First-ever Conference on Halal Tourism in Spain

ZAWYA.COM--Spain to host ever international conference on halal tourism

Europe is hosting the first-ever international conference on halal tourism to look at how the industry can capitalise on one of the fastest growing sectors in the world.

The Halal Tourism Conference, being held on September 22 and 23, 2014, will bring together the global travel industry to discuss ways of tapping into this niche market.

The event, being hosted in Andalucia, Spain, aims to equip delegates with market intelligence, industry forecasts and trends to understand how to market to the lucrative Muslim consumer and benefit commercially.

According to the latest figures, the halal tourism sector was worth $140 billion in 2013 representing around 13 per cent of global travel expenditures. This figure is expected to reach $192b by 2020.

Organiser Tasneem Mahmood, from CMM, said the conference hopes to have attendance and representation from every region of the world and presents great opportunities for countries like UAE.

"Every country and business needs to look at Halal tourism because it is growing so rapidly and the Muslim consumer is increasing spend on leisure holidays. For a country like UAE, with a deep Islamic heritage and so much to offer, it presents a real opportunity to attract visitors," she said.

"Our research has shown there are so many countries and travel operators who can benefit from halal tourism but are currently missing out. Within Europe alone, there so many Muslim travellers for UAE to target," she added.

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Airbus $100 Million Shariah Bet Signals Gulf Carrier Boom

BLOOMBERG.COM--When Airbus Group NV’s new Islamic plane-leasing fund gets up and running, it will mark the latest milestone for Shariah-compliant finance in an industry growing at the fastest pace since 2011.

Airbus and Jeddah-based Islamic Development Bank will each provide 10 percent of an initial $1 billion in equity for a fund that may grow five-fold in its first two years, according to Dubai-based Quantum Investment Bank Ltd., one of the placement agents for the fund. The vehicle will buy new and used planes and lease them to carriers. Borrowers in the air-transport industry have raised almost $10 billion in Shariah-compliant debt since 2012, data compiled by Bloomberg show.

“All the stars are aligned for this,” Rizwan H Kanji, a Dubai-based partner at law firm King & Spalding LLP, said by phone yesterday. “The airline industry is growing, and we have strength in the Middle East by virtue of the orders from our airlines. And that’s in a region with a lot of Islamic liquidity looking at places to deploy.”

Islamic finance is booming as investors looking for vehicles that adhere to the religion’s ban on interest pour in cash. Shariah banking assets will double to $3.4 trillion by 2018 from 2013, according to Ernst & Young LLP. The airline industry is forecast to grow 5.9 percent this year, the fastest since 2011, with Middle Eastern carriers expanding 13 percent, according to a June 2 report from the International Air Transport Association.

Sukuk Demand

The Gulf Cooperation Council has become the most important market for wide-body planes in the past decade, with Dubai-based Emirates, Doha-based Qatar Airways Ltd. and Abu Dhabi’s Etihad Airways PJSC racking up hundreds of purchases as they expand their home bases into leading hubs for intercontinental travel.

The Airbus Leasing Islamic Fund targets raising $5 billion in equity and debt over two years with the first tranche due to close in the third quarter. It will be managed by International Airfinance Corp. and will offer jets to carriers based in Islamic states led by those in the GCC and Southeast Asia.

Shariah investors are flush with cash as demand for securities far exceeds supply. A $500 million perpetual sukuk from Abu Dhabi’s Al Hilal Bank PJSC sold yesterday received orders of about $5 billion, according to people familiar with the matter.

Given Islamic investors’ “solid liquidity conditions,” the fund will probably be welcomed, Apostolos Bantis, a Dubai-based credit analyst at Commerzbank AG, said by e-mail yesterday. “The successful story and healthy growth dynamics of GCC-based airlines should provide additional comfort.”

2,000 Planes

The Airbus fund’s success may determine if structures of this kind take off in the airline industry and other asset classes, according to Kanji. The airline industry is heavily exposed to the economic climate, and “the less aircraft are leased, the lower the return could be,” he said.

The Middle East will need about 2,000 new planes through 2032, according to Airbus’s latest global market forecast. Emirates last year made the biggest commercial commitment for planes in history. The carrier ordered 150 planes from Boeing Co. and 50 from Airbus at the Dubai Airshow in November.

“We wanted something more liquid than real estate and felt that transportation would be an ideal asset,” Quantum Chief Executive Officer Idriss Ghodbane said by phone from London. “There’s a lot of Islamic liquidity sitting in the market and looking for better options.”

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OJK Resmi Jadi Anggota Penuh IFSB

Skalanews -Setelah menunggu selama satu tahun, Otoritas Jasa Keuangan (OJK) akhirnya resmi menjadi anggota penuh The Islamic Financial Services Board (IFSB). 

Diwakili Ketua Dewan Komisioner OJK, Muliaman D Hadad, OJK hadir dalam pertemuan lembaga itu di Bandar Seri Begawan, Brunei Darussalam pada 25-27 Maret 2014.

Siaran pers OJK di Jakarta, Kamis (27/3), menyebutkan keanggotaan penuh untuk OJK sebelumnya diusulkan pada pertemuan IFSB pada tahun 2013.

IFSB merupakan organisasi yang menetapkan standar internasional di bidang jasa keuangan syariah, yang mendorong terwujud dan meningkatkan tingkat kesehatan dan stabilitas industri jasa keuangan syariah (JKS) dengan mengeluarkan standar kehati-hatian yang bersifat global.

IFSB juga menentukan prinsip-prinsip panduan untuk JKS, yang didefinisikan secara luas untuk mencakup perbankan, pasar modal dan sektor asuransi.

Selain itu IFSB juga melakukan penelitian dan mengkoordinasikan inisiatif isu-isu industri terkait, serta menyelenggarakan diskusi informal, seminar dan konferensi untuk regulator dan pemangku kepentingan industri.

IFSB beranggotakan 185 anggota termasuk IMF, World Bank, Bank for International Settlements (BIS), IDB, ADB dan 119 otoritas dan pelaku pasar di industri keuangan yang tersebar di 45 negara.

Sebagai anggota penuh IFSB, OJK tidak hanya terkinikan dengan penerapan standar internasional sistem keuangan syariah di berbagai anggota. Tapi juga dapat memberikan masukan terhadap aturan-aturan prudential di bidang keuangan syariah, yang akan menjadi pedoman bagi anggota IFSB.

The Council Meeting IFSB di Brunei, merupakan pertemuan akbar yang dilangsungkan bersamaan dengan pertemuan tahunan (General Assembly Meeting) yang dihadiri oleh 185 anggota, serta seminar internasional keuangan Islam, kuliah umum dan evaluasi keanggotaan IFSB.

Dengan menjadi anggota penuh IFSB, OJK memiliki akses luas untuk memperoleh bantuan teknis dalam penerapan aturan-aturan prudential internasional yang tidak hanya di industri perbankan, namun juga di industri pasar modal dan asuransi.

Sebagai anggota baru, OJK telah diminta untuk berbicara di Summit Meeting di Mauritius bulan Mei 2014, yang mengambil tema "New Markets and Frontiers for Islamic Finance: Innovation and the Regulatory Perimeter". (Ant/DS)

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Bank of Korea joins Islamic Finance Body IFSB

ALARABIYA.NET--South Korea’s central bank has joined the Islamic Financial Services Board (IFSB), one of the main standard-setting bodies for Islamic finance, as regulators across Asia build closer ties to the growing industry.

Guidelines issued by the Kuala Lumpur-based IFSB are gaining prominence as the industry takes a greater share of the banking sector in several majority-Muslim countries and expands into new markets.

The Bank of Korea is the 59th regulatory body to join the IFSB, bringing total membership to 184, joining the likes of the central banks of Luxembourg and Japan and the monetary authorities of Hong Kong and Singapore.

The move could augur stronger links between South Korea and Islamic finance hubs in southeast Asia.

South Korea’s Export-Import Bank of Korea already has a bond program in Malaysia that can issue Islamic bonds, or sukuk, although it has yet to tap the market.

This week, Hong Kong lawmakers passed a bill that will allow the AAA-rated government to raise around $500 million via sukuk, or Islamic bonds.

In a separate statement, the IFSB also adopted a revised guideline on the supervision of Islamic finance institutions, helping tighten regulatory oversight of industry practices.

The latest update complements stricter Basel rules, agreed globally to make banks safer after the 2007-09 credit crisis.

In the past two years, the IFSB has issued separate guidelines on liquidity risk management, stress testing and capital adequacy.

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Total Rekening Tabungan dan Pembiayaan Syariah Masih Rendah

INFOBANKNEWS.COM--OJK mencatat pertumbuhan account perbankan syariah mencapai 40% pada tahun lalu. Meski angka tersebut terbilang tinggi, hingga saat ini total rekening tabungan dan pembiayaan syariah baru mencapai 16 juta. Rezkiana Nisaputra

Jakarta–Otoritas Jasa Keuangan (OJK) mengakui, berdasarkan data pasar keuangan syariah masih didominasi dari pertumbuhan ritel, sehingga membuat pasar keuangan syariah di Tanah Air tertinggal dari negara muslim lainnya.

“Seperti negara muslim yang lain, yakni Malaysia, Arab Saudi dan Turki, pasar keuangan syariah mereka itukan lebih mengejar pertumbuhan korporasi,” ujar Kepala Departemen Perbankan Syariah OJK, Edy Setiadi, di Hotel Sofyan, Jakarta, Kamis, 6 Maret 2014.

Dia menjelaskan, memang negara-negara tersebut memiliki pertumbuhan ekonomi yang cepat. Namun, pangsa syariah dinegara tersebut kecil bial dibandingkan dengan Indonesia, sehingga pertumbuhan ritel Indonesia lebih tinggi.

“Pertumbuhan ritel tinggi, account nasabah capai 40% sehingga rekening tabungan ada 12,4 juta dan rekening pembiayaan 3 juta, total 16 juta. Tapi tetap nominal tersebut kecil,” tukasnya.

Meski nominal rekening tersebut minim, Dana Pihak Ketiga (DPK) syariah mampu masuk relatif besar. Ini disebabkan sisi pembiayaan yang tumbuhnya 40%. “Jumlahnya besar-besaran sedangkan sisi pembiayaan karena banyak transfer orang-orang kota ke desa,” ucap Edy.

Dia meminta, agar perbankan syariah bisa menjadi perhatian utama, dimana sejauh ini OJK sudah melakukan langkah-langkahnya untuk terus mendorong perbankan syarah.

“Kami meminta perbankan syariah untuk dapat meningkatkan jumlah jaringan bukan hanya kantor cabang atau langsung dibuat syariah tapi juga jaringan yang ada di induknya, dimana 11 kantor dari 10 kantor perbankan syariah terbesar ada di Indonesia. Ini meningkatkan peran jaringan kantor ke depan,” paparnya.

“Saya harap bila anak usaha dalam holding tersebut merupakan konsen dari induknya kalau tidak performe kurang bagus, memperbaiki anaknya juga,” tutup Edy. (*)

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Mixed Outlook for Indonesian Retail

oxfordbusinessgroup.com--Expectations that rising incomes among Indonesia's burgeoning middle class will generate a retail boom were boosted by rosy end-of-year sales results. However, the upward trend is threatened by both global and domestic trends.

A Bank Indonesia (BI) survey published in January revealed that retail sales surged 14% year-on-year (y-o-y) in November, the fastest growth since July. The survey of 650 retailers in 10 major cities also predicted that December sales would increase 18.3% over the same month in 2012.

This result was in line with a steady climb in the central bank’s consumer confidence index over the last quarter of the 2013, which reached 116.5 at the end of December, up from 107.1 at the beginning of October.

“Consumers are more confident about economic conditions over the next six months, citing positive sentiment about their income, job availability and business activities,” the central bank said in November.

Recent financial statements suggest that retailers were doing well in the second half of last year, with third-quarter results from eight companies showing revenue growth of between 9% and 27%.

Singapore-based Lippo Malls Indonesia Retail Trust said its gross revenues increased to nearly $30m in the third quarter of 2013, up 13.6% from the same period in 2012, attributing the increase to "contributions from six new malls acquired in 4Q 2012 and the positive rental reversions within the existing malls ".

Demographic trends support growth

Such expansion underlines confidence in the market, underpinned by demographics. Boston Consulting Group (BCG) is projecting the number of middle class and affluent consumers (MACs) – which currently stands at 74m — may reach 141m people in 2020.

“These consumers are the sweet spot of this market,” said Vaishali Rastogi, a BCG partner and coauthor of the report, published last year. “They’re beginning to move beyond basic necessities to products that offer greater convenience and comfort, such as home durables, white goods, cars and financial services.”

However, despite the expectations and planned opening of several major malls over the next five years, not all observers see 2014 as an easy ride for retail.

“For 2014, in light of the incoming election and probable rupiah instability, it is quite likely that customer loyalty will go out the window in certain areas of the market as consumers become more concerned with the pricing of goods and value for money,” Paulus Ong, the president-director of Pongs Home Store Indonesia, told OBG.

Growth on the outskirts

Faced with an uncertain outlook in Jakarta, international and domestic retail firms are turning to the relatively untapped market of smaller cities and the capital's outskirts, according to Fernando Repi, spokesperson for department store operator Matahari Putra Prima. “Modern retail is still lacking in second-tier cities when in fact, people there have experienced economic and, therefore, income upgrades,” he told the local media in December.

It is a misperception that Indonesia's economic growth centers around Jakarta, wrote the McKinsey Global Institute in a December 2012 report. "Many other cities are growing more rapidly, albeit from a lower base. [...] These include Medan, Bandung and Surabaya as well as parts of Greater Jakarta".

The sentiment was echoed by the findings of BCG.

"Indonesia currently has 12 cities with more than 1m MACs. By 2020, however, this number will roughly double, to 22 cities with more than 1m MACs, including emerging cities such as Palembang, Makassar, Batam, Semarang, Pekanbaru and Padang.”

The lack of international retail giants in the country can be explained by the geographic fragmentation, according to research released last December by Deloitte. "Middle class consumers in Indonesia still show a strong preference for shopping at convenient locations near their homes, meaning that convenience stores and mini-markets continue to be the main destination for many."

The fact that retailers are identifying new sales strategies rather than losing confidence in the country reflects long-term optimism based on the country’s fundamentals. This suggests that while macroeconomic trends will buffet the sector in 2014, its future outlook beyond this year remains positive.

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Islamic Finance Assets to Reach USD2.1trn by end-2014

ZAWYA.COM--JEDDAH - Islamic finance industry will continue to grow driven by both demand and supply factors, and further facilitated by government agencies and financial regulators, KFH -Research, a subsidiary of Kuwait Finance House Group KFH -Group, said in a report.

The report, which focuses on 2014 Islamic finance expectations, forecasts that Islamic finance industry will continue to draw tremendous double digit growth rates across all sectors. 

Moreover, the report forecasts that the total Islamic finance assets to reach $2.1 trillion by the end of 2014, and the total asset of Islamic banking sector to reach $1.6 trillion.

In 2014, gross contributions of the global takaful industry are expected to surpass the $20bln mark. The growth opportunities for the global takaful industry in 2014 and beyond are optimistic on the back of several economic, financial and socio-demographic trends. A number of regulatory developments and government policies that have been put in place are expected to spearhead the growth of the takaful and insurance sectors in various markets during 2014. 

Overall, Islamic finance in 2014, is set to experience another increased momentum, particularly in the sukuk market with the issuances by few sovereigns e.g. UK and Luxembourg.

The Islamic banking sector is likely to witness a surge in demand underpinned by greater economic participation of Muslim nations as well as driven by stronger demand from the population towards Shari'a compliant or ethical financing solutions. Instrumental roles played by multilateral organisations and regulatory bodies are expected to further benefit the Islamic banking and takaful industry especially to low-to-medium income customers as financial inclusion objective has been strongly emphasised moving forward.

Thriving interest of key global/regional financial centres in developing Islamic finance, for instance London, Hong Kong, Singapore Luxembourg, further adds weight to the strong prospects of Islamic finance as markets globally look for alternative sources of funding and investment avenues.

The Islamic finance industry's assets are estimated to have amounted to $1.8 trillion as at end-2013, recording an over 16% y-o-y growth. Leading the growth has been the Islamic banking sector which represented an almost 80% share of the global Islamic banking assets in 2013. Among the largest global Islamic banking jurisdictions (excluding Iran) in 2013 are Saudi Arabia which captured 18% of global Islamic banking assets, followed by Malaysia (13%), UAE (7%), Kuwait (6%), and Qatar (4%). In 2014, the Islamic banking sector's assets are expected to reach $1.6 trillion. Advanced Islamic banking markets in the GCC and Asian regions are expected to evolve in greater sophistication in terms of products offerings, as well as from the aspect of regulatory advancement by the financial regulators. On the demand side, Shariah compliant investments and financing products have been dominantly fuelled by a promising economic outlook in the GCC and abundant liquidity flows.

The industry will continue to grow driven by both demand and supply factors, and further facilitated by government agencies and financial regulators.

In a newly released report "Islamic Finance Outlook 2014" by Kuwait Finance House Research Limited (KFHR), the Islamic finance industry is forecasted to continue to chart tremendous double digit growth rates across all sectors, with total industry assets estimated to reach approximately $2.1 trillion as at end-2014. Over the next few years, KFHR foresee the industry's focus in four key spectrums that will take the industry to greater heights:

1) Strengthening of financial stability and enhancement in inter-linkages between Islamic finance jurisdictions

2) Tapping into potential real sector economic activities to expand market share for e.g. by supporting the financing needs of the infrastructural development programmes in GCC and Malaysia

3) Expanding the range of product offerings to appeal a wider customer base e.g. Islamic wealth management products for high net-worth individuals (HNWs) and Islamic trade financing solutions for corporates 

4) Enhancing talent, education and research development to improve on the industry's efficiency and innovative capabilities.

In 2013, the sukuk market, managed to once again breach the $100bln mark in terms of new sukuk issuances to close the year with a total of $119.7bln. However the amount fell 8.77% short of the recorded amount in year 2012. Malaysia once again led the 2013 new sukuk with a 69% share of total issuances, followed by Saudi Arabia at 12%, United Arab Emirates (6%), Indonesia (5%) and Turkey (3%).

The global sukuk market is all set to continue its upward trajectory in 2014 as a number of high profile debut sovereign issuances are expected to take place this year. The sovereign sukuk sector will continue to stoke stakeholders' interest in 2014 as sovereigns including the United Kingdom, Ireland, South Africa, Tunisia, Mauritania, Senegal, Luxembourg and Oman are expected to debut issuances in 2014.

Expectations are also build up on a debut sukuk issuance from the multilateral Asian Development Bank (ADB). Meanwhile, the Islamic Development Bank (IDB) has already announced its intention to issue a $10bln sukuk in the Dubai NASDAQ Exchange in 2014 with plans to continue similar listings on an annual basis.

The Islamic funds segment also registered an 8.4% year-to-date increase in 2013 with total assets under management (AuM) valued at $72.5bln as at 20-Dec-13. A total of 79 new Islamic funds were launched in 2013 with most of the newly launched Islamic funds domiciled Malaysia and Luxembourg.

In 2014, the global Islamic funds industry should benefit from steady global economic recovery which will bolster investor confidence and performance of underlying invested assets. Much of the anticipated recovery will come from the advanced economies, while the growth trajectory of emerging countries will remain stable. In this light, greater investor focus will be placed on policy decisions and reforms in individual emerging economies.

The global takaful industry has experienced strong double-digit growth rates in recent years with worldwide gross takaful contributions estimated to have amounted to almost $19.87bln as at end-2013, reflecting a more than 15% y-o-y growth while recording an impressive 18.1% CAGR during the last 5 years (2007-2012). Saudi Arabia and Malaysia continue to drive the global takaful industry being the two largest takaful markets in terms of total gross contributions.

© The Saudi Gazette 2014

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Morocco Weighs Pursuing $1.7 Trillion Industry: Islamic Finance

BLOOMBERG.COM--Morocco plans this year to allow Islamic banking for the first time as the only North African nation with an investment-grade rating at Standard & Poor’s seeks to tap the $1.7 trillion industry.

The country’s cabinet approved a draft Islamic finance bill on Jan. 16, according to Abdeslam Ballaji, a lawmaker who worked on the proposed legislation and a member of the ruling party. The draft, which also regulates Islamic banks and allows for sukuk sales, is pending parliamentary approval and may be enacted within five months, he said last week.

Demand for financing that complies with Islam’s ban on interest is accelerating worldwide, with assets expected to climb to $3.4 trillion by 2018 from about $1.7 trillion last year, according to Ernst & Young LLP. More than 95 percent of Morocco’s population of 34 million back the introduction of banking that adheres to Shariah, according to Said Amaghdir, secretary general of the Moroccan Association of Participative Financiers, an Islamic finance business association.

“Given the choice, Muslim retail customers on the street generally prefer to bank Islamically, even if there are higher costs,” Khalid Howladar, a senior-credit officer at Moody’s Investors Service, said by phone from Dubai yesterday. “Islamic banks historically have tended to grow at twice the rate of conventional banks in Muslim countries, and as such they tend to take a market share from the conventional system.”

Billions Required

The Moroccan Association of Participative Financiers estimates total investment in Shariah-compliant products to reach $7 billion by 2018, provided the law comes into effect by the middle of the year, Amaghdir said by phone yesterday.

“Plans to expand solar and wind energy, tourism and industrial parks will require billions, and the Gulf Cooperation Council will be keener on putting money here when the law is enacted,” he said. The six-nation GCC, which includes Saudi Arabia and the United Arab Emirates, is predominantly Muslim.

Banks may also sell short-term sukuk to fund Islamic subsidiaries, Amaghdir said.

Morocco’s central bank allowed lenders and insurers to sell three Islamic products in 2007 to help develop the nation’s financial industry. The country is “almost” ready to sell its first sukuk, Prime Minister Abdelilah Benkirane said in October.

Regional Competition

“We can’t afford to drag our feet any longer because regional competition for the Islamic finance pool is heating up, not just from our Muslim neighbors,” Ballaji, the lawmaker, said in a phone interview Jan. 20.

The U.K. plans to sell debut Islamic bonds this year as Prime Minister David Cameron seeks to revive a blueprint that’s been stalled since at least 2007. The Hong Kong government this month gazetted legislation to allow the sale of Shariah-compliant notes.

Moroccans may be misinformed about the benefits of Islamic banking, Ismail Douiri, co-chief executive officer of Casablanca-based Attijariwafa Bank, said in May.

“Islamic finance is often portrayed as low-cost type of finance,” Douiri said. “Islamic finance is not charity. One should not expect financing costs to decline.”

Shariah-compliant products are typically more expensive when they’re first introduced, Howladar of Moody’s said.

“Islamic products tend to come at a premium, because the creation of the products requires substantive investment,” he said. “Orthodox customers are willing to pay more to bank Islamically. Eventually, in the face of competition, those costs fall and are comparable to conventional products.”

To contact the reporters on this story: Dana El Baltaji in Dubai at delbaltaji@bloomberg.net; Souhail Karam in Morocco at skaram5@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net

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Arah dan Proyeksi Perbankan Syariah 2014

TRIBUNNEWS.COM--GELIAT ekonomi Islam atau ekonomi syariah di Indonesia menunjukkan pertumbuhan dan perkembangan yang semakin signifikan di penghujung 2013. Menariknya, ini terjadi di tengah terpaan krisis dan perlambatan ekonomi dunia yang terjadi di Amerika dan Eropa. 

Berdasarkan Statistik Perbankan Syariah per Agustus 2013, terdapat 11 Bank Umum Syariah(BUS), 24 Unit Usaha Syariah(UUS), dan 160 Bank Pembiayaan Rakyat Syariah (BPRS). Dari jumlah tersebut, perbankan Syariah berhasil meraup aset sebesar Rp 228,9 T.

Bank Syariah juga berhasil mengumpulkan dana masyarakat sebesar Rp 173,6 T dan menyalurkan pembiayaan sebesar Rp 178,8 T. Dari total pembiayaan tersebut, sebesar Rp 107,2 T (60 persen) pembiayaan disalurkan untuk Usaha Kecil dan Menengah (UKM). Jumlah rekening yang ada di Bank Syariah juga meningkat 28 persen dari 12,5 juta menjadi 16 juta rekening.

Berdasarkan kajian yang dilakukan oleh peneliti BI Rifki Ismal (2013) meliris bahwa diproyeksikan pada ujung tahun 2014, total asset perbankan Syariah diproyeksikan berada pada kisaran Rp255,2 T (pesimis), Rp 283,6 T (moderat) dan maksimal Rp 312 triliun (optimis) dengan perkiraan total DPK berada pada kisaran Rp 209, 6 T (pesimis), Rp 228 T (moderat) dan maksimal Rp 239, 5 T (optimis). Dari tiga perkiraan tersebut, kue pasar perbankan Syariah diperkirakan antara 5,25%-6,25%.

Namun apabila dibandingkan dengan bank Syariah Malaysia kita masih jauh ketinggalan karena total aset perbankan Syariah Indonesia yang sebesar Rp 228,9 triliun masih jauh dari aset perbankan Syariah Malaysia yang sebesar ± Rp14000 Triliun. Apabila melihat jumlah penduduk Malaysia yang hanya ± 29 juta dengan setengahnya adalah Muslim akan tetapi mampu memaksimalkan perbankan Syariah sementara di tanah air jumlah penduduk ± 237 juta jiwa dengan hamper 80 persen adalah Muslim namun belum mampu mengejar Malaysia dalam industri keuangan syariah (Safri Haliding, 2013).

Tantangan 

Proyeksi perbankan syariah yang ditetapkan BI dapat tercapai dengan didukung oleh semua pihak dan mampu mengatasi berbagai tantangan yang masih menjadi tugas berat bagi para pelaku di industri perbankan Syariah. Berdasarkan kesimpulan yang ditetapkan oleh akademisi, pelaku, pemerhati dan pegiat ekonomi Islam, secara umum tantangan perbankan Syariah pertama, meningkatkan permodalan untuk meningkatkan kapasitas bisnis dan ekspansif, rasio kecukupan modal/CAR (Capital Adequacy Ratio) perbankan Syariah utamanya BUS yang saat ini mengalami penurunan dari 15,3% menjadi 14,7%. 

Kedua, meningkatkan inovasi produk yang sesuai dengan kebutuhan masyarakat dengan tetap berdasarkan pada kepatutan Syariah atau Shariah compliance agar mampu bersaing dengan inovasi produk perbankan konvensional. Ketiga, meningkatkan kualitas sumber daya insani-SDM yang paham dengan based practice Islamic banking dan figh muamalah. Keempat, meningkatkan edukasi dan sosialisasi ke semua lapisan masyarakat agar semakin kuat dukungan masyarakat dan mencapai target Indonesia pusat ekonomi Islam dunia sebagaimana pidato SBY dalam meresmikan Gerakan Ekonomi Syariah(GRES) pada 17 Nov. 2013 lalu. Kelima, membangun sinergi, kerjasama dan koordinasi pengawasan perbankan Syariah pada era OJK. Setelah tugas BI dilimpahkan ke OJK maka integrasi sektor keuangan mendesak dilakukan oleh OJK, BI, Badan Kebijakan Fiskal dan Kementerian Keuangan serta LPS.

Arah Optimisme

Pertumbuhan perbankan syariah di Indonesia memiliki peluang dan optimisme yang cerah, dan sangat menjanjikan. Saat ini pertumbuhan ekonomi nasional masih tinggi dibandingkan dengan kondisi negara lain yang mencapai 6.5% kondisi ini akan mendukung pertumbuhan perbankan Syariah meskipun kondisi terakhir terjadi penurunan nilai tukar rupiah yang tajam namun hal itu sifatnya temporary oleh kondisi ekonomi dunia dan jatuh tempo utang pemerintah dan swasta. 

Berdasarkan kajian tim ekonomi nasional disimpulkan Indonesia merupakan negara dengan pertumbuhan ekonomi paling stabil di dunia dalam 20 triwulan terakhir dan dalam delapan tahun terakhir pertumbuhan ekonomi Indonesia sekitar 6,1–6,2% per tahun, dengan proyeksi 2014 tumbuh berkisar 6,3–6,7%. Indonesia tercatat sebagai negara dengan pertumbuhan tertinggi ketiga di dunia setelah China dan India.

Di sisi lain yang mendukung optimisme perbankan syariah adalah meningkatnya kelas ekonomi menengah yang ditandai dengan meningkatnya dan tingginnya komsumsi masyarakat dan investasi dalam negeri yang menjadi penopang utama roda ekonomi nasional yang berkontribusi 88 % dari total produk domestic Bruto (PDB), ini adalah peluang besar untuk mengarahkan ke komsumsi syariah.

Dengan geliat perkembangan ekonomi syariah yang memukau, arah pengembangan dan peningkatan kualitas perbankan syariah ke depan diharapkan fokus pada terobosan pelayanan dan pembiayaan yang sinergi lintas sektoral seperti konstruksi, listrik dan gas, pertanian dan industri kreatif, sektor produktif untuk start up business dan sektor Usaha Kecil dan Menengah (UMKM) serta proyek-proyek skala prioritas dalam inisiatif MP3EI (Master plan percepatan dan perluasan pembangunan ekonomi Indonesia dan mengejar implementasi komitmen pemerintah terhadap pengalihan mayoritas dana haji kepada perbankan syariah, pendirian Bank BUMN Syariah dan pendirian bank wakaf. Maka dengan sendirinya Indonesia menuju pusat Ekonomi Syariah Dunia benar-benar tercapai.(*)

Oleh;

Safri Haliding MSc

Anggota Forum Dosen Majelis Tribun Timur dan Sekum Ikatan Ahli Ekonomi Islam (IAEI) Komisariat Unismuh Makassar

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Dubai likely to be next leader in Islamic economy evolution: Thomson Reuters

GULFNEWS.COM--Dubai: While there are various major centres of Islamic economy — all in Asia — Dubai could emerge as the leader in the next phase of the evolution of Sharia compliant sectors, including finance and insurance, Halal food and lifestyle, and travel, according to a summary of Thomson Reuters’ first State of the Global Islamic Economy Report 2013, which will be released on Monday at the first Global Islamic Economy 

Summit in the emirate.

Malaysia, considered to be the strongest centre of an all-round Islamic economy sector, may have reached a point of “stagnation” and so, Dubai, with a clear vision of establishing itself as the centre of a global Islamic economy, looks likely to be the one with the biggest potential, says the Report summary. The other major centres are Saudi Arabia, Turkey and Indonesia.

On October 5, His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, unveiled a strategic plan for “capital of Islamic economy” for the emirate. The plan includes seven key pillars and 46 strategic initiatives to be implemented within three years.

Long-term benefits

Sami Al Qamzi, Director General of Dubai’s Department of Economic Development and vice chairman of the Supreme Committee of the Dubai Islamic Economy, told Gulf News that the aim of Shaikh Mohammad’s initiative to make Dubai a global capital for the Islamic economy is to bring long-term benefits to the economy as a whole.

“We expect it to gather momentum over time,” Al Qamzi said. “Dubai, being a pioneer in many forward looking initiatives, is looking to capitalise on its inherent strengths to develop a new economic paradigm that would not only add value to our economy but also potentially offer solutions to global economic issues.”

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Global Islamic economy

Globally, opportunities for Islamic capital lie not just in furthering Islamic Finance, which is now well established across geographies, but also, identifying other sectors of the economy, including Halal food and lifestyle and Muslim travel, the potential of which could make the Sharia compliant economic system a competing alternative, according to the report summary.

With Muslim consumer expenditure globally on food and lifestyle sectors around $1.62 trillion (Dh5.9 trillion) in 2012 and expected to reach $2.47 trillion by 2018, the report sees that as a potential core market for the Halal food and lifestyle sectors.

Diversified economy

And Dubai emerging as a hub in Halal and lifestyle as well as Muslim tourism sectors is highly likely because of the way it has diversified its economy.

In two years Dubai could make a trusted name for itself in the Halal industry, according to Jasem Mahadik, project Manager at Al Maali Trading and Consultancy, an Islamic Finance solution provider.

Dubai’s development of a strong network of logistics facilities and services for the production of Halal products could make the emirate a global hub for this industry, he said.

“In a very short time Dubai will establish a centre for Islamic economy standard and certification which will make the emirate a reference for the issuance of global governance standards,” Mahadik added.

The major sectors of Islamic economy include Islamic finance and Insurance, Halal food, and Islamic values influenced travel, clothing, pharmaceutical/cosmetics and media recreation.

“While these Islamic economy sectors are potentially large in size, the synergistic opportunities for growth and investments are larger and could even be a necessity in true realisation of their individual visions,” the report’s author Sayd Farook, Global Head Islamic Capital Markets at Thomson Reuters said in the statement released today.

Source: http://gulfnews.com/business/markets/dubai-likely-to-be-next-leader-in-islamic-economy-evolution-thomson-reuters-1.1259266

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DFSA Signs 26 Agreements With EU Regulators

Continuous collaboration with international regulators has been at the forefront of the Dubai Financial Services Authority’s (DFSA’s) engagement objective this year, and as such, the DFSA has entered into 26 supervisory co-operation agreements with European Union (EU) and European Economic Area (EEA) securities regulators. Under these agreements, each regulator agrees to help each other supervise fund managers operating across borders, between the Dubai International Financial Centre (DIFC) and Europe.

 

The DFSA negotiated the agreements with the European Securities and Markets Authority (ESMA). The DFSA’s Chief Executive Mr Ian Johnston signed the Memoranda of Understanding (MoUs) with 26 EU regulators last month. The EU signatories to these agreements are: France, UK, Netherlands, Ireland, Portugal, Spain, Italy, Luxembourg, Cyprus, Sweden, Finland, Denmark, Norway, Iceland, Liechtenstein, Hungary, Malta, Lithuania, Greece, Belgium, Bulgaria, Poland, Estonia, Latvia, Czech Republic and Romania.

 

The agreements under the MoUs allow fund managers in the DIFC to manage and market Alternative Investment Funds (AIFs) to professional investors in the EEA under the rules of the Alternative Investment Fund Managers Directive (AIFMD). AIFs include hedge funds, private equity funds and real estate funds. Managing and marketing such funds into Europe will allow DIFC-based fund managers to access a greater pool of investors. It is hoped that with a strong distribution network and a sustainable distribution model, the MoUs will prove beneficial for the industry in the DIFC.

 

Mr Ian Johnston, Chief Executive of the DFSA said: “The DFSA’s efforts to improve cross-border opportunities will further facilitate investment flows and will benefit investors and the funds industry. In addition, it reflects the DFSA’s commitment to enhance the economy of the UAE and Dubai, furthering Dubai’s position as a prominent financial centre.” 

 

The DFSA already has in place bi-lateral agreements with 13 of its European counterparts and enjoys strong and close relationships with them ensuring that fund managers are well supervised in the DIFC and in Europe.

Source: http://www.dfsa.ae/WhatsNew/DispForm.aspx?ID=258

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Loan Growth, Profitability and Risk Appetite on the Rise

GULFNEWS.COM--Dubai: Loan growth in the UAE’s banking sector is picking up pace helped by the positive economic growth, improving consumer confidence and declining risk aversion and non-performing loans.

According to the The Banker’s “Top 1000 World Banks 2013” report, the UAE banking sector’s net assets have risen more than ten-fold from $49 billion (Dh180 billion) in 1995 to $509 billion in mid-2013. The UAE banking sector directly employs more than 34,400 staff as of mid-2013, more than doubling since 2000.

Financial results of the UAE banks for the first nine months of 2013 show, most banks stopped the sharp deleveraging that followed the financial crisis and the loan growth has started picking up momentum.

Large banks have reported high single digit growth in the first nine months of the year. While Emirates NBD’s customer loans as at September 30, 2013 (including Islamic financing) amounted to Dh234.4 billion, an increase of 7 per cent from the end of 2012 National Bank of Abu Dhabi’s (NBAD) loans increased 5.2 per cent to Dh182.5 billion. NBAD’s total assets in January-September period increased 14.8 per cent to Dh345.1 billion while loans increased 10.9 per cent in the same period.

“A difficult period of balance sheet repair has been completed. Banks went through a period of deleveraging and provisioning. With stronger balance sheet and sufficient liquidity in the system, the UAE’s banks are ready to increase lending,” said George T Abed, senior counsellor and director for Africa and Middle East of Institute of International Finance (IIF).

Confidence

A number of smaller banks too have reported double digit loan growth on an annualised basis. While First Gulf Bank’s loans and advances grew at a year-to-date growth of 10.7 per cent for the first 9 months of the year, Commercial Bank of Dubai reported a loan growth of 11.9 per cent.

“The banking industry is safe and secure in the UAE and the overall confidence in the UAE banks is justifiably strong,” the Governor of the UAE Central Bank, Sultan Nasser Al Suwaidi, said earlier this month.

A decline in the rate of growth of non-performing loans combined with improved liquidity and surge in lending has helped most UAE banks to improve their profitability this year.

“The banks here received strong sovereign support, which helped them to remain highly liquid during the crisis years. While capital levels remained exceptionally high during the period, improving economic activity has helped the asset quality,” said Timucin Engin, Associate Director, Ratings Analytical Financial Institutions at Standard & Poor’s.

Credit rating agency Moody’s Investors Service recently upgraded the outlook for the UAE’s banking sector to stable from negative. The outlook change reflects the continued improvements in the operating environment, as well as the ongoing recovery of the local real-estate market, which Moody’s believes will lead to a decline in non-performing loan levels and an increase in profitability over the next 12 to 18 months.

Restructurings

Moody’s expects declines in the problem loans to gross loans ratio to 8 to 9 per cent range over the outlook period, from a 10.5 per cent average at year-end 2012. While the ongoing real estate market recovery and more cautious underwriting during the downturn period are expected to lead to lower new problem loan formation. Asset quality metrics are also be supported by a reduction in the stock of problem loans due to the increasing volume of settlements, recoveries and commercial restructurings.

Rating agencies expect that the increase in net income will provide UAE banks with the internal capital generation capacity necessary to support asset growth over the outlook period, whilst maintaining their strong Tier 1 capital levels, which stood at around 16 per cent as of June 2013.

“In addition to the shock-absorption capacity provided by robust capital metrics, we also anticipate that the banking system will maintain its strong funding and liquidity profile. The cash-rich federal government and stronger Abu Dhabi-based government related entities will continue to remain a key and stable source of deposits, limiting the system’s dependence on confidence-sensitive market funding.” said Khalid Howladar Vice President — Senior Credit Officer at Moody’s

Despite the upgraded outlook, Moody’s warns that exposures to large corporate restructurings and government-related issuers (GRIs) will continue to pose asset-quality risks, particularly for Dubai-based banks.

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