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Aramco and Gulf Wealth De-distribution

Saudi Aramco Total Refining and Petrochemical Company (SATORP), in Jubail on the east coast of Saudi Arabia.In a recent interview with the Economist, Saudi Deputy Crown Prince and head of the Supreme Council of Aramco Mohammad bin Salman noted that the government was considering a partial privatization of the state oil company, with a decision to be made in the next few months.While this may at first appear to be another move to plug the budget deficit as low oil prices persist, analyzing the shifting structure of the Saudi economy and society point to slightly dif...

Emad Mostaque | January 15, 2016

Aramco and Gulf Wealth De-distribution

Aramco and Gulf Wealth De-distribution

Saudi Aramco Total Refining and Petrochemical Company (SATORP), in Jubail on the east coast of Saudi Arabia.In a recent interview with the Economist, Saudi Deputy Crown Prince and head of the Supreme Council of Aramco Mohammad bin Salman noted that the government was considering a partial privatization of the state oil company, with a decision to be made in the next few months.While this may at first appear to be another move to plug the budget deficit as low oil prices persist, analyzing the shifting structure of the Saudi economy and society point to slightly dif...

Emad Mostaque | January 15, 2016

Islamic Finance in Indonesia: Waking up the Sleeping Giant

Financial institutions have a largely untapped market in Indonesia’s “digitally enabled but unbanked” population. Providers with digital capabilities are particularly well placed to facilitate transactions, capitalising on the Indonesian government’s drive to promote its domestic Sharia’h-compliant capital market.This alert will bring to your attention the significant measures the Indonesian government has taken to provide the regulatory environment necessary to germinate and stabilise their Islamic finance market including: branchless banking;promoting S...

Jonathan Lawrence | January 11, 2016

Islamic Finance in Indonesia: Waking up the Sleeping Giant

Islamic Finance in Indonesia: Waking up the Sleeping Giant

Financial institutions have a largely untapped market in Indonesia’s “digitally enabled but unbanked” population. Providers with digital capabilities are particularly well placed to facilitate transactions, capitalising on the Indonesian government’s drive to promote its domestic Sharia’h-compliant capital market.This alert will bring to your attention the significant measures the Indonesian government has taken to provide the regulatory environment necessary to germinate and stabilise their Islamic finance market including: branchless banking;promoting S...

Jonathan Lawrence | January 11, 2016

Bai Al-Salam, Sukuk & Hydrocarbon Rich Countries

Hydrocarbon-rich countries have two reconcilable challenges. In the current low price environment, their budgets are under pressure. Typically, these countries control hydrocarbon ownership and distribution.One of the most underused contracts in Islamic finance is the salam contract. This allows a commodity producer to agree on a price, quality and quantity of a commodity, and a future delivery date. The buyer pays on spot. The producer delivers at a future date.My recommendation is that hydrocarbon producing countries seeking to address their budget deficits, issue sukuk al salam. The bas...

Abdulkader Thomas | December 24, 2015

Bai Al-Salam, Sukuk & Hydrocarbon Rich Countries

Bai Al-Salam, Sukuk & Hydrocarbon Rich Countries

Hydrocarbon-rich countries have two reconcilable challenges. In the current low price environment, their budgets are under pressure. Typically, these countries control hydrocarbon ownership and distribution.One of the most underused contracts in Islamic finance is the salam contract. This allows a commodity producer to agree on a price, quality and quantity of a commodity, and a future delivery date. The buyer pays on spot. The producer delivers at a future date.My recommendation is that hydrocarbon producing countries seeking to address their budget deficits, issue sukuk al salam. The bas...

Abdulkader Thomas | December 24, 2015

Why the Islamic Finance Industry is Failing to Evolve

Yangon, Myanmar - Islamic finance expanding into non-OIC countries. Image courtesy of Shutterstock.If anyone attended the recent Deloitte-IRTI/IDB workshop, I owe you an apology. I know, I was ranting. I’m slightly concerned it’s kind of my thing nowadays. I think the angry young man is still somewhere within, even if disguised by middle age. Is this what I am reduced to in the late ‘asr of my career? The only madman in the room. A repetitive impotent diatribe against the hijackers of an industry I care deeply about.Maybe you care. In fact, it’s more than likel...

Harris Irfan | December 08, 2015

Why the Islamic Finance Industry is Failing to Evolve

Why the Islamic Finance Industry is Failing to Evolve

Yangon, Myanmar - Islamic finance expanding into non-OIC countries. Image courtesy of Shutterstock.If anyone attended the recent Deloitte-IRTI/IDB workshop, I owe you an apology. I know, I was ranting. I’m slightly concerned it’s kind of my thing nowadays. I think the angry young man is still somewhere within, even if disguised by middle age. Is this what I am reduced to in the late ‘asr of my career? The only madman in the room. A repetitive impotent diatribe against the hijackers of an industry I care deeply about.Maybe you care. In fact, it’s more than likel...

Harris Irfan | December 08, 2015

How oil can get back to triple digits by 2017

Chances of an upside shock to oil prices are growing. Image courtesy of Shutterstock.After years of being too high, oil forecasts now appear too low. As supply rolls over we could see prices back at $100, with decade-high geopolitical risks shocking it higher.Spot, or immediate, prices are hard to model as demand is not linearly elastic, but dependent on hundreds of variables. Historical correlations also become irrelevant when sharp moves occur.Oil due for delivery in three to five years is easier to gauge. This should approximate the marginal cost of production for a given level of fut...

Emad Mostaque | December 04, 2015

How oil can get back to triple digits by 2017

How oil can get back to triple digits by 2017

Chances of an upside shock to oil prices are growing. Image courtesy of Shutterstock.After years of being too high, oil forecasts now appear too low. As supply rolls over we could see prices back at $100, with decade-high geopolitical risks shocking it higher.Spot, or immediate, prices are hard to model as demand is not linearly elastic, but dependent on hundreds of variables. Historical correlations also become irrelevant when sharp moves occur.Oil due for delivery in three to five years is easier to gauge. This should approximate the marginal cost of production for a given level of fut...

Emad Mostaque | December 04, 2015

Islamic Finance in Indonesia: Past, Present and Future

This insight aims to highlight new rules governing the Islamic finance sector in Indonesia and the enhanced role of the National Shariah Board, to set out the current state of the market including opportunities for foreign investment and to trace the roots of the industry in the country with the world’s largest Muslim population.New stress test rules for Islamic financial institutionsOn 19 November 2014, the Indonesian Financial Services Authority (OJK) issued new rules regarding the development of Islamic finance in the country. This followed an August 2014 initiative to encourage...

Jonathan Lawrence | December 02, 2015

Islamic Finance in Indonesia: Past, Present and Future

Islamic Finance in Indonesia: Past, Present and Future

This insight aims to highlight new rules governing the Islamic finance sector in Indonesia and the enhanced role of the National Shariah Board, to set out the current state of the market including opportunities for foreign investment and to trace the roots of the industry in the country with the world’s largest Muslim population.New stress test rules for Islamic financial institutionsOn 19 November 2014, the Indonesian Financial Services Authority (OJK) issued new rules regarding the development of Islamic finance in the country. This followed an August 2014 initiative to encourage...

Jonathan Lawrence | December 02, 2015

Solar Sukuk Lights the Way to Alternative Funding Sources: Australia, Indonesia and Malaysia Working Together

Solar Sukuk shows the way forward in alternative financing solutions. Image courtesy of Shutterstock.This article was originally published on 17 March 2015 by Rebecca Clow and Jonathan Lawrence, on K&L Gate Publications. SGI-Mitabu, a joint venture of two Australian solar companies, The Solar Guys International and Mitabu Australia, has revived its plans to fund its Indonesian 250 megawatt solar project with Islamic compliant funding. The solar project will require up to AUD550 million of financing. Commencing in July 2015, the first phase of the project w...

Jonathan Lawrence | November 21, 2015

Solar Sukuk Lights the Way to Alternative Funding Sources: Australia, Indonesia and Malaysia Working Together

Solar Sukuk Lights the Way to Alternative Funding Sources: Australia, Indonesia and Malaysia Working Together

Solar Sukuk shows the way forward in alternative financing solutions. Image courtesy of Shutterstock.This article was originally published on 17 March 2015 by Rebecca Clow and Jonathan Lawrence, on K&L Gate Publications. SGI-Mitabu, a joint venture of two Australian solar companies, The Solar Guys International and Mitabu Australia, has revived its plans to fund its Indonesian 250 megawatt solar project with Islamic compliant funding. The solar project will require up to AUD550 million of financing. Commencing in July 2015, the first phase of the project w...

Jonathan Lawrence | November 21, 2015

Islamic Finance in Australia

Interview originally published in Australia & New Zealand Property Journal, 3/11/2015ALMIR COLAN, director of the Australian Centre for Islamic Finance (AusCIF), comments on the state of Islamic finance in Australia today, and the economic benefits that more widespread implementation could provide. I started AusCIF a couple of years ago primarily to educate the community and businesses about the rules and opportunities of Islamic finance, specifically in the Australian context. Since then we’ve seen start-ups and new products developed in home financing, investment an...

Almir Colan | November 16, 2015

Islamic Finance in Australia

Islamic Finance in Australia

Interview originally published in Australia & New Zealand Property Journal, 3/11/2015ALMIR COLAN, director of the Australian Centre for Islamic Finance (AusCIF), comments on the state of Islamic finance in Australia today, and the economic benefits that more widespread implementation could provide. I started AusCIF a couple of years ago primarily to educate the community and businesses about the rules and opportunities of Islamic finance, specifically in the Australian context. Since then we’ve seen start-ups and new products developed in home financing, investment an...

Almir Colan | November 16, 2015

A Case for Islamic Sharia Compliant Real Estate Investment Trust’s (Islamic REIT’s) in Kenya

Nairobi, Kenya: Central business district of Nairobi viewed from the roof of Kenyatta International Conference Centre (KICC). Image courtesy of Shutterstock. Kenya had its first REIT offer the Stanlib Fahari I-Reit on 25th October 2015. This is the first REIT offering after The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations, 2013 vide legal notice no. 116 came into effect on18th June, 2013. The same regulations also provide for the rules to govern Islamic REIT’s. This is an important and promising asset class for sharia complaint invest...

Mohamed Ebrahim | November 09, 2015

A Case for Islamic Sharia Compliant Real Estate Investment Trust’s (Islamic REIT’s) in Kenya

A Case for Islamic Sharia Compliant Real Estate Investment Trust’s (Islamic REIT’s) in Kenya

Nairobi, Kenya: Central business district of Nairobi viewed from the roof of Kenyatta International Conference Centre (KICC). Image courtesy of Shutterstock. Kenya had its first REIT offer the Stanlib Fahari I-Reit on 25th October 2015. This is the first REIT offering after The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations, 2013 vide legal notice no. 116 came into effect on18th June, 2013. The same regulations also provide for the rules to govern Islamic REIT’s. This is an important and promising asset class for sharia complaint invest...

Mohamed Ebrahim | November 09, 2015

Women in Leadership - Interview with Samina Akram

Samina Akram, launch of the Women in Islamic & Ethical Finance Forum (WIEFF) in London. July 2015.Last week saw the UK Government launch a special report led by Lord Davies entitled "Improving the Gender Balance on British Boards". The 5 year summary states "There are more women on FTSE 350 boards than ever before, with representation of women more than doubling since 2011 - now at 26.1% on FTSE 100 boards and 19.6% on FTSE 250 boards". The report claims there has been "a dramatic reduction in the number of all-male boards. There were 152 in 2011. Today there are no all-male boards...

IB Insights | November 07, 2015

Women in Leadership - Interview with Samina Akram

Women in Leadership - Interview with Samina Akram

Samina Akram, launch of the Women in Islamic & Ethical Finance Forum (WIEFF) in London. July 2015.Last week saw the UK Government launch a special report led by Lord Davies entitled "Improving the Gender Balance on British Boards". The 5 year summary states "There are more women on FTSE 350 boards than ever before, with representation of women more than doubling since 2011 - now at 26.1% on FTSE 100 boards and 19.6% on FTSE 250 boards". The report claims there has been "a dramatic reduction in the number of all-male boards. There were 152 in 2011. Today there are no all-male boards...

IB Insights | November 07, 2015