GERMANY - Is Islamic Finance Collapsing in Germany?

www.stresemann-stiftung.de - Intrinsische Hindernisse des islamischen Finanzwesens – Scharia-Gelehrte und die Einkommensschwäche der Muslime

Von Rebecca Schönenbach, zertifizierte Islamic Finance Spezialistin – Stand: Juli 2012

Islamic Finance ist in Deutschland bisher weitgehend erfolglos geblieben. Der Vergleich mit anderen europäischen Staaten legt nahe, dass dies nicht an besonderen rechtlichen Rahmenbedingungen hierzulande liegt. Stattdessen scheinen intrinsische Hindernisse ausschlaggebend: Zum einen sind muslimische Migranten durch geringere formale Bildung und der oft fehlenden Erwerbstätigkeit der Frauen einkommensschwach und weisen wenig Anlagepotenzial für Finanzprodukte auf. Zum anderen führt das System der Scharia-Gelehrten durch mangelndes Wirtschaftswissen und widersprüchliche Rechtsgutachten verschiedener Autoritäten selbst zu Problemen. In Germany, Islamic finance has so far been largely unsuccessful. The comparison with other European countries, however, suggests that this is not due to the specific legal framework of the country. Instead, intrinsic barriers seem crucial: First, Muslim immigrants have lower than average incomes, because of lacking formal education and low labour participation rates of Muslim women . Thus, their investment potential for financial products is rather marginal and focused on real estate in Turkey. Second, the system of Shariah scholars causes some trouble due to insufficient economic knowledge and conflicting legal opinions.

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GERMANY - EVENTS - BaFin - Federal Financial Supervisory Authority : Islamic Finance: Not such an alien world at all

www.4-traders.com - Some fundamental principles - governing such things as rigorous risk management or good corporate governance - held good for both the Islamic financial system and its western counterpart, the BaFin President continued. They helped to ensure a safe and properly functioning international financial system.(source)

UK - Islamic fund house opens in UK offering suite of Shariah products

www.international-adviser.com - A new fund house has launched in London offering Shariah compliant funds in a Ucits structure to UK investors. Oasis Crescent, which has its new office in the Knightsbridge area of London, has been managing Islamic and conventional funds for more than 15 years, with £2.5bn (€3bn, $4bn) of assets under management, and operating within Europe for more than ten.
The company said the Islamic investment market in the UK is currently “under £1bn” but has the “potential to be between £120bn and £160bn".  (source)

UK - QIIB bid on IBB - Islamic Bank Britain - Form 8 (OPD) QIIB

FORM 8 (OPD)

PUBLIC OPENING POSITION DISCLOSURE BY A PARTY TO AN OFFER

Rules 8.1 and 8.2 of the Takeover Code (the "Code")

1.

KEY INFORMATION

(a) Identity of the party to the offer making the disclosure:	Qatar International Islamic Bank Q.S.C.
(b) Owner or controller of interests and short positions disclosed, if different from 1(a): The naming of nominee or vehicle companies is insufficient	As above
(c) Name of offeror/offeree in relation to whose relevant securities this form relates: Use a separate form for each party to the offer	Islamic Bank (LSE: IBB.L - news) of Britain plc ("IBB")
(d) Is the party to the offer making the disclosure the offeror or the offeree?	OFFEROR
(e) Date position held:	19 June 2012
(f) Has the party previously disclosed, or is it today disclosing, under the Code in respect of any other party to this offer?	NO

2.

POSITIONS OF THE PARTY TO THE OFFER MAKING THE DISCLOSURE

(a) Interests and short positions in the relevant securities of the offeror or offeree to which the disclosure relates

Class of relevant security:	1p ordinary
	Interests		Short positions
	Number	%	Number	%
(1) Relevant securities owned and/or controlled:	3,135,408,647	88.41	None
(2) Derivatives (other than options):	None		None
(3) Options and agreements to purchase/sell:	None		None
TOTAL (Other OTC: TTFNF.PK - news) : (source)

UK - EVENTS - TheCityUK Islamic finance - Managing Financial Stability : 25 to 26 June 2012

Date & time : 25/06/2012 08:30 - 14:00

Cost of event : Members Price - £550 / Non-Members Price - £550

Synopsis : Senior Islamic Finance experts are set to gather in London on the 25th - 26th of June 2012 at the inaugural Islamic finance - Managing Financial stability Challenges in a Dynamic Environment (MFSC Summit).

Location :Radisson SAS Hotel, Portman Square, London, W1H 7BG

Description : In light of the prevailing global economic conditions, the value of such a focused gathering in providing the platform for facilitating focused industry discourse that should help to nurture the environment for generating business in these difficult times has become all the more necessary. This gathering will address the challenges faced by the Islamic Finance industry and regulatory authorities in maintaining financial stability in the Islamic Financial Services industry. Key Summit sessions will focus on how regulatory standards can facilitate the enhancement of financial stability in the current challenging global environment.

The Summit seeks to address in detail the issues outlined below:

• Regulatory Challenges
• Corporate Governance & Market Discipline Challenges
• Legal Challenges
• Challenges of Developing Islamic Capital Markets
• Liquidity Management Challenges

For a listing of the full facility of MFSC summit speakers please click here.

To register, please click here.  For further information please visit the official website.

IRELAND - EVENTS - Minister Joan Burton speaking at the Islamic Finance & Investment Conference - Dunboyne Castle - 5/6th June 2012

UK - Islamic Bank Britain - Offer Update

uk.finance.yahoo.com

FOR IMMEDIATE RELEASE

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

8 June 2012

POTENTIAL OFFER UPDATE

FOR ISLAMIC BANK OF BRITAIN PLC ("IBB")

Further to the announcement made by IBB on 6 June 2012, in relation to an approach from Qatar International Islamic Bank Q.S.C. ("QIIB"), a 88.41 percent shareholder of IBB, requesting the opening of discussions with the board of IBB with a view to QIIB making an offer for the IBB shares not already owned by QIIB, any such offer to be effected by way of a scheme of arrangement, QIIB has further confirmed that if any offer is made it is likely that it would be solely in cash.  (source)

CZECH - Islamic banks an inroad for exporters

www.praguepost.com -Muslim institutions could be key part of Czech export strategy

As the government looks to wean domestic companies off their dependence on exports to struggling eurozone countries, the new strategy looks east to high-growth, high-volume markets in developing nations.

It's a plan that has been widely criticized by small business leaders as too risky, and banks aren't exactly lining up to finance dicey ventures, but a group of Islamic banking experts who convened recently for a conference at the Czech National Bank say Islamic banking can help Czech exporters crack new markets in predominantly Islamic countries. Unlike Western commercial banks, Islamic banking practices must be consistent with Islamic law, which forbids charging interest, funding speculative investments and investing in companies whose activities run counter to Islamic teachings like alcohol or gambling outfits.  (source)

PORTUGAL - 1st Portuguese Islamic Finance Conference & Workshop - July 6th 2012 – Lisbon

Celebrating 100 years of tradition and excellence in serving its members by crossing a new frontier and offering insight into the growing industry of Islamic finance, the British-Portuguese Chamber of Commerce, together with its partner Asian Cooperation Enterprise, is privileged to host the first Portuguese Islamic finance workshop in Lisbon.

Attended by high profile personalities in both conventional and Islamic banking, it is set to become a reference point for the cooperation between the two financial worlds. Dignified by esteemed Sharia specialists, from the world's most prominent and successful Islamic finance institutions, it is aimed at both educating the high level conventional bankers with regard to Islamic finance and facilitating networking between powerful entities in Portugal, the Gulf Cooperation Council and South East Asia. (source)

ALBANIA - FINANCE - PM Berisha welcomes participants in International Conference on Foreign Investments in Albania

www.emg.rs -The Conference is organized by the Albanian Investment Development Agency (AIDA) in cooperation with Islamic Development Bank- IDB.

Prime Minister Sali Berisha hosted a welcome reception today evening at the venues of the Palace of Brigades for the participants in the International Conference on Foreign Investments in Albania that holds its proceedings in Tirana.
The Conference is organized by the Albanian Investment Development Agency (AIDA) in cooperation with Islamic Development Bank- IDB.  (source)

EUROPE - INDEXES - Changes DJIM Europe

www.djindexes.com -Changes Follow Regular Annual Review - LONDON (7 June 2012) – Dow Jones Indexes, a leading global index provider, today announced the results of the regular annual review of the Dow Jones Islamic Market Titans 100 Index and its three subindexes, Dow Jones Islamic Market U.S. Titans 50 Index, Dow Jones Islamic Market Asia/Pacific Titans 25 Index and Dow Jones Islamic Market Europe Titans 25 Index as well as the Dow Jones Islamic Market Malaysia Titans 25 Index. All changes will be effective after the close of trading on Friday, June 15, 2012.  (source)

UK - Qatari bank set to buy ailing UK lender IBB

www.thenational.ae - Qatar's Masraf Al Rayan is in discussions to become the biggest shareholder in Islamic Bank of Britain (IBB), a troubled Sharia-compliant lender.

Masraf Al Rayan, the biggest Islamic bank in Qatar, announced after a board meeting on Monday that it had entered negotiations to obtain a controlling stake in IBB through a capital increase.
"Masraf Al Rayan will acquire 70 per cent of the bank and the government of the state of Qatar will acquire the remaining 30 per cent," the bank said. "This is subject to obtaining approval of the official authorities in the state of Qatar and the United Kingdom." (source)

UK - IDB exploring microfinance options in UK

www.saudigazette.com.sa - LONDON — The Islamic Development Bank (IDB) is exploring social and financial inclusion opportunities in the UK including the provision of community-based microfinance, SMEs (small-and-medium-sized enterprises) financing and technical assistance programs.
 
An IDB delegation, led by its President Dr. Ahmed Mohammed Ali, participated in a roundtable here Monday with financial institutions, law firms, corporates and community organizations and leaders.

Dr. Ali said that in addition to the direct assistance to microfinance institutions, initial discussions have taken place with the UK’s Department for International Development (DFID), World Bank and CGAP to start some pilot projects in various common member countries and eventually develop a global Islamic microfinance facility.  (source)

RUSSIA - VTB: The importance of being Islamic

www.euroweek.com - If VTB manages, on its third attempt, to issue a sukuk then the Russian bank will have achieved for conventional issuers what Goldman Sachs couldn’t and Crédit Agricole didn’t dare. Demonstrating that such business is possible would do a big favour for the Islamic finance market — and the Russians themselves. (source)

UK - ADIB the first UAE Islamic bank to begin operations in the UK

www.cpifinancial.net - Abu Dhabi Islamic Bank (ADIB) has officially opened its London branch at the prestigious One Hyde Park at Knightsbridge. It becomes the first UAE-based Islamic financial institution to receive a banking operations licence from the UK Financial Services Authority and to offer full range of services to high net worth individuals. (source)

CZECH - Can Islamic banking help boost Czech Republic exports?

www.islamic-finance-conference.net -A good deal of the ongoing economic and financial turmoil on world markets has been blamed on the unscrupulous practices of the international banking and financial sector. Islamic banking, on the other hand, is seen as a fairer and more balanced alternative which has been much less affected by the crisis. Can the Czech Republic benefit from a financial system based on the Islamic law? And can Islamic banking help boost Czech exports into Muslim countries? These are some of the issues debated at an international conference on Islamic banking held in Prague. (source)

UK - UK Islamic Finance Secretariat welcomes Islamic Development Bank President to London

www.thecityuk.com -Following an invitation from the Lord Mayor of the City of London, President of the Islamic Development Bank (IDB), Dr Ahmad Mohamed Ali today visited London. 
In collaboration with Gatehouse Bank, TheCityUK’s UK Islamic Finance Secretariat (UKIFS) held a meeting at The Mansion House to enable representatives from across the UK Muslim community to meet Dr Ali and his accompanying delegation. At this meeting they discussed areas of potential market development, including microfinance within Islamic communities, job creation initiatives for women entrepreneurs and innovative methods for developing young Muslim talent.


Keith Phillips, Executive Director of UKIFS, commented: “I am delighted to welcome His Excellency Dr Ahmad Mohammed Ali and his delegation to London. His visit provides an ideal opportunity to demonstrate the UK’s undoubted strength as the leading western centre for Islamic finance. UKIFS aims to develop closer working ties with the IDB in its international work and important role in supporting innovation within the UK Muslim community.” (source)

GERMANY - Malaysia's Relations With Germany Have A Great Future - Consul General - CIMB Principal eyes Germany

www.bernama.com - FRANKFURT, May 28 (Bernama) -- Malaysia's relations with Germany have a "great future" not only in trade and economic relations but also in other areas of interest, particularly education.

Malaysian consul-general here, John Samuel, said both sides had good fundamentals for forging a close cooperation in various areas of interest

"I believe there is great future in relations with Europe's economic powerhouse and Malaysia, a key member country of Asean," he told Bernama. (source)

LUXEMBOURG - Appetite for Islamic Bonds rises despite "Grexit"-fears

news.xinhuanet.com - DUBAI, May 26 (Xinhua) -- While the Euro zone crisis has been weighing on investors' sentiment and on global economic prospects, the issuance of Islamic bonds witnesses a renaissance in East and West likewise.
Global issuances of Islamic Bonds, known as Sukuk, surged 55 percent year-on-year in the first quarter of 2012, reaching 43.5 billion U.S. dollars, according to market research agency Zawya.
Despite the escalation of the Euro zone debt crisis in Greece and Spain, where banks suffered withdrawals worth 800 million Euros (one billion dollars) and one billion Euros (1.25 billion dollars) respectively, weighing on global stock indices in recent weeks, new Sukuk issuances are in the global pipeline.
Last May 22, Fernand Grulms, CEO of Luxembourg for Finance, an initiative which promotes Luxembourg as the second largest hub for investment funds, said in Manama at the World Islamic Funds Conference, that the Grand Duchy plans to issue Islamic bonds. These would be the first Triple-A rated Sukuk issued by a Euro zone sovereign issuer.  (source)

UK - An Interview with Sultan Choudhury, Islamic Bank of Britain

www.newhorizon-islamicbanking.com - IBB came into existence in August 2004 when the Financial Services Authority (FSA) granted the Bank its license. In September 2004 IBB became a UK publicly listed company on the Alternative Investment Market (AIM). The Bank’s vision was to offer Shari’ah compliant retail financial services and the journey began when the capital was raised by investors in the UK and the Middle East. The first step was to set up the infrastructure, processes and products as well as bring together the team.

This was followed by the setting up of a branch network. IBB now has a national branch and agency network in key locations including London, the Midlands and North West. To complement this, and to enable Shari’ah-compliant banking to be accessible to consumers across the UK, IBB also developed its Smart Banking facilities, i.e. telephone and internet banking.  (source)