TradeFlow21 » Islamic Finance

Citigroup’s positive take on Iraq

admin — Wed, 18 May 2011 00:59:24 +0000

Bloomberg reports that Citigroup has hired a former U.S. diplomat (financial attache at the U.S. embassy in Baghdad), Dennis Flannery, to head its Iraq division. In February, Citigroup included Iraq among the eleven economies with the most promising growth prospects in coming decades. In addition, February saw Iraq’s oil exports reach their highest level since the U.S. invasion in 2003. Mr. Flannery, who is initially to be based out of Amman, Jordan, had the following comments:

“We are very optimistic about Iraq over the next three to five years.” It will have “considerable wealth” from its oil exports and is poised to invest in the oil and gas industry, power generation and housing to boost growth. “Over the last year, Iraq’s security situation has improved very steadily.” Over a longer period, Citigroup may have “branches, a consumer business, a middle- market business” as well as a “full-service bank in the country.”

Abu Dhabi extends $10B lifeline to Dubai

LN — Tue, 15 Dec 2009 17:46:04 +0000

The Dubai Exchange rallied 10.4 percent yesterday in the wake of a $10 billion credit line from Abu Dhabi, coagulating some of the recent hemorrhaging. A portion of the funds will reportedly be used to meet a $4.1 billion bond payment owed by Nakheel–a real estate subsidiary of Dubai World. Though seen as a positive step in restoring fiscal balance, the process, in the view of one market analyst, “is far from over.” (See Financial Times coverage and also read TF21 Managing Partner Lew Nescott’s take on the viability of Dubai.)

Dubai introduces shariah-compliant gold ETF

LN — Fri, 06 Mar 2009 03:52:48 +0000

On Monday of this week, the Emirate announced the launch of an “exchange-traded fund backed by physical gold.” The fund will allow regional investors to not only preserve capital but perhaps generate substantial returns. The gold bullion, which will be held in London by HSBC, meets the hard-asset requirements of shariah. At the fifth World Islamic Economic Forum held in Jakarta also on Monday, participants ventured further in offering shariah-based banking as a viable alternative to the highly-leveraged transactions model. For more, click on designated links to full stories in the Financial Times.

HSBC head sees convergence between Islamic and conventional markets

LN — Thu, 24 Jul 2008 14:28:40 +0000

Mr. Mukhtar Hussain, HSBC global CEO for the Middle East and North Africa, forsees significant and sustained growth in Islamic financial services driven by public spending on infrastructure, estimated by one account at a staggering $2.1 trillion. See Financial Times article.

Islamic bonds rising

LN — Tue, 22 Jul 2008 13:23:24 +0000

Investors from Europe and the US seeking to increase their exposure in the Gulf region helped boost sales of Islamic bonds to $17 billion at the end of June, representing a 17 perecent increase over the previous year. Fueled by soaring oil prices, the cash rich region is seen by many as a low-risk alternative to the credit-stressed markets of the West. See article in Financial Times (7/22).

Dubai meets market demand for shariah compliant $250M fund

RH — Thu, 19 Jun 2008 14:29:30 +0000

Reuters reports (6/19) that a new $250M fund-of-funds has been established in the Caymans to connect investors with shariah compliant investment opportunities. The fund will be managed by Tocqueville Asset Management, Lucas Capital Management, Zweig-DiMenna International Managers, Ospraie Management and BlackRock. Dubai’s most recent move highlights the growing attractiveness in shariah compliant investing.

ME banks focus on tech investing for next decade

RH — Thu, 29 May 2008 00:07:56 +0000

Gulfnews reports (5/27) that ME banks anticipate spending $1T on tech and services over the next decade. Additionally, numerous ME banks intend to commit upwards of $3.5B in banking upgrades in half that time. Dubai plans to host the first Middle East International Banking, Finance Technology and Services Exhibition and Conference to bring together companies and leaders to discuss.

Forbes Special Report on Islamic Finance

admin — Wed, 28 May 2008 01:15:44 +0000

In April, Forbes reported that at least $500 billion in global assets are managed in accordance with Sharia (Islamic) law, with sustained annual growth of 10-plus percent. While bank stocks and the banking industry are being treated as “toxic” in the U.S. (and parts of Europe) due to the massive writedowns and uncertainty of what else may remain on the books, Islamic finance is booming! Many of the sources of distress for “western” banks would have largely been avoided per inherent Sharia limitations. Interestingly enough, Middle Eastern wealth is helping to shore up the capital bases of some of the most prominent western banks and eventually may result in handsome returns.