continued... - Islamic Finance News

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Islamic Finance news Guide 2008
Islamic Banking in the United Arab Emirates (continued...)
National Bonds is the UAE Shariah compliant savings scheme
based on the Mudarabah structure. The organization is jointly
owned by the government of Dubai, Dubai Holdings, Emmar
Properties and Dubai Bank. Its main mission is to raise
Shariah compliant fi nance. A saver can buy any number of
bonds to join the monthly draw to win a prize. The scheme
offers up to 260,000 prizes ranging from AED100 to AED1
million (US$27.23 to US$272,331) every year, including one
top prize for AED1 million. The scheme invests the money in
Shariah compliant earning assets (mainly properties) and
distributes 2% of the profi ts to savers.
“Comprehensive fi nancial data
from the Islamic fi nance industry
in the UAE is not available, either
because fi nancial data is not
published separately or because
the institution is new”
In January 2008, the fund announced Mudarabah return
of 6.03%. The bond denomination is AED10 (US$2.72) and
minimum purchase is AED100 (10 bonds) in order to enter
the draw. No fi nancials have so far been published by the
company.
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Vol. 5, Issue 4 1 st February 2008
The World’s Global Islamic Finance News Provider
In this issue
HONG KONG
Islamic Capital Markets Briefs ................ 1
Tsang woos Arabs to Fragrant Harbor
Islamic Ratings Briefs ..............................12
In an effort to develop a market for Islamic should capitalize on their fi scal freedom. In
fi nance, Hong Kong’s chief executive Donald Kuwait, he signed a letter of intent for the IFN Reports ................................................13
Tsang went on a three-nation tour to Kuwait, development of bilateral trade relations
Hong Kong Forging Ahead with
the UAE and Saudi Arabia. Accompanied during the two countries.
New Venture ..............................................15
by a high-level business delegation,
Tsang created deep impressions with In Saudi, he announced that all Saudi Will Hong Kong Stand Up to
his persuasive words and determination citizens would have the opportunity to the Competition? ...................................... 17
to explore business ties with the three receive a one-month free visa to Hong Kong
Malaysian Tax Incentives for Islamic
countries.
to encourage locals and businessmen to Finance — Trends and Issues ..................19
visit the Asian business hub.
In Abu Dhabi, Tsang praised UAE’s sovereign
The UK Approach to Taxation of
Islamic Finance .........................................21
wealth funds and said that the two countries (Also see IFN Reports on page 14)
Fitch on Rating it Right ............................23
ASIA
Meet the Head ..........................................26
Zulkifl i Ishak, Prudential Fund Management
Lawyers want standardized regulation
Members of the International Bar Association’s focused on the latest developments of Islamic Term Sheet ................................................27
who attended the recent “Islamic Finance fi nance in the Middle East. In highlighting the Hajj Terminal Financing
in the Middle East” conference were nearly issue, Husam Hourani, who is partner and
Takaful News Briefs..................................28
unanimous about the need to apply some level head of the banking and fi nance department
of consistency in Islamic fi nance laws across the at Al Tamimi & Company, said: “There is an Takaful Report ..........................................29
GCC countries in order to establish regionally- urgent need to deepen our understanding Different Models of Takaful in the Global Market
accepted regulatory standards.
and awareness of Islamic fi nance and
Moves .........................................................32
ensure that sound regulatory frameworks
The conference, which was attended by 70 are implemented on the ground for effi cient Deal Tracker ..............................................33
banking professionals and legal experts, fi nancial intermediation.”
Islamic Funds Tables ................................34
Dow Jones Islamic Indexes .....................35
QATAR/UK
Malaysian Sukuk Update .........................36
Qataris own 80% of London Bridge Quarter
A consortium of Qatari investors has designed by the award-winning international Islamic League Tables .............................37
acquired 80% of the building of the London architect, Renzo Piano.
Bridge Quarter, which includes the famous
Events Diary...............................................40
“Shard of Glass” new London Bridge Tower. The consortium members will each hold Subscriptions Form .................................. 41
The four Qatari institutions — QInvest, Sellar 20% in the newly formed London Bridge
Property Group, Qatar National Bank, Qatari Quarter Holdings Ltd. Sellar Properties of Country Index ............................................ 41
Islamic Bank and Barwa — are to undertake London will retain the remaining 20% of the
Company Index ......................................... 41
the £2 billion (US$4 billion) development deal.
Comprehensive fi nancial data from the Islamic fi nance
industry in the UAE is not available, either because fi nancial
data is not published separately (in the case of windows) or
because the institution is new. Anyway, most of the Islamic
fi nance companies and the Islamic banking windows are
under establishment.
Table 4 summarizes the fi nancials available for the UAE
banking industry and compares it with what is available for
the Islamic fi nance industry. The fi gure shows that Islamic
fi nance commands 15.4% of aggregate banking assets and
18% of aggregate banking deposits. These fi gures do not
include Islamic fi nance under the Islamic banking windows
and the National Bonds Company.
Table 4
Islamic fi nance
(AED billion)
Total banks
(AED billion)
Islamic as a
percentage of total
Assets 164 1,064.9 15.4
Deposits 118 651.5 18
* Figures for year 2007
Dr Taha El Tayeb Ahmed is
head of Shariah structuring and
documentation at Mashreqbank.
He can be contacted via email at
tahae@badralislami.com.
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