Kuwait's Investment Dar reaches deal with creditors

by Eman Goma

Kuwait's Investment Dar (TID) said on Monday it reached an agreement with its creditors and investors on a debt restructuring plan.

In November, the Islamic investment firm presented its creditors and investors with a proposal to restructure about 1 billion dinars ($3.51bn) of its debt.

The deal between Dar and its coordinating committee - which represents all creditors and investors - endorsed the proposed five-year restructuring plan, it said in a statement.

"The proposed plan is based on a restructuring of the existing financial arrangements with scheduled amortizations over a five year period," it said. Dar, which owns half of British luxury carmaker Aston Martin, defaulted on a $100 million Islamic debt issue last May - the first of its kind on a major, public Islamic instrument in the region - and has said it may sell some assets to meet its obligations.

"TID will satisfy its financial arrangements in full over the five year period. In addition, the proposed plan would provide TID's banks and investors with an enforceable security package," Dar said. In September, Kuwait's central bank appointed a temporary supervisor to monitor debt restructuring and the compilation of financial results at Dar.

Trading in Dar shares has been suspended since April 1, after the group failed to submit its 2008 financial records on time. Dar had said it was seeking to borrow up to $1 billion to refinance its debt. (Reuters)

Kuwait to deport 100,000 expats - paper

by Neeraj Gangal

Kuwait is likely to arrest and accordingly deport close to 100,000 expatriates for being registered with bogus companies, according to a report.

Highـranking security sources in the state told the local Al Watan daily: "A relatively large number of private firms have been issued commercial licenses but do not actually have offices or business activities in the country."

The sources added that it was likely that the owners of the licenses brought expat manpower into the oil exporting country in return for money, without giving them the promised jobs in return.
According to the daily, informed sources said that Kuwait's cabinet has assigned a taskforce to bring to book all those companies engaged in the malpractice.

Al Watan said that the sources suggested that a large section of such manpower engages in menial jobs to make their ends meet, while the majority of them are jobless.

In a related development, Al Watan reported that the minister of public works and minister of state for municipal affairs Dr Fadhil Safar on Thursday affirmed the government''s determination in preventing single expatriate workers from living in private residential areas.

According to the daily, "The minister also expressed shock over the fact that some private companies were found operating within private residential areas without obtaining a clearance from the relevant municipal authorities, noting that the ministry does not condone such malpractices in residential areas."

Early last year, a report revealed that expatriates made up 69% of Kuwait’s total population.

I am nothing without my people: Abdullah

By P.K. Abdul Ghafour, Arab News

JEDDAH: Custodian of the Two Holy Mosques King Abdullah yesterday emphasized the strong relationship between the Saudi citizens and their leadership, saying: “I am nothing without my people.”

The king made this comment during an open and frank discussion with the chairman and members of the Shoura Council, the Saudi Press Agency said.

Saleh Bin-Humaid, chairman of the Shoura, noted the king’s remarkable role at the Arab economic summit in Kuwait last month when the king urged Arabs to open a new era of unity and solidarity and offered a donation of $1 billion for the reconstruction of Gaza. Abdullah told Shoura officials that what he did at the Kuwait summit was inspired by his “religious and national duty and Arab chivalry.” He said he has been carrying the issue of Arab reconciliation and unity in his mind for several years.

The king also approved yesterday a decision taken by the Higher Education Council to convert Effat College into a private university. “Effat College has fulfilled all conditions required for a private university,” said Higher Education Minister Khaled Al-Anqari.

Effat, the first college for women in the Kingdom, offers courses in architecture, electrical and computer engineering, business administration, computer science, information systems, English language and translation, psychology and early childhood education.

Abdullah also approved the establishment of a research and consultancy institute at King Faisal University; an e-learning center at Najran University; a deanship for university studies, and for academic quality and accreditation at the women’s section of Madinah Islamic University; and a deanship for information technology at Imam Muhammad bin Saud Islamic University in Riyadh.

Meanwhile, Abdullah received the prize of the Humanitarian Service Society from Prince Sultan bin Salman, chairman of the Disabled Children’s Association (DCA), and Prince Turki bin Mohammed bin Fahd, chairman of the prize committee. The king commended DCA’s services to handicapped Saudi children. He also received two children — Fahd bin Mansour Al-Hadour and Noura bint Abdul Aziz Al-Shaqri — who are cared for by the organization. The DCA currently runs six centers in different parts of the Kingdom, Prince Sultan said, adding that four centers are under construction. He thanked the king for accepting the society’s prize and praised his generous support for the organization.

Sultan referred to DCA’s pioneering role in conducting scientific research on disability and introducing an endowment system to finance its charitable projects.

In another development, Abdullah received Labor Minister Ghazi Al-Gosaibi, Petroleum and Mineral Resources Minister Ali Al-Naimi, Technical and Vocational Training Corporation (TVTC) Gov. Ali Al-Ghafees, and representatives of private companies that have established partnership with TVTC to open nonprofit institutes.

DIB moves to improve corporate governance

by Rebecca Bundhun

Dubai Islamic Bank (DIB) has signed a "founding member" sponsorship agreement with corporate governance organisation the Hawkamah Institute, the bank announced on Thursday.

DIB said that the move shows its commitment towards strengthening its corporate governance standards.

“The Shariah Supervisory Board has become an indispensable aspect of our corporate governance and will be well paired with the objectives of Hawkamah, which aims to ensure these standards are being met to better protect all those associated with the bank,” said Abdulla Hamli, DIB’s chief executive officer.

Many experts have long called for increased regulation and transparency of Islamic banks, which are still relatively new to the market.
“Corporate governance plays a critical role in the development of modern businesses as it enhances investor confidence and helps in developing the capital markets of the region,” said Nasser Saidi, executive director of Hawkamah, said

“Islamic finance has experienced unprecedented growth so far, but the enactment and implementation of well defined corporate governance structures is essential if trust and confidence is to be maintained.”

BEST ISLAMIC FINANCIAL INSTITUTIONS IN PAKISTAN (GLOBAL FINANCE 2008): Meezan Bank

Meezan Bank Limited a publicly listed company was incorporated on January 27, 1997 and started operations as an investment bank in August that year. In January, 2002 in an historic initiative, Meezan Bank was granted the nations first full-fledged commercial banking license as a dedicated Islamic Bank, by the State Bank of Pakistan.

Meezan Bank, has now clearly established itself as the largest Islamic Bank in Pakistan with a large network of branches in all major cities of the country. The banking sector is showing a significant paradigm shift away from traditional means of business, and is catering to an increasingly astute and demanding financial consumer who is also becoming keenly aware of Islamic Banking. Meezan Bank bears the critical responsibility of leading the way forward in establishing a stable and dynamic Islamic Banking system replete with dynamic and cutting-edge products and services.

During the first five years of its operation as an Islamic commercial bank (from 2002 to 2007), offering universal banking services to customers, Meezan Bank has been one of the fastest growing banks in the history of the banking sector. Average growth in deposits has been 60% per annum during this period while the branch network grew from 4 to 100. The bank has established a strong and credible management team comprised of experienced professionals, that have achieved a strong balance sheet with excellent operating profitabilitya and strong ratios, that places the Bank at the top of the industry. The Bank has been assigned a long-term entity rating of A+ and a short-term entity rating of A-1.

The Banks main shareholders are leading financial institutions of the Region namely, Noor Financial Investment Company, Kuwait, a leading investment banking entity based in Kuwait; Pak-Kuwait Investment Company, a AAA rated financial entity in the country; the Islamic Development Bank of Jeddah, and Shamil Bank of Bahrain. A leading Islamic Bank in Bahrain. The established position, reputation, strength and stability, of these institutions add significant value to the Bank through Board representation and applied synergies.

The Bank has an internationally renowned, very high caliber and pro-active Shariah Supervisory Board Chaired by Justice (Retd.) Maulana Muhammad Taqi Usmani, an internationally renowned figure in the field of Shariah, particularly Islamic Finance. He holds the position of Deputy Chairman at the Islamic Fiqh Academy, Jeddah and in his long and illustrious career has also served as a Judge in the Shariat Appellate Bench, Supreme Court of Pakistan. The Board also includes Sheikh Essam M. Ishaq (Bahrain), Dr. Abdul Sattar Abu Ghuddah (Saudi Arabia) and Dr. Imran Usmani who is also the resident Shariah advisor of the Bank. Dr. Imran is assisted by a team of professionals (otherwise referred to as the Product Development and who strictly monitors the regular transactions of the Bank.

At Meezan Bank, we strive to find commonalties with the conventional banking system with absolutely no compromise on Shariah rulings. The bank has developed an extraordinary research and development capability by combining investment bankers, commercial bankers, Shariah scholars and legal experts to develop innovative, viable, and competitive value propositions that not only meet the requirements of today’s complex financial world, but do so with the world-class service excellence which our customers demand, all within the bounds of Shariah.

Meezan Bank has built a strong Information Technology and customer knowledge-based focus that continues to use state of the art technology and systems. The Bank’s Corporate and Investment Banking business unit is geared towards nurturing and developing a long-term relationship with clients by understanding their unique financing requirements and by providing Shariah compliant financing solutions through corporate banking and structured finance.

By implementing robust and aggressive strategic and tactical initiatives on the side of consumer banking, Meezan Bank aims to fulfill its prime target of providing customers accessibility and convenience, within an atmosphere and culture of dedicated service and recognition of their needs. The Bank has a rapidly growing branch network across all major cities nation-wide.

At Meezan Bank, we believe in adding value to our customers’ lives and businesses, through dynamic and competitive products and services that fulfill their needs while conforming completely to the dictates of Shariah. At the same time, we endeavor to deliver competitive risk adjusted returns to our stakeholders.

Best Sukuk Bank (Global Finance Award 2008) : Kuwait Finance House

Kuwait Finance House (KFH) was established in the State of Kuwait in 1977, as the first bank operating in accordance with the Islamic Shari'a. KFH is listed in Kuwait Stock Exchange (KSE), with a market capitalization of KD 3.133 billion as of 31 December 2006. Assets total KD 6.314 billion and deposits amount to KD 3.730 billion, representing 25% of the total deposits in the Kuwaiti market as per the balance sheet of 2006.

KFH has been highly rated by prestigious international agencies. Standard & Poor's rated KFH A-/A2 for short and long term investments, respectively. Capital Intelligence rated KFH A/A1 for short and long term investments, respectively. Fitch International also rated KFH A, and Moody's rating was Aa3. KFH has been awarded by The Banker magazine as the world's Best Islamic Financial Institution, and for third successive year it has been awarded by EuroMoney magazine as the best bank.

KFH provides a wide range of Islamic Shari'a compliant products and services, covering banking, real estate, trade finance, investment portfolios, and other products and services.

Since the 1980's, KFH has witnessed multi-activity in international expansion. It has established independent banks in Turkey, Bahrain, and Malaysia. Moreover, it has stakes in other Islamic banks. Its investment activities in the US, Europe, South East Asia and the Middle East contributed tremendously to achieving the ever-growing profit of KFH, in collaboration with the world's leading companies and banks, such as Citibank, Deutsche Bank JP Morgan, Chase, BNP Parisbas, ABN Amro, HSBC, and Islamic Development Bank (IDB).

KFH has always endeavored to expand its local branch network, covering 42 branches, in addition to special sections for ladies. It adopts the out-of-branch client concept. KFH has maintained its foothold as a pioneering entity in utilizing the latest technologies to meet the requirements of the various activities in which it operates, using online, SMS, as well as phone service (Allo Baitak), which has received the highest accreditation from the US Purdue University for outstanding customer service level.

KFH is proud of its manpower skills. It employs a number of outstanding human resources, and is a pioneer in manpower Kuwaitization, where Kuwaiti manpower exceeded 52%.

The first sharia bank in Kuwait

Kuwait Finance House (KFH) was established in the State of Kuwait in 1977, as the first bank operating in accordance with the Islamic Shari'a. KFH is listed in Kuwait Stock Exchange (KSE), with a market capitalization of KD 3.133 billion as of 31 December 2006. Assets total KD 6.314 billion and deposits amount to KD 3.730 billion, representing 25% of the total deposits in the Kuwaiti market as per the balance sheet of 2006.

KFH has been highly rated by prestigious international agencies. Standard & Poor's rated KFH A-/A2 for short and long term investments, respectively. Capital Intelligence rated KFH A/A1 for short and long term investments, respectively. Fitch International also rated KFH A, and Moody's rating was Aa3. KFH has been awarded by The Banker magazine as the world's Best Islamic Financial Institution, and for third successive year it has been awarded by EuroMoney magazine as the best bank.

KFH provides a wide range of Islamic Shari'a compliant products and services, covering banking, real estate, trade finance, investment portfolios, and other products and services.

Since the 1980's, KFH has witnessed multi-activity in international expansion. It has established independent banks in Turkey, Bahrain, and Malaysia. Moreover, it has stakes in other Islamic banks. Its investment activities in the US, Europe, South East Asia and the Middle East contributed tremendously to achieving the ever-growing profit of KFH, in collaboration with the world's leading companies and banks, such as Citibank, Deutsche Bank JP Morgan, Chase, BNP Parisbas, ABN Amro, HSBC, and Islamic Development Bank (IDB).

KFH has always endeavored to expand its local branch network, covering 42 branches, in addition to special sections for ladies. It adopts the out-of-branch client concept. KFH has maintained its foothold as a pioneering entity in utilizing the latest technologies to meet the requirements of the various activities in which it operates, using online, SMS, as well as phone service (Allo Baitak), which has received the highest accreditation from the US Purdue University for outstanding customer service level.

KFH is proud of its manpower skills. It employs a number of outstanding human resources, and is a pioneer in manpower Kuwaitization, where Kuwaiti manpower exceeded 52%.