IB November 2013 final _IB_JanFeb 2010.qxd 06/03/2014 23:29 Page 1 islamic banker Leading the Way in Faith-based investment c ontents Issue No. 214 November 2013 dhuL hijja 1434 - muharram 1435 Publisher Leila badawi editor mushtak Parker Design & Production imtiaze manjra research & Development alan st clair marketing & Finance Contributing editors dr daud bakar (dubai) mustafa aksay (istanbul) dr adalet djabiev (moscow) stella cox (London) dr mohsin Khan (Washington) Wan abdul rahim Kamil (Kuala Lumpur) dr saleh malaikah (jeddah) dr abbas mirakhor (Washington) dr volker nienhaus (essen) adeel y siddiqi (London) richard thomas (London) adam ebrahim (cape town) tan sri nor mohamed yakcop (Kuala Lumpur) ali yasseri (tehran) shariah Consultant Professor abdul ali hamid editorial enquiries tel:+44 (0) 20 8459 4310 Fax:+44 (0) 20 8338 0374 islambank@aol.com mushtakparker@yahoo.co.uk marketing and subscription enquiries tel:+44 (0) 20 8459 4310 Fax:+44 (0) 20 8388 0374 islambank@aol.com mushtakparker@yahoo.co.uk Istanbul mustafa aksay bahcelievler mah., cagdas sokak, no:16-a, cengelkoy 81220 uskudar, istanbul, turkey tel:+90 216 332 3948/9/50 Fax:+90 216 332 2505 e-mail: dokufilm@dokufilm.com Cape Town mubeen roomaney 22 doring road, rylands estate, athlone cape town 7764. south africa tel:+27 21 6922081 Fax:+27 21 6922081 Published by mushtak Parker associates (mPa) Limited registered office: 30 chelmsford square London nW10 3ar united Kingdom Tel: +44 (0) 20 8459 4310 Fax: +44 (0) 20 8338 0374 e-mail: islambank@aol.com or mushtakparker@yahoo.co.uk Website: www.islamicbanker.uk.com uK Company registration No. 3023701 IssN 1359-351X eDITorIAL The sTATe oF The IsLAmIC FINANCe INDusTry 2 TIme For IF INDusTry To sTArT reALIsINg ITs PoTeNTIAL NeWs IN FoCus & bANKINg IN brIeF 3 FINANCe exCLusIve INTervIeW: AbDuLrAzzAK m eLKhrAIjy, NCb 6 The FuTure Is IsLAmIC bANKINg IN sAuDI ArAbIA demand for islamic banking and finance products and services is set to increase steadily over the next few years in saudi arabia, the world’s single largest such market, especially from young customers, corporates and government entities. this includes retail banking, corporate finance and investment banking in particular for sukuk issuance. Mushtak Parker discusses with Abdulrazzak M Elkhraijy, executive vice President and head of the islamic banking development group at National Commercial Bank (NCB), the state of, the current opportunities and future challenges of islamic banking in the Kingdom TILAL DeveLoPmeNT LAuNChes omAN’s FIrsT CorPorATe suKuK 9 INTervIeW Dr zeTI AKhTAr AzIz, goverNor, bANK NegArA mALAysIA 10 IF INDusTry muCh souNDer ToDAy ThAN A yeAr Ago Following in the tradition of her predecessors, dr Zeti akhtar aziz, governor of bank negara malaysia, the central bank, is the most proactive and experienced governors serving the islamic banking, finance and takaful industry. her influence transcends her home jurisdiction of malaysia to the corridors of power at the g8, the basle committee and the iFsb (islamic Financial services board). she is the archetypal ‘central banker’s central banker’ and commands huge respect both at home and abroad. in this in-depth interview, Governor Zeti Akhtar Aziz discusses with <strong>Islamic</strong> <strong>Banker</strong> the state of the global islamic finance industry; the latest developments in the malaysian and regional markets; and the challenges the industry is faced with going forward suKuK gLobAL suKuK mArKeT versus boND mArKeT 14 suKuK mArKeT To WIThsTAND boND mArKeT voLATILITy the prospect of the us Federal reserve (Fed) tapering the monetary stimulus programme sent shockwaves through the financial markets. sukuk have not been spared by the impact of rising us yields. however, Ramlie Kamsari, chief executive officer, CIMB Principal <strong>Islamic</strong> Asset Management in Kuala Lumpur, maintains that the global sukuk market has proved relatively more resilient in the face of this volatility, and that this resilience has largely been a demand-driven phenomenon, propelled by investors for products that are more compliant with their religious faith suKuK KhAzANAh NAsIoNAL sg$600m exChANgeAbLe suKuK 16 KhAzANAh Issues seCoND suKuK IN sINgAPore mArKeT Khazanah nasional berhad, the malaysian sovereign wealth fund (sWF), successfully completed a benchmark exchangeable sukuk offering of sg$600 million (rm1.524 billion), via a Labuan incorporated independent special purpose company, indah capital Ltd. in november 2013, which the company stressed is the first singapore dollar-denominated negative yield exchangeable sukuk, and the first offering to offer exposure to a growing private healthcare market. <strong>Islamic</strong> <strong>Banker</strong> reports © mushtak Parker associates (mPa) Ltd. all rights reserved. no part of this publication may be reproduced or used in any form (graphic, electronic or mechanical, including photocopying, recording, taping or information storage and retrieval systems) without permission of islamic banker. all comments, news, statistics are provided for information purposes only. Whilst islamic banker takes every care to ensure that its reporting is accurate, it cannot take responsibility for any error of fact, comment, statistics or news, nor any loss, financial or otherwise, resulting from any business, trade, investment, or speculation conducted on the basis of these comments, facts, statistics, dates and news. the views of contributors and guest w riters are not those of the editor and staff of islamic banker.