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.

UAE, Kuwait shares 'among world's most attractive'

By Soren Billing
Investors are beginning to differentiate between different GCC stock markets, and valuations in the UAE and Kuwait are among the most attractive in the world, Rasmala said on Thursday.

The regional investment bank said that although it is cautiously optimistic that the worst is now over, a recovery will not be uniform across GCC markets and sectors.

“The global economic picture will be important, but domestic factors will increasingly play their part as governments across the region announce fiscal, monetary and regulatory measures to deal with the current challenges posed by the global economic crisis and lower oil prices,” Khaled Al Masri, partner at the bank, said.
The region’s markets reacted differently to local, regional and international factors in December, signaling that investors are beginning to differentiate between markets and stocks after an indiscriminate sell-off over the past few months.

Valuations of UAE listed equities, which are trading at around five times 2008 earnings, are the lowest in the region and among the most attractive globally, according to Rasmala.

“Lingering uncertainties surrounding the announced restructuring of the mortgage sector and a decimated domestic investor base are precluding a near-term recovery in the market, despite extremely attractive valuations,” Al Masri said.

Valuations of Kuwaiti stocks are also seen as some of the most attractive in the region, but continuing fears over the investment sector and lingering political squabbles are weighing on investors and delaying a recovery, despite official support for the market.

The Kuwaiti central bank last month cut its repurchase rate by 50 basis points to 2.5 percent and has lowered the minimum reserve requirements for banks.

With current valuations at under nine times 2008 earnings, a dividend yield of close to 5 percent and an expansionary fiscal and monetary policy, Rasmala believes Saudi equities are well positioned for any improvement in the global economic environment.

Gas rich neighbour Qatar was the best performing regional market in December, with gains of close to 13 percent.

“The market has been exhibiting sensitivity to both the global environment and oil prices and has benefited from the improvement of both these factors over the month, and the Qatari economy is expected to be one of the fastest growing global economies over the next few years,” Al Masri said.

Valuations of Omani stocks are in line with the regional average and the market awaits fourth quarter results from leading companies to determine whether current valuations are attractive, according to Rasmala.

Source : Arabian Business

BEST ISLAMIC FINANCIAL INSTITUTIONS IN LEBANON (GLOBAL FINANCE 2008): Arab Finance House

Arab Finance House-Holding Company was foundedin Lebanon in 2003 with a capital of 60 million American dollars and a plan to raise that capital to 100 million American dollars within three years. The Company established two banks in Lebanon: the Arab Finance House commercial bank, and the Arab Finance House investment bank.

Under the decreenumber 9494 of the Central Bank of Lebanon dated26/12/2006, the two banks merged to become the Arab Finance HouseSAL(Islamic Bank) holding the number 125 on the list of Banks (commercial register #1002082).

The Arab Finance House is an Islamic bank, and subsequently all its investments and products are Shari’a compliant while remaining under the realm of Lebanese banking laws.
Arab Finance House operates in accordance to Islamic Shari’a but within Lebanese banking laws, including the “Credit Contracts” Law issued in 1996. The bank plays a prominent role in developing the national economy using the most advanced banking implements. Arab Finance House focuses on acquiring professionals with the highest qualifications.

Our vision stems from our structure as a comprehensive Islamic banking solution incorporated in the Levant, which allows us to; further enhance and advance the Islamic banking industry, contribute to the economies of our hosting countries, and become a leading regional quality institution.

Our mission is to create, under Shari’a principles, a dynamic banking environment characterized by the most advanced technology, innovations, and professionalism. This environment will allow us to maximize, in a balanced manner; the returns to our shareholders; the quality, efficiency, and competitive services to our clients and hosting economies without discrimination; and a sense of security and satisfaction to our employees.
QIB adopts a steady and clear strategy, which takes into consideration the continual modernization of banking and investment services using the latest banking technology. In this regard, the bank has recently completed a pioneering plan to modernize and automate all its branches using a developed computer network, which further satisfies the needs of their clients. QIB has also established Islamic investment funds (like Bader and Rayyan Real Estate Funds) that have been successful in achieving capital appreciation to investors.

Established as an Islamic investment bank in Bahrain in October 1999, Gulf Finance House (GFH) plays an active role in providing Shari’a-compliant products and services to a broad base of clients. The bank’s strong, diversified shareholder base ensures participation in profitable opportunities in selected markets, which is supplemented by opportunities derived through affiliations with reputed financial institutions in other markets. In 2004, GFH increased its capital and opened a retail commercial operation to become one of the leading universal Islamic banking operations in Bahrain. GFH’s primary aim is to move away from an excessive concentration on low-risk, short-term instruments through innovative products with higher risk/return benefits.

The Board of Directors of the Arab Finance House S.A.L. (Islamic Bank) is pleased to bring forward the achievements of the year 2007 and the Bank’s accomplishments, despite the difficult situation that Lebanon has undergone for quite a while now.

Despite the negative political atmosphere, the Bank has been able to achieve Net Profits of around USD 2 Million compared to USD 572.000 in the year 2006 which translates into a Profit Increase of around 250%.

The Total Assets amounted to around USD 203 Million in December 2007 versus USD 121 Million in December 2006, reflecting an increase of 70%.

The Customers’ Deposits have increased by around 90% proving the Bank’s capability of grabbing a bigger share of the Lebanese Banking Market.

The deposits of banks and financial institutions have increased dramatically to reach around USD 66 million in December 2007 compared to USD 22 Million in December 2006.

During the year 2007 the Bank has expanded, and opened, with the help of God, 2 new branches in Sidon and Tripoli. The Ashrafieh Branch was relocated to Solidere area, and we hope that new branches will open whenever the situation permits, in an attempt to meet the growing demand for Islamic Banking services in various Lebanese areas.

Also, the Head Quarter relocated from Achrafieh to the new AFH tower in Mazraa.

The tower has been equipped and prepared to better suit the bank’s needs, to better serve its growing clientele.

Finally, it is worth mentioning that the Bank has placed great emphasis on developing the human element in various departments, especially the productive ones, and has given special attention to proper training of the personnel in Islamic Banking principles, both inside and outside the bank, reflecting the important role the bank is playing and intends to play in Lebanon.

In General, we can say that during the year 2007, the bank has implemented a clear path in the Islamic Banking sector in Lebanon, and we are confident that the Arab Finance House will grow beyond all expectations in the coming few years, God willing.

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."

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.