Monday, 3rd August 2015
S&P 500 Shariah
Dow Jones Islamic World
FTSE Shariah All World
Russell - IdealRatings Islamic Global
1,828.27
2,923.61
2,019.98
1,910.61
▲ 1.18 (0.06%)
HIGHLIGHTS: Kenyan Youth Enterprise Fund eyes Shariah compliant status – Gulf Finance House rebrands – EFG Hermes hires new asset management head
This week's poll question: Does the weakness of the Malaysian ringgit have an effect on pricing of the global Sukuk market?
Islamic investors parking money in education sector
Daily Cover
GLOBAL: GFH Capital is eyeing a majority stake in a Dubai-based private school against the backdrop of a significant Islamic investment wave into the lucrative private education sector.
To be executed within the next 12 months, GFH Capital’s planned acquisition follows its inaugural investment in the private education sector last May involving another Dubai-based institution. The impending 80% stake purchase in the school valued at AED200 million (US$54.43 million) is expected to reflect positively on GFH Capital’s financial result. “Building on its strong reputation, the school has reported steady growth in enrolment year-on-year, a trend which is expected to continue in line with the growing demand for high-quality international standard education in the UAE and across the MENA region,” noted Nabeel Mirza, the firm’s compliance director and MLRO, in a bourse filing.
And it would not be surprising to see GFH Capital continue expanding its education portfolio as the education segment continues to grow in appeal as an asset class due to changing demographics in the GCC (including a rise in expat community), an increasing demand for international curriculum and a higher purchasing power. Figures from global consulting firm Strategy& show that the K-12 public and private education market in the region could reach US$90 billion in 2020, more than double from US$36 billion in spending five years ago. In terms of students, the growth trajectory is anticipated from 6.35 million students to 8.25 million students over the same period.
The GCC aside, Shariah investors are also pouring money abroad to capitalize on this global phenomenon. Saudi Arabia’s SEDCO Holding Group in May this year set foot in the Turkish education sector – said to be the fastest-growing in the world – by acquiring a 50% shareholding in Merktebim Okullari, a local private school operator with 17 schools to its name and plans to add eight more before the year ends. Saudi’s Itqan Capital is also looking to introduce a US$200 million Shariah compliant private equity education fund.
The Sukuk market is also seeing increasing activity in the education space with Khazanah Nasional’s pioneering SRI Sukuk – also the world’s first ringgit-denominated Sukuk of its kind – designed to support the establishments of new schools in Malaysia via its Yayasan AMIR’s Trust Schools program (See Case Study Vol 12 Issue 27: ‘Khazanah Nasional: Creating a new asset class’). The world’s largest provider of K-12 private education, GEMS Education, also tapped the Sukuk market with a US$200 issuance in 2013 to fund its expansion plans; and recognizing the prospects of the segment, the following year Bahrain’s Fajr Capital led an investor group to acquire a significant minority stake in GEMS Education.
Japan: An IFN Correspondent Report
Revolutionary steps in Islamic banking in Japan
Islamic finance deregulation and standardization is proceeding steadily in Japan. Japan’s main financial regulatory authority, the Financial Services Agency published supervisory policy changes concerning major banks and started collecting public opinion in the winter.
IFN Weekly Poll
What is the most cost-effective way to increase Islamic retail banking customers?
Industry projections (by EY) estimate that Islamic banking assets will grow by an average of 19.7% each year until 2018, based on the annual rate of increase of 17.6% between 2009 and 2013. Supporting this growth trajectory, IFN asks what the most cost-effective way is for Islamic financial institutions to increase their Islamic retail banking customers. With surprising poll results, NABILAH ANNUAR reports.
This week's poll question: Does the weakness of the Malaysian ringgit have an effect on pricing of the global Sukuk market?
Today's IFN Alerts
KENYA: Youth Enterprise Fund working toward Shariah compliance to reach out to young Muslims
MALAYSIA: Malaysian Financial Planning Council launches competition to boost awareness on Shariah financial planning
UK: UK Trade & Investment identifies 18 Shariah compliant regeneration investment opportunities across the country
BRUNEI: Government of Brunei Darussalam successfully prices its 120th series short-term Sukuk Ijarah
BAHRAIN: Gulf Finance House changes commercial name to GFH Financial Group
UAE: Takaful Contribution Fund plans to expand service offerings
MALAYSIA: AEON Credit Service to make Sukuk payments on the 17th August 2015
BAHRAIN: Tamkeen and Ithmaar Bank ink agreement to add BHD10 million (US$26.52 million) to their joint enterprise finance scheme portfolio
MALAYSIA: Great Eastern Takaful plans to roll out two more Takaful products by end of 2015
SAUDI ARABIA: Solidarity Saudi Takaful Co records net loss before Zakat of SAR56.33 million (US$15.01 million) in first half of 2015
OMAN: Capital Intelligence affirms Oman’s sovereign ratings at ‘A’ and ‘A1’ with a stable outlook
SAUDI ARABIA: EFG Hermes names Sadiq Hussain as managing director of asset management
IVORY COAST: President of Cote d’Ivoire, Alassane Ouattara, to officiate the Africa Islamic Finance Forum organized by ICD
INDONESIA: Indonesia’s finance minister to deliver keynote address at the IFN Issuers Forum taking place at the Ritz Carlton DIFC in Dubai on the 13th September
UAE: Abdulla Al Awar to deliver keynote address at the IFN Issuers Forum in Dubai this September
TURKEY: Turkiye Finans shows full support for IFN Turkey Forum 2015 as lead partner
GLOBAL: IFN Asia Forum breaks 1,000-delegate mark yet again – dates for next year confirmed
IFN Issuers Forum 2015
13th September 2015 (Dubai)
Africa Islamic Finance Forum 2015
17th & 18th September 2015 (Abidjan, Cote d’Ivoire)
IFN Kuwait Forum 2015
19th October 2015 (Kuwait City)
IFN Turkey Forum 2015
17th November 2015 (Istanbul)
IFN Saudi Arabia Forum 2015
30th November 2015 (Jeddah)
Understanding Islamic Contracts: Structuring & Legal Issues
17th - 19th August 2015 (Dubai)
Islamic Financial Services Act (IFSA) 2013 & Islamic Banking Products
18th & 25th August 2015 (Kuala Lumpur)
Shariah Audit & Governance for Islamic Banking
20th - 21st August 2015 (Kuala Lumpur)
Islamic Finance Qualification
23rd - 25th August 2015 (Dubai)
Advanced Sukuk & Islamic Securitization
24th - 26th August 2015 (Istanbul)
Undertaking Effective Litigation & Recovery in Islamic Finance Facilities
7th - 8th September 2015 (Kuala Lumpur)
Sharia’a Compliance & Audit for Islamic Banks
8th - 9th September 2015 (Dubai)
Funds Transfer Pricing
5th - 7th October 2015 (Kuala Lumpur)
Trading Book Market Risk Management for Financial Institutions
8th - 9th October 2015 (Kuala Lumpur)
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