Nizwa marks fruitful year as Capital of Islamic Culture 2015

Source: Ministry of Justice,
Oman.

Nizwa in Oman concludes the 2015 programme marking its selection as the Capital of Islamic Culture for the Arab region today, reports the Oman News Agency.

The project of Islamic Culture capitals was approved by the 3rd Islamic Conference of Ministers of Culture in 2001. The Islamic Educational, Scientific and Cultural Organization (ISESCO) chooses three cities each year from member states in the Organization of Islamic Cooperation (OIC) to be the capitals of Islamic Culture, representing the Arab, Asian and African Regions.

Nizwa was selected by the ISESCO to represent the Arab Region as a Capital of Islamic Culture for 2015 while Almaty, the previous capital of Kazakhstan, was selected to represent the Asian Region and Cotonou in Benin the African Region.

Nizwa Castle.

Nizwa is about 164 km from the capital Muscat. It used to be the capital city and continues to be one of the major scientific and cultural centres in Oman.

Interested?

Read the ISESCO blog post detailing Nizwa's history

Fragrance Du Bois works with Asia Plantation Capital to cement supply for sustainable oud

Fragrance Du Bois has cut out the middlemen in part of its supply chain by acquiring its own source of the perfume ingredient, oud. Oud (also known as agarwood) comes from the Aquilaria tree, and is in high demand from high-end brands in the fragrance industry. Natural oud provides fragrance with depth and longevity.

With demand increasing and finite supplies dwindling, Fragrance Du Bois decided to work with sustainable plantation company Asia Plantation Capital. Initially, Fragrance Du Bois will be investing more than US$5 million over the next 12 months in plantations that will be managed by Asia Plantation Capital, financed by private equity and perfume industry partners who have recently joined the company.

Fragrance Du Bois' oud (agarwood) and perfume oil plantations will be managed by Asia Plantation Capital, which is expanding beyond Aquilaria trees to patchouli, vetiver, tonka beans, bamboo, rose, pine, cypress and lemongrass, with many others in the pipeline.

Besides establishing its own plantations for oud in Malaysia and acquiring mature agarwood tree plantations from Asia Plantation Capital in Thailand, Fragrance Du Bois is looking at future acquisitions in India and Indonesia to provide a comprehensive range of high quality regional products. This will allow its core Fragrance Du Bois range of perfumed candles, perfumed wood chips and oils to be home-grown and sustainably produced.

In addition, Fragrance Du Bois' perfume creation business Oud Du Bois is in place to create fragrances for other international brands and perfume houses, using the pure oud oil it will be sourcing itself, along with other 100% sustainable and natural oils.

Nicola Parker, Brand Director of Fragrance Du Bois, said, "This is something we have been planning for a long time, and is designed to build on the unique success of our Soil to Oil to You story that has captured the imaginations of so many people. We can now expand to include other natural oils we use in our perfume creations. I can remember the whole buzz Anita Roddick created in the industry when she developed the Body Shop brand and range using natural and sustainable ingredients. By working with the experts at Asia Plantation Capital, we have been able to take this concept a stage further, so that we actually grow our own ingredients and, in due course, even refine them ourselves."

Parker concluded, "In today's consumer markets we find that our clients are not only conscience of where their products come from, but also their quality and purity. We believe that we are now the only luxury perfume brand that can actually do this, and we stand behind our Soil to Oil to You mantra as the key to everything we do and all the fragrances we create for our growing chain of boutiques."

Said Gary Crates, European CEO for Asia Plantation Capital: "Indeed, we are founding partners in the business and have invested heavily in the early seed capital and development of the brand. That said, it's very rewarding to see the brand now expanding and owning its own plantations under our management. Interestingly enough, this is a trend we are now seeing with other major perfume houses and brands. We are currently in the final stages of establishing similar sustainable and verifiable oud and mixed species supply chains with several of them. We believe that this is a growing trend in the global retail business, where major brands have to get more involved in their supply chains, especially where natural substances are concerned.

"In the case of agarwood, which is endangered, a greater involvement becomes an ethical imperative. The companies we are working with now have all identified this trend, and have also realised that it makes good commercial sense to not only safeguard their own supply chain, but also to be able to secure products at a discount to open market prices. Add this to the attendant sustainability and ethical approach, and you have the triple bottom line that we are all looking for in today's business world."

All the oud used by Fragrance Du Bois is CITES certified and guaranteed as to source, being both legal and sustainable, with respect shown for the environment, as well as the communities that live in and around the plantations on which the Aquilaria trees are grown.

Fragrance Du Bois is known for an expanding range of original, oud-based perfumes and associated products. Fragrance Du Bois is adding to its boutiques in Singapore, Kuala Lumpur and Bangkok, with new outlets opening in Dubai, London, Paris, Luxembourg and Geneva between now and the early part of 2016.

Interested?

Read the WorkSmart Asia blog post about Fragrance du Bois' popup store

Muscat Capital appoints Northern Trust for global custody, fund valuation and accounting services

Muscat Capital, the Saudi Arabia-based investment banking arm of Bank Muscat – the largest commercial bank in Oman – has appointed Northern Trust to provide global custody and fund valuation and accounting services for its Saudi equity fund, the Muscat Capital IPO fund, benchmarked to the Muscat Capital Saudi IPO Shari’ah Index.

This latest appointment adds to Northern Trust’s growing client base across the Gulf Cooperation Council (GCC) states, which include 60% of the GCC government pension funds and 50% of the GCC sovereign wealth funds.

Said Abdulwahed Al Murshidi, CEO, Muscat Capital: “Northern Trust’s ability to offer tailored solutions for the Gulf region as well as their proven expertise in supporting Saudi institutions through their local presence in Riyadh, were among the key factors in their selection.”

Northern Trust has been serving clients across the Middle East since 1987 and, through its offices in Abu Dhabi and Saudi Arabia, provides asset servicing and asset management expertise to pension funds, sovereign wealth funds, investment managers and ultra-high net worth individuals across the region. It offers a range of solutions tailored to support the needs of Middle East investors including
shari’ah-compliant post-trade compliance monitoring, shari’ah-compliant investment manager discretionary mandates and sukuk processing and reporting services.

Said Michael Slater, Country Head, Saudi Arabia, Northern Trust: “We understand that sophisticated institutions like Muscat Capital require customised solutions to meet their evolving requirements in this dynamic market, in particular the ability to innovate and offer asset servicing solutions around the Middle East’s working week. Our presence as part of the business community in Saudi Arabia, underpinned by long-standing expertise as a provider of these services ensures we are well-placed to continue providing exceptional service to clients in the region.

IFSB, BIBF set second joint Islamic Finance Executive Programme series for October

The Islamic Financial Services Board (IFSB) and BIBF are organising the second joint IFSB-BIBF Islamic Finance Executive Programme (IFEP) series, themed Towards a Vibrant Islamic Capital Market: Opportunities and Challenges, on 5 to 6 October 2015 in Manama, Bahrain.

This second edition of the IFSB-BIBF Islamic Finance Executive Programme will focus on expected catalysts of Islamic capital markets into the next phase of growth and development from the perspectives of market practitioners, regulators and academia. It also aims to promote an informed analysis and understanding of Islamic capital markets through discussions of topical and contemporary issues as well as of prospects and challenges relating to Islamic capital market products and services.

The sessions will include analysis and deliberations on the current trends and developments of the Islamic capital markets, innovations in sukuk structures such as perpetual sukuk, and prospects for cross-border sukuk. Furthermore, the participants will be exposed to issues related to development of new markets, Islamic collective investment schemes (ICIS), shari'ah-compliant hedging, as well as the role of the regulatory and supervisory authorities in ensuring market integrity, transparency and protection of investors.

The panel session, as a key feature of this Islamic Finance Executive Programme will highlight key issues and challenges in Islamic capital markets relating to the shari'ah framework, the resilience of its infrastructures as well as develop policy recommendations drawing on the views and experiences of both supervisors and market practitioners.

The agenda includes:

• Development of the Islamic capital market (ICM): Progress and trends
• Innovative sukuk structures: A new path for the growth of ICM
• Islamic collective investment schemes (ICIS): Promoting strong foundations
• Islamic real estate investment trusts (I-REITs): An emerging Asset Class for wealth management
• Shari'ah-compliant hedging instruments: Addressing the market risk management needs of the industry
• Sound development of the ICM: the supervisory role
• Panel discussion on building a vibrant ICM: key issues and challenges

The IFEP is ideal for regulators and supervisors of ICMs, Chief Executive Officers and board members of investment companies, originators and issuers as well as arrangers/bookrunners of ICM products, senior management at credit rating agencies, senior management of ICM Associations, Senior Managers in risk management, shari'ah governance and compliance functions, auditors, lawyers, academicians and researchers in ICM.

Interested?

Contact Hamizi Hamzah at hamizi at ifsb.org with enquiries.

IFSB plans workshops for banking, takaful and the Islamic capital market

The Islamic Financial Services Board (IFSB) will be organising three FIS workshops for banking, takaful and the Islamic capital market in October and November 2015 in Kuala Lumpur, Malaysia. 

The workshops are designed to enhance participants’ understanding of the respective standards and guiding principles applicable to each sector. The workshops also aim to assist the participants in the practical application of the issues addressed in the particular standard through case studies, group exercises, and other interactive tools; and to promote the sharing of experiences among regulators and market players on the implementation of the respective IFSB standards. The organisation invites all regulatory and supervisory authorities from among IFSB member countries to participate.

FIS workshop for the Islamic capital market sector

19 to 21 October 2015

This workshop covers:

• Introduction to Islamic capital markets 
• Sharing of country experiences on the strategies and policies for developing vibrant Islamic capital markets
• Revised capital adequacy standard for institutions offering Islamic financial services (IIFS) (IFSB-15)
• Guiding principles on shari'ah governance systems for IIFS (IFSB-10) and Guiding principles on governance for Islamic collective investment schemes (ICIS) (IFSB-6)

FIS workshop for the takaful sector 

19 to 21 October 2015
This workshop covers: 

• Introduction to takaful
• Sharing of country experiences on the strategies and policies for developing a robust takaful industry
• Standard on risk management for takaful undertakings (IFSB-14)
• Standard on solvency requirements for takaful undertakings (IFSB-11), 
• Guiding principles on shari'ah governance systems for IIFS (IFSB-10) and 
• Guiding principles on governance for takaful undertakings (IFSB-8).

FIS workshop for the banking sector

16 to 20 November 2015

This workshop covers: 

• Revised guidance on key elements in the supervisory review process (IFSB-16) 
• Guiding principles on shari'ah governance systems for IIFS (IFSB-10) 
• Guidance note on quantitative measures for liquidity risk management (IFSB-6) 
• Recent developments in the supervisory review process framework and liquidity risk management at the global level

Interested?

Contact Hamizi Hamzah at hamizi at ifsb.org.

Malaysia's SIDC has trained 400 professionals for the Islamic capital market to date

Source: SIDC. ICMGTS graduates posing with VIP guests at the tenth ICMGTS graduation ceremony. VIP guests (seated, from left in fourth position): Azman Hisham Che Doi, Chief Executive Officer, SIDC, Zainal Izlan, Executive Director, Islamic Capital Market, SC, and Sarimah Ramthandin, Director, Training and Investor Education Division, SIDC.

The Securities Industry Development Corporation (SIDC) has passed the milestone of producing 400 entry-level professionals for the Islamic capital market (ICM) sector with the graduation of 38 Islamic Capital Market Graduate Training Scheme (ICMGTS) participants from the programme’s tenth intake in Kuala Lumpur recently.

ICMGTS is a bi-annual Securities Commission Malaysia (SC) training programme conducted by SIDC to develop young talent for careers in the ICM. The eight-week programme aims to provide participants with a technical understanding of the ICM and work-relevant soft skills. It is endorsed by an industry task force consisting of the SC, Bursa Malaysia, the Federation of Investment Managers Malaysia (FIMM), Association of Stockbroking Companies Malaysia (ASCM), Malaysian Investment Banking Association (MIBA) and Malaysian Association of Asset Managers (MAAM).

SIDC Chief Executive Officer Azman Hisham Che Doi, who presented awards at the graduation ceremony to recognise the best performers, said, “ICMGTS is one of SIDC’s many successful talent development programmes to support the growth of the Malaysian capital market industry. To date, approximately 85% of the ICMGTS alumni have been accepted as part of the industry’s workforce, indicating the relevance and importance of the programme.
 
“SIDC programmes aim to enhance the competencies of market professionals, who play an important role in promoting competitiveness in the Malaysian capital market as well as creating investor confidence. Recognising this, SIDC works closely with all stakeholders including the regulator, exchanges, intermediaries, industry players and investors to provide value proposition in the programmes we offer.”

Applications are now open for the eleventh ICMGTS intake, commencing August 2014. All Malaysians aged 30 years and below with a recognised second class upper degree or equivalent in related disciplines are eligible to apply. Successful candidates will receive a monthly allowance of RM2,000 during the training period. The programme also offers participants the opportunity to be interviewed by potential employers as well as sit for the SC’s licensing examinations to qualify as licensed intermediaries.

Detailed application information is available at www.sidc.com.my.

Fund focus: Saturna's ASEAN Equity Fund is shari'ah compliant with performance-based fees

Saturna, a wholly-owned subsidiary of US-based Saturna Capital Corporation and a licensed Islamic fund manager under the Malaysia International Islamic Financial Centre (MIFC), launched the ASEAN Equity Fund in February to capitalise on the expected growth resulting from further economic integration within the ASEAN region. As of May 9, it trades at a little over RM1 per share.

Saturna has established itself as an expert in Islamic funds. It acts as a sub-adviser to the Crescent International Equity Fund, managed by Crescent Wealth, Australia's first Islamic wealth manager. Saturna Capital is adviser to the Amana Mutual Funds (Amana Growth Fund, Amana Income Fund, and Amana Developing World Fund) that follow principles of Islamic finance. 
 
The ASEAN Equity Fund invests in a diversified portfolio of shari'ah-compliant equities across the ASEAN region using a values-based investment approach developed by Saturna Capital's Chief Investment Officer Nicholas Kaiser. The criteria for stock selection will include identifying companies with improving fundamentals and growth at reasonable valuations.  

At least 70% of the Fund's net asset value (NAV) is in shari'ah-compliant equities in ASEAN countries, and up to 30% of the dund's NAV is in liquid assets including money market instruments and deposits with Islamic financial institutions.

According to Saturna, the ASEAN Equity Fund has a low-fee structure designed to be fair, transparent, and aligned with the long-term interests of unit holders. The Fund is offered with no sales charge, low administrative fees and transparent distribution fees. Additionally, the management fee of the Fund is performance-based - the management receives no fee unless the fund makes money for its investors. 

Monem Salam, Saturna ASEAN Equity Fund Portfolio Manager and President of Saturna in Malaysia, commented at the time of the launch: "We believe the ASEAN Equity Fund will first and foremost fill a gap for high-net-worth and institutional Islamic investors in and outside Malaysia. It could also serve as a low-cost vehicle for qualified non-Muslim investors who want to access investment opportunities in the rapidly growing ASEAN markets. An additional attraction for all qualified investors will be the Fund's performance-based fee structure, which, in line with shari'ah practices, makes sure that the management makes money only if investors do." 

The fund, denominated in Malaysian ringgit, is available to domestic and foreign qualified high-net-worth individuals and institutional investors. Click here for more information about the fund.