#100 - October 2016

Dubai Technology and Media Free Zone Authority

ISSUE 100

T H E A U T H O R I TAT I V E V O I C E O F I S L A M I C F I N A N C E ISSUE 100 FINDING GLOBAL SUCCESS Fadi Al Faqih, CEO, Bank of Khartoum

FINDING

GLOBAL SUCCESS Fadi Al Faqih, CEO, Bank of Khartoum A CPI Financial Publication

PLUS:

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TAKAFUL:

Mixed results for GCC Takaful in 2016

SUKUK:

Turkey aims for a bigger slice

AWARDS:

The Islamic Business & Finance Awards 2016

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Licensed and regulated by Central Bank of UAE

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SMS "wealth" to 4248

wealth@nationalbonds.ae

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CONTENTS

ISSUE 100

REGULAR SECTIONS

EDITOR'S LETTER

12

Greetings, all

W

elcome to our latest issue of Islamic Business & Finance.

This is our 100th issue!

Congratulations to all my colleagues at CPI Financial for all the hard work they’ve put in over the years to make this magazine a continued success.

Here’s to 100 more!

There’s a good chance you’re reading this at two of the biggest events on the Islamic finance calendar—the Islamic Business & Finance Awards 2016, or the World Islamic Banking Conference 2016.

If that is the case, please come say hello if you see us. We love to meet our readers in person, and would enjoy chatting with you about your experiences.

It was a pleasure meeting some of our African readers at the International Islamic Banking Summit Africa in early November, at which I was the moderator. I feel this year was the best edition yet, a wonderful meeting of minds with some really strong developments in the Islamic finance space. There is going to be some great news coming out of that region in 2017, keep your eyes peeled.

There’s plenty to peruse. I hope you enjoy digging into another great issue.

Until next time,

William Mullally www.islamicbusinessandfinance.com

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OPINION

8

40

THE GEN Z MUSLIM CONSUMER

COVER INTERVIEW

12 FINDING GLOBAL SUCCESS

Fadi Al Faqih, CEO, Bank of Khartoum

SUKUK

38 MARKET WATCH 40 TURKEY AIMS FOR A

44

BIGGER SLICE

TAKAFUL

44 MIXED RESULTS FOR GCC TAKAFUL IN 2016

DIARY AND NEWS ANALYSIS

6 NEWS & ANALYSIS 50 DATES FOR YOUR DIARY Log on to www.islamicbusinessandfinance.com for news, polls, events, analysis, blogs, features, commentary and more.

ISSUE 100 | Islamic Business & Finance

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CONTENTS

CHAIRMAN

SALEH AL AKRABI CHIEF EXECUTIVE OFFICER

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34

AWARDS

HALAL BUSINESS

10 THE 11

28 RISE OF THE HALAL

COUNTRY FOCUS: SUDAN

30 BEAMING UP TO THE

TH ANNUAL ISLAMIC BUSINESS & FINANCE AWARDS

MARKET

ENTERPRISE

18 SUDAN NAVIGATES TRICKY WATERS

ISLAMIC TECH

EVENTS MANAGER

NATALIA KAILA natalia.kaila@cpifinancial.net Tel: +971 4 365 4538

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22

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CREATIVE DESIGNER

ANA MAKSIĆ ana@cpifinancial.net Tel: +971 4 391 3723

FEATURES

ADVERTISING

editorial@cpifinancial.net Islamic Business & Finance WILLIAM MULLALLY william@cpifinancial.net Tel: +971 4 391 3718

ISSUE 100

FINANCE MANAGER

DATA ANALYST

ADMINISTRATION & SUBSCRIPTIONS

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DUBAI

34 ITS

22 DIEDC

EVENTS

AFRICA

46 INSIDE WIBC 2016

24 CENTRAL BANK OF ETHIOPIA

Get the next issue of Islamic Business & Finance before it is published.

Full details at www.islamicbusinessandfinance.com ISSUE 100 Dubai Technology

and Media Free

Zone Authority

Dubai Technology and Media Free Zone Authority

Dubai Technology and Media Free Zone Authority

ISSUE 98

ISSUE 99

CPI FINANCIAL FZ LLC P.O. Box 502491, Dubai Media City, Dubai, UAE Fax: +971 4 390 9576

R I TAT THE AUTHO

Fadi Al Faqih, CEO, Bank of Khartoum

ENSURING

A BETTER FUTURE

FINDING

Bank of Khartoum

PLUS:

Islamic Business & Finance | ISSUE 100

page 3-4 contents100.indd 4

A CPI Financial Publication

4

PLUS:

TAKAFUL:for GCC Mixed results Takaful in 2016

SUKUK:

Turkey aims for a bigger slice

TECH:

The great enabler

SUKUK:

SRI in Malaysia

A CPI Financial Publication

A CPI Financial Publication

Fadi Al Faqih, CEO,

DOING AWQAF

THE RIGHT WAY His Excellency Tayeb Al-Rais, UAE Secretary General of Awqaf and Minors Affairs Foundation (AMAF)

Mohammed Qasim Al Ali, CEO, National Bonds

ESS GLOBAL SUCC

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© 2016 CPI Financial FZ LLC All rights reserved. No part of this publication may be reproduced or used in any form of advertising without prior permission in writing from the Managing Editor.

DOING AWQAF THE RIGHT WAY His Excellency Tayed Al-Rais, UAE Secretary General of Awqaf and Minor’s Affairs Foundation (AMAF)

ENSURING A BETTER FUTURE Mohammed Qasim Al Ali, CEO, National Bonds

FINDING GLOBAL SUCCESS

@IBFMag on Twitter for stories as they're being told

ISSUE 98

ISSUE 99

ISSUE 100

PRINTED BY United Printing & Publishing – Abu Dhabi, UAE

T H E A U T H O R I TAT I V E V O I C E O F I S L A M I C F I N A N C E

T H E A U T H O R I TAT I V E V O I C E O F I S L A M I C F I N A N C E

www.cpifinancial.net Registered at the Dubai Media City

FINANCE OF ISLAMIC IVE VOICE

AWARDS:

The Islamic Business & Finance Awards 2016

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PLUS:

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TECH:

Making solutions better

SUKUK:

Spotlight on Oman

TAKAFUL:

MicroTakaful in Sudan

25/07/2016 17:06

AWARDS: Business

The Islamic 2016 & Finance Awards

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NEWS & ANALYSIS

The former governor of Malaysia’s Central Bank, Dr Zeti Akhtar Aziz, was recently presented with the Lifetime Achievement Award as part of the ADIB annual Ethical Finance Innovation and Challenge Awards (EFICA) which was recently held in Dubai.

It has been my privilege to be involved in the global developments of Islamic finance. Initiatives such as EFICA are reminders of the importance of ethics in finance to ensure its sustainability.

Additionally, when finance and economic relationships are based on partnerships, it increases its potential to improve lives of people across the world, and avoid the excesses in risk taking and leverage that led to the 2008 global crisis.

(Abdul Razak Latif/SHUTTERSTOCK)

DR ZETI AKHTAR AZIZ, former Governor, Bank Negara Malaysia

The Government of Jordan has made its first sovereign Sukuk issuance, amounting to JOD 34 million, to finance the completion of the construction of the new Ministry of Finance building located in the heart of the Capital of Jordan.

The transaction was novel for Jordan and involved careful structuring to ensure it was closely aligned to Shari'ah principles. In the subscription phase, there was significant demand from Islamic financial institutions, which indicates the credibility of the project, from a Shari'ah’s perspective, and it is hoped that further Sukuk issuances will follow on from its success.

(A S E F/SHUTTERSTOCK)

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DR. HANA HUNEITY, the Dean of Scientific Research at the World Islamic Sciences and Education University

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OPINION

The Gen Z Muslim consumer

I

n the past few decades, the Islamic economy has grown in ways that are making everyone in the world take notice. But while the last few generations have embraced Halal, things like food and fashion are changing now more than ever, and the two youngest generations—millennials and Generation Z—are leading the way.

But how will things be different? At a recent panel at the Global Islamic Economy Summit 2016, I saw a window into that change. Some have called millenials and Generation Z ‘entitled’.

One speaker, Amani Al Khatahtbeh, founder of Muslimgirl.net, the leading US website for Muslim women, took exception to the ‘entitled’ label, instead saying that her peers had been let down by the previous generation.

For her, millenials and Gen Z are more proactive, and more aware of the tricks that people all over the world use to try to take advantage of Muslim consumers. According to Al Khatahtbeh, Western brands are co-opting Islamic identity for their own purpose, citing the fashion design house Dolce & Gabana introducing a range of Abayas. “The model is a white-passing woman, who might not even be Muslim,” she said. “The fashion designers didn’t consult with a Muslim, and the range was only launched in the Middle East. It overlooked the US—a $140 billion market for Muslims.”

“What are brands in it for: empowering Muslims —or exploiting them?” she asked, adding examples from H&M and L’Oreal which generated widespread coverage, and thus publicity, for the brands, but without representing an authentic Muslim voice.

Listening to her talk in the audience, I was struck by her passion, not because it was unfamiliar, but because I finally saw the generation that I have come to know through social media and through people I have met represented on a stage usually filled with people of Generation X and earlier. It was clear that she, and her followers, are not going to roll over—they will only accept the highest standards, and would like their culture, beliefs and identity to be represented more than the right labels to be put upon the products that they buy. They want change—and they to want it now.

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“Gen Z has everything at their fingertips.

They have all the technology, all the resources available to them. They want to be their own bosses, and their opportunities are endless. For Generation Z, a lot of industries are outdated.

They want to be disrupters. They want to flip these institutions upside down, and that gives us a lot of hope.”

The Islamic economy is growing, and the standards of Muslim consumers are too. Brands that try to take advantage of these consumers will have a tough time pulling the wool over these keen eyes. The young Muslim consumer is smarter than ever.

William Mullally

Editor

www.islamicbusinessandfinance.com

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AWARDS

It's finally here!

ON 23 NOVEMBER, THE 11TH ANNUAL ISLAMIC BUSINESS & FINANCE AWARDS RETURN TO EMIRATES TOWERS HOTEL

T

h i s N o v e m b e r, C P I Financial will proudly host the 11th Annual Islamic Business & Finance Awards ceremony. As we have for over a decade, the Awards aim to honour the best of the best within the Islamic finance industry.

Islamic finance’s ongoing success around the world continues to surpass expectations, expanding into new markets as well as further entrenching itself in its established countries from one side of the world to the other. The leaders of this industry still hold innovation as a guiding principle, finding new ways to spur growth and bring Islamic finance to new customers, creating value for investors and service to their respective communities.

As is now the tradition, these Awards will be an opportunity t o r e w a r d t h o s e t h at a r e furthering the goals of the industry as a whole. Those that are short-listed, as well as those that win, are truly the stars of the Islamic finance world, and the scope of our categories this year is a reflection of the many ways that different institutions c o n t r i b u t e t o t h e o ve r a l l Islamic economy.

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ISLAMIC BUSINESS & FINANCE AWARDS 2016 CATEGORIES

Islamic Business & Finance | ISSUE 100

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BY COUNTRY:

Best Retail, Corporate & Commercial banks in: ◆ Levant ◆ Bahrain ◆ Kuwait ◆ Bangladesh ◆ Jordan ◆ Egypt

◆ Qatar ◆ UAE ◆ Malaysia ◆ Iran ◆ Sudan ◆ Pakistan

◆ KSA ◆ Oman ◆ Indonesia ◆ Turkey

BY REGION - MIDDLE EAST: ◆ Best Retail Bank ◆ Best Commercial Bank ◆ Best Takaful Operator ◆ Best Finance Company ◆ Best Consumer Finance Company ◆ Best Wealth Management

◆ Best Corporate Bank ◆ Best Investment Bank ◆ Best Sukuk Arranger ◆ Best SME Finance Company ◆ Best Islamic Window ◆ Best Corporate Advisory

BY REGION - ASIA: ◆ Best Retail Bank ◆ Best Commercial Bank ◆ Best Takaful Operator ◆ Best Sukuk Arranger

◆ Best Corporate Bank ◆ Best Investment Bank ◆ Best Asset Manager

BY REGION - AFRICA: ◆ Best Retail Bank ◆ Best Commercial Bank

◆ Best Corporate Bank ◆ Best SME Bank

INTERNATIONAL AWARDS: ◆ Best Training Institution ◆ Best Shari’ah Advisory Board ◆ Best Wealth Management Service ◆ Best Equity Research ◆ Best Institutional Investor Service

◆ Best Consultancy Service ◆ Best Sukuk Deal ◆ Best Investment Fund ◆ Best Savings Product ◆ Best Real Estate Finance

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COVER INTERVIEW

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COVER INTERVIEW

FINDING

GLOBAL SUCCESS

FADI AL FAQIH, CEO, BANK OF KHARTOUM DISCUSSES THE BANK’S BIG DEVELOPMENTS AT HOME AND ABROAD

W

Fadi Al Faqih

hat were the preparations like for BOK to begin operations in Bahrain and the UAE? Bank of Khartoum has served its clients in Sudan ever since its inception in 1913. Since then it has passed many milestones and became the leading bank in the country. With such an achievement, it was paramount that our strategy developed towards setting a mark for the bank and its clients in the region, making the Gulf and Africa the target of that expansion. Upon concluding its research on all needed requirements and compliance regulations in the respective countries, and securing Central Bank of Sudan approval to apply for oversee branches, the bank applied for the licence in each country’s respective central bank. With compliance to each of their conditions and regulations, we acquired the licence to operate. The first was the Kingdom of Bahrain. After the successful launch of BOK International, our first branch in Bahrain, in December 2015, we received approval to open our second international branch in the United Arab Emirates in May 2016.

When we spoke last year, you were making big expansion moves. What progress has BOK made since the launch at WIBC 2015?

At that time we had just announced the opening of our first oversees branch in the Kingdom of Bahrain, since then the first quarter of 2016 has witnessed the official operation of the branch and we have increased our network to a number of over 100 branches and cash offices in addition to over 230 ATMs and CDMs. BOK is considered the largest provider for these services and is gradually developing and providing services and availing mobile payments services with a wide range of services. These include utility payments, mobile top ups and mobile payments. We have also received a licence from the United Arab Emirates Central Bank to open an overseas branch in Abu Dhabi also we are on the threshold of our 2020 strategy which will take further steps into benchmarking the bank across Sudan, Africa and the Gulf.

What have been the main challenges you’ve faced with regards to this expansion?

No major challenges were faced. cont. overleaf

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We have undergone the usual regulatory processes in both countries which usually take time due to the needed due diligence which must be performed and requirements which must be met. This is part of the process as we branch out and a normal process as banking is a well-regulated industry which makes it subject to compliance and regulatory guidelines, processes and requirements. We are thankful for both Central Bank of Sudan and the United Arab Emirates.

You are also growing outwards through your Islamic microfinance subsidiary, IRADA. Where do you envision IRADA’s operations growing, particularly as Islamic finance grows into new markets?

IRADA and BOK as a whole are considered the best choice to bring the best practises of Islamic finance to banks and financial institutions.

BOK was awarded for having the best Islamic transactions and products, after all. IRADA was created by BOK, along with the Islamic Development Bank in Jeddah, as a subsidiary of BOK to provide Islamic microfinance activities through new, different and developed Islamic products, which enables them to be the pioneer in the Islamic finance domains through providing them with their new techniques and methodologies.

Very recently, IRADA started a new assignment in Uganda to develop an Islamic microfinance framework that will enable the development of Islamic microfinance products for the MSC (Microfinance Support Center) in Uganda, train staff of the implementing agency and selected beneficiaries, and upgrade the MIS to comply with Islamic microfinance products.

The Islamic finance sector is growing rapidly throughout all financing institutions and banks in Islamic and non-Islamic countries.

Now, Europe is using Islamic finance methodologies in the their businesses, because Islamic finance is considered as more ethical and safe. More and more banks across the globe are either moving towards full-fledged Islamic banking or creating Islamic windows to cater to the needs the growing demand of this sector.

As you know, Sudan is the second country in the world (and only in Africa) which offers 100 per cent Shari’ah-compliant banking. BOK is

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SUDAN'S ISLAMIC BANKING LANDSCAPE Net Profit 2015 (USD '000) Al Shamal Islamic Bank

4,523 47,103

Faisal Islamic Bank (Sudan)

59,276

Bank of Khartoum Omdurman National Bank Sudan

64,340

Assets 2015 (USD '000) Al Shamal Islamic Bank

302,156

Bank of Khartoum

1,955,356

Faisal Islamic Bank (Sudan)

2,019,391

Omdurman National Bank Sudan

68,767

Revenue % change Faisal Islamic Bank (Sudan)

11%

Al Shamal Islamic Bank

19%

Bank of Khartoum

22%

Omdurman National Bank Sudan

28%

SOURCE: CPI Financial

keen to take Sudan’s experience and expertise across Africa and other regions.

How has the bank’s performance been in 2016?

2016 has been a noteworthy year for the bank with a bigger vision to achieve and further challenges to overcome to always be abreast of new developments and distinguished from others. These challenges are paramount with the fact that Sudan is still under focus of the international community due to US sanctions.

The bank has witnessed great success notwithstanding its financial indicators up to the third quarter of 2016, with $57 million in net

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COVER INTERVIEW

profit, $1.272 billion in customer deposits and total assets of $2.489 billion. It remains on its course for continuous effort to prompt Islamic banking in practise with diversification and community welfare hand-in-hand, creating a paradigm marking a true model in Africa and across the globe.

What have been other major milestones for BOK in 2016?

Bank of Khartoum acquired Canar Telecommunication Company (Sudan) by purchasing Emirates Telecommunications Group Company PJSC’s 92.3 per cent shareholding in the company. We also implemented agent banking, and restructured our deposits system.

What do you have planned for 2017 and beyond?

First, to further maintain and increase our growth levels domestically with more presence and deposits attraction furthering our network and outreach of ATMs, branches and cash offices. We will also implement a mobile payment system services, and continue our regional expansion by strengthening our presence in our newly launched branches and stepping towards African expansion.

Are you as optimistic about growth in the region as you were before? Have any of the region’s issues adjusted your expectations?

We are optimistic as the potential is there more than ever. The economy of the region is thirsty more than ever for a Shari’ahcompliant model that caters to financial inclusion and sustainability of the communities and encourages growth. The region is in great need for such models especially in unbanked areas in Muslim nations, or those who have more conventional banking and require the services and products which are Shari’ah compliant but cannot find them due to lack of Islamic banks.

Fadi Al Faqih

What have been your main technological innovations in the last year?

First, we implemented paperless account opening via tablets. Next, we revamped and improved our mobile banking app. We also upgraded our call centre. The acquisition of Canar will help lay ground for more cont. overleaf

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technological advancement, development and implementation of the mentioned.

How do you see the state of Islamic finance in 2016?

Islamic banks have witnessed double-digit growth rates, surpassing their conventional peers. Appearance has it that all seems well for the Islamic banking industry. There is ample opportunity for growth as Islamic banking rarely exceeds a third of total market share, even in the Gulf Cooperation Council (GCC) countries and Malaysia. Several potential markets with large Muslim populations remain largely untapped, such as India and the Commonwealth of Independent States countries, made up of the former Soviet republics. However, banking penetration in many of the industry’s core markets remains low considering the above.

Looking around, GCC countries have not yet achieved the banking penetration levels of countries such as France or the United Kingdom despite the wealth of money moving in that region. At the same time, several new markets have opened up for Islamic banking, with even more on the horizon. The African continent is a big potential market and holds strategic potential where Sudan is concerned. And according to research countries such as Botswana, Kenya, Gambia, Guinea, Liberia, Niger, Nigeria, South Africa, Mauritius, Senegal and Tanzania already have Islamic banking activities. There is scope for development in Zambia, Uganda, Malawi, Ghana and Ethiopia, all countries with relatively large Muslim populations, making them fertile and suitable to absorb Islamic banking and its products.

That being said Islamic finance is still at a nascent stage of development in SSA (Sub Saharan Africa). The share of Islamic banks is still small and Islamic capital markets are virtually nonexistent. At the same time, the demand for Islamic finance products is likely to increase in coming years. At present, about half of the region’s total population remains to be banked. Furthermore, The SSA Muslim population, currently at nearly 250 million people, is projected to reach 386 million in 2030 and financial activities are expected to rise as a share of GDP.

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With that, opportunities for development will be inevitable. Opportunities for Islamic finance to expand and extend its services to meet with the growing needs in retail products to small and medium-sized enterprises, Sukuk issuance, microfinance, etc. are expected.

What’s your personal management philosophy?

I have always adopted openness and communication with staff as a constant.

This is demonstrated by an open door policy, easy approach and constantly meeting with staff in different lines of jobs and grades and ensure their enquiries, issues and concerns are constantly followed up showing support, appreciation and transparency. Additionally, through communication, it is important to ensure the whole organisation is on the same direction and objectives to follow through achieving the results and targets expected making sure gaps and recovery plans are in place. Innovative ideas come up, making solutions or improvements to our service and products. Moreover, lessening and ensuring the smooth transition of change in the organisation gives necessary comfort.

Fadi Al Faqih

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COUNTRY FOCUS SUDAN

Sudan navigates tricky waters WHILE THE SUDANESE GOVERNMENT HAS COMMITTED TO HEALING CONFLICT, RENEWED SANCTIONS CAST DOUBT ON 2017 ECONOMIC HOPES

A

string of high-level meetings with African, European and United Nations officials at the beginning of 2016 set the tone for Sudan’s goals for the year, the highlight of which being the milestone “Roadmap Agreement” that will ideally set Sudan down the path of peace.

At the end of March, United Nations Secretary-General Ban Ki-moon welcomed progress on the African Union roadmap agreement between the Sudan Government and political groups in Darfur, South Kordofan and the Blue Nile states to end fighting that has broken out intermittently since 2011.

The agreement was brokered by the African Union High-level Implementation Panel (AUHIP) for Sudan and South Sudan, which is chaired by former South African

President Thabo Mbeki. Following a three-day meeting on 21 March in Addis Ababa, Ethiopia, the Government of Sudan and Mbeki signed the agreement; the opposition parties did not.

Nevertheless, in a statement from his spokesperson, SecretaryGeneral Ban remained optimistic that the initiative would bring together the Sudanese Government and several opposition parties “to reach an agreement on a cessation of hostilities, humanitarian access and assistance and an inclusive national dialogue process.”

SANCTIONS TROUBLE In late 2016, the US Government decided to extend sanctions against Sudan for another year, which sent shockwaves through Sudan. The Embassy of the Republic of the Sudan issued a

statement after the United States renewed its sanctions against the country.

I n t h e s t at e m e n t , t h e Embassy said it considers the renewal “an unjustified decision against human rights and Sudanese people.”

It continued, “In what has by now become an irrational routine so thoroughly entrenched in US policy, the White House has once again renewed the c o m p l e t e l y, i n e x c u s a b l e unilateral sanctions that the US has imposed against Sudan since 1997. There is no question that this is an unproductive ‘leverage’ that the US Government is solely misusing.”

The sanctions, which have been in place for 19 years after the US deemed Sudan a state sponsor of terrorism in the 1990s, were

A look at some of Sudan’s famed pyramids.

(CREDIT: CLICKSAHEAD/SHUTTERSTOCK)

cont. on page 20

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COUNTRY FOCUS SUDAN

cont. from pg 18

increased in breadth during the Darfur crisis in 2007. In 2009 under President Barack Obama, the US began to ease the measures slightly.

Pressure has built for the US to lessen or remove the sanctions.

A 2015 report by United Nations Special Rapporteur Idriss Jazairy characterised the measures as risking a violation of human rights.

The Embassy argued that the sanctions’ removal “has always been conditioned on goals that, once met by Sudan, invariably give birth to new ones that now become the condition.” It noted that the country has been involved in counterterrorism efforts led by the US for fourteen years, and implied that ongoing sanctions could hurt US national security efforts on this front.

“What undoubtedly will jeopardise any national security is the polarisation and alienation t h at r e s u l t s f r o m p e o p l e perceiving a given set of actions or attitude as utterly unjust and uncalled for. And unfortunately the Sudanese people, which once highly regarded the US Government, is increasingly adopting the same opinion and posture held by those in the Middle East. Surely this is not the reputation one would want to create if the goal is to build a bridge,” the statement read.

Sudan’s economy has struggled in the five years following South Sudan’s secession, with ongoing conflicts and a severe El Niño drought this year compounding efforts to stabilise the economy.

In a September review, the International Monetary Fund (IMF) said the country is a “fragile country facing significant domestic and international constraints and large macroeconomic imbalances despite efforts made toward macroeconomic stability and

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growth.” The country lost threequarters of its oil export capacity with South Sudan’s secession, and correcting external imbalance has been difficult.

“Sanctions and the withdrawal of correspondent bank relations weigh on trade, investment, and growth. Absence of progress toward debt relief limits access to official external financing,” the IMF said.

IMF LAVISHES PRAISE In late May, the IMF, led by Eric Mottu, visited Khartoum, and spoke highly of Sudan’s economic progress.

Mottu said that Sudan has made “remarkable progress” toward macroeconomic

Sudan’s economy has struggled in the five years following South Sudan’s secession, with ongoing conflicts and a severe El Niño drought this year compounding efforts to stabilise the economy. stability and growth following the shock of the secession five years ago and amidst a difficult environment.

Mottu attributed much of the progress to policy adjustments to help to contain the fiscal deficit, slow money growth, reduce inflation, and support growth, as well as institutional reforms that strengthened tax collections and public financial management.

The Sudanese authorities launched a five-year reform plan for growth and poverty reduction.

In 2015, good harvests boosted growth to close to five per cent, and inflation was contained at 12.8 per cent in April 2016.

“Despite these efforts, growth prospects are constrained by

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sanctions and continued large macroeconomic imbalances.

The breakdown of correspondent bank relations due to de-risking associated with economic and financial sanctions weighed on trade, investment, and growth,” Mottu said in a statement at the end of the visit.

The budget deficit also widened to 1.9 per cent of GDP in 2015 owing to shortfalls in oil revenue.

Mottu noted that low commodity prices, increased central bank f i n a n c i n g o f g o ve r n m e n t operations, and limited exchange rate flexibility increased the external current account deficit to about six per cent of GDP and reduced the already low foreign exchange reserves.

Furthermore, the parallel exchange rate continued to depreciate and the premium widened as the official rate remained virtually fixed. As a result, the outlook is mixed and macroeconomic stability rests on continued large external financing, Mottu said.

The IMF team encouraged the authorities to accelerate policy consolidation and reforms to restore macroeconomic stability and promote inclusive growth.

With sanctions renewed, however, stability could be threatened, though the banking s e c t o r, e n t i r e l y S h a r i ’a h compliant, has remained resilient, and has maintained the respect of the Islamic finance world throughout.

www.islamicbusinessandfinance.com

10/11/2016 17:52

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DUBAI

REGULATING

THE ISLAMIC ECONOMY THE UAE’S HIGHER SHARIA AUTHORITY WILL PLAY A BIG PART IN THE FUTURE, WRITES ABDULLA MOHAMMED AL AWAR, CEO OF DUBAI ISLAMIC ECONOMY DEVELOPMENT CENTRE

T

he primary goal of the Dubai: Capital of Islamic Economy initiative that was launched in 2013 is to build an economy with a sound and well-defined infrastructure along with a unified local and regional regulatory framework that serves as a basis for establishing an international benchmark.

The need of the hour is to unite various segments of society in the conviction that Islamic

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DUBAI

Abdulla Mohammed Al Awar

economy is a sustainable solution to the issues witnessed across the globe, caused by reckless economic strategies that do not take development imperatives into account and lose sight of the human aspect amidst the expansion process.

We have come a long way in this regard: we have identified the goals of Islamic economy, the factors of sustainable growth, and the legality of circulating money and employing it in the real economy. Our latest cultural and scientific mission is to produce the most appropriate instruments to achieve our objectives.

After the UAE Cabinet announced the establishment of the Higher Sharia Authority that will oversee the financial and banking sector, we are closer than ever to attaining our goals.

Since the biggest challenge facing Islamic finance is the implementation of uniform standards to regulate transactions, this decision represents a groundbreaking step.

The UAE Cabinet, during the same session, also launched the Cohesive Families 2021 campaign.

Built around the premise that the nature of a country’s economy defines the nature of its society, the initiative aims to develop a close-knit society with economic and social roles based on balanced and reciprocal relationships of care and inclusion.

Building a strong economy with a firm legislative and regulatory infrastructure always starts from top and rests upon defining the competences of the supreme authority in line with the trends, people’s needs and aspirations as well as the development imperatives. This is the characteristic of true leadership as defined by modern economic and social sciences.

When we talk about regulating Islamic economy, we mean implementing a framework to integrate its sectors and guide them towards development so that they can contribute to raising the GDP and to the competitiveness of the national economy.

We do not mean isolating Islamic economy from the overall economic environment.

The Higher Sharia Authority will conduct its activities in the context of the national economy ecosystem, maintaining strong relations with the conventional sectors. The objective is to spread the positive impact of the responsible practises adopted by the financial institutions that embrace the Islamic economy culture, a culture whose foundations stem from elementary historical theories that consider humans and

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society at large as natural products of economic infrastructure. This is what correlation between a regulated Islamic economy and stable national economy means.

Regulating an Islamic economy in its capital, Dubai, that embraces and supports the initiative, will have significant impact on the UAE’s market competitiveness and investment attractiveness.

I strongly believe setting up the Higher Sharia Authority will enable us to achieve a more stable and sustainable economy as well as instil the Islamic economy culture in institutions and individuals. When the legislation is clear and the standards harmonised, they will become inherent in the daily economic practises.

By nature, people are wary of the ambiguous, especially when it comes to the fate of their money. The presence of legal authorities overseeing banking and finance institutions that report to a higher regulatory body will direct the flow of private and public wealth towards the development of a real economy, towards production and manufacturing, and ultimately towards enhancing the national economy base and diversity.

Furthermore, the unified Shari'ah framework will assist in defining the priorities in accordance with people’s basic needs and protect wealth from risk. At the same time, it will help the sector to overcome challenges not only where investments and wealth utilisation are concerned, but also when it comes to Islamic financial services, such as Takaful, and projects based on partnerships between society and institutions.

Another benefit that will result from the formation of the Higher Sharia Authority lies in the model it will present to the world that will eventually speed up the implementation of similar steps in other countries. We can achieve this as long as we share our experience and communicate it to others at regional and global events.

Regulating Islamic economy, or any other economy, needs to nurture a culture of responsibility, a culture based on science and jurisprudence, which embraces the latest developments, inspires new rules and regulations, and is compatible with the factors that drive economic growth. After all, if the structure of the economy is the body that conducts business, the culture of Islamic economy is undoubtedly the spirit of this body.

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AFRICA

Ethiopia’s path forward GETAHUN NANA JENBER, VICE GOVERNOR, NATIONAL BANK OF ETHIOPIA WRITES ON THE LANDSCAPE FOR ISLAMIC FINANCE IN HIS NATION, AND WHAT ETHIOPIA MUST DO TO TAP ITS POTENTIAL

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AFRICA

E

thiopia, with an area of about 1.1 million square kilometres, is a fairly large country. Its population is about 100 million. In Ethiopia, the Muslim population accounts for about 33 per cent. A large part of the population still remains rural and unbanked. Ethiopia has had an impressive track record of growth and poverty reduction in recent years, with GDP growth averaging 10.1 per cent between 2010/11 and 2014/15. As a result, poverty has declined markedly.

Extreme poverty fell from 44 per cent in 2000 to 23 per cent by June 2015. Throughout this period of economic development, Ethiopia maintained low level of inequality (with a Gini index of 30 per cent which is low by international and Sub-Saharan Africa standards) and greatly improved social well-being.

Agriculture remains the backbone of the economy. It employs more than three quarters of the nation’s workforce and contributes to around 40 per cent of GDP. Close to 80 per cent of the country’s exports are agricultural. Despite the Government’s concerted efforts to bring structural transformation in the economy, its pace has been very slow. Ethiopia’s current Growth and Transformation Plan (GTP II), therefore, seeks to transform the economy from a predominantly agrarian to a modern and industrialised economy. The key GTP II goal is for Ethiopia to become a lower middle-income country by 2025, through average annual real GDP growth of 11 per cent per annum between 2015/16 and 2019/20.

Achieving these ambitious five-year GTP II growth objectives and sustaining investment rate of almost 40 per cent of GDP per annum requires mobilising cont. overleaf

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AFRICA

cont. from pg 25

domestic resources and significantly raising domestic savings. This can only be achieved if the financial sector, particularly the banking industry, can play significant role in mobilising desperately needed savings from domestic sources. Ethiopia’s saving investment gap at present is very high—around 20 per cent.

The Government plans to reduce this gap to around 10 per cent by June 2020. The key for achieving this goal is the development of sound and vibrant financial sector, particularly the banking industry, which is critical for the mobilisation and efficient allocation of scarce savings.

In consideration of this fact, Ethiopia is currently making efforts to mobilise domestic savings through rapid expansion of financial access and inclusion.

As of June 2016, 18 banks, 17 insurance companies, 35 MFIs, and five capital goods finance companies operated in Ethiopia.

Bank branch expansion has been impressive over the last decade or so. The number of bank branches started from low base of 680 in 2010 and reached 3,448 in June 2016. As a result, during this period, population per branch declined from 113,235 to 26,742 and the number of bank accounts went up from only four million to close 20 million. Mobile and electronic banking is growing fast. The banking sector at large is safe and sound. At the end of June 2016, the industry capital adequacy ratio stood at 16 per cent, non-performing loans at three per cent and return on capital at 43 per cent.

Ye t , a c c e s s t o f i n a n c e remained very low. The 2014 World Bank Financial Inclusion Survey indicated that only 22 per cent of adult Ethiopians have accounts

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in formally regulated financial institutions. This shows that although there is strong saving culture in Ethiopia, banks were not able to leverage it for higher formal domestic resource mobilisation. It is, therefore, believed that current strong informal savings culture in Ethiopia could drive adoption of regulated financial products, should they fit the needs and habits of most currently excluded segments of the society.

Greater savings mobilisation by the regulated financial sector requires product tailoring and innovation, as well as convenient access points. Customers usually would like to get a range of financial products that meets their needs and savings preferences. There is an increasing body of knowledge at the international level showing that product design need to be customer-centric and take into consideration the current financial habits, and religious and cultural preferences of potential customers.

The World Bank Financial Inclusion Survey 2014 indicated that a large portion (78 per cent) of unbanked Ethiopian adults believe that they have no sufficient funds to be deposited in formal financial institutions and thus it is the most important barrier to financial access. Given that most Ethiopian adults are saving, borrowing, insuring and making payments outside of the regulated financial sector this perception suggest that financial institutions may not be appropriately tailoring their products, practises or delivery channels to Ethiopians’ locations, income, financial patterns and economic lives. This wrong perception of not having

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sufficient funds to be deposited in formal financial institutions could also be because of lack of awareness and other nuances.

Financial inclusion survey 2014 of the World Bank further showed that approximately 12 per cent of Ethiopian adults feel that distance to a regulated financial service provider is the second most important barrier to get financial services from such institutions. This suggests the importance of improving convenient access points to formal financial institutions (i.e., branch and non-branch, physical and remote) in rural and urban areas.

Surprisingly, according to the World Bank Financial Inclusion Survey 2014, although availability of Shari’ah-compliant financial services is limited, only one per cent of the surveyed adults cited religious reasons as a barrier for financial inclusion. This again might be because of lack of awareness.

Shari’ah-compliant financial products are just emerging in Ethiopia. In 2008, the Ethiopian Government allowed financial institutions to provide Islamic banking ser vices through opening separate windows.

Following this regulation, eight conventional commercial banks started offering Islamic banking service by opening separate Shari’ah-compliant banking windows in their respective branches. As of 30 June 2016, these commercial banks opened only 128,268 saving accounts (Wadiya, Amana, Mudharaba) and mobilised less than one per cent of total banking sector deposits. Shari’ah-compliant financing facilities that these banks provided to their customers are insignificant. Moreover, of

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AFRICA

SIX KEY BARRIERS FOR UNBANKED ADULTS INSUFFICIENT FUNDS

DISTANCE

78%

12%

COST OF SERVICE DOCUMENTATION

2%

TRUST

1%

1%

RELIGIOUS REASONS

1%

SOURCE: Findex 2014

the 35 microfinance institutions, only two of which are operating in Muslim-dominated regions of the country (i.e. Somali and Afar) are providing Islamic banking services to only 18, 076 customers.

In general the role being played by banks in providing Shari’ahcompliant financial products and services needs to be further enhanced in Ethiopia.

In short, the Ethiopian Government considers its financial inclusion agenda as a key for domestic resource mobilisation. To this end, it has drafted an ambitious strategy that aims to improve financial inclusion from 22 per cent in 2014 to 60 per cent in 2020. The following major strategies have been emphasised to achieve the envisaged goal: Strategy 1: Strengthening (financial and other) infrastructure including mainly payments, credit and regulatory infrastructure that enable the emergence of a range of suitable products and services delivered through diverse and ubiquitous access points; Strategy 2: Ensuring the supply of an adequate range of suitable products and services so as to build a nation-wide network of convenient, diverse, ubiquitous

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and interoperable access points; Strategy 3: Building a strong financial consumer protection framework; and Strategy 4: Improving financial capability levels.

Specific to Shari’ah-compliant financial products and service, as part of the implementation of our financial inclusion strategy, a comprehensive study will be conducted to understand the actual demand for these services and whether a significant proportion of Muslims are excluded from conventional services on the basis of their religion. If this is identified to be a barrier, a specific and enabling regulatory framework will be developed so as no one is excluded from obtaining financial services because of religious reasons.

Let me conclude by stating that capacity limitation is one of the greatest challenges that we face in creating strong and vibrant Islamic finance in Ethiopia. As stated earlier, Islamic banking is just emerging in Ethiopia.

Development of a sound financial system infrastructure, as well as regulatory and supervisory regimes (such as licencing, prudential regulation etc.), a suitable accounting and auditing framework and

supportive legal and financial market infrastructures are key for promoting Islamic finance as a viable and competitive c o m p o n e n t o f t h e o ve r a l l financial system. In spite of this, our capacity at country level (both in the Government and private sector) is extremely limited. Most importantly, we lack adequately trained, experienced and skilled policy makers, bankers and lawyers who can understand, interpret and put in action specific Islamic finance industry products and services, regulatory and supervisory tools, risks and risk mitigation mechanisms, systemic liquidity infrastructure as well as transparency, governance, and information infrastructures; dispute resolution framework, and Shari`ah governance regimes (including a Shari`ah board). The second most important challenge that we face is lack of awareness.

Most people may not be aware of available financial products and services, as well as the benefits of using them.

To overcome these challenges, the National Bank of Ethiopia will take a number of policy, regulatory and supervisory actions essential for the development and rapid growth of Islamic finance in Ethiopia.

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HALAL BUSINESS

The rise of the Halal market AT THE GLOBAL ISLAMIC ECONOMY SUMMIT 2016 IN DUBAI, A NUMBER OF HALAL EXPERTS DEBATED THE CHALLENGES AND OPPORTUNITIES FOR HALAL WORLDWIDE

T

he Halal industry has seen its success rise over the years, but make no mistake—there is still a vast amount of untapped potential.

At the Global Islamic Economy Summit 2016, Zohra Khaku, Founder of Halal Gems UK, and other prominent international authorities working in senior positions within the Halal industry shared their insights and deliberated about the current state of the Halal market and the numerous opportunities that exist for its development.

With a prospective customer base of approximately 1.6 billion Muslims worldwide, and $1.1 trillion currently spent every year on Halal products, the industry is one of the best examples of a sector within the Islamic economy that has far-reaching, cross-cultural engagement with consumers and manufacturers.

There has been a positive shift amongst non-Muslims regarding Halal food in recent years as changing behaviours amongst consumers has placed a focus on the quality of food and where it is sourced from, a core principle of Halal since the concept was founded.

28

Counterintuitively, while a number of non-Muslim countries have recognised the opportunity and established a robust supply chain network, Muslim markets remain net importers of Halal food. At present, the Organisation of Islamic Cooperation countries import as much as 50 per cent of their vegetable products, 32 per cent of processed food, and 18.5 per cent of animal products.

“The Halal industry has made vast strides in recent years as consumers become more inquisitive about where their food is sourced from.

G r e at e r c o o r d i n at i o n a n d standardisation globally about what constitutes Halal food is a barrier that can, and needs to be, overcome, in the coming years to ensure that the sector’s full potential is attained in the Islamic world,” said Mohammed Badri, Managing Director at the International Halal Acc. Forum UAE. R a f u - u d d i n S h i ko r, Managing Director of Dinar Standard UAE, agreed. “There is an understanding in many western markets that Halal food

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is synonymous with healthy food. The industry needs to be ready to capitalise on this, as it is a positive association for the Islamic faith. Muslim countries in particular need to try and become better at producing Halal food as there is a huge opportunity on offer which is currently being seized by countries such as Brazil and Australia.”

Despite challenges, there remains huge optimism for Halal.

“The future prospects for Halal are extremely bright. The youth of today is extremely engaged in such matters, and beyond food, there is a whole industry that can be tapped, such a Halal chains of restaurants or hotels specialising in Halal products.

Better collaboration and an international standardisation of Halal products will help to catalyse the sector for future growth,” Saqib Mohammed, CEO at Halal Food Authority UK.

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HALAL BUSINESS

Beaming up to the enterprise AT A TIME WHEN TRADITIONAL INVESTMENTS ARE GATHERING LITTLE MORE THAN DUST, ISLAMIC ENTERPRISES STEP INTO THE SPOTLIGHT

T

he inaugural Frontier Exchange Islamic Enterprises Roadshow in London could not have come at a better time. While investors struggle to squeeze returns out of the limited options available, the flourishing Islamic enterprises sector is hungry for capital.

Globally, savers and investors have been getting a raw deal.

Thanks to secular stagnation, there is little reward for those who prudently put money aside. Those with a glut of savings face low growth and few opportunities.

Many investors have the unhappy choice of paying a bank to sit on their money, or taking bigger risks to get better returns.

30

Islamic investors face even less of a choice. Despite accounting for 25 per cent of the world’s population, less than two per cent of global financial assets are Shari’ah-compliant.

With this in mind, it is little wo n d e r t h at t h e I s l a m i c enterprises sector is one of the fastest growing asset classes in the investment universe.

PERFECT PARTNERSHIP “Investment should be about balancing risk and return,” said Meziane Lasfer, Professor of Finance at Cass Business School.

“Negative yields mean you pay a bank to keep your money. This will not pay your pension.”

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While investors are stumped by a dearth of conventional opportunities, Islamic enterprises have struggled to scrape together any capital. Islamic banks have traditionally favoured real estate investments, leaving many promising enterprises starved of the finance they need to grow.

This does, however, leave the field wide open for Islamic investors.

“Finance is not just banking,” said Lasfer. “We have so many systems that allow companies to grow, such as crowdfunding and angel investing. Islamic finance is at a crossroads. It’s growing, but lacks an ecosystem that would allow companies to prosper, investors to find opportunities

Investors are hitting Islamic enterprise at warp speed.

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(tomertu/SHUTTERSTOCK)

HALAL BUSINESS

and companies to raise capital.

To do this, we need a forum and a governance system that will protect investors. Finance needs to be merged with companies.”

Islamic enterprises have largely escaped the spotlight, despite rapid evolution over the last four decades. While the Halal food industry has been the poster child for Islamic business, opportunities in biotech, fintech and green technology have largely gone unpublicised.

However, the world is changing.

A WHOLE NEW WORLD Improved industry infrastructure in the Islamic world, a wider investor base and greater cross-

border transactions have all helped polish the opportunities ava i l a b l e i n t h e I s l a m i c enterprises sector. The falling oil price has forced the Gulf region to look towards sustainable industries. Meanwhile, London has trumpeted its intention to foster greater global trade as it severs its ties with the EU. Islamic enterprises simply cannot stay out of the spotlight any longer.

According to Iqbal Asaria, Associate at Afkar Consulting, a shift in demographics will nudge western countries into more cross-border investment with Muslim countries boasting youthful populations. “Europe has a problem,” he said. “For any population to stay stable, you need a birth rate of 2.2 per family. In Europe the birth rate is 1.7 per family. There is a shortage of young people coming onto the labour market. Life expectancy is approaching 80 plus. There is a mismatch.

“Europe would need to import 40 million young people to keep its balance. Politically, this is not feasible. It would destroy politics and encourage right wing fascism. The only way is to invest in countries with young people and get a return from it. All Europe’s neighbours are Muslim.

Europe will have to accommodate them in some way. We have to benefit from each other.”

Asaria believes that the answer lies beyond conventional finance.

Currently, only three per cent of banking and finance goes into production. Only 25 per cent of the population are banked, meaning finance doesn’t touch 75 per cent of the population.

“Inequality is growing,” he said. “We need to focus on inclusive growth.”

However, the answer doesn’t lie exclusively with Islamic finance. “Finance should be faith-based: Muslims do not have the monopoly on morality,” said Omar Shaikh, Executive Board Member of the Islamic Finance Council UK. Shaikh explained that the Islamic Finance Council UK had spent the last six years focussing on ethical finance.

Finance should be faithbased: Muslims do not have the monopoly on morality.

OMAR SHAIKH, Executive Board Member of the Islamic Finance Council UK

This culminated in a partnership between the Islamic Finance Council UK and the Church of Scotland. The joint venture is creating ethical financial services based on shared values.

“Be wary of Halal washing,” warned Shaikh. “Are we using this as a branding exercise?

There is an element of creeping cynicism in the industry. People of all backgrounds are looking for a more socially responsible form of finance. Islamic finance has debunked the myth that there is a haircut to the returns of ethical funds.”

CURING CAPITAL Equity finance is at the heart of all sustainable finance, Islamic or otherwise. And yet enterprises still struggle to attract ethical investors. “Entrepreneurs are often frustrated and held back by the lack of capital available to expand their businesses – this problem is much bigger for those looking for Shari’ahcompliant finance,” said Faizal cont. overleaf

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HALAL BUSINESS

cont. from pg 31

Karbani, Chief Executive Officer of Simply Ethical.

The Islamic Frontier Exchange Islamic Enterprises Roadshow gave the world a glimpse of what could be achieved if more investors were aware of the opportunities in the Islamic enterprises sector.

Dr. Farid Khan, Chairman of Protein Technologies, reminded the audience that it is an obligation upon Muslims to find a cure for every disease except old age. “There is no disease that Allah has created, except that He also has created its remedy.”

(Bukhari 7.582).

There is no denying that biotech is a risky investment, with only 25 per cent of companies yielding any returns for their investors.

However, the stakes are high.

When a company succeeds, not only are the yields impressive but the whole of humanity stands to gain. “The Qur’an teaches that if anyone saved one life, it would be as if he saved all mankind,” said Khan.

Today, institutions such as the UK’s National Health Service are crippled by the rising cost of drugs. Of the $110 billion the pharmaceutical industry spends each year on global research and development, 60 per cent is devoted to testing drugs in clinical trials. Khan, who has discovered drugs for Alzheimer’s, malaria and rare diseases, believes the cost of drugs could be slashed with medication adherence devices, which would make clinical trials more efficient.

M e d i c at i o n c o m p l i a n c e monitoring tools guarantee more accurate results, because they ensure that patients take the prescribed drug correctly. Khan

32

is currently aiming to raise funds to trial a new digital solution, which is non-invasive, easy to use and engineered based on patient feedback.

DEAD CAPITAL? Meanwhile, Matt Chandran, Chief Executive Officer of iGene, argued that while biotech has been myopically focussed on the living, it can also benefit the dead. iGene, which specialises in Advanced Medical Visualisation Technology, pioneered Digital Autopsy. Billed as a compassionate step forwards for those suffering a loss, Digital Autopsy uses radiology to establish a cause of death.

“Autopsies have been an invasive and bloody affair for hundreds of years,” said Matt.“In all countries, ancient methods persist and sadly this method of gross mutilation is the only option.” iGene harbours ambitions of opening further centres for Digital Autopsy, ensuring that it is available throughout England and Wales. The concept has already garnered praise from international journals as well as famous names such as HRH the Duke of Edinburgh and former UK Prime Minister David Cameron. “ We d o n o t t a k e a ny investment,” said Chandran.“We would like to know the source. If it’s a Shari’ah-compliant fund, that is really good, but we will be open to conventional finance as long as it’s ethical.”

Chandran’s stance was echoed among all Islamic enterprises seeking capital, whether operating in the food, technology, tourism or fashion space.

Where potential is limitless and possibilities are endless, Islamic enterprises cannot afford to be constrained by branding.

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Entrepreneurs are often frustrated and held back by the lack of capital available to expand their businesses—this problem is much bigger for those looking for Shari’ahcompliant finance.

FAIZAL KARBANI, Chief Executive Officer of Simply Ethical

GLOBAL ISLAMIC ECONOMY

ISLAMIC ECONOMY OVERALL SIZE 2015

2021

$ 1.9 Tn $ 3Tn Food & Lifestyle Projected Market Sector Expenditure Size (8% CAGR Growth)

ISLAMIC FINANCE ASSETS MARKET SIZE 2015

2021

$ 2 Tn $ 3.5Tn Total Islamic Projected Market Finance Assets Size (9.5% CAGR Growth)

SOURCE: Thomson Reuters

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ISLAMIC TECH

ITS goes T global ITS IS REFOCUSING ON THE FINANCIAL SECTOR AND EXPANDING WORLDWIDE, SAYS CEO NASR ALBIKAWI

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ell me about the new strategy of ITS.

We are now reshaping ITS. First of all, we are focusing on the financial vertical, expanding outside of the banking and going to other financial sector companies and subsectors like insurance companies, leasing companies, and everything that comes under the financial sector.

We are not limiting ourselves only to banks.

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ISLAMIC TECH

Before, we had solutions for education, for enterprise, and other market segments, and now we’re reshaping to produce applications for fintech and financial markets.

That is one of our identities— we’re going to be a software house producing products applications and solutions for the finance sector.

Second, we’re going to focus on providing services— support services, management services, ITO, outsourcing, and all other kinds of services as well, to support our customers in the financial sector and our previous customers in education, enterprise, government and more. We will support everybody—we will provide support to all markets and verticals. We’re one of the major players in the higher education world—we’re the company that installed this so we will keep supporting our customers in these areas. Everywhere where we have installed infrastructure, we will keep supporting them through our global centre in Egypt and through our support pools in the region.

These are the two main identities of ITS that we are shaping ITS around—being a software house for the financial market, and a service and support centre for all past, present, and future customers to provide international standards of support and services. We have one of the best support centres in the whole Middle East, and I know how support works and what kind of equality that you have to have in the support centre. ITS’ global delivery centre in Egypt is of the highest international standard. These are the two main identities.

The third area, that builds on top of the previous two, is our global growth. As you know, the demand for Islamic banking is growing all over the world. We have received calls from North America, South America, Russia, China and more. If people do a search on the major players for Islamic banking solutions, ITS is one of those players. We are planning to respond to this demand that is growing by going global through our channel partners. We’re finalising our channel programmes, have partners in Africa, and are talking to partners in Canada and the US. Currently we are working on revamping and modernising our solutions. By the end of fiscal year 2017 we will be done, and then we will implement that worldwide through our channel partners at different levels.

What are the challenges you have in keeping up with the pace of innovation in the fintech sector?

To understand the challenges we have in the market, first we must understand what the market needs, and understand the specific needs of Islamic banks. Recently, I was in Bahrain attending the Accounting and Auditing Organization for Islamic Financial Institutions (AAOFI) meeting, and I met many banks throughout the world.

I was happy to hear that they all acknowledged that ETHIX is one of the most respected in the market, and meets their requirements. We recently closed deals with North Africa and Southern Africa, with the major players in the market—some conventional, some Islamic.

Because we have the application

I can say proudly that we are the best in this area, and we have the edge in this area among all our respected competitors, including the major players in the market.

NASR ALBIKAWI

What was the rationale behind implementing this new strategy?

We need to focus. We need to go after the demand in the market, we need to go after the profitable business, and we need to do what we are good at. ETHIX is one of the best applications recognised worldwide, and we need to concentrate on that solution.

We need to make sure we have the best quality of service, the best quality of product, and get the best applications to our customers to ensure success going forward.

ready, we can meet customer requirements to the maximum.

Our long experience in the field is also a big differentiator for customers—they know that we have what they need.

Keeping this market edge requires a lot of effort. Whether it’s a major big company or a small company from a small country, companies will come and try to compete with you by reducing their prices—that is a major challenge for us. We believe in healthy competition, but on the right playground. Some come at you unfairly and they hurt you. cont. overleaf

www.islamicbusinessandfinance.com

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ISSUE 100 | Islamic Business & Finance

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10/11/2016 17:05

ISLAMIC TECH

cont. from pg 35

ITS wins big at the Islamic Business & Finance Awards 2015.

Fortunately, they cannot continue this long term because they will be exposed—clients will realise the reality of these companies. To deal with that, we must continue working to meet the demands and needs of customers for a sector that is still growing.

We also have a challenge with Shari’ah standardisation. Since there are scholars who do not agree, keeping a product that can remain flexible for anyone is a key challenge for us, and something we work hard to overcome. I can say proudly that we are the best in this area, and we have the edge in this area among all our respected competitors, including the major players in the market.

The IT industry also faces challenges with human capital as well—it takes a while to get people up to speed and to become productive, and finding people who can do that is not easy.

36

That is why we work with universities to have them understand the requirements in the market and try to bridge the gap between academic life and practical work life, in order to produce students who are closer to understanding the market, not just understanding their textbooks. We are doing this in Kuwait, Egypt, Saudia Arabia, UAE and Jordan, to produce people who are more ready to start working. Talent availability is a challenge but this is something that all of our industry is facing.

These are the major challenges that we are facing.

How is the strength of ITS today?

ITS is very financially strong, very well supported. We are owned by Kuwait Finance House (KFH), who are behind us fully and support us. We went through some tough times in the last few years, and

Islamic Business & Finance | ISSUE 100

page 34-36 Islamic Tech.indd 36

there were false rumours spread about us, but recently KFH gave us even more working capital, showing that they support the company and want to continue the company. There have been many international offers to acquire ITS but KFH has refused it as they believe in the technology and want to help other banks and the financial sector with the best technology available. With this new capital injection, we have no problems, no intentions to sell or to close, and will continue strongly going forward. On the contrary, they believe in our vision, our profitability, and our products and services. They strongly believe that ITS should go global and KFH, through their entities in Turkey, Germany and as they expand, we will expand with them to support other financial companies in the vertical. We are financially strong, and belong to a very strong group.

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09/11/2016 18:42

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SUKUK

OUTSTANDING SUKUK MAP OUTSTANDING SUKUK MAP

THE SIZE OF THE OUTSTANDING SUKUK MARKET GLOBALLY AS OF 5 NOVEMBER 2016 The size of the outstanding Sukuk market globally as of 06 Nov 2016

SOURCE: Zawya Islamic

ANNOUNCED SUKUK IN NOVEMBER 2016 STATUS

ISSUER NAME

SUKUK NAME

SUKUK STRUCTURE

COUNTRY

CURRENCY

SUBSC. DATE

ISSUE SIZE ($M)

MARGIN

TENOR

ARRANGER/ADVISOR

Announced

Cahya Mata Sarawak Bhd

Cahya Mata Sarawak Sukuk Ijarah Program

Ijarah

Malaysia

MYR

-

-

-

-

-

Announced

Ministere des Finances - Tunisie

Tunisia Sukuk

Unknown

Tunisia

TND

20-Oct-16

443.361

-

-

-

Announced

Saudi Arabian Airlines

Saudi Arabian Airlines 2016 Sukuk

Unknown

Saudi Arabia

SAR

14-Jul-16

1,333.37

-

-

HSBC Saudi Arabia Limited

Announced

Jordan Dubai Islamic Bank

TAJ Mall Sukuk

Ijarah

Jordan

JOD

13-Jul-16

63.559

-

7 Years

Bank Alkhair B.S.C. Jordan Dubai Islamic Bank Jordan Investment Trust P.L.C

Announced

DSI Perpetual Sukuk Limited

Drake & Scull International Sukuk II

ModarabahMurabaha

UAE

USD

10-Jul-16

150

-

-

Al Hilal Bank PJSC Emirates NBD Capital Limited HSBC Bank Middle East Limited Standard Chartered Bank

Announced

Bank AlBilad

Bank Albilad Sukuk

Unknown

Saudi Arabia

SAR

16-Jun-16

266.709

-

-

-

Announced

FGB Sukuk Company Limited

First Gulf Bank Sukuk

WakalaMurabaha

UAE

USD

8-Jun-16

3,500

-

-

Citigroup Global Markets Limited HSBC Bank

SOURCE: Zawya Islamic

38

Islamic Business & Finance | ISSUE 100

page 38 Market Watch_100.indd 38

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13/11/2016 11:54

Generate, Preserve, Grow, Spend...

The UAE’s only authoritative magazine for the High Net Worth Individual

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SUKUK

Turkey aims for a bigger slice

Despite its rich Islamic history, Turkey has yet to reach its full potential with regards to Islamic finance.

TURKEY IS ATTEMPTING TO UNLOCK SUKUK’S POTENTIAL IN ITS MARKET, WRITES INTERNATIONAL LAW FIRM WHITE & CASE

40

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09/11/2016 18:18

SUKUK

A

s a fast growing emerging market and a major economy with its unique geostrategic position as the bridge between Europe, the Middle East and Asia, Turkey has a mature Islamic finance industry that aims to win a bigger slice of the global Sukuk market. As Turkey seeks to overcome a year fanned by a series of political events, its Government is determined to triple the share of participation banks—banks that operate in accordance with Islamic law—in the country by 2025. The vision, if successful, will make Istanbul a financial hub for Islamic finance, regionally and globally.

$

4.07

BILLION

worth of private issuances, all between 2011 and September 2015 While steps to establish participation banking were undertaken as early as 1985— through the incorporation of Kuveyt Türk and Albaraka Türk—the success of interestfree banking model was limited due to the lack of regulatory framework. However, as Sukuk gained popularity both within and outside of the Islamic world, the 2010-2015 period saw Islamic finance in Turkey growing significantly, underscored by new regulations in participation banking. The first Turkish Sukuk was issued in 2010 in the form of asset-based instruments known as certificates.

A further critical catalyst to the success of Islamic finance in the country was the introduction of public finance law and amendments to tax legislation in the years that followed. As a result, it issued eight sovereign Sukuk with an approximate total value of $7.71 billion, and numerous private issuances with an approximate total value of $4.07 billion—all between 2011 and September 2015.

The most common Sukuk structure in Turkey is Ijarah.

Under the practice, the entity seeking to raise funds establishes a special-purpose vehicle (SPV) for the sole purpose of issuing lease certificates, and then transfers the underlying assets to the SPV. The SPV then leases these assets back to the entity and issues lease certificates based on the proceeds of the lease. In addition to the Ijarah structure, the Capital Markets Board (CMB) in 2013 introduced new permitted Sukuk structures, including Mudharaba, Murabahah, Musharakah and Istisnah.

Commenting on the development if Islamic finance in Turkey, Derin Altan, Partner at White & Case’s Istanbul office said, “Turkey has gone from strength to strength in the past few years and has become a model for the world in interest-free banking. This is supported by the Government’s strategy of increasing the market share of participant banking from around five to 15 per cent by 2025, which would make Turkey an important player in global Sukuk market.”

On a larger scale, Turkish corporations and the Government are likely to step up its use of Islamic finance structure to fund public and public-private partnership

Debashis Dey

Encouraged by the broadened stamp tax, VAT and duty exemptions encompassing all types of Sukuk transactions, market players would likely be more willing to diversify their issuance structures, paving the way for a deeper Turkish Sukuk market.

DEBASHIS DEY, Partner, White & Case, Dubai

cont. overleaf

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14/11/2016 16:21

SUKUK

cont. from pg 41

(PPP) infrastructure projects, mainly airports, ports, bridges, highways, energy facilities and other transportation-related infrastructures. As of December 2015, Turkish corporations required additional financing of $350 billion in order to complete a backlog of projects planned through to 2023—some or all of which could be provided by Islamic financing.

Altan added, “Despite the viability and prominence of the Turkish Sukuk market, there have been only a handful of domestic corporate Sukuk issuances other than participation bank issuances.

As of June 2016, no international corporate Sukuk have originated from Turkish issuers other

8

Sovereign Sukuk issued

by Turkey at a total value of $7.71 billion than banks. However, certain participating banks appear to be laying the groundwork for such issuances by incorporating a separate asset leasing company (ALC) for third-party issuers.”

Globally, corporate Sukuk issuances constituted 36 per cent of the total volume of international Sukuk issuances in 2014, and 39 per cent of the volume in 2015. Participation by new players—especially the governments of the UK and Luxembourg, both rated AAA

by Standard & Poor’s—has been warmly welcomed by other market participants as sovereign participation in Sukuk issuances

42

pave the way for corporates to follow through.

Looking ahead, the first Turkish corporate to successfully issue an international Sukuk will inevitably need to overcome certain hurdles. However accommodating as regulators may be, these speed bumps create uncertainty that must be reflected in transaction timetables and cost estimates—a challenge in current global capital markets where favourable issuance windows appear and then disappear in the blink of an eye.

Encouraged by the broadened stamp tax, VAT and duty exemptions encompassing all types of Sukuk transactions, market players would likely be more willing to diversify their issuance structures, paving the way for a deeper Turkish Sukuk market.

The CMB, Borsa İstanbul and other governmental authorities in the Turkish financial markets appear to be extremely willing to encourage growth in the Sukuk and Islamic finance markets in Turkey. To achieve this, regulators should welcome and accommodate any commercially and legally reasonable Sukuk structures, even if doing so requires further legislative amendments.

As the relevant regulators have made clear, any amendment to regulations to accommodate a specific type of Sukuk would first require a proposed transaction t h at c a n b e p r e s e n t e d t o regulators for their review and consideration. Feedback and participation from all market players—including but not limited to banks, corporates, arrangers, law firms, other advisors and investors—will be key to shaping the future of the Sukuk market in Turkey.

Islamic Business & Finance | ISSUE 100

page 40-42 Sukuk-Turkey-100.indd 42

Derin Altan, Partner, White & Case, Turkey office

Despite the viability and prominence of the Turkish Sukuk market, there have been only a handful of domestic corporate Sukuk issuances other than participation bank issuances.

However, certain participating banks appear to be laying the groundwork for such issuances by incorporating a separate asset leasing company (ALC) for thirdparty issuers.

DERIN ALTAN, Partner, White & Case, Turkey office

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14/11/2016 16:21

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Others may subscribe to receive the magazine regularly through the subscription form below.

Institutions may also arrange bulk purchase orders of the magazine and its supplements to circulate among internal and external stakeholders. If you wish to arrange regular bulk deliveries, please contact subscriptions@cpifinancial.net for terms.

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TAKAFUL

Mixed results for GCC Takaful in 2016 RESULTS FROM TAKAFUL EMARAT, TAKAFUL OMAN INSURANCE AND AL MADINA TAKAFUL TOLD DIFFERENT STORIES IN THE FIRST NINE MONTHS OF 2016

W

ith nine month reports being posted, the story for GCC Takaful companies is varied. For Takaful Emarat, despite losing its CFO to a resignation in early fall, the company reported a net profit of AED 11.2 million for the first nine months of 2016. This is up 761 per cent, compared to AED 1.3 million over the same period last year. In addition, Takaful Emarat’s Total Assets at the end of Q3 were at AED 632.6 million, a 44 per cent increase from 2015 year-end.

Building on this, Takaful Emarat continues to invest in its business with an on-going focus on expanding its product lines and services as it continues to grow its market share and consolidate its leading market positioning.

In line with this strategy, the company will be launching several new fully digitised products in Q1 2017 across both its life and health lines of business, it said in a media statement.

Wael Al-Sharif, Chief Executive Officer at Takaful Emarat, commented, “We have delivered very strong nine months financial

44

results across our entire business with a 761 per cent increase in net profit of AED 11.2 million for the period. This success is directly linked to our increasing investment into expanding our range of products and services, the digitisation of these products, and placing the customer at the heart of everything we do. The team at Takaful Emarat continues to work exceptionally hard to ensure our innovative products and services continue to lead the market and fit the exact requirements of our customers.

“We are currently planning the launch of some exciting new products and services in Q1 2017, and I look forward to reporting on our on-going progress in due course,” said Al-Sharif.

The story for Takaful Oman Insurance was on a similar trajectory, seeing its nine months profit more than double in the first three quarters of 2016.

Takaful Oman Insurance reports nine months’ profit of OMR 2.1 million up from OMR 1.1 million a year earlier. Wakala fees rose 90 per cent to OMR 3.7 million on gross contributions that reached

Islamic Business & Finance | ISSUE 100

page 44 Takaful 100.indd 44

OMR 12.3 million up from OMR 5.5 million. Takaful expenses jumped to OMR 5.4 million from OMR 1.7 million.

The results were not the same for Al Madina Takaful, another Omani Takaful company.Al MadinaTakaful reported a net profit and surplus for the period to end-September of OMR 1 million, down from OMR 1.4 million a year earlier. Gross contributions were OMR 17.3 million for General Takaful and OMR 1.9 million for Family Takaful, down four per cent and up 19.6 per cent respectively. The surplus from Takaful operations before Wakala fees was OMR 2.9 million for General Takaful and OMR 303,472 for Family Takaful, up 12.5 per cent and 40.8 per cent respectively.

Al Madina Takaful saw a drop in Wakala fees to OMR 3.8 million from OMR 3.9 million a year earlier.

Mudharib fees were also down, falling 14 per cent to OMR 44,456.

Investment income was down from OMR 628,220 to OMR 480,500.

Takaful in the GCC still has a long way to go, and while not across the board, there are success stories still rolling in.

While some in GCC Takaful are seeing rises, others, while still seeing profits, are down on the year.

www.islamicbusinessandfinance.com

10/11/2016 17:07

11th Islamic Business & Finance

Awards 2016

Excellence through innovation Rewarding pioneers in Islamic finance

23rd November 2016 The Godolphin Ballroom, Emirates Towers Hotel, Dubai 7pm cocktail reception followed by dinner and the awards ceremony

SUPPORTED BY:

www.cpifinancial.net

For sponsorship and nominations opportunities please contact: Nap Estampador, Business Development Manager Tel: +971 4 391 4680 or Email: nap@cpifinancial.net bleed guide.indd 1

For other information please contact CPI Financial’s events team Tel: +971 4 391 4682 or Email: events@cpifinancial.net 07/09/2016 09:47

WIBC PREVIEW

WIBC:All you need to know MIDDLE EAST GLOBAL ADVISORS BREAKS DOWN THE WORLD ISLAMIC BANKING CONFERENCE 2016

46

Islamic Business & Finance | ISSUE 100

page 46-48 WIBC Preview-100.indd 46

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14/11/2016 12:02

WIBC PREVIEW

WHAT IS THE AIM OF WIBC? This year the conference revolves around the theme “Economic Uncertainties: Vigilance & Growth”, reflecting the fact that the global economy finds itself at an important inflexion point. WIBC 2016 is aimed at enabling Islamic finance to converge, strengthen and grow itself as an ecosystem, whilst equipping leaders with breakthrough insights to navigate the complexity of the global financial system.

PARTNERS Along with the strategic support of the Central Bank of Bahrain, the conveners of WIBC, Middle East Global Advisors (MEGA) have partnered with a powerful lineup of premier organisations. They include Kuwait Finance House (KFH), Abu Dhabi Islamic Bank (ADIB), Finance Accreditation Agency (FAA), World Gold Council, GFH Financial Group, Khaleeji Commercial Bank, Bahrain Islamic Bank (BisB), Al Salam Bank Bahrain, Boubyan Bank, Simply Shari’ah Human Capital, Bank of Khatoum International (BOKi), Thomson Reuters, Ithmaar Bank, Grant Thornton, Al Baraka Banking Group, Ernst & Young, Islamic International Arab Bank (IIAB), Path Solutions, Bahrain Economic Development Board, Luxembourg for Finance, Natixis, Capital Intelligence, Eiger Trading Advisors Ltd, SAB IT, Shari’ah Review Bureau, Deloitte, ELIAN, AAFAQ Center for Research in Islamic Economy, DDCAP Group, Fitch Ratings, Bank AlKhair and many more.

WIBC 2016 – AN INTRODUCTION

HIGH PROFILE DELEGATES

Welcome to the 23rd edition of the World Islamic Banking Conference (WIBC) 2016, the largest gathering of global Islamic finance and banking leaders, happening on the 5,6,7 December 2016 in Manama, Bahrain.

The World Islamic Banking Conference has established its reputation as the world’s largest and longest running platform for global Islamic banking and finance leaders for over 23 years.

WIBC 2016 is set to continue the legacy of excellence, innovation and growth gained in the past two decades by introducing fresh topical content and reaching a wider audience. With its strong focus on cutting edge content, WIBC remains the strategic event for staying on top of the global and regional trends that will shape the Islamic financial services industry in the near future.

This year WIBC is proud to present a great roster of speakers including high profile keynote speakers: • Dr. Ahmed Abdulkarim Alkholifey, Governor, Saudi Arabian Monetary Agency (SAMA) • His Excellency Alexander P. Torshin, State Secretary - Deputy Governor, Central Bank of Russia • HE Rasheed Mohammed Al Maraj, Governor, Central Bank of Bahrain The other world renowned speakers include: ▪ Mr. Khalid Hamad Abdul-Rahman Hamad, Executive Director Banking Supervision, Central Bank of Bahrain ▪ M r. Adel Abdul Wahab Al-Majed, ViceChairman & Chief Executive Officer, Boubyan Bank ▪ Mr. Hamed Hassan Merah, Secretary General, AAOIFI ▪ Mr. Tirad Mahmoud, Group Chief Executive Officer, Abu Dhabi Islamic Bank (ADIB)

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ISSUE 100 | Islamic Business & Finance

47

14/11/2016 12:02

WIBC PREVIEW

▪ Dr. Anwar Al Sadah, First Group Deputy CEO, Al Salam Bank ▪ Mr. Ahsan Ali, Managing Director, Head of Islamic Origination, Standard Chartered Bank ▪ Dr. Yahia Abdul-Rahman, Chairman & CEO, The LARIBA System- Bank of Whittier ▪ Ms. Farmida Bi, Head of Islamic Finance – Europe, Norton Rose Fulbright ▪ Mr. Mustafa Adil, Head of Islamic Finance, Thomson Reuters ▪ Mr. Mohammed Kateeb, Group Chairman & CEO, Path Solutions ▪ Mr. Cassim Docrat, RegionalDirector,DDCAPGroup ▪ Mr. Kurt Lieberman, Chief Executive Officer, Magni Global Asset Management LLC ▪ Mr. Fadi Al Faqih, CEO, Bank of Khartoum ▪ Mr. Fadi Al Qutub, Chief Investment Officer, Al Istithmar Capital ▪ M r. Onur Takmak, Founding Partner & Chairman, RHEA Asset Management ▪ Mr. Hassan Amin Jarrar, Chief Executive Officer, Bahrain Islamic Bank (BisB) ▪ Mr. Ashar Nazim, Partner, EY ▪ Mr. Bashar Al Natoor, Global Head of Islamic Finance, Fitch Ratings ▪ Mr. Lilian Le Falher, Executive Manager, Head of Treasury Kuwait Finance House, Bahrain ▪ Dr. Daan Elffers, Founder, Islamic Reporting Initiative ▪ Mr. Rehan Pathan, Head of Middle East and Malaysia, Arabesque Asset Management ▪ Mr. Dr. Ashraf Gamal El Din, Chief Executive Officer, Hawkamah ▪ Mr. Naji Moukadam, Managing Director, SAB ▪ Mr. Samer Hijazi, Head of Islamic Finance, Grant Thornton UAE ▪ Mr. Marco Lichtfous, Partner, Deloitte Tax and Consulting ▪ Mr. Stuart Hutton, Chief Investment Officer, Simply Ethical ▪ M r. Abdulla R. Shafeea, Head of Asset Management, The Investor for Securities Company ▪ Mr. Mohammad Raafi Hossain, Founder, Finocracy ▪ Mr. Tariq Al-Rifai, CEO, Quorum Centre for Strategic Studies ▪ M r. Monem Salam, President and Fund Manager, Saturna Sdn Bhd ▪ Dr Hatim El-Tahir, Director Deloitte & Touche, Middle East ▪ Mr. Mark Smyth, Chief Investment Officer, Tawreeq Holdings

48

Islamic Business & Finance | ISSUE 100

page 46-48 WIBC Preview-100.indd 48

▪ Ms. Shabnam Mohammad, Head of Structuring MENA & Group Head of Islamic Finance, Tell Group ▪ Dr. Aishath Muneeza, Associate Professor, INCIEF ▪ Ms. Nida Raza, Director Advisory Services, The Islamic Corporation for the Development of the Private Sector (ICD) ▪ Mr. Hamza Abu-Musa, Founder, SharedEq ▪ Dr. Mohammed Abdel-Haq, CEO, Oakstone Merchant Bank

HIGHLIGHTS OF THE EVENT This year WIBC will be seeing some new features: • Th e launch of Enterprise Excellerate on 5 December: A platform that will gather professionals from the fintech and digital banking industry as well as startups, and will aim to support the creation of an entrepreneurial ecosystem within the region in order to remain competitive with global trends.

• A brand new venue: WIBC will now take place at the Art Rotana Hotel & Resorts at the Amwaj Islands of Bahrain.

• Th e WIBC Majlis: An exclusive lounge area for conference participants, speakers and sponsors to gather and network in an informal setting.

• Launch of intelligence reports: WIBC will see the launch of five intelligence reports including: ▪ Thomson Reuters Sukuk Perceptions & Forecast 2017 ▪ The Bahrain Islamic Venture Capital Report by Thomson Reuters ▪ I slamic finance development report by Thomson Reuters ▪ S i m p l y S h a r i ’a h – Wo m e n i n I s l a m i c Finance report ▪ Ernst & Young Digital banking report

VENUE AND DATES WIBC will take place on the 5, 6, 7 of December at the Art Rotana Hotel and Resort in the Amwaj islands, a group of man-made islands in the northeast region of Bahrain, a few minutes’ drive from the Bahrain International Airport.

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14/11/2016 12:02

THE AUTHORITATIVE VOICE OF ISLAMIC FINANCE Essential reading for an expanding industry - Islamic Business & Finance is the world’s most thought-provoking monthly magazine dedicated to the development of Islamic finance globally.

Islamic Business & Finance is a controlled circulation publication. You may apply to subscribe via our website or by emailing subscriptions@cpifinancial.net

CPI Financial FZ LLC • PO Box 502491 Al Shatha Tower, Office 1209 Dubai Media City, Dubai, U.A.E. Tel: +971 (0) 4 391 4681 • Fax: +971 (0) 4 390 9576 • www.cpifinancial.net IB&F Oct2016 Issue 97-99.indd 1

04/10/2016 11:43

DATES FOR YOUR DIARY

30 November 2016

23 November 2016

(Gwoeii/SHUTTERSTOCK)

THE 11TH ANNUAL ISLAMIC BUSINESS & FINANCE AWARDS

For over a decade, CPI Financial has been gathering the industry’s leaders to honor the best of the best in the field. This November, we look forward to welcoming you to Dubai in order to do it all over again. As always, it will be the must attend event of the season.

Venue: Emirates Towers, Dubai www.cpifinancial.net

ROUNDTABLE ON DISCLOSURE REQUIREMENTS FOR ISLAMIC CAPITAL MARKET PRODUCTS

Organised by the Islamic Financial Services Board, the roundtable will provide a platform for discussion and feedback on the areas of concern, bringing expert opinions, complemented with discussant comments, culminating in an open discussion among ICM industry players, regulatory and supervisory authorities and industry experts in Islamic finance. The main topic of discussion will be Exposure Draft 19 (ED-19) Guiding Principles on Disclosure Requirements for Islamic Capital Market Products (Sukuk and Islamic Collective Investment Schemes).

Venue: Sasana Kijang, Bank Negara Malaysia www.ifsb.org

5-7 December 2016

2-3 February 2017

(Philip Lange/SHUTTERSTOCK)

WORLD ISLAMIC BANKING CONFERENCE

50

19TH INTERNATIONAL CONFERENCE ON ISLAMIC BANKING FINANCE AND COMMERCE

Now reaching its 23rd year, the World Islamic Banking Conference (WIBC) continues to be a key date on the yearly map for Islamic financial professionals worldwide, bringing together those from across the Islamic economy to discuss the most important issues of the day as well as making landmark agreements and announcements. It will be run in strategic partnership with the Central Bank of Bahrain.

The conference aims to bring together leading academic scientists, researchers and research scholars to exchange and share their experiences and research results on all aspects of Islamic banking, finance and commerce. It also provides a premier interdisciplinary platform for researchers, practitioners and educators to present and discuss the most recent innovations, trends, and concerns as well as practical challenges encountered and solutions adopted in those fields.

Venue: Gulf Hotel, Bahrain www.WIBC2016.com

Venue: Grand Hyatt, Melbourne, Australia www.waset.org/conference/2017/02/melbourne/ICIBFC

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CM

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