S&P Indices announced Friday the launch of the S&P/OIC COMCEC 50 Shariah Index, which is designed to measure the performance of 50 leading Shariah-compliant companies from the member states of the Organization of Islamic Cooperation (OIC). The Index has been designed in partnership with the OIC.
2 Comments
Islamic finance to strengthen economic and financial linkages between Asia and the Middle East5/24/2012 The rapid international expansion of Islamic finance reflects its ability to remain competitive and to increasingly meet the complex requirements of the global financial community. With various countries now intensifying efforts to develop their respective Islamic financial capabilities, it is becoming increasingly vital to build deeper relationships between the key markets for Islamic finance and also between the leading industry players in each of these jurisdictions. Central banks from seven Muslim countries yesterday launched a regulatory body to oversee the booming Islamic investment market. The Islamic Financial Services Board (IFSB) was inaugurated here by founding members Malaysia, Saudi Arabia, Indonesia, Iran, Kuwait, Pakistan, Sudan and the Islamic Development Bank. Global Islamic insurance contributions surged 19 percent in 2010 to $8.3 billion helped by Saudi Arabia, the world’s biggest oil exporter, which made up more than half the industry, an Ernst & Young report said. The six-nation Gulf Cooperation Council, which also includes the United Arab Emirates, Qatar, Bahrain, Oman and Kuwait, made $5.68 billion of Islamic insurance or takaful contributions in 2010, and South East Asia $2 billion, according to the World Takaful Report 2012 e-mailed today. James Caan made his millions in the recruitment and headhunting business and his claim to fame was his starring role as part of a BBC show which strived to find the latest and hottest new business models. As a result, he is an expert at delivering the perfect pitch and getting his message across. In the Gulf to announce his latest move into the world of Islamic finance, it soon becomes clear Caan knows exactly how to combine his latest business campaign with some headline grabbing soundbites. The government has launched its debut sovereign Sukuk via the sale of the General Authority of Civil Aviation’s (GACA) 10-year Sukuk. The offering comes amid fierce optimism in the Islamic bond market and follows the sale of the world’s largest Sukuk offering by Malaysia’s Projek Lebuhraya Usahasama (PLUS) on the 12thJanuary. Standard & Poor’s (S&P) is currently reviewing credit ratings on 50 banks in the Middle East and North Africa under a revised set of criteria. Such move could result in a higher funding costs for lenders, already hit by the Arab Spring revolts. The agency which previously drew a weak credit profile for United Arab Emirates lenders, expects more activity in debt capital markets as bank lending struggles. While Kuwait has to date played a relatively small role in the fast-growing global market for sukuks, or Islamic bonds, this could change, should lawmakers develop and implement a more robust legal framework to regulate the issuance of sharia-compliant debt, Global Arab Network reports according to OBG. In the meantime, however, two entities with strong ties to the country – Kuwait-based Gulf Investment Corporation (GIC) and Kuveyt Turk participation bank, which is 62% owned by Kuwait Finance House (KFH) – have in recent months raised funds by selling sukuks. Issuers in Gulf countries face rising refinancing risks over the next three years amid a significant increase in maturing debt to 2014, Standard & Poor's has said in a new report. The rating agency said experts estimate bonds and sukuk worth about $25bn will mature in 2012, rising to about $35bn in 2014. Regional governments need to issue more sukuk in order to provide short-term liquidity instruments that Islamic finance needs. That was the claim by Kuwait Finance House-Bahrain (KFH-Bahrain) managing director and chief executive officer Abdulhakeem Alkhayyat on the sidelines of the AAOFI conference yesterday. The Islamic finance industry desperately needs more short-term liquidity but we cannot look to the private sector to provide this in the region," he said. |