Best Islamic Financial Institution in France (Global Finance) : BNP Paribas

BNP Paribas is a European leader in banking and financial services, with a significant and growing presence in the United States and leading positions in Asia. The Group has one of the largest international banking networks, a presence in over 85 countries and 171,200 employees including: 131,000 in Europe - among whom 19,600 in Italy and 64,000 in France and in the Overseas Departments; 15,000 in North America and 10,000 in Asia.

With a long standing presence in the region, BNP Paribas strengthens its proximity with local clients by creating dedicated private banking teams in each of its branches in the Middle East: Barhain, Abu Dhabi, Dubai, Kuwait, Saudi Arabia, Qatar, and Lebanon. BNP Paribas Private Banking therefore increases its coverage in the region, by opening new branches in Kuwait and in Riyadh.

BNP Paribas Private Banking develops a dedicated offer for the Middle East clients, and proposes them a direct access to local equities and local funds. The advisory desks established in Bahrain and in Lebanon give access to a highly specialised analysis of the local market. The bank has also developed an Islamic range of products either internally made or selected through an open architecture approach.

This new set-up fully dedicated to private banking activities also provides the opportunity to invest in the main European financial centres such as Geneva, Luxembourg, London and Paris. The Middle East clients have access to the full private banking products and services range, and can benefit from the private banking expertise, in wealth management or estate planning. The “Solution Centre”, based in Geneva, offers flexible approach and tailor-maid solutions for the Ultra High Networth Individuals.

In 2006, BNP Paribas Private Banking will continue to strengthen its teams in the region, confirming the key importance of the Middle East region for BNP Paribas.
BNP Paribas Private Banking has targeted to double its asset under management from USD 5 to 10 bn within 3 years.

BNP Paribas has completed the second largest bond issue in Saudi Arabia for Saad Trading Contracting and Financial Services Company (STCFSC). BNP Paribas acted as sole bookrunner for this USD 650 million, 5-year bond issue, in Sukuk format (meaning the issue complies with the investment principles of Islamic law). This transaction is the first Sukuk issued in Saudi Arabia for a private business and illustrates the growing interest in the Sukuk market.

Saad Group has been rated BBB+ (S&P). STCFSC is one of the two principal companies of the group. Its main activities include construction, real estate and healthcare. STCFSC is a key investor in various sectors, particularly in the Saudi and international banking sector. For several years, BNP Paribas has been one of its strategic partners in investment banking.

The orderbook achieved USD 1 billion within two days, double the targeted size of USD 500 million. European investors took the largest amount with 46%, significant orders also came from the Middle East and from Asia.

BNP Paribas Investment Partners (“BNPP IP”) and The Saudi Investment Bank (“SAIB”) have signed today a strategic partnership in asset management in the Kingdom of Saudi Arabia. Under the terms of the agreement, BNPP IP, through the holding company BNP PAM Group, will buy a 25% stake in SAIB Asset Management Company (“SAIB AMC”), the newly formed subsidiary of SAIB. The transaction is subject to regulatory approvals, and is expected to be completed within a few months. The Joint Venture will then be renamed SAIB BNP Paribas Asset Management.

SAIB has successfully developed a significant presence in asset management in the Kingdom, putting forward its particularly strong expertise in Saudi and GCC equities and in Islamic funds. With 2, 2 billion USD of assets under management, SAIB Asset Management Company provides a wide range of investment management products to a variety of corporate and retail investors.

Best Islamic Bank in Europe (Global Finance) : Deutsche Bank

Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With Euro 1,097 billion in assets and 67,474 employees in 73 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.

Deutsche Bank has today published a White Paper outlining the investment structure that facilitates the issuance of Sharia compliant securities that offer investors access to alternative asset classes.

Deutsche Bank has made public its procedures both in the interests of transparency and in an attempt to help alleviate some of the 'supply side' constraints that exist in Islamic financial markets. These constraints are mainly related to capacity - in respect of the number of qualified bankers involved and their Islamic structuring capabilities. In addressing these issues, the market will be more able to develop in line with customer demand.

By publishing this paper, Deutsche Bank hopes to achieve three objectives which will see the area of Sharia compliant securities growing, but off a solid and uniform base.

* Make Deutsche Bank's investment structure (or the 'Structure') available to other financial institutions and thereby alleviate the current shortage of supply of products.
* Establish the White Paper as a quality benchmark, and encourage the use of academic resources to assist the industry in developing new products - something that has not been a feature of the industry so far.
* Encourage the use of the Structure in its correct context through reference to the White Paper.

Geert Bossuyt, Managing Director, Regional Head of ME Structuring, Deutsche Bank, commented:

"We are confident that the Structure will eventually be viewed as a significant milestone in the development of the Islamic finance industry as it provides Islamic investors with exposure, in a liquid and cost-efficient way, to new asset classes and pay-outs, removing one of the main structuring barriers. The Structure itself is the result of close co-operation between academics, bankers and, of course, scholars. "

"Too often, 'innovation' is achieved by pushing the barriers and/or misusing fatawa by taking them out of their context. Innovation ideally should be the result of a well documented and fundamental discussion on Sharia. Deutsche Bank wishes to encourage the use of academic resources to assist the industry in developing new products as this has not been a feature of the industry to date."

"We believe that those institutions with the vision, creativity, innovation, courage and commitment to develop the Islamic financial markets will be recognised for their hard work and ideas. Sharia itself has inherent flexibility and fewer constraints than is often assumed by the financial services industry. Fundamental research is the key to unlocking this inherent flexibility, thereby allowing this market to grow to its full potential."

UAE may look to invest in US markets

DUBAI // The UAE has remained upbeat in its financial outlook and is looking to invest in US and European markets.

But a key figure in the capital has admitted feasibility of projects is being assessed because of the global financial crisis.

Soud Ba’alawy, executive chairman of Dubai Group, the diversified financial company of Dubai Holding, and Sameer al Ansari, the head of Dubai International Capital, indicated the UAE could weather the world financial crisis and look to invest in the US markets.
The two have been attending the inaugural Summit on Global Agenda, hosted by the World Economic Forum and the Dubai Government.

“There will be fantastic opportunities in the next 12 to 18 months ... and that is not exclusive to Europe and North America. There will be fantastic opportunities in Russia, India, China and this region,” Mr Ansari, who controls about US$13 billion (Dh47.75bn) in assets, said at the summit.

He said his company had done very little in 2008 and would wait until 2010 to invest in foreign markets as prices hit rock bottom.

Mr Ansari said Dubai’s estimated Dh70 billion debt was manageable and it would not need to be bailed out as the credit crunch hit the GCC.

Mr Ba’alawy said availability of cash and low interest rates could help the UAE to weather the crisis, then recover quicker than expected.

Hussain al Nowais, the chairman of Emirates Holdings and a member of the Abu Dhabi Council for Economic Development, said on the opening day of the summit Abu Dhabi was considering mergers in its banking and financial services sector because of the global crisis.

“I think the credit crisis will help us reflect and make sure the projects we are proceeding with are attractive and feasible,” Mr Nowais told Reuters news agency.
“The fundamentals of the economy are strong.”

There has been speculation the credit crunch will force banks in the region to consolidate, with tight lending conditions and slower project funding.

In September, there were rumours that the Abu Dhabi Commercial Bank would merge with the larger National Bank of Abu Dhabi to create the biggest lender in the UAE. Both banks denied it.

Addressing the opening of the inaugural Summit on Global Agenda, Sheikh Mohammed Bin Rashid, the Vice President of the UAE and Ruler of Dubai, blamed financial policies, and not flaws in the economy, for the global financial crisis.

“I am not saying that we must have a protected economy but [we should] promote a process of co-operation to protect regional and international economies,” Sheikh Mohammed said.

There has been speculation the credit crunch will force banks in the region to consolidate, with tight lending conditions and slower project funding.

In September, there were rumours that the Abu Dhabi Commercial Bank would merge with the larger National Bank of Abu Dhabi to create the biggest lender in the UAE. Both banks denied it.

Addressing the opening of the inaugural Summit on Global Agenda, Sheikh Mohammed Bin Rashid, the Vice President of the UAE and Ruler of Dubai, blamed financial policies, not flaws in the economy, for the global financial crisis.

“I am not saying that we must have a protected economy but [we should] promote a process of co-operation to protect regional and international economies,” Sheikh Mohammed said.

Economics and finance were among the key topics to be discussed by more than 700 experts from academia, business, government and society during the three-day conference that ends tomorrow.

Klaus Schwab, founder and executive chairman of the World Economic Forum, said: “This is an exciting and historic venture, made more timely by recent events.

“The challenges faced by the world today are more complex, more interrelated, more intractable than ever before.

“In these crucial times, what we want to do is find the right formula with transparency so that the next generation can benefit. We just have to look at the global financial crisis to see we need to do something about our future.”

Mr Klaus, speaking on the opening day, highlighted the importance of the role developing countries such as the United Arab Emirates could play in framing the future.

“Strong emerging countries have a say on how the future is shaped, and one of the reasons why we will have the summit in Dubai is because the country here has a vision and a strong growth potential,” he said.

Health, religious extremism and social values are also on the agenda for what will become an annual event. Delegates will select the 10 most important ideas for improving the state of the world.

“Problems in the world usually start in the developed countries and then hit the emerging, or developing countries,” said Mohammed Alabbar, member of the Dubai Executive Council and chairman of Emaar, who used as an example the current global economic crises that started with the crash of the US housing market.

“Dubai is a perfect place for such a historic meeting, which comes at a time when the world is facing challenges that have no parallel,” he added.

Ideas from the summit, which is held in partnership with the Government of Dubai and took 11 months to plan, will be presented at annual meeting of the World Economic Forum in Davos, Switzerland, in January.
Source : The National

Best Islamic Investment Bank (Global Finance) : Unicorn Investment Bank

Founded in 2004 and headquartered in Bahrain, Unicorn Investment Bank (Unicorn) is an Islamic investment bank, with an international presence in the United States, Malaysia, the United Arab Emirates, Turkey and Pakistan. Unicorn seeks to deliver exceptional value to clients and shareholders through a focus on innovation, professionalism and integrity – the shared values that drive the Bank’s endeavour to be a leading global provider of Shari’ah-compliant investment banking products and services.

Unicorn’s integrated business model is built around six core business lines: Capital Markets, Private Equity, Corporate Finance, Asset Management, Strategic Mergers & Acquisitions and Treasury. The Bank leverages its resources and expertise across each of these business lines to provide clients with a broad range of investment solutions tailored to meet their specific requirements.

The Bank’s integrated product offering and financial structuring skills are coupled with an ability to distribute Unicorn products and services to a broad client base across the GCC region, and the Bank is now developing the capability to do so across the wider Middle East region, Turkey and Southeast Asia.

In every aspect of its business and through every level of the organisation, Unicorn is committed to upholding the highest standards of corporate governance and transparency. The Bank’s innovative products and transactions are fully compliant with Shari’ah principles and we believe that they are consistent with international financial best practice. The Unicorn Shari’ah Supervisory Board ensures that all investment policies, structures, products and financial services and activities that the Bank is involved in are in conformity with Shari’ah principles, while the Bank’s stringent corporate governance standards seek to ensure that the Bank, its directors and its employees follow high standards of ethical conduct and adhere to the principles of fairness, transparency, accountability and responsibility in all day-to-day operations.

Unicorn has achieved uninterrupted growth since its inception and has received widespread industry recognition for excellence and vision. The Bank intends to continue to build on its track record by delivering innovative and attractive investment products and services in a professional and transparent manner.