Vol. 5, Issue 22 6th June 2008 The World’s Global Islamic Finance News Provider In this issue QATAR Islamic Capital Markets Briefs ................ 1 Doha plans global acquisitions Islamic Ratings Briefs ................................9 Doha Bank is planning to spend US$300 until the economic conditions stabilize and million on acquisitions this year focusing consumers regain their confi dence. Despite IFN Report ..................................................10 mainly on Islamic banking, said its CEO, the current fi nancial crisis, the bank will Raghavan Seetharaman. It is looking at the start operations in Kuwait and South Korea Islamic Banking in US market, more specifi cally Houston and next month. Brunei Darussalam .................................11 Washington, as well as countries in Asia. It is Venture Capital’s Islamic Principles .....13 particularly eyeing the GCC countries to add Currently, Doha Bank has representative of- to its branches in Doha and Dubai, he noted. fi ces in Singapore, Tokyo, Shanghai, Bucha- Shariah and Legal Aspects in rest and New York, besides a brokerage fi rm Islamic Venture Capital ..........................15 On the bank’s plan to issue Sukuk worth in India. Doha Islamic Bank is the Shariah Malaysia Leads Robust Islamic US$1 billion, Seetharaman said it is on hold compliant banking arm of Doha Bank. Venture Capital Industry .........................16 Challenges of Islamic Private INDONESIA Equity in the Western World ................... 17 More Islamic banks coming up Meet the Head ..........................................19 The Islamic units of fi ve banks are being up- growth level is still below the central bank’s Azrulnizam Abd Aziz, Standard Chartered Saadiq graded into fully Shariah compliant commer- expectation. Termsheet ..................................................20 cial banks as early as next year, according to Prasarana Negara US$616.4 million Sukuk Siti Chalimah Fadjrijah, deputy governor of Assets of Islamic banks have grown at 37%, Ijarah Bank Indonesia. She named BRI Syariah, BNI faster than conventional banks but still quite Takaful Report ..........................................21 Syariah and Bukopin Syariah as among them. far from achieving the targeted 5% of total Takaful Poised to Take Off in the EU commercial banking assets in the country, she Siti Chalimah described the development added. Moves .........................................................23 as a positive improvement for the Islamic Deal Tracker ..............................................24 banking industry in the country, although the (Also see IFN Report on page 10) Islamic Funds Tables ................................25 AFRICA S&P Shariah Indexes ...............................26 Africa-focused equity fund launched Dow Jones Islamic Indexes .....................27 Stanlib has launched a Shariah compliant region’s exchanges can benefi t from the fund equity fund which aims to invest in Islamic as well, as long as the majority of their turnover Malaysian Sukuk Update .........................28 equities in the African region outside South and profi ts are from Africa. It is aiming at 15% Islamic League Tables .............................29 Africa. The open-ended fund, registered in to 20% returns, without a performance fee Ireland, is currently on a road show in the charge. According to Ashraf Mohammad, Events Diary...............................................32 Gulf region. The bank targets to raise US$250 portfolio manager of the fund, Africa has a million. large pool of Shariah compliant assets. Subscriptions Form ..................................33 Country Index ............................................33 The fund can be invested in 16 African equity Stanlib is the asset management arm of markets. Companies not listed on any of the Standard Bank of South Africa. Company Index .........................................33 NEWS BRIEFS www.islamicfi nancenews.com KUWAIT/SYRIA SWITZERLAND/UAE President calls for JV with KIA UAE bank in Basel II accord with IRIS The president of Syria has proposed a joint-venture with Kuwait UAE’s Invest Bank has inked an agreement with IRIS to use its three Investment Authority (KIA), said a report. Bashar Al-Assad said the JV year Basel II consultancy support to implement the international capital could involve the governments of the two countries as well as private framework. This is considered to be a strategic move for the bank as it investors. is now ahead of most banks in the region in terms of risk management practices and compliance to the UAE Central Bank. The possibility of a free-trade arrangement between the two is also being studied, he added. According to the report, Bashar spoke after meeting Sami Rashed Farhat, general manager of Invest Bank, said the relation- KIA’s managing director, Bader Al-Saad, during a visit to Kuwait. ship between the two not only helps in complying with the Basel II re- quirements but also helps improve the risk standards at the bank. Gulf Arab investors are looking for business opportunities internationally including in Syria, whose economy is opening up to more foreign private investments. BAHRAIN GBCorp forms investment subsidiary BAHRAIN/INDONESIA Global Banking Corporation (GBCorp) and Taylor-DeJongh, an energy infrastructure advisory company, are launching Global Energy Financial ABG opens Indonesian offi ce Services (GEFSCO), which will participate solely in Shariah compliant Albaraka Banking Group (ABG) has opened an offi ce in Indonesia, said energy investments globally. The company will be wholly-owned by its chairman, Sheikh Saleh Kamel, on Thursday. In a statement, the GBCorp. bank also revealed its plan to expand to Malaysia, which is one of the biggest Islamic banking hubs in the world besides the Gulf. Plans to There will be no constraints on the size of future deals, said Ahmed Al branch out to China and India are also being studied. Khan, GBCorp’s head of investment banking, but the company will focus more on the capital-challenged companies. He added that GEFSCO will Noting that Indonesia has a large Muslim population, Sheikh Saleh said look into investing into the renewable energy sector where its interest its commercial and economic links with the Arab and Islamic world are is in oil and gas. growing. Mark Hanson, CEO of GBCorp, said Gefsco is looking into opening LIBYA/QATAR branches, in London and Asia. Masraf Al Rayan plans Libyan expansion Masraf Al Rayan is applying for permission to open a representative offi ce in Libya from the Qatar Central Bank, the bank revealed on Thurs- day. It is looking into offering commercial and investment banking serv- ices in the North African country. 25 – 28 August 2008 Sandton Convention Centre It was previously reported that Qatar National Bank had opened an of- Johannesburg fi ce in Libya in April, while last month Abu Dhabi-based First Gulf Bank South Africa said an affi liate has received approval to operate in that country. The rise and rise of Islamic finance Libya has the largest oil reserves in Africa, and plans to modernize its banking system. • Gain vital insights on best practices in successful Islamic banking from key players from the United Arab MALAYSIA Emirates, Pakistan, Malaysia and Indonesia • Strategise on Islamic investment opportunities New Islamic debit card launched sweeping the African market EONCAP Islamic Bank launched its Shariah compliant debit card on • Debate on Islamic REITs and the potential of Islamic Thursday. The bank’s CEO and executive director, Fozia Amanulla, said hedge funds in Africa it plans to issue up to 70,000 of the cards within a year. The card, she said, will be attractive to both Muslims and non-Muslims and will give • Update yourself on Sukuk, Takafol, Islamic users better control of their fi nances. investment, private banking and Islamic funds Seats are limited. Secure yours by registering early. The card can also be used for e-banking, Fozia added. Because of its Contact Evashnee Pillay on +27 (0)11 516 4016 or Islamic nature, the card cannot be used to purchase alcohol or for gam- email [email protected] bling purposes. Terrapinn1925/Islamic Finance News www.terrapinn.com/2008/islamic EONCAP Islamic is a subsidiary of EON Bank. © Page 2 6th June 2008 NEWS BRIEFS www.islamicfi nancenews.com SAUDI ARABIA MALTA Health insurance scheme Authorities to review regulations Saudi Arabia plans to have a compulsory health insurance scheme for Changes to Malta’s regulations are being studied to enable Takaful foreign workers in the kingdom. An annual payment of US$133.50 will providers and other Shariah compliant fi nancial companies to operate be imposed on workers such as housemaids or drivers in the country. in the country, said the Malta Financial Services Authority (MFSA). The insurance also covers the workers’ families in Saudi Arabia. Benefi ts A public consultation document on introducing Islamic fi nance in the include medical treatment. country was published by MFSA recently which analyzes the comparison between Shariah compliant funding structures and fi nancing vehicles MALAYSIA and Malta’s. More branches for Bank Islam According to MFSA, similar documents specifi cally on Sukuk and Bank Islam plans to add 25 more branches in the next three years to its Takaful are being planned for the end of this year and early next year, existing 90 branches nationwide, said managing director Zukri Samat. respectively. On the bank’s plan for a merger with a local bank, he said it is still look- ing for ‘the right partner’. MALAYSIA/UK Zukri spoke after signing a will writing agreement with Amanah Raya on INCEIF, ICMA Centre sign agreement Wednesday under which Bank Islam will distribute and sell the services The International Centre for Education in Islamic Finance (INCEIF) and which will be written and executed by Amanah Raya. the ICMA Centre have signed an agreement to offer a Masters of Sci- ence in Investment Banking and Islamic Finance program at the ICMA This is expected to attract 1.5 million customers and generate as much Centre in the University of Reading. It was signed by Agil Natt, CEO of as RM1.5 million (US$460,400) in revenues. INCEIF, and Gordon Marshall, vice chancellor of the university.