Islamic finance in spotlight

The World Islamic Funds and Financial Markets Conference (WIFFMC) has over the last eight years established itself as the world's most influential annual gathering of leaders in the global Islamic funds and investments industry.

The two-day WIFFMC 2012 opens at the Gulf Hotel on Sunday under the theme "New Growth Horizons: Expanding The Global Footprint of Islamic Funds and Investments".

It will again set the stage for industry leaders to gather to showcase cutting edge innovations and also address the key enablers that will boost growth in the international Islamic funds and investments industry.

It will bring together leading players, industry thought leaders and key regulators in the international Islamic funds and investments industry for discussions that will seek to capitalise on the new opportunities and chart the future direction of the global Sharia-compliant funds and investments industry.

The testimonials from key industry leaders further confirm the overall significance of WIFFMC 2012 as the meeting place of choice for the key decision makers in the global Sharia-compliant investments industry,

"The increasing interest in Islamic finance in major markets across the globe presents a unique opportunity of expanding the global footprint of the Islamic investments industry," said Central Bank of Bahrain (CBB) executive director of financial institutions supervision Abdul Rahman Al Baker, who will be a keynote speaker at the event.

"It is therefore important to ensure that the Islamic funds and investment industry has solid and strong foundations for future development and growth," he added.

"In addition to enhancing the innovations of new Islamic instruments and encouraging more spending in research and development, it is also essential that the Islamic financial institutions develop strategic alliances with other financial institutions globally, especially in the area of products structuring and offering.

"Formation of such alliances will help to achieve economies of scale and improve the services across the Islamic funds and investment industry," he said.

and improve the services across the Islamic funds and investment industry," he said. CBB is once again delighted to be hosting this prestigious event," he added.

"Whilst investors are now aware of the wide choice of Sharia investment products available in the market, they should now learn to appreciate the benefits that come along with Sharia investing," said CIMB-Principal Islamic Asset Management executive director Datuk Noripah Kamso.

"There has also been articulation by investors that the asset classes made available to the investors are not as broad and deep as what is made available to them in the conventional investment space.

"This concern could be the result of lack of visibility of the track record of these investment products by virtue that the various asset classes are structured using home-based currencies for their domestic sandbox.

"I hope that the above concerns will be answered at this year's conference and I am delighted to be part of this important gathering of international investment leaders."

http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=330236

GCC urged to follow unified Islamic finance regulations

The Gulf Co-operation Council (GCC) should have a unified rule under one regulator for Islamic investment products for ensuring lower cost of funds, according to Islamic Wealth Management (IWM) Report 2012.
“The GCC countries could take a leadership role by establishing standards for the registration of Islamic investment products with one regulator,” the Bank Sarasin report said.

The report was launched by Bank Sarasin managing director and head of Islamic Finance Fares Mourad and Monzer Kahf, a leading Islamic finance scholar.

Such unified rule would allow asset managers to market the product to clients across the region, it said.

Currently any offering needs to comply with different regulations in Bahrain, Kuwait, Saudi Arabia, Oman, Qatar and the UAE, resulting in a lengthy and expensive registration process, the report said. “Reducing expenses and increasing the availability would increase competition, benefiting local investors and further the GCC’s development as a centre of excellence for Islamic finance.”

Although unified rules could be done either a state, region or Arab league level, it would be better to have a centralised agency that could interpret the legislations regarding Shariah investments, Mourad said.

Asked whether there was a need for a separate entity for the regulation and supervision of Islamic investments and products, he said “I really would like to have this” but it was for the regulators in the respective jurisdictions to decide.

Kahf said the Islamic Financial Services Board could take the lead in the centralised agency as it consisted of central bankers in the Muslim countries. “Once you have such an agency, there is no need for separate Shariah boards as lawyers specialised in the field could suffix its role,” he added.

The report also took note of the constant criticism of certain Islamic finance structures such as the ‘Tawarruq’, which involves purchasing a commodity with deferred payment and selling it to a third party for cash, hence replicating the effect of a loan.

“Regulations need to be adjusted to allow financial institutions to engineer products that fit the spirit of Islam while meeting legal and regulatory requirement,” it said.

In this regard, the report cited an example of recent co-operation between the halal industry (mostly foodstuffs) and Islamic finance – two sectors with similar goals that have had little contacts.

With issues related to the environment and social practices as well as corporate governance getting more attention, it said there has been more reporting on corporate social responsibility, which is important to Islamic finance.

“There is still much room for improvement with higher standards and a more strategic approach required at the state, company and private level. The Muslim countries face the greatest challenges,” the report said.


http://www.gulf-times.com

Oman's Bank Muscat to launch Islamic banking arm

Bank Muscat, Oman's largest bank by assets, will set up a sharia-compliant banking arm, it said in a statement, becoming the latest financial institution to announce plans to operate in the sultanate's fledgling Islamic financesector.

Operating under the Meethaq brand name, the bank will function independently from the conventional arm and has appointed a three-member sharia board.

No timeframe for the start of operations was given, with the new bank still subject to the Central Bank of Oman's approval, the statement added.

Oman said in May it would allow Islamic banking in the country for the first time, in an attempt to keep investment funds in the Gulf state and grab a share of the rapidly growing industry.

Earlier this month, Standard Chartered said it was studying whether to offer Islamic banking in Oman.

So far, two new Islamic banks have been granted banking licences - Bank Nizwa and Al Izz International Bank - while conventional lenders are also allowed to establish Islamic banking windows, as Bank Muscat has done. (Reporting by David French; Editing by Firouz Sedarat)

http://www.reuters.com

Islamic finance experts head to Bahrain

More than 1,200 industry leaders, senior decision-makers and key regulators from over 50 countries are set to gather in Bahrain for the 18th annual World Islamic Banking Conference (WIBC 2011) next month.

The event, being hosted in strategic partnership with the Central Bank of Bahrain, will run from November 21 to 23 at the Gulf International Convention Centre, Gulf Hotel.

The event, supported by the Economic Development Board of Bahrain, comes as the global Islamic finance industry enters the next phase of growth, said the organisers.

This year's WIBC theme, “Competing for Global Growth”, reflects the expanding geographical footprint of Islamic finance and increasing presence of Islamic financial institutions in new jurisdictions that is providing significant opportunities for cross-border trade and investment flows that are Shari'ah-compliant.

Discussions at WIBC 2011 will emphasize strategies for managing the challenges of industry globalization and reinforce co-operation across jurisdictions to ensure stronger international capabilities for the Islamic banking and finance industry.

Announcing the launch, David McLean, managing director of the WIBC said that 'Islamic finance is no longer a niche market and is rapidly becoming an important component of the mainstream financial system.'

'As various jurisdictions seek to intensify efforts in developing their respective Islamic banking and finance markets, it is vital to strengthen the global framework for greater collaboration between these geographies that will facilitate significant cross-border activities and deal flow,' he added.

McLean said in order to ensure the industry's orderly evolution as an integral component of the international financial system, it is essential to manage the challenges of industry globalization.

'WIBC 2011 will provide the leading industry players with the platform to capitalize on the growth opportunities from new emerging frontiers for Islamic finance.'

The three-day event will kick off on November 21 with a series of pragmatically focused pre-conference summits led by industry experts, who will place a range of complex themes in a practical framework, enabling a deeper understanding of the critical issues facing the Islamic finance industry today.

The main conference will be inaugurated by CBB Governor Rasheed Mohammed Al Maraj on November 22.

The inaugural session which focuses on strengthening the regulatory frameworks to accelerate the international development of Islamic finance will also feature Khaled Mohammed Al-Aboodi, CEO  and general manager, The Islamic Corporation for the Development of the Private Sector, the private sector arm of the Islamic Development Bank Group (IDB), Saudi Arabia.

Confirming his participation at the event, Al Maraj said, “The growing internationalization of Islamic finance reflects its ability to be competitive and respond to the complex needs of businesses globally.'

'As the industry’s geographic footprint expands, it is becoming increasingly vital to develop appropriate global frameworks and overcome the challenges of globalization faced by Islamic finance.'

'We believe that the WIBC 2011 will play a meaningful role in facilitating dialogues to prepare the international Islamic finance industry to 'Compete for Global Growth'. The CBB is delighted to be again hosting this unique global industry gathering,' he added.

A key highlight of WIBC 2011 will be the exclusive Industry Leaders’ Power Debate led by internationally respected CEOs and decision-makers from the key players in the industry.

Moderated by Ashar Nazim, partner, Assurance and Advisory Business Services, Ernst & Young, this dynamic session will analyze how the leading players are positioning themselves to capitalize on the new growth opportunities presented by the increasing internationalization of Islamic banking and finance.

The Power Debate session will feature Tirad Mahmoud, CEO of Abu Dhabi Islamic Bank; Toby O’Connor, CEO of the Islamic Bank of Asia; Syed Abdull Aziz Jailani Bin Syed Kechik, CEO of OCBC Al-Amin Bank Berhad; Asad A Ahmed, CEO of Gulf African Bank; Abdulrazzak Mohammed Elkhraijy, executive VP and head of the Islamic Banking Development Group at the National Commercial Bank-Saudi Arabia, and Dr Salah Addeen A Qadar Saeed, general manager – Credit & Risk Management at Bahrain Islamic Bank.

WIBC 2011 will also feature a special keynote address on “Competing for Global Growth: Preparing for the Asian Century” by Prof. Kishore Mahbubani, the dean and professor in the Practice of Public Policy at the Lee Kuan Yew School of Public Policy (LKY School) at the National University of Singapore on the final day of the event.

The eagerly-anticipated World Islamic Banking Competitiveness Report, developed in collaboration with Ernst & Young, will also be launched on-site at the conference in an exclusive session on November 22.

The 2011/12 Report which is now in its 8th annual edition, will explore the key trends and successful strategies deployed by leading Islamic banks.

Announcing support for the event, Dr Jamil El-Jaroudi, CEO of Elaf Bank said, “The global Islamic banking and finance industry has seen tremendous growth internationally and Bahrain is at the forefront of this growth and has a long history of being a pioneer in the global industry.'

With the industry now beginning to break out from its niche status to achieve critical mass in the global financial system, it is essential that we prepare the industry to tackle the challenges ahead, he added.-TradeArabia News Service

KEY ISLAMIC FINANCE ISSUES ARE REVIEWED

 Islamic liquidity management and financing were discussed at a key forum held in Bahrain.

The Bahrain Financial Exchange (BFX) and Bursa Malaysia organised a forum which also discussed contemporary issues relating to commodity Murabaha transactions and Tawarruq practices.

The forum was part of a two-day event marking the inauguration of a commercial relationship between the two exchanges.

The underpinning for this relationship is to provide financial products to Islamic market participants and strengthen bilateral ties between both organisations.

The event, held at the BFX offices, attracted over 50 key players from the Islamic financial markets and was attended by three eminent Sharia scholars within the industry.

Dr Mohammed Ali Elgari, Shaikh Nizam Yaqubi and Bursa Malaysia Sharia adviser Dr Aznan Hasan participated with the objective of providing insights and expert opinion on the concept of Tawarruq and its application and practices to facilitate Islamic liquidity management and financing.

"The use of Tawarruq and its role in money markets and risk management is important in further developing the industry and through discourses such as this, we hope to provide industry participants with greater understanding of the concept from a Sharia perspective as well as its commercial importance," said Bursa Malaysia global head of Islamic markets Raja Teh Maimunah Raja Abdul Aziz, who was also the moderator for the panel discussion,

The event also introduced a newly developed regulated Islamic commodity trading platform to industry participants specifically designed to facilitate Islamic financing and liquidity management aimed at tightening the application and enhancing integrity of Tawarruq practices.

Tawarruq is a sale of an asset to a purchaser on deferred payment with an onward sale by the purchaser to a third party on cash.

"It gives me great pleasure to host such a high-profile panel and audience from the Islamic finance community," BFX director Arshad Khan said.

"I am confident I can say from all involved, that this was an extremely informative and thought-provoking discussion with the practitioner community."

Link: http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=269517

Shari’ah scholars discuss Tawarruq practices

The Bahrain Financial Exchange (BFX) and Bursa Malaysia recently organised a forum to discuss matters related to Islamic liquidity management and financing and in particular contemporary issues relating to commodity Murabaha transactions and Tawarruq practices.

The forum was part of a two-day event marking the inauguration of a commercial relationship between the two exchanges.  The companies said in a press release that, “the underpinning for this relationship is to provide financial products to Islamic market participants and strengthen bilateral ties between both organisations.”

“The event, held at the BFX offices, attracted over 50 players from the Islamic financial markets and was graced with the attendance of three of the most eminent Shari’ah scholars within the industry. Dr. Mohd Ali Elgari, Sheikh Nizam Yaqubi and Dr. Aznan Hasan participated with the objective of providing insights and an opinion on the concept of Tawarruq and its application and practices to facilitate Islamic liquidity management and financing,” the media statement said.

Raja Teh Maimunah Raja Abdul Aziz, the Global Head of Islamic Markets, Bursa Malaysia, who was also the moderator for the panel discussion commented, "The use of Tawarruq and its role in money markets and risk management is important in further developing the industry and through discourses such as this, we hope to provide industry participants with greater understanding of the concept from a Shari’ah perspective as well as its commercial importance.”

The event also introduced a newly developed regulated Islamic commodity trading platform to industry participants specifically designed to facilitate Islamic financing and liquidity management aimed at tightening the application and enhancing integrity of Tawarruq practices.

Tawarruq is a sale of an asset to a purchaser on deferred payment with an onward sale by the purchaser to a third party on cash.

Link: http://www.cpifinancial.net/v2/News.aspx?v=1&aid=4201&sec=Islamic%20Finance

Tamkeen and Ernst & Young to train 130 Bahraini graduates

Tamkeen has signed a $1.2m contract with Ernst and Young to train 130 Bahraini graduates in Islamic finance and business accounting, the labour fund’s CEO said on Monday.

Bahrain’s emergence as a banking hub in the region has created a growing need for professionals qualified in Islamic financial work, Tamkeen said.

A recent survey conducted by the firm found that more than 1,340 banking and investment specialists are needed to fill vacancies in the financial sector.

“One of the major challenges facing Islamic finance was the availability of a trained national workforce,” said Deen Jayah, the director of Ernst & Young's Business Community Training Center.

The Bahraini government plans to increase the number of nationals working in the private sector by 185,000 people over the next five years, with at least 35,000 locals to be trained in post secondary graduate and doctoral programmes to replace qualified expats.

Abdulellah Ebrahim Al Qassimi, chief executive of Tamkeen, said: “There are even greater opportunities in the Islamic finance area and we were keen to tap this arena of career growth for Bahrainis."

Ernst & Young is the only approved training provider for the Chartered Institute of Management Accountants (CIMA-UK) programmes in Bahrain.

As part of a new initiative by the CIMA, graduates will study and sit exams for the Certificate in Business Accounting or the Certificate in Islamic Finance, over a one year period. Students will also be trained to work in private banks at the same time, Jayah said.

Students will be separated into three batches, with training provided by professionals at the Ernst & Young's Business Community Training Center. Applicants will be selected through a competitive exams, interviews and group discussions.

Al Qassimi added that the scheme intends to empower Bahrainis by giving them opportunities to stand out as employees of choice, who can power the growth of the nation.

Link: http://www.arabianbusiness.com/576289-tamkeen-and-ernst-aamp-young-to-train-130-bahraini-graduates

Bahrain Islamic Bank launches first Islamic youth account 'Vevo'

With its continuous interest in offering all the appropriate banking services and products to its customers of various age groups, Bahrain Islamic Bank (BisB), the first Islamic bank in Bahrain, has announced the launch of the new Vevo savings account for youngsters in the 15-25 years age group. The account was launched under the slogan "Your Account. Your future. Vevo. It's all yours."

Speaking about the benefits and services offered by this account, Mr. Abdul Rahman Mohamed Turki, BisB Retail Services General Manager, said:

"We are pleased to offer the new Vevo youth account. It is an account that highlights our support to young members of the community who are the focus of attention from both the local authorities and social organizations in the Kingdom."

BisB General Manager said, "We seek through the launch of this account to educate and enhance the awareness of our young people about how to take the responsibility of the financial aspects of their lives. It is understood that most young people need guidance and support when it comes to their knowledge of financial issues, which the BIsB Vevo account would help them with. In addition, this account will provide them with many services and offers that we hope will meet with their expectations."

Commenting about the choice of the name "Vevo" for this account, Mr. Turki said, "Vevo comes from the word "vivo" which is Latin for "within the living" and since youngsters are the pulse of life, Vevo was created to fit into the lives of young people."

Turki spoke about the details and benefits of this account by saying that Vevo account gives youngsters more offers from leading stores and commercial companies that focus their products and services on the youth group such as Zain, Bahrain International Circuit (BIC), Adhari Park, Wahoo! Water Park and Maya Chocolaterie. In addition, the account offers customers up to 50% off at more than 100 stores on many items such as fashion, electronic appliances, automotive, restaurants, games outlets and many more.

Turki further said opening a Vevo account is easy for the Bank's young customers. All they have to do is to visit any BisB branch and show that they are in the 15 to 25 years age group by providing two official identification documents.

Concluding, Mr. Abdul Rahman Turki urged young people to enjoy the benefits of this new account and stressed that the Bank welcomes all their inquiries upon calling the Call Centre.
Link: http://www.ameinfo.com/217940.html

Top forum to probe Islamic banking

As cautious optimism returns to the global economy more than 1,200 industry decision-makers from over 50 countries are preparing to meet in Bahrain for a top Islamic banking conference.

The 16th Annual World Islamic Banking Conference (WIBC 2009), to be held from December 6 to 8, will focus on "New Strategies for New Economic Realities".

WIBC 2009 has set the stage for discussions that will shape the post-crisis landscape as Islamic banks grapple with the need to manage risk, seek new growth markets, deliver on market expectations as well as remain competitive.

The theme of WIBC 2009 reflects this fresh outlook that the leading Islamic financial institutions are currently adopting as they compete in an increasingly challenging landscape.

"It is heartening to experience the vibrancy and sustained growth that our industry, Islamic banking, has seen over the last few years," said Abu Dhabi Islamic Bank chief executive officer Tirad Mahmoud.

"I am impressed most by the upbeat stance of the entire industry in face of the global economic situation in general and that of the banking sector in particular. I am also pleased that we are a Platinum Strategic Partner of the WIBC 2009 as it is one of the few global platforms where leading industry players converge."

"At Gulf Finance House (GFH), we believe Islamic banking has a big future and not just in traditional markets but on the global stage," said GFH chief executive officer Ahmed Fahour. "The annual WIBC is a key player in stimulating debate and tackling the issues the industry will face in the years ahead."

A panel of industry experts will lead discussions on controversies in Islamic finance with emphasis on lessons learnt from the global financial crisis.

A roundtable panel representing UK institutions will offer insights on the UK's perspective on Islamic finance.

In addition, the launch of the 2009-2010 edition of the WIBC Competitiveness Report, a critical reference source for industry decision makers, providing strategic insights from McKinsey & Company, will also provide a powerful research platform for discussing key trends, challenges and opportunities in Islamic banking.

Link: http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=264311

Bahrain to Host the 5th Annual World Islamic Funds & Capital Markets Conference

With the leaders of international & regional financial institutions rapidly revising their strategies in the context of the global financial crisis, the 5th Annual World Islamic Funds & Capital Markets Conference (WIFCMC 2009) could not come at a more opportune time.

With the leaders of international & regional financial institutions rapidly revising their strategies in the context of the global financial crisis, the 5th Annual World Islamic Funds & Capital Markets Conference (WIFCMC 2009) could not come at a more opportune time. Held in strategic partnership with Central Bank of Bahrain under the theme of Islamic Investments: Shifting Gears, WIFCMC 2009 will provide the springboard for new ideas and insights that will catalyse the industry's growth.  The conference is the world's largest gathering of Islamic investment leaders and according to David McLean, Managing Director of MEGA, WIFCMC 2009 will be the most crucial meeting in its 5 years of history as more than 400 experts seek to chart a renewed growth path for the Shari'ah-compliant investment markets.   Speaking ahead of the conference, Charles Peal, Chairman of the BLME Umbrella Fund at Bank of London and the Middle East said that "recovering from the current financial crisis will require thought leadership and innovation by Islamic investors and fund managers. The 5th Annual World Islamic Funds & Capital Markets Conference in 2009 will be a good place to discuss which changes will really work". WIFCMC 2009 will feature insightful discussions by international and regional speakers into the real opportunities for Shari'ah-compliant investments.  Key messages will focus on ways to  kick-start the Sukuk market, revive growth and manage risk as well as identify asset classes offering most resilience in the current economic climate. The conference also features the launch of the Ernst & Young Islamic Funds & Investments Report. The 2009 edition of the EY Report is even more eagerly anticipated given the challenging global economic climate. 2009's report will provide much needed clarity and insight into the changing market landscape and future growth opportunities for leading players in the Islamic investments industry. WIFCMC 2009 has attracted the support of the leading players in the global Islamic investments industry. Platinum sponsors include HSBC Amanah, the global Islamic banking division of the HSBC Group; Bahrain Islamic Bank, the first Islamic commercial bank in the Kingdom of Bahrain; and Reef Real Estate Finance, the premier financing house in the kingdom of Bahrain. A record number of sponsors have partnered with 2009's conference. Other leading institutions partnering with WIFCMC 2009 include Bahrain Financial Exchange, Tharawat Investment House, LM Investment Management, Deutsche Bank, ITS, BNP Paribas, Elaf Bank, BLME, Capinnova, DCAP Limited, NCB Capital, Ernst & Young, Dowjones, Khandwala Securities Limited, BMB Islamic, Bahrain Association of Banks, Riyada Consulting, MA  Foi, Path Solutions, Ohad Trust, SKOPOS Consulting, Gulf Custody Company, and Standard & Poor's. More than 400 industry leaders will gather for the 5th Annual World Islamic Funds & Capital Markets Conference 2009 at the Gulf Hotel in Bahrain on the 25th & 26th May to shape the future of the global Islamic investments market. MEGA is the market leading business information firm focused on achieving business results for the global Islamic banking & finance industry since 1993. The portfolio of MEGA brands represents the landmark industry conferences and our clients are the leading players in the international financial markets. Link: http://www.cibafi.org/NewsCenter/English/Details.aspx?Id=3189&Cat=0