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COVER STORY 18th March 2015 (Volume 12 Issue 11)

The grass is always greener?

Environmental Sukuk take the stage
The UAE could issue the worlds first driven by corporate and municipal bonds launch the Green Bond Principles, a
green Sukuk as early as next month, as (see Chart 1). As of July 2014, climate- voluntary set of guidelines for green
the Gulf takes the lead in the renewable themed bonds were estimated to total projects including standards for the use
energy race with two potential issuances approximately US$502.6 billion globally of proceeds, evaluation, management and
this quarter. Drawing on the confluence a significant jump from US$174 billion reporting performance indicators. With
of socially responsible investing (SRI) in 2012. In its report, Sizing the climate increasing numbers of asset managers
and Shariah principles, the move economy, HSBC estimated that nearly (such as Arabesque, SEDCO Capital
represents yet another step towards US$10 trillion in cumulative capital and Saturna) looking towards socially
mainstream market influence for Islamic investments could be moved towards responsible investing as a key investment
finance. LAUREN MCAUGHTRY looks low-carbon energy between 2010-20; dierentiator generating positive returns,
at what we can expect from this new while the UN Principles for Responsible the demand is clearly there while the
facet of the SRI trend. Investment already hold over 1,300 supply has so far lagged. But with the
signatories representing over US$45 advent of the expected green Sukuk from
Promoted by the Clean Energy Business trillion in assets under management the UAE, all this could change. So what is
Council, the Dubai Supreme Council (up from just US$4 trillion in 2006). The the real potential for the sector, and what
of Energy, the Gulf Bond & Sukuk World Bank, which last year issued its could it achieve going forward?
Association and the Climate Bonds first socially responsible Sukuk with a
Initiative (an international investor- US$500 million deal for the International Attracting interest
focused NGO focused on mobilizing the Finance Facility for Immunization, has The tempo has certainly increased. It
US$100 trillion global bond market for already issued almost US$7 billion in takes a while for people to get used to
climate change solutions), with National 67 green bond transactions across 17 the idea and its benefits. But the growth
Bank of Abu Dhabi and Latham currencies. of the global green bonds market,
& Watkins also on board, which has tripled in the last two years,
the upcoming green deal is Gaining traction has got everyone thinking, explained
expected to be benchmark- The potential for a green Sukuk Sean Kidney, CEO of the Climate Bonds
sized and could kickstart a has long been discussed and Initiative, to IFN. We have interest
whole new market that has in recent months has gained around the world in green products that
the potential to reach into serious traction, with a Green are investment grade and financially
trillions of dollars. Sukuk Working Group set up in competitive not just in Europe or the
the UAE to design a transaction US. India has already seen one green
Last year was the biggest on in compliance with the Climate bond with three more in the works, while
record for the green bond Bond Standards created by the South Africa, the Gulf and Indonesia are
market, with US$36.6 Climate Bonds Initiative. In also all expecting to enter the market
billion issued triple January last year, 13 financial
that of 2013, with growth institutions also united to continued on page 3

Wealth, properly employed, is a blessing CIMB Islamic.

Artisans of
and a man may lawfully endeavour to Islamic Finance
increase it by honest means.
Hadith narrated by Bukhari

Volume 12 Issue 11
DEALS banking industry will see
consolidation of players ASSET
IFN Rapids ................................................... ..2 despite recent merger
Telekom Malaysia looking
IFN Reports: at either US dollar or euro fallout
for debut Sukuk depending International Bank of Itqan Capital distributes
Exciting Islamic finance opportunities
on pricing Azerbaijan conducts 3.5% cash dividends for
ahead for Japan IFN Global Trendswatch negotiations with customers REIF-II
Sharjah Islamic Bank sells
Indonesia ramps up Sukuk eort A new US$500 million Sukuk at a
final price of 110bps over
of IBA-Moscow on Islamic
financing services on the TAKAFUL
benchmark for Shariah compliant REITs of Asia midswaps 13th March Nigeria establishes
Pacific Gulf Finance of Saudi Arabia: Big KFH Research closes down advisory council for Takaful
The UAE to debut green-
plans ahead IFN Weekly Poll: Do oil prices energy Sukuk in the next Islamic Financial Services
few months Board to conduct seminar Dar Al Takaful targets
have an eect on Sukuk issuance? Turkeys SMEs with new product
PETRONAS sets price on financial inclusion
G20 chairmanship creates opportunities for guidance for Sukuk tranche through Islamic finance at
global Islamic banking community South Emirates Airline mandates
the end of March in Jakarta RATINGS
eight banks for upcoming Threadneedle Investments Fitch revises ratings
Korea making inroads into Islamic finance
UK Export Finance- acquires 2% stake in on seven Qatari banks;
Sovereign Sukuk: A potential shift towards guaranteed Sukuk Gatehouse Bank upgrades issuer default
green energy .............................................. 6 Research shows 50% of ratings of Islamic banks
Qatar International Islamic
Bank receives shareholder asset managers in the UK Islamic International
approval for QAR3 billion are ready to oer Islamic Rating Agency maintains
IFN Analysis: (US$823.4 million) capital- agriculture investments Turkeys ratings
Country analysis: Oshore centers.....................13
boosting Sukuk Irish government Malaysia Marine and
Masraf Al Rayan to debut acknowledges Islamic Heavy Engineering
Infrastructure financing: A palpable interest in
benchmark Sukuk before finance as potential Holdingss Sukuk program
Islamic finance................................................. 14 end of April lucrative area for receives final rating of AA-
development in its five-year IS
Shariah Pronouncement ........................ 15 Asia Brands issues unrated strategy
Islamic medium-term notes MARC assigns ratings to
Column: Daud speaks............................................ 16
of up to RM200 million Tatarstan focusing on Islamic facilities issued
IFN Country Correspondent: (US$54.02 million) in expanding ties with Iran by TSH Resourcess
nominal value through East Azerbaijan subsidiaries
Afghanistan; Hong Kong; Iran; Brunei; Saudi Province
Moodys confirms
Arabia ............................................................ 17
NEWS Morgan Lewis to use
Singapore as base for
Special Reports: billion Sukuk rating at A1
International Islamic further expansion in the
Trade Finance Corporation
PETRONAS Global Sukuk ................................20 Southeast Asian region and
and Egyptian General to integrate Islamic finance
Much ado about Islamic finance .........................21
Petroleum Corporation practice in Dubai Bank Negara Malaysia
Islamic finance in Ukraine: A new reality..........23 sign US$3 billion petrol
IDB approves more than appoints two external
S&P Dow Jones Quarterly Islamic Market US$718 million for new members to its Monetary
Abu Dhabi Islamic Bank infrastructure development Policy Committee
Review .................................................................24
shortlisted for Citigroups projects in member CIMB makes key
Egyptian retail business countries appointments across its
Islamic Finance news ................................... 25 NBP Aitemaad targets 100 Moodys revises regional oces
Islamic banking branches structured finance
Deal Tracker ................................................. 31 Prime Bank names
by 2015 rating methodologies Touhidul Alam Khan as
REDmoney Indexes .................................... 32 Malaysian Islamic banking to incorporate new deputy managing director
assets grew by 12% in 2014, counterparty risk
Eurekahedge data ....................................... 34 Yousuf Al Rawahi joins
making up 25.6% of the assessment
Performance League Tables....................... 36 Ahlibank as deputy
countrys total banking Qatar Islamic Bank general manager
Events Diary................................................. 40 system assets expands network with new
branch in Medina Centrale AAOIFI names former
Company Index ........................................... 41 RAM Ratings optimistic
City minister as chairman of
that the Malaysian Islamic
Subscription Form ....................................... 41 board of trustees

Disclaimer: IFN invites leading practitioners and academics to contribute short reports each week. Whilst we have used our best
endeavors and eorts to ensure the accuracy of the contents we do not hold out or represent that the respective opinions are
accurate and therefore shall not be held responsible for any inaccuracies. Contents and copyright remain with REDmoney.

2 18th March 2015


The grass is always greener? Environmental Sukuk take the stage

Continued from page 1

this year with interest from Indonesia Chart 1: Green bond issuance has exploded
especially ramping up as it works to

Cumulative amount outstanding (US$ billion)

develop its Islamic finance, and activity 60
expected before the end of the year.

Amount issued (US$ billion)


It looks like 30

Dubai might 25

pip them to the post 20

although I would 15

expect a Malaysian 10 10

green Sukuk out by 0

2007 2008 2009 2010 2011 2012 2013 2014

the end of Source: Climate Bonds Initiative

the year Chart 2: 2014 Green bonds by issuer type

Development banks continue to dominate Regional Bank

And the idea of the Islamic bond market green bond issuance, led by the EIB 2%
itself has grown in the last few years,
pointed out Kidney. This is just a new Muni/Provincial/City
dierentiator addressing new issues 13%
and giving it a new flavor with new
A whole new race 33%
Although Malaysia was an early leader
in the socially responsible Sukuk
surge, with guidelines for sustainable Development Bank
and socially responsible investment 44%
Sukuk published by the Securities 3%
Commission Malaysia in August 2014
and an announcement in November of
Source: Climate Bonds Initiative
an expected SRI Sukuk issuance from
sovereign wealth fund Khazanah in 2015,
little has so far emerged. This discussion corporate or sovereign would have a accomplishment, but remember that each
started in Malaysia, but we havent considerable impact in kickstarting the of the early issues will be unique and
seen an issuance. Its only a matter of sector and encouraging others to follow. so there will be room for a number of
time but doesnt look like it will happen I have reason to believe it will be a firsts.
imminently, which is surprising, said fairly substantial size enough to get
Kidney. It looks like Dubai might pip the market moving, Kidney informed Scale and purpose
them to the post although I would IFN. And it will be a high grade issuer, In terms of the style of financial products
expect a Malaysian green Sukuk out by which is what you need to kick o the there is also enormous potential,
the end of the year. market and get it noticed. It looks like especially as this type of renewability
we are going to get that the proof is in asset becomes more popular. These
In contrast the Gulf and especially the the pudding, but I am very hopeful at the assets are very safe, over long periods
UAE have been working hard towards moment. of up to 30-40 years and therefore
positive results. The Dubai government ideal for low-risk Sukuk instruments;
has stated its goal of financing clean Once the first issuance is launched, we therefore this kind of structure is likely
energy and eciency goals through can expect to see a flurry of activity come to become much more pervasive as a
Sukuk, giving it a policy imperative to market. A number of entities with way of refinancing assets and allowing
and incentive to issue, while further capital market experience are seriously developers to recycle their capital into
afield firms such as Saudis ACWA considering, or even planning to launch, new projects, especially as renewable
Power have also stated their intentions confirmed Michael Grierty, CEO of energy products gain scale and traction
to finance renewable energy projects the Gulf Bond and Sukuk Association,
through Sukuk. An issuance whether to IFN. The first will be a great continued on page 4

3 18th March 2015


The grass is always greener? Environmental Sukuk take the stage

Continued from page 3

over the coming years. This is likely to

stimulate issuance by corporate issuers,
while institutional investors are also
likely to be keen on these as low-risk
products, resulting in a huge appetite

Until the
sector gains
scale and traction
their role will
necessarily be
limited, compared
to the potential
inluence that seeking good returns and diversification.
Purpose is a key dierentiating theme
on its sovereign credit, which could be
an easier path. Sovereign support for
sovereigns could here. this segment would be incredibly
important. There is no substitute for
have in developing Sovereign support the sovereign role in establishing scale
for a new market, he emphasized.
the market Last year, private firms issued around
a third of all green bonds including However, in the GCC, this role is often
the largest ever green bond in the world delegated to a quasi-sovereign or a
from GDF Suez, a US$3.5 billion issuance GRE could this be the case for green
Growth in the green bond market last in May 2014 linked to renewable energy Sukuk as well? When you look at the
year was driven by corporates, and and energy eciency projects. However, types of investments that are needed
this could also hold true for the green until the sector gains scale and traction in both the hydrocarbon importers and
Sukuk trend. In corporate terms, the their role will necessarily be limited, exporters, there is an uncanny confluence
desire to do good while doing well and compared to the potential influence that of interests between the investments
do well while doing good is becoming sovereigns could have in developing the sorely needed in the MENA region and
increasingly pervasive, confirmed market. the kinds of projects suitable for green
Kidney. Can you contribute to society Sukuk, he suggested.
whilst also getting a competitive return It would be dicult to hazard a guess
and meeting your fiduciary obligations? based on a small number of deals in the Supply and demand
If the answer is yes, then pension funds pipeline. Finding qualifying projects There is no question that demand for
and insurance funds and even retail with suitable cash flows that also achieve these types of products is growing
investors will see this as a very exciting sucient scale for a capital market exponentially. Investors representing
prospect; and I think we will see a lot issue can be challenging, although not over US$2 trillion in assets under
more purpose-related capital. impossible. You can imagine dedicated management (including Zurich Insurance
green project deals that Group, Barclays and Aviva) last
On top of that, as you get liquidity in could come in at September issued an investor statement
the market, this opens up enormous US$100 million on green bonds which committed
opportunities for innovation. This or even less, to growing the global market in the
is likely to drive private sector firms warned Grierty. financing of climate change solutions.
towards raising money on the bond In comparison if a Barclays also recently confirmed plans
market in order to make a social sovereign identified to invest GBP1 billion (US$1.48 billion)
contribution to justify their existence some major in green bonds by 2016; while Zurich
beyond just paying a standard coupon. components of its Insurance Group intends to invest US$2
We see some firms, some banks capital improvement billion in green bonds. Two insurance
now that do this specifically for sta program that qualify industry associations, the International
retention, said Kidney. We will start under the green Cooperative and Mutual Insurance
seeing this across the financial markets, criteria, it Federation and the International
and this will attract both socially could fund
responsible investors and people who are them based continued on page 5

4 18th March 2015


The grass is always greener? Environmental Sukuk take the stage

Continued from page 4

Chart 3: Top 10 green bond issuers

Atomic and Renewable Energy in Saudi
intends to generate 54,000 megawatts
EIB US$5.6 billion from renewable energy projects by
KfW US$3.5 billion 2032. The Dubai Integrated Energy 2030
GDF Suez US$3.4 billion Strategy expects solar energy to account
for 5% of the emirates total energy usage
World Bank US$3.1 billion
by 2030. With massive announcements
Toyota US$1.75 billion in renewable energy coming from all
AfD US$1.3 billion quarters Saudi Arabia, Qatar, Jordan
Iberdrola US$1 billion and the UAE to name just a few and
all of these projects theoretically eligible
Unibail-Rodamco US$1 billion
for financing through green Sukuk, the
Ile de France US$829 million possibilities seem endless.
Hera SPA US$680 million
Source: Climate Bonds Initiative It would seem to be a simple marketing
ploy to consider financing those in the
Insurance Society (according to Latham and its history and track record are still green market, and to be frank I think
& Watkins) have also stated that their relatively short so while the potential is they will. That should be a reminder to
members will double climate investments there, the performance has not yet been people that there is a huge demand out
to US$84 billion by the end of 2015 and proven. A dedicated investor community there and a real shortage of issuance in
multiply their green investment ten-fold can develop only once there is a product the green bond market, asserted
by 2020. to develop around so issuance is Kidney. I am very hopeful that we will
crucial. However, as Grierty remarked: see this in the green Sukuk market as

There is a very There is a lot of potential for green well. Opportunity, opportunity,
Sukuk as a kind of wedge for Islamic opportunity!

good chance finance to help it get a full viewing from

the very large and active global ethical
we could see a green investment community. New green bonds criteria
for bio-energy investments
Sukuk market of And it looks as if supply is finally
moving to meet this demand. Our The Bioenergy Technical Working
between US$10-20 ambition by 2050 is that the whole
US$100 trillion bond market is green,
Group yesterday, the 17th March,

published their proposed eligibility
said Kidney. But at this stage we are criteria for bio-energy projects
looking at a US$1 trillion green bond
by 2018 market by 2020. That is spectacular
that qualify under the Climate
Bonds Standard. Assigned to
growth, and I think there is a very good formulate criteria to provide clear
chance we could see a green Sukuk and straightforward guidance
And the conditions are combining market of between US$10-20 billion
to create the correct conditions for for investors keen on bio-energy
by 2018 just under 10% of the total project(s), the working group will
issuance. The GCC sovereigns and
expected US$300 billion green issuance. submit its recommendation to the
their key companies enjoy access to
the international capital markets, Climate Bond Standards Board
both conventional and Islamic. They Huge potential for approval after a 60-day public
have substantial capital investment Looked at objectively, the potential for consultation period.
programs and intentions to redraw issuance across both the Gulf and Asia
their energy mix and reduce the carbon is vast and almost unlimited. Anyone As outlined by the proposed
footprint. Add on that several are aiming doing renewable energy investments, criteria, bio-energy projects
for leadership as financial centers, light transport, green buildings and more seeking a certification need to
prominently including Islamic finance, could theoretically issue. And there are a be certified under one of the
agreed Grierty. Hence, the conditions lot of high-rated corporates, sovereigns following standards: Roundtable
are right, and there is every reason to and GREs doing just that. for Sustainable Biomaterial, Round
believe a well structured green Sukuk Table Responsible Soy, Roundtable
with good cash flows and a good sponsor Abu Dhabi has announced a target of for Sustainable Palm Oil, Bonsucro
will be well received by the range of 7% of its energy capacity obtained from and Forest Stewardship Council.
Sukuk investors in the region and out renewable sources by 2020. In January Above that, at least 60% reduction
provided too that its properly priced. 2015, the Masdar Institute of Science in emissions comparing with local
and Technology released a UAE Wind baselines must be demonstrated for
It must be remembered that while the Atlas, similar to its previous Solar Atlas, biofuel projects and at least 70% for
potential is strong, there is not yet a to support investment in renewable solid biomass projects.
dedicated SRI investor base for Sukuk projects. The King Abdullah City for

5 18th March 2015


Exciting Islamic inance opportunities ahead for Japan

As Japans Financial Services Agency Sumitomo Mitsui Banking Corporation of these new products would certainly
(FSA) mulls easing rules to better (SMBC) reportedly has similar plans boost the banks Shariah appeal and
support Japanese financial institutions for its Dubai and Singaporean units. diversify its Islamic financing portfolio
in oering Shariah compliant products, Mizuho Financial Group on the other which is currently limited to Murabahah
VINEETA TAN observes that this has hand is thought to be likely to leverage and Ijarah products.
motivated Japanese players to think its existing London branch (the banks
beyond the horizon towards further largest oce in the Europe, Middle As discussed earlier last month in our
expansion. East and Africa region) to make it its IFN Analysis: Japan: Revving its Islamic
operational hub for Islamic finance in the finance gears (Vol 12 Issue 05), 2014 was
While the FSA is reportedly seeking Middle East. indeed a landmark year for Japanese
feedback on its potential move to entities in the Shariah compliant finance
enable the provision of Islamic financial Mitsubishi UFJ and SMBC are familiar space as we saw a surge in activities and
products in its home market (according names in the industry who have over stronger involvement not only from the
to Reuters), Nikkei Asian Review the years built a strong Islamic finance three Japanese megabanks but also, from
reports that the biggest Japanese Islamic repertoire, while newer player Mizuho is other Japanese players. And with the
finance players are looking outwards to catching up with its peers as it channels potential new regulations in place and
Dubai for expansion; a prudent strategy greater eorts into strengthening its stronger commitment from market
considering that they have successfully Islamic finance operations in Malaysia participants, 2015 is shaping up to be
established presence in Malaysia, a key to better compete in the international another interesting year full of
Islamic financial market. Mitsubishi markets. IFN has learned that Mizuho is opportunities for Japan and Islamic
UFJ Financial Group is hoping to oer planning to expand its product suite with finance. It would definitely be exciting to
Shariah compliant deposit and financing eyes on Mudarabah deposit instruments see what these players could bring to the
services at its Dubai branch, subject and Sukuk. With businesses being driven table.
to local regulatory approval; while by the corporate sector, the addition

The original version of this article, dated the 11th March, contained some inaccuracies. These have since been updated to reflect new
information received.


Indonesia Forum
22nd April 2015 - Shangri-La Hotel, Jakarta

Maximizing opportunities for Islamic banking, Sukuk and Takaful in Indonesia

Topics to be discussed:
Gameplan for 2015: Growth Strategies for Indonesia's Islamic Financial Institutions The Islamic Investment Landscape: Market Trends and Strategies for 2015
o Widening customer base: MSME financing, microTakaful, Islamic cooperatives and rural banks o Risk vs. Opportunity: Understanding the risks and impact on the Islamic asset management
o Consolidation of the state-owned Islamic banks: what does it mean to the market players? industry
o New Insurance Law: The effect on full-fledged Takaful operators and the effects on Takaful o The changing face of the institutional investment market: Discussing investment strategies and
windows product trends for 2015
Regulators Roundtable: Indonesia's Blueprint for Islamic Finance Development o Capitalizing on key advantages in the real estate and property sector
o Advancing from a sub-segment of Indonesias banking landscape to effectively competing with Attracting Inward Investment and Cross Border Collaboration
conventional banks: What needs to be done by Islamic banks and regulatory bodies? o Recent regulatory changes: Key issues and concerns facing foreign investors
o Strengthening Islamic finance services industry regulation, governance and supervision through o Investment mandates and options for Takaful funds: effectively managing investment risk and
a centralized model maximizing returns
o Recent regulatory and taxation changes relevant to Islamic finance in Indonesia, and what they o ASEAN Banking Integration Framework: Encouraging bilateral and multilateral trade and
really mean for investors cross-border investment
Deal Dialogue: Indosat - Indonesia's First Shelf-Registered Sukuk Issuance



6 18th March 2015


IFN Global
Whats been going on in the world this
you an update of the most significant
economic, regional and global events,
issues and trends that have the
potential to aect the Islamic finance

Sweden re-militarizes strategic Baltic

Investor Forum
island of Gotland as tensions with 1st April 2015 - Dubai
Russia rise in the region.

India increases foreign investor Global Investment Trends and Outlook for Islamic
stake in insurance firms from 26%
to 49% could this be a Takaful Financial Markets
Topics to be discussed:
Key Growth Markets for Islamic Investments in 2015 Global Trends in Islamic Asset Management
Japanese equities hit 15-year high on Sector Focus: Global Investment Opportunities in the Asset Allocation Strategies and Cross Border Distribution
the back of strengthening US dollar Transportation Sector Is Crowdfunding the Next Big Thing in Islamic Investing?
and Abes monetary easing program Transaction Roundtable - The Battersea Power Station Sector Focus: Where is the Shariah-Compliant Real
as Japanese banks take increasing Redevelopment Project Estate Investment Market Headed?
steps towards the Islamic market. Interview: How will Economic and Geopolitical Events Sector Focus: What Investment Opportunities
Shape Investment Trends? Exist in Global Commodities?
The UK makes landmark decision
to join Chinas World Bank rival
the Asian Infrastructure Bank, in a
deal criticized by the US but which
could change up the power stakes in REGISTER FREE NOW at
Asia Pacific and significantly boost
development prospects across the

Global carbon emissions did not

rise in 2014 for the first time in 40
years, says the International Energy
Agency. Green Sukuk and climate
US Investor Forum
bonds are key in the fight against
2nd April 2015 - Dubai
climate change where next for
the trend and is it really making a
dierence? Trends, Innovation and Opportunities in Shariah
US dollar strength is hitting the
Compliant Investments in the USA
country where it hurts and driving
up cost of exports, giving Fed rate- Topics to be discussed:
Key Markets and Asset Classes in the Americas
setters cause for concern, says the FT.
Sector Focus: Opportunities for Shariah Compliant Real Estate Investments in North America
Panel Session: Attracting Cross Border Investments
Egypt reveals plans for new CEO Interview: How will the US Economy Shape the Growth of Islamic Investments in North America?
administrative capital outside Cairo, Sector Focus: Agriculture Investment in South America
funded by a public-private
partnership between the government
and GCC investors. How much of
this will be Shariah compliant


7 18th March 2015


Indonesia ramps up Sukuk effort

With a dedicated Islamic capital market
Chart 1: Total Islamic banking assets volume in Indonesia and Malaysia (in US$) as
development plan in place, Indonesias
at the end of 2013
Financial Services Authority (OJK) is
resolute in uplifting the Republics 200 b
Sukuk market to greater heights. US$165.2 billion
VINEETA TAN discusses Indonesias 150 b
Shariah finance strategy with the

100 b

Natural progression
One thing to note about OJKs plan is that 50 b
US$13.43 billion
the authority is making corporate Sukuk
a key priority this year. Speaking to IFN, 0b
OJKs deputy commissioner I for banking Malaysia Indonesia
supervision, Dr Mulya Siregar, said: We Source: Islamic Banking Intelligence
are hoping to boost the Shariah capital
market through corporate Sukuk because
Chart 2: Five-year trend of Islamic banking assets growth in Indonesia and Malaysia
the market potential is significant.
200 b
Explaining that the country has been
gaining greater success with its regular 150 b
sovereign Sukuk issuance and seen

phenomenal demand from individual

investors for retail Islamic securities, Dr 100 b
Mulya said the next natural step is to
encourage corporates to issue Sukuk. 50 b

According to OJK data, 33 companies 0b

tapped the Sukuk market bringing 2008 2009 2010 2011 2012 2013
the cumulative value of corporate
Source: Islamic Banking Intelligence
Sukuk issuance (as at the 6th February)
to IDR12.9 trillion (US$1.03 billion).
of Islamic securities; the formulation of
Based on the outstanding value of
corporate Sukuk for that period IDR7.1 We are a five-year framework for the Islamic
capital markets; and raising public
trillion (US$568 million) corporate
Sukuk command a mere 3.2% of the exploring awareness on Shariah compliant financial
ways to utilize the
total Shariah securities market. The
sovereigns recent retail Sukuk sale raised
Expounding an optimistic sentiment for
widespread Islamic
IDR21.97 trillion (US$1.76 billion) from
the countrys proposed Islamic
individual investors.
megabank, Dr Mulya arms that the

Balanced growth banking network OJK intends to leverage Indonesias retail

banking strength to boost its Islamic
Home to the worlds largest Muslim
population, Indonesias Islamic financial
to support the capital market capabilities. We intend to
integrate all segments of the Islamic
landscape has predominantly been
skewed towards the retail banking sector,
development of the finance industry including banking,
non-banking, [and] capital markets. And
leaving much room for its Sukuk market
to grow. While the Southeast Asian
Shariah capital we are exploring ways to utilize the
widespread Islamic banking network to
nation has the demographic advantage,
the scope and growth of its Islamic
market support the development of the Shariah
capital market, explained Dr Mulya.
banking and finance industry lag behind
neighboring Malaysia (See Chart 1 and during which the authority will launch
Chart 2). initiatives to accelerate the development Are you receiving our daily
of its Islamic capital markets. IFN Alerts?
Nonetheless, the country is progressively No.
working towards achieving a more Focusing on three core components,
holistic growth across the Shariah finance the OJKs ambitious Shariah capital
industry with regulation enhancement market plan includes the designing
as a key theme in its eorts. The OJK of new regulations on Shariah capital
this year declared 2015 as the Shariah market experts and enhancing existing The Number ONE news service with
capital market year for the Republic regulations to better support the issuance over 20,000 registered daily readers

8 18th March 2015


A new benchmark for Shariah compliant REITs of Asia Paciic

San Francisco-based IdealRatings on to increase various asset classes for future so index initiatives like this will
the 11th March launched the worlds investment managers and we foresee a encourage further asset allocation and
first Shariah compliant Asia Pacific real major growth in this asset class as fund broadening of the investment universe.
estate investment trusts (REITs) index. managers begin to include the REITs Isaac confirms that his firm will be
VINEETA TAN has the exclusive. sector in their portfolio. using the new index as a benchmark to
compare performance of the segment.
Known as the IdealRatings Asia Pacific The Asia Pacific region has been
REITs Index, the index will cover REITs highlighted by IdealRatings as a Calculated in US dollars with REITs from
in the Asia Pacific region, with the view particularly appealing market as the various jurisdictions including Australia,
of expanding coverage to include the regions property and real estate sector Japan and Singapore, the market
entire global REITs universe in the future. continues to be a solid receiver of Shariah cap-weighted, free-float index will be
funds. The creation of a comprehensive re-balanced every three months with
REITs have in recent years gained Shariah REITs index which will enable Shariah screening to be performed on a
increasing favor among Shariah-seeking fund managers to benchmark the quarterly basis as well. Apart from
investors as the community attempts performance of relevant funds and track complying with IdealRatingss
to diversify away from traditional the performance of the sector, is therefore methodology for REITs, real estate
investments such as oil and gas, while a welcomed move by the industry as a operation and properties business
securing steady dividend-paying step forward in the development of the classification activities, the REIT must
investments criteria of which are met Islamic finance market. also derive half of its income from the
by REITs. Asia Pacific region to be included in the
CEO of independent asset manager index.
Mohamed Donia, CEO of IdealRatings, B&I Capital, Charles Issac, agrees: The
confirms the potential for Shariah Shariah compliant REIT sector is still
compliant REITs. We are always looking in its infancy with a very promising

Gulf Finance of Saudi Arabia: Big plans ahead

Gulf Finance Corporation (GFC) in We believe that the demand for Islamic
Saudi Arabia (Gulf Finance KSA) may finance will only grow. Our plan is to
be young but the SME financier is rising continue to expand operations in the
in prominence. Equipped with a new Kingdom in order to meet this demand.
operating license, the firms CEO David This will be done through the opening
Hunt reveals to VINEETA TAN major of new branches and launching more
growth plans across dierent areas as products down the line, explained
the Shariah compliant player looks to Hunt.
expanding its geographical footprint
and elevating its standing in the Saudi While Gulf Finance KSA may have a
financial market. relatively short history in Saudi Arabia,
the firms growth is commendable and
Wholly owned by the UAEs SHUAA ambition bold. Aside from expanding its
Capital, Gulf Finance KSA was product line and physical presence, Hunt
established in 2012 on the back of revealed to IFN that Gulf Finance KSA
Gulf Finance Corporations 15-year- may consider undertaking an IPO on the
strong experience in the SME and Saudi stock market in the next three to
microbusiness financing segment in five years time. With the vision of
the UAE. Gulf Finance KSA received countrys SMEs. Hunt further explained becoming a leading provider of Shariah
its new license from the Saudi Arabian that the new permit authorizes GFC compliant asset finance in Saudi Arabia,
Monetary Authority (SAMA) last to introduce new products which is it seems that Gulf Finance KSA is
month, ocially transitioning from an precisely what the financier plans to do. steadfast in achieving its goal with eyes
installment company under the Ministry firmly on the prize.
of Commerce to a regulated fully-fledged Oering Ijarah products at the moment,
finance company. GFC is exploring the possibility of
expanding its product suite to include
Viewing the granting of the new license Murabahah financing facilities. In
as a solid recognition of the firms success addition to that, the firm will be growing
in Saudi Arabia, Hunt said: [Receiving its branch network beginning with a new
the license] is important because it will unit in Al Khobar, slated for the second
enable us to continue to do business half of 2015 with an eye to expanding to
in Saudi Arabia, providing Shariah the southern part of the Kingdom as well.
compliant financing and support to the

9 18th March 2015


IFN Weekly Poll: Do oil prices have an effect on

Sukuk issuance?

A much debated area among market Do oil prices have an eect on Sukuk issuance?
observers, IFN this week takes a look
at the connection between plunging
oil prices and Sukuk oerings. The
question that most are asking is now
that oil prices are low and markets are More corporate issuances
uncertain, will we see more companies More sovereign issuances
turning to Sukuk? NABILAH ANNUAR Less corporate issuances
addresses this conundrum. 27% Less sovereign issuances
No eect
At the beginning of January 2015,
according to data by NASDAQ, crude oil
brent was recorded at about US$62 per
barrel. Prices started plummeting mid-
January to below US$50 per barrel and
started climbing up again all through
February. In the first week of March,
markets saw a dip from a high of above Sukuk issuances are done in/out of
US$62 to what is now approximately
US$57 per barrel. It is an undeniable fact
Before Malaysia where issuers hail from various
industries, etc. The massive drop in oil
that the persisting volatility in oil prices
aects all kinds of businesses around
answering the price since last year has had a neutral
impact on the growth of the Sukuk
the world. This eect would most likely
cause at least a fraction of the market to
question, one would market thus far. We witnessed one of the
best years for [the] global Sukuk market
turn to Sukuk. need to take a step in 2014; based on what we are seeing
and hearing, 2015 will be an equally
The poll results portray varied opinions. back: approximately exciting year for the market as well.
Respondents are given the option to vote The drop in oil prices, according to Safri,
on whether it would increase or decrease 60% of yearly Sukuk will result in entities related to oil-
corporate and sovereign issuance, or if
issuances are done
businesses, including but not limited to
there is no such correlation between the oil companies and oil exporting nations,

in/out of Malaysia
two: 64% opine that this volatility would to explore options which may include
result in an increase in corporate Sukuk tapping the Sukuk market and scaling

where issuers
issuance; 27% believe that it would back on planned expenditures.
result in more oerings from sovereigns;

hail from various

9% are of the view that the fluctuation Though there is a lack of positive
would cause fewer sovereigns to come sentiment on sovereign issuance, as
to the market; while none believed that
it would cause less corporate issuance or industries, reserves for oil-dependent countries are
said to be sucient, perhaps the industry
that there was no connection between the
two. etc could expect to see more oerings from
corporates which are substantially
government. The financing activities aected by this volatility.
Contrary to popular belief, particularly in of government-related entities, the
the GCC, S&P in a recent report relayed availability of large government assets,
that although it expects lower oil prices Join the most active Islamic
and healthy liquidity in the banking
to lead to fiscal deficits in some countries sector are said to limit the linkage finance focused group on
in the GCC (Bahrain, Kuwait, Oman, between changes in oil prices and the Linked-In
Qatar, Saudi Arabia, and the UAE), net potential for sovereign Sukuk issuance.
asset positions of most governments will
likely remain strong enough to enable Commenting on the topic, Mohamad
their financing. Where this is not the case, Safri Shahul Hamid, the senior managing
the ratings agency sees some potential director and deputy CEO of CIMB
for increased Sukuk issuance; however,
the rationale behind choosing Sukuk over
Islamic, said: Before answering the Linkedin/
question, one would need to take a
conventional capital market instruments step back: approximately 60% of yearly
is a decision for each individual

10 18th March 2015


Turkeys G20 chairmanship creates opportunities for global

Islamic banking community
VINEETA TAN explores the significance which not only have close ties to the Arab creation of a joint working group to
of Turkeys G20 chairmanship to the world but significant involvement in the design and develop a vision for Arab-
Islamic finance industry. Islamic finance and banking industry. Turkish cooperation for the next five
years covering all economic segments.
Shariah compliant banking is poised Welcoming Turkeys chairmanship of the The proposed working group will
to gain more prominence on the global G20, IDB president Dr Ahmad Mohamed comprise of the Turkish Ministry of
stage as it is likely to be a topic of discus- Ali noted that this will pave the way for Development, the Union of Arab Banks
sion during this years G20 summit in the voices of Arab and Turkish investors and the Association of Turkish Banks.
November. The IDB has confirmed that it to be heard in achieving G20 aspirations
is coordinating with several G20 govern- towards balanced growth culminating in Expecting the presence of global leaders
ments including Saudi Arabia, Indonesia the creation of employment opportunities including those of established Islamic
and Turkey to include Islamic banking on and sustainable development, according finance markets such as Saudi Arabia,
the agenda of the upcoming summit. to a statement on the banks website. Malaysia, the UK and Indonesia as well
Speaking at a recent economic forum, as emerging Islamic finance economies
To be hosted by the Republic of Turkey in Dr Ahmad emphasized the importance such as South Africa and Azerbaijan
Antalya, the 10th G20 summit will gather for the League of Arab States to leverage along with economies like Argentina,
world leaders, finance and economic from Turkeys strategic involvement as Australia, Germany, India and South
decision-makers from 20 major global chairman of the G20 to promote Arab- Korea, the G20 could prove to be a
economies. The presidency of Turkey of Turkish partnership. valuable international platform for
the G20 is instrumental as it is the first meaningful growth of the Islamic
time the international event is being To that end, the IDB president has banking and finance sector.
chaired by a Muslim-majority nation proposed and extended support to the

South Korea making inroads into Islamic inance

In a previous IFN report, IFN observed
that there has been an increasing
gravitation towards Islamic finance
exhibited by South Korea as the Asian
tiger, despite its deep ties with the
GCC, faces the growing challenge of
attracting business without Shariah
compliant financial instruments (See
IFN Report Vol 11 Issue 33: South
Korea & Islamic finance Strategy re-
think required). VINEETA TAN notes
that the trend is gaining momentum
as this week the market welcomes a in a statement to the media. Bassel successful due no less to the significant
promising partnership between Koreas added: We believe that such cooperation role of the Korea Trade-Investment
largest bank, Woori Bank, and Qatars between our institutions should facilitate Promotion Organization of South Korea.
pioneering fully-fledged Islamic bank, engagements and exploit new financing
Qatar Islamic Bank (QIB). opportunities. Hitting US$30 billion We hope that this MoU will serve as a
last year, trade exchange between the starting point for mutual development
Aimed at both existing and future Qatari two nations has been steadily increasing and believe it will provide opportunities
and South Korean entities in Qatar and/ evident by the 15% growth in value from for Woori Bank and QIB in the upcoming
or South Korea, the agreement will see a 2013. era of increased trading between the two
stronger relationship between QIB and nations, expressed Lee Dong-gun, the
Woori Bank so as to facilitate bilateral According to QIB, South Korea is a deputy CEO of Woori Bank, in a press
trade finance and corporate businesses. leading importer of Qatar-supplied release.
liquefied natural gas, with 30% of the
We are pleased to have partnered republics energy demand being met South Korea may lack the legal
ourselves with Woori Bank, one of the by oil and gas products provided by infrastructure (and political will) for the
leading banks in South Korea, and look the Middle Eastern state. Qatar on the development of Islamic finance; however, it
forward to expanding our relationships other hand imports electronics and seems that domestic market players are
with the South Korean market and automobiles from South Korea. It is nonetheless keen to leverage the Shariah
Korean companies working in Qatar this upward trajectory of trade growth compliant platform to maintain and
which has shown significant growth and between the two countries that has enhance their relationship with the Middle
development in the last several years, motivated QIB and Woori Bank to Eastern liquidity pool and this bodes well
said Bassel Gamal, Group CEO of QIB, form ties an arrangement which was for the Islamic finance industry.

11 18th March 2015


Sovereign Sukuk: A potential shift towards green energy

An interesting development in the (US$1.97 billion) of excess liquidity held completes its global capital market
past week is the UAE governments by the nations four Islamic banks. transaction portfolio.
prospective foray into green energy
Sukuk, a move that could mark a Asia Africa
historical milestone in the Islamic The Malaysian government is planning to Together with the Islamic Corporation
finance industry. In Asia, industry tap the international Islamic bond market for the Development of the Private Sector
heavyweight Malaysia is reportedly for the first time in almost four years, (ICD), the Niger government plans
looking to raise US$2 billion in instructing banks to submit proposals for to auction XOF150 billion (US$240.54
Sukuk, having selected banks for the a US dollar-denominated debt oering. million) in Sukuk, implemented in two
issue. Constantly keeping up with the Industry reports have suggested that the equal phases within the next five years.
sovereign Sukuk market, NABILAH government has mandated CIMB Group Proceeds therefrom will be used to fund
ANNUAR provides a concise review of Holdings, HSBC Holdings and Standard the Republics development project
its developments. Chartered Bank for the estimated five- pipeline. While South Africa has no
year, US$2 billion issuance. plans to issue a US dollar-denominated
Middle East Sukuk in 2015, the country, which is
The UAE is expected to issue the worlds Other countries that have come forth also planning to oer domestic South
first Sukuk aimed at financing green with Sukuk plans include Bangladesh, African-rand denominated Sukuk, may,
energy projects this year, possibly as Hong Kong, Indonesia, Ningxia however, consider an issuance next year.
early as April, according to The National. Hui Autonomous Region, Turkey Tunisia revised its plans expecting to
London-based Climate Bonds Initiative and Kazakhstan. IFNs Bangladesh debut its Sukuk oering in the second
(CBI) highlighted that they are looking to correspondent Md Shamsuzzaman half of 2015 allowing the parliament time
roll out up to two issuances in the UAE confirmed that the country is actively to amend a law concerning the sale. The
in April. The countrys Clean Energy considering the introduction of Sukuk Republic mandated four banks including
Business Council (CEBC) has been in in the domestic market. Following the Citigroup, Natixis and Standard
discussions with the Dubai Supreme success of the governments debut Sukuk Chartered for the proposed US$500
Council of Energy about the issuance of in September last year, Hong Kong is million US-dollar denominated issuance.
green Sukuk. Furthermore, Latham & reportedly planning to issue a second
Watkins also confirmed in the report that Sukuk worth approximately US$500 With a final decision to be made,
it is working with the CEBC, the Gulf million to US$1 billion, according to UMOA-Titres, the regions development
Sukuk and Bond Association and the CBI news portal Global Capital. Eyeing planning agency, reported that Ivory
to promote green Sukuk. a tenor of three to five years, the Coast has plans to tap the international
government is considering an asset-light Sukuk market with an estimated oering
Expected to materialize before the end Wakalah structure, evidenced by its of XOF200 billion (US$320.72 million)
of April, the emirate of Ras Al Khaimah request for proposals submitted earlier this year. Kenya announced that it has
plans to tap the Sukuk market this this month. Indonesia intends to issue set a target to issue its maiden Sukuk
year, having invited banks to pitch for IDR7.14 trillion (US$571.2 million)-worth in the next financial year (ending June
arranger roles for a potential US dollar- of project-based Sukuk this year, auction 2016) as the parliament considers
denominated benchmark issuance, Sukuk 22 times, launch a retail Sukuk a recommendation by its finance
reported Reuters. Addressing the program of up to IDR20 trillion (US$1.57 committee to double the governments
Sultanates 2015 budget deficit of OMR2.5 billion) in April and issue global Sukuk external debt ceiling to US$28 billion.
billion (US$6.47 billion) due to the fall within the first quarter. The government Although it would require regulatory
in oil prices, Oman has targeted to make is also currently assessing the feasibility change, Egypt has been exploring the
the debut of its first sovereign Sukuk via of the utilization of state-owned goods idea of issuing international Sukuk.
its central bank by mid-2015. Believed to and services such as tables, chairs, The countrys Sovereign Sukuk Bill was
adopt an Ijarah structure, the issuance computers and cars as underlying under review by the finance ministry
is expected to be worth OMR200 million assets for Sukuk issuances. Ningxia last June and is yet to be presented to the
(US$517.6 million) with maturities of Hui Autonomous Region, located parliament for approval.
five or seven years and the underlying in the northwest part of the Peoples
asset being a selected public project with Republic of China, intends to issue up Europe
a readily available income stream of to US$1.5 billion-worth of instruments Global Sukuk market constituents can
the right proportions. Similarly, Jordan including Sukuk, with maturities up expect another Sukuk oering from
also expects to raise JOD564 million to five years. The Turkish Treasury has Luxembourg as its finance minister,
(US$794.03 million) in Sukuk this year said that it plans to issue Sukuk worth Pierre Gramegna, confirmed that the
to narrow the countrys budget deficit TRY1.5 billion (US$570.67 million). country is open to the idea of making
(estimated to narrow 24% to JOD688 Kazakhstan could also potentially tap more sovereign issues after conducting
million (US$968.6 million) this year). the international Sukuk market this year its maiden Sukuk last September. In a
Bloomberg reported that the central bank with a possible quasi-sovereign oering. previous interview, Gramegna disclosed
expects to sell Sukuk valued between Pakistans finance minister on the other to IFN that authorities are working
JOD300 million (US$422.36 million) and hand, has armed that the government towards developing a new structure for
JOD400 million (US$563.14 million) on will not tap the international debt future Sukuk utilizing investment funds
behalf of the Jordanian government, markets, both Islamic and conventional, instead of real estate assets.
who aims to attract the JOD1.4 billion until the 30th June 2015, after the republic

12 18th March 2015


Country analysis: Offshore centers

Oshore financial centers feature prominently in the international financial landscape and in recent years have
seen themselves become the talk of the Islamic investment community. VINEETA TAN provides an overview of
key Islamic developments in selected oshore centers.

Luxembourg remains to be a popular
Shariah investment destination. In 2014, 
the Grand Duchy was awarded the IFN Ov
Best Fund Domicile. According to the 
CSSF, total net assets of undertakings 
for collective investment (UCI) and 
specialized investment funds reached 

EUR3.28 trillion (US$3.75 trillion) as at

the 31st January 2015. Over the last one
year, volume of net assets grew 24.89%.

Labuan IBFC
Malaysias Labuan International Business
Financial Center (Labuan IBFC),
regulated by Labuan Financial Services
Authority (Labuan FSA), continues
to actively push for the development
of Islamic finance. In early February,
Labuan FSA issued guidelines on the
establishment of Labuan international
Waqf foundation, which came into
eect the 1st March. The new framework Source: Jan Fichtner via based on 2011 data
follows the centers Shariah resolution
Table 2: Labuan Islamic deposits and financing of non-bank customers in 2014
on Labuan captive Takaful in December
2014, which allowed for the Takaful Q1 Q2 Quarter-on-quarter change (%)
operation business model based on Total deposits 256.7 215.8 (15.9)
Tabarru and stipulated rules for re-
Total financing 770.5 797.5 3.5
Takaful arrangements.
Source: Labuan FSA (figures in US$ million)

Table 1: Largest oshore financial centers

by total foreign assets Table 3: Distribution of gross contribution in 2014 for Labuan Takaful and re-Takaful entities
Ranking Jurisdiction Q1 Q2 Year-on-year change (%)
1 US Gross contributions 31.14 35.76 (67.4)
2 UK Malaysian 20.45 28.59 138
3 Germany Others 10.69 7.17 (92.7)
4 Japan Source: Labuan FSA (figures in US$ million)
5 France
Nonetheless, Labuan entities would billion and no Shariah compliant public
6 Cayman Islands still be able to appoint SSC members funds.
7 Luxembourg for a second Shariah endorsement of its
8 Netherlands products/services. In addition to that, Jersey
Labuan FSA in January 2014 revised its According to market figures, along with
9 Ireland
framework on mutual funds across the Luxembourg and Ireland, Jersey and
Source: Jan Fichtner via based on conventional and Islamic landscape so
2011 data Cayman account for over 20% of
as to provide clearer guidelines on the incorporations of Shariah compliant
application procedures, operational and funds (See IFN Guide 2015: The use of
The regulator earlier last year also regulatory requirements for Labuan
decided that licensed Labuan Islamic oshore entities in Islamic finance
mutual funds. current trends). In October 2014,
entities are no longer permitted to
appoint members of the Labuan FSA family-owned fiduciary business
According to latest statistics (second Minerva launched its dedicated Islamic
Shariah Supervisory Council (SSC) as quarter of 2014) provided by the
their internal Shariah advisors to avoid Service Oering (See IFN Report Vol 11
regulator, Labuan has 20 approved Issue 43: From Jersey to the world
conflict of interest between internal Islamic private funds worth US$2.83
Shariah advisory boards and the SSC. Minerva).

13 18th March 2015


Infrastructure inancing: A palpable interest in

Islamic inance
In the pursuit of progress and advancement, infrastructural development remains at the core of every nation.
Civilizations continue to upgrade basic necessities to sustain and enhance societal living conditions. In line with
the tenets of Shariah, Islamic finance has always been a main player in contributing towards these fundamental
provisions. NABILAH ANNUAR provides an overview of Islamic financial transactions that have materialized over
the past year in infrastructural funding.

Asia schools project in Jeddah city. At an it approved US$189.4 million in new

In August last year, Malaysias national amount of SAR150 million (US$39.96 financings for development projects in
infrastructure financing entity DanaInfra million), the project reportedly represents several member countries and a number
Nasional issued the third installment of one of the largest deals in the sector. of Muslim communities in non-member
its retail Sukuk worth RM100 million countries. The grant included: (1)
(US$27.11 million). Earlier in May, Islami In November 2014, Saudi Kayan US$136 million to Cote dIvoires road
Bank Bangladesh, a partner organization Petrochemical Company, an aliate of and transport sector for the construction
of the IDB provided BDT10 billion Saudi Basic Industries Corp (SABIC), of a 130-kilometer road connecting the
(US$125.34 million) for the construction signed two Islamic financing deals with capital Yamoussoukro to the city of
of the Padma bridge project. National Commercial Bank and Samba Tiebissou and (2) US$16.5 million to
Financial Group totalling SAR2.63 Djibouti for the Regional Submarine
billion (US$700.82 million) to fund an Telecommunications Project.
Africa increase in working capital, as well
Kenya in December 2014 set a target as the completion of factories under Last year, it allocated EUR200 million
to issue its debut Sukuk in the next construction. In August, Uyoun Al- (US$211.59 million) to the development
financial year as the parliament is Raed Commercial Company procured of rural wastewater works in Iran. In
currently considering a recommendation a SAR1.97 billion (US$525.22 million) Suriname it contributed US$60 million to
by its finance committee to double the Murabahah financing package for the the construction of the Academic Medical
governments external debt ceiling to construction of the Mall of Arabia. Hospital of Suriname. In Morocco,
US$28 billion to fund the construction Similarly, Emaar Economic City obtained Islamic financing for a power project near
of a new railway, port, roads and power a SAR2 billion (US$533.17 million) the port of Safi, was agreed in October
plants. Murabahah financing facility from Saudi with part of the US$2.6 billion financing
British Bank to fund residential and provided via a structured Islamic tranche
Americas infrastructure projects in King Abdullah from the IDB.
Last month, Brazilian property Economic City.
developer Ritz Property and construction Last August, IDB announced the
company G5, through its partnership In Qatar, a Shariah compliant financing approval of US$987 million in funds
(Ritz-G5), announced that it now facility of over QAR3.65 billion (US$1 for economic and social development
oers an Islamic investment avenue in billion) for Qatars Gold Line Metro Rail projects in member countries including
its Natal-based premium residential project was concluded last December. Oman, Uzbekistan, Lebanon and Yemen.
project, Majestic Village. The Brazilian The transaction (completed for a joint The bank distributed US$198 million
premium residential project is the first venture comprising Greece-based to Egypt for the development of Assiut
independent investment product to be Aktor, Indias Larsen and Toubro, Oil Refinery and US$226.8 million for
eligible for Shariah compliant funding. YapiMerkeziInsaatVeSanayi of Turkey, Sharm El Sheikh International Airport,
Majestic Village is a 75-hectare serviced SezaiTurkesFeyziAkkaya Marine while projects in Uganda received US$10
land plot condominium development Construction (STFA) of Turkey, and Al million in funding.
in Parnamirim, an up-and-coming Jaber Engineering of Qatar), is the largest
residential area in Natal. The project infrastructure syndication in the state. IDB also signed agreements worth
is designed to appeal to the domestic In Oman, Ahlibanks Al Hilal Islamic US$100 million with the government of
market and Brazils rising middle and Banking Services provided Muttawar Sudan, to fund the construction of an
upper class population of over 90 million. Omani Company with a financing electricity carrier line between Babanousa
facility of over OMR20 million (US$51.81 and Adliya and for the Delta Toker
Middle East million) for the construction of its Lamar agricultural project. Earlier in April, the
With an estimated US$375 billion-worth Bausher project, a high-end mix use IDB provided US$141.45 million to be
of infrastructure projects in the pipeline residential and commercial project. put towards the development of health,
(according to EC Harris), Saudi Arabia education and water supply
has made quite a number of financing IDB infrastructures, including construction of
deals in the past year. Bank Albilad The IDB is no stranger to the global reservoirs, schools and the purchase of
last month signed an agreement with community. As a multinational new school equipment in Kaduna State,
Waad Holding Company to finance the organization, it has funded countless Nigeria.
construction of the companys academy projects worldwide. Recently in January

14 18th March 2015


This Fatwa is brought to you exclusively by IFN in collaboration with Dar Al Sharia Legal & Financial Consultancy-Dubai. The Fatwa
appearing in this space was obtained by Dar Al Sharia for issues faced by their clients and the documents stated in the Fatwa were
developed at Dar Al Sharia. This Fatwa was compiled by Dr Muhiuddin Ghazi.

The following query has been raised in order to get Shariah guidance.

Can an Islamic bank obtain cash deposit as security for a customers financial obligation towards the bank under various
financing facilities extended by the bank to the customer?

An Islamic bank can obtain dierent types of collaterals and securities in order to protect its right towards a customers
financial obligations in terms of various financing facilities extended by the bank to the customer. The following are some of
the examples:

Title to the underlying asset or commodity in a trading transaction

Assignment of Takaful proceeds of the underlying asset or commodity
Assignment of proceeds under life Takaful of the customer
Third party guarantee, and
Personal and corporate guarantee.

In relation to lien on a customers account where adequate funds are available, it is important to note that the principle
governing lien in Shariah does not allow the Islamic bank to enjoy a benefit from the funds under lien without any
consideration in favor of the customer against such benefit.

Therefore, such lien is permissible in Shariah where the bank as a beneficiary does not use the funds under lien for its own
benefit and merely considers the same as security against certain facilities allowed by the bank to the customer.

In the case of an investment deposit account where the customers funds are utilized by the Islamic bank as Mudarib and the
actual profit is required to be distributed between the Islamic bank and the customer as per the pre-agreed ratio, the Islamic
bank does not get any extra financial benefit after getting the investment deposit amount under its lien. Therefore, the Islamic
bank is allowed by Shariah to get the investment deposit account under lien against certain financing facilities.

In the case of the bank getting the investment deposit account under its lien, the Islamic bank can block the account partially
or entirely, as per its requirement, until the settlement of relevant dues by the customer. The profit on investment of those
funds by the bank may become part of the lien if so required by the bank. However, the profit amount shall be the absolute
right of the customer pursuant to release of the lien by the bank.

Contrary to an investment deposit account, the funds kept under a current account are meant as a loan from the customer
to the bank and payable by the bank on the customers demand at any time. Such funds are utilized by the bank for its own
benefit, without any consideration being paid to the customer. Thus, it is not permissible for an Islamic bank to put the
current account funds of a customer under its lien against some facilities granted to the customer.

However, the lien is permissible if the Islamic bank and the customer agree to convert the current account funds into an
investment deposit account for the required lien period.

Dr Hussain Hamed Hassan

Chairman of the DIB Shariah Board,
Managing director, Dar Al Sharia Legal & Financial Consultancy, Dubai, UAE

15 18th March 2015


Daud speaks
In moving Islamic finance to the next demonstrate that we are indeed truly
level, a closer cooperation between
academia and industry will be required,
dierent. We need to
in my view. You have often heard me
both write and speak on the subject
Research will be absolutely vital to
achieve this eciently and eectively.
break out
of EPL (education, perception and
liquidity) but you may not have heard
However, this research must be done
in close collaboration with the industry.
of the current
Andrew Sheng comment frequently
on the fact that we have 19th
Indeed, industry must sponsor the
research and ensure that they set
pattern of linear
century institutions, with
a 20th century mindset,
the goals and desired outcomes
required. We need to marry
progression in
tackling 21st century the brilliant minds that exist Islamic inance and
problems!. Something among academia and research
has to change and the students, with the needs and start to use the tools
need is becoming very direction of the industry. The
urgent. research needs to be very at our disposal to
effect change
focused and up to the mark.
When all is said and In addition to that there needs
done, we need to break to be active engagement and
out of the current pattern communication between the
of linear progression researchers and the industry; may be turned and regulators may be
in Islamic finance and this is not just about the research encouraged to adapt and change to the
start to use the tools at our per se, but also about the very pressing needs of the 21st century.
disposal to eect change, practical and very real challenges
through the application of risk that the industry faces. Arguments Investment, application and support
sharing techniques, financial and the demonstration eect from the industry will be absolutely vital
inclusion and addressing need to be well formulated, for academic institutions to succeed.
the challenges of the well thought through, and Together we achieve more TEAM.
ever-increasing income articulated in a way that speaks
divide between the haves to the listening of the audience. There is much to do and not a moment to
and the have-nots. We need to In that way, politicians heads lose!


26th 28th April 2015, MUSCAT

Course Highlights:
Essential Shariah contracts for Islamic Capital Markets activities
Key characteristics, uses and issues in Sukuk structuring
Analysis of the differences in Sukuk structures and applications
Case study discussion and practical exercises |

16 18th March 2015


Afghanistan: Making good progress IFN Country Correspondents

AFGHANISTAN: Dr Alam Khan Hamdard
president, Afghanistan Islamic Finance and Consulting Co
AUSTRALIA: Chaaban Omran,
AFGHANISTAN signed two separate agreements Principal, Crescent Professional Services
BAHRAIN: Dr Hatim El-Tahir
with Afghan Chamber of Commerce director of Islamic Finance Knowledge Center, Deloitte &
By Dr Alam Khan Hamdard Touche
and Central Bank of Afghanistan for BANGLADESH: Md Shamsuzzaman
executive vice president, Islami Bank Bangladesh
the launching of an Islamic finance
Afghanistan International Bank BELGIUM: Prof Laurent Marliere
public awareness campaign and the CEO, ISFIN
(AIB), one of the largest banks in BERMUDA: Belaid A Jheengoor
introduction of the Islamic capital market director of asset management, PwC
Afghanistan, launched an Islamic BRAZIL: Fbio Figueira,
in Afghanistan. partner, Veirano Advogados
banking window operation in January BRUNEI: Dr Aimi Zulhazmi, Islamic finance consultant,
Draznine Advisory
this year. According to Dr Zulfiqar Ali
Afghan president Ashraf Ghani CANADA: Jerey S Graham
Khan, the chief of Islamic banking at partner, Borden Ladner Gervais
Ahmadzai announced that Islamic EGYPT: Dr Walid Hegazy
AIB, the window will oer a wide range managing partner, Hegazy & Associates
banking will be given priority to stabilize FRANCE: Kader Merbouh
of Islamic banking products both in co head of the executive master of the Islamic finance, Paris-
and develop the economy of Afghanistan Dauphine University
liability as well as the assets side of the
in his new government. HONG KONG: Amirali Bakirali Nasir
bank. Chairman, The Law Society of Hong Kong working party on
Islamic finance
INDIA: H Jayesh
Dr Alam Khan Hamdard is the president/ founder partner, Juris Corp
Al-Maali, a Dubai-based Islamic banking INDONESIA: Farouk A Alwyni
director of Afghanistan Islamic Finance CEO of Alwyni International Capital and the chairman
consulting group in cooperation with of Centre for Islamic Studies in Finance Economics and
and Consulting Co. He can be contacted at Development
Afghanistan Islamic Finance Company, IRAN: Majid Pireh
Islamic finance expert, Securities & Exchange Organization
of Iran
IRAQ: Khaled Saqqaf
partner and head of Jordan & Iraq oces, Al Tamimi & Co

Hong Kong: Raising the bar

ITALY: Stefano Padovani
partner and head of Banking & Finance, NCTM Studio Legale
JAPAN: Kaoru Haraguchi
founding attorney, Haraguchi International Law Oce
KENYA: Mona K Doshi,
HONG KONG the needs of investors in the Middle senior partner, Anjarwalla & Khanna Advocates
KOREA: Yong-Jae Chang
East, Malaysia, Indonesia, Pakistan and partner, Lee & Ko
By Amirali Nasir KUWAIT: Alex Saleh
India. The Hong KongShanghai connect partner, Al Tamimi & Co
LEBANON: Johnny El Hachem
would allow investors in the People's partner corporate, Bin Shabib & Associates
The global Islamic finance business has
Republic of China access to Hong Kong LUXEMBOURG: Said Qaceme
senior manager of Advisory & Consulting, Deloitte Tax &
passed the US$1 trillion benchmark and
products. Consulting
continues to show strong global growth. MALAYSIA: Abdullah Abdul Rahman
partner, Cheang & Ari
Hong Kongs milestone government MALDIVES: Aishath Muneeza
Any investment manager eager to deputy minister, Ministry of Islamic Aairs, Maldives
Sukuk has not only added to that global MALTA: Reuben Buttigieg
manage risk will see value in spreading president, Malta Institute of Management
growth but raised the bar for quality.
risk over products that are structured MAURITIUS: Sameer K Tegally
It shows Hong Kongs commitment to associate, Conyers Dill & Pearman
under a dierent value system. The MOROCCO: Ahmed Tahiri Jouti
quality be it in the major areas or niche managing consultant, Al Maali Consulting Group
Asian financial crises saw Malaysian NEW ZEALAND: Dr Mustafa Farouk
market. counsel member for Islamic financial institutions, The
Islamic banks shielded from downfall Federation of Islamic Associations of New Zealand (FIANZ)
because they were obligated to adopt a NIGERIA: Auwalu Ado;
The governments recent high credit- Shariah auditor, Jaiz Bank
dierent value system in structuring and OMAN: Riza Ismail;
rated US$1 billion five-year Sukuk has senior associate, Trowers & Hamlins
investing. PAKISTAN: Muhammad Shoaib Ibrahim
set a strong benchmark in terms of managing director & CEO, First Habib Modaraba
PHILIPPINES: Rafael A Morales
quality and value. Like Hong Kongs managing partner, SyCip Salazar Hernandez & Gatmaitan
The key questions now are whether
tall buildings, foundations are laid deep QATAR:Amjad Hussain
issuers will see value in issuing Sukuk in partner, K&L Gates
and strong to support the building RUSSIA: Roustam Vakhitov
Hong Kong, whether a possible raise in managing partner, International Tax Associates
above. This is Hong Kongs international SAUDI ARABIA: Nabil Issa
interest rates will aect Sukuk issuances partner, King & Spalding
financial brand of quality, security,
and whether the lack of local investors SENEGAL: Abdoulaye Mbow
Islamic finance advisor, Africa Islamic Finance Corporation
fairness and freedom in business. It is no
will prevent the development of the SOUTH AFRICA: Amman Muhammad
wonder that the government Sukuk was CEO, First National Bank-Islamic Finance
Islamic finance market in Hong Kong. SINGAPORE: Yeo Wico
rated AAA. partner, Allen & Gledhill
SRI LANKA: Imruz Kamil
The Special Administrative Region is a head of Islamic banking, Richard Pieris Arpico Finance
Demand for Islamic products remains SWITZERLAND: Khadra Abdullahi
high quality international financial associate, Investment banking, Faisal Private Bank
high but the demand is even higher SYRIA: Gabriel Oussi,
market which sees investment companies general manager, Oussi Law Firm
for quality high-rated products in the TANZANIA: Khalfan Abdullahi
from around the world investing in the head of product development and Shariah compliance, Amana
Middle East and around the world. Bank
market; it only requires familiarity with THAILAND: Shah Fahad
Pricing is also important as competitive
the system vis-a-vis Islamic finance for vice-president and head of strategic marketing and product
Islamic products are attractive to development, Islamic Bank of Thailand
investors to gain confidence in Hong TURKEY: Ali Ceylan
investors seeking Islamic products. partner, Baspinar & Partners
Kongs Islamic finance capabilities. UK: Fara Mohammad
director of Islamic finance, Foot Anstey
US: Joshua Brockwell
Tax changes allow for exemption of tax investment communications director, Azzad Asset Management
Amirali Nasir is a solicitor who established
on the returns from Islamic investments YEMEN: Moneer Saif; head of Islamic banking, CAC Bank
the firm Nasirs Solicitors & Notaries. He can
and the new Inland Revenue practice IFN Correspondents are experts in their respective fields
be contacted at and are selected by Islamic Finance news to contribute
notes provides useful guidance to issuers designated short country reports. For more information
about becoming an IFN Correspondent please contact
eager to structure products suited to

17 18th March 2015


Inlation-protected Sukuk Musharakah

IRAN rate plus a specific percentage rate.
For example, if the inflation rate at the
By Majid Pireh
specific period is 10% and the extra profit
rate is 3%, then the provisional rate shall
Sukuk Musharakah in Iran is widely
be (10% + 3% = 13%).
used as a Shariah-compatible instrument
for financing many projects. Iran has a
In the operational model, the investors
good legal and operational background
may refer to the originator itself or the
for issuing Sukuk Musharakah. In 1994,
market maker for receiving the provisional
the municipality of Tehran embarked
amounts if they desire to exit the
on the issuance of Sukuk Musharakah
partnership. The details shall clearly come
of US$28 million-worth with a four-year
in the documents that specific information
maturity period. While many investors inflation-protected Sukuk Musharakah. dissemination entities shall publish.
are familiar with Sukuk Musharakah, In this model, the originator is a
the inflation rate in some previous partner with investors and provides Currently, this model is only approved
years somehow made it a non-attractive some shares in the underlying project. by the Shariah board of the SEO and is
instrument as the profit rates did not In some predetermined maturities not implemented in the market yet;
satisfy investors. For this, a new model such as monthly or quarterly periods, hopefully in the future I will be able to let
came on the stage that protected investors the originator pays investors some IFN readers know that inflation-
against the inflation rate and it is called provisional rates on the basis of a Qard protected Sukuk Musharakah is tradable
Inflation-protected Sukuk Musharakah. contract. These payments will settle at in the Iranian Islamic capital market!
final maturity on the basis of real profit/
The Shariah board of the Securities and loss from the underlying project. Majid Pireh is a senior Islamic finance expert
Exchange Organization (SEO) during
at the Securities and Exchange Organization
some discussions in two meetings Here, the provisional amounts the of the Islamic Republic of Iran. He can be
approved some specific structures for investors receive will be the inflation contacted at

Islamic inance provides silver lining in the current economic

BRUNEI Darussalam, which controls about three-
By Dr Aimi Zulhazmi The authority quarters of Islamic banking by assets;
handles most of the public employee
With the decline in oil prices, the would like to payroll accounts. This is helped by the
regulation embedded in 2010, where
Negara Brunei Darussalam (Brunei)
government has forecasted its financial
see two or three new banks are forbidden from making
consumer loans to people that do not
budget for the fiscal year 2015/2016 to be
in a deficit of BND2.28 billion (US$1.61
banks entering the receive their primary income with the
lending bank.
billion). The projected income from
oil and gas is estimated to be around
countrys Islamic
The report also highlighted that Islamic
BND3.21 billion (US$2.27 billion)
banks continue to be almost as profitable
and from the non-oil and gas sector
as conventional banks due to a larger
BND905.12 million (US$640.61 million).
volume of high-earning loans, where the
The government also warned of a bigger
average return on equity of Islamic banks
deficit should the oil price continues to
was 9.2% in the first nine months of 2013,
move south this year; as such, prudence According to an industry report
compared to 10.9% for conventional
is highly desirable. published by the Oxford Business
banks. With the healthy growth recorded
Group, several factors underlined the
by the Islamic finance industry, even
Nonetheless, the government is shifting significant growth. First, Islamic banks
during the economic period of oil price
the focus to spur the growth of SMEs are more aggressive than most of Bruneis
decline, it is not surprising to learn that
as well as businesses in the non-oil and conventional banks, as illustrated by
the authority would like to see two or
gas sector. For example, companies with Islamic banks making up more than
three new banks entering the countrys
an annual revenue of less than BND1 half of domestic loans. With a strong
Islamic finance industry.
million (US$707,759) in 2015, will be fully focus on domestic lending, the Islamic
exempted from corporate tax. Moreover, banks in Brunei being government-
Dr Aimi Zulhazmi is an Islamic finance
Islamic finance continues to dominate linked institutions have the mandate to
consultant via his own Draznine Advisory.
growth in the Bruneian banking and support domestic business. Second, the
He can be contacted at draz9.advisory@
insurance industry. largest Islamic bank, Bank Islam Brunei

18 18th March 2015


Developments in the registration of IFN Sector Correspondents

movables for secured lenders in the CROSS-BORDER FINANCING

Fara Mohammad, Director Of Islamic Finance, Foot Anstey

Kingdom of Saudi Arabia

Muhammad Shoaib Ibrahim, managing director & CEO,
First Habib Modaraba

Suhaimi Zainul - Abidin, treasurer for Gulf-Asia Shariah
SAUDI ARABIA behalf of a client, an Arabic language Compliant Investment Association and advisor to 5Pillars
authorization letter must be signed LAW (EUROPE):
By Nabil A Issa Ayhan Baltaci, attorney at law, Bereket & Baltaci Law Firm
by one of the parties to the UCLR
registration application form, authorizing LAW (MIDDLE EAST)
The process of registering security Bishr Shiblaq, head of Dubai oce, Arendt &
specifically named individuals to submit Medernach
interests for secured lenders in
the application. Such an authorization LEASING:
the Kingdom of Saudi Arabia is a Prof Shahinaz Rashad Abdellatif, executive director,
letter must be authenticated at the Saudi Financial Services Institute, Egyptian Financial
presently evolving regime. Licensed Supervisory Authority.
Arabian Chamber of Commerce. The
financial institutions are currently MERGERS & ACQUISITIONS
UCLR registration application form Jamal Hijres, CEO, Cappinova Investment Bank
utilizing the Unified Center for
is available in English and Arabic.
Lien Registration (the UCLR) to MICROFINANCE (ASIA):
However, there have been many cases Dr Mahmood Ahmed, executive vice president and
register security over movables in the director training, Islami Bank Training and Research
of English language UCLR registration Academy
Kingdom. The implementation of this
application forms being submitted and MICROFINANCE (AFRICA):
registration mechanism remains in the Mansour Ndiaye, director of microfinance, Assistance and
subsequently rejected. It is therefore Consulting for Development
developmental and adjustment stage.
recommended to use the Arabic language PRIVATE BANKING & WEALTH MANAGEMENT:
Thomas Woods, product development, wealth
UCLR registration application form management, The Islamic Bank of Asia
The Saudi Commercial Pledge Law
(including a collateral description which PRIVATE EQUITY & VENTURE CAPITAL:
governs the taking of security over
is fully drafted in Arabic), and submitting Arshad Ahmed, partner, Elixir Capital
movable assets. The Implementing
such a UCLR registration application PROJECT & INFRASTRUCTURE FINANCE
Regulations of the Saudi Commercial Anthony Coleby, head of corporate commercial
form to the Saudi Arabian Chamber department, Said Al Shahry Law Oce (SASLO)
Pledge Law, as amended thereof,
of Commerce for authentication. With REAL ESTATE
mandate the establishment of, and Philip Churchill, founder partner, 90 North Real Estate
regard to any document submitted to the Partners
outline the legal framework for, the
Saudi Arabian Chamber of Commerce, REAL ESTATE (MIDDLE EAST):
UCLR under the control of the Ministry
the signatories to such a document must Yahya Abdulla, head of capital markets Middle East,
of Commerce and Industry. The Ministry Cushman & Wakefield
of course be pre-registered with the
of Commerce and Industry subsequently REGULATORY ISSUES (ASIA)
Saudi Arabian Chamber of Commerce as Intan Syah Ichsan , chief operating ocer, Samuel Aset
entered into an agreement with the Saudi Manajemen
the authorized signatories on behalf of
Arabian General Investment Authority REGULATORY ISSUES (MIDDLE EAST):
the relevant party. Mohammad Abdullah Malik Dewaya, head of Shariah
(SAGIA), and the UCLR was established compliance and audit, Maisarah Islamic Banking Services
in 2011 under the aegis of SAGIA, but RETAIL BANKING:
An area where there remains significant Chowdhury Shahed Akbar, Ocer, Southeast Bank,
only recently started registering pledges. Bangladesh.
uncertainty is whether the underlying RISK MANAGEMENT:
pledge agreements must be translated Hylmun Izhar, economist, Islamic Research and Training
Only certain assets may be registered at Institute, Islamic Development Bank Country
into Arabic and authenticated at the
the UCLR. The pledged asset must be: SECURITIES & SECURITIZATION:
Saudi Arabian Chamber of Commerce. Nidhi Bothra, executive vice president, Vinod Kothari
This has, at times, been required by
1. owned and disposable by the pledgor STOCK BROKING & TRADING:
the UCLR. It is unclear whether the Athif Shukri, research analyst, Adl Capital
2. in existence, and not a future asset
UCLR will require this step for every
3. tradable, and STRUCTURED FINANCE:
registration application, as such a John Dewar, partner and head of Islamic finance, Milbank,
4. readily and clearly identifiable. Tweed, Hadley & McCloy
directive would have significant
implications. Anthony Coleby, head of corporate commercial
Under the Saudi Commercial Pledge department, Said Al Shahry Law Oce (SASLO)
Law and the Implementing Regulations, SYNDICATED FINANCE
The procedural requirements for Elina Khayrullina, investor relations manager, AK BARS
a creditor may be granted a pledge over
registering security with the UCLR Bank
movable assets in connection with a TAKAFUL & RE-TAKAFUL:
remain challenging, but as the
commercial debt. Dr Sutan Emir Hidayat, assistant professor and academic
established system becomes more advisor for Islamic finance, University College of Bahrain
utilized, institutional pressure will force TAKAFUL & RE-TAKAFUL (AFRICA):
All applicable registration forms are Uwaiz Jassat, acting head of Islamic banking, Absa Islamic
the development of transparent Banking
currently available at the UCLR, but the
guidelines. The UCLR has the potential TAKAFUL & RE-TAKAFUL (EUROPE):
procedural registration process remains Ezzedine Ghlamallah, director, Solutions Insurance and
to be, and is currently working toward Islamic Finance in France (SAAFI)
in the evolutionary phase. The practical
becoming, a valuable asset for secured TRADE FINANCE
and logistical steps which are required Anthony Coleby, head of corporate commercial
lenders in Saudi Arabia. department, Said Al Shahry Law Oce (SASLO)
have shifted over time and appear to still
be evolving.
Nabil Issa is a partner at King & Spalding, Nafith ALHersh Nazzal, certified financial & investment
Middle East & Islamic Finance Practice
While some procedures are being
Group, Dubai and Riyadh. He can be IFN Correspondents are experts in their respective fields
developed, a number of steps have and are selected by Islamic Finance news to contribute
contacted at Nabil co- designated short sector reports. For more information
become clearly delineated. In order to about becoming an IFN Correspondent, please contact
authored this report with Yousef Farsakh, an
submit a UCLR registration package on
associate with the law firm.

19 18th March 2015


PETRONAS Global Sukuk

Standard & Poors Rating Services (S&P) has recently assigned a preliminary rating to a landmark Sukuk transaction
issued by PETRONAS Global Sukuk, a special purpose company incorporated in Labuan, and sponsored by
Petroliam National (PETRONAS), the national integrated oil and gas company of Malaysia. The transaction was
rated at the foreign currency rating of its sponsor because it was issued in US dollar and complies with the five
conditions of S&Ps Sukuk rating criteria. MOHAMED DAMAK gives an overview of PETRONAS Global Sukuk.


By Mohamed Damak
In January 2015, S&P published its 
updated methodology for rating Sukuk.
In this update, S&P not only enhanced
the transparency of its methodology
by stating the five conditions required Sponsor
an resiual
for Sukuk to achieve the same rating
assets risk
as their sponsor, but also identified Equity-like
instances where investors could be instruments
exposed to residual risks related to the Sponsor risk targeting equity
underlying assets. inestr

To date, Sukuk have been structured Sponsor rating* appe rating* rt
and sold as investment products where 
investors have the perception that the
risk being taken is solely the risk of the
sponsor. In reality, however, some Sukuk In our view, PETRONASs Sukuk is any shortfall, which may arise under a
may have exposed investors to some structured with the necessary layers of total loss scenario, between insurance
risks that do not exist in conventional protection to insulate investors from proceeds and the acquisition price of
instruments. These risks have not been residual risks related to the underlying the assets. In our opinion, Sukukholders
uncovered so far due to the limited assets. Under the current terms and will not be exposed to residual asset
number of defaults in the Sukuk market. conditions of the Sukuk, the issuer risks but instead to the creditworthiness
The Sukuk market as a whole is still a will enter into a Wakalah agreement of PETRONAS, the sponsor of the
young and untested sector of the global with PETRONAS. The first leg of this transaction.
capital market. agreement will be an Ijarah (for at least
33% of the issued amount) and the The obligations of PETRONAS under
S&Ps role in this market is to second leg will be a Murabahah (for at the Sukuk terms and conditions are
provide investors and issuers with most 67% of the amount). Under the irrevocable and unconditional. Moreover,
its independent and objective credit Ijarah, PETRONAS Global Sukuk will they are expected to rank at the same
opinions based on transparent acquire beneficiary interests in several level as other unsubordinated obligations
methodology and rigorous analytical units of a refinery, located in the Malacca of PETRONAS. The sponsor will also
approach. S&P understands that some of region of Malaysia, from PETRONAS provide for the coverage of the costs
these risks relate to the principle of profit Penapisan (Melaka) (not rated), a wholly- related to the transaction for the benefit
and loss sharing in Islamic finance, which owned subsidiary of PETRONAS. The of the issuer.
requires participants in a transaction underlying assets for the Murabahah
to share not only the profits but also will be made of Shariah compliant The preliminary rating on the
the potential losses. We understand commodities. PETRONAS Sukuk is based on draft
that Shariah scholars over the past few documentation. Should final
years have requested a more stringent Periodic distributions of the Sukuk will documentation dier substantially from
application of this principle. Indeed, be covered through leasing charges, to the draft version, S&P could change its
the structures that are used today are be paid by PETRONAS in its capacity of rating on the Sukuk. S&P neither
dierent from the structures that were lessee, of the Ijarah assets. The principal structures Sukuk transactions nor
used a decade ago when the sponsor of the transaction will be covered through provides opinions with regards to
used to provide an unconditional the buy-back of the leasing assets at compliance of the proposed transaction
guarantee on the performance of the their acquisition price deflated by US$1 with Shariah nor provides any
Sukuk. Nevertheless, a higher profit/ million, which will be compensated by a recommendation to buy, hold or sell the
loss sharing could restrain the targeted US$1 million Murabahah mark up; and Sukuk.
investors base by excluding some fixed the buy-back of the Murabahah assets
income investors, and increase financing at their acquisition price. Under the Mohamed Damak is the global head of
costs compared with conventional Ijarah leg, a total loss event is possible. Islamic finance at Standard & Poors Ratings
products. However, PETRONAS has provided Services. He can be contacted at mohamed.
sucient contractual obligations to cover

20 18th March 2015


Much ado about Islamic inance

Much has been written about Islamic finance since the 2008 global financial crisis. Many practitioners and
academics felt Islamic finance oered the solutions to the problems of the global financial system. HUSSAIN
KURESHI however observes otherwise.

ISLAMIC FINANCE on his or her balances when the monies Islamic banks are hesitant to take an
placed in the bank are used to fund an equity share or stake in the businesses
By Hussain Kureshi
asset. Inherently, modern banking is a of their borrowers, primarily because
system of money creation. Depositors their depositors are not keen to lose their
Taken in by the much advertised
are rewarded with a pre-agreed interest principal amounts. Even in a contract of
wonders of Islamic finance, I took a
rate, and deposits are guaranteed by diminishing Musharakah, where Islamic
voluntary separation scheme from my
shareholders capital. Returns generated banks co-own a house with a customer,
employers and moved with kith and kin
by the investing depositors funds are and the customer slowly buys out the
to complete a Masters degree in Islamic
shared between the bank and capital share of the bank in the house and in the
providers. interim period pays rent to the bank for
staying in the house, the Islamic bank
My findings were, however, far dierent
does not record the ownership of the
than the claims. Islam as a religion
encourages trade, and discourages It seems house on its balance sheet as this would
incur huge capital charges under a Basel
strange that
lending. Islam also encourages various
market participants to share in the risks
inherent in an economic system and
discourages situations where one party to a inancial system It seems strange that a financial system
based upon concepts of asset ownership
a contract is not exposed to risks whereas
a counterparty is exposed to risks. Thus, based upon should meet the requirements and
standards of a system based upon rules
the borrower-lender relationship is
interpreted as inequitable as a lender is concepts of asset based upon credit and debt. The modern
financial system oers greater rights to
paid (principal plus interest), whether the
borrowers underlying asset or economic
ownership should lenders than it does to equity holders
as the claims of the latter are ultimately
enterprise earns the money to pay the
installment or not.
meet the residual. Lenders enjoy considerable

requirements and
rights especially in priority of payments
and in fact certain investors prefer to
What I found intriguing is how principles
of lending and debt were to be integrated
into the fabric of a banking system based
standards of a be lenders rather than equity holders in
upon Islamic principles. Rewarding system based upon I found it all the more confusing that
capital or investment was only one of the
issues. How could capital be mobilized rules based upon a Sukuk which is meant to be an
ownership certificate can be treated as
from customers, and how could the
returns generated from mobilizing these credit and debt a fixed income, debt instrument oering
investors rights of either equity holders
funds be shared by the bank and the
or lenders.
capital providers?
Nevertheless, what is most interesting
The conventional banking model
Islamic banking is no dierent (at least in certain Islamic banking liability
oers a simple solution. Shareholders
in practice). Funds are mobilized using products is that customers actually
provide the necessary capital to set up
contracts of safekeeping (Wadiah), do not deposit money into a bank. In
the infrastructure of a bank. A certain
agency (Wakalah), lending (Qard) and contracts of commodity Murabahah,
amount of capital is placed in statutory
profit-sharing placements (Mudarabah). customers actually buy a commodity
reserves and with regulators, and the
Customers are communicated an (on an exchange) for a spot market
remainder is invested in liquid financial
indicative rate of return or referred to price and then sell the same to a bank
assets to maintain a liquidity reserve.
an Islamic banks historical payouts for a deferred credit price. The bank in
The capitals main purpose is to act as a
on current and savings accounts in the turn sells the commodity back to the
buer for unexpected losses. Funds are
form of gift payouts or Hibah. Lending exchange at spot market prices. Thus, the
mobilized using the concept of deposits
is circumvented by not oering loans bank actually gets the money from the
where banks mobilize funds from
but by selling assets on a deferred credit exchanges account held with the bank,
individuals, households, corporations
basis, or by leasing assets to customers. and not the customer directly. If the same
and governments. These funds are
Nevertheless, Islamic banking, like structure is used for an asset product,
then lent to borrowers. The magic of
conventional banking, is a credit-based the facility disbursal stage actually
the banking model, or the concept
system and all the fundamentals of credit is executed by the customer and the
of deposits is that the customer who
analysis applies to Islamic banking.
provides the funds experiences no impact continued...

21 18th March 2015



commodity broker. the Kalash tribe reside (descendants of institutions and very few jobs are being
Greek origin; there is a Greek embassy created in this industry. Add to this
In the sequence of sale and purchase in the beautiful mountains as proof), I the role of shared services and Islamic
however, certain rather interesting bumped into a credit ocer from the banking windows hardly can hire more
opportunities of product development First MicroFinance Bank, another bank than 200 people.
emerge. A customer may buy a which functions primarily on ideological
commodity or asset in one currency (followers of Prince Karim Agha Khan) Islamic finance cannot remain a capital
and sell it to the bank in another. This and religious grounds in Pakistan. This markets baby for it to be meaningful
could mean depositing in US dollars and credit ocer braved a two-hour journey to a majority of Muslims who actually
getting returns in euros. The deferred which many would deem treacherous to do not even invest in capital markets
price in the second leg of the transaction the mountains, to merely have potential instruments. The focus needs to shift
can be calculated using a floating profit borrowers sign charge documents for to countries like Pakistan, Bangladesh,
rate, or developing a pre-agreed pricing loans of US$100 or equivalent to about and Indonesia to develop a brick and
mechanism such that a customer actually PKR10,000. Considerable eort for small mortar infrastructure across the depth
enjoys rights of a call option holder and sums. The focus of the First MicroFinance and breadth of these countries to bring
the bank enjoys certain rights of a put Bank was not the price of capital, but to the vast populations into the banking
option holder. This contract would be Bai whom capital was to be made available. folds. Brick and mortar branches create
Istijrar. Projects like fish farms and handicrafts jobs and financial mobility which itself
shops were financed so that the people of becomes a self-fulfilling prophecy. When
The discussion of Islamic finance is Kalash could become financially mobile. countries like Egypt, Syria, and Yemen
far from over, however, as a certain become stable, one can hope for a greater
approach to product development is role for Islamic banks.
needed such that new and innovative
products including hedging structures Islamic Even in the Takaful industry to date

are oered to customers. Islamic shipments of oil from Muslim countries
finance should also be open to hybrid are covered by conventional insurance
instruments that have features in
common with debt and equity, but the cannot remain a policies instead of by Takaful. It is
alarming to understand that with more
rights of the instrument holders should
be clearly specified. capital markets than one billion of a population and
close to US$3 trillion of what is known

If Islamic finance is in any way meant baby for it to be as a Halal industry, Takaful operators of
various countries cannot combine their
to cater to the needs of Muslims, one
must also face certain realities. Close to
meaningful to a capital to make a multinational mega
Takaful company. At least the Kaabah
600 million Muslims live in Bangladesh,
Pakistan and Indonesia. About 60% of
majority of should be covered by a Takaful policy.

the populations are linked to agriculture.

Yet Islamic finance has not developed
Muslims who Another danger facing Islamic finance
is a sense of localization. If Islamic
products that help farmers hedge their
risks, or commodity brokers to hedge
actually do not finance becomes a political flag waived
by governments or becomes a political
their risks so as to help bring goods even invest in tool to promote certain agendas then it
to market. Another 20% are involved will never come to market as a purely
in cottage industries and own small capital commercial product. Nor can its potential
and medium enterprises. Yet there is a be truly gauged. If Muslim countries
lack of focus on these sectors as again markets begin to treat their particular brand of

Islamic banks follow the same dictum of Islamic banking as the unique brand,
conventional banks when assessing the then standardization of products would
risks of financing in this sector. be unachievable.
If Islamic finance is going to make
It is hard to come up with data for headlines with Sukuk issuances alone, I certainly hope that as Malaysia
probability of default, as very few lets look at some facts. Many of these contributed to this eort of a cross-
companies in these sectors actually Sukuk are structured by the debt capital border financial system and as Dubai
maintain financial statements or audited markets departments of foreign banks makes eorts to become a hub for
books for any length of time to come up with a contribution from the Shariah inter-Islamic trade, we can see greater
with viable conclusions. How can Islamic advisors on the structuring of sale integration of markets and peoples across
banks steer away from the conventional and buy back or sale and lease back the Muslim world in the coming years.
methodologies to make this rather structures if not commodity Murabahah.
large population segment bankable? Much of the book running is done by the Hussain Kureshi is the head of mergers and
This need not be seen as an exercise in usual suspects such as Deutsche, Citi, acquisitions at Millennium Capital. He can
charity giving. I recall on a trip to Chitral, JPMorgan, etc. Very little in terms of be contacted at
Pakistan where a small community of revenue is trickling to Islamic financial

22 18th March 2015


Islamic inance in Ukraine: A new reality

While the country is going through dicult times of reforms and transition, Islamic finance appears to have
become an interesting and promising industry with significant potential for further development. In the absence
of prohibitive local restrictions and state authorities demonstrating flexibility, Islamic finance has good prospects
for development in Ukraine. ROUSTAM VAKHITOV and NARIMAN KIMSANOV analyze recent developments
in Ukraine.

By Roustam Vakhitov & Nariman

Until recently, Ukraine was not regarded

as a country with a particularly high
potential for Islamic finance.

Nevertheless, recent developments

suggest that this industry may be
developing rapidly in Ukraine and there
are several reasons for this:
1) An increase of the Islamic population
in mainland Ukraine.
2) A search for new markets for
agricultural export.
3) A need for external financing for New markets Preview of 2015
infrastructural and other reforms. The military conflict in eastern Ukraine Ukraine is yet to see its first Islamic
and a decrease of economic ties finance deals. However, equity or profit-

with Russia forced many Ukrainian sharing investments, as well as long-term
companies to search for new markets. leases, fit well into the domestic tax and

central and
Considering the consistent growth legal framework.
of the Muslim population across the

local governments world, Halal certification is becoming

more popular among export-oriented
Therefore eectively, there are no
obstacles for structuring Islamic

appear to be businesses. Likewise, such businesses are

more interested in Islamic trade financing
finance investments in Ukraine under
domestic legislation, although some

lexible enough to solutions. changes in domestic law might facilitate

development of Islamic finance further.
consider necessary Need for external inancing
Comprehensive reforms, refocusing from The major question is how to attract
changes to Russia to other markets and renovation
of existing, mainly Soviet-time
foreign investors to invest in Ukraine.
Considering the four to five times
legislation to infrastructure require significant foreign
financing. While the IMF and comparable
depreciation of local currency against the
euro over the year, the purchase price of
facilitate entities are regarded as primary sources local assets appears to be attractive.
of financing for ongoing reforms and
Islamic infrastructural renovation, Ukrainian At the same time, the local government is
yet to assure foreign investors that it will
central and local governments appear to
inance be flexible enough to consider necessary ensure the protection of their investments
into the country. At present, the
changes to legislation to facilitate Islamic
finance. government appears to be willing to
Increase of the indigenous build up a transparent and predictable
Islamic population Two Islamic finance seminars, conducted investment regime and if it succeeds, we
in Kiev in mid-2014 and in early 2015 may see Islamic finance investment, most
Following developments in Crimea in early
gathered significant attention of local likely in the agricultural sector, in the
2014, a significant number of Crimean
financial establishments, Islamic rather near future.
Tatars moved to Kiev and Ukrainian
regions near Crimea. Nowadays, there businesses, government-related agencies
and export-oriented businesses. Large Roustam Vakhitov is a partner at International
are much more businesses with Islamic
insurance and financial management Tax Associates and Nariman Kimsanov is a
origins in Kiev than ever. These businesses
companies are already looking to create partner at Quantum Property. They can be
are much more open to discussing and
Shariah compliant solutions in the field contacted at and
implementing Shariah compliant solutions.
of insurance and private pensions. respectively.

23 18th March 2015


S&P Dow Jones Quarterly Islamic Market Review

DOW JONES QUARTERLY Table 1: S&P Global BMI sector performance 4.1% respectively, outperforming their
REVIEW (2015 Feb YTD) conventional global benchmarks by
60bps and 30bps each. After substantially
By Michael Orzano Healthcare 6.9%
lagging the US in 2014, Asia-Pacific and
Materials 6.2%
Consumer Discretionary 5.7% European equity markets led developed
Islamic indices outperform
Telecom Services 5.1% markets for the first two months of the
conventional benchmarks through
Consumer staples 4.8% year and more than doubled the returns
first two months of 2015 Information technology 4.4% of the S&P 500. The Dow Jones Islamic
Asia and Europe lead global equity Industrials 3.7% Market Asia Pacific Index gained 6.4%
markets higher; US markets lag, but Financials 1.4% supported by particular strength in
remain positive Energy -0.2%
Utilities -2.6%
Japan. Meanwhile, the Dow Jones Islamic
MENA equity markets recover from
S&P global BMI 3.7% Market Europe rose 6.2% in US dollar
late 2014 swoon
Source: S&P Dow Jones Indices. Data as of the
terms despite continued strengthening of
27th February 2015. Calculations are based on the US dollar/euro exchange rate.
All major S&P Dow Jones Shariah
price return index levels in US dollar.
compliant benchmarks outperformed
After plummeting more than 25% in the
their conventional counterparts through Table 2: Comparative price returns fourth quarter of 2014, the S&P Pan Arab
the first two months of 2015 as financials (2015 Feb YTD) Composite Shariah gained 8% through
which are underrepresented in Islamic
S&P global BMI 4.2% 3.7% 0.6% the end of February. MENA equity
indices have been a sector laggard, and
DJIM World 4.1% 3.7% 0.3% markets were supported by strength in
information technology and health care S&P 500 3.1% 2.2% 0.9% the Saudi Arabia, which gained about
which tend to be overweight in Islamic   10% year-to-date through the 27th of
indices have outperformed the broader DJIM Europe 6.2% 6.2% 0%
market. DJIM Emerging Markets 3.7% 3.2% 0.5%
S&P Pan Arab Composite 8% 6.5% 1.5%
Michael Orzano is the director of Global
Through the end of February, the S&P Source: S&P Dow Jones Indices. Data as of the Equity Indices, S&Ps Dow Jones Indices.
Global BMI Shariah and Dow Jones 27th February 2015. Calculations are based on He can be contacted at michael.orzano@spdji.
Islamic Market World gained 4.2% and price return index levels in US dollar. com.

22nd 24th March 2015, DUBAI

This is a must-attend program for all those involved in, or preparing to be involved in Takaful. The course will suit those
working for Takaful operators, brokers, insurance companies, banks and consultancies. |

24 18th March 2015


discussions with the Dubai Supreme a capital-boosting Sukuk which will
Council of Energy about the issuance of not be convertible into ordinary shares,
green Sukuk. Furthermore, Latham & reported The Peninsula Qatar. The Sukuk
Telekom Malaysia not opting Watkins also confirmed in the report that shall be eligible for inclusion as Addition
for ringgit Sukuk it is working with the CEBC, the Gulf Tier 1 Capital in accordance with Basel
MALAYSIA: Malaysias national Sukuk and Bond Association and the CBI III, in compliance with Qatar Central
telecommunications company, Telekom to promote green Sukuk. Banks regulations. Proceeds from the
Malaysia, will select between a US Sukuk are suggested to fund the banks
dollar-denominated issuance or a euro- PETRONAS sets Sukuk price new projects and expansion plans.
denominated issuance for its debut According to the report, Abdulbasit
Sukuk, depending on pricing, according guidance Ahmed Al Shaibei, QIIBs CEO said that
to Bloomberg. The firm seeks to raise MALAYSIA: PETRONAS has set price the bank would first issue QAR1 billion
US$750 million from the Sukuk as guidance levels for its five-year Sukuk (US$274.47 million) and gradually raise
part of a debt program to fund capital Wakalah oered at a yield of around more as and when the bank requires it.
requirements. 135bps over US Treasuries, according to
Bloomberg. The tranche is a part of its US Masraf Al Rayan eyes Sukuk
dollar bonds program.
SIB prices Sukuk QATAR: Masraf Al Rayan is looking
UAE: Sharjah Islamic Bank (SIB) has Bank of America Merrill Lynch, CIMB, to tap the Sukuk market this year with
priced its US$500 million five-year Citigroup, JPMorgan and Morgan a benchmark issuance, according to
Sukuk, reported Reuters. According Stanley are the active joint bookrunners, Reuters. The bank has reportedly invited
to the newswire, the paper was priced along with Deutsche Bank, HSBC, bankers to pitch for arranger roles for
at a spread of 110bps over midswaps Maybank and MUFG as passive the potential US dollar-denominated
with a profit rate of 2.84%. Receiving bookrunners. oering, expecting to raise funds before
approximately US$3 billion-worth of the 30th April 2015.
orders, the Sukuk was sold after a series
Emirates Airline names banks
of investor meetings in Asia and Europe. Anakku makes irst issuance
Abu Dhabi Islamic Bank, Al Hilal Bank, to arrange Sukuk
Dubai Islamic Bank, Emirates NBD, under Sukuk program
UAE: Emirates Airline has selected eight
HSBC, KFH Investment and Standard banks to arrange a Sukuk that will be MALAYSIA: Asia Brands in an
Chartered were the arrangers for the guaranteed by Britains export credit announcement to Bursa Malaysia
deal. agency, UK Export Finance, reported conveyed that Anakku, its subsidiary,
Reuters. These banks are: Citigroup, has made the first issuance of RM100
million (US$27.01 million) in nominal
UAE to debut green-energy HSBC, JPMorgan and National Bank
value under the Sukuk program. The
of Abu Dhabi as the joint structuring
Sukuk agents, with Abu Dhabi Islamic Bank, program allocates a tenor of up to 15
UAE: The UAE is expected to issue the Dubai Islamic Bank, Emirates NBD and years from the date of the first issue of
worlds first Sukuk aimed at financing Standard Chartered also acting as joint the Sukuk. Proceeds from the issuance
green energy projects this year, possibly lead managers. will be utilized for Shariah compliant
as early as April, reported local purposes only, which among others,
news portal, The National. London- will be to finance investment activities,
based Climate Bonds Initiative (CBI) QIIB gets approval for Sukuk capital expenditure, working capital
highlighted that they are looking to QATAR: Qatar International Islamic requirements, and other general
roll out up to two issuances in the UAE Bank (QIIB) has received the approval corporate purposes of the issuer and/or
in April. The countrys Clean Energy from its general assembly to raise up to its related companies.
Business Council (CEBC) has been in QAR3 billion (US$823.4 million) through

DEAL TRACKER Full Deal Tracker on page 31

Apr-15 Masraf Al Rayan TBA Sukuk 17th March 2015
TBA Emirates Airline TBA Sukuk 16th March 2015
As early as April 2015 Government of UAE TBA Green energy 12th March 2015
Before June 2015 BNI Syariah IDR500-750 billion Sukuk 10th march 2015
TBA Treet Corporation PKR539.51 million Sukuk 9th March 2015
2015 Government of Hong Kong US$500 million-1 Sukuk 9th March 2015
Before end of April Emirate of Ras Al Khaimah TBA Sukuk 5th March 2015
End of March National Shipping Company of SAR3.9 billion Sukuk 5th March 2015
Saudi Arabia
TBA Sharjah Islamic Bank TBA Sukuk 4th March 2015

25 18th March 2015


products from the country over the next with Mashreq and Emirates NBD are
three years. reportedly bidding to buy Citis Egypt
consumer banking network. Citi has been
ITFC inances Egypts
petroleum industry ADIB eyes Citis Egypt leaving countries where it no longer has
a competitive edge, while UAE lenders
EGYPT: The International Islamic Trade business are expanding into nearby emerging
Finance Corporation (ITFC) and the EGYPT: Abu Dhabi Islamic Bank (ADIB) markets to boost earnings amid slower
Egyptian General Petroleum Corporation has been shortlisted as a buyer for growth at home.
have signed a US$3 billion agreement Citigroup (Citi)s Egypt retail business,
with Egypt agreeing to import petroleum reported The National. The bank, along

the industry, while encouraging more subsidiary, IBA-Moscow. The bank has
Malaysians to secure the insurance identified Islamic instruments which
and Takaful protection that they need. meet the requirements of Russian
NBP Aitemaad plans Major components of the reforms were legislation (leasing, purchasing of
expansion the Life Insurance and Family Takaful equipment and real estate), and the circle
PAKISTAN: National Bank of Pakistans Framework and the New Motor Cover of potential partners among customers
Islamic banking unit, NBP Aitemaad, Framework. of the IBA-Moscow. It has also formed
plans to convert 15 of its parents the circle of potential investors (mainly
conventional branches every quarter, Consolidation still discussed private investment funds from Dubai).
with an objective of having 100 Aitemaad IBA-Moscow is set to provide US$20-
branches by the end of 2015, according to in Malaysia 30 million-worth of Islamic financing
the Pakistan Observer. The bank has been MALAYSIA: RAM Ratings in a statement facilities to its customers and has enough
expanding its Islamic banking operations to IFN said that it still sees consolidation reserves to provide such financing
since its inception in 2013 by opening potential for the Malaysian Islamic without violating existing covenants. If
new branches and converting existing banking industry as the smaller players needed, the bank can use the guarantees
branches. scale up in order to remain competitive. of its parent company.
We believe the creation of an Islamic
Malaysias Islamic market bank with greater financial clout and Changes at KFH in Malaysia
reach is still on the agenda, observes
share Wong Yin Ching, co-head of financial MALAYSIA: IFN understands that
MALAYSIA: According to Bank Negara institution ratings. According to the KFH (Kuwait Finance House) Research
Malaysia (BNM)s annual report, Islamic rating agency, although the plan to form has closed as a separate entity and the
banking assets in 2014 grew by 12% and an enlarged Islamic entity involving remnants moved in-house, with some
now account for 25.6% of the countrys CIMB Islamic Bank, RHB Islamic Bank activities terminated and a few key
total banking system assets. Foreign and Malaysian Building Society fell players remaining with a new research
currency assets increased to RM27.7 through this year, industry consolidation and innovation department within the
billion (US$7.47 billion), reflecting the continues to be widely discussed. main KFH institution.
growing importance of cross-border
transactions in Islamic finance, said the IBA meets potential Russian Jakarta to host IFSB seminar
central bank.
customers INDONESIA: The Islamic Financial
Services Board (IFSB) in a press release
In terms of insurance and Takaful, AZERBAIJAN: International Bank of announced that it is organizing an
reforms to promote competition, address Azerbaijan (IBA) conducted negotiations IFSB Seminar on Enhancing Financial
pricing distortions and improve value to with the customers of IBA-Moscow Inclusion through Islamic Finance on the
policyholders continued to be a priority Bank on Islamic financing services on 31st March 2015 in Jakarta. The seminar is
for the central bank. BNM conveyed the 13th March 2015, reported local news held in conjunction with the IFSB Annual
that the reforms would contribute portal ABC.AZ. The bank has reportedly Meetings and Side Events 2015, which
towards the long-term sustainability of made all necessary preparatory work to are hosted by Bank Indonesia.
open an Islamic window in its Russian

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26 18th March 2015


EUROPE The UKs agriculture

inancing potential
Ireland acknowledges Islamic
inance potential
Gatehouse Banks new UK: In a study conducted by Shariyah IRELAND: The government of Ireland
shareholder Review Bureau, it was found that 50% in its five-year strategy document:
UK: Gatehouse Bank in a press release of agriculture asset managers in the UK IFS 2020 a Strategy for Irelands
announced Threadneedle Investments are ready to oer Shariah compliant International Financial Services
as a new shareholder in the Islamic agriculture investments, reported Trade Sector 2015-2020, highlighted Islamic
bank. Threadneedle, an international Arabia. Several respondents further finance as a potentially lucrative area
asset manager based in London with believed that certifying their funds as for development. Other segments
assets under management of US$148.2 Shariah compliant was in alignment with mentioned included: green finance,
billion, has acquired a shareholding of their objective of administering ethical aircraft leasing, securitization, and
approximately 2% in Gatehouse. funds. financial technology.

rating methodologies for structured positive rating impact on structured
finance securities, to incorporate a new finance transactions. In the coming
counterparty risk assessment that it days, Moodys will issue separate
Tatarstan looking at stronger has introduced for banks as part of its announcements that will provide details on
Russian-Iranian ties revised bank rating methodology. The these implications, expecting to conclude
GLOBAL: Tatarstan is placing a special updates to the structured finance rating the majority of the structured finance
focus on expanding bilateral ties with methodologies will generally have a rating reviews in the first half of 2015.
Iran, through the latters East Azerbaijan
Province particularly in the economic,
technical and engineering fields,
according to Tatar president Rustam
Minnikhanov, reported Islamic Republic
News Agency.

Morgan Lewis expands to

GLOBAL: Legal firm Morgan, Lewis
& Bockius informed IFN that it has
merged with Singapores Stamford Law
Corporation, which will provide the
firm with the opportunity for greater
integration with its Islamic finance
practice in Dubai. According to the
global firm, Singapore will act as a center
for further expansion in Southeast Asia
and the Indian markets.

IDB provides for

infrastructure developments
GLOBAL: The IDB has approved more
Unrivalled knowledge. Unique solutions.
than US$718.6 million of funding for
infrastructure development projects in
member countries, according to a press
In the Middle East, Maples and Calder offers clients a wide
release. The bank has provided for Recognised as the leading range of legal services including advising on offshore fund
important sectors such as roads, power law firm on Cayman formation and Sharia compliant finance structures.
generation, water supply and sanitation, Islands, British Virgin
MaplesFS brings deep industry leadership for fiduciary,
agriculture, and rural development in Islands and Irish law, corporate governance and fund administration services
Turkey, the Sultanate of Oman, Uganda, Maples and Calder has that meet the demanding standards you expect.
Uzbekistan, Cote dIvoire, Benin and been ranked Best Law
Our highly qualified professionals have been involved in
Yemen as well as technical assistance for Firm of the year in many of the most innovative Islamic finance transactions
Bahrain. Offshore Finance for three and are here to help you achieve your objectives.
consecutive years by
Moodys updated rating Islamic Finance News.
Tahir Jawed
GLOBAL: Moodys in a press release
+971 4 360 4070
announced that it has updated several
cross-sector, primary and secondary

27 18th March 2015


coverage as well as robust pre-provision principal at the end of two years. The
earnings and capitalization. The Tier 1 said index includes companies such as
capital ratio of UAE banks stood at 16.2% Samsung, Hyundai, Petronas, LG, and
QIB opens new branch as at end-December 2014. MTN.
QATAR: Qatar Islamic Bank (QIB) has
launched a new branch at the Pearl-
Qatar, as part of its expansion strategy, Probable Qatari listings United Finance receives
according to a press release. The new QATAR: Qatar Exchanges CEO, Rashid another merger proposal
branch is located in Medina Centrale al-Mansoori expects to see the listing of OMAN: United Finance Company, which
City, Al Hamra Street, Gate 9, the town Barwa Bank and Qatar First Bank in 2015 is exploring a potential merger with
center of the Pearl-Qatar. subject to regulatory approval, reported Bank Nizwa, in an announcement to the
Reuters. The exchange is also said to be Muscat Securities Market has disclosed
working with the central bank to set up
BBK open to buying Shariah a market for corporate bonds in the next
that the company had received a letter
from Al Omaniya Financial Services
banks two years. expressing their interest in exploring the
BAHRAIN: Although BBK does not possibility of an acquisition or a merger
have any immediate plans to venture AAOIFI and IASB collaborates between the two entities. According
into the Shariah compliant banking to the statement, the matter has been
BAHRAIN: Following an initiative
sector, the bank is keen to consider communicated to the board of directors
taken by the Accounting and Auditing
acquiring Islamic banks if there are and further disclosure concerning this
Organization for Islamic Financial
feasible opportunities available, reported matter will be made as and when there
Institutions (AAOIFI) to strengthen
Gulf Daily News quoting BBK chairman are developments to report.
cooperation and integration with the
Murad Ali Murad.
International Accounting Standards
Board (IASB), the AAOIFI in a press Capital increase for Islamic
KFH-Bahrain now offering release announced that it is set to Holding Group
new service organize an outreach meeting with the
QATAR: The board of directors of Islamic
BAHRAIN: Kuwait Finance House IASB on the 9th April 2015 in Manama,
Bahrain. The outreach meeting will Holding Group in an announcement
Bahrain (KFH-Bahrain) in a press to the Qatar Stock Exchange has
release announced the launch of its discuss issues that Islamic financial
institutions may need to address in recommended to increase capital by 50%
wealth management service oering of the current capital to QAR60 million
new premium investment and asset applying IFRS 9 Financial Instrument (a
standard issued by the IASB that deals (US$16.46 million), distributed in six
management services which will focus on million shares, according to the nominal
a unique segment of customers. with, among others, classification and
measurement of financial assets) for their value of shares QAR10 (US$2.74) plus
financial reporting. bonus. The capital increase will be
UAE lending growth to slow determined in coordination with the
down ADIBs new investment
Ministry of Economy and Commerce
after the approval of the extraordinary
UAE: RAM in a statement said that it offering general assembly of shareholders.
expects loan growth of the UAE banking
sector to moderate to 6-7% from 8% in UAE: Abu Dhabi Islamic Bank (ADIB),
2014, if oil prices remain at current low in a press release has announced the Alizzs new credit card
levels. The ratings agency pointed out oering of a new 100% capital-protected OMAN: Alizz Islamic Bank and
that the second restructuring of Dubai note that gives investors exposure to MasterCard has launched the countrys
World debt; coupled with the completion emerging market equities. Available until first Shariah compliant World Elite
of Dubai Groups restructuring last year the 21st March 2015, the two-year Shariah MasterCard credit card, according to
removed some near-term uncertainties compliant note is specifically tailored for local paper Muscat Daily. The credit card
for UAE banks. RAM also added that risk-averse investors looking to diversify targets the evolving requirements of the
the persistently low oil prices will aect their portfolio with access to high-growth ultra-high-net-worth auent segment
sentiment, especially in the real estate economies. The note is linked to the in Oman and oers exclusive dining,
and equity markets, which could in performance of the Emerging Market traveling and shopping experiences to
turn lead to asset-quality issues. In the SGIXWES Index, which represents 75 cardholders, in addition to providing
event of a credit downturn, UAE banks of the most attractive Shariah stocks and access to prestigious venues and global
will be well buered by sound loan-loss protects the investor by repaying the events.

Capital Market Authority and a member
Receive all the latest news via the No.1 Islamic nance based feed
of the Al-Baraka Banking Group, has
paid out 3.5% in cash dividends to

MANAGEMENT investors in its Real Estate Income Fund-

II (REIF-II), representing the second
Itqan distributes proits dividend payout, totaling 7% for the full
SAUDI ARABIA: Itqan Capital, an year, according to Arab News.
investment company licensed by the

28 18th March 2015


million) of investment revenues and value of the firms investment portfolio
others. accrued by 5.7% to SAR709 million
(US$188.97 million).
Bank Asya
TURKEY: Embattled Shariah compliant BIMB Holdings
Bank Asya has suered a net loss of MALAYSIA: BIMB Holdings, the parent Amlak Finance
TRY877 million (US$334.47 million) in of Bank Islam, in a statement to IFN UAE: Shariah compliant mortgage
2014 due to shrinking loans and deposits, confirmed that it realized a consolidated provider Amlak Finance realized a
reported Reuters. Loan loss provisions profit before Zakat and taxation of AED59 million (US$16.06 million) net
reached TRY1.45 billion (US$553 million) RM815.4 million (US$221.03 million) profit attributable to equity holders,
last year, almost half of which came in for the 12-month period ending the 31st according to a press release. Total assets
the final quarter. Bank Asya wrote o December 2014, 0.5% lower than the declined to AED7.3 billion (US$1.99
TRY943 million (US$359.65 million)- year before mainly due to the RM68.2 billion) last year, from almost AED16
worth of loans in 2014 while its loans million (US$18.49 million) financing billion (US$4.36 billion) in 2008.
and deposits declined 24% and 12% cost of Sukuk raised to partly fund the According to The National, Amlak
respectively in the last quarter. 49% equity acquisition in Bank Islam in Finance will resume the trading of its
December 2013. Bank Islam registered shares next month.
a pre-Zakat and tax profit of RM702.8
Alinma Tokio Marine
million (US$190.5 million) in 2014, Ajman Bank
marking a 3.8% year-on-year growth.
UAE: Islamic financier Ajman Banks
SAUDI ARABIA: Alinma Tokio Marine
latest financial documents show that
Company in a bourse filing confirmed Alkhabeer Capital the bank made a net profit of AED71.4
a pre-Zakat net loss of SAR1.54 million
SAUDI ARABIA: Asset manager million (US$19.44 million) in 2014,
(US$410,467) for the month of February,
Alkhabeer Capital in a press release almost seven times more than the
with net loss before Zakat for the
reported a 2014 net income of SAR57.3 AED10.6 million (US$2.88 million) profit
first two months of the year reaching
million (US$15.27 million), 32.3% higher registered the year before. Total assets
SAR3.69 million (US$983,523). As a
than the previous year. Total assets under stood at AED11.23 billion (US$3.06
result, accumulated losses as at February
management grew 34% to SAR3.3 billion billion) for the 12-month period ending
2015 have reached SAR115.27 million
(US$879.54 million), while the market the 31st December 2014.
(US$30.72 million), or 57.64% of the
companys capital.

UAE: Dubai Financial Market (DFM)
according to a statement recorded a net
profit of AED759.3 million (US$206.67
million) for the year 2014, compared to
AED284.6 million (US$77.47 million)
in 2013. Total revenues increased 107%
year-on-year to AED936.7 million
(US$254.98 million) last year. The total
revenue comprised of AED879.7 million
(US$239.46 million) of operational
revenues and AED57 million (US$15.52
22nd 23rd March 2015, Dubai

TAKAFUL What You Will Learn?

Better understanding of International Best Practices in An overview of some very basic concepts pertaining to
Takaful advisory council for Regulation, Corporate Governance, AML, Sanctions & corporate governance and various regulations, that are
overshadowed by the focus on its application in day to day
Nigeria Some key regulatory impacts on the business and how to activities
NIGERIA: The minister of state for manage them in compliance with the applicable rules and Methods to put Corporate Governance in practice
finance, Alhaji Bashir Yuguda, has legislation
inaugurated an advisory council for
Nigerias Takaful segment, to be headed
by Professor Dawud Noibi as chairman,
reported news portal This Day Live.

Dar Al Takaful targets SMEs

UAE: Dar Al Takaful according to the
Khaleej Times has launched a new
product, known as Himaya, targeted at
SMEs in the UAE.

29 18th March 2015


from MHBs stand-alone rating based on
MARCs assessment on the likelihood of
moderate support from MHBs ultimate
Qatari banks ratings parent, PETRONAS.
QATAR: Fitch in a recent statement TSHs Sukuk rated
upgraded the long-term issuer default
MALAYSIA: MARC in a statement has
ratings (IDR) of Commercial Bank of
accorded a rating of AAAIS(fg) to TSH
Qatar, Doha Bank, Qatar Islamic Bank,
Sukuk Musyarakah (TSH Musyarakah)s
Al Khalij Commercial Bank, Qatar
RM100 million (US$27.01 million)
International Islamic Bank and Ahli Bank
guaranteed Islamic medium-term notes
to A+ from A. Fitch also upgraded
program, with a stable outlook. The
Qatar National Banks long-term IDR to
armed rating and outlook are based
AA- from A+ and its short-term IDR to
on the unconditional and irrevocable
F1+ from F1. The outlooks on all the
financial guarantee insurance provided
long-term IDRs are stable.
by Danajamin Nasional which carries
MARCs financial strength rating of
Turkeys ratings reafirmed AAA/stable. TSH Musyarakah is
TURKEY: The Islamic International a special purpose funding vehicle
Rating Agency (IIRA) according to a incorporated to facilitate the issuance of
statement to IFN has rearmed the notes under the Sukuk Musharakah for
foreign currency sovereign ratings of its parent company, TSH Resources.
the Republic of Turkey at BBB-/A-3 and
the local currency sovereign ratings at The rating agency also accorded MARC-
Too many pieces
BBB/A-3. The ratings assigned to the
Republic are supported by sustained
1IS/AA-IS ratings to TSH Sukuk Ijarah
(TSH Ijarah)s RM100 million (US$27.01
in the puzzle?
fiscal discipline and ecient borrowing million) Sukuk Ijarah commercial papers Let IFN put it together for you.....
strategies which have translated into and RM300 million (US$81.03 million)
an improved debt profile which is Sukuk Ijarah medium-term notes
reflected in reduced sensitivity to foreign programs with a stable outlook. As at the
exchange and interest rate risks along 3rd March 2015, TSH Ijarah has RM240.0
with a lengthening maturity profile. million (US$64.83 million)-worth of
outstanding notes.
MHBs Sukuk program
receives rating PETRONASs Sukuk receives
MALAYSIA: MARC in a statement has rating
assigned a final rating of AA-IS with a MALAYSIA: Moodys in a statement
has assigned a definitive A1 rating to
stable outlook on Malaysia Marine and
Heavy Engineering Holdings (MHB)s PETRONASs US$1.25 billion 2.71%
Sukuk Murabahah program of up to Sukuk due 2020, issued through
RM1 billion (US$270.11 million). The PETRONAS Global Sukuk. The outlook
rating incorporates a one-notch uplift on the ratings is stable.

compliance ocer, according to a press manager head of branches, retail
release. In Indonesia, Tigor M Siahaan banking, according to Times of Oman.
has been nominated as president director Yousuf joins the bank with more than 20
Bank Negara Malaysia of CIMB Niaga, succeeding Arwin years of experience working in the retail
MALAYSIA: Bank Negara Malaysia has Rasyid who has expressed his intention banking sector and has worked with
appointed Dr Noor Azlan Ghazali and to retire. Bank Muscat and HSBC.
Dr Yeah Kim Leng as external members
of its Monetary Policy Committee for a
term of two years eective the 1st April Prime Bank AAOIFI
2015, the central bank announced on its BANGLADESH: Touhidul Alam BAHRAIN: AAOIFI has elected former
website. Khan informed IFN that he has joined Bahraini minister of housing, Shaikh
Prime Bank (which operates Hasanah Ebrahim Khalifa Al Khalifa as the
Islamic Banking) as its deputy managing chairman of its board of trustees and
CIMB Group director. Sheikh Saleh Abdulla Kamel, the
GLOBAL: CIMB Group, the parent president of Saudi Arabias Dallah
company of CIMB Islamic, has appointed
Eendy Shahul Hamid as CEO of Group Ahlibank Albaraka Group, as vice-chairman of
the trustee board, according to a press
Asset Management & Investments, OMAN: Yousuf Al Rawahi has been release.
and Kwan Keen Yew as group chief appointed as Ahlibanks deputy general

30 18th March 2015


Expected date Company's name Size Structure Announcement Date

Apr-15 Masraf Al Rayan TBA Sukuk 17th March 2015
TBA Emirates Airline TBA Sukuk 16th March 2015
As early as April Government of UAE TBA Green energy Sukuk 12th March 2015
Before June 2015 BNI Syariah IDR500-750 billion Sukuk 10th march 2015
TBA Treet Corporation PKR539.51 million Sukuk 9th March 2015
2015 Government of Hong Kong US$500 million-1 billion Sukuk 9th March 2015
Before end of April Emirate of Ras Al Khaimah TBA Sukuk 5th March 2015
End of March National Shipping Company of Saudi SAR3.9 billion Sukuk 5th March 2015
TBA Sharjah Islamic Bank TBA Sukuk 4th March 2015
TBA Tulip Maple US$750 million Sukuk 4th March 2015
6th March 2015 Government of Malaysia RM100 million Islamic Treasury Bills 4th March 2015
Mid-2015 Central Bank of Oman OMR200 million Sukuk 2nd March 2015
TBA Khazanah Nasional RM1 billion Sukuk 27th February 2015
2015 Gulf Finance House US$230 million Sukuk 26th February 2015
2015 Garuda Indonesia US$500 million Sukuk 25th February 2015
TBA IDB TBA Sukuk 25th February 2015
TBA Qatar Islamic Bank QAR5 billion Sukuk 23rd February 2015
11th March 2015 Government of Indonesia IDR5 billion Sukuk 23rd February 2015
TBA Al Baraka Bank TBA Sukuk 17th February 2015
18th February 2015 Turkish Treasury TRL1.8 billion Sukuk Ijarah 17th February 2015
TBA Government of Malaysia TBA Sukuk 16th February 2015
2016 Government of South Africa TBA Sukuk 13th February 2015
3 quarter 2015 SGI-Mitabu AU$150 million Sukuk 13th February 2015
TBA Petroliam Nasional (Petronas) US$ 7 billion Sukuk 12th February 2015
TBA Abu Dhabi Islamic Bank TBA Sukuk 11th February 2015
TBA Qatar International Islamic Bank QAR3 billion Sukuk 10th February 2015
10 February 2015 Government of Indonesia IDR2 trillion Sukuk 5th February 2015
TBA BNI Syariah IDR500 billion Sukuk 3rd February 2015
TBA K-Electric PKR22 billion Sukuk 3rd February 2015
6 February 2015 Bank Negara Malaysia US$100 million Islamic Treasury Bills 2nd February 2015
TBA Emirates Airline US$1 billion Sukuk 30th January 2015
TBA Qatar Islamic Bank QAR2 billion Sukuk 19th January 2015
1st quarter 2015 Bank Islami Pakistan PKR3.5 billion Sukuk 15th January 2015
TBA Pakistan Mobile Communications PKR6.9 billion Sukuk 14th January 2015
2015 International Bank of Azerbaijan TBA Sukuk 13th January 2015
3rd quarter 2015 Government of Tunisia US$500 million Sukuk 13th January 2015
Feb-15 Government of Jordan TBA Sukuk 6th January 2015
TBA Turkiye Finans TRY71 million Sukuk 5th January 2015
TBA Turkiye Finans TRY143 million Sukuk 5th January 2015
2015 Government of Indonesia IDR7.14 trillion Sukuk 15th December 2014
TBA UniTapah RM600 million Sukuk 9th December 2014
Apr-15 Government of Indonesia IDR20 trillion Sukuk 4th December 2014
H2 2015 Government of Indonesia TBA Sukuk 3rd December 2014
2015-16 Government of Kenya TBA Sukuk 2nd December 2014
TBA KPJ Healthcare RM1.5 billion Sukuk 28th November 2014
TBA ICD US$1.2 billion Sukuk 27th November 2014
Q2 2015 Khazanah Nasional TBA Sukuk 26th November 2014
2 December 2014 Indosat IDR2.5 trillion Sukuk + conventional 13th November 2014

31 18th March 2015


REDmoney Asia ex. Japan 6 Months REDmoney Europe 6 Months

All Cap Large Cap Medium Cap Small Cap All Cap Large Cap Medium Cap Small Cap
1600 1200

1410 1120

1220 1040

1030 960

840 880

650 800
Oct Nov Dec Jan Feb Mar Oct Nov Dec Jan Feb Mar

REDmoney GCC 6 Months REDmoney Global 6 Months

All Cap Large Cap Medium Cap Small Cap All Cap Large Cap Medium Cap Small Cap
1300 1600

1140 1416

980 1232

820 1048

660 864

500 680
Oct Nov Dec Jan Feb Mar Oct Nov Dec Jan Feb Mar

REDmoney MENA 6 Months REDmoney US 6 Months

All Cap Large Cap Medium Cap Small Cap All Cap Large Cap Medium Cap Small Cap
1150 2250

1020 1960

890 1670

760 1380

630 1090

500 800
Oct Nov Dec Jan Feb Mar Oct Nov Dec Jan Feb Mar

SAMI Halal Food Participation (All Cap) 6 months






Oct-2014 Nov-2014 Dec-2014 Jan-2015 Feb-2015 Mar-2015

32 18th March 2015


REDmoney Global Shariah Index Series (All Cap) 6 Months REDmoney Global Shariah Index Series (Large Cap) 6 Months
REDmoney Asia ex. Japan REDmoney Global REDmoney Asia ex. Japan REDmoney Global
REDmoney Europe REDmoney MENA REDmoney Europe REDmoney MENA
REDmoney GCC REDmoney US REDmoney GCC REDmoney US
1400 1300

1230 1130

1060 960

890 790

720 620

550 450
Oct Nov Dec Jan Feb Mar Oct Nov Dec Jan Feb Mar

REDmoney Global Shariah Index Series (Medium Cap) 6 Months REDmoney Global Shariah Index Series (Small Cap) 6 Months
REDmoney Asia ex. Japan REDmoney Global REDmoney Asia ex. Japan REDmoney Global
REDmoney Europe REDmoney MENA REDmoney Europe REDmoney MENA
REDmoney GCC REDmoney US REDmoney GCC REDmoney US
2250 2000

1900 1700

1550 1400

1200 1100

850 800

500 500
Oct Nov Dec Jan Feb Mar Oct Nov Dec Jan Feb Mar

REDmoney Global Shariah

Equities are considered eligible for inclusion Utilities Basis Materials
Telecomunication Services 2% 15%
into the REDmoney Global Shariah Index 2%
Series only if they pass a series of market Consumer Goods Services
related guidelines related to minimum market Technology
capitalization and liquidity as well as country 14%
Once the index eligible universe is determined Non-Cyclical
Consumer Goods Services
the underlying constituents are screened 7% Financials
using a set of business and financial Shariah 4%
guidelines. Industrials Healthcare
22% 11%

The REDmoney Global Shariah Index Series powered by IdealRatings consists of a rich subset of global listed equities that adhere to clearly
defined and transparent Shariah guidelines defined by Shariyah Review Bureau in Jeddah, Saudi Arabia.

The REDmoney Shariah Indexes provides Islamic investors with an accurate and Shariah-specific equity performance benchmark with optimized
compliance credibility due to the intensive research conducted to ensure that index constituents do not conflict with the defined Shariah

IdealRatings is the leading provider of Shariah investment decision support tools to investors globally, including asset managers, brokers, index
providers, and banks to empower them to develop, manage and monitor Shariah investment products and Shariah compliant funds. IdealRatings
is headquartered in San Francisco, California. For more information about IdealRatings visit:

For further information regarding REDmoney Indexes contact:

REDmoney Global Shariah Index Series
Andrew Morgan
Managing Director, REDmoney Group
RED Email:
Tel +603 2162 7800

33 18th March 2015


Eurekahedge Islamic Fund Index




Index Values















Top 10 Yield-to-Date Returns for ALL Funds
Fund Fund Manager Performance Measure Fund Domicile
1 Al-Mubarak Pure Saudi Equity Arab National Bank 12.21 Saudi Arabia

2 RHB-OSK Dana Islam RHB Asset Management 11.59 Malaysia

3 FALCOM Saudi Equity FALCOM Financial Services 11.56 Saudi Arabia

4 AmPrecious Metals AmInvestment Management 10.40 Malaysia

5 Al Rajhi Local Shares Al Rajhi Bank 10.20 Saudi Arabia

6 AlAhli Saudi Trading Equity The National Commercial Bank 10.04 Saudi Arabia

7 Atlas Pension Islamic - Equity Sub Atlas Asset Management 9.59 Pakistan

8 Eastspring Investments Asia Pacific Shariah Eastspring Investments 9.47 Malaysia

9 Atlas Islamic Stock Atlas Asset Management 9.15 Pakistan

10 Riyad Equity 2 Riyad Bank 8.53 Saudi Arabia

Eurekahedge Islamic Fund Index 3.35

Based on 68.66% of funds which have reported February 2015 returns as at the 16 March 2015

Top 3 Real Estate Funds by 3 Months Returns

Fund Fund Manager Performance Measure Fund Domicile
1 Oasis Crescent Global Property Equity Oasis Global Management Company (Ireland) 3.00 Ireland

2 Markaz Real Estate Kuwait Financial Centre (Markaz) 2.51 Kuwait

3 Al-'Aqar KPJ REIT AmMerchant Bank -0.71 Malaysia

Eurekahedge Islamic Fund Index (1.94)

Based on 100.00% of funds which have reported January 2015 returns as at the 16 March 2015

Comprehensive data from Eurekahedge will now feature the overall top 10 global and regional funds based on a specific duration (yield to date, annualized returns,
monthly returns), Sharpe ratio as well as delve into specific asset classes in the global arena equity, fixed income, money market, commodity, global investing (which
would focus on funds investing with global mandate instead of a specific country or geographical region), fund of funds, real estate as well as the Sortino ratio. Each table
covering the duration, region, asset class and ratio will be featured on a five-week rotational basis.

34 18th March 2015


Eurekahedge Islamic Fund Balanced Index over the last 5 years Eurekahedge Islamic Fund Balanced Index over the last 1 year

130 105
120 103

110 102

105 101
95 100













Top 10 Sharpe Ratio for ALL Funds since Inception

Fund Fund Manager Performance Measure Fund Domicile
1 Meezan Tahauz Pension - Money Market Sub Al Meezan Investment Management 8.95 Pakistan

2 Meezan Tahauz Pension - Debt Sub Al Meezan Investment Management 5.13 Pakistan

3 Atlas Pension Islamic - Debt Sub Atlas Asset Management 4.89 Pakistan

4 Public Islamic Money Market Public Mutual 4.82 Malaysia

5 PB Islamic Cash Management Public Mutual 3.82 Malaysia

6 Al Rajhi Commodity Mudarabah - USD Al Rajhi Bank 2.38 Saudi Arabia

7 PB Islamic Cash Plus Public Mutual 2.20 Malaysia

8 Commodity Trading - SAR Riyad Bank 2.10 Saudi Arabia

9 PB Islamic Bond Public Mutual 1.88 Malaysia

10 Public Islamic Income Public Mutual 1.83 Malaysia

Eurekahedge Islamic Fund Index 0.16

Based on 68.66% of funds which have reported February 2015 returns as at the 16th March 2015

Top 5 Fund of Funds by 3 Months Returns

Fund Fund Manager Performance Measure Fund Domicile
1 Al Yusr Aman Multi Asset Saudi Hollandi Bank 6.66 Saudi Arabia

2 AlManarah High Growth Portfolio The National Commercial Bank 1.28 Saudi Arabia

3 AlManarah Conservative Growth Portfolio The National Commercial Bank 0.83 Saudi Arabia

4 Al Rajhi Multi Asset Balanced Al Rajhi Bank -1.93 Saudi Arabia

5 Al Yusr Mizan Multi Asset Saudi Hollandi Bank -2.90 Saudi Arabia

Eurekahedge Islamic Fund Index (1.67)

Based on funds which have reported January 2015 returns as at the 16th March 2015

Contact Eurekahedge
To list your fund or update your fund information:
For further details on Eurekahedge: Tel: +65 6212 0900

Copyright Eurekahedge 2007, All Rights Reserved. You, the user, may freely use the data for internal purposes and may reproduce the index data provided that
reference to Eurekahedge is provided in your dissemination and/or reproduction. The information is provided on an as is basis and you assume and will bear all
risk or associated costs in its use, and neither Islamic Finance news, Eurekahedge nor its aliates provide any express or implied warranty or representations as to
originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for any purpose.

35 18th March 2015


Most Recent Global Sukuk

Priced Issuer Nationality Instrument Market US$ (mln) Managers
11th Mar 2015 Petronas Global Malaysia Sukuk Euro market 1,250 JPMorgan, Deutsche Bank, Morgan Stanley,
Sukuk public issue HSBC, Maybank, Mitsubishi UFJ Financial
Group, CIMB Group, Citigroup, Bank of
America Merrill Lynch
10th Mar 2015 Sharjah Islamic UAE Sukuk Euro market 500 Standard Chartered Bank, HSBC, Kuwait
Bank public issue Finance House, Dubai Islamic Bank, Abu
Dhabi Islamic Bank, Emirates NBD, Al Hilal
Bank, Noor Bank
5th Mar 2015 IDB Trust Services Saudi Arabia Sukuk Euro market 1,000 Saudi National Commercial Bank, Standard
public issue Chartered Bank, HSBC, National Bank of
Abu Dhabi, RHB Capital, Dubai Islamic
Bank, Gulf International Bank, Natixis, CIMB
2nd Mar 2015 AmIslamic Bank Malaysia Sukuk Domestic market 332 AmInvestment Bank
public issue
28th Jan 2015 National Higher Malaysia Sukuk Domestic market 139 Maybank, CIMB Group
Education Fund public issue
22 Jan 2015 Danga Capital Malaysia Sukuk Domestic market 445 RHB Capital
public issue
14th Jan 2015 Dubai Islamic Bank UAE Sukuk Euro market 1,000 Standard Chartered Bank, HSBC, National
public issue Bank of Abu Dhabi, Dubai Islamic Bank,
Sharjah Islamic Bank, Emirates NBD, Al Hilal
Bank, Noor Bank
19th Dec 2014 DRB-HICOM Malaysia Sukuk Domestic market 206 CIMB Group
private placement
19th Dec 2014 Northport Malaysia Sukuk Domestic market 101 Maybank, An Investment Bank
(Malaysia) public issue
15th Dec 2014 Malaysia Airports Malaysia Sukuk Domestic market 286 HSBC, Maybank, CIMB Group
Holdings public issue
12th Dec 2014 Unitapah Malaysia Sukuk Domestic market 146 Kenanga Investment Bank
public issue
11th Dec 2014 Suria KLCC Malaysia Sukuk Domestic market 172 CIMB Group
public issue
9th Dec 2014 National Higher Malaysia Sukuk Domestic market 287 Maybank, CIMB Group
Education Fund public issue
8th Dec 2014 Malaysia Building Malaysia Sukuk Domestic market 201 RHB Capital, DRB-HICOM, AmInvestment
Society public issue Bank
5th Dec 2014 Jana Kapital Malaysia Sukuk Domestic market 270 RHB Capital
public issue
25th Nov 2014 Islamic Republic of Pakistan Sukuk Euro market 1,000 Standard Chartered Bank, Deutsche Bank,
Pakistan public issue Dubai Islamic Bank, Citigroup
25th Nov 2014 IFFIm Sukuk United Sukuk Euro market 500 Saudi National Commercial Bank, Standard
Kingdom public issue Chartered Bank, National Bank of Abu Dhabi,
CIMB Group, Barwa Bank
18th Nov 2014 Hazine Turkey Sukuk Euro market 1,000 HSBC, CIMB Group, Citigroup
Mustesarligi Varlik public issue
Kiralama Anonim
17th Nov 2014 Flydubai UAE Sukuk Euro market 500 Standard Chartered Bank, HSBC, National
public issue Bank of Abu Dhabi, Dubai Islamic Bank,
Emirates NBD, Credit Agricole, Noor Bank
17th Nov 2014 Mumtalakat Sukuk Bahrain Sukuk Euro market 600 Standard Chartered Bank, Deutsche Bank,
Holding public issue BNP Paribas, Mitsubishi UFJ Financial

Global Sukuk Volume by Month Global Sukuk Volume by Quarter

US$bn US$m US$bn Value (US$bn) Avg Size (US$m) US$m

12 1500 18 600
Value (US$bn) 16
10 1250 14 500
Avg Size (US$m)
8 1000 12 400
6 750 300
4 500 6 200
4 100
2 250 2
0 0 0 0
1 2 3 4 5 6 7 8 9 10 11 12 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2014 2010 2011 2012 2013 2014

36 18th March 2015


Top 30 Issuers of Global Sukuk 12 Months

Issuer Nationality Instrument Market US$(mln) Iss(%) Managers
1 IDB Trust Services Saudi Sukuk Euro market 2,881 7.4 Standard Chartered Bank, Deutsche Bank, HSBC, National
Arabia public issue Bank of Abu Dhabi, First Gulf Bank, Maybank, Gulf
International Bank, Natixis, CIMB Group, Saudi National
Commercial Bank, RHB Capital, Dubai Islamic Bank
2 Saudi Electricity Saudi Sukuk Euro market 2,500 6.4 JPMorgan, Deutsche Bank, HSBC
Arabia public issue
3 DanaInfra Nasional Malaysia Sukuk Domestic market 2,337 6.0 HSBC, RHB Capital, Maybank, CIMB Group,
public issue AmInvestment Bank, Standard Chartered Bank, An
Investment Bank, Bank Islam Malaysia
4 Perusahaan Penerbit Indonesia Sukuk Euro market 1,500 3.9 Standard Chartered Bank, HSBC, CIMB Group, Emirates
SBSN Indonesia III public issue NBD
5 National Higher Malaysia Sukuk Domestic market 1,500 3.9 Maybank, CIMB Group
Education Fund public issue
6 Petronas Global Malaysia Sukuk Euro market 1,250 3.2 JPMorgan, Deutsche Bank, Morgan Stanley, HSBC,
Sukuk public issue Maybank, Mitsubishi UFJ Financial Group, CIMB Group,
Citigroup, Bank of America Merrill Lynch
7 Islamic Republic of Pakistan Sukuk Euro market 1,000 2.6 Standard Chartered Bank, Deutsche Bank, Dubai Islamic
Pakistan public issue Bank, Citigroup
7 Hong Kong Sukuk Hong Sukuk Euro market 1,000 2.6 Standard Chartered Bank, HSBC, National Bank of Abu
2014 Kong public issue Dhabi, CIMB Group
7 Hazine Mustesarligi Turkey Sukuk Euro market 1,000 2.6 HSBC, CIMB Group, Citigroup
Varlik Kiralama public issue
Anonim Sirketi
7 Dubai Islamic Bank UAE Sukuk Euro market 1,000 2.6 Standard Chartered Bank, HSBC, National Bank of Abu Dhabi,
public issue Dubai Islamic Bank, Sharjah Islamic Bank, Emirates NBD, Al
Hilal Bank, Noor Bank
11 Bank Pembangunan Malaysia Sukuk Domestic market 948 2.4 HSBC, CIMB Group
Malaysia public issue
12 Sharjah Sukuk UAE Sukuk Euro market 750 1.9 Standard Chartered Bank, HSBC, Kuwait Finance House,
public issue National Bank of Abu Dhabi, Sharjah Islamic Bank
12 Government of UAE Sukuk Euro market 750 1.9 Standard Chartered Bank, HSBC, National Bank of Abu
Dubai public issue Dhabi, Dubai Islamic Bank, Emirates NBD
12 Emaar Malls Group UAE Sukuk Euro market 750 1.9 Mashreqbank, Standard Chartered Bank, Morgan
public issue Stanley, National Bank of Abu Dhabi, First Gulf Bank,
Dubai Islamic Bank, Union National Bank, Abu Dhabi
Islamic Bank, Emirates NBD, Al Hilal Bank, Noor Bank
15 ICD UAE Sukuk Euro market 700 1.8 Standard Chartered Bank, HSBC, Dubai Islamic Bank,
public issue Citigroup, Emirates NBD
15 Dubai International UAE Sukuk Euro market 700 1.8 Standard Chartered Bank, Dubai Islamic Bank, Emirates
Financial Centre public issue NBD, Noor Bank
17 DAMAC Real UAE Sukuk Euro market 650 1.7 Deutsche Bank, National Bank of Abu Dhabi, Barclays,
Estate Development public issue Dubai Islamic Bank, Abu Dhabi Islamic Bank, Citigroup,
Emirates NBD
18 TDIC Finance UAE Sukuk Domestic market 600 1.5 National Bank of Abu Dhabi
private placement
19 Mumtalakat Sukuk Bahrain Sukuk Euro market 594 1.5 Standard Chartered Bank, Deutsche Bank, BNP Paribas,
Holding public issue Mitsubishi UFJ Financial Group
20 Saudi Telecom Saudi Sukuk Domestic market 533 1.4 Saudi National Commercial Bank, Standard Chartered
Arabia public issue Bank, JPMorgan
21 ZAR Sovereign South Sukuk Euro market 500 1.3 BNP Paribas, Industrial & Commercial Bank of China,
Capital Fund Africa public issue Kuwait Finance House
21 Turkiye Finans Turkey Sukuk Euro market 500 1.3 HSBC, Citigroup, Emirates NBD, QInvest
Katilim Bankasi public issue
21 Sharjah Islamic UAE Sukuk Euro market 500 1.3 Standard Chartered Bank, HSBC, Kuwait Finance House,
Bank public issue Dubai Islamic Bank, Abu Dhabi Islamic Bank, Emirates NBD,
Al Hilal Bank, Noor Bank
21 Kuveyt Turk Turkey Sukuk Euro market 500 1.3 Standard Chartered Bank, HSBC, Kuwait Finance House,
Katilim Bankasi public issue Citigroup, Emirates NBD
21 JANY Sukuk US Sukuk Euro market 500 1.3 Saudi National Commercial Bank, Goldman Sachs, National
public issue Bank of Abu Dhabi, Abu Dhabi Islamic Bank, Emirates
NBD, QInvest
21 IFFIm Sukuk United Sukuk Euro market 500 1.3 Saudi National Commercial Bank, Standard Chartered
Kingdom public issue Bank, National Bank of Abu Dhabi, CIMB Group, Barwa
21 Flydubai UAE Sukuk Euro market 500 1.3 Standard Chartered Bank, HSBC, National Bank of Abu
public issue Dhabi, Dubai Islamic Bank, Emirates NBD, Credit Agricole,
Noor Bank
21 Al Hilal Bank UAE Sukuk Euro market 500 1.3 Standard Chartered Bank, HSBC, National Bank of Abu
public issue Dhabi, Citigroup, Emirates NBD, Al Hilal Bank
29 Aman Sukuk Malaysia Sukuk Domestic market 491 1.3 RHB Capital, Maybank, Bank Islam Malaysia, CIMB Group,
public issue AmInvestment Bank
30 Midciti Sukuk Malaysia Sukuk Domestic market 476 1.2 Maybank, CIMB Group, AmInvestment Bank
public issue
38,924 100

37 18th March 2015


Top Managers of Sukuk 12 Months Sukuk Volume by Currency US$ (billion) 12 Months

Manager US$ (mln) Iss %

US dollar 22.0
1 CIMB Group 5,254 46 13.5
Malaysian ringgit 14.9
2 HSBC 4,648 30 11.9
3 Maybank 3,906 34 10.0 Saudi riyal 0.8
4 Standard Chartered Bank 3,246 24 8.3
Euro 0.6
5 RHB Capital 2,911 42 7.5
6 AmInvestment Bank 2,147 26 5.5
7 National Bank of Abu Dhabi 2,119 14 5.4 Sukuk Volume by Issuer Nation US$ (billion) 12 Months

8 Emirates NBD 1,789 15 4.6 Malaysia 15.3

9 Deutsche Bank 1,680 7 4.3 UAE 7.4
10 Citigroup 1,263 8 3.3 Saudi Arabia 6.6

11 Dubai Islamic Bank 1,246 10 3.2 Turkey 2.6

12 JPMorgan 1,150 3 3.0 Indonesia 1.9

Hong Kong 1.0
13 Natixis 658 3 1.7
Pakistan 1.0
14 Noor Bank 502 5 1.3
15 Kuwait Finance House 479 4 1.2
16 Saudi National Commercial Bank 472 4 1.2 Global Sukuk Volume by Sector 12 Months

17 BNP Paribas 442 3 1.1

18 Bank Islam Malaysia 389 4 1.0 13%
19 Al Hilal Bank 388 5 1.0 4%
20 QInvest 345 4 0.9 8% Utility & Energy
21 Abu Dhabi Islamic Bank 307 4 0.8 Real Estate/Property
9% Transportation
22 Kenanga Investment Bank 298 2 0.8 Other
23 Mitsubishi UFJ Financial Group 287 2 0.7 20%

24 Gulf International Bank 278 2 0.7

25 Sharjah Islamic Bank 275 2 0.7
26 First Gulf Bank 235 2 0.6 Global Sukuk Volume - US$ Analysis

27 Hong Leong Financial Group 234 8 0.6

US$bn US$m
28 Barwa Bank 217 3 0.6 18 600
16 Non-US$ US$
29 Morgan Stanley 207 2 0.5 14
30 An Investment Bank 198 6 0.5 12 400
31 Riyad Bank 133 1 0.4 8
6 200
32 Goldman Sachs 133 2 0.4 4
33 Barclays 93 1 0.2 0 0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
34 Nomura 88 1 0.2
2009 2010 2011 2012 2013 2014
Total 38,924 125 100.0

Top Islamic Finance Related Project Finance Mandated Lead Top Islamic Finance Related Project Financing Legal Advisors
Arrangers 12 Months Ranking 12 Months
Mandated Lead Arranger US$ (million) No % Legal Advisor US$ (million) No %
1 National Commercial Bank 2,909 4 26.7 1 Allen & Overy 6,375 5 38.0
2 HSBC 648 2 6.0 2 Baker & McKenzie 3,220 3 19.2
3 Samba Capital & Investment 604 3 5.6
3 Linklaters 1,631 2 9.7
4 Riyad Bank 588 3 5.4 4 Cliord Chance 1,626 4 9.7
5 Banque Saudi Fransi 574 3 5.3 5 Salans FMC SNR Denton Group 1,280 2 7.6
6 Al Rajhi Capital 486 3 4.5 6 Chadbourne & Parke 660 1 3.9
7 National Bank of Kuwait 290 1 2.7
7 White & Case 650 1 3.9
8 First Gulf Bank 281 2 2.6
8 Latham & Watkins 433 2 2.6
8 Union National Bank 281 2 2.6
10 Attijariwafa Bank 267 1 2.5 9 Norton Rose Fulbright 354 1 2.1

10 BMCE Bank 267 1 2.5 9 Pekin & Pekin 354 1 2.1

38 18th March 2015


Top Islamic Finance Related Financing Mandated Lead Arrangers

Ranking 12 Months Top Islamic Finance Related Financing Deal List 12 Months
Mandated Lead Arranger US$ (mln) No %
Credit Date Borrower Nationality US$ (mln)
1 Abu Dhabi Islamic Bank 1,186 7 12.3
30th Jun 2014 Ma'aden Waad al-Shamal Saudi Arabia 2,350
2 First Gulf Bank 902 8 9.3
3 National Bank of Abu Dhabi 880 4 9.1 21st May 2014 Emaar Malls Group UAE 1,500
4 Mashreqbank 644 4 6.7 th
19 Nov 2014 Saudi BinLaden Group Saudi Arabia 1,327
5 Dubai Islamic Bank 625 5 6.5
7th May 2014 Emirates Steel Industries UAE 1,300
6 Samba Capital 613 2 6.3
7 Abu Dhabi Commercial Bank 561 4 5.8 8th Sep 2014 Atlantis The Palm UAE 1,100

8 HSBC 483 3 5.0 24th Dec 2014 National Central Cooling - UAE 706
9 Noor Bank 475 3 4.9
7th Dec 2014 Utilities Development Kuwait 624
10 Banque Saudi Fransi 433 2 4.5
20th Jan 2015 Al-Waha Petrochemical Saudi Arabia 523
11 Emirates NBD 362 6 3.7
12 Al Hilal Bank 272 3 2.8 31st Jul 2014 Emirates Airlines UAE 425

13 Standard Chartered Bank 228 4 2.4 th

10 Nov 2014 Zakher Marine UAE 420
14 Alinma Bank 220 1 2.3 International

14 Al Rajhi Capital 220 1 2.3 Top Islamic Finance Related Financing by Country 12 Months
16 Union National Bank 194 3 2.0 Nationality US$ (mln) No %
17 Saudi National Commercial Bank 171 1 1.8 1 UAE 4,663 13 48.2
17 Saudi Investment Bank 171 1 1.8 2 Saudi Arabia 3,467 4 35.8
17 Riyad Bank 171 1 1.8 3 Turkey 573 2 5.9
20 Commercial Bank of Dubai 167 2 1.7 4 Qatar 350 1 3.6
21 Ahli United Bank 145 2 1.5 5 India 272 1 2.8
22 Barwa Bank 139 3 1.4
6 Kuwait 261 1 2.7
23 Arab Banking Corporation 126 2 1.3
7 Indonesia 90 1 0.9
24 National Bank of Kuwait 87 1 0.9
24 Kuwait International Bank 87 1 0.9 Top Islamic Finance Related Financing by Sector 12 Months
26 Bank Islam Brunei Darussalam 58 1 0.6
Real Estate/Property
27 Commercial Bank International 25 1 0.3
28 Warba Bank 15 1 0.2
Professional Services
28 Bank Pan Indonesia 15 1 0.2

Top Islamic Finance Related Financing Mandated Lead Arrangers Construction/Building

12 Months
US$ bln 0 1 2 3 4 5 6
Bookrunner US$ (mln) No %
1 Samba Capital 1,327 1 40.3
Global Islamic Financing - Years to Maturity (YTD Comparison)
2 Abu Dhabi Islamic Bank 845 3 25.7
3 Barwa Bank 405 2 12.3 2014
4 Noor Bank 175 2 5.3 2013
5 Standard Chartered Bank 141 3 4.3 2012
5 Emirates NBD 141 3 4.3 2011
7 Arab Banking Corporation 126 2 3.8 2010
8 Abu Dhabi Commercial Bank 70 1 2.1 2009
9 Warba Bank 15 1 0.5 2008
0% 20% 40% 60% 80% 100%
9 Bank Pan Indonesia 15 1 0.5
0-3yrs 3-5yrs 5-7yrs 7-10yrs 10+yrs
9 First Gulf Bank 15 1 0.5

Are your deals listed here?

If you feel that the information within these tables is inaccurate, you may contact
the following directly: Shireen Farhana (Media Relations)
Email: Tel: +852 2804 1223

39 18th March 2015


events training
APRIL 2015 MARCH 2015
19th 20th Shariah Audit for Islamic Kuala Lumpur,
1st IFN Investor Forum Dubai, UAE Investment & Capital Malaysia
Market Instruments
2nd IFN US Investor Forum Dubai, UAE
22nd 23rd International Best Practices Dubai, UAE
22 nd
IFN Indonesia Forum Jakarta, Indonesia & Regional Standards in
Regulation, Corporate
Governance, AML,
MAY 2015 Sanctions & Compliance

3rd IFN Qatar Forum Doha, Qatar 22nd 24th Understanding, Dubai, UAE
Developing & Marketing
25th 26th IFN Asia Forum Kuala Lumpur, Malaysia Takaful Products

25th 26th IFT: Structuring Islamic Kuala Lumpur,

JUNE 2015 Legal Documentation Malaysia

10th IFN Europe Forum Luxembourg 29th 31st Islamic Law of Business Dubai, UAE
Transactions & Sharia`a
APRIL 2015
13th IFN Issuer Forum Dubai, UAE
19th 20th Shariah Compliance & Dubai, UAE
Audit for Islamic Banks
13th IFN Iran Forum Dubai, UAE
20th 22nd IFT: Structuring Sukuk & Kuala Lumpur,
OCTOBER 2015 Islamic Capital Markets Malaysia
5th IFN Kuwait Forum Kuwait City
21st IFT: Recovery of Islamic Kuala Lumpur,
Finance Facilities Malaysia
27 IFN Egypt Forum Cairo, Egypt
26th 27th IFT: Legal & Dubai, UAE
NOVEMBER 2015 Documentation Issues
in Islamic Structured
17th IFN Turkey Forum Istanbul, Turkey Finance

26th 28th FT: Structuring Islamic Riyadh, Saudi Arabia

IFN Saudi Arabia Trade Finance Solutions
30th Jeddah, Saudi Arabia

Senior ProductionMohamad Rozman Besiri Finance Faizah Hassan

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40 18th March 2015


AAOIFI 28,30 Dubai Supreme Council of Energy 1,12,25 Muscat Securities Market 28
Abu Dhabi Islamic Bank 25,26,28 EC Harris 14 Muttawar Omani Company 14
ACWA Power 3 Emirates NBD 25,26 NASDAQ 10
Afghan Chamber of Commerce 17 Fitch 30 Nasirs Solicitors & Notaries 17
Afghanistan International Bank 17 G20 11 National Bank of Abu Dhabi 1,25
Afghanistan Islamic Finance and Consulting Co17 G5 14 National Bank of Pakistan 26
Afghanistan Islamic Finance Company 17 Gatehouse Bank 27 National Commercial Bank 14
Ahlibank 14,30 Gulf Finance Corporation 9
Natixis 12
Ajman Bank 29 Gulf Finance KSA 9
NBP Aitemaad 26
Aktor 14 Gulf Sukuk and Bond Association 1,3,12,25
Al Hilal Bank 25 Hasanah Islamic Banking 30
Oxford Business Group 18
Al Hilal Islamic Banking Services 14 HSBC 1,25
Al Jaber Engineering 14 HSBC Holdings 12 PETRONAS 20,25,30
Al Khalij Commercial Bank 30 IBA-Moscow Bank 26 Prime Bank 30
Al Omaniya Financial Services 28 ICD 12 Qatar Central Bank 25
Alinma Tokio Marine Company 29 IDB 14,27 Qatar Exchange 28
Alizz Islamic Bank 28 IdealRatings 9 Qatar International Islamic Bank 25,30
Alkhabeer Capital 29 IFSB 26 Qatar Islamic Bank 11,28,30
Al-Maali 17 International Accounting Standards Board 28 Qatar National Bank 30
Amlak Finance 29 International Bank of Azerbaijan 26 Quantum Property 23
Anakku 25 International Cooperative and Mutual Insurance RAM 26,28
Arabesque 1 Federation 4 RHB Islamic Bank 26
Asia Brands 25 International Energy Agency 7 Ritz Property 14
Asian Infrastructure Bank 7 International Tax Associates 23 S&P 10,20
Aviva 4 Islami Bank Bangladesh 14 S&P Dow Jones Indices 24
Bank Albilad 14 Islamic Holding Group 28 Samba Financial Group 14
Bank Asya 29 Islamic International Rating Agency 30
Saturna 1
Bank Islam 29 Itqan Capital 28
Saudi Arabian Chamber of Commerce 19
Bank Islam Brunei Darussalam 18 Japan FSA 6
Saudi Basic Industries Corp 14
Bank Negara Malaysia 26,30 JP Morgan 25
Bank Nizwa 28 KFH Investment 25 Saudi British Bank 14
Bank of America Merrill Lynch 25 KFH Research 26 Saudi Kayan Petrochemical Company 14
Barclays 4 KFH-Bahrain 28 Securities and Exchange Organization 18
BBK 28 Khazanah Nasional 3 Securities Commission Malaysia 3
BIMB Holdings 29 King & Spalding 19 SEDCO Capital 1
Bioenergy Technical Working Group 5 Kuwait Finance House 26 Shariyah Review Bureau 27
Bursa Malaysia 25 Labuan FSA 13 Sharjah Islamic Bank 25
Central Bank of Afghanistan 17 Labuan IBFC 13 Stamford Law Corporation 27
CIMB 25 Larsen and Toubro 14 Standard Chartered Bank 12,25
CIMB Group Holdings 12,30 Latham & Watkins 1,5,12 Sumitomo Mitsui Banking Corporation 6
CIMB Islamic Bank 10,26 Malaysia Marine and Heavy Telekom Malaysia 25
CIMB Niaga 30 Engineering Holdings 30 Threadneedle Investment 27
Citigroup 12,25,26 Malaysian Building Society 26 TSH Resources 30
Clean Energy Business Council 1,12,25 MARC 30 UMOA Titres 12
Climate Bonds Initiative 1,12,25 Masdar Institute of Science and Technology 5
United Finance Company 28
Commercial Bank of Qatar 30 Mashreq 26
US Federal Reserve 7
CSSF 13 Masraf Al Rayan 25
Uyoun Al-Raed Commercial Company 14
Dallah Albaraka Group 30 MasterCard 28
Waad Holding Company 14
DanaInfra Nasional 14 Maybank 25
Dar Al Sharia Legal & Financial Consultancy 15 Millennium Capital 22 Woori Bank 11
Dar Al Takaful 29 Minerva 13 World Bank 1,7
Deutsche Bank 25 Mizuho Financial Group 6 YapiMerkeziInsaatVeSanayi 14
Doha Bank 30 Moodys 27 Zurich Insurance Group 4
Draznine Advisory 18 Morgan Stanley 25 ITFC 26
Dubai Financial Market 29 Morgan, Lewis & Bockius 27 Egytian General Petroleum Corporation 26
Dubai Islamic Bank 25 MUFG 6,25 Bank Indonesia 26

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