tag:blogger.com,1999:blog-769969181435416102024-03-14T04:01:11.499+08:00KL Conference on Islamic Finance 2019Date: 17-18 December 2019
venue: Premiera Hotel, Kuala Lumpur - MalaysiaUnknownnoreply@blogger.comBlogger2069125tag:blogger.com,1999:blog-76996918143541610.post-1873845501957367352019-04-19T18:14:00.000+08:002019-10-15T12:05:11.088+08:00Event Summary (KLCIF2019) - KL Conference on Islamic Finance 2019<div class="separator" style="clear: both; text-align: center;">
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<span style="font-family: "georgia" , "times new roman" , serif;"><span class="Apple-style-span" style="font-size: x-large;"><i>KL Conference on</i><span style="color: red;"> </span></span></span><b><span style="color: blue; font-family: "georgia" , "times new roman" , serif; font-size: x-large;">Islamic Finance 2019</span></b><br />
<span class="Apple-style-span" style="font-family: "georgia" , "times new roman" , serif; font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="color: red; font-family: "arial" , sans-serif; font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><br />
</span></span></span></b></span><br />
<span class="Apple-style-span" style="font-family: "trebuchet ms" , sans-serif;"><span class="Apple-style-span" style="font-size: x-large;"><span class="Apple-style-span" style="color: red;"></span></span><span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="color: red; font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;">Date</span></span><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"> <span class="Apple-style-span" style="color: black;">: 17-18 December 2019</span></span></span></span></b></span></span><br />
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue; font-family: "trebuchet ms" , sans-serif;"><span style="color: red; font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;">Venue</span></span><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"> <span class="Apple-style-span" style="color: black;">: Premiera Hotel, Kuala Lumpur - Malaysia</span></span></span></span></b></span><br />
<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue; font-family: "trebuchet ms" , sans-serif;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black;"><br />
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><i><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-family: "trebuchet ms" , sans-serif; font-weight: normal;">“An international gathering of practitioners, scholars and experts to discuss and share their knowledge, expertise and experience on the principles, instruments and issues related to Islamic finance, to be held at the world’s leading Islamic financial centre…Kuala Lumpur.”<o:p></o:p></span></span></i></span></b></span><br />
<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><i><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-family: "trebuchet ms" , sans-serif; font-weight: normal;"><br />
</span></span></i></span></b></span><br />
<span class="Apple-style-span" style="font-size: x-large;"><b><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-family: "trebuchet ms" , sans-serif; font-weight: normal;"><span class="Apple-style-span" style="color: red;">Event site </span>:<span class="Apple-style-span" style="color: blue;"> <a href="http://www.islamic-wealth-management.net/">www.islamic-finance-conference.net</a></span></span></span></b></span><br />
<span class="Apple-style-span" style="font-size: x-large;"><b><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: blue; font-family: "trebuchet ms" , sans-serif;"><br />
</span></span></span></b></span></div>
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<b style="font-size: xx-large; text-align: left;"><span class="Apple-style-span" style="color: blue;"><span style="color: red; font-size: 12pt;"><span class="Apple-style-span" style="font-family: "trebuchet ms" , sans-serif; font-weight: normal;">KEY FOCUS/TOPICS:</span></span></span></b></div>
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Product development and Implementation of Islamic financial products<o:p></o:p></span></span></span></span></b></span></div>
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<b style="font-size: xx-large;"><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Ensuring Shariah compliance in Islamic financial instruments</span></span></span></span></b><br />
<b style="font-size: xx-large;"><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Fintech and Islamic finance</span></span></span></span></b></div>
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Sukuk: development, issues and challenges</span></span></span></span></b></span><br />
<b style="font-size: xx-large;"><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Islamic gold account: a golden opportunity</span></span></span></span></b> </div>
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Islamic mutual funds (unit trusts): factors to consider in making an investment<o:p></o:p></span></span></span></span></b></span><br />
<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- The rise of Islamic wealth management in Islamic finance industry</span></span></span></span></b></span><br />
<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Islamic financial planning: success in both worlds</span></span></span></span></b></span><br />
<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Takaful: innovation and solutions</span></span></span></span></b></span><br />
<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Enterprise risk management for Islamic banks</span></span></span></span></b></span><br />
<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Enterprise risk management for takaful operators</span></span></span></span></b></span><br />
<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Accounting and auditing</span></span></span></span></b></span><br />
<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Human capital development in Islamic finance industry</span></span></span></span></b></span><br />
<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">-</span></span></span></span></b></span><b style="font-size: xx-large;"><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;"> Legal issues and challenges in Islamic finance</span></span></span></span></b><br />
<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Dispute settlement in Islamic finance: issue and solutions</span></span></span></span></b></span><br />
<span style="font-family: "trebuchet ms" , sans-serif;">- </span><b style="font-size: xx-large;"><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">Islamic ethics in financial services industry</span></span></span></span></b><br />
<b style="font-size: xx-large;"><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Sustainable Development Goals and Islamic finance</span></span></span></span></b><br />
<b style="font-size: xx-large;"><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- </span></span></span></span></b><b style="font-size: xx-large;"><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">Corporate governance for Islamic finance industry</span></span></span></span></b><br />
<b style="font-size: xx-large;"><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;"><br /></span></span></span></span></b>
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="color: red; font-size: 12pt;"><span class="Apple-style-span" style="font-family: "trebuchet ms" , sans-serif; font-weight: normal;">SPEAKERS:</span></span></span></b></span></div>
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<span style="font-family: "trebuchet ms" , sans-serif;">Speakers are selected from Islamic banks, takaful operators, academicians, legal practitioners, consultants, regulatory bodies.</span><br />
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<span style="font-family: "trebuchet ms" , sans-serif;">Among the speakers are:</span><br />
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<b style="font-size: xx-large;"><span class="Apple-style-span" style="color: blue;"><span style="color: red; font-size: 12pt;"><span class="Apple-style-span" style="font-family: "trebuchet ms" , sans-serif; font-weight: normal;">WHO SHOULD ATTEND:</span></span></span></b></div>
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<span class="Apple-style-span" style="font-family: "trebuchet ms" , sans-serif;"><span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="color: red; font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"></span></span></span></b></span><span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black;">- Islamic bankers/bankers</span></span></span></span></b></span></span><br />
<span class="Apple-style-span" style="font-family: "trebuchet ms" , sans-serif;"><span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black;">- Takaful/insurance operators</span></span></span></span></b></span></span><br />
<span class="Apple-style-span" style="font-family: "trebuchet ms" , sans-serif;"><span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black;">- Regulators</span></span></span></span></b></span></span><br />
<span class="Apple-style-span" style="font-family: "trebuchet ms" , sans-serif;"><span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black;">- Head of governmental departments</span></span></span></span></b></span></span><br />
<span class="Apple-style-span" style="font-family: "trebuchet ms" , sans-serif;"><span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black;">- Financial planners/w</span></span></span></span></b></span></span><b style="font-size: xx-large;"><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">ealth advisors</span></span></span></span></b></div>
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Financial consultants<o:p></o:p></span></span></span></span></b></span></div>
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<b style="font-size: xx-large;"><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Legal practitioners (lawyers)</span></span></span></span></b></div>
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Academicians (lecturers)<o:p></o:p></span></span></span></span></b></span></div>
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Entrepreneurs (businessmen/importers/exporters etc)<o:p></o:p></span></span></span></span></b></span></div>
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">- Other professionals </span></span></span></span></b></span><br />
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="color: red; font-size: 12pt;"><span class="Apple-style-span" style="font-family: "trebuchet ms" , sans-serif; font-weight: normal;">REGISTRATION:</span></span></span></b></span></div>
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue; font-family: "trebuchet ms" , sans-serif;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black;"><b>Early Bird Fee</b>:</span></span></span><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black;"> <o:p></o:p></span></span></span></span></b></span></div>
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">Registration with payment by 19 November 2019<o:p></o:p></span></span></span></span></b></span></div>
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">Malaysian : RM1,700<o:p></o:p></span></span></span></span></b></span></div>
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">International : USD700</span></span></span></span></b></span><br />
<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;"><br />
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue; font-family: "trebuchet ms" , sans-serif;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black;"><b>Normal Fee</b>:</span></span></span><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black;"><o:p></o:p></span></span></span></span></b></span></div>
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">Registration with payment after 19 November </span></span></span></span></b></span><b style="font-size: xx-large;"><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">2019</span></span></span></span></b></div>
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">Malaysian : RM2,000<o:p></o:p></span></span></span></span></b></span></div>
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">International : USD800<o:p></o:p></span></span></span></span></b></span></div>
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<span class="Apple-style-span" style="font-size: x-large;"><b><span class="Apple-style-span" style="color: blue;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-weight: normal;"><span class="Apple-style-span" style="color: black; font-family: "trebuchet ms" , sans-serif;">Special fee for Malaysian university lecturers : RM1,200 (group discount not applicable)<o:p></o:p></span></span></span></span></b></span></div>
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Fee is inclusive of lunch, refreshments and seminar package only.</span></span></span></span></b></span><br />
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<b style="font-size: xx-large; text-align: -webkit-auto;"><span style="font-size: 12pt;"><span class="Apple-style-span" style="font-family: "trebuchet ms" , sans-serif; font-weight: normal;"><span class="Apple-style-span" style="color: red;">Event site </span>:<span class="Apple-style-span" style="color: blue;"> www.islamic-finance-conference.blogspot.my</span></span></span></b></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-39410558897043186232016-08-17T20:34:00.001+08:002016-08-17T20:34:12.174+08:00Malaysia: Ekovest to issue RM3.64b Sukuk for expressway<br />
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<span style="background-color: white; font-family: Georgia, "Times New Roman", serif;">KUALA LUMPUR: Ekovest Bhd is set to issue the largest ringgit-denominated Sukuk wakalah of RM3.64bil to fund its Setiawangsa-Pantai Expressway (SPE) project.</span></div>
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The toll road project,formerly known as the DUKE phase 3, will cost RM3.9bil with a 53 year concession period with the government.</div>
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"The issuance of Sukuk wakalah for the SPE will be among the largest issuance for a new highway construction project as well as among the highest rates AA-sukuk so far in 2016.</div>
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<span style="font-family: Georgia, Times New Roman, serif;">"The project will also be the first public private partnership project to use the government's reimbursement interest assistance (RIA) as part of the financing structure," said Minister of Finance II, Datuk Johari Abdul Ghani at the signing ceremony of the Sukuk wakalah for the SPE project.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span id="innity-in-post" style="-webkit-appearance: none; background-color: white; border-radius: 0px; border: 0px; margin: 0px; padding: 0px;"></span><span style="background-color: white;">Part of the funding of the SPE project would come from a RM560mil interest free government RIA and RM850mil equity by Ekovest. </span></span></div>
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<span style="font-family: Georgia, "Times New Roman", serif; line-height: 1.353em;">"Securing the financing for the SPE was the last piece of the puzzle for project. This would be the largest project that Ekovest group will undertake to date," said Ekovest managing director Datuk Seri KC Lim on Tuesday.</span></div>
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<span style="line-height: 1.353em;">AmInvestment Bank Bhd is the principal advisor and lead arranger for the sukuk. The joint lead managers and joint bookrunners are AmInvestment Bank Bhd, CIMB Investment Bank Bhd, Maybank Investment Bank Bhd and RHB Investment Bank Bhd.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white;"></span><span style="background-color: white;"></span></span><span style="font-family: Georgia, Times New Roman, serif;"><span style="line-height: 1.353em;"></span></span></span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">(The Star Online / 16 August 2016)</span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-35455721361371487432016-08-17T20:31:00.001+08:002016-08-17T20:31:40.134+08:00Maldives spearheads growth of Islamic finance in South Asia<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;">Many identify the Maldives as an idyllic tropical island holiday destination, but little is known about the fact that the country is making plenty of waves in developing its Islamic finance industry towards an investment hub for South Asia and centre for the halal industry in the region. </span></span><br />
<span style="font-family: Georgia, Times New Roman, serif;"><br style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;" /><span style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;">As an Islamic country – the 1997 Constitution of the Maldives designates Islam as the official state religion – the Maldives was quick in building up an Islamic finance industry at a fast pace with the long-term objective to become an offshore finance centre for Shariah-compliant investments, mainly in order to diversify its industry away from dominating tourism. To that end, President Yameen Abdul Gayyoom’s government has developed a roadmap to expand Islamic financial services throughout the archipelago and base it on official regulations by the Maldives Monetary Authority. </span></span><br />
<span style="font-family: Georgia, Times New Roman, serif;"><br style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;" /><span style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;">According to Aishath Muneeza, Deputy Minister in the Maldives Ministry of Finance and Treasury and chairwoman of the Shariah Advisory Committee of the Capital Market Development Authority Maldives, the share of Shariah-compliant financial assets were already at around 5% of total assets by the end of last year, and increasing.</span></span><br />
<span style="font-family: Georgia, Times New Roman, serif;"><br style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;" /><span style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;">“The growth of Islamic finance is happening at a very fast pace,” she said, adding that “I hope that we will be able to create an Islamic finance centre and act as the leader for Islamic finance and the halal industry in the South Asia region.”</span></span><br />
<span style="font-family: Georgia, Times New Roman, serif;"><br style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;" /><span style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;">The advent of Islamic finance in the Maldives dates back to 2003 when the country saw the establishment of its first Islamic finance institution, Amana Takaful Maldives, a fully-fledged Islamic insurance company. But due to little knowledge among the population about the characteristics of Islamic finance at that point of time, it took until 2011 for the first Islamic bank to open, Maldives Islamic Bank, with registered capital of $12mn and the assistance of Saudi-based Islamic Corp for the Development of the Private Sector, or ICD, a unit of the Islamic Development Bank.</span></span><br />
<span style="font-family: Georgia, Times New Roman, serif;"><br style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;" /><span style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;">But from then onwards, the growth of Islamic finance in the country happened at an impressive speed as awareness among the population about Shariah-compliant banking and investment grew and banks and other financial institutions widened their product offerings and services for both retail and corporate customers.</span></span><br />
<span style="font-family: Georgia, Times New Roman, serif;"><br style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;" /><span style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;">In 2012, the first Islamic window of a non-banking financial institution, HDFC Amna, a unit of the Maldivian housing finance Corp HDFC, was introduced to offer musharakah-based home financing instruments. </span></span><br />
<span style="font-family: Georgia, Times New Roman, serif;"><br style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;" /><span style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;">Other financial institutions followed, namely Alia Investment, a private firm offering financing based on ijarah contracts. Later on, an Islamic finance-based Haj pilgrim fund, Maldives Haj Corp, was launched, and the largest bank and the largest insurer of the country, Bank of Maldives and Allied Insurance Maldives, respectively, opened Islamic finance windows.</span></span><br />
<span style="font-family: Georgia, Times New Roman, serif;"><br style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;" /><span style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;">To cope with demand for Islamic finance experts, the government asked the International Centre for Education in Islamic Finance, or INCEIF, to start offering Islamic finance courses in the Maldives to expand skills of conventional banking staff, and later on launched the Maldives Centre for Islamic Finance, designed to strengthen the Maldives’ footprint as a hub for Islamic finance and the halal industry in South Asia. Furthermore, halal certification was introduced in 2014 and a halal logo for aquaculture and fishery products created.</span></span><br />
<span style="font-family: Georgia, Times New Roman, serif;"><br style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;" /><span style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;">Last year, the Ministry of Economic Development started offering Islamic microfinancing through the Bank of Maldives, and earlier in 2016, the government launched Hazana Maldives, a special-purpose vehicle for the further development of Islamic finance. It also created a Shariah advisory board and laid the regulatory framework for sukuk investment, an important move in the economic diversification drive of the tourism-dependent island nation as Islamic bonds normally entice larger funds.</span></span><br />
<span style="font-family: Georgia, Times New Roman, serif;"><br style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;" /><span style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;">In a first focus, the Maldivian government plans to tap Islamic finance from India via debt sales and deposits. India has a huge Muslim population of 166mn, but so far no Islamic finance industry because of opposition from Hindu lawmakers. Incentives for Indian Muslims to use Islamic finance vehicles in the Maldives instead of Pakistan, Bangladesh or Sri Lanka are that the industry – although having a solid regulation framework – is not as much regulated as those of its bigger rivals in the region and thus is more likely to attract bigger players in the industry.</span></span><br />
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; box-sizing: border-box; line-height: 19.5px; text-align: justify;">(Gulf Times / 16 August 2016)</span></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-34756280453288283032016-08-17T20:28:00.000+08:002016-08-17T20:28:03.184+08:00Pak-Qatar Family Takaful opens new branch<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 26px;">Karachi—Pak-Qatar Family Takaful Limited (PQFTL) has inaugurated a new branch in Gulshan-e-Iqbal area of Karachi. This new branch will create great convenience and provide a wide range of Takaful services to a vast number of consumers, living in Gulshan-e-Iqbal and surrounding areas. The inauguration ceremony was graced by senior management officials and prominent professionals.</span></span></div>
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<span style="background-color: white; line-height: 26px;">The Zonal Head of TDT (Individual) Haq Nawaz said that the opening of this new branch is a significant milestone in the progressive journey of the company, as it reflects the company’s customer-centric approach, by enhancing the outreach and ‘accessibility’ for our valuable customers. The opportunity to continue the company’s high quality customer service is very exciting for me, as we continue to expand to new locations all over the country.</span></div>
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<span style="background-color: white; line-height: 26px;">Kamran Saleem CFO of PQFTL, while congratulating the team for this successful endeavour said, “With these new branches, we’re not simply expanding our business, but making a commitment towards promoting Takaful among the masses. Our primary aim is to transform the financial industry in Pakistan by offering our highly competitive products and services, while realigning it with Islamic principles.”</span></div>
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<span style="background-color: white; line-height: 26px;">The Country-Head of Sales and Deputy Chief Executive Officer of PQFTL Menhas expressed his delight about this wonderful team-effort and said that the key to successfully serving a community and higher cultural values, along with the company’s brand, is to find and nurture the most talented, like-minded Takaful professionals in the region. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 26px;">The team has shown remarkable diligence for maintaining the company’s stature as a pioneer and a leading innovator of Takaful in Pakistan. Nasir Ali Syed CEO, Waqas Ahmad Chief Operating Officer, Saqib Zeeshan Head of TDT Corporate and several other senior executives were also present during the grand inaugural ceremony.</span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 26px;">(Pakistan Observer / 12 August 2016)</span></span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-1980044479460807362016-08-14T08:49:00.000+08:002016-08-14T08:49:16.027+08:00Under the Radar: Sukuk bonds boom in West Africa<div style="background: rgb(255, 255, 255); border: 0px; line-height: 22.5px; margin-bottom: 15px; outline: 0px; padding: 0px; text-align: justify; vertical-align: top;">
<span style="background-attachment: initial; background-clip: initial; background-color: transparent; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: top;"><span style="font-family: Georgia, Times New Roman, serif;">Long under-serviced by Islamic finance, sub-Saharan Africa, and West Africa in particular is seeing a boom in sukuk bonds. West Africa is set to benefit from more intra-regional investment and increased interest from foreign Islamic investors.</span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The growth of Islamic finance in recent years has seen a rapid increase in the value of ‘Islamic Economy’ – with the global shari’a-approved financial sector projected to be worth $3 trillion by 2018. While Middle Eastern and Asian countries are leading this trend, one region—Sub-Saharan Africa—remains under-serviced.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif; font-weight: normal;">The growth of sukuk in Africa</span></h4>
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<span style="font-family: Georgia, Times New Roman, serif;">Indeed, with over 250 million Muslims, the region is home to a quarter of world’s Muslim population, yet commands a disproportionately small fraction of Islamic financial activity. However, this is changing as sub-Saharan Africa—West Africa in particular—is seeing a marked uptick in Islamic finance, especially in the issuing of Islamic bonds, or <span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: top;">sukuk</span>.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Increased GDP growth rates in West Africa have led to higher demand, as nations in this region seek to diversify their lending and borrowing options. Sukuk is increasingly being used to finance development projects, as well as to increase domestic capital reserves and financial inclusion; thus aiding local small and medium-sized businesses.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Furthermore, since speculation is prohibited, and all financial activity must concern real economic activity (with all loans backed by concrete assets), sukuk in theory offers greater stability. Sukuk’s asset-backed investments and risk sharing can offer African nations more forgiving terms and insulate them from the volatility of the wider global economy.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif; font-weight: normal;">Sukuk issuance boom in 2016</span></h4>
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<span style="font-family: Georgia, Times New Roman, serif;">Global sukuk issuance decreased from $101.8 billion in 2014, to $66 billion in 2015. While global uncertainty played a part, the main reason was the cessation of short-term sukuk issuance by Bank Malaysia Negara, the largest issuer, with 50% global market share. This decrease was also due to saturated or unstable traditional markets (Syria, Iraq, Turkey, Libya). Despite these concerns, forecasts for 2016 see an increase to $70 billion, with West Africa playing a significant role.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Significant sukuk use is only now beginning in sub-Saharan Africa. While states such as Sudan and Gambia have issued sukuk in the past, it was in 2014 that Senegal authorized the region’s largest sukuk issuance ($200 million). 2016 has seen a host of new sukuk issuances in West Africa. On August 10th, Togo’s initial CFA 150 billion ($263 million) sukuk offering closed. This comes after Senegal launched its second $263 million round at the end of June.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The trend is likely to continue. Looking ahead, Côte d’Ivoire is planning the second phase of its CFA 300 billion ($526 million) sukuk program. Similarly, Nigeria has convened multi-agency meetings to organize its maiden sovereign sukuk issuance, expected by the end of the year. Furthermore, Kenya and South Africa are planning issuances for 2017.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif; font-weight: normal;">Islamic investment in West Africa</span></h4>
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<span style="font-family: Georgia, Times New Roman, serif;">As a result of sukuk’s unique traits, the IMF is promoting the regional adoption and inclusion of sukuk into African government debt strategies. The region’s Muslim population and development efforts are attracting Islamic financiers from further afield.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Interestingly, in 2014, South Africa became only the third non-Muslim country to issue sukuk; issuing Africa’s first dollar denominated sukuk ($500 million). Pretoria is targeting sukuk’s growing regional influence and is attempting to tap into investment markets in the Middle East and Asia. Specifically, South Africa’s issuance in U.S. dollars was aimed at enticing foreign investors, and is part of its attempt to position itself as a hub for the import of halal products and financial services.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Alongside newcomers to the sector, established players such as Saudi Arabia’s Islamic Corporation for Development of the Private Sector (ICD) are eyeing West Africa as a profitable frontier market. ICD is seeking to expand its business in Africa and has positioned itself as a facilitator of sukuk deals in the region: ICD was the lead arranger for both Togo and Côte d’Ivoire’s sukuk launches.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">By 2017 West Africa could be the latest arena for Saudi-Iranian competition, as Iran restarts its sukuk industry following the end of sanctions. Iran has an advantage in the sukuk market in that its entire financial sector is sharia compliant. This is due to the Law for Usury Free Banking Operations, passed in 1983, which in turn makes Iranian Islamic finance compliance a legal requirement, rather than regulatory issue.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">That being said, Iran is currently at a severe disadvantage versus Saudi Arabia, in that Iranian law for bids sukuk trading in foreign currencies. This is a major problem if Iran wants to compete in the international sukuk market, which is dominated by dollar transactions. This requirement has effectively shut Iran out of global markets, and its domestic demand is insufficient to raise enough capital for Tehran’s development goals.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Iran’s refusal to use foreign currencies is a two-sided issue with regards to West Africa. Firstly, as noted above, many West African issuers are issuing bonds in West African francs (CFA). This is because issuers such as Senegal are seeking to gain regional market share by promoting intra-regional trading. This is aided by the fact that the CFA is used by eight West African countries, and is guaranteed by the French treasury. The CFA also has a fixed exchange rate pegged at 655.957 CFA to the Euro.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Consequently, Iran’s refusal locks it out of a sizeable regional bloc of more than 105 million potential customers. However, industry experts are optimistic that Iran will change its stance on foreign currency denominated bond trading. Even a partial repeal of the law (say allowing some currencies such as the CFA, but not the dollar), would allow Iran to access the West African market. The widespread use of CFA makes this easier, which could see Iran becoming key partner in promoting CFA issued bonds to circumvent Iran’s own reluctance towards (and Saudi Arabia’s reliance on) dollar denominated bonds in the region.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Increased attention from international investors and growing domestic demand place West Africa in a favourable position heading into 2017. The region is likely to benefit from increased intra-regional investment, as well as better deals as competition between GCC, Iranian and Asian Islamic investors heats up.</span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: top;"><span style="font-family: Georgia, Times New Roman, serif;">Under the Radar uncovers political risk events around the world overlooked by mainstream media. By detecting hidden risks, we keep you ahead of the pack and ready for new opportunities.</span></span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-60436241269935696082016-08-14T08:44:00.000+08:002016-08-14T08:44:38.110+08:00Malaysia's $25 bln pension offshoot set to boost Islamic finance <div style="min-height: 1px; padding: 0px; text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">KUALA LUMPUR, Aug 12 (Reuters) - Malaysia's Islamic finance market is set for a much-needed boost when the country's largest pension fund launches a 100 billion ringgit ($24.9 billion) Islamic fund in January, offering a potential boon for asset managers.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The Employees Provident Fund's (EPF) sharia-compliant pension plan opened to acclaim this week with Malaysians lining outside its offices to invest.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The allocation represents about 15 percent of the EPF's total investments of 681.7 billion ringgit as of March.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Having a standalone pension fund of that size is a rarity in Islamic finance, even for majority-Muslim Malaysia, and it is expected to draw interest from foreign asset management firms with homegrown players also upbeat about the prospects.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">"The benefits are multifold, to us and to the industry," said Mohamad Safri Shahul Hamid, CIMB Islamic senior managing director and deputy chief executive officer.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">"As EPF allocates more into the sharia fund, surely they would want to progressively deploy more of their funds into sharia-compliant investments."</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">This would include the market for Islamic bonds, or sukuk, with demand gradually increasing as the EPF hires external firms to manage its bespoke funds, Safri said.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Ancillary businesses such as Islamic securities services would also benefit, as well as Islamic money markets, he said.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The EPF plans to allocate an additional 20 billion to 30 billion ringgit in 2018 to its Islamic fund, depending on the availability of sharia-compliant investments.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The new fund would attract foreign competitors into Malaysia but also widen the opportunities for incumbents, said Mohammad Hasif Murad, investment manager at Aberdeen Islamic Asset Management Sdn Bhd.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">"This announcement might be a good value proposition for foreign players to jump on the bandwagon. We expect EPF to continually assess the response from the market and gradually increase the allocation for Islamic in the medium term."</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Islamic fund managers screen their portfolios according to religious guidelines such as bans on alcohol and gambling, similar to socially responsible funds in Western countries.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Close to a fifth of total assets under management in Malaysia are now managed this way.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">As of December, fund management companies in Malaysia held 132.4 billion ringgit worth of Islamic assets, up 19.7 percent from a year earlier, according to Securities Commission data.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">While the benefits of a standalone Islamic retirement fund trickle down to fund managers, the outlook for Malaysia's sukuk market is also improving.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">A healthy supply of sukuk is expected for the rest of 2016, on track to exceed the $34.5 billion of sukuk issued in Malaysia last year, CIMB's Safri said.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">"We expect an active second half, in terms of total size of the corporate sukuk market, which will grow to $40 billion at the minimum," he said.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Growth in the fixed income market would outpace equities, as investors seek more stable returns, he added.</span></div>
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(Mail Online Wires / 12 August 2016)</div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-29216470454804853042016-08-12T08:25:00.000+08:002016-08-12T08:25:00.189+08:00RAM Ratings reaffirms ratings of Axis REIT Sukuk’s MYR 110.0 million first Sukuk<div style="background: rgb(255, 255, 255); border: 0px; line-height: 20px; outline: 0px; padding: 10px 0px; text-align: justify; vertical-align: baseline;">
<span style="font-family: Georgia, Times New Roman, serif;">With the revision of RAM’s stressed refinancing rate to 8.5 per cent (from 10.0 per cent), the stressed debt-service coverage ratios (DSCRs) have increased substantially. Nevertheless, the ratings remain constrained by the loan-to-value (LTV) ratios, which are still consistent with our benchmarks for the relevant ratings.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The reaffirmation is premised on the overall stable net property income (NPI) of the portfolio, supported by the underlying properties’ strategic locations, longer-than-average lease maturities and healthy demand for the portfolio’s assets due to the shortage of comparable properties. ARSB is a special-purpose vehicle set up by Axis REIT as a funding conduit for its perpetual Islamic MTN Programme of up to MYR 3.0 billion (the Sukuk Programme). The First Sukuk – the first issuance under the Sukuk Programme – is backed by a portfolio of three industrial and industrial-office mixed properties and one retail property, i.e. Axis Steel Centre (ASC), Axis Vista (AV), Bukit Raja Distribution Centre and Tesco Bukit Indah.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The portfolio NPI of MYR 20.5 million in 2015 remained in line with our assumed NPI of MYR 20.0 million. Despite the present void at AV due to the recent departure of one of the portfolio’s six tenants (which accounted for 3.5 per cent of the portfolio’s NLA and 5.3 per cent of its revenue in 2015), we expect the portfolio’s stabilised annual NPI to remain in line with our initial assumptions. The average rental rates of the assets are still aligned with market rates while the portfolio’s adjusted capital value shows a discount of 31 per cent to its market value. Correspondingly, the cumulative LTV ratios of 43.7 per cent, 46.0 per cent, 48.3 per cent and 50.6 per cent coupled with the revised DSCRs of 2.5 times, 2.4 times, 2.2 times and 2.1 times (from 2.1, 2.0, 1.9 and 1.8 times) correspond to the respective AAA, AA1, AA2 and AA3 ratings of the Class A to Class D Sukuk.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">We note overdue rentals of up to three and five months from two tenants in 2015 and 1Q 2016. However, these issues have been largely resolved – one tenant has caught up on its payments while the security deposit and auction proceeds have been used to offset the overdue rentals from the other tenant at AV. A replacement is currently being sought for the vacant space at AV. Our sensitivity analysis incorporates these factors as the basis for our reaffirmation. We have not accorded any benefit to the new lease agreement pertaining to ASC, which is currently in an advanced stage of negotiations.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The ratings are, however, moderated by limited asset diversity and significant tenant-concentration risk, as the portfolio only contains industrial-related properties, and three of the four Secured Properties are single-tenanted. These factors expose the transaction to the cyclicality of the industrial property segment and the risk of significant income loss should any of the tenants’ relocation result in protracted vacancies. Nonetheless, the fixed long-term tenancies are expected to provide cashflow visibility over the medium term. In fiscal 2015, the collective NPI of the two Secured Properties with fixed long-term tenancies amounted to almost 2.50 times of the transaction's profit obligations, and contributed close to 60 per cent of the portfolio’s rental revenue.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The ratings are also underpinned by structural features that enhance the liquidity and security of the transactions, e.g. minimum finance service coverage ratio (FSCR) requirements at the levels of both the Issuer and the sponsor, as well as other trigger mechanisms to accelerate recovery via proceeds from the disposal of the underlying portfolio. We note that the respective FSCRs of the Issuer vis-a-vis the First Sukuk and Axis REIT remained healthy at 4.04 times and 3.37 times (after adjusting for deposits related to acquisitions) as at end-2015.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">(C P I Financial / 12 August 2016)</span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-9577552090996286802016-08-12T08:22:00.001+08:002016-08-12T08:22:32.641+08:00Kenya: Lenders want new law for Islamic financing<br />
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<span style="background-color: white; font-family: Georgia, "Times New Roman", serif; line-height: 18px;">Experts want Central Bank of Kenya to set separate regulations for Islamic banks to avoid operation and auditing challenges.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 18px;">Prof Abdullatif Essajee, currently the CEO and Islamic Finance lecturer at Vision Institute of Professionals, has said Islamic banking has key differences from conventional banks and the two cannot be effectively regulated using the same framework.</span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 18px;"> Former Managing Director at First Community Bank (FCB) and now a director at the same bank, Essajee said that most of the time, the external auditors differ with Islamic banks on presentation of several transactions in financial books.</span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 18px;"> “We have reporting standards for Islamic banks but because the regime does not allow that, we have not fully embraced the substance of Islamic banking. </span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 18px;">The Islamic standards cannot change the fundamentals of reporting but could have enhanced the quality of reporting,” said Essajee. For instance, Islamic banks, where charging interest is prohibited, avoid terminologies such as interest income and instead go for financing income yet in their books, they are forced to use the term. </span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 18px;">The matter has been complicated by absence of CBK Sharia Supervisory Board that is supposed to keep in check the activities of Islamic banks. Essajee pointed out countries like Malaysia, where each bank has its own Sharia-compliant board that is answerable to a similar board by central bank.</span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 18px;">In Kenya, despite the first Islamic product coming to the market a decade ago, the audit practice leans to the practices of conventional banks. </span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 18px;">According to Essajee, most of the high non-performing loans displayed on the financial statements of banks offering more Sharia-based loans, are due to differences in the practice of Islamic products and conventional products. </span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 18px;">“For example, in conventional banking, when financing a construction, banks can demand for payment even before construction is up. That cannot happen in Islamic banks yet when auditors come, they say ‘You issued a facility at this time and it is now almost 90 days and there is no payment so we need to downgrade it,” he explained. </span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 18px;">During his helm at FCB, he added, not so many auditors who came for the auditing process could succeed in borrowing from both conventional and Islamic practices. Under Islamic banking law, most lending is directed to a specific project and is premised on utmost good faith.</span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 18px;"> Therefore, where the borrower delays paying yet he invested in a project he or she pre-agreed with the bank and is yet to be paid, Islamic banking laws cannot move to penalise the borrower.</span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 18px;"> “It is not a matter of being soft, it is being ethical. If I (Islamic bank) gave you money to build road and the payer is another person and you haven’t been paid, how do I come to touch your property yet we need to work together to get paid?”</span></span></div>
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<span style="background-color: white; font-family: Georgia, "Times New Roman", serif; line-height: 18px;"> he asked. This may shed light on the increased gross non-performing loans (NPLs) in some lenders that have embraced Islamic products. Half-year results released by NBK, which is one of the lenders with Islamic products, show that gross NPLs moved from Sh16.9 billion to Sh27.3 billion in just three months.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="font-family: Georgia, Times New Roman, serif;"></span><span style="font-family: Georgia, Times New Roman, serif;"></span></span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">(Standard Digital / 12 August 2016)</span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-36802814903843929412016-08-11T08:14:00.000+08:002016-08-11T08:14:03.840+08:00Malaysia: MARC affirms rating on Kimanis Power RM1.16b Sukuk<br />
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<span style="background-color: white; font-family: Georgia, "Times New Roman", serif;">KUALA LUMPUR: Malaysian Rating Corporation Bhd (MARC) has affirmed its AA-IS rating on Kimanis Power Sdn Bhd's (KPSB) RM1.16bil Sukuk programme with a stable outlook. </span></div>
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It said on Wednesday the affirmed rating was backed by the favourable terms of KPSB’s 21-year power purchase agreement (PPA) with the offtaker, Sabah Electricity Sdn Bhd (SESB) under which demand risk is transferred to the offtaker. </div>
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SESB is 83% owned by power giant Tenaga Nasional Bhd (TNB), which has a senior unsecured debt rating of AAA/Stable. </div>
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“The affirmed rating incorporates Kimanis power plant’s commendable operating performance in meeting PPA requirements in relation to the heat rate and unscheduled outage limit. </div>
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<span style="background-color: white; font-family: Georgia, "Times New Roman", serif;">“The rating also considers Petronas Gas Bhd’s 60% ownership of and substantial involvement in KPSB, the use of standard and well-proven technology and the gas sale agreement (GSA) with Petronas Gas’ parent Petroliam Nasional Bhd (Petronas) until June 2029 which mitigates fuel supply risk. </span></div>
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KPSB owns the 285-megawatt (MW) combined-cycle gas-fired power plant at Kimanis Bay, Sabah. </div>
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Kimanis O&M Sdn Bhd handles the operations and maintenance of the Kimanis power plant. General Electric Company (GE) is responsible for maintaining the gas turbines under a long-term contractual service agreement.</div>
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MARC said the Kimanis power plant achieved a lower load factor than the initial projection of 90% since achieving its full commercial operations date (COD) in November 2014 due to the excess capacity on the west coast of Sabah. </div>
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Hence, KPSB had revised its load factor assumptions to 60% for the period between 2015 and 2017 in the revised budget. </div>
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In 2015, the plant’s average load factor was 64.7% (2014: 51.2%). Its energy payment (EP) receipts of RM125.9mil were 16.4% above the budgeted amount in 2015. </div>
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KPSB’s actual capacity payment (CP) of RM201.6mil was in line with the budgeted amount following the resolution of gas supply issues in early 2015. </div>
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The plant’s average availability stood at 95.4% during the period under review. MARC noted the plant’s average actual heat rates were within the PPA heat rate requirement and KPSB has achieved full pass-through of fuel costs in its first full year of operations.</div>
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KPSB recorded higher electricity sales of 1,519.6 gigawatt hours (GWh) in 2015 (2014: 967.0 GWh), reflecting the full commercial operations of its three generating blocks since November 2014. </div>
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Operating profit margin was 26.8% on the back of electricity sales of RM200.1mil and operation cost of RM166.8mil. Fuel cost per unit generated improved to 5.94 sen per kilowatt-hour (kWh) (2014: 9.82 sen/kWh) due to the lower usage of distillates. </div>
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Net cash flow improved to RM40.2mil (2014: deficit of RM299mil) as the plant incurred lower capital expenditure of RM2mil (2014: RM318.7mil). </div>
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Cash balance stood at RM214.3mil in 2015 while KPSB’s leverage ratio improved to 1.27 times following the repayment of its Series 2, Tranche 1 sukuk amounting to RM35mil in December 2015. </div>
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“Going forward, MARC expects KPSB’s leverage ratio to decrease progressively with the accumulation of retained earnings and paring down of the outstanding rated sukuk.</div>
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“Under Kimanis’ updated financial projections, KPSB’s debt servicing capacity remains adequate with minimum and average finance service coverage ratios (FSCR) of 2.24 times and 3.35 times respectively during the Sukuk tenure. </div>
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“The projections are premised on the plant load factor of 60% which will progressively step up to 90% beginning in 2020,” it said.</div>
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MARC’s sensitivity results show that KPSB’s cash flows are sensitive to reductions in CP and higher-than-projected O&M costs. </div>
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KPSB can withstand an increase in O&M costs by 73% before breaching its FSCR covenant in 2026. </div>
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“MARC wishes to highlight that the cash balance brought forward from 2015 amounting to RM214.3mil is sufficient to meet the financial obligations in 2016 totalling RM154.0mil.</div>
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“The stable rating outlook on the sukuk programme reflects MARC’s expectations that the power plant’s cash flow generation will be in line with projections. </div>
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“Conversely, the rating would come under pressure if the plant’s operations underperform significantly, leading to a weakening of KPSB’s liquidity position, and/or if the offtaker’s credit profile deteriorates,” said MARC.</div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white;">(The Star Online / 10 August 2016)</span></span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-26575054523826301742016-08-11T08:10:00.000+08:002016-08-11T08:10:00.327+08:00Islamic finance ideal for agricultural, micro and rural financing<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;"><span class="intro-text" itemprop="description" style="background-color: white; box-sizing: border-box; display: inline-block; font-stretch: normal; margin: 10px 0px;">LAHORE, Aug. 10 (MNA) – Islamic Finance provides an ideal mechanism to facilitate agricultural, irrigation, livestock, micro and rural financing products to boost the green economy.</span><span style="background-color: white; line-height: 20px;"></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Muhammad Zubair Mughal, the Chief Executive Officer, Al-Huda Center of Islamic Banking and Economics (CIBE) addressed the international conference Best Practices in Rural and Agricultural Finance jointly organized by African Rural and Agricultural Credit Association (AFRACA) in partnership with the Rwanda Development Bank (BRD), the Ministry of Agriculture, and IFAD in Kigali, the capital of Rwanda last week and was attended more than 300 delegates of 40 countries: “It not only provides a sustainable solution but creates the positive economic impact in lives of the farmers and rural communities,” said Mr. Mughal.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Mughal stated that the impact of Islamic financial products was much higher than any other financial products due to its uniqueness of asset-based financing and other features, features which is averse to diversion of cash fund for other purposes; “Islamic financial products can be utilized in many fields for the development of agricultural, rural and micro financing in buying of seed, fertilizer, harvesting and planting equipment, agricultural inputs, tractor, pesticides, farming goods, solar tube-wells, etc., while <em style="box-sizing: border-box;">Salam</em> is ideal product for agricultural financing, through which a farmer can fulfill all the financial needs for whole crop circle, e.g. liquidity, seed, pesticide, fertilizer, harvesting, irrigation, and market linkages,” said he.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">“<em style="box-sizing: border-box;">Istisna</em> can be used for small manufacturing business, dairy or agricultural production, construction of warehouses and cold storages, rural entrepreneur development, while Ijara is good for leasing of tractors, agricultural equipment, threshers, tube wells, small production unit lease, sugarcane planter, rice planter, harvesting vehicles, etc. Meanwhile, farmer can utilize <em style="box-sizing: border-box;">musharaka</em>, <em style="box-sizing: border-box;">mudaraba</em>and diminishing <em style="box-sizing: border-box;">musharaka</em> for rural housing, forest development, agricultural inputs, farming, sprinkler/drip/solar pumps, tube wells, microenterprise and SME setup, Agricultural Joint venture projects, Dairy and livestock development, etc.,” he detailed.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">“The Islamic finance has specialized financial solutions for each segment of rural poverty, e.g. for extreme poor; <em style="box-sizing: border-box;">zakat, sadqa,</em> and<em style="box-sizing: border-box;"> fitr</em> are available as grant-based financial product, for poor or upper lower class. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">“Irrigation financing is a big challenge for the development of agriculture, and we can observe that only few banks and financial institutions have specialized products to cater the financial needs for irrigation financing; but we can understand that Islamic finance again as a step forward to address this issue,” he told the conference.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">he concluded that Islamic Financial products were ideal for financial inclusion for those segments of society who are averse to interest-based financial products due to religious reasons; “we have to promote Islamic financial products as system, which can be benefited by Muslim and non-Muslim equally but for Muslim, there is an extra benefit that it is according to their religious believes but for Non-Muslims, it is an ideal solution of Banking, Finance and Business for prosperity and development,” he added.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Al-Huda Center of Islamic Banking and Islamic Economics (CIBE) is a well-recognized name in Islamic banking and finance industry for research, advisory and capacity building over 11 years. The prime goal has always been to adhere to the commitments and provide state-of-the-art advisory consultancy and educational services through various well-recognized modes vis-à-vis Islamic financial product development, sharia advisory, trainings workshops, and Islamic microfinance and <em style="box-sizing: border-box;">takaful</em> consultancies, etc.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">(Mehr News Agency / 10 August 2016)</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-29128808477400417322016-08-10T08:20:00.001+08:002016-08-10T08:20:30.741+08:00Ivory Coast returns to sovereign sukuk market, after Togo debut<span style="font-family: "georgia" , "times new roman" , serif;"><br /></span>
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<span style="background-color: white; font-family: "georgia" , "times new roman" , serif; line-height: 18px;">Ivory Coast plans to complete a sale of 150 billion CFA francs ($263 million) worth of Islamic bonds later this month, the transaction's lead arranger said on Tuesday, following Togo's debut sale of sovereign sukuk launched last month.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white; line-height: 18px;">The two West African nations join Senegal in tapping the market for sukuk, helping expand the use of Islamic financing options outside of the industry's core centres in the Middle East and Southeast Asia. </span></span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white; line-height: 18px;">The Ivory Coast will sell the 7-year sukuk using a lease-based contract known as ijara, with the subscription period closing on Aug. 31, according to the Saudi-based Islamic Corporation for the Development of the Private Sector (ICD). </span></span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white; line-height: 18px;">This would represent the second phase of a 300 billion CFA franc sukuk programme set up last year by the world's top cocoa producer and French-speaking West Africa's economic powerhouse. Togo plans to complete the sale of its sukuk later this week, aiming to raise 150 billion CFA franc with a 10-year maturity and a 6.5 percent yield. </span></span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white; line-height: 18px;">The ICD is the lead arranger for both the Togo and Ivory Coast sukuk. These back-to-back deals could boost the ICD's efforts to expand its activities across Africa, where the development of Islamic finance has lagged despite being home to a quarter of the world's Muslims. Nigeria and Kenya are also planning to issue sovereign sukuk of their own, in part to help fund large infrastructure needs, although the timing for such deals has yet to be determined.</span></span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">(Standard Digital / 09 August 2016)</span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-79736621787295726832016-08-04T08:34:00.000+08:002016-08-04T08:34:34.565+08:00GCC bonds & Sukuk market gets a new life in Q2<div style="background-color: white; box-sizing: border-box; line-height: 18.2px; padding: 0px 10px 10px; text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">The GCC bond and Sukuk market demonstrated improved activity in Q2 2016 especially on the sovereign front as the market witnessed prominent issuances from regional governments demonstrating appetite for debt in the region still exists. However, the lower oil prices, which has contributed to increased budget deficits and slower growth, has led to same credit deterioration such as the recent downgrade by rating agencies of Saudi Arabia, Oman and Bahrain.</span></div>
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<span style="box-sizing: border-box;"><span style="box-sizing: border-box;"><span style="font-family: Georgia, Times New Roman, serif;">Bond Issuances</span></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Q2 2016 marked one of the largest bond issuances in the region by the Government of Qatar amounting to US$9 billion, followed by the Government of Abu Dhabi amounting to US$5 billion, its first in 7 years. The Government of Qatar’s US$9 billion bond was a US$3.5 billion issuance with an issue price of 98.924% of the principal amount, a US$3.5 billion issuance with an issue price of 98.963% of the amount, and US$2 billion issuance with an issue price of 97.606% of the principal amount. The Government of Abu Dhabi issued US$5 billion of bonds with a US$2.5 billion issuance with an issue price of 99.753% of the aggregate nominal amount and a US$2.5 billion with an issue price of 99.562% of the aggregate nominal amount.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">In corporate bonds issuances, Gulf International Bank BSC-Riyadh issued its US$533 million 5 year bond with a coupon rate of 3.4%, while Abu Dhabi National Energy Co PJSC (TAQA) issued a US$1 billion bond, spread into two senior notes tranches of US$500 million each, due in 5 and 10 years respectively.</span></div>
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<span style="box-sizing: border-box;"><span style="box-sizing: border-box;"><span style="font-family: Georgia, Times New Roman, serif;">Sukuk Issuances</span></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Bank Al-Jazirasuccessfully issued a US$533 million 10 year Sukuk, with an option for the lender to redeem the Sukuk after five years.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">On the sovereign front, the Central Bank of Bahrain was an active contributor in the region issuing three Sukuk Al Salam each worth US$114 million (BD 43 million) and three short term leasing type Sukuk each worth US$69 million (BD 26 million).</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Steven Drake, Head of PwC’s Capital Markets and Accounting Advisory Services team in the Middle East region said: <span style="box-sizing: border-box;">“Bond and Sukuk activity improved compared to </span><span style="box-sizing: border-box;">the previous quarter of this year, with notable </span><span style="box-sizing: border-box;">issuances from regional governments such as of </span><span style="box-sizing: border-box;">Qatar and Abu Dhabi and this is expected to pick </span><span style="box-sizing: border-box;">up further in the next quarter as the Kingdom </span><span style="box-sizing: border-box;">prepares its first ever proposed USD 10 billion </span><span style="box-sizing: border-box;">bond issuance. However, challenging market </span><span style="box-sizing: border-box;">conditions and uncertainty amongst investors </span><span style="box-sizing: border-box;">and issuers may impact activity for the </span><span style="box-sizing: border-box;">remainder of 2016 and a surge in borrowing cost </span><span style="box-sizing: border-box;">could weigh on market appetite.</span></span></div>
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<span style="box-sizing: border-box;"><span style="font-family: Georgia, Times New Roman, serif;">(Wealth Monitor / 03 August 2016)</span></span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-15970359838215926362016-07-07T07:19:00.001+08:002016-07-07T07:19:57.619+08:00Mismanagement, lack of security unfold in Zakat distribution<div style="box-sizing: border-box; line-height: 21px; margin-bottom: 21px; text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">Distribution of clothes for Zakat ahead of Eid-ul-Fitr is going on in the country amid mismanagement and lack of security.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Some 15 to 20 poor women and men wearing shabby clothes were seen trying to enter into a shop through its half-opened door at East Tejturi Bazar in Dhaka’s Farmgate area to collect Zakat clothes.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The distributors did not probably bother to maintain any system to ensure security of these poor people, including also some old people, who were trying to get their much expected Zakat by pushing one another.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Men were not giving any space to the women first fearing to be deprived of the ‘gift’ distributed by a private company probably. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">On being asked about the security of these people, an employee of the company told The Daily Star that they didn’t have any other option except keeping the door half-opened.Some people have been seen very pleased after getting the ‘gift’ of Zakat clothes while others were seen fighting to get theirs.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">However, he failed to reply what would happen if any life is lost in any untoward incident.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">It is definitely a good gesture that any individual or private institution wants to help the poor. But none can ignore the security concern for these underprivileged people.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">(The Star Online Report / 04 July 2016)</span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-19767541273076650852016-07-07T07:16:00.001+08:002016-07-07T07:16:34.936+08:00Malaysia: Sukuk issuance to remain muted 6 to 18 months, says S&P<br />
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<span style="background-color: white; font-family: Georgia, "Times New Roman", serif;">KUALA LUMPUR: S&P Global Ratings expects Sukuk issuance will remain muted over the next six to 18 months, with total issuance of US$50bil to US$55bil in 2016.</span></div>
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It said on Monday that Sukuk issuance in the second half of 2016 will continue to depend on monetary policy developments and volatility in developed markets and also policy actions of sovereigns in core markets – namely Gulf Cooperation Council countries and Malaysia – in response to lower oil prices.</div>
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The ratings agency said explained that plummeting oil prices have not boosted sukuk issuance despite some commentators' expectations low oil prices would spur governments in oil-exporting countries to tap the Sukuk market for funding, and maintain current and capital spending.</div>
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Instead, total issuance actually dropped in 2015 compared with the previous year, it explained in its report entitled, “Why low oil prices aren't sending Sukuk issuance skyward”.</div>
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S&P Global Ratings Global head of Islamic finance Mohamed Damak said: “The complexity of Sukuk issuance, uncertainty regarding US Federal Reserves' policy revisions, and the government's efforts to reduce financing needs in response to weak oil prices have and will continue to weigh on Sukuk market activity.”</div>
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He said while governments affected by the price drop are looking to spending cuts, taxation, and the privatisation of state companies to adjust to the new reality, their financing needs remain significant.</div>
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<span style="font-family: Georgia, Times New Roman, serif;">"Part of these needs will be met by conventional debt markets and, to a much lesser extent, the Sukuk market, with the complexity of Sukuk issuance remaining a key deterrent to tapping the market, in our view," Damak said. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span id="innity-in-post" style="-webkit-appearance: none; background-color: white; border-radius: 0px; border: 0px; margin: 0px; padding: 0px;"></span><span style="background-color: white;">At the same time, he believes the European Central Bank's quantitative easing programme and the entrance of a few new issuers to the Sukuk market will continue to support issuance volumes.</span></span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white;"></span><span style="background-color: white;"></span><span style="background-color: white;"></span><span style="background-color: white;"></span><span style="background-color: white;"></span><span style="background-color: white;"></span></span></span><br />
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white;">(The Star Online / 04 July 2016)</span></span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-78634443608504753152016-06-13T00:13:00.000+08:002016-06-13T00:13:29.256+08:00China Turns To Islamic Finance To Drive Economic Initiative<div style="text-align: justify;">
<span style="background-color: white; line-height: 25.7143px;"><span style="font-family: Georgia, Times New Roman, serif;">In 2013, Chinese President Xi Jinping unveiled the Silk Road Economic Belt and the 21st-century Maritime Silk Road initiative now known as One Belt One Road, (OBOR) in order to actively develop connectivity and economic cooperation with countries mainly between China and Eurasia. The initiative aims to build a community of shared interests, destiny and responsibility with mutual political trust, economic integration and cultural inclusiveness. Initiating investment and developing economic trade communications with Islamic countries is one of important components of the OBOR strategy and this is detailed in the "Vision and Actions on jointly building the Silk Road Economic Belt and 21st-century Maritime Silk Road" published by the government on 28th March, 2015 ("Vision and Actions").</span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Compared to traditional financial products, Islamic finance has developed significantly due to its high flexibility of business, low risk, low debt requirements and the need to use real estate as collateral. In 2014, Sharia compliant financial institutions represented approximately 1% of total world assets, at around US$2 trillion. The latest study shows that, by 2020, the value of the global Islamic financial market will rise to US$3.25 trillion.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Financial integration is one of the key areas of cooperation set out in the Vision and Actions. The Chinese government emphasises that financial integration is a crucial element in the construction of the OBOR and has decided to speed up the incorporation and operation of the Silk Road fund. Proposals to strengthen the practical cooperation of China-ASEAN Interbank Association and to carry out multilateral financial cooperation in the form of syndicated loans and bank credit has also been completed. Qualified Chinese financial institutions and companies are encouraged to issue bonds in both Renminbi and foreign currencies outside China, and use the funds raised to invest in countries along the OBOR.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">As background to the strategic execution of the OBOR, State Owned and private enterprises in China are also trying to make use of Islamic finance, as against traditional finance, to serve their own overseas development. Chinese banks are strengthening their cooperation with Muslim countries, and are busy developing their overseas business and outbound investment. Islamic finance is rapidly becoming an established channel for China to enlarge its overseas economic influence.</span></div>
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<span style="background-color: white; line-height: 25.7143px;"><span style="font-family: Georgia, Times New Roman, serif;">Issuing Islamic securities is an important mechanism for Chinese enterprises to raise funds and expand in Muslim countries. Although Islamic finance does not offer interest, there are still opportunities to ensure financial benefits and remuneration primarily through issuing Islamic securities (Sukuk). Investors who purchase such securities would not obtain interest as an income; however, they could be given remuneration in terms of investment gains.</span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">It has been reported that a High Speed Rail project in China is considering using Islamic securities to raise a fund for almost 30 billion Chinese yuan (US$4.7billion). If successful, this would be one of the largest Islamic securities fund ever raised. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">In addition, Hainan Airlines Group is planning to raise US$150 million for ship purchasing, and this could be the first such deal to be approved by the Islamic finance authorities. Hainan is also planning to raise offshore Islamic securities. Some large banks in China have been raising their influence in the Gulf countries indeed, three of these banks issued traditional securities on NASDAQ Dubai, while others are in the planning stages. </span></div>
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<span style="background-color: white; line-height: 25.7143px;"><span style="font-family: Georgia, Times New Roman, serif;">Country Garden, the Chinese mainland real estate agents announced their intention in October 2015 to issue Islamic medium-term notes with a nominal value of MYR1.5 billion (US$340million) through their wholly-owned subsidiary in Malaysia. This is the first case of the Chinese real estate sector raising funds offshore through Islamic finance mechanisms.</span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Apart from issuing Islamic securities, local Chinese government authorities and enterprises who need to raise funds will do so in Islamic countries with substantial oil capital, fundamental infrastructure and energy projects such as coal, chemicals, wind power and solar generation. These are in compliance with the investment preference of the Islamic finance system on projects with long term, low risk, steady income and the "Go Abroad" strategy of Islamic countries as part of their financial globalization. This has highlighted efforts through the promotion of local development of China to absorb foreign investment and maintain local stability.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">However, we must also note that due to the characteristic of Islamic finance, and how it differs from traditional finance, there are numerous difficulties and challenges Chinese enterprises would have to face when using this structure. Unfamiliarity with the Islamic finance process is the prime issue for Chinese enterprises compared with traditional finance. Islamic finance, as a special financing system, has to follow the teachings of Islam, and as such certain areas are forbidden including the payment of interest, speculation, investments in alcohol and gambling, and both risk and interest share. In order to fully use Islamic finance, Chinese enterprises must learn the fundamental system and regulation that govern this financing mechanism and understand it business practices</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Constraints on current policies and systems also have an impact on China's development of Islamic finance. In 2009, the Bank of Ningxia was approved as a trial centre for Islamic banking business, and is the first bank in China to do so. There was a further suggestion that Ningxia could be developed as a pilot region of financial cooperation between China and the Gulf states, becoming the Islamic finance centre of China, like Dubai in the Gulf and Kuala Lumpur in Malaysia, however, this has not yet been finalised by the government. One likely reason for this is the unique nature of Islamic finance which makes it very difficult to merge into the current financing management system in China. Under the OBOR, China is considering using Islamic finance as a breakthrough to initiate extensive business communication and project cooperation in many areas with Middle East and South East Asian countries. It is considering opening outbound Islamic financing institutions, and participating in the investment in these regions or developing enterprises which operate through Islamic financing products. This is not only safer for funds and better for comprehensive income, but also improves the long term benefits.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Following the initiation of the OBOR it is now developing the practical stages, and there will be a significant increase in the use of Islamic financing tools and investment in major construction projects. If the Chinese government could enhance its cooperation with Muslim countries through Islamic finance, that it will significantly progress the development of the Silk Road project.</span></div>
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<span style="font-family: Georgia, "Times New Roman", serif; line-height: 25.7143px;">About Mr Du, Baozhong</span></div>
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<span style="line-height: 25.7143px;">Mr. Du is a senior legal counsel in the Beijing office of Yingke Law Firm. After graduating from China University of Political Science and Law with a master degree, he had been working for the Department of Treaty and Law in China's Ministry of Commerce for 13 years, and was engaged in legal consulting work in a large-scaled state-owned enterprise. Mr. Du, as the delegation member of Chinese Government, has participated in the working group meetings held by the Commission on International Trade of the United Nations several times, and addressed as the Chinese representative on meetings of OECD and APEC. He is specialized in foreign direct investment, outbound investment, international trade, private equity, venture capital, mergers and acquisitions, foreign-related arbitration, labor law, etc.</span></div>
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<span style="font-family: Georgia, "Times New Roman", serif; line-height: 25.7143px;">About Ms. Li, Xuan</span></div>
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<span style="line-height: 25.7143px;">Ms. Li is working as a trainee in the International Legal Affairs Department of the Beijing office of Yingke Law Firm, and also acts as the coordinator of Yingke Brussels Office. After graduating from Dalian Maritime University with a bachelor degree in Maritime Law, and a LLM Maritime Law degree at Bentham House, Faculty of Laws, University College London. She used to work in-house in an international shipping company, responsible for marine insurance and admiralty laws. While working in the UK, she served as the assistant analyst for hedge funds at Thomson Reuters London. Her specialisations are maritime law, international trade law and international arbitration.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="font-family: Georgia, Times New Roman, serif;"></span><span style="font-family: Georgia, Times New Roman, serif;"></span></span><br />
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<span style="box-sizing: border-box;"><span style="font-family: Georgia, Times New Roman, serif;">(Zawya / 09 June 2016)</span></span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-89970128232356807442016-06-12T23:51:00.001+08:002016-06-12T23:51:52.952+08:00Karama, Takaful, and social justice<div dir="LTR" style="background-color: white; margin-top: 10px !important; outline: none; text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">Last week I had the pleasure of participating in the conference organised by the Ministry of Social Solidarity to mark one year on the beginning of the Karama and Takaful social programs.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Both programs provide direct cash assistance to the poor, Karama to elderly and disabled people who cannot work and Takaful to the poorest families.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">During the meeting, the ministry announced that the two programs now cover three million people in the ten neediest governorates, most of them in Upper Egypt, and work was underway to extend the programs to other eligible beneficiaries in the remaining governorates.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">I have been a zealous supporter of these programs since the idea was first proposed in 2008 under then Minister of Social Solidarity Ali El-Meseilhi, who also championed it, but political conditions were then unfavorable and inadequate attention was paid to social issues.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The idea rose and fell in the priorities of successive governments and parliaments, until the government of Ibrahim Mehleb finally made it a reality. Having actually implemented the programs over the last two years, the Ministry of Social Solidarity deserves fulsome praise, since implementation is ultimately the biggest challenge and the true measure of success.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The programs are significant because they diverge from conventional pension schemes and proceed from a fundamentally different understanding: that social justice can be realised by providing a comprehensive umbrella of social protection based on redrawing the poverty map in Egypt, examining wealth and income data, building a comprehensive database of all cash, in-kind, and service support received by citizens, and then using this to draft a plan to deliver subsidies to those who need them and limit waste and corruption in social spending.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">This new approach distinguishes the Takaful and Karama programs from their predecessors, making for a more targeted, fairer provision of social protection and giving future decision makers an instrument for the application of other social policies.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">There are two important dimensions of this type of targeted program. First, direct cash support is not necessarily an alternative to the in-kind subsidies provided for years in Egypt. It is instead a complementary mechanism allowing cash assistance to go where it is needed.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Second, the principle of targeted subsidies for the poor, whether cash or in-kind, means accepting the periodic review and assessment of recipients’ circumstances, and excluding them if their conditions improve or the grounds for their eligibility no longer apply.</span></div>
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<span style="font-family: Georgia, "Times New Roman", serif;">Otherwise, the protection umbrella would continue to expand, ultimately again bringing in people who need no support.</span></div>
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The shift from comprehensive support that makes no distinction between rich and poor, needy and non-needy, lies at the core of a much-needed change. The sad truth is that over the last two decades, the exponential increase in social spending to cover all forms of comprehensive subsidies—which now account for 25 percent of public spending—has not been matched by reductions in the poverty rate. On the contrary, poverty has continued to grow.</div>
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<span style="font-family: Georgia, "Times New Roman", serif;">This trend cannot be corrected without moving from the concept of comprehensive social protection to targeted spending for poverty and the poor.</span></div>
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But the Karama and Takaful programs are a significant beginning, not the end of the road. Several challenges have yet to be addressed.</div>
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<span style="font-family: Georgia, Times New Roman, serif;">First, the programs require ongoing follow-up, revision, and review to remedy implementation problems. In addition, these programs cannot be funded in perpetuity by loans and foreign grants.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The state must devote adequate resources from the public budget to ensure their sustainability without being at the mercy of shifts in political tides and international relations—the programs are a fundamental right, not a nonessential handout.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Moreover, in the longer term, we should not stop with these two programs. A social protection network must be based on sound, standardised data on all pension and support programs, up-to-date, accurate poverty maps, integrated social spending, and the provision of jobs.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">I’m pleased that the Ministry of Social Solidarity declared its intention to incrementally build on this system, including by reviving the school meal project—a major pillar of the program that requires a more in-depth look.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">However, the greatest challenge is for the state to recognise the importance of popular and community oversight of social protection programs. No matter how hard-working and sincere officials are and regardless of the many regulatory systems, records, and instruments they devise, these programs will inevitably stumble and be corrupted and diverted from their goal if they are not subject to the oversight of parliament, civil society, parties, and associations that represent stakeholders.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Community oversight does not interfere with or obstruct the work of official agencies; it is a necessary, positive contribution and a realisation of every citizen’s right to know how the state is spending its resources and whether it is meeting its declared objectives.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="font-family: Georgia, Times New Roman, serif;"></span><span style="font-family: Georgia, Times New Roman, serif;"></span></span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">(Ahram Onine / 11 Jun 2016)</span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-64856209874408805062016-05-25T08:46:00.000+08:002016-05-25T08:46:04.697+08:00DP World Raises $1.2 Billion From Sukuk to Fund Bond Buyback<div style="-webkit-font-smoothing: antialiased; background-color: white; box-sizing: border-box; line-height: 29.124px; text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">DP World Ltd., the Dubai-owned company that operates ports from China to South America, raised $1.2 billion from the sale of Islamic bonds and said a tender offer to buy back securities received 48 percent more bids than the target.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The company sold a seven-year sukuk that will be priced to yield 237.5 basis points, or 2.375 percentage points, over the benchmark midswap rate, according to two people familiar with the deal, who asked not to be identified because the information is not public yet. The issue received more than $2.5 billion in bids, they said.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Money raised from the sale was meant to fund an offer to buy up to $750 million of DP World’s existing 2017 sukuk and for general corporate purposes, the company said earlier this month. The tender offer received $1.113 billion of valid certificates at its close on May 23 and DP World said it may buy all of them if it raises enough cash from the issue.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The offer for the 2017 securities was to pay $10,555 for every $10,000 of principal.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Bond sales from the six-nation Gulf Cooperation Council, which includes the two biggest Arab economies of Saudi Arabia and the United Arab Emirates, are accelerating as governments and companies seek funds following oil’s decline in the past two years. Offerings from the region have risen 28 percent to $16.7 billion, while Qatar’s government, Abu Dhabi’s Etihad Airways PJSC and its partners also plan to sell bonds this week. Dubai-based Noor Bank PJSC also raised $500 million from a perpetual sukuk today.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Citigroup Inc., Deutsche Bank AG, Dubai Islamic Bank PJSC, HSBC Holdings Plc, Barclays Plc, Emirates NBD Capital PJSC, First Gulf Bank PJSC, JPMorgan Chase & Co., National Bank of Abu Dhabi PJSC and Societe Generale SA are helping arrange DP World’s issue. Noor Bank, Samba Financial Group and Union National Bank PJSC have also been appointed co-arrangers.</span></div>
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<span style="line-height: 29.124px;"><span style="font-family: Georgia, Times New Roman, serif;">(Bloomberg / 24 May 2016)</span></span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-31527825303240214802016-05-17T09:12:00.001+08:002016-05-17T09:12:55.631+08:00Sukuk plays important infrastructure development role<div style="background-color: white; box-sizing: border-box; margin-bottom: 15px; text-align: justify;">
<span style="box-sizing: border-box; line-height: 1.6em;"><span style="font-family: Georgia, Times New Roman, serif;">Sukuk has played a significant role in promoting resilient infrastructure and sustainable economic development, and therefore should be boosted in the future, Finance Minister Bambang Brodjonegoro has said.</span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">In his opening remarks at a seminar during the Islamic Development Bank ( IDB ) Group annual meeting at the Jakarta Convention Center ( JCC ) on Monday, Bambang said it was important for Islamic finance to contribute to the sustainable development goals ( SDGs ).</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">"Sukuk naturally controls the needs of financing, which are based on underlying assets. It also provides a protective mechanism and natural hedging, making the industry more sustainable," Bambang said.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">He further said that sukuk had played a significant role in infrastructure financing. Aside from issuing sukuk for general financing, the government has issued sukuk to finance infrastructure projects, such as railways and toll roads.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">"This kind of project financing assures the effectiveness of sukuk," he went on.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Bank Indonesia ( BI ) Governor Agus Martowardojo added that sukuk had been growing rapidly in the last few years. However, Islamic financing instruments must be developed.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Indonesia has been active in sukuk markets since it laid the groundwork for sukuk issuance in 2007. This year, Rp 110.9 trillion ( US$ 8.33 billion ) in sukuk was issued in the domestic and international markets, according to ministry data.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Sukuk made up 15 percent of total outstanding government securities as of April 29. It comprises six instruments across a wide range of tenors, sizes, coupons and investors. </span></div>
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<div style="background-color: white; box-sizing: border-box; margin-bottom: 15px; text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">(The Jakarta Post / 16 May 2016)</span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-59674264629639089522016-05-17T09:10:00.001+08:002016-05-17T09:10:35.935+08:00Islamic finance prepares rules for awqaf and zakat charitable funds<div style="background-color: white; line-height: 24px; margin-bottom: 10px; padding: 0px; text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">Islamic finance institutions will present a set of guidelines for Muslim charitable institutions later this month, as the industry looks to develop a more efficient use of their assets, an Indonesian central bank official told Reuters.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Islamic endowments (awqaf) and alms-giving (zakat) have been in existence for centuries and hold billions of dollars in assets around the globe, but they are often criticised for being poorly managed.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">A set of guiding core principles for zakat has now been completed and will be unveiled at an upcoming United Nations summit in Istanbul, said Indonesian central bank deputy governor Perry Warjiyo.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Similar rules for awqaf are also in development, Warjiyo said on the sidelines of the annual meeting of the Islamic Development Bank Group being held in Jakarta.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Indonesia’s central bank is hosting some of the technical discussions for developing the core principles, as it hopes to strengthen the auditing function and professional management of such entities.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Reliable statistics are scarce, but awqaf are believed to hold large portfolios of real estate, commercial enterprises, cash, equities and other assets, with some estimates as high as $1 trillion worth of assets held globally.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">In Indonesia alone, registered land from awqaf stands at 1,400 square kilometres with an estimated market value of around $60 billion, according to the country’s Ministry of Finance.</span></div>
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<div style="background-color: white; line-height: 24px; margin-bottom: 10px; padding: 0px; text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">(Reuters / 16 May 2016)</span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-36083420128986502482016-05-16T09:36:00.001+08:002016-05-16T09:36:50.441+08:00Bahrain Said to Raise $435 Million From Privately Placed Sukuk<div style="-webkit-font-smoothing: antialiased; background-color: white; box-sizing: border-box; line-height: 29.124px; text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">Bahrain, whose junk rating was lowered by Moody’s Investors Service, tapped the dollar bond market for a second time in three months, according to two people familiar with the matter.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The Gulf nation appointed Noor Bank, Bank ABC and Kuwait Finance House to arrange a $435 million, privately placed Islamic offering, the people said, asking not to be identified because the information is private. The three-year debt will have a profit rate of 325 basis points over midswaps. Moody’s on Saturday reduced Bahrain’s long-term rating one notch to Ba2, two levels below investment grade.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The island state is attempting to shore up state finances pressured by low oil prices. Bahrain’s vulnerability to a decline in crude increased since 2009 when government expenditures started to rise in response to the global economic slowdown and civil unrest in the country. The sovereign last tapped the dollar bond market in February when it raised $600 million, a week after S&P Global Ratings cut the nation’s credit grade to junk.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Spokesmen for Bahrain’s central bank, Kuwait Finance House and Bank ABC didn’t immediately respond to calls or e-mails. No one at Noor Bank was immediately available for comment.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">(Bloomberg / 15 May 2016)</span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-28661495905106505132016-05-16T09:24:00.001+08:002016-05-16T09:24:59.240+08:00Gold may fuel Islamic finance<div class="hs-text-container" style="margin-bottom: 1em; text-align: justify;">
<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">With the Islamic finance industry set to be worth US$3 trillion in the next decade, gold could be a catalyst for its growth with the setting of new regulations that will allow Islamic investors for access to gold-based products for the first time.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">The market development body, the World Gold Council (WGC), which is based in London and the Islamic standard setting body, the Accounting and Auditing Organisation for Islamic Financial Institutions (Aaoifi), based in Bahrain, are working on a draft of the standard that would galvanise the $2n Islamic finance industry.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">“Consumers more or less have been confined to investing in bars and coins because that’s the only area where the rules are clear," says Natalie Dempster, the WGC’s managing director of central banks and public policy.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">“It [the standard] could fundamentally change the way in which Islamic countries access gold."</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">A final draft is expected to be published in the next few months, to be followed by a period of public consultation, says Ms Dempster. The standard could be issued in the fourth quarter, prompting its adoption and unleashing hundreds of tonnes of extra demand for gold, she adds.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">“This is the most significant game-changer for the gold market since the Washington Agreement in 1999, whereby 15 central banks pledged to coordinate and limit their activities," says Matthew Keen, the founder of the Dubai consultancy Evidens. “The price of gold has quadrupled since that agreement was formed."</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">The Washington agreement limited the amount of gold that several major European central banks can collectively sell in any one year, helping to stabilise the gold market. The price of gold in 1999 was $290.25 an ounce. Now it is trading above $1,266 an ounce.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">“I would expect billions of USD equivalent to be made available towards the global gold markets, keeping in mind that gold as an asset class has, anyway, a strong presence in a near zero interest rate environment," says Gerhard Schubert, the founder of Dubai’s Schubert Commodities Consultancy.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">The fact that the Aaoifi is working on the standard will speed up its adoption worldwide because the regulations issued by the body are widely accepted, analysts say.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">The divisive view of gold as a commodity or currency will also be clarified in the standard, which will take into consideration both aspects of the metal.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">“Gold can only be bought and sold on spot/cash basis, there can be no deferred payment for any purchase of gold, and there are specific rules on the use of gold as a commodity or currency," says Megat Hizaini Hassan, the head of Islamic Finance Practice at Lee Hishammuddin Allen & Gledhill in Kuala Lumpur.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">“Thus having a Sharia standard on gold would help contracting parties to know what specifically they can or cannot do with gold."</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">Gold has had a lustrous start to the year, rising by about 20 per cent year to date on the back of the low interest rate environment and flight of investments to a haven asset.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">Gold’s rally this year follows three consecutive years of losses, its longest rout in more than 30 years.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">Demand for gold rose in the fourth quarter of last year 4 per cent to 1,117.7 tonnes, led by central bank purchases, the WGC says. Central banks are buying the bullion to diversify their asset portfolios amid wobbly global economic growth and plunging commodity prices.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">For the full year, gold demand fell 14 tonnes to 4,212.2 tonnes, a level on par with demand for 2010, the WGC adds.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">Although Islamic investors have missed the gold train, the new standard will help them channel their money into products such ad gold exchange traded funds (ETFs), gold accumulation accounts and gold savings accounts, analysts and officials say.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">ETFs are funds that are listed on an exchange, tracking indices and behaving like stocks.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">“[The standard] makes it easier and more cost efficient for banks and financial institutions to issue gold products," says Ms Dempster.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">“At the moment, if you want to invest in Sharia-compliant assets, the universe of assets that you have to choose from is actually quite small."</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">Currently most Islamic investors funnel their money into equities, property and sukuk or Islamic bonds.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">“Although the price of gold can prove to be volatile in the short term, it’s always maintained its value over the long term," says Samina Akram, the managing director of London’s Samak Ethical Finance. “Investing in physical gold or mining stocks, I feel, will prove popular for investors in coming years. I would even argue further, values of currencies are declining as fiat money has no intrinsic value, and physical gold could be one of possible remedies to the global financial crises."</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">Gold could be used as an underlying asset for a number of products, including sukuk.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">Islamic banks could also use gold as a high-quality liquid asset (hqlas) to comply with more stringent Basel III banking standards that are being phased in. High-quality liquid assets can be composed of cash, or assets that can be converted into cash at little or no loss of value in private markets to meet a bank’s liquidity needs.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">“Since the financial crisis, banks have been required to set aside pockets of so-called high-quality liquid assets to protect them against another systemic liquidity crisis," says Ms Dempster.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">“Basel gave national supervisors in Islamic jurisdictions the right to define high-quality liquid assets themselves. And I think gold will fit very well there. It is an extremely liquid market."</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">But the adoption of the standard could face a few bumps.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">Banks should be willing to adopt the standard and dedicate time and effort to create products that investors want.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">“The Islamic community will only be able to take advantage of this if the banks, both Islamic banks and regular banks, are prepared to deliver products to their clients, Islamic or otherwise," says Mr Keen.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">“If the banks don’t do anything to take advantage of this, then nothing changes.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">(The National Business / 15 May 2016)</span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-2115751210424605012016-05-14T06:54:00.001+08:002016-05-14T06:54:38.255+08:00Malaysia: Sukuk market holds potential,but devoid of retail players<div style="background: rgb(255, 255, 255); border: 0px; line-height: 25px; margin-bottom: 15px !important; outline: 0px; padding: 0px; text-align: justify; vertical-align: baseline;">
<span style="font-family: Georgia, Times New Roman, serif;">KUALA LUMPUR: The sukuk market has a lot of potential as an asset class, but is currently dominated by institutional investors with little opportunities for retail players, a forum was told yesterday.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">OCBC’s consumer financial services chief Lim Wyson said sukuk provides predictability of yields, which is especially looked for by investors in a volatile market.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">“It is not so volatile compared to equities,” he said at a talk on Islamic wealth management at the Global Islamic Finance Forum 5.0.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Lim stressed, however, that the “depth and width” of the sukuk market need to be developed.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">“If you are able to widen and deepen the sukuk issuance, you can tap into the private wealth management part of the business,” he said.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Speaking to reporters later, Lim said most of the time, institutional investors are the first to buy during a sukuk issuance. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">“Then there is left very little for the retail side. So one of the areas [to look into] is bigger development in terms of the number of issuance, liquidity so that retail investors have access to it,” he added.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Lim said the creations of more unit trusts with sukuk-investor type of funds will provide access for investors to participate in sukuk through a unit trust format.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">“This is relating to investment mandates. Most of the syariah invested funds here are very concentrated in Malaysia or have a big allocation in Malaysia.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">“What we are trying to find is more globally invested type of unit trust that is syariah-tied, that we will be able to give to our clients.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">“That is the opportunity that we see, if we have more globally diversified mandates that are not so biased in terms of the heavyweight allocation to Malaysia. That is a demand seen in the market,” he added.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">According to RAM Rating Services Bhd, global sukuk issuance totalled US$66.4 billion last year, with Malaysia being the world’s largest sukuk market.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">In March 2015, Malaysia’s sukuk issuances accounted for 58% of the global US$308 billion outstanding sukuk.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Another speaker, Employees Provident Fund chief executive officer Datuk Shahril Ridza Ridzuan, said there has been limited growth in the global issuance of sukuk to certain issuing markets and issuers.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">“Hopefully, if we can move away from this preoccupation with syariah financing purely on faith-based systems towards sustainability, then I think that’s the right way forward to improve growth of this market.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">(The Edge Markets / 13 May 2016)</span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-11737708789756543272016-05-14T06:51:00.000+08:002016-05-14T06:51:22.239+08:00Zakat Foundation’s Super 17 shine at civils<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 27px;">Aligarh: It was a day of fireworks at New Delhi's Mukherjee Nagar-based Zakat Foundation - an organization devoted to increasing the number of civil servants in India, whose 17 candidates made to the final list of civil services examination on Tuesday. The organization, which selects candidates for coaching after an exam conducted at centres situated in areas of concentration of Muslim population, had coached a total of 35 candidates. Significantly, 16 of its students had also cleared the prestigious exam even last year.</span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 27px;">The candidates who cleared the exam this year include Farha Husain from Rajasthan, Mohd Arshad from Jharkhand, Ansar Ahmad Shaikh from Maharashtra, Minhajuddin Nizami, Ashar Ahmad, Arish Bilal from Uttar Pradesh, Anna Sosa Thomas, Benson Samuel, Dr Ibson Shah and Ashif Anakarth from Kerala, Asim Anwer from Karnataka, Syed Junaid Adil, Dr Bashit Qayoom, Dr Bilalwal Shafeeq Chowdhury, Shakil Ahmad Ghani, and Deeba Farhat from Jammu and Kashmir and Hussain Mehedi Rahman from West Bengal.</span></span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">The organistaion's founder, Zafar Mahmood, who was in Aligarh to encourage and inspire AMU students to prepare for civil services exam, told TOI, "Political representation of Muslims is very low because constituencies of Muslim majority areas are mostly reserved for SC/ST candidates. The Sachar Committee had asked for referring this anomaly to the Delimitation Commission. Similarly, sufficient number of Muslims are not appearing for civil services exam after a well-directed training. . The effort needs to be made by sincere community leaders and well-wishers."</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 27px;">Explaining the way the foundation picks up talent and nurtures them for the country's top exam, Mahmood, himself a civil servant who took voluntary retirement in 2009, said, "The candidates are taken only after they clear the foundation's in-house exam. The exams are conducted in Kerala, Jammu and Kashmir and in Kolkata keeping the concentration of Muslim population in mind and also the fact that the potential of people in these regions is very good. Then a test is held in Delhi for the Muslim aspirants from the rest of India. After the results are out, good performers are taken in and are provided with residential as well as coaching facilities in New Delhi's Mukherjee Nagar. A monthly report card of each candidate is maintained to track his or her performance."</span></span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">Since Independence, there have been just four Muslim toppers of civil services exam and one of them, Shah Faesal from Kashmir who topped the exam in 2009, was coached by this foundation.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">According to Mahmood, a lack of information and confidence in the system has led to disinterest of Indian Muslims in the civil services exam. "Ever since I joined the services in 1977, I made it a point to visit AMU, Jamia Milia Islamia and other minority institutes to encourage Muslim students for taking the exam. I met students and encouraged them to become part of the policymaking system and governance," he said.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; line-height: 27px;">(The Times Of India City / 10 May 2016)</span></span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-49402323893864671912016-05-14T06:47:00.001+08:002016-05-14T06:47:41.802+08:00Indonesia: BI urges Islamic finance industry to enhance human capital<div style="box-sizing: border-box; margin-bottom: 15px; text-align: justify;">
<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">Bank Indonesia ( BI ) has urged Islamic financial institutions to enhance their human capital in order to improve competitiveness and sustain the industry’s rapid growth.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">"If we want to see the Islamic financial sector on par with its conventional counterpart, it is relevant to improve the human capital," BI deputy governor Hendar told a seminar on human capital development held at BI’s offices in Jakarta on Friday.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">Hendar added that Islamic financial institutions had achieved significant growth, surpassing the growth of conventional financial institutions even during the global economic crisis.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">Despite this achievement, the industry was still facing a low quality of human capital, resulting in relatively low operational efficiency and poor product knowledge, he said.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">"We should pay more attention to the low quality of human resources. This unfortunate phenomenon has affected many countries, including Indonesia," he said.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">To enhance human capital, industry players needed to address crucial factors. Universities needed to provide teaching materials that combined Islamic and regular education with technology-based development and needed to build strong cooperation with global institutions.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">Meanwhile, Ali Ghufron Mukti, director general for science, technology and higher education at the Research and Technology and Higher Education Ministry, added that to achieve global competitiveness, industry players needed to improve technological readiness, innovation and higher education.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">"In the era of ASEAN Economic Community, human resources, undoubtedly, play an important role to enhance the competitiveness of the country. Hence, the ministry encourages individuals and organizations to conceptualize and make strategies to enhance human capital," he said, adding that vocational education was necessary beside academic education.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">He said priority sectors to focus on were energy and renewable energy, health care, transportation, defense and maritime industries.</span></div>
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<span style="background-color: white; font-family: Georgia, Times New Roman, serif;">(The Jakarta Post / 13 May 2016)</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-76996918143541610.post-22083315362985234712016-05-11T08:02:00.001+08:002016-05-11T08:02:39.160+08:00Boubyan Bank’s sukuk issuance oversubscribed, reaches $1.3bn<div style="background-color: white; border: 0px; line-height: 14px; margin-bottom: 15px; padding: 0px; text-align: justify; vertical-align: baseline;">
<span style="font-family: "georgia" , "times new roman" , serif;">Mr. Adel Abdul Wahab Al-Majed, Boubyan Bank’s Vice Chairman and CEO, stated: “Thanks to God, the Bank succeeded locally and internationally in covering the subscription in its capital enhancement sukuk which was oversubscribed by more than 5 times the targeted amount, reaching US$ 1.3 billion. This was achieved during a marketing period that did not exceed two weeks from the date of obtaining the regulatory approvals from the Capital Markets Authority and the Central Bank of Kuwait. The marketing campaign was launched by the Bank in Kuwait as well as the international financial capitals and Boubyan Bank issued US$ 250 million sukuk, priced at 100%, which will bear profit at a rate of 6.75%.”</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">“Succeeding in covering the sukuk issuance which aims at enhancing the capital base via Tier 1 capital instruments reflects the trust of local and international investors in the future of Boubyan Bank in light of the Bank’s achievements during the past years and its successes which encouraged such investors.”, Al-Majed added.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">Al-Majed went on to add: “We take pride in our achievement not only because this represents a success for Boubyan Bank, but also because this success is similarly attributed to the Islamic financial industry, and as it highlights the investment environment in the state of Kuwait, in general, being one of the countries that enjoy the necessary elements to attract global investors in light of the availability of new opportunities such as Boubyan Bank’s sukuk.”</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">Al-Majed did not forget to praise the role played by Boubyan Capital, Boubyan Bank’s investment arm, whose efforts were crowned by success in managing the sukuk issuance which represented the company’s first and most important test on the international arena where the company succeeded in arranging, managing and marketing Boubyan Bank’s sukuk within record time for this important issuance and in a very professional manner.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">On the other hand, Mr. Saleh Al Ateeqi, Chief Executive Officer of Boubyan Capital, stated: “Boubyan Capital believed that the first sukuk issuance to be managed by the company should be the one of Boubyan Bank because this is a very unique event, being the first issuance of sukuk in the world for the enhancement of Tier 1 Capital in compliance with the requirements of Basel III. The importance of this sukuk issuance emanates from the fact that it is the first one in Kuwait since 2007 in addition to being the first sukuk issued by a Kuwaiti Bank to enhance Tier 1 Capital.”</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">“Despite the circumstances surrounding the international economy and the concerns of investors which drive them away from entering into investment opportunities, the company managed, thanks to God, with its young national cadres and expertise, to market the sukuk within a record time and succeeded in managing the issuance.”, he added.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">(Kuwait Times / 11 May 2016)</span></div>
<span style="font-family: "georgia" , "times new roman" , serif;">---</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Alfalah Consulting - Kuala Lumpur: <a href="http://www.alfalahconsulting.com/">www.alfalahconsulting.com</a></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;">Islamic Investment Malaysia: <a href="http://www.islamic-invest-malaysia.com/">www.islamic-invest-malaysia.com</a></span>Unknownnoreply@blogger.com0