BEST BANK

BEST BANK

BEST BANK

A new book explores how the Florentine dynasty lent money and still went to heaven. Mark Johnson looks at the ways in which Italy's fifteenth-century bankers circumnavigated religious prohibitions to make their margins

According to the International Monetary Fund (IMF), domestic bond markets help to foster financial stability, reduce inflationary funding, improve financial intermediation and assist governments in managing the effects of volatility in the international economic and financial system. Khaled Fouad, senior vice-president, merchant banking at TNI, says: "In the absence of a debt market, any crisis in the banking industry will have a spillover effect and would likely require the government to step in and assume the burden in order to prevent the financial system from collapsing."

Negative returns

The expansion of the MENA region's equity and debt capital markets must go hand in hand with stronger corporate governance and financial regulation. Financial market reform requires better governance structures, necessitating legal reforms as well as improvements in policies and procedures required to foster private sector development and tackle inefficient, ineffective and discriminatory government practices.

The Asian bond markets have given investors an easy ride in the past two years. Now, with inflation and interest rate uncertainty, buyers need to be smarter.

Attention now turns to more complex Al Marai transaction

Ms Ooi Lay Leng is a senior portfolio manager at the Government of Singapore Investment Corporation (GIC), managing global fixed-income portfolios including global emerging market fixed-income and currency portfolios. She specializes in policy matters, participates in investment strategies and is responsible for fixed-income investment decisions pertaining to the Asean markets. Lay Leng has accumulated more than 10 years of experience in the fixed-income market. During her career with the fixed-income department, she had worked at GIC's London and New York offices, before returning to the GIC's head office in July 1998 Lim Heong Chye is managing director of DBS Asset Management (DBSAM). He joined DBS Asset Management in 2001 and since his joining, DBSAM's fixed-income funds have been ranked top quartile, and its flagship global fixed-income fund has received a five-star rating from Mercer Investment Consulting. He has been instrumental in enhancing DBSAM's fund management franchise and, in addition to his present responsibilities, is focused on building DBSAM's capabilities in Greater China. He also oversees the institutional marketing and client servicing functions at DBS Asset Management.

The creation of financial centres and the opening of banking markets in the Gulf to foreign players are broad themes across the region, which is riding a wave of liquidity. Bank consolidation should be the next consideration. John Hamilton reports.

Jakarta, Indonesia's chaotic capital, offers a fascinating view of the clash between capitalism and Islam, as Chris Leahy explains

Growing liquidity derived from high oil prices, less restrictive regulation, a drive to privatization and a reduction in investment abroad have driven the Saudi Arabian stock market to new heights

A proposed expansion of Saudi Arabia's rail system is set to be one of the biggest construction projects in the Middle East and should revolutionize freight distribution in the region.

Islamic finance has made striking advances in the past year in its prime market of Muslim individuals, sovereigns and institutions, and among non-Muslim issuers and consumers attracted to Shariah-compliant products.

Return to UBS tops private banking poll

Private banking FirstRand has finally offloaded subsidiary Ansbacher Group to the approval of all involved. The sale to Qatar National Bank (QNB) of the group, which provides financial services to high-net-worth clients internationally, was completed in November, opening a door to the lucrative and expanding high-net-worth market in Qatar.

The market for Shariah-compliant finance has grown rapidly in size and sophistication in the past few years, demanding expertise in regulation, product structuring, legal services and marketing. Nigel Dudley speaks to pioneers of the industry.

Shariah-compliant finance pioneers.

UK budget airline easyJet has appointed 43-year-old Jeff Carr as its new finance director as of January 2005, replacing Chris Walton.

The Islamic capital market proves its capacity to fund one of the biggest ever deals outside the oil and gas sector in the Middle East.

Publication: SABI - Business News

Islamic bonds, known as sukuks, have more than doubled their share of the Gulf bond market from 14% to 32%, according to international law firm Trowers & Hamlins (T&M). The State of Qatar's Global Sukuk issue, which closed in October 2003, was so popular that its size was increased from $500 million to $700 million, while the Dubai's Department of Civil Aviation recently announced the biggest ever sukuk issue, amounting to $750 million.

Banks in Arab countries enjoyed much better results in 2003, especially during the second half. In 2002 earnings fell on the back of weakness in global investment markets, tight margins, and higher provisions. Net profit bounced back in 2003, rising by over 15% for the top 100 Arab banks.

Iran's economic liberalization programme has shown impressive results. But the victory of conservative forces in the latest elections threatens further progress. Meanwhile the country's banks are incapable of funding its corporations, which are turning instead to the capital markets.

The Shariah-compliant debt market has grown rapidly, with interest from issuers and investors outside as well as inside the Muslim world. The next development is likely to be more corporate issues using Islamic structures.

Last year, at the IMF meetings in Dubai, the Iraqi delegation was led by Adil Abdul Mahdi. At the time, he was already a leader of the Supreme Council for the Islamic Revolution in Iraq, the leading Shiite party in the country.

Today, Mahdi is minister of finance in Iraq's interim government, charged with restructuring the country's debts before the end of the year. Here, he speaks to Euromoney in his first detailed comments on the subject since he took office.