Dar Al Takaful has produced its half yearly results for the period ending 30 June which show that the firm has turned a loss into profit. Overall profit in the first half of the year is AED2.5m compared to a first half loss of AED3.8m for last year. Dar Al Takaful’s contribution has grown by 15 per cent to AED65.2m compared to AED57m for the corresponding period last year. Improvements were made in the growth of the non-motor sector which, compared to the previous corresponding period, saw 59 per cent growth. The growth recorded in medical area is was also impressive. Investment income of the shareholders has grown from AED1.9m in June 2013 to AED5.6m in June 2014, up 183 per cent with the firm’s diversification strategy starting to pay dividends.
Societe Generale has delayed a Sukuk in Malaysia, according to Bloomberg reports. The bank had hoped to sell a RM150m 5-year Sukuk with a profit rate of between 4 per cent and 4.25 per cent in the last week of July, as part of the bank’s RM1bn multi-currency Sukuk programme. The French bank is said to have been spooked by the prospect of the Malaysian central bank hiking its cash rate to ward off gathering inflation clouds. Bond yields around the world are under pressure as the Fed continues its tapering plan and core inflation in the US signals that recovery is underway and that global rates will rise in 2015.
Labuan International Business and Financial Centre has hopes of helping to fill the void for customers looking for Shari’ah compliant wealth managements and private banking services. Saiful Bahari Baharom, CEO of Labuan IBFC is quoted as saying that attempts by foreign institutions to set up Islamic wealth management have failed. "But … five to eight years ago, the number of Shari’ah compliant assets has grown as well as the investment products and therefore having a unit to manage these assets the Islamic way is crucial," he said. Finance Deputy Minister, Datuk Ahmad Maslan, said, "I foresee Islamic wealth management as a natural next-stage development of the local Islamic finance industry with the availability of our infrastructure, in respect of the human capital development to the Islamic financial institutions and expertise we have before us today." Last month Eaglemont Media, publishers of The Islamic Globe, published an eBook on Amazon.com addressing the issues of Islamic wealth management called A Primer: Islamic Wealth Management. (Click for more details).
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.