, Professor Dr. Ahamed Kameel Mydin Meera said that the conferencewill critically look at the element of interest, commonly known as Riba in Islamic finance fromthe banking and accounting perspectives.
It also aims to take Islamic bankingas it is practised today to the next level and re-visit the legal tender law to mitigate the use of ‘fiat’ money with gold or community currencies.
“The inaugural WorldConference on Riba which was heldlast November received tremendous support from both Islamic and Western scholars, as well as industry leaders.
We discussed the issue of Riba amid signals of another financialcrisis looming. This was despite constant reports of economic recovery,” hesaid.
“Almost nine months later, wesee turmoil in Arab countries, weakening US$, sharp rise in gold prices,countries going bankrupt and many other worrying financial developments--- allsignalling that the discourse on Ribais even more pertinent in addressing entrenched financial practices whichcorrespond directly to the political and economic upheavals around the world,”said Kameel who is also the Head of Departmentof Finance, Faculty of Economics and Management Sciences, International IslamicUniversity Malaysia (IIUM).
Kameel, the author of the highly critically acclaimed book, The Theft of Nations said Riba is nolonger an isolated term which is relevant only to the Islamic finance.
“Riba is no longer an ‘Islamic’issue. The term could be different, some may call it interest, some will callit usury, but the effect is felt by everyone, irrespective of race or religion.”
According to the Organizing Committee Chairman, Shirazdeen Adam Shah, thesecond conference will be a continuation of the first especially on thediscussion of the core meaning of Riba itself.
“The conference will continue the discussion on the coremeaning of Riba – from religious, scientific and economic perspectives.
Additionally,this year the discussions by the intellectuals, business community and the policymakers will revolve around one central theme which is the relationship between accountingstandards, legal tender and Riba.”
“The key question remains: Can we blame the practiceof Riba for the current global economic and political turmoil? If so, what can be done to mitigate the issue? This is what the conference is all about,” reiterated Shiraz.
Leading speakers for this conference will include Attorneyand President of the Public Banking Institute (USA) Ellen Hodgson Brown, Founderof the Global Exchange Trading Systems (UK) Richard Logie, Founder and Chairmanof the al-Ghazzali Centre for Islamic Sciences and Human Development (Australia)Imam Afroz Ali, former CEO of Bank Muamalat Datuk A. Manap Wahab, Rector of Kolej University Islam Selangor ProfessorDatuk Dr Aziuddin Ahmad, Dean of the Graduate School of Management UniversitiPutra Malaysia Associate Professor Dr Arfah Salleh and many others.
He added that there is an overwhelming response for the conference, with participantsfrom all over the world including United States, Nigeria, United Kingdom,Canada, Jordan, Indonesia and Singapore among the 200 who have registered tilldate.However, he said that there arelimited spaces left.
The two day conference is organised by Thinkers TrendsResources Sdn Bhd, Kulliyah of Economics & Management Sciences, InternationalIslamic University Malaysia and Kolej University Islam Antarabangsa Selangor.
With the theme “The Riba Conundrum: Impartial Outlook from Accounting,Legal and Religious Perspectives”, the conference will be held at the TunHussein Onn Hall, Putra World Trade Centre.
Conference Convener, Professor Dr. Ahamed Kameel Mydin Meera said that the conferencewill critically look at the element of interest, commonly known as Riba in Islamic finance fromthe banking and accounting perspectives.
It also aims to take Islamic bankingas it is practised today to the next level and re-visit the legal tender law to mitigate the use of ‘fiat’ money with gold or community currencies.
“The inaugural WorldConference on Riba which was heldlast November received tremendous support from both Islamic and Western scholars, as well as industry leaders.
We discussed the issue of Riba amid signals of another financialcrisis looming. This was despite constant reports of economic recovery,” hesaid.
“Almost nine months later, wesee turmoil in Arab countries, weakening US$, sharp rise in gold prices,countries going bankrupt and many other worrying financial developments--- allsignalling that the discourse on Ribais even more pertinent in addressing entrenched financial practices whichcorrespond directly to the political and economic upheavals around the world,”said Kameel who is also the Head of Departmentof Finance, Faculty of Economics and Management Sciences, International IslamicUniversity Malaysia (IIUM).
Kameel, the author of the highly critically acclaimed book, The Theft of Nations said Riba is nolonger an isolated term which is relevant only to the Islamic finance.
“Riba is no longer an ‘Islamic’issue. The term could be different, some may call it interest, some will callit usury, but the effect is felt by everyone, irrespective of race or religion.”
According to the Organizing Committee Chairman, Shirazdeen Adam Shah, thesecond conference will be a continuation of the first especially on thediscussion of the core meaning of Riba itself.
“The conference will continue the discussion on the coremeaning of Riba – from religious, scientific and economic perspectives.
Additionally,this year the discussions by the intellectuals, business community and the policymakers will revolve around one central theme which is the relationship between accountingstandards, legal tender and Riba.”
“The key question remains: Can we blame the practiceof Riba for the current global economic and political turmoil? If so, what can be done to mitigate the issue? This is what the conference is all about,” reiterated Shiraz.
Leading speakers for this conference will include Attorneyand President of the Public Banking Institute (USA) Ellen Hodgson Brown, Founderof the Global Exchange Trading Systems (UK) Richard Logie, Founder and Chairmanof the al-Ghazzali Centre for Islamic Sciences and Human Development (Australia)Imam Afroz Ali, former CEO of Bank Muamalat Datuk A. Manap Wahab, Rector of Kolej University Islam Selangor ProfessorDatuk Dr Aziuddin Ahmad, Dean of the Graduate School of Management UniversitiPutra Malaysia Associate Professor Dr Arfah Salleh and many others.
He added that there is an overwhelming response for the conference, with participantsfrom all over the world including United States, Nigeria, United Kingdom,Canada, Jordan, Indonesia and Singapore among the 200 who have registered tilldate.However, he said that there arelimited spaces left.
The two day conference is organised by Thinkers TrendsResources Sdn Bhd, Kulliyah of Economics & Management Sciences, InternationalIslamic University Malaysia and Kolej University Islam Antarabangsa Selangor.
Memorandum Signed Between Meezan Bank and Publicatas Ltd
A memorandum of understanding (MoU) was signed this morning by Meezan Bank Limited (MBL) with Publicitas Pvt Ltd (PPL) at the MBL head office to be the Technical Supporter for World Islamic Finance Summit (WIFS) 2011.
This agreement was signed in the presence of Mr Ahmed Ali Siddiqui and Mr Fayyaz ur Rehman Khan from MBL while from World Islamic Finance Summit, Mr Syed Shahjahan Salahuddin and Mr Ozair Hanafi were present.
WIFS is a two-day summit being organized by Publicitas Pvt Limited with support from the State Bank of Pakistan. This summit is endorsed by a ‘Consultative Group’ comprising of senior bankers, Islamic finance specialists and academicians including Syed Salim Raza-Former Governor State Bank of Pakistan; Mr. Muneer Kamal-Chairman KSE; Mr. Irfan Siddiqui – CEO & President, Meezan Bank Ltd and Mr. Muhammad Ayub- Director Research & Training, Riphah International University Islamabad.
A large number of prominent practitioners and experts in Islamic finance from the region including the Middle East, Malaysia, Indonesia and other key Islamic countries are expected to attend this two-day summit which is due to be held on 21-22 September 2011 in Karachi.
Speakers and chairpersons representing regional and Pakistani Islamic finance institutions will be making presentations and deliberating on practical issues and opportunities, specifically those which can move the Islamic finance to its next level.
This summit is being organized at a suitable time when Pakistan and Islamic countries in the region have various successful programs and products which can serve as the key elements for discussion during the summit.
It will be a high profile event which has already started generating interest both locally and internationally as queries have flooded in the WIFS Secretariat and delegate registration process has commenced.
This agreement was signed in the presence of Mr Ahmed Ali Siddiqui and Mr Fayyaz ur Rehman Khan from MBL while from World Islamic Finance Summit, Mr Syed Shahjahan Salahuddin and Mr Ozair Hanafi were present.
WIFS is a two-day summit being organized by Publicitas Pvt Limited with support from the State Bank of Pakistan. This summit is endorsed by a ‘Consultative Group’ comprising of senior bankers, Islamic finance specialists and academicians including Syed Salim Raza-Former Governor State Bank of Pakistan; Mr. Muneer Kamal-Chairman KSE; Mr. Irfan Siddiqui – CEO & President, Meezan Bank Ltd and Mr. Muhammad Ayub- Director Research & Training, Riphah International University Islamabad.
A large number of prominent practitioners and experts in Islamic finance from the region including the Middle East, Malaysia, Indonesia and other key Islamic countries are expected to attend this two-day summit which is due to be held on 21-22 September 2011 in Karachi.
Speakers and chairpersons representing regional and Pakistani Islamic finance institutions will be making presentations and deliberating on practical issues and opportunities, specifically those which can move the Islamic finance to its next level.
This summit is being organized at a suitable time when Pakistan and Islamic countries in the region have various successful programs and products which can serve as the key elements for discussion during the summit.
It will be a high profile event which has already started generating interest both locally and internationally as queries have flooded in the WIFS Secretariat and delegate registration process has commenced.
Global Islamic Finance Awards & Rankings Now Open For Submissions!!!!!!
The need for the Islamic finance industry to innovate original and genuinely Shariah-compatible products is widely acknowledged. Not only is innovation necessary to compete with the conventional finance sector, but it could also help the Islamic finance industry to work together with its conventional counterparts in order to create a more sustainable, ethical financial system worldwide. Leaders in Islamic banks, Takaful firms and Shariah-compliant investment companies play a major part in the process of innovation, inspiring everyone involved in their organisation. As such as a leader it is paramount that you have access to resources that can in turn inspire you and inform your ideas.
Our primary aim is to reward institutions and individuals for demonstrable achievement in promoting and developing the Islamic finance market regionally and internationally. The Awards are open to everyone involved in the Islamic finance and banking industry. Winning a Global Islamic Finance Award demonstrates that your company is leading the world in its innovative thinking, ethical approach, and that your team is delivering effective, impactful solutions to the Islamic financial market.
Wednesday 6 July 2011
Pakistan on Top for Dow Jones Listing in Islamic Finance
It has been reported that the Pakistan Index posted the highest first-half 2011 advance (as of the close of trading of June 28) of all the country indexes in the DJIM series.
In June, the DJIM Pakistan index achieved the second-highest monthly return, closing up 6.54% to 16,385.68, just behind the DJIM Philippines Index, which gained 7% to 1,953.46. These were the only advancing equity composites of the DJIM country indexes.
The Dow Jones Citigroup Sukuk Index was the third “highest” performer, finishing the month unchanged at 130.13. Pakistan has partly recovered from the tragic flood catastrophe in mid-2010 and the country is regarded as a causeway in Islamic finance -- bridging the Middle East with East Asia. The Karachi Stock Exchange has also been relatively unaffected by theconcerns over a possible government bond default in Greece.
The trouble around Greece has clearly affected European shares, whether Shari’ah-compliant or not. The Dow Jones Islamic Market Europe Titans 25 Index last month fell 5.33% to 2,242.54.
The index suffered from poor performances by DJIM Indexes covering Shari’ah-compliant Thailand (down 6.26% to 1,841.04) and Taiwan (down 7.40% to 5,155.74).
As a comparison, the Dow Jones U. S. Titans 50 Index ended down 3.42% to 2,330, while the bellwether Dow Jones Industrial Average declined 3% to 12,188.69.
Despite fears of a debt contagion contaminating financial Europe, there was some good news, at least for -importing countries. Oil prices dropped to a multi-month lows in June after the International Energy Agency released 60 million barrels of government-held reserves.
Consequently, the DJIM Oil and Gas Index declined the most among the sector indexes, falling 5.57% to 3,861.62. Nevertheless, Swiss private bank Sarasin’s Commodity Strategist Eliane Tanner expects oil prices to rise again in the longer term. “Chinese demand for oil grew on average by 11.4% in the first four months of this year compared with the same period in 2010,” she said. “Although industrial production has decreased somewhat over the past few months, other factors suggest demand from China will remain robust.”
Regarding the supply side, Tanner adds “the high-quality crude oil from Libya is likely to remain absent from the marketplace in the coming months. It is unclear when production and deliveries will resume, but as long as Muammar Gaddafi remains in power, a rapid improvement in the situation is not expected.”
With a loss of 2%, the DJIM Consumer Goods Index was the “best” performing industry composite, closing at 2,489.95. In order to give clients the chance to benefit from growing consumer purchasing power in Asia, Dubai Islamic Bank has provided access to the Prudential Shari’ah Opportunities - Asia Pacific Equity Fund.
The fund is benchmarked against the Dow Jones Islamic Market Asia Pacific ex-Japan Index, which finished June lower by 4.09% to 1,486.57.
June also saw the launch of the Dow Jones Global Commodity Equity 100 Index, the flagship of a new index series that measures the stock performance of companies engaged in the exploration or production of both scarce and renewable commodities.
Its sub-index Dow Jones Islamic Market Global Equity Commodity Index measures all companies from the parent index that pass Shari’ah screens. Both moves indicate that, despite the maturing of the Islamic finance industry, there is still much room for innovation and expansion. It also helps that the Sultanate of Oman recently legalized Islamic Banking, the final Gulf Arab state to do so.
In June, the DJIM Pakistan index achieved the second-highest monthly return, closing up 6.54% to 16,385.68, just behind the DJIM Philippines Index, which gained 7% to 1,953.46. These were the only advancing equity composites of the DJIM country indexes.
The Dow Jones Citigroup Sukuk Index was the third “highest” performer, finishing the month unchanged at 130.13. Pakistan has partly recovered from the tragic flood catastrophe in mid-2010 and the country is regarded as a causeway in Islamic finance -- bridging the Middle East with East Asia. The Karachi Stock Exchange has also been relatively unaffected by theconcerns over a possible government bond default in Greece.
The trouble around Greece has clearly affected European shares, whether Shari’ah-compliant or not. The Dow Jones Islamic Market Europe Titans 25 Index last month fell 5.33% to 2,242.54.
The index suffered from poor performances by DJIM Indexes covering Shari’ah-compliant Thailand (down 6.26% to 1,841.04) and Taiwan (down 7.40% to 5,155.74).
As a comparison, the Dow Jones U. S. Titans 50 Index ended down 3.42% to 2,330, while the bellwether Dow Jones Industrial Average declined 3% to 12,188.69.
Despite fears of a debt contagion contaminating financial Europe, there was some good news, at least for -importing countries. Oil prices dropped to a multi-month lows in June after the International Energy Agency released 60 million barrels of government-held reserves.
Consequently, the DJIM Oil and Gas Index declined the most among the sector indexes, falling 5.57% to 3,861.62. Nevertheless, Swiss private bank Sarasin’s Commodity Strategist Eliane Tanner expects oil prices to rise again in the longer term. “Chinese demand for oil grew on average by 11.4% in the first four months of this year compared with the same period in 2010,” she said. “Although industrial production has decreased somewhat over the past few months, other factors suggest demand from China will remain robust.”
Regarding the supply side, Tanner adds “the high-quality crude oil from Libya is likely to remain absent from the marketplace in the coming months. It is unclear when production and deliveries will resume, but as long as Muammar Gaddafi remains in power, a rapid improvement in the situation is not expected.”
With a loss of 2%, the DJIM Consumer Goods Index was the “best” performing industry composite, closing at 2,489.95. In order to give clients the chance to benefit from growing consumer purchasing power in Asia, Dubai Islamic Bank has provided access to the Prudential Shari’ah Opportunities - Asia Pacific Equity Fund.
The fund is benchmarked against the Dow Jones Islamic Market Asia Pacific ex-Japan Index, which finished June lower by 4.09% to 1,486.57.
June also saw the launch of the Dow Jones Global Commodity Equity 100 Index, the flagship of a new index series that measures the stock performance of companies engaged in the exploration or production of both scarce and renewable commodities.
Its sub-index Dow Jones Islamic Market Global Equity Commodity Index measures all companies from the parent index that pass Shari’ah screens. Both moves indicate that, despite the maturing of the Islamic finance industry, there is still much room for innovation and expansion. It also helps that the Sultanate of Oman recently legalized Islamic Banking, the final Gulf Arab state to do so.
Kuwait Finance House-Turkey Branch Takes Part in ‘Dialogue with Europe’
It has been reported that Kuwait Finance House-Turkey CEO Ufuk iwan stressed that the Islamic banking industry has reinforced its competitiveness during the economic crisis, and that Islamic banks were less vulnerable to the impact of the crisis that their traditional counterparts.
Since Islamic banks deal in real products instead of relying on offering loans. Iwan, who took part in a conference in Hungary about dialogues between Europe and the Islamic world to bride any gaps, made a demonstration about the Islamic banking industry and its development.
He added that by the end of 2010, Islamic banking assets reached 83 percent of total Islamic assets in general, followed by sukuk 11 percent and Islamic funds 4.6 percent. He noted that Islamic assets grew by 20 percent every year to reach $150 billion by 2010, while they are expected to reach $1.6 trillion by 2012.
Moreover, Iwan stated that KFH-Turkey invests in Europe, the United States, Central Asia, the Middle East, and the GCC, in collaboration with major international institutions, where KFH plans to expand and add new markets on its map. He went on to say that the bank’s total assets have reached $6.7 billion while shareholders’ equity reached $836 million.
Furthermore, Iwan said that Turkey is making great strides in the field of Islamic finance at a time when the bank became a prominent player in the international sukuk market after making several successful issuances. He added that the bank plans to issue new Ijarah sukuk for five years, since it managed to sell sukuk worth $100 million over three years.It is worth noting that the conference was hosted by Hungarian Prime Minister, and was attended by numerous prominent figures in the European Union.
KFH-Turkey’s Chairman Mohammed Al-Omar had presented KFH’s experience for over 34 years before several EU ambassadors in Kuwait after being invited by the Hungarian Embassy.
Since Islamic banks deal in real products instead of relying on offering loans. Iwan, who took part in a conference in Hungary about dialogues between Europe and the Islamic world to bride any gaps, made a demonstration about the Islamic banking industry and its development.
He added that by the end of 2010, Islamic banking assets reached 83 percent of total Islamic assets in general, followed by sukuk 11 percent and Islamic funds 4.6 percent. He noted that Islamic assets grew by 20 percent every year to reach $150 billion by 2010, while they are expected to reach $1.6 trillion by 2012.
Moreover, Iwan stated that KFH-Turkey invests in Europe, the United States, Central Asia, the Middle East, and the GCC, in collaboration with major international institutions, where KFH plans to expand and add new markets on its map. He went on to say that the bank’s total assets have reached $6.7 billion while shareholders’ equity reached $836 million.
Furthermore, Iwan said that Turkey is making great strides in the field of Islamic finance at a time when the bank became a prominent player in the international sukuk market after making several successful issuances. He added that the bank plans to issue new Ijarah sukuk for five years, since it managed to sell sukuk worth $100 million over three years.It is worth noting that the conference was hosted by Hungarian Prime Minister, and was attended by numerous prominent figures in the European Union.
KFH-Turkey’s Chairman Mohammed Al-Omar had presented KFH’s experience for over 34 years before several EU ambassadors in Kuwait after being invited by the Hungarian Embassy.
Tokyo Nomura Exhibits Opens New Shanghai Asset Management Office
Tokyo – Nomura Asset Management Co. has announced that it has opened a representative office in Shanghai as part of its push to build up its global investment management capabilities.
The company's Shanghai office, located in Shanghai Central Plaza and headed by Takeshi Ebihara, will focus on researching companies in mainland China. The Shanghai-based analysts will be an integral part of Nomura Asset Management's global research team that spans Japan, Singapore, Hong Kong, Malaysia, the US, and the UK.
'China's strong growth and solid fundamentals offer investors a broad set of investment opportunities', said Toshihiro Iwasaki, Chairman and CEO of Nomura Asset Management. 'Research is a high priority for us so we are excited to have a local presence in China that will allow us to identify promising Chinese companies. The new office is another step in our strategy of building a world-class asset management firm with a strong competitive edge in Asia'.
Nomura Asset Management, one of the leading Japanese and Asian fund managers, provides a diverse range of products and services for both retail and institutional investors around the world. As of March 31, 2011, Nomura's Asset Management division had assets under management of around $300 billion.
Nomura has been building up its asset management capabilities outside Japan, with a particular focus on Asia. The company has moved into Islamic finance in Malaysia and recently set up a joint venture in India with LIC, India's largest life insurer, that offers mutual funds to retail investors in India.
Waqf Fund signs key training deal
The Waqf Fund, the special fund to support Islamic finance training, education and research, has announced the launch of its Shariah Reviewer Development Programme.
It is aimed at capacity building of reviewers at Islamic financial institutions and to better equip them to handle their job. The Waqf Fund has signed an agreement with the Bahrain Institute of Banking and Finance (BIBF) for the execution of this programme.
"The Waqf Fund conducted a successful two-day training session for internal Sharia reviewers of Islamic financial institutions in April last year to orient them with conventional banking concepts and practice, said Central Bank of Bahrain executive director of banking supervision and Waqf Fund chairman Khalid Hamad.
"Based on the feedback received from the participants we have now developed a full programme aimed at improving the knowledge base of internal Sharia reviewers and others working in Islamic financial institutions' Sharia departments.
"Starting from September, the programme will be conducted by BIBF after office hours in self-contained sessions."We believe that it will help improve the efficiency of internal Sharia review personnel working for our member institutions."
These include understanding financial statements for Islamic financial institutions, business, banking and trust law, Islamic liquidity and treasury management, risk management in Islamic financial institutions, Sharia auditing and corporate governance and an introduction to Accounting and Auditing Organisation for Islamic Financial Institutions and Islamic Financial Services Board standards.
"The objective is to provide a high level perspective on the above topics in order to help Sharia reviewers better understand the business and financial implications of Sharia and familiarise them with the relevant laws, regulations, standards and best practices," Mr Hamad said.
"The cost of the participants will be picked up by the Waqf Fund. We have received enthusiastic response from our members and we continue to receive nominations."
The Waqf Fund, established in 2006, has been a major contributor to the development of Islamic banking industry in Bahrain.Twenty Bahrain-based financial institutions are its members.
Dubai Islamic Bank Launches Asia Pacific Equity Fund
Dubai Islamic Bank (DIB) has launched a new Sharia-compliant Asia Pacific Equity Fund for regional investors to participate in the growing economy of Asia.DIB has been doing unprecedently well in establishing key investments, products and services in the Islamic financial sector.
The Asia Pacific fund aims to provide medium to long-term capital appreciation by investing in Sharia-compliant companies within the Asia Pacific region (excluding Japan).
According to DIB, capitalizing on the sustained economic growth and increasing wealth across the APAC region, the fund is offered by Prudential Asset Management, based at DIFC.
The fund benchmarked against the Dow Jones Islamic Market Asia Pacific ex-Japan Index, participation in the fund allows investors to gain exposure across a range of growth countries and industries through a single platform.
Dubai Islamic Bank deputy CEO - chief of consumer and wholesale banking Adnan Chilwan said this new product is in line with DIB's commitment to introduce pioneering, high quality financial products.
"It is designed for our valued high net worth customers who understand the opportunities presented by the Asia Pacific equities markets, and would like to capitalise on the same," Chilwan said. DIB can further excel with the expansion and funding of such beneficial funds which will help to spur the Islamic financial industry in the Asia Pacific region.
Subscribe to:
Posts (Atom)