Marco Mauri, Senior Director — Asset
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The World’s Global Islamic Finance News Provider 19th December 2012 RED (All Cap) 900 Looking forward, looking back 886.56 In our fi nal issue of the year, we take the big leagues. Malaysia, Qatar and Turkey 875 882.48 a look at the key trends of past 12 ranked fi rst in issuance, with three of the months in what was a stellar year for the biggest deals of the year coming out of the 850 0.4% development of the industry. And looking Middle East. to the future, we talk to some leading market experts on their outlook for 2013, The year has been characterized by 825 with their predictions on what we can massive deals and new entrants, refl ecting expect for the new year. the growing confi dence in the market. 800 Turkey raised TRY1.62 billion (US$904 W T F S S M T million) in its maiden sovereign Sukuk in Powered by: IdealRatings® Back to the future In January of this year we took a look October, kickstarting the sector with major Volume 9 Issue 50 at what we might expect from the year corporates including Turk Telekom, Turkish Airlines and Bank Asya all reported to be IFN Rapids .........................................................2 to come, on the back of a strong 2011 characterized by high oil prices and record planning issuances within the next few Islamic Finance news .........................................6 government expenditure in the GCC region months. Qatar Islamic Bank returned to the market for the fi rst time in two years IFN Reports: Islamic Financial Services Board buff ering the industry against the economic to raise US$750 million with a fi ve-year appoints Qatar Central Bank governor as slowdown, and record Sukuk issuance from Malaysia and a growing market from Sukuk in October, while the IDB issued chairman; Collaborative cross-border SME fund in other jurisdictions lending strength to the US$500 million in the same month. Saudi the works ...............................................................10 Islamic capital markets. Going forward, Arabia has spread its wings this year on the we expected the core markets to continue back of several benchmark-sized Sukuk, IFN Correspondents: Iran; Iraq; Jordan; building on their strong performance, with including the US$1 billion Saudi Aramco Pakistan ......................................................... 11 several new territories also look promising. Total Refi ning and Petrochemical Company (SATORP) issuance in October and the Special Reports: Samer Hij azi, a director at KPMG fi nancial services, predicted that: “I expect organic semi-sovereign SAR15 billion (US$4 billion) Affi rmative defenses by debtors in a Wakalah growth to come from markets such as General Authority of Civil Aviation(GACA) arrangement .........................................................13 Indonesia, central Asia and Africa, although Sukuk in January, adding to a total of US$9 Standard & Poor’s Sukuk Forecast 2013 ..................14 the core markets of the GCC, Malaysia continued on page 3 and the UK will continue to dominate. I Column: also expect some interesting and positive Daud Vicary Abdullah .....................................................16 developments in Islamic fi nance in North ‘Tis the season Africa in the wake of the Arab Spring.” In Features: addition, we expected to see the industry Editor’s Note The Bahrain economy and Islamic fi nance ..... 17 build on its 2011 Sukuk success to develop As we prepare to close out 2012 and The rise of Islamic cross-border fi nancing .........18 a new market. enter a new year, our cover story for Whether to prohibit Islamic windows ................20 this last issue of the year looks back at A great year for Sukuk developments in the past 12 months Sukuk issues and advancement in global And 2012 exceeded all expectations: most of and the outlook for the Islamic fi nance markets ......................................................... 22 all in the Islamic capital markets, which are industry going forward. expected to storm home with total issuance Forum ................................................................23 of over US$134 billion as of December We also have a feature on the Bahrain Meet the Head: Marco Mauri, senior director this year, up by around 59% on last year’s economy and Islamic fi nance by Dustin — asset management, Alkhair Capital Saudi fi gures: with US$84.4 billion issued in 2011 James Collins of international wealth, and US$52 billion in 2010. And although asset and investment manager The Arabia ........................................................... 25 Malaysia continues to dominate the sector Ott oman Group, while Wasim Saifi , the Deal Tracker .....................................................24 with 68% of issuance, the Gulf countries are global head of Islamic consumer... Eurekahedge data ...........................................27 catching up while new markets are entering continued on page 5 REDmoney Indexes ........................................29 Performance League Tables ...........................31 Events Diary.....................................................35 Company Index ...............................................36 Subscription Form ...........................................36 www.islamicfi nancenews.com IFN RAPIDS Germany’s FWU Group issues Libya’s Warriors Aff airs National Asset Management DEALS largest Sukuk out of Europe Commission plans Shariah launches Shariah compliant compliant funding for SMEs unit trust Islamic Bank of Britain GFH Capital said to have extends deadline for off er missed part-payment for Saudi Electricy Company’s Crescent Wealth launches from Masraf Al Rayan Leeds United takeover US$1.25 billion Sukuk returns superannuation fund 10% UEM Land sells US$196.25 StanChart launches Shariah million Sukuk compliant online banking Central Bank of the UAE’s RATING platform for corporates tough new rules being Banque Saudi Fransi to close Fitch affi rms ratings on delayed US$506.56 million Sukuk ICD inks MoU with African Alinma Bank Guarantee Fund ING Public Takaful MARC affi rms ratings on IJ N Ehsan sees higher gross NEWS Asian Development Bank Capital’s US$97.96 million contributions Absa eyes Islamic banking provides US$750,000 grant for Sukuk program Islamic banking growth Fitch sees challenging operations in the country Fitch affi rms ratings on earnings environment for what country CIMB Group in talks to Bahrain Mumtalakat insurance and Takaful sector LBS Bina Group to partially arrange Sukuk for Chinese Holding Company’s multi- redeem US$44.15 million and Indian fi rms Takaful Ikhlas targets currency Sukuk programs US$21.63 million contribution IMTN program Yield on Dana Gas’s Sukuk MARC affi rms ratings on from health products Malaysia’s debt market rises on restructuring plan CIMB Islamic Takaful Malaysia announces to grow up to 5% in 2013, Bahrain’s Islamic banks MARC affi rms ratings on 10% dividend says Hwang Investment cannot compete with larger Konsortium Lebuhraya Management players, says governor of Prudential BSN Takaful Utara-Timur’s US$268 million Bank Muamalat Malaysia central bank launches new health product Sukuk reports US$39.28 million in Oman’s Islamic banking Association of the pre-tax profi t for fi rst half of industry ready to take fl ight Luxembourg Fund Industry MOVES 2012 publishes best practices for Nakheel repays Sukukholders Islamic funds Bain & Company names Dr Islamic Bank of Britain US$57.17 million Yasar F Jarrar as partner at reports growth in home Alkhabeer Capital plans Middle East operations BankDhofar set to launch fi nancing and deposits for the initial public off ering by early Maisarah Islamic banking fi rst nine months of 2012 2014 window Disclaimer: Islamic Finance news invites leading practitioners and academics to contribute short reports each week. Whilst we have used our best endeavors and eff orts 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. WE ARE NOW ON iPad, iPhone and Tablets © 2 19th December 2012 COVER STORY Looking forward, looking back Continued from page 1 Not just countries billion in issuance for Saudi Arabia The Development Bank of Kazakhstan in the fi rst nine months of the year; issud a debut US$75 million Sukuk in compared to US$5.3 billion for the UAE. July 2012, while the International Bank IrAq Infrastructure projects are driving this of Azerbaij an this month announced LuxemBourg boom in the Gulf, accounting for around a US$150 million Islamic syndicated 30% of Sukuk issuance in 2012 compared fi nance facility for 2013 and recently MoroCco ,, to just 7% in 2011, according to Standard launched the country’s fi rst Islamic & Poor’s (S&P), which cites “low yields, banking window. ThailanD m m relatively high liquidity, large capital expenditure needs, and strong investor Remaining challenges IrEland appetite” as the reasons behind the surge. However, it has not all been plain sailing AFghanistan this year, and the industry continues to face challenges to its growth which must SinGapore While some be faced before it can fully exploit its own potential. Standardization remains CHina countries the biggest issue and is highlighted by almost every leading industry expert BahraIn ,,,,, have taken great as the biggest factor holding back the development of a truly global cross- DJibouti strides forward in border industry. PaKistan developing their In 2012, Islamic retail banking also suff ered a blow with the exit of HSBC AustraLia ... domestic sectors,