CIMB Islamic offers Shariah-compliant forex option

KUALA LUMPUR: CIMB Islamic Bank Bhd recently launched its Islamic foreign exchange with Shariah-compliant option features or FXOP-i, which allowed customers to hedge their forex risk.

CIMB Islamic said on Monday FXOP-i enabled customer to lock in a forex rate in advance by engaging in a Shariah-compliant financial transaction with CIMB Islamic.

It added net proceeds from this transaction -- similar to the premium paid for option instruments in conventional finance -- granted customers the right, but not the obligation, to exercise the option at the agreed rate on the maturity date.

CIMB Islamic CEO Badlisyah Abdul Ghani said with this product, customers could protect the value of their future foreign currency proceeds and also fix their hedging cost at the equivalent of the option "premium".

He said the customers could even earn a profit if the forex rates moved in their favour and with assurance that the transaction adhered to Islamic principles.

Newhaven launches Sharia-compliant firm

Dubai: Newhaven Investments House has launched Amara Holdings, a Sharia-compliant investment company which focuses on pre-IPO, private equity and private placement opportunities predominantly in China, as well as Mena and India.

A number of Gulf investors have already committed a significant amount of capital to Amara, including Khalid Al Mukairin Group, Al Sorayai Group (Saudi Arabia) and Ahmad Al Khemeiri (UAE).

"Two further GCC investors, Mohammad Al Khalil (Saudi Arabia) and Ahmad Al Omani (Kuwait) are also Amara Board members," the company said in a statement.

Amara is an offshore company pursuing an onshore listing. It has already made its first investment into China with a key strategic partner, Pan China Construction Group.

"We are looking at China, India and the Middle East and Northern Emirate's infrastructure, utility, real estate and industrial services sectors for investment," Dr Musab Jassim, executive chairman, Amara Holdings, told Gulf News.

The company has already signed a memorandum of understanding with Pan China Construction Group, to co-invest in joint ventures. The first of the joint ventures, China Infrastructure Corporation Limited (CIC), has already been formed. CIC, which is 51 per cent owned by Amara, will develop a logistics park, called Ningxia International Logistic Centre, in Ningxia province of China.

Islamic finance rides the storm

A thriving financial sector sounds like an oxymoron these days. Even Australia's banks - among the most profitable in the world - kept a fifth of this week's interest rate cut to cushion their margins. But there is one sector that has tongues wagging in the hubs of commerce: Islamic finance.

While the Western world's financial system has been imploding, this small but rapidly growing share of world capital has weathered the storm.

Sharemarkets in London and New York are a third off their peaks. Dow Jones's Islamic financials index, in contrast, rose 4.75 per cent in the most recent September quarter and lost a modest 7 per cent in the previous year.

Not only has the industry been resilient; it's also on the cusp of serious expansion. It is growing faster than any other subset of world banking, at 15 to 20 per cent a year. The Economist estimates Islamic assets under management are worth $US700 billion ($1000 billion). This figure could hit $US1 trillion - about the Australian sharemarket's current value - by 2010.

What's more, all this growth has come from a model of lending that rejects interest payments and shuns speculation and heavy borrowing.

In short, Islamic finance bans some of the excess that has brought the West's financial system to its knees, and is looking wise indeed, or at least lucky.

Shariah-compliant Investment Company Amara launches today

Newhaven Investments House announces today the launch of Amara Holdings Inc ('Amara' or 'the Company'), a Shariah-compliant investment company which focuses on pre-IPO, private equity and private placement opportunities predominantly in China, as well as MENA and India. Amara has already made its first investment into China with its key strategic partner, Pan China Construction Group.

Prominent GCC investors have already committed a significant amount of capital to Amara. These include Khalid Al-Mukairin Group (KSA), Al Sorayai Group (KSA) and Ahmed Alkhemeiri (UAE). Two further GCC investors, Mohammed Alkhalil (KSA) Ahmad Al Omani (Kuwait) are also Amara Board members.

The Company invests in sectors that are fundamental to the domestic economies and growth of the target regions such as agriculture, consumer staples, utilities, industrial, real estate and service related businesses. Key strategic partnerships are already in place with prominent Chinese, Indian and MENA partners ensuring a strong deal pipeline. This strategy will ensure that Amara will be resilient to any global downturn.