Kazakhstan Islamic bank eyes regional expansion

Kazakhstan's Al Hilal Islamic Bank, the only Sharia-compliant lender in the country, may expand into neighbouring countries as legislative efforts to develop Islamic finance gather pace across the region, its chief executive said.

Fresh Islamic finance legislation is being developed in Azerbaijan, Kyrgyzstan and Tajikistan, creating a more welcoming framework for the industry in countries which have secular regulatory regimes.

Legislation is also being redrawn in Kazakhstan, the first former Soviet country to introduce Islamic finance rules in 2009; the initial set of rules failed to spur much activity.

Almaty-based Al Hilal, whose parent is wholly owned by the Abu Dhabi government, is considering increasing its geographical presence as part of its 2015 business plan, chief executive Prasad Abraham said on the sidelines of an industry conference.

"Our medium-term strategy is to test the effectiveness of the Kazakhstan model, and then use that as a base for further expansion to other regions of the CIS (Commonwealth of Independent States) as appropriate.

"An important precondition for any expansion is the existence of a proper legislative framework for Islamic finance in the respective countries."

A draft amendment, currently awaiting discussion in Kazakhstan's parliament, would provide the bank with a clearer framework that could translate into better commercial opportunities, Abraham said.

This could spur new entrants into the sector, such as Zaman Bank, a local bank which is working to convert itself into the country's second Islamic bank. It has not given a time frame for that plan.

In addition to Zaman, the regulator has now received an application to operate another fully-fledged Islamic bank, Abraham said without elaborating.

Launched in 2010, Al Hilal is on target to see asset growth of 70 per cent this year, with similar growth expected for 2015, he said, adding this was partly because growth was from a low base; it is expected to slow as the bank gains size. The bank posted a 46pc increase in assets in 2013, reaching 16.7 billion tenge ($92 million), financial statements showed. Its business is focused on government and large corporate clients, and after conducting a feasibility study earlier this year it has decided to wait for legal issues to be resolved before offering retail banking services. Islamic banks in Kazakhstan are categorised on a par with other commercial banks, known as Tier 2 banks, but current law does not extend to them all the tax privileges that conventional banks have.

EiD Greetings from AlHuda Centre of Islamic Banking & Economics

Islamic Banking Sector in South Africa shows healthy growth

ABOUT half of Africa’s population is Muslim and businesses are gearing up to meet the needs of this growing market with Islamic finance and banking products.

Just less than a decade since the market was created, the local Islamic banking sector is estimated to be worth R80.6-billion in terms of assets under management.

On the African continent, the market’s assets are estimated to be more than $1.6-trillion (about R17-trillion) and are expected to surge to more than $5-trillion by 2020. These numbers may seem a stretch, but Africa is home to more than 500 million Muslims — about a quarter of the world’s Muslim population.

The growth of Islamic banking has not gone unnoticed by the National Treasury. Earlier this year during the budget speech, former finance minister Pravin Gordhan revealed that South Africa will launch Islamic bonds — better known as sukuk — before the end of the year. Sukuk are normally based on property or infrastructure and are designed to pay a fixed profit rate rather than a coupon.

Absa, FNB, Al Baraka Bank and HBZ Bank offer Islamic commercial and corporate banking products in South Africa.

Standard Bank has Islamic banking offerings in other countries on the continent, and Nedbank is rumoured to be assessing the possibility of dipping its toes into the market.

Islamic banks do not require their clients to be Muslims. “We are not pushing a religion here. We are pushing a [financial] product that has certain requirements,” said the head of Islamic banking at Absa, Uwaiz Jassat.

Those requirements have to be compliant with sharia law, which prohibits the taking and receiving of interest and also rules out certain other practices in conventional banking.

For example, when Islamic banking clients deposit money in their savings accounts, the lender will then trade the money to earn a return on it and those returns are shared with the customers.

Jassat said this method sometimes beat the return on a conventional interest-bearing savings account.

Last year, the returns for Absa Islamic banking saving accounts were 2% higher than for conventional ones.

So it is not surprising that more people are opting to switch to Islamic banking. About 10% of Absa’s Islamic bank customers are non-Muslim. Although Absa’s Islamic banking division is relatively small, its contributions are quite significant to the parent company’s bottom line, according to Jassat.

Al Baraka, the first stand-alone Islamic bank to operate in South Africa with a full bouquet of financial products, has more than 40 000 customers.

Al Baraka, whose parent company is based in Bahrain, has eight branches nationwide, most of them in Muslim communities. Last year, total assets grew 18.7% to nearly R4.4-billion, and advances swelled 13.1%. Al Baraka’s deposit book grew 18.6% to R619.1-million and the equity finance book increased 23.1% to R126.6-million.

Al Baraka’s CEO, Shabir Chohan, said about 30% of the Muslim population — which is estimated to be more than two million strong in South Africa — was using Islamic banking products provided by local banks.

The total Islamic banking sector in South Africa is estimated to be worth as much as R12-billion. Chohan said this meant his bank had the potential to grow eight to 10 times its current size.

Absa’s Islamic banking division is eager to introduce vehicle and home-loan products. Jassat said that once more products were introduced, “customer numbers will skyrocket”.

However, if it does not move fast, it might end up eating its rivals’ dust. FNB’s Islamic banking unit already offers these products and recently launched a term-deposit product.

The CEO of FNB’s Islamic banking unit, Amman Muhammad, attributed the success of FNB’s Islamic banking products to the fact that they were underpinned by strong values and principles that, he said, covered much more than just finance.

Much like Absa, which is controlled by Barclays, FNB has its sights set on expansion beyond South Africa’s borders.

“Africa provides a large opportunity for growth,” said Muhammad. “Muslim entrepreneurs play an important role in the African economy, so the need to provide appropriate financial services through the correct channel is paramount.”

Insurance deal signed for Eskan Bank staff

Takaful International has signed a contract with Eskan Bank to provide health insurance for the bank's employees and their families for one year.

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

SABB Takaful rights issue starts

SABB Takaful announces its rights issue started Saturday, 15 August 2009.
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:

'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.'

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.

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.

--AMEInfo

IGI Investment Bank, Pak-Qatar sign MoU

IGI Investment Bank, a part of the IGI Financial Services, recently signed a bancatakaful agreement with Pak-Qatar Family Takaful aiming to further strengthen its portfolio by adding Family (Life) Takaful Insurance to its insurance advisory services. Under this agreement, clients will be able to secure their own and their family’s future the Islamic way through a host of Shariah compliant Takafu—Islamic insurance—products offered to the bank. IGI Investment Bank will, therefore, be able to cater to all those clients who are seeking a Halal alternative to conventional insurance

--Daily Times

Etiqa bags Best Banca Takaful award

ETIQA Takaful Bhd has won the Best Banca Takaful award at the International Takaful Award 2009 held in conjunction with the Third International Takaful Summit 2009 in London recently.

Etiqa Takaful was the only Malaysian takaful company to win in the global 17-category event, it said in a statement.

Etiqa Takaful was hailed for its performance despite the economic environment and innovative yet simple products in Banca Takaful.

“Etiqa Takaful’s growth in the banca takaful business does indeed exhibit its capabilities to provide appropriate financial solutions together with its Banca partners” said Mohamed Abdullah, director of the Middle East Business Forum.

--Business Times

Takaful Malaysia Eyes Over 50 Per Cent Mart Share

Syarikat Takaful Malaysia Bhd aims to capture more than half of the takaful industry's total asset market share within the next two years amid the current economic slowdown.

Group managing director, Datuk Mohamad Hassan Kamil, said the industry's total assets amounted to between RM11 billion and RM12 billion while the company's share currently was RM4.05 billion.

"We will grow slightly above the current takaful market rate, which is between 20 and 25 percent per annum," he told a media briefing after signing an agreement with Standard Financial Planner Sdn Bhd (SFP) here Wednesday.

SFP, which was set up in 1999, is one of only ten licensed financial advisors in Malaysia.

It is a member of the Australian-based Professional Investment Group of Companies that operates across seven countries.

Hassan said under the agreement, SFP would market Takaful Malaysia's products through its nationwide network of more than 300 representatives, of which 75 percent were licensed financial advisors with Bank Negara Malaysia.

He said the addition of SFP to its existing portfolio of distribution channels would boost the company's revenue by 10 percent.

"This will enhance the penetration rate of our family and general products into the middle-upper Malaysian market as well as making them more accessible wider customer base.

"We will work closely with SFP's financial advisors to offer comprehensive insurance, investment and saving options to satisfy the holistic demand from customers," he said.

Takaful Malaysia posted a pre-tax loss of RM11.461 million for the third quarter ended March 31, 2009 compared to a pre-tax profit of RM11.07 million in the same quarter last year.

Revenue declined to RM187.667 million from RM280.678 million previously.

Hassan said Takaful Malaysia planned to undertake a rebranding exercise to reflect its fresh characteristics in conjunction with its 25th year anniversary in December.

-- BERNAMA

T'azur launches Takaful products

T’azur Company, a regional Takaful firm based in Bahrain, today announced the launch of its extensive range of family and general Takaful products.

Addressing a press conference in Bahrain, Sheikh Dr Abdul Aziz Bin Naif Al Orayer, t'azur chairman, said: “The team has created an unparalleled range of Takaful products. Be it for your possessions, your family or your business - t’azur has a high quality and good value Takaful solution. t’azur is now open for business.”

Created by Unicorn Investment Bank, t’azur was established in November 2007 with an authorised capital of $500 million to capitalise on untapped opportunities and immense growth potential across the international insurance sector.

The company will initially offer 20 products – eight in Family Takaful and 12 in General Takaful categories.

T’azur’s products cover all aspects of people’s lives, possessions and well-being. The Family Takaful range of products includes advanced savings plans combined with life insurance, enabling families to plan for their future regardless of unforeseen circumstances.

The General Takaful products address not only the insurance needs of individuals (e.g., motor or home insurance), but also the needs of the business community of Bahrain, through its broad range of Shari’a compliant corporate products.

Sheikh Dr Abdul Aziz said the company has been late to enter the market and hence was able to avoid some of the repercussions of the financial crisis. “We have been able to learn from the mistakes of others,” he said.

The region is a fast growing and dynamic insurance market and we are entering it at the right time with the right products, he said.

“We are a regional company and plan to launch our products in Saudi Arabia, Kuwait and Qatar shortly.”

Nikolaus Frei, t’azur CEO, added: “Insurance in general and our Takaful products in particular, ultimately benefit the whole community.”

Bahrain is a largely untapped insurance market and provides a great opportunity for Takaful products. While the insurance market as a whole saw a 34 per cent growth in the kingdom last year, the Takaful market grew a massive 300 per cent growth, he said.

The challenge for Takaful firms is to create awareness and attract the vast majority of uninsured people to benefit from the products on offer, he said.

T’azur’s range of Family and General Takaful products are available either directly from t’azur, or through all leading insurance intermediaries in Bahrain.

--TradeArabia News Service

Allianz Takaful to launch Islamic pensions in 2010

Allianz will launch its first Islamic annuity product next year, the head of its Takaful unit said, tapping into a growing number of clients in the Middle East keen to add to their state pensions.

It has long been hard for takaful -- or sharia-compliant -- insurers to sell such products, because of the lack of long-term Islamic bonds with which to match pension liabilities, Abdul Rahman Tolefat told Reuters on Wednesday.

The German insurer's unit had lobbied banks to issue long term debt and unnamed banks had now issued 25-year to 30-year sukuk, Tolefat said at a conference.

"This is really a promising industry, especially in the GCC (Gulf Cooperation Council) -- people are looking for private pensions because state pension are not high enough," he told Reuters on the sidelines of the conference.

Allianz was one of the first Western insurance companies to venture into takaful, in which members contribute to a pool of funds which is used to indemnify participants who suffer a loss, much in the same way as with a mutual insurer.

Allianz Takaful already has a pension product which pays out over a pre-agreed number of years, but annuities that guarantee income until death are still an untapped market.

Allianz Takaful is also lobbying for more access to short- to medium term debt and is asking the Bahraini Central Bank to earmark part of any sukuk issuance to takaful companies, who don't have the clout to compete with large banks.

Earlier this year, the Bahraini Government issued a $750 million sukuk and said last month it will issue a further $530 million of sukuk in local currency.

Takaful companies could still buy these sovereign sukuk on the secondary market but they tend to be too expensive, he told the conference delegates.

Among its projects, Allianz is also pursuing a partnership by the end of the third quarter with a network of distributors. Tolefat declined to say who they are.

--Reuters

Badr Al Islami announces first Takaful Savings & Investment Programme

Badr Al Islami has announced the launch of Badr Takaful Savings & Investment Programme, the sharia'h compliant savings and protection scheme, available for the first time to Badr Al Islami and Mashreq.

The new scheme addresses the financial needs of customers looking for sharia'h compliant long term savings or investment plans, such as child education fees planning and retirement planning, with takaful benefits. Customers have the choice to build up their savings by either contributing on a regular basis or as a lumpsum amount, which then gets invested into some of the world's best performing Sharia'h compliant funds.

The programme also provides Takaful benefits, ensuring that savings and investments goals are achieved, even in the event of loss of life of the customer. Customers can choose to protect 60% or 100% of their intention. The product is completely Sharia'h compliant and is approved by the Shariah Board, headed by Sheikh Abdalla Ben Suliman Al-Manei, Chairman of the Shariah Board of Badr Al Islami.

Mubashar Khokhar, CEO of Badr Al Islami said: "Badr Takaful Savings & Investment Programme is an innovative product, bridging the gap of sharia'h compliant solutions in the bancassurance department's product offerings. With the established foundations of Mashreq and the specialized expertise of Badr Al Islami this new scheme allows us to reach out to even more customers who are looking for the most convenient way to save for their needs in future."

In line with other products and services offered through Mashreq and Badr Islami, the scheme is both convenient and affordable. Customers can begin by contributing with a minimal amount of AED 500 per month, and can be obtain policy documents over the counter at Mashreq branches.

--zawya

Dubai Bank signs strategic alliance with SALAMA for Takaful products

Expanding its portfolio of Islamic insurance plans, Dubai Bank today announced it has entered into a strategic alliance with Islamic Arab Insurance Company (SALAMA), a leading provider of Sharia-compliant insurance solutions (Takaful).

Under the terms of the agreement, SALAMA will offer Dubai Bank customers a wide range of Sharia-compliant unit-linked funds through lumpsum investments as well as systematic investment plans.

In addition to the comprehensive protection benefits provided under the scheme, the plans will also assist the bank's customers to save for short and long-term needs such as education, retirement planning and others.

"Adding a host of Takaful plans from industry experts such as SALAMA will greatly support our customers in realising their personal goals for the long-term financial protection of their families," said Mohamed Amiri, Head of Retail Banking at Dubai Bank. "Offering a diverse range of consumer finance solutions, we seek to be an active partner, helping our customers meet their financial needs. Strategic partnerships with Sharia-compliant entities are central to our overall growth plans and value addition initiatives."

According to industry experts, the global Takaful industry has grown by 20 to 25 per cent per annum in recent years, with the Gulf consistently accounting for around a third of worldwide figures. By 2015, the global Takaful sector is expected to reach US$11 billion.

Noel D'Mello, General Manager, Family Takaful, SALAMA, said: "The current global economic conditions have heightened the need for families to plan prudently for wealth protection and accumulation. SALAMA has specialised in customising systematic investments and savings-linked Takaful plans which provide good value for money to the discerning investor. By partnering with the fast-growing Dubai Bank, we are able to provide the benefits of Sharia-compliant Takaful plans to a niche segment of the UAE population."

--arabianbusiness.com

Allianz hails changes in bank distribution

Allianz Malaysia Bhd welcomes the recent deregulation of bank distribution of insurance products but expects some short-term squeeze in margins as the industry adjusts to the new rules.

Chief executive officer Alexander Ankel said the changes recently announced by Bank Negara, specifically with regards to bank distribution, “is something that we welcome because it allows us to broaden our bank distribution capabilities.”

“Other than that, we want to be a reliable insurer to our partners and customers providing products from A to Z,” he said after the company AGM yesterday.

In April, Bank Negara announced a liberalisation package for the financial sector.

Changes for the insurance industry included the issuance of new family takaful licences with higher limits of up to 70% on foreign equity participation in insurance companies and takaful operators, and incentives for the consolidation and rationalisation of the insurance industry.

They also included the removal of restrictions on the establishment of branches and bancassurance tie-ups, and greater flexibility to employ specialist expatriates.

Ankel said the bancassurance deregulation allowed insurance companies to work with more than one bank and simultaneously allowed banks to work with more than one insurance company.

Prior to the change in regulations, the insurer had already been expanding bancassurance as a new channel of distribution, he said, pointing to Allianz’s existing partnership in general insurance with the CIMB group and in life insurance with Alliance Financial Group Bhd.

Allianz’s life insurance business through bancassurance is among the fastest growing in Malaysia, growing in double digits for the financial year ended Dec 31, 2008 and 18% to 19% in its first quarter ended March 31.

“Subsequently, it also means there will be pressure on margins, more competition and for a short period of time, opportunistic behaviour in the market which we will not participate in,” Ankel said.

“We are looking for sustainable partnerships with banks that grow over the years and we don’t just want to be a product provider and throw one product to this bank and another product to that bank; we are not going to play that game.”

On other aspects of deregulation, Allianz General Insurance Company (M) Bhd chief executive officer Ng Hang Ming said Allianz did not intend to open any new branches this year, but would continue its initiative to combine its life and general insurance branches.

Last year, branches in 10 cities in Malaysia had been consolidated and another seven are scheduled to follow suit this year.

The company was also not considering any mergers or acquisitions at this time, said Ankel.

As for the two family takaful licences expected to be open for tender in October, he said Allianz had not made “a strategic decision at this time,”

“Are we seriously considering it? Yes,” he added.

--staronline

New Acting Manager for Aman Sharjah and the Northern Emirates

In an attempt to allow Young Emiratis to lead and excel in all business fields, Dubai Islamic Insurance and Reinsurance (AMAN) has promoted Miss Amal Alrayisi to Acting Manager for Aman branch office in Sharjah and the Northern Emirates.

Miss Amal holds several certificates specializing in Takaful. She has also attended several training programs on Takaful and Insurance. Prior to the position, Miss Amal was the assisting manager of Family Takaful and Bancatakaful at the Aman Headquarters in Dubai.

“Appointing Miss Amal as the new Acting Manager for Sharjah and the Northern Emirates is part of our strategy to offer Emiratis exciting and enriching opportunities that will enhance their careers and contribute to the development of this country, said Mr. Hussein Al Meeza, Managing Director and CEO of AMAN.

Mr. Al Meeza added:

“The total number of UAE nationals working at Aman Insurance has increased to 30% however we are always looking to increase that number further.’’

--Eye of Dubai

Firm signs distribution deal

Bahrain-based takaful provider t'azur Company has signed a distribution agreement with Tas'heelat Insurance for its motor and property plans.

"We are delighted to partner with a highly regarded firm such as Tas'heelat Insurance and believe that this will be beneficial to both parties," said t'azur Company chief executive officer Nick Frei.

"With their extensive reach to over 20,000 customers, Tas'heelat Insurance is one of Bahrain's leading retail insurance distributors."

t'azur is dedicated to exceeding the expectations of its participants by setting new standards of takaful innovation and service quality.

Tas'heelat Insurance, in turn, aims to give customers the right information and professional advice, so that they can make an informed decision.

"Tas'heelat Insurance is proud to work with t'azur to introduce their innovative takaful products to our customer base," said Tas'heelat Insurance general manager, Ali Al Daylami.

Promoted by Unicorn Investment Bank, t'azur was established in November 2007 with an authorised capital of $500 million to capitalise on untapped opportunities and immense growth potential across the international insurance sector.

--Gulf Daily News

BIMB will retain stake in Bank Islam, says MD

BIMB Holdings Bhd does not intend to sell its 51% stake in Bank Islam (M) Bhd, says group managing director Datuk Johan Abdullah.

“It is a major core subsidiary and in terms of revenue and net profit contribution, we had about 80% as at last year. This is a strategic investment for us,” he said after the company EGM yesterday.

Bank Islam is currently controlled by BIMB with a 51% stake while Dubai Islamic Investment Group owns 40% and Lembaga Tabung Haji 9% .Talk was rife earlier in the year of a possible merger between Maybank Islamic and Bank Islam.

BIMB has since said it was not in talks to merge Bank Islam with Maybank Islamic but would continue to look for potential partnerships that would be strategic to its business.

Bank Islam managing director Datuk Zukri Samat also said yesterday that the bank was still looking for merger and acquisition opportunities. The RM540mil that it would raise by selling preference shares to shareholders would “give a bit more leeway” for this purpose, he said without elaborating.

On another matter, Johan said talks between its subsidiary Syarikat Takaful Malaysia Bhd and Abu Dhabi-Kuwait-Malaysia Strategic Investment Corp to dispose the takaful operations to the latter were still “ongoing”.

“Due the market conditions, some parameters have changed. We are revisiting a whole wide spectrum of new issues,” he said.

--thestaronline

Emirates NBD promotes Shari’ah compliant banking at Jumeirah Beach Residence’s “The Walk”

Emirates NBD, the region’s largest banking group in terms of assets promoted its Shari’ah compliant banking products and services at the Jumeirah Beach Residence on The Walk last weekend.
Emirates NBD displayed its extensive range of conventional Shari’ah compliant savings and protection plans which assist customers in reaching their monetary planning goals. The plans offer help with areas such as children’s education, retirement, life & accident protection, long term capital appreciation and general savings. There were some exciting prizes also on offer for interested parties including Magrudy’s vouchers and various dinner vouchers.Emirates NBD’s Takaful and Savings Programme is a Shari’ah compliant, regular savings plan that helps customers increase their savings over a certain duration with Takaful protection for a secure future. Takaful is an Islamic insurance concept based on the principles of the Islamic banking transactions mutual assistance and voluntary contribution. This product consists of choices between monthly, quarterly, half yearly, yearly and low regular contributions.There is also an option of professionally managed Shari’ah compliant investment strategies. In addition this programme offers online underwriting approvals. The Super Saver is a savings scheme with choices on professionally managed funds. It consists of low regular contributions, lump sum options and monthly, quarterly, half yearly and yearly contributions.Mr. Suvo Sarkar, Vice President and General Manager Retail Banking at Emirates NBD said, “We are always devising innovative ways to be near our customers. It is essential to take our services to them and provide them with the details of our many products and banking alternatives. Today’s customer is always on the go, therefore we adapt to better suit their needs by becoming more mobile and utilizing effective channels to create more awareness about the products and services that are available for customers to take advantage of. Our initiatives are always centered around the customer and what is most convenient for them.”This booth at The Walk provided an easy way for customers to learn more about these programmes. The convenient location allowed Emirates NBD to reach out to customers and offer them comprehensive information on the bank’s many Shari’ah compliant banking methods.

--arabianbusiness.com

Saudi bourse weighed down by profit taking

The Tadawul All Share Index (Tasi) declined by three per cent last Saturday, dipping below 6,000 points.

The bourse was weighed down by an eight per cent decrease in the Saudi Basic Industries Corp (Sabic) share price on profit taking after the stock hit 67 riyals, recording a 61 per cent since April 21.

Following these losses, the market bounced back again above 6,000 points, fuelled by the increase in oil prices and the positive performance of the global equity markets.

Meanwhile, bank stocks also declined due to profit taking, especially those of Samba and BJAZ, by between six and seven per cent. In addition, speculation continued on the insurance sector's shares.

The trading values of sectors were as follows: Petrochemical Industries 22 per cent; Insurance 17 per cent; Banks and Financial Services 11 per cent; Industrial Investment eight per cent; Agriculture and Food Industries eight per cent; Building and Construction eight per cent, Telecommunications and Information Technology seven per cent; Real Estate Development six per cent; Multi-Investment four per cent, Retail four per cent; Transport two per cent, Hotels and Tourism two per cent; Media and Publishing one per cent; while Cement, Energy and Utilities remained unchanged.

The top five gainers were: Al Ahli Takaful Co 27.5 per cent; Tihama Advertising and Public Relations Co 25.4 per cent; SABB Takaful Co 25.1 per cent; Saudi Transport and Investment Co 21.6 per cent; and Saudi Industrial Export Co 19.3 per cent.

The top five losers were: Allied Cooperative Insurance Group -22.5 per cent; Samba Financial Group -6.7 per cent; Bank Al Jazira -6.2 per cent; Arabia Insurance Cooperative Co -5.4 per cent; Makkah Construction and Development Co -5.1 per cent. The Tasi registered 6052.63 points on Wednesday, closing up by 0.1 per cent from last week. As of yesterday, the Tasi is 26.0 per cent higher than at the start of the year. Trading value reached 43.3 billion riyals, down against last week's 48.8 billion riyals. Sabic dominated trading value at 13 per cent, followed by Alinma at eight per cent and Zain KSA at four per cent.

--Gulfnews

PruBSN: Take-up Rate For Takaful Products Still Low

The take-up rate for takaful products is still low in the country due to misperception, according to Prudential-BSN Takaful Bhd (PruBSN) chief executive officer Mohamad Salihuddin Ahmad.

To date, the take-up rate was only 7.7 percent compared to 40 percent for conventional life insurance products, he said.

This, Salihuddin said, could be due to the misperception that takaful products were only for Muslims only.

"Takaful is not a product for Muslims only and since we started business more than two years ago, we have adopted takaful for all concepts," he told reporters after launching the PruBSN Johor Baharu business centre here today.

However, PruBSN, a joint venture between Prudential Plc and Bank Simpanan Nasional, did not see the misperception as a setback but an opportunity to explore, he said.

With more than half of its 10,000 agents being non-Muslims, Salihuddin was optimistic that PruBSN could grow further and capture a bigger share of the non-Muslim market.

At present, 35 percent of its more than 216,000 policyholders are non-Muslims, he said.

"Unlike conventional insurance, takaful products are Syariah-compliant and the best way to go as they propagate transparency," he added.

PruBSN, which has received about RM300 million in regular contributions from policyholders, planned to open five more business centres nationwide this year.

Salihuddin said that between RM500,000 and RM1 million will be invested in each business centre, depending on the size and renovations to be made.

He said the company decided to open the Johor Baharu business centre as it expects an upswing in development with the Iskandar Malaysia project, and it currently has 239 agents servicing customers in the state.

Its other business centre was opened recently in Shah Alam, Selangor, while its marketing and administrative centre is located in Wangsa Maju, Kuala Lumpur.

-- BERNAMA

Dubai Islamic Bank expands product portfolio with Al Islami Takaful Programme

Dubai Islamic Bank (DIB) announced the launch of Al Islami Takaful Programme, its Sharia-compliant savings plan with Takaful benefits, designed to meet the unique needs of customers looking for Islamic financial planning solutions.

The Al Islami Takaful Programme is the latest addition to DIB’s suite of wealth management solutions, which include savings schemes, mutual funds, and other structured products. This programme combines savings and investment plans with a personal Takaful protection, creating a unique product that offers two key benefits – savings and protection – within the same plan.

The Al Islami Takaful Programme has been developed specifically for the needs of DIB customers by FWU - a global leader in Takaful expertise, with Dubai Islamic Insurance & Reinsurance Company (Aman) as the Wakeel.

Highlighting the advantages of the new product Dr. Adnan Chilwan, Chief of Retail and Business Banking, Dubai Islamic Bank, said: “The launch of the Al Islami Takaful Programme is a key milestone in the execution of our retail banking growth strategy, as it signifies the introduction of another Islamic retail product offering savings, investment and protection to the bank’s customers.This is further proof of DIB’s continued commitment to provide attractive financial planning solutions to different customer segments, in line with their needs and resources.”

The Al Islami Takaful Programme offers a range of investment options to suit different risk profiles, with flexible payment options – starting from monthly contributions to one-time lump sum contribution – and flexible maturity periods. Depending on their age, customers can choose a plan term from 7 to 30 years (for regular savings) and 3 to 30 years (for lump sum investment). The product also offers the flexibility to increase/decrease contributions and make partial withdrawals at any time during the term.

The Al Islami Takaful Programme is invested in Sharia-compliant funds that seek to generate attractive returns for participants in the programme. Returns on their contributions made into the investments will depend on the performance of the funds.

Dr. Chilwan added: “This programme gives customers the flexibility to switch between investment options at any time, make partial withdrawals and early encashments or even continue your investment plan after maturity. The annual solidarity 'Takaful' fund surpluses are distributed among all participants, proportionate to their contribution. Additionally, the programme also offers customers the opportunity to appoint up to four beneficiaries with an option to change the beneficiaries throughout the term of the investment, enabling complete peace of mind and protection to loved ones.”

Prospective customers can just walk into any DIB branch and meet a Customer Service Officer, who can provide advice on the right investment plan and structure of the Al Islami Takaful programme, to suit their individual requirements.

--Al Bawaba