Kenya Commercial Bank has said it now has approval to introduce KCB Sahal Banking, its Islamic banking initiative in Kenya, topping up its Islamic banking offerings in Tanzania. Bank chief executive Joshua Oigara said the introduction in Kenya will promote development in the marginalized areas of the country. Kenya Commercial Bank will join Gulf African Bank and First Community Bank in the Shari’ah compliant banking space. The launch of KCB Sahal Banking is slated for early August.
Tamweel goes private
Islamic home financing company Tamweel is pressing ahead with its privatization and has advised the Dubai Financial Market that, "Pursuant to the resolution issued on Tamweel PJSC Extraordinary General Assembly Meeting held on 7/7/2014 regarding the conversion of the Company from public Joint stock company to private Joint stock company. The Company would like to announce to its shareholders its conversion to private Joint stock company in accordance with the Ministerial Resolution No. 513 of year 2014 issued on 21/7/2014".
Tamweel, along with Amlak, were badly affected by the real estate crash in Dubai after the global financial crisis.
The world’s oldest Islamic bank, Dubai Islamic Bank, posted an 81 per cent rise in H1 net profits boosted by higher fee income and investment income. Profits reached AED1.337bn in the six months to 30 June, up from AED 739m in the corresponding period last year.
Gross revenue increased by 12.6 per cent to AED 3,056m in H1 2014 from AED 2,714m in H1 2013. Net revenue increased by 26 per cent to AED 2,659m in H1 2014 from AED 2,117m in H1 2013. Net funded income increased by 20 per cent to AED 1,689m in H1 2014 compared to AED 1,409m for the same period in 2013. Strong growth in fee and commission income by 34 per cent to AED 581m in H1 2014 compared to AED 434m for the same period in 2013.
DIB CEO Andan Chilwan
From 2015 foreigners could be allowed to buy and sell shares in the US$531bn, largely retail investor driven, stock market in the Kingdom of Saudi Arabia. The cabinet in the kingdom will allow overseas entities to buy and sell stocks directly on the Tadawul All Share Index. This move brings the Tadawul more into line with exchanges in the UAE and Qatar and this development has been on the cards since 2007. In 2008 investors overseas have been allowed to buy and sell shares via swap agreements. Further details on the practicalities of foreign investment is expected in August. The move is likely to move the market in KSA with all the implications this has for the pricing and yield on Shari’ah compliant financial instruments.
Old man of Islamic finance, Kuwait Finance House, saw it profits rise 6.4 per cent in Q2 to 28.5m dinars ($101m), up from 26.8 million dinars in the same period last year. Profits for the first half year were 54.57m dinars, up 10 per cent on the year.