Saturday, August 22, 2009
Monday, August 17, 2009
Global issuance of sukuk fell 56 percent year-on-year to $14.9 billion in 2008, according to Standard & Poor's, as the market was caught up in the global liquidity freeze but also due to a debate on whether the majority of Islamic bonds, or sukuk, were sharia-compliant.
Prominent scholar Sheikh Muhammad Tariq Usmani said in late 2007 that most Islamic bonds were not compliant with sharia as their guarantee to pay out bondholders at maturity contradicts the principle of sharing risk and returns.
Peter Hodgins, a lawyer specialising in Islamic insurance at law firm Clyde & Co said Islamic insurance, or takaful, products could help reconcile the need for sukuk to comply with these requirements and investors' need to insure against risks.
"Takaful can be a solution to help out the sukuk market."
Takaful firms could provide insurance for sukuk investors that takes over notional annual payments to bondholders if they fall below an agreed amount, he said, adding that there were discussions in the industry on such a product.
In Islamic insurance, customers contribute to a pool of funds which is used to indemnify participants who suffer a loss, while in conventional insurance the insurer takes on the risk for a premium.
"As the sukuk market evolves, there could be room for such a product," said Nick Frei, chief executive of Bahrain-based Islamic insurer t'azur.
But he said pricing these products could be a challenge for takaful companies as the risk of sukuk was difficult to assess.-- Reuters
The contract has been awarded through the Tender Board, which is recognised for its highly-transparent policy in managing tenders.
"Eskan Bank's management is pleased that Takaful International has met all the terms and conditions of the tender," said bank general manager Sabah K Almoayyed
"This agreement is a confirmation of the bank's dedication to care for our professional staff, who are an essential element for the success of any financial institutions, as we are always keen to provide convenience and safety for them."
She said this insurance coverage is an important and a necessary incentive to the bank's staff to improve their morale and overall job satisfaction.
"We are glad to co-operate with Eskan Bank, through providing a comprehensive health insurance coverage for their employees and their families, with no doubt this coverage provides security, comfort and reassurance," said Takaful International chief executive officer Younis Jamal Al Sayed.
"Such coverages are considered an urgent requirement for all institutions to ensure their success and to keep pace with growth in light of the changes in the professional sector."
Mr Al Sayed added that the company continues to develop its insurance services, products and health insurance policies.
It seeks to attract more hospitals and clinics in the Middle East and include them within the network of their own health care providers.-- Gulf Daily News
A number of 24m new shares are offered through this rights issue representing a 240% increase in SABB Takaful's shares to 34m. Shares are being offered at SR12.5 per share. The rights issue offering period will continue for ten working days including Wednesday 26 August 2009.
Dr Yazid AbdulRahman Al Ohaly, Chairman of SABB Takaful said:
Shareholders voted at the Extraordinary General Meeting, held at The Saudi British Bank headquarters in Riyadh on 8 August 2009 to increase the company's capital through a rights issue.
'This is the first rights issue held in the Kingdom for an insurance company and the proceeds will be used to finance the future plans of the company. We are pleased to announce the start of the subscription period.'
The offering is open to all SABB Takaful registered shareholders as of the close of trading on 8 August 2009. 12 shares is allocated for every 5 shares held by shareholders on the eligibility date.
During the offering period, eligible shareholders may submit their applications to subscribe for rights issue shares either through a branch of the receiving banks or tele-banking services section or automated teller machines (ATMs) or the internet banking service of any of the receiving banks providing such services.
Receiving banks for the rights issue are The Saudi British Bank (SABB), Al Rajhi Bank, The National Commercial Bank (NCB or otherwise known as Al Ahli Bank), Bank Al Jazira, and Samba Bank.
Wednesday, August 5, 2009
In a statement here today, the company said Shamsiah is currently serving as at the 'Fiqh' and 'Usul' Islamic Academic Studies Department of University Malaya while Muhammad Naim is an Assistant Professor of law studies at the International Islamic University (IIU).
The Takaful Ikhlas Syariah Committee's role is to assist the board and top management to provide counsel and guidance in ensuring the company operates and manages its business in accordance with Syariah principles.
Samer Mohammed Kanan was also elected as the managing director, and he will manage the company’s administrative staff.
“The change in the board of directors aims at developing the company and supporting its continuous progress and expansion plans,” said Samer Kanan.
Methaq Takaful Insurance Company is a registered and licensed General Takaful company in the UAE, with a capital of Dh150 million ($40.8 million).
The company offers individuals and corporations a complete range of high quality, flexible, integrated, Shariah-compliant insurance products and services.
Established on March 11, 2008, Methaq Takaful Company was listed on Abu Dhabi Securities Exchange on May 11, 2008 and its activities are clearly segregated between Takaful Fund, which belongs to its policyholders, and Methaq Takaful Operation, which belongs to the shareholders and from which all claims are reimbursed.
--TradeArabia News Service