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LATEST ARTICLES
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Digital sukuk issuance still faces the issue of uneven Shariah interpretation.
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Both Egypt and Turkey have recently been able to tap dollars more cheaply through sukuk.
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Islamic finance remains a federation of country-level success stories with no comparable global narrative. Does it matter if that’s where it stays?
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Islamic finance has a choice: continue on its existing path and consolidate its hard-earned gains in market share, or shake the whole thing up. One proposal calls for an end to the fractional-reserve banking system.
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The launch of an SRI-linked sukuk framework this summer is a blueprint for others to follow.
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Why do Saudi Arabia and Malaysia still overwhelm every other state in Islamic asset management?
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There has always been great overlap between Shariah-compliant finance and ESG principles. Malaysia is trying to harness the potential that arises from this confluence.
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Across every sector and region HSBC stands out for its commitment to developing partnerships and products that will bring finance at scale to create a more sustainable and resilient planet.
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Fraud, commodity prices and concerns over defaults have created a perfect storm for commodity trade finance – and the capacity of trading firms and finance funds to support the market remains unclear.
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Emirates NBD has excelled in all elements of its response to the Covid-19 pandemic, from steps taken to protect the health of its employees to loan deferrals for its customers; but what really stands out is the bank’s commitment to its community.
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HSBC has been central to maintaining imports of vital goods into the region, even while national borders slammed shut.
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Ahli United Bank, Bahrain’s largest bank by assets, reported a 5% increase in profits to $730.5 million and saw its cross-border business grow to 20% of its loan portfolio in 2019. Its takeover by Kuwait Finance House has been postponed until December due to the coronavirus outbreak, ruling it out of this year’s best bank award.
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The Middle East is a hard market in which to be truly sustainable, given the vast amount of money in the region that is tied to oil now and will be for some time.
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As the Middle East enters a new phase of development, one in which governments can no longer rely on endless petrodollars and in which economies built on global trade and travel will have to adapt to survive, it will need banks with outstanding M&A and advisory capabilities. Citi is such a bank.
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Under the stewardship of chief executive Jean-Christophe Durand, formerly head of BNP Paribas’s Middle East and Africa operations, National Bank of Bahrain (NBB) embarked on a radical transformation programme in 2017 that delivered impressive results during the awards period.
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Banking is evolving in Saudi Arabia – the Gulf’s largest economy – with government and regulatory initiatives boosting growth in the sector.
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Profit pressure is a threat to every bank, says Qatar Islamic Bank’s group CEO Bassel Gamal, discussing how Qatar’s robust and well-capitalized banking sector is navigating the twin shocks of lower oil prices and coronavirus.
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A draft law in the United Arab Emirates will see more family-run corporates listing, while pension reforms will create a huge pool of investable assets.
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Expect the unexpected with the former PM at a Vegas bunfight.
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Voted for by more than 7000 treasury professionals, find out which banks rank top in the Euromoney Trade Finance Survey 2020.
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Africa APAC CEE Latin America Middle East North America Western Europe
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Leading bankers in sustainable finance fear that, despite the advances and the rhetoric, the industry is not moving quickly enough. Euromoney asked 20 regional and global heads of sustainable finance for their views: what the experts think might surprise you.
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Euromoney has spoken to 20 sustainable finance experts about what is needed to bring about real progress. The last of our six recommendations is for efforts to be made to incentivize green finance.
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Euromoney has drawn up six recommendations for the sustainable finance sector, based on the views of 20 experts in the field. The fourth of our six proposals is to develop transition finance.
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$140 million green bond funding used to build… a petrochemical refinery.
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To reduce greenhouse gas emissions, clean up water supplies, prevent the loss of biodiversity, mitigate fire and flood risk and meet the nutritional requirements of a growing population the world must improve its regenerative and sustainable agricultural practices – new tools and support from the financial services industry are needed to fund that transition.
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Countries fall off the global financial grid for a host of reasons: political obtuseness, lack of sovereign recognition, the departure of correspondent banking relationships, even Ebola. But we make a mistake if we think of these places as distant and uninteresting curios
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Singapore has everything a market hub needs, but has not built on its regulatory environment.
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Blockchain has the potential to revolutionize trade finance, but a lack of standardization will hinder its adoption.
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Euromoney and its sister publication GlobalCapital are conducting a worldwide survey on the fast-growing area of sustainable financing and investing. Both issuers and investors are invited to take part.
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The vexed battle to finance small and medium-sized enterprises (SMEs) continues amid risk aversion, economic weakness, new regulations and banks’ balance-sheet repair. Here is a round-up of Euromoney's recent coverage.
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For nearly two decades Dubai has acted as the beating heart of Middle Eastern finance, but now its long-dormant rivals are mounting successful efforts to reclaim a piece of the action.
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Islamic finance has come a long way over the past few decades, maturing into a $2.4 trillion industry, but some long-term problems remain and the recent wrangle over a Dana Gas sukuk shows credibility is still an issue.
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Digital innovation has the potential to transform international trade, yet many argue that banks are lagging in replacing antiquated systems for trade with smart solutions. What is behind the delays?
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Veteran investor launches financial services firm to capitalize on reforms in Uzbekistan, while HSBC banker tapped to drive sovereign Eurobond debut.
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Islamic finance has become too focused on getting arcane structures to be technically Shariah compliant, but a new initiative in Malaysia attempts to make Islamic finance socially positive once more – and to measure its success.
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These are the areas that the United Nations says banks need to consider when accepting their responsibilities in shaping and financing a sustainable future.
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Over 20 years after microfinance first arrived in Kyrgyzstan, the largest players are transforming into banks to lower funding costs and increase financial inclusion. Can they convince the country’s farmers to put their cash into banks instead of cows?
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Welcome to Euromoney Trade Finance Survey 2019
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Euromoney's latest coverage of the bond markets in Africa.
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New policies, new hope – the Malaysian election has lots of positives, but not for anyone who is seen as having been a Najib acolyte. For them, the axe is already falling.
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The Middle East’s financial centres are keen to collaborate on fintech, in an effort to catch up with US, UK and Asian markets. But with rich pickings on offer, there is also stiff competition to establish fintech dominance.
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The country’s Employees Provident Fund puts considerable effort into Shariah compliance from an ESG framework. Could chief executive Shahril Ridza Ridzuan have hit upon a template for other Islamic funds?
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The impediments to providing more trade finance to emerging-market clients are well known, but that does not make them any easier to overcome. Could the ultimate solution be in turning trade finance into an attractive asset class for institutional investors?
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Banks in Qatar have been hit hard by its powerful neighbours’ unexpected blockade, but finance, just like other sectors of the Qatari economy, is finding ways to cope with this sudden realignment of regional alliances.
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Dana Gas, an Emirati gas company, is using Shariah non-compliance as an argument in its sukuk restructuring talks. That remarkable move, if successful, could undermine the whole system of trust built around Islamic finance in the Middle East.
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The 2017 Euromoney Trade Finance Survey includes quantitative and qualitative client assessments of their trade finance providers. This year for the first time, Euromoney has produced the Trade Finance Stars, based on the qualitative responses of clients, a ranking that recognizes providers with exceptional qualitative ratings in particular regions and in five areas of client service (full methodology here).
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The dearth of equity financing in the region plays into the hands of firms with strong debt franchises. The local banks are not leaving this business to the internationals and there is one local in particular whose efforts to develop its debt financing capacity should be recognized, not least for tapping into the local investor base.
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Events such as the rise and fall in the oil price and the steep devaluation of the Egyptian pound, made 2016 another eventful year for markets businesses in the Middle East.
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This year for the first time, Euromoney has produced the Trade Finance Stars, which recognizes providers with exceptional qualitative ratings in particular regions and areas of client service.
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Shariah savings scheme could be a game-changer; wealth push follows success in sukuk market.
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Best regional trade finance provider:
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The world seems to be turning away from globalization and towards protectionism. Yet despite this challenging environment for trade, the bankers who finance it remain surprisingly upbeat.
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The survey is designed to provide our readers with valuable information about the trade finance market. It asks participants to rank trade-finance providers across a selection of service categories and an overall, global category.
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International banks recently put up an unsecured loan for a Russian borrower with a parent on the US sanctions list. Has the loan market for unsanctioned investment-grade Russian borrowers just got broader, deeper and potentially cheaper?
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Dominance of global volumes continues; why aren’t others catching up?
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Digital initiatives boost Hong Leong Islamic Bank; Islamic finance fertile ground for fintech.
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Results index HSBC’s power in debt financing, allied with the strength of its balance sheet, is well known, but Stephen Williams’ capital financing team was no one-trick pony during our review period. It handled equity or equity-linked deals in Korea, Singapore, Taiwan and India as well as many of the deals that mattered most in Greater China. Among them were the $2.115 billion IPO of China Reinsurance and $2.54 billion IPO of China Huarong Asset Management which collectively re-opened regional equity fundraising markets in October. VRL Logistics in India was one of the most successful IPOs from the country for years.
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$100 million Islamic structured club facility
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M$100 million ($18.2 million) sustainable and responsible investment sukuk (Ihsan)
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£132 million ($187 million) secured Islamic facility
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UK Export Finance $913 million sukuk (Khadrawy)
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OR250 million ($650 million) sukuk
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The Shariah-complaint finance sector has been growing strongly, but only in a few jurisdictions and with limited product diversity. As oil-derived liquidity flows dry up in its core markets in the Gulf, what can it do to fix its lack of international reach?
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Euromoney highlights six of the strongest key innovations in Islamic finance from the last 12 months.
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Submission deadline Thursday 10th March 2016
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Trade Finance Survey 2016 full results Global 2016 2015 1 1 Deutsche Bank 2 2 UniCredit 3 3 Citi 4 4 HSBC 5 5 Commerzbank 6 14 Société Générale 7 12 RBS 8 6 Standard Chartered 9 20 ING 10 10 Santander
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Trade Finance Survey 2016 full results.
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Trade Finance Survey 2016 full results The survey is designed to give our readers valuable information with regard to the trade finance market and give them the opportunity to rank trade finance providers across a selection of service categories and an overall, global ranking of providers as rated by their clients.
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Islamic banks in the GCC may have two advantages over their conventional counterparts at a time of weak liquidity: loyal retail money and the ability to tap two investor markets
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Commercial Bank of Dubai pays up; Gulf Investment Corporation cancels deal.
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The drop in the oil price has combined with a general lack of liquidity to put issuers from Gulf states in an unfamiliar position. There may be no need to fear a crunch, but the region’s issuers must get used to the fact that they will have to pay up to raise capital.
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Interest rate of 26% for 165-day notes; international return inked in for 2016.
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Growing use of Islamic finance places greater importance on the ability of corporates to access hedging solutions that are complaint with Shariah principles.
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Asia’s rapidly changing corporate sector is becoming increasingly advanced in how it runs its treasury operations.
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Asia is home to an expanding corporate base that is becoming ever more sophisticated in how it runs its treasury function.
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The CEO of OCBC wants to show the Asian market that the bank is a force to be reckoned with outside Singapore, across all areas of financial services. A big acquisition in Hong Kong has made the market sit up and take notice.
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Best bank in Africa Standard Bank Best investment bank in Africa Citi Best equity house in Africa Citi Best debt house in Africa Barclays Best M&A house in Africa Rand Merchant Bank Best risk adviser in Africa Standard Bank Best flow house in Africa Access Bank Best transaction services house in Africa Standard Chartered Country Awards for Excellence 2015: Africa Awards for Excellence 2015: Results index
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Africa’s rich resources, natural and human, are luring capital, but investors will need to move fast.
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It is not without its challenges, but the economy is improving – steadily if unspectacularly.
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Best bank in the Middle East QNB Best investment bank in the Middle East HSBC Best debt house in the Middle East HSBC Best equity house in the Middle East HSBC Best transaction services house in the Middle East HSBC Best M&A house in the Middle East Citi Best flow house in the Middle East Standard Chartered Best risk adviser in the Middle East Standard Chartered Country Awards for Excellence 2015: Middle East Awards for Excellence Middle East press release Photos from the 2015 Middle East awards ceremony
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With expanding economies and hundreds of million Muslims, Africa deserves to be a bigger part of Islamic finance. After a slow start, there are signs the sector is beginning to gain the crucial mass and legislative backing it needs.
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As liquidity improves and conventional buyers become more familiar with it, the premium for issuing in an Islamic format is shrinking. Emerging market issuers may still hold the most promise for the future
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The growth and globalization of Islamic finance over the past decade has been a rare success story for the financial industry. Here, Euromoney examines the challenges the sector faces to rise to the next level. Throughout the section, we highlight the banks, advisers, issuers and companies that are moving the industry forward, in Euromoney’s inaugural Innovation in Islamic finance awards.
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International banks used to dominate Islamic finance. But their desire to innovate risked the market straying from its principles. Local and specialist firms have benefited from their withdrawal. But can they take Shariah-compliant finance to the next level without repeating the mistakes of the past?
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As Islamic banking ponders its next stage of development, it would be wise to consider the appeal of ethical investing.
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With expanding economies and hundreds of million Muslims, Africa deserves to be a bigger part of Islamic finance. After a slow start, there are signs the sector is beginning to gain the crucial mass and legislative backing it needs.
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Iraq is asking UK investors to help finance its war against Islamic State. Are pension funds equipped to mix politics with prudence?
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A host of new technology and new business models are aiming to transform the financial system. Many will fall by the wayside. But among them are potential winners that could be the Goldman Sachs or Nasdaq of the 21st century. Euromoney looks at the smart people and smart firms attempting to reshape finance.
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London is strutting its stuff as a world centre for fintech innovation to rival Silicon Valley and New York. The first-stage disruptors, challengers and innovators are now established and growing. Government and regulators want to build a better financial system and see technology as the key.
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Malaysia’s quest to create a regional champion with a large Islamic bank came to an end when a plan for a three-way merger was scrapped. The country’s second-largest lender by assets is now retrenching to boost returns and eyeing strategic acquisitions.
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Malaysia’s banking community prepares for the next chapter after an attempt to merge three banks ends in failure to complete the deal.
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Trade Finance survey 2015 full results
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Trade Finance Survey 2015 full results Best Regional Trade Finance Provider
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Trade Finance Survey 2015 full results
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Turkey’s president has tried to kick of one of the country’s largest banks into touch, through public attacks and behind-the-scenes pressure. Despite becoming a political football, Bank Asya is still in the game. Can Turkey’s reputation in the west as a place to do business survive Erdogan’s continued, politically-motivated vendetta?
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The overwhelming retail demand for the Saudi bank’s $6 billion listing raises questions about how the country’s equity market will respond to its opening up to foreign investors.
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Bahrain stuck in trading trough; Gulf markets are polarizing.
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The chief executive of the leading Turkish Islamic bank claims it is the victim of a politically driven campaign by the country’s president, in an exclusive interview with Euromoney.
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Malaysia gears up for consolidation in its financial sector as the three-way deal moves ahead.
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US-led airstrikes in Iraq have heightened security concerns among international banks and companies operating in the country, but despite the growing crisis, banking business is still being won on the ground.
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India needs a litany of reforms to unshackle its stalled capitalist project. Modi’s government should take inspiration from the paradox of Singapore’s activist state and strong private sector.
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South Africa issued its long-awaited debut sukuk on Wednesday in a bid to diversify away from conventional means of fundraising and attract investors in growth markets in the Middle East and Asia.
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In our September edition, Euromoney explores the challenges and opportunities for some of the world’s leading financial institutions in the Middle East, including a special investigation into Iran’s tentative economic and political rehabilitation in the eyes of international markets, Lebanon’s economy, UAE-India ties and Saudi Arabia’s equity-market revolution.
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Iran and the west don’t have to be friends, but there will be big benefits from a rapprochement.
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The Emirates’ economy has recovered much of the ground it lost in 2008. The country’s banks are taking advantage by growing strongly. Is there a danger of another round of overheating?
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After the Iranian Revolution overthrew the Shah in 1979 and the Grand Ayatollah Ruhollah Khomeini launched the Islamic Republic that exists today, there were a lot of assets the Shah and his followers had left behind as they fled Iran.
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In our September edition, Euromoney explores the challenges and opportunities for some of the world’s leading financial institutions in emerging markets, including BBVA’s bid to become the world’s first digital bank, Gulf banking, M&A in Malaysia and reforms to the Indian financial system.
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The debut issue of a five-year $1 billion sukuk this week is a statement of intent from Hong Kong that it is serious about Islamic finance, sending a strong signal to rival financial centres.
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A three-way banking merger is the biggest yet in Malaysia, part of a regional trend to boost domestic firms to compete locally and abroad. It would also give the country a big contender in Islamic finance
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The region’s markets are growing rapidly, and might even hit new highs this year. Meanwhile, a patchy record in growth and some important issuer absences do not seem to trouble international investors.
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The country is forging ahead in its aim of becoming a regional Islamic finance hub, issuing its debut sukuk in July. However, questions remain as to exactly how dedicated it is to reaching this goal.
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Senegal should focus on diversifying funding channels rather than marketing itself as an Islamic finance hub, which could limit investor interest.
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CIMB power grab looks set to shake up the region’s banking landscape.
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Statement of intent rather than a need for funds; DMO defends choice of leads.
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RBS has had to cease using BankTrade software after the US federal court upheld the bank was breaching copyright.
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Iraq’s economic potential may be enticing regional and western banks to develop operations there but the rise of the jihadist group is cause for alarm.
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This is no longer a straightforward award to give. There are at least five homegrown houses that can make a good case to be the best in the region.
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The Bahrain award is one of the easier ones in the region to decide upon; Ahli United is the leader on almost any metric. Its $579.4 million net profit for the 2013 financial year ($366.5 million after allowing for a one-off exceptional gain) was a record and a 25.7% improvement on the previous year, as well as being the biggest profit in the country’s banking industry. Total assets grew 9.3% to $32.65 billion; loans, 8.3%; customer deposits, 17.4%. NPLs are a healthy 2.4% and total provisions for those NPLs 149.4%, while the bank’s capital adequacy ratio now stands at 16.2%. Most of these metrics lead the industry.
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During a discussion on capital market development at the annual meeting of the African Development Bank in Rwanda, panellists argued sovereign sukuk issuance will finally take off this year in a bid to diversify sources of long-term dollar financing away from the Eurobond market.
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Issuance in ‘next financial year’; deal likely to be one-off.
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On top of the Aldar-Sorouh merger, the financing of the second phase of Emirates Aluminium (Emal) added to Abu Dhabi and the UAE’s resurgent confidence in 2013.
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Islamic finance roundtable: The new contest to be the capital of Islamic finance
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After the World Islamic Economic Forum was held in a Muslim minority country – the UK – for the first time. Euromoney quizzed the envoys of rival centres on their ambitions.
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Best Islamic local-currency deal of the year:
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Islamic finance deal of the year:
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Most innovative Islamic deal:
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Best Islamic project finance deal:
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2014 Results will be published 3 February.
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Lack of SME demand for funding might have been exaggerated. But many of those that seek funds might be risky prospects.
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Transaction banking: Transaction revenues stable but under pressure
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Inaugural sukuk issued; key constituent quietly leaves.
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Petrobras’s business plan to develop the pre-salt oil fields anticipates that the number of rigs and drillships with drilling capacity greater than 2,000 metres will increase to 65 by 2020 from 15 in 2010. Many of these deliveries will be financed by Petrobras suppliers through the capital markets. Since 2010, Moody’s has publicly rated around $5.4 billion in project bonds associated with the operational phase of offshore drilling and production equipment to be deployed off the coast of Brazil for Petrobras. These secured bonds use special purpose vehicles, but the main ratings component is Petrobras’s long-term operating contract for the rigs or drillships. These off-balance-sheet structures enable Petrobras to use its investment-grade rating to support these deliveries without an impact on its credit rating.
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Bankers discuss the progress made so far and the potential for Turkey to become a vibrant financial services hub.
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With resurging local interest and new catalysts for foreign investment, prospects are finally looking up for Gulf stock exchanges. Challenges remain, but new companies are already beginning to explore listings.
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As London positions itself as a hub for Islamic finance on the occasion of the ninth World Economic Islamic Forum, Badlisyah Abdul Ghani, CIMB Islamic CEO, predicts UK corporates are already primed to enter the sukuk market.
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Refutes return to bubble-era practices; Repays Tamweel liabilities
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One of the City of London’s highest-paid investment bankers has resurfaced at a small financial services firm after leaving taxpayer-owned Royal Bank of Scotland last year.
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State Islamizes banking sector; Potential impact on global sukuk market
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Trade finance is renowned for its quaint reliance on paper documentation and relative lack of technological sophistication, but despite the pressure on IT budgets, the business is modernizing, albeit slowly.
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Euromoney’s recent coverage of trends in the region, including an exclusive interview with Ngozi Okonjo-Iweala, the finance minister of Nigeria, the rise of agribusinesses - Africa’s new consumer boom – and an in-depth study into second-tier sovereign wealth funds in the Gulf. We also explore Saudi banking, the rise of bank M&A and transaction banking in the Gulf and interview Riad Salamé, the longstanding governor of Banque du Liban, the Lebanese monetary authority.
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Well run and well capitalized, with a flourishing Islamic sector, their only possible weak point is the high level of household debt.
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Local lenders burgeoning; regulators accommodative.
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Two years on from the start of the revolution, regulatory and infrastructure problems remain a headache for Libya’s banking sector. The revolutionary hangover means the nation’s economic potential might not be realized for a long time to come.
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Middle East businesses are borrowing more as the long-term nature of the burgeoning bond markets brings a greater sense of comfort. They must reveal all in the public documents needed to access those markets, initially an uncomfortable experience for many. But the better financing mix is worth it.
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One of the most important political and economic breakthroughs for the Philippines came in October last year when president Benigno Aquino finally agreed to a framework for peace with the Moro Islamic Liberation Front, the Muslim rebel group in Mindanao. It is hoped this will lead both groups to a final peace pact this year and allow for more inclusive economic development throughout the country, bringing thousands more people out of poverty. According to Standard Chartered, peace and political stability in Mindanao could add 0.1% to GDP growth at the end of 2013 and 0.3% by 2018. For the Philippines, the stars are finally aligned.
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A decade after Malaysia sold the first global sovereign sukuk, the market is growing from strength to strength, as are the traditional Islamic finance leaders.
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Mohamed Ali Elgari is one of the select handful of Shariah scholars without whom the Islamic finance industry could not exist. Shariah panels stamp products as being compliant with Islamic law; they carry the trust of Muslims that they are investing in a way consistent with their faith. Such is the diversity of their required skills – encyclopaedic knowledge of Islamic law, deep understanding of international business, fluency in English and Arabic at the very least – that there are few such scholars trusted by the world’s main Islamic institutions to serve on their Shariah boards. Ten years ago, there were only about five of them in the world; the picture has improved since, but not that much. Elgari is very much among that elite.
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With little happening in regional equity issuance, the most important deals in 2012 in the Middle East, even more than other emerging regions, were in debt – and, in particular, sukuk. This was the year when Islamic capital market issuance really found its voice, from Qatar’s international record $4 billion sukuk to a Turkish sovereign debut, Axiata’s dim sum sukuk and important domestic deals in Saudi Arabia and Malaysia. There was a record $144 billion of issuance in 2012, according to Ifis, part of the Euromoney group.
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In the Middle East rising sukuk issuance gave a new angle to the global emerging market debt boom. Sovereigns and supranationals launched daring benchmark deals, while in sub-Saharan Africa an outrageous last-gasp hijacking of a deal redefined the way China approaches M&A.
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Global capital markets underwent a remarkable recovery last year as bond and equity markets soared, creating a fertile dealmaking environment that few had foreseen at the start of the year. By the end, an impressive volume and variety of capital raisings had hit the markets, highlighting a voracious appetite for risk and complexity that bankers were only too happy to satisfy. Even in M&A.
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In an interview in his office in Riyadh, Suliman Azzabin, chief executive of Al Rajhi Bank, pours scorn on allegations that link his bank to terrorist financing repeated in the US Senate report on HSBC last year. So what is Al Rajhi Bank in 2013 really, and how is it still making so much money?
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State desperate for new funding sources; controversy at heart of political divide
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Regulators have regained their reformist muscle in the shape of Mark Carney, Bank of Canada governor and chairman of the Financial Stability Board. In a wide-ranging interview, Carney talks about recent banking scandals, the Volcker Rule, and why fears about Basle III are wide of the mark.
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After setbacks in May, EFG Hermes and QInvest will merge by the end of November, but despite economic and political turmoil, the joint venture is gunning for growth.
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The country has the potential to cement its position as the world’s leading centre for Islamic finance, but a lack of standardization is causing problems, particularly for international expansion.
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As South East Asia’s largest economy with the world’s largest Muslim population, Indonesia should be well placed to have a burgeoning Islamic finance sector. But instead, Indonesia lags way behind Malaysia on this front. Add to this Indonesia’s lack of infrastructure, and the economy is hardly running at full capacity.
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HSBC’s advertising slogan for many years was the "world’s local bank", now media headline writers are dubbing the bank: "The world’s local money launderer". Always considered conservative, well run and frankly a bit stodgy, HSBC has stumbled badly. And we are all like stunned moles blinking in the sunlight, following a 340-page report from a US Senate subcommittee accused HSBC of laundering cash for terrorists, drug barons and dictators through many of its subsidiaries.
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$2.6 billion Islamic loan maturity; Paves way for takeover battle
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Investors and financial institutions are demanding more innovative and tailored structured products. SG CIB is the stand-out provider.
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The bank has made good use of its global presence, bringing new pools of liquidity to emerging market borrowers.
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QInvest to inject $250 million; Eyes expansion in Africa, Asia
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A visit to a municipal wedding hall in Istanbul nowadays would be enough to show how far Turkish banks are willing to go to get hold of the gold kept under the pillow and outside the financial system.
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Qatar Petroleum’s finance unit, which plays a key role in overseeing debt raised by the Qatari state, says it is not concerned about overleveraging. But as Qatar embarks on investment in infrastructure and industry, its work is more important than ever.
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Eurozone crisis hits traditional fund flows; Trade links boost market potential
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A round-up of the key stories across the specialist financial media, including news that the US will file a complaint at the WTO on Tuesday over Chinese limits on exports of rare earths used in high-tech products
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All economic indicators suggest the country is a global growth market. Except one: its capital markets are small and underdeveloped. Bankers bemoan a lack of investors; investors say there are not enough products. A new stock exchange head aims to break the impasse. Could SMEs bring the market out of its shell?
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Nomura is expanding its global rates and foreign exchange trading business in the Middle East, with three senior hires in its Dubai International Financial Centre branch, the bank said in a statement on Monday.
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An Islamic bond could be the first corporate-level issuance in the capital markets by a leading Middle Eastern national oil company
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A small number of elite Shariah scholars ought to help bring consistency and standardization to Islamic finance around the world, but that’s a red herring
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Ibrahim Turhan, newly appointed CEO of Istanbul Borsasi, talks exclusively to Euromoney about his plans to expand Shariah-compliant products
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In the eight years since its inception Takaful Ikhlas has shown some truly impressive results. It boasts more than 400,000 policyholders and has more than 52 separate products in general takaful. Takaful Ikhlas can demonstrate an average growth rate for the past four years of 36.75%.
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Malaysia has the world’s most sophisticated market for Islamic finance. Some people might quibble with that judgement: the banks are bigger in the Gulf, and the asset management volumes are bigger in Saudi Arabia. But in terms of a tried, tested, supportive, well-thought-out infrastructure within which an Islamic finance industry can flourish, Malaysia leads the field.
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HSBC Middle East this year issued the first sukuk to employ a dual structure consisting of both wakala and mudaraba elements. This innovative structure has already been emulated by other institutions, including First Gulf Bank and Abu Dhabi Commercial Bank.
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Riyadh-based Islamic investment house Jadwa has rapidly grown to become one of the biggest and most respected asset managers in the Islamic finance industry. Its total assets under management as at November 2011 totalled about SR6 billion ($1.6 billion).
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In September a consortium led by Saudi-based Acwa Power entered into an agreement to proceed with the construction of what is set to be the world’s largest independent power generation project: Qurayyah Independent Power Project. The project will be located on the eastern coast of Saudi Arabia, adjacent to facilities owned by Saudi Electricity Company, and will operate on a build, own and operate basis. The electricity generated will be delivered to Saudi Electricity Company under a 20-year power purchase agreement starting in June 2014. The project reflects growing demand for energy in the Middle East, where consumption grew from 0.7% of world totals in 1973 to 4.7% in 2009.
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Over the year, KPMG provided assurance and advisory services to more than 65 Islamic financial institutions in the UK and Europe, the GCC, Asia-Pacific, South Asia, North America and Africa. The firm promoted Islamic finance in new markets as diverse as Russia, Africa, the Maldives and Sri Lanka.
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Citi’s Islamic finance business has greatly enhanced its rankings in the recent past. Between December 2010 and November 2011 it acted as bookrunner for deals totalling $1.8 billion, with a 7.6% share of the market. Compare this with the same period for 2008-09; then Citi acted as bookrunner for $599 million-worth of bonds.
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One of Clifford Chance’s standout deals this year was its advisory role in HSBC Middle East’s issuance of a $500 million sukuk. The sukuk incorporates an innovative dual structure, using both mudaraba and wakala elements.
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In its last annual report, ADCB reported strong growth in its Islamic products. Islamic product-related deposits more than doubled between year-end 2009 and year-end 2010, going from Dh7.27 billion to Dh14.98 billion ($4.07 billion). The Islamic retail loans and credit cards business grew by more than 100%. Corporate growth was slower but still strong at slightly over 20%.
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When it came to market in late November last year, the Republic of Indonesia’s second globally marketed US dollar sukuk broke barriers in its maturity and yield.
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CIMB Islamic goes from strength to strength, and today boasts over M$40 billion ($12 billion) in assets, offering a plethora of services in wholesale and consumer banking. On the retail side, for example, the bank has extensive network coverage throughout Asia, with 1,109 branches in 14 countries.
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Al Rajhi Bank’s success in Islamic banking in the Middle East has still not been eclipsed. Other banks were perhaps more aggressive before the crisis. However, since 2008 Al Rajhi’s more conservative, retail-oriented approach, resting on a 500-strong branch network, has meant that it has continued to thrive while competitors fell by the wayside.
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Standard Chartered was involved in a large proportion of the most important and most innovative sukuk deals of the year. These include the Republic of Indonesia sukuk – this year’s sukuk deal of year.
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The volume and innovative nature of deals that involved HSBC over the past 12 months make it the choice for the Islamic project finance award.
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Société Générale has built a strong franchise in structured products in conventional finance, winning the Euromoney award for best global structured products house in 2011, for example.
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HSBC Amanah continues to be the dominant global Islamic finance institution, providing wholesale, commercial and retail Islamic banking across Asia, the Middle East and Europe.
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In June, after nearly two years of work, Indonesia-based telecom company PT Natrindo Telepon Seluler (Axis, now known as PT Axis Telekom Indonesia) completed a financing that is notable for the amount raised, its innovative nature and its complexity.
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Establishing a corporation in 2010 to create and issue short-term Shariah-compliant financial instruments to improve cross-border Islamic liquidity management was a great idea. And it still is – despite the group not conducting a single issue or releasing any press statements.
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Issuance is booming but barriers will continue to hold back the market’s potential.
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Euromoney subscribers can compare wealth management advisors and wealth management services globally, by firm, by region, by country, and view best local results.
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The favourable tax haven is actively seeking to become the first Western centre to provide a Shariah-compliant platform by reviewing its existing legislation
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Saudi base gives Islamic specialist a platform for regional expansion.
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One area in which both Malaysia and CIMB have excelled in taking an early lead is Islamic finance. Malaysia has the most sophisticated industry, and enabling framework, for Islamic finance anywhere in the world; within it, CIMB is probably the name most closely associated with innovation.
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Best Trade Finance Providers
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Best Trade Finance Providers
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Listed on Tadawul; State wants more issuance
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The fortunes of Tunisia and Egypt are diverging rapidly since the Arab Spring. Tunisia offers encouraging signs but it is less influential.
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Dubai Bank ‘in dire need of capital’; Amlak next for takeover
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Potential in other media; Pooled films reduce risk
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Turkey’s participation banks – the local term for Islamic banks – are not immune to the funding pressures facing bigger institutions in the country, although they are having considerably greater success than their conventional cousins. There are four such banks, three of which have strong Gulf parents, from which most funding has traditionally been raised. Turkiye Finans has 64% of its shares held by National Commercial Bank of Saudi Arabia. Al Baraka Bank is owned by the Bahraini group of the same name. And Kuveyt Turk is majority owned by the Kuwait Finance House. Only Bank Asya is locally owned.
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Asset owners and managers are signing up to a series of principles on how they invest in agricultural land. Will this mollify critics of the land grab? Nick Lord reports.
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Feeding the world is the most pressing issue facing society. Billions of dollars of new investment is needed to forestall future crises in both supply and price. Markets and financial institutions can play a crucial role in meeting the challenge. But how can they do so without being seen to exploit the most crucial resource of all? Sudip Roy reports.
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Complex financing comprises three facilities; Biggest Islamic deal for private-sector borrower
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Part one: Middle Eastern private banking debate: The region reconsiders its wealth needs post-crisis
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Five years after Saudi banks saw their investment banking and asset management arms split from their commercial banks, the sector is still finding its feet. Three of the firms that got a head start tell Chris Wright how the battle for market share is likely to play out.
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Fewer prestige buyouts by state funds; International investors wary of political risk
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Samir Radwan was a surprise choice as Egypt’s new finance minister – even to himself. Appointed at the height of the chaos, the retired economist is working hard to sustain Egypt’s finances and economy through a period of extraordinary upheaval. Eric Ellis joins him in Cairo
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Just as it comes to terms with the fallout of the global economic crisis, the Islamic sector must prepare for political instability. Dominic Dudley reports.
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International firms evacuate staff; Further woe for local investment banks
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Banks tap emerging markets growth The rapid expansion of trade within emerging markets is a big opportunity. But Basle III requirements represent a huge risk to trade finance.
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Only a handful of firms stand out in the takaful industry: SAAB Takaful, Takaful Ikhlas and the winner of this year’s award, FWU.
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No bank comes close to disturbing Malaysia’s CIMB Islamic’s hold of the best Islamic bank in Asia award, certainly no local one. CIMB Islamic is the world’s fastest-growing Islamic financial institution based on total assets. The firm’s asset growth rate over the past four years has been so rapid that the growth rate of its nearest rival, Noor Islamic, is half as much.
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Turkey has the biggest economy of any majority Muslim country and its banking sector is well developed. But Islamic banks account for only a small minority of banking assets.
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Standard Chartered launched its Islamic arm, Saadiq, in 2007 and just under two years later it launched Standard Chartered Saadiq Berhad, Saadiq’s Malaysian unit. Since then Standard Chartered has continued to invest in its Islamic franchise in Asia and the results have been especially clear in 2010.