UAE citizens, residents now able to invest in treasury sukuk

The UAE has made shari'ah-compliant treasury sukuk (T-sukuk), which were previously available only to institutional investors, accessible to all citizens and residents in the UAE, the Emirates News Agency (WAM) has reported.

Retail Sukuk, a new initiative from the UAE Ministry of Finance (MoF), enables individual investors to invest in shari'ah-compliant, government-backed T-sukuk through fractionalised digital investment platforms operated by participating banks in the country.

The initiative seeks to promote financial inclusion and expand the investor base for government financial instruments by enabling citizens and residents to invest easily and securely in line with Islamic principles. It also seeks to stimulate long-term investment in T-sukuk as a secure and sustainable savings tool. 

Retail sukuk are denominated in AED and linked to government-backed T-sukuk already traded in the market and designated for institutional investors. Investments of AED4,000 and up are accepted.

HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy PM and Minister of Finance of the UAE was quoted by WAM: “The Retail Sukuk initiative reflects the UAE’s vision and its leadership’s directives to empower the community and enhance participation in the national development journey through financial policies that prioritise human wellbeing. Launched within the framework of the Year of Community, the initiative opens new horizons for citizens and residents to contribute to shaping the future through secure, government-backed investment instruments.”

He added that the MoF seeks to "transform investment in government bonds into an accessible, comprehensive digital experience, enabling all segments of society to access high-quality financial instruments that were previously limited to institutional investors" with the initiative. "This represents a strategic step towards advancing financial inclusion and promoting a culture of long-term savings, ensuring the sustainability of the UAE’s financial resources and supporting development goals across various sectors,” he added.

Mohamed bin Hadi Al Hussaini, UAE Minister of State for Financial Affairs said: “The Retail Sukuk initiative represents a qualitative leap in the development of government investment instruments, enhancing individual participation in economic growth and providing a direct avenue to contribute to the national development journey. This initiative realises the Ministry of Finance’s vision of building an innovative financial environment that provides secure, sustainable investment solutions that benefit the entire community.”

He added, “The initiative aligns with the objectives of the Year of Community by promoting responsible saving habits and increasing financial awareness across all segments of society. It also reflects the spirit of partnership between the public and private sectors in fostering the values of giving and active economic participation, contributing to building a balanced, sustainable economy that serves future aspirations.”

Details

Investment in retail T-sukuk will be available through participating banks, with the name of the first bank to be announced on 3 November 2025. 

ALMAD Group set up to invest in projects that make a difference

Source: ALMAD Group. Key visual featuring a collage with the back of a man in black in two locations, and the brand logo superimposed on it. The structure at the top appears to be the Museum of the Future in Dubai.

Hong Kong-based ALMAD Group has gone live. The investment firm, founded by entrepreneur Dr Adrian Cheng, focuses on the digital space and emerging markets, including Mainland China, the ASEAN countries, the Middle East and beyond. Cheng, who is Founder and Executive Chairman, ALMAD Group, Executive Chairman of K11 by AC, and the Founder of K11, is no stranger to providing early-stage funding to empower technology startups. His successes include Xiaohongshu, XPeng Motors, and Micro Connect.

He said: “We are living in an era of profound change in the global economy, where new frontiers are emerging at an unprecedented pace. From ideation two years ago, we have been determined to build ALMAD Group as a movement propelling this shift, investing in transformative industries in emerging markets such as ASEAN and the Middle East, while advancing globally in digital assets and cultural industries.”

“Our mission is clear: to build what the next generation needs and to shape a future economy filled with possibilities.”

The group has three foci:

- Investing in transformative industries in emerging markets

- Breaking boundaries in digital and virtual assets

- Globalising the K11 by AC cultural ecosystem ALMAD Group's transformative industry priorities span culture, entertainment, sports, media, healthcare, commercial management and cultural tourism. These industries demonstrate strong commercial viability today, and also possess potential to shape the global economy and society in the next 20 years, the group said.

Cheng stated: “As ALMAD Group’s movement evolves, I look forward to unveiling more projects in the near future, showcasing the group’s commitment to transforming vision to action.”

ALMAD Group also aspires to lead in Web3 financial innovation, considering investments in digital asset, real-world asset (RWA) tokenisation and other emerging opportunities. Applications leveraging Blockchain technology and immersive digital experiences will also be explored.

Cheng launched K11, the world’s first cultural commerce model that integrates art, design, and retail, in 2008. His leadership has driven K11 projects such as Victoria Dockside, Hong Kong’s US$2.6 B global art and cultural district featuring K11 MUSEA.

ALMAD Group member K11 by AC’s core differentiation lies in its use of cultural content, co-creation of the brand experience, commercial management, and customer relationship management (CRM) capabilities targeting younger and more affluent demographics. The brand is redefining the cultural landscape by managing retail assets and art and cultural districts for a range of landlords.

K11 by AC’s Anime Intellectual Property (IP) business, Experience 11, is expanding in Mainland China and the Middle East. It curates experiences with leading anime IPs from around the world, leveraging its global art network and expertise. This segment strengthens the cultural ecosystem by capturing the 2D* or animation, comic, game and novel (ACGN) industries, which are highly popular across Gen Z and Gen Alpha market segments. K11 by AC is also scaling its Gentry Club business, a high-privacy luxury city club for cultural lovers themed around an artisanal lifestyle.

*2D or two-dimensional subculture refers to the animation, comics and game market.

FAB Group aims to lead in hospitality, dining and branding innovation across MENA

FAB Group, a new lifestyle and culinary venture created by UAE-based investment and development company DEAL Holdings, plans to launch popular boutique brands featuring Michelin-star talent from the UK and Europe across the MENA region, while also creating immersive culinary and lifestyle experiences.

FAB Group is committed to opening a minimum of 25 locations in the UAE over the next five years, with additional flagship destinations in Riyadh, Jeddah, Doha and the Red Sea.

Along with enhancing the region's growing reputation as a global culinary hub, the launch of FAB Group will support local talent, providing access to employment opportunities with roughly 800 jobs set to be created in the UAE alone over the next five years, and more across the wider GCC.

Andrew Cullen, FAB Group Regional F&B Director said: "Over the course of the next few months, we will be making some hugely exciting announcements which will significantly enhance the region's F&B offerings and redefine how the industry is perceived both on a regional and global level.

"The Middle East is already widely regarded as a leader in this space, with many of the world's biggest brands now operating in the region. Our ambition is to build on the fantastic work which has already been carried out and strengthen MENA's global status."

Abdalla Al'Mheiri, DEAL Holdings CEO added: "We are thrilled to introduce FAB Group to the Middle East market, marking a significant moment for the region's hospitality sector, which continues to thrive.

"Created by DEAL Holdings, FAB Group has big ambitions, and we are fully committed to making strategic investment, enabling the brand to evolve with a clear direction while achieving its long-term objectives."

FAB Group's portfolio will span fine dining, contemporary cuisine, café culture, nightlife, wellness concepts, and luxury brand collaborations. Several flagship projects are already in development and will be announced in the coming months.

A major investment and development company, DEAL Holdings boasts a substantial number of branded residences, hospitality projects and commercial real estate across the MENA region.

Webull Securities Malaysia launches Islamic banking channel

Webull Securities Malaysia, a Webull subsidiary, has launched of an Islamic banking channel. This new feature offers local investors the flexibility to choose to fund their Webull trading accounts via an Islamic bank or a conventional bank, making Webull Malaysia the first fully online retail brokerage platform in the country to offer such a service.

The Webull digital investment platform has over 40 M downloads globally. The dual banking gateway provides a flexible currency exchange and deposit system. For those seeking to fund their trading accounts with shari'ah-compliant funding options, this new feature, together with zero deposit fees, interest-free and a profit-sharing based banking facility, will enhance their overall trading experience, Webull Malaysia said.

Webull Malaysia's new Islamic banking channel aims to cater to local investors who are looking to invest in shari'ah-compliant equities and exchange traded funds (ETFs) across both the Malaysian and US stock markets. It complements an existing shari'ah indicator for US stocks and ETFs.

Kenneth Chan, CEO, Webull Malaysia said: "We are proud to be the first fully online retail brokerage platform in Malaysia to offer local investors the flexibility to fund their trading accounts with an Islamic bank. The introduction of the Islamic banking channel, along with improvements to the shari'ah stock screener, enables investors to fund their trading accounts in a way that best aligns with their investment needs and principles. By offering local investors the option to choose between Islamic and conventional bank funding for their Webull accounts, we aim to deliver inclusive, seamless and accessible trading experiences for all investors.

"We are also committed to enhancing the experience of local investors by offering a fully-localised version of the Webull MY trading app. This feature allows users to translate all content - from portfolio displays to the latest local and international news, as well as the educational materials provided - into Bahasa Melayu, ensuring an accessible and tailored experience for our Malaysian users. We are proud to support the needs of Malaysia's investment community and remain committed to developing innovative products that enhance convenience and accessibility for investors."

With the new Islamic banking channel, local investors can choose to fund their trading account with an Islamic bank in Malaysia. Local investors funding their trading account with an Islamic bank will be part of a profit-sharing based banking facility.

Islamic robo-advisor Wahed launches in UAE

Wahed, a global shari'ah-compliant fintech, has launched after having been granted Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). It is the country's first dedicated Islamic digital investment platform.

Wahed aims to democratise access to financial services in the UAE. With minimums of US$500, low fees, and no lock-in period for diversified shari'ah-compliant portfolios, Wahed removes the barriers to sophisticated investment management services that have been traditionally reserved for high-net-worth investors, the company said.

Since its launch in 2015, Wahed has attracted over 300,000 customers worldwide and has raised more than US$75 M in funding from family offices, institutions and high-profile backers, including Dubai Cultiv8, international footballer Paul Pogba and UFC champion Khabib Nurmagomedov. Both Pogba and Nurmagomedov are Wahed brand ambassadors.

Junaid Wahedna, CEO, Wahed said: "We consider the UAE our home. I grew up in the UAE and am very excited to bring our technology and investment efficiencies to the UAE's flourishing business environment in Abu Dhabi, ADGM and beyond. We are committed to contributing to an increase in the savings culture amongst the youth and professionals in a safe and shari'ah-compliant manner, in line with the cultural values of the UAE."

Arvind Ramamurthy, Chief of Markets at ADGM said, "We are pleased to welcome Wahed to ADGM's international financial centre and vibrant community and congratulate them on being granted the FSP by ADGM's FSRA. With a world-class progressive regulatory ecosystem, ADGM aims to catalyse the growth of fintech innovators by fostering a trusted, collaborative, and enabling marketplace for Abu Dhabi, the UAE and the wider region. The launch of Wahed in the UAE brings next-gen financial services and strengthens our growing digital economy".

Manulife Shariah Global REIT Fund launched

Manulife Asset Management Services Berhad (MAMSB) has launched the Manulife Shariah Global REIT Fund, the first shari'ah global REIT fund in the world available to retail investors*.

The fund invests in shari'ah-compliant real estate investment opportunities across the globe, providing Malaysian investors with more diversified sources of medium to long-term returns. Apart from traditional investments into residential, retail, office and industrial REITs, its global nature captures potentially higher growth opportunities stemming from “new economy” sectors like e-commerce, self-driving cars, the Internet of Things, and other technology-related sectors. The backbone for these new technologies and businesses is the demand for infrastructure buildout including data centres, telecommunication cell towers and warehouses in which the fund can invest.

The fund can also add exposure into the healthcare industry such as medical centres and retirement homes, which are areas of growth in face of the world’s aging population.

“Asian investors traditionally have good appetite for property investments due to the potential long-term income and capital appreciation, as well as for inheritance purposes. Investing in bricks and mortar, however, limits them to only a few physical residential or commercial assets typically in one or two jurisdictions, while global REITs can expose them to a wider universe of property investments including large-scale infrastructure projects that are typically off limits to individual investors,” said Jason Chong, CEO of Manulife Asset Management Services.

“Global REITs can withstand different market conditions largely due to its lower correlation with other asset classes. In fact, dividend yields from global REITs have been higher than 10-year government bond yields, and major REIT markets such as the US, Australia, Singapore, and Hong Kong have all performed strongly in past US interest rate hike cycles.”

The fund will invest a minimum of 70% to a maximum of 98% of its assets in listed Islamic REITs around the world. A minimum of 2% up to a maximum of 30% of its assets will be in Islamic liquid assets, which comprise of Islamic money market instruments and Islamic deposits with financial institutions.

Ng Chze How, Head of Retail Wealth Distribution, Manulife Asset Management Services, said the company is optimistic about REITs in the Hong Kong and Singapore. "Hong Kong REITs are currently at attractive valuations, and we see retail property benefiting from improvements in
real estate fundamentals. Singapore REITs continue to offer above average dividend income and is a good insular to global macroeconomic uncertainty," he said.

The fund is suitable for investors who wish to have investment exposure through a diversified portfolio of REITs globally, seek regular income and potential capital appreciation over the medium to long-term, and prefer shari'ah -compliant investments.

Manulife Asset Management Services is a wholly owned subsidiary of Manulife Holdings which is itself majority-owned by Canada-based Manulife Financial Corporation. MAMSB offers 50 unit trust and PRS funds in the asset classes of equity, fixed income and money market.

According to Manulife, when compared to physical properties, REITs are more liquid and have proven to be a more resilient asset class throughout different stages of an economic cycle.

Historically, shari'ah REITs have also generated higher total return than conventional REITs, partly thanks to the shari'ah screening requirements that limit the companies’ debt-to-equity ratio to 33%. Between September 2013 and end of December 2018, the IdealRatings Global REITs Islamic Select Malaysia Index - the fund’s benchmark - recorded a total return of 67%, compared to the S&P Global REIT Index return of 36%.

Details:

The fund aims to distribute all or part of its distributable income on a semi-annual basis. The classes that are offered for subscription by the fund are RM Class and USD Class at RM0.5000 and US$0.5000, respectively, during the initial offer period from March 12, 2019 to April 1, 2019. The minimum initial investment amount for the fund is RM1,000 or US$1,000, and the minimum additional investment amount is RM100 or US$100. The fund is distributed by the unit trust consultants of Manulife Asset Management Services.

*Based on research by Manulife Asset Management. The fund is the world’s first global shari'ah REIT fund that invests in REITs only and is made available to retail investors.

National Bonds announces a 20% increase in regular savers in 2017

National Bonds Corporation, the shari'ah-compliant savings and UAE investments company, has announced a 20% increase in regular savers in line with its commitment to increase financial literacy and happiness in the UAE. The company also reported up to 4% returns for National Bonds savers for a second year in row.

Mohammed Qasim Al Ali, CEO, NBC said: “We are passionate about increasing savings across the UAE and we measure our success on the number of savers year on year. We incentivise customers to save with us through competitive returns and we are very pleased to report an increase in regular saving by 20% in 2017. This is reflective not only of the growing confidence in National Bonds, but also the growing appetite among UAE residents to invest in their future.

"At National Bonds, we are committed to helping UAE residents save and as the latest results highlight, it pays to save with us. In fact, bondholders who have invested with us since inception have seen nearly 52% in total returns to date - a significant return on investment.”

Looking at annual returns, including annual profits and donated rewards, holders of Saving Bonds valued at more than AED50,000 received on average a return of 1.64%, while those with bonds valued at AED150,000 or more benefitted from an average return of 2.43%. Customers who had a balance of over AED350,000 in their accounts were rewarded with an average return of 3.62%.

National Bonds’ term sukuk also reported strong results for customers last year, with returns ranging from 1.75% up to 4% for customers with a three-year term. Additionally, holders of regular saver bonds saw an average annual return of 2.82%.

National Bonds also reported, in line with the overall growth of private wealth in the UAE, an increase to the numbers saving with their Prestige Programme. As private wealth continues in the UAE and wider region, 2017 saw an 8% increase in the account balance of Prestige customers. Interestingly, there was a 23% increase in customers who joined Prestige last year, 5% of which were new to National Bonds.

“Last year was a great year for our business. Not only did we witness an increase in returns for a second consecutive year, but we also witnessed stable growth across our business. In 2017, we remained bullish in our investment strategy, but always with our stakeholders’ interest in mind. This, in turn, produced strong results which we look forward to continuing into 2018,” said Al Ali.

National Bonds’ investment strategy remained robust in 2017, with a continued focus on capital preservation for customers and the long-term economic development of the UAE. Low-risk investments remained a key priority in 2017, with the aim of protecting the interests of bondholders and shareholders. This approach has ensured year-on-year increases in shareholder equity.

An example of successful investment by National Bonds can be seen through its retail arm, National Properties. In 2017, National Bonds delivered the second phase of Motor City Green Community. Also known as Casa Familia Villas, this project quickly became one of Dubai’s most sought-after residential addresses and was completed within the year, two months ahead of schedule.

Other areas of success in 2017 include National Bonds’ commitment to sustainability. Last year, National Bonds signed a deal with Dubai Electricity and Water Authority (DEWA) in Q417 to set up an AED2.5 billion green fund. The ground-breaking fund will be the first major green fund with a dedicated arm for shari'ah-compliant investments. The fund’s aim is to invest in multiple types of projects including renewable energy, retrofitting existing fossil fuel-based energy systems, energy efficiency and balancing technologies between electricity demand and supply.

Al Ali concluded: “This is a clear testament to the company’s robust financial strategy, clear vison for the future, as well as the hard work and dedication of our people. We have a number of exciting launches and investment opportunities in the pipeline and I am personally excited for what 2018 has to offer.”

National Bonds customers offered new SALAMA takaful packages

National Bonds Corporation, an investment company providing shari'ah-compliant financial products and services, has partnered with the Islamic Arab Insurance Company (SALAMA). The collaboration will provide National Bonds customers with access to tailormade takaful protection packages from SALAMA.

Mohammed Qasim Al-Ali, CEO, National Bonds Corporation, said: “This agreement ensures that our customers have access to unparallelled protection, exclusively designed for National Bonds savings products. At National Bonds, we are committed to maintaining our position as a trusted savings advisor and we always seek to enhance the services we offer to our customers. This partnership is an ideal addition to our existing product offering and, moving forward, we will remain focused on making saving simpler, more convenient, and more secure for residents across the UAE.”

The new SALAMA protection packages will be available exclusively to all National Bonds customers. Each package complements National Bonds’ savings plans and variously include life coverage, complimentary payment protection, as well as covers for personal accidents and critical illnesses. Based on customer feedback and demand, additional protection packages will be introduced.

Parvaiz Siddiq, COO, SALAMA said: “At SALAMA, we aim to cater to the diverse needs of our customers and provide them with leading, shari’ah-compliant protection solutions. We continue to innovate and evolve the solutions which we offer and these newly designed packages for National Bonds are a step in the right direction. Through these exclusive, personalised plans, we can ensure that customers are satisfied and their savings are protected. We look forward to the successes of this partnership and introducing new packages in the near future.”

SALAMA provides takaful solutions and is one of the oldest shari’ah-compliant insurance providers in the world.  

Details:

Customers can sign up for SALAMA packages through their National Bonds representative. Customers will then be provided with a direct contact at SALAMA to manage all of their protection needs, at the press of a button.

Arcapita, Mumtalakat acquire NAS United Healthcare Services

- NAS is a GCC provider of outsourced health insurance processing services

- Most GCC governments have either implemented mandatory healthcare insurance coverage or plan to launch initiatives in the next two to three years

Arcapita, the global alternative investment firm, and Bahrain Mumtalakat Holding Company (Mumtalakat), the sovereign wealth fund of Bahrain, have partnered to acquire an approximately 90% stake in NAS United Healthcare Services (NAS), a leading GCC provider of outsourced health insurance processing services.

Established in 2002 in Abu Dhabi, NAS is a regional leader in the provision of third-party administrator (TPA) services to more than 40 health insurance and takaful companies in the Arabian Gulf (GCC) region. NAS provides its customers a comprehensive network of more than 7,200 healthcare providers across the GCC region, the Middle East and India, as well as a complete suite of outsourcing and state-of-the art IT solutions in the field of healthcare benefits administration. 

NAS services a pool of more than 500,000 insured members and processes in excess of 3 million medical claims per year. The market for outsourced medical claims management in the GCC region is expected to grow significantly as more countries are expected to introduce compulsory health insurance for their expatriate populations as well as higher healthcare spending resulting from the general improvement in the quality of healthcare treatments available in the region.

Atif A. Abdulmalik, Arcapita's CEO said, "The global wellness and healthcare sectors are core focus areas for us; Arcapita's management has made a number of successful investments in these sectors in the past. NAS is a regional market leader with a strong technology backbone and highly scalable business model. The company is well-positioned to take advantage of the growth in the market for outsourced medical claims management in the GCC region. The demand for quality services such as those provided by NAS is expected to grow in line with the growth of the healthcare insurance market in the GCC region. We are pleased to collaborate with Mumtalakat and look forward to growing NAS together."

Mahmood Hashem Alkooheji, Mumtalakat's CEO, added, "Global population trends indicate the importance of increased healthcare solutions and by extension, health insurance services. In fact, between 2015 and 2050, the proportion of the world's population aged over 60 years will nearly double from 12% to 22% and global annual healthcare spending is projected to rise at a rate of 6% per year, reaching US$10 trillion by 2020. 

"As a result, the majority of GCC governments have either implemented mandatory healthcare insurance coverage or plan to launch initiatives in the coming two to three years. For example, the government of Bahrain is working on rolling-out a new mandatory health insurance law for Bahrainis and expatriates in the next one to two years. We believe NAS has significant potential to expand into regional countries and secure large contracts and we are delighted to partner with Arcapita to invest in NAS."

This joint investment between Mumtalakat and Arcapita is in line with Mumtalakat's financial services and healthcare investment strategies. With a growing global demand for healthcare services, rising health insurance penetration and an ageing global population, this acquisition represents an important investment designed to support a reduction in personal healthcare costs and support universal health coverage, both of which are in line with the United Nations' Global Development Agenda.

Arcapita is a global shari'ah-compliant alternative investment manager, with offices in Bahrain and Singapore. Arcapita's principal lines of business are private equity and real estate, and its management has a 19-year track record of over 70 investments with total transaction value in excess of US$30 billion.

Nearly half of EPF investments are in shari'ah-compliant assets

The Employees Provident Fund (EPF), Malaysia’s premier retirement savings fund, has reported an increase in quarterly investment income to RM11.51 billion for Q217 ended 30 June 2017, a year-on-year increase of 36.36% from RM8.44 billion during the same period last year.

CEO Datuk Shahril Ridza Ridzuan said, “Market conditions have improved from a year ago and all asset classes in our portfolio have recorded healthy year-on-year growth, with equities continuing as the main profit driver for the quarter under review.”

A total of RM820.71 million out of the total investment income of RM11.51 billion was generated for simpanan shari'ah (shari'ah-compliant deposits), while RM10.69 billion was generated for simpanan konvensional (conventional deposits). Simpanan shari'ah derives its income solely from its portion of shari'ah assets while income for simpanan konvensional is generated by its share of both shari'ah and non-shari'ah assets.

The value of EPF investment assets reached RM759.78 billion, a 3.92% or RM28.67 billion increase from RM731.11 billion, as at 31 December 2016. Out of the total investment assets, RM362.50 billion, or 47.71%, were in shari'ah-compliant investments.

Malaysia champions sustainable and responsible investing

Source: SC. Experts and stakeholders giving local perspectives on environmental, social and governance practices at Responsible Investment Forum in Kuala Lumpur, Malaysia, co-hosted by Securities Commission Malaysia and Bursa Malaysia. From left, moderator Martin Skancke, Chair, PRI; Yew Yee Tee, Chief Regulatory Officer, Bursa Malaysia; Zainal Izlan Zainal Abidin, MD, Development & Islamic Markets, SC; Ahmad Zulqarnain Onn, Head of Strategy & Executive Director for Investments, Khazanah Nasional; and Promod Dass, Deputy CEO, RAM Ratings.

Malaysia is taking the lead in promoting the sustainable and responsible investing (SRI) proposition based on its shared values with Islamic finance. As part of initiatives to generate greater awareness on responsible investing, Securities Commission Malaysia (SC) and Bursa Malaysia co-hosted the Principles for Responsible Investment-organised Responsible Investment Forum on 14 July in Kuala Lumpur.

Global SRI assets increased 25% over the two years from 2014 to 2016 to US$22.9 trillion. The Global Sustainable Investment Review 2016 reported that Malaysia with 30% share in Asia (excluding Japan) is the largest SRI market in the region, as it recognises shari'ah-compliant funds as part of the SRI universe.

Speaking at the forum, Zainal Izlan Zainal Abidin, MD, Development & Islamic Markets of SC said, “The increasing awareness and demand for sustainable and responsible investing globally is creating significant opportunities for further growth of Islamic finance, in view of the commonalities in the principles and values underlying both segments.

“SC continues to facilitate development of products and services that meet the requirements of both SRI and Islamic finance to ensure the capital market serves the needs of investors and issuers.”

Malaysia pioneered the development of shari'ah-compliant SRI through the formulation of the SRI sukuk framework by the SC in 2014. The SC is currently developing a framework for SRI investment funds and these initiatives are part of SC’s developmental agenda to facilitate the creation of an ecosystem conducive for SRI stakeholders.

The push towards SRI has also been championed by Bursa Malaysia. It launched the FTSE4Good Bursa Malaysia Index in December 2014 that is aimed at profiling companies with good environmental, social and governance (ESG) practices. The internationally-benchmarked FTSE4Good Bursa Malaysia Index was the first ESG index to be launched in Asia and has grown from the initial 24 constituents to 43, a testimony of the continued growth of ESG practices among corporates in Malaysia.

Bursa Malaysia CEO Datuk Seri Tajuddin Atan said, “Bursa Malaysia believes that there is a strong value proposition for companies to adopt, practice and report on sustainability in a meaningful manner. By placing sustainability at the core of the market, Bursa Malaysia sets to enable a win-win situation for key players across the value chain, especially for our listed issuers and investors.”

Martin Skancke, PRI Board Chair, who delivered the keynote at the forum, commented, “With interest in ESG growing rapidly, the event provided an opportunity for investors to build their knowledge and awareness of responsible investment, and to explore drivers, trends and practices.” He added, “The PRI’s core mission is to promote responsible investing and encourage more widespread ESG integration. It is vital that investors become active owners across all the asset classes in which they invest.”

Emirates Islamic presents 2017 investment outlook

Source: Emirates Islamic. Jamal (left) and Dugan (right).

Emirates Islamic, a UAE-based Islamic financial institution has shared the investment outlook for 2017 with its wealth management clients in Abu Dhabi and Dubai.

Presented by Gary Dugan, Chief Investment Officer (CIO) for Emirates NBD, Dealing with Global Disruptors - Investment Outlook for 2017 detailed disruptions to the global economy in the last year which have created challenges to conventional wisdom. Citing events such as Brexit, US President Donald Trump’s victory, the rise of Indian Prime Minister Narendra Modi and the launch of the Tesla car as global disruptors, Dugan said: “These political and technological events were major surprises to global financial markets, and have triggered significant shifts in the valuations of currencies and asset classes. More importantly, they have forced investors around the globe to rethink their long-term investment strategies.”

Explaining that the disruptions to conventional wisdom would most likely continue through 2017, Dugan advised, "Given the ongoing volatile global economic and political environment, it is important to invest in countries and sectors that offer long term growth and value. We believe for example, that sectors like technology and healthcare and countries like India offer relative value in current environment. As a general principle, investments should focus on preserving capital, while at the same time achieving reasonable profit levels.”

“Gold continues to play an important role for us. The yellow metal price has continued to deliver returns and remains a key diversification component for investment portfolios,” he added.

The investment outlook event was in keeping with Emirates Islamic’s vision to be a leading Islamic bank in the region. The bank has continued to build on its long-term relationship with customers, through a ‘customer first’ approach, which focuses on personalised financial services.

Jamal Bin Ghalaita, CEO, Emirates Islamic said: “Wealth management is one of the key pillars of the banking proposition at Emirates Islamic, and we aim to provide personalised wealth advisory services to our clients through a comprehensive platform, backed by in-depth knowledge in Islamic finance and extensive expertise in local and regional investments. The continued collaboration with global Islamic finance solutions providers also empowers Emirates Islamic to provide additional value to clients, and enables us to move closer to our goal of becoming the preferred provider of shari’ah-compliant wealth management solutions in the region.”

Interested?

Read the Suroor Asia blog post about the shari'ah standard for gold

The significance of a shari'ah standard for gold

Source: AAOIFI website. Emblem for the
shari'ah standard for trading in gold.

A shari'ah standard for gold investment is one of the most exciting developments for the precious metals industry in recent times.

The AAOIFI standard from the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) was launched at the end of 2016 to clarify how gold investments can be compliant with shari'ah law.

Under the rules of ribawi (ربوي)*, six items frequently change hands, and more stringent rules are needed to protect consumers from usury - which is prohibited in Islam - and theft, explained Shaokai Fan, Director, Central Banks and Public Policy, World Gold Council, speaking at a panel about the topic at the inaugural Asia Pacific Precious Metals Conference in Singapore. The event is organised by the Singapore Bullion Market Association (SBMA).

"There was a reluctance to embrace gold as a modern asset class (because of the) limited shari'ah guidance around gold," he said. "The existing guidance was fragmented and limited."

Lin discusses the potential for gold as an investment in Islamic finance.

As one of the premier and most respected standards bodies in Islamic finance, whose standards are widely used throughout the Islamic universe, AAOIFI standard has been welcomed by both Muslims and non-Muslims alike, Lin observed.

"Having this standard out there says without a doubt that gold is shari'ah-compliant," Fan said. "The standard is definitive and comprehensive."

Gold has low correlations with existing Islamic asset classes and is no more volatile than the existing assets. It is traded at much higher volumes than sukuk, and has powerful diversification capabilities, extending the "size of the playground" significantly, Fan said. "With gold (you) can move into a large asset class during times of financial distress," he noted.

He added that the World Gold Council is developing solutions that fit the needs of all Islamic classes. "We are working with Islamic financial instutions on creating new gold-based products, engaging with Islamic institutional investors and other buy-side institutions on the case for gold in Islamic finance," he shared.

Southeast Asia has a big part to play when it comes to trading gold the shari'ah way. In the March 2017 edition of Crucible, an SBMA publication, Lin calls Southeast Asia the "natural home for new shari’ah-compliant gold products". "Malaysia has long been a vanguard in Islamic finance with a robust array of shari’ah-compliant solutions catering to a wide variety of investors. Indonesia is the world’s most populous Muslim country and the government has prioritised the development of Islamic finance as a financial development policy. Gold has performed better in ringgit and rupiah terms over the past decade than in US dollar terms, reflecting its usefulness as a wealth preservation instrument for investors in the region.

"The World Gold Council is actively working with several Southeast Asian financial services providers to provide new gold financial products for retail consumers that will comply with the standard," he stated in the publication.

Two shari'ah-compliant gold investments are the SGX Kilobar Gold Contract and the HelloGold mobile gold investment platform.

Chin discusses the Singapore Kilobar Gold Contract.

Announced mid-December 2016, the Singapore Kilobar Gold Contract is the world’s first shari'ah-compliant gold futures. The contract was certified by Amanie Advisors, an advisory firm specialising in Islamic finance solutions, to be in compliance with the Shariah Standard on Gold as set out by AAOIFI.

William Chin, Head of Metals & Bulk Commodities, SGX, said the gold contract is a credible, transparent benchmark for the market and complements the over-the-counter market. "Shari'ah compliance will require product innovations (and) multiple efforts across multiple regions," he said.

HelloGold is a fintech company that offers the HelloGold gold trading platform via a mobile app. HelloGold has also been certified shari'ah-compliant by Amanie Advisors. Robin Lee, MD, HelloGold, noted that the opportunity for shari'ah-compliant gold investment products is huge when 815 million people have no choice but to maintain their wealth as cash or in savings accounts.

According to Lee, an estimated 300 million Muslims in the ASEAN region and China have no access to suitable Islamic financial products because minimum eligibility requirements are out of their reach. HelloGold, on the other hand, enables customers to buy 99.99% investment-grade gold from as little as RM1. The company charges a 2% per annum management fee.

Lee discusses the size of the Muslim target market for shari'ah gold investments.

Interest in HelloGold has been high, Lee said. A modest marketing campaign resulted in 1,000 customer signups, he said.

"The reaction has been overwhelmingly positive both from investors and financial institutions," summarised Lin. "When we were in Bahrain in December 2016 (introducing the standard) the crown prince (told us) 'Why did you take you so long to come up with this?'."

*A definition of ribawi. There are only six items considered under ribawi, gold, silver, wheat, salt, barley, and dates.

Initial tranche for Meethaq Sukuk Programme closes June 1

The debut issuance under the Meethaq Sukuk Programme, Series 1, closes on 1 June 2017.

Series 1 will be for OMR25 million with a green shoe option of a further OMR25 million, in case of oversubscription. It will have a tenor of five years - due 2022 - and will be issued through a public offer which will be open to Omani and non-Omani individuals as well as institutional investors.

Under the programme, Meethaq plans to issue sukuk certificates in several tranches up to a maximum amount of OMR100 million over a period of time which will be listed on the Bond and Sukuk market of Muscat Securities Market (MSM).

Advantages for the Meethaq Sukuk Programme include:

• Strong investment grade entity rating of Baa1 by Moody’s, BBB- by S&P and BBB by Fitch
• Market leader with 36% share in Islamic financing and 34% of total assets in Oman
• Strong Shari'ah Supervisory Board and Compliance Framework under the guidance of renowned shari'ah scholars.
• Shari'ah-compliant fixed income investment opportunity with stable returns and the backing of Meethaq Islamic Banking.
• Attractive return of 5% per annum payable semi-annually over a five-year period

Source: Meethaq website. Poster for Meethaq's sukuk programme.

Interested?

Read the FAQ or apply

The minimum application size is OMR1,002 per applicant for subscription of a minimum 1,000 certificates of OMR1.002 each (inclusive of offer expenses of 2 baisa per certificate) and thereafter in multiples of 100 certificates. Applications for the subscription of fewer than 1,000 certificates will not be accepted.

Eastspring Investments Islamic Small-cap Fund seeks to leverage pricing inefficiencies

Eastspring Investments has launched the Eastspring Investments Islamic Small-cap Fund, a shari'ah-compliant equity fund that provides an alternative for diversifcation into small-cap stocks. Eastspring Investments is an asset manager in Asia that manages over US$146 billion assets as at 31 December 2016 on behalf of institutional and retail clients. it is the Asian asset management business of Prudential, one of the world’s largest financial services companies.

“Whilst the general interest is still for income generating funds, small-cap funds have their place in providing good growth potential to one’s investment portfolio,” says Raymond Tang, CEO, Eastspring Investments. “This can be seen from the inflows we’ve been getting for our existing equity funds."

The fund was launched to meet the demands of investors with the appetite for long-term equity growth funds following the soft closure of the Eastspring Investments Small-cap Fund in order for the latter fund to continue to deliver good performance to existing unit holders. Although the fund will be a shari'ah-compliant version of the company’s existing small-cap fund, the fund will be managed by the same award-winning equity investment team who are experienced in managing Islamic and small-cap funds, and fund managers will adopt the same investment philosophy of stock picking, the company said. 

“We will generally pick companies with good business model that has superior earnings growth. We like companies with solid management who is able to weather through the ups and downs of the business cycle. And these stocks should be accompanied by a strong balance sheet and fundamentally undervalued,” says Tung Yin Wai, Head of Investment, Retail & Institutional Business (Domestic). 

"Usually the small-cap universe is under researched and undeservingly traded below their intrinsic value. Fund managers like us use this opportunity to unearth these small-cap gems and exploit these pricing inefficiencies.”

“We have experienced fund managers and analysts who are very passionate about small-cap investing. As fund managers, we derive a sense of satisfaction from being able to unearth these small-cap gems and help them to discover their true value. And to the companies that we are invested in, we are happy to be a shareholder and proud to be part of their success stories,” added Tang. 

According to Eastspring Investments, Malaysia equities are back in the limelight with improved fundamentals and attractive valuations compared to their regional peers. In addition, the Malaysian government will introduce the Small and Midcap PLC Research Scheme to conduct research on 300 companies. Government-linked investment companies will be setting aside RM3 billion to be invested in small and medium capitalised stocks. 

“We believe that corporate earnings should recover this year and most importantly these corporate captains are again confident enough to expand their capacities. A weakness in the ringgit is actually a blessing in disguise and have boosted the competitiveness of many of our Malaysian corporates. They are using this window of opportunity to move up the value chain and grab market share,” says Tung. 

Interested?

The fund is available at Eastspring Investments and its authorised distributors. The initial offer period for the fund runs for 21 days commencing from 25 May 2017 to 14 June 2017. Units are priced at RM0.50 during its initial offer period after which its net asset value per unit will fluctuate based on market movements. The minimum initial investment (lump sum) is RM1,000

Editor's comment: All investments are open to risk and investments may grow but also shrink, even if the original forecast is for a growth market. It is best to do some due diligence on expected trends in the market and the track record of the fund managers before parting with any money.

Now is the time to buy Islamic art

• The Louvre Paris will lend its Islamic art expertise to the Abu Dhabi branch

• Art institutions like Maraya Art Center constitute a soft power. This, in the long run, will reflect positively on the country’s economy

• Art from the region remains undervalued because the modern art scene is still developing


Islamic art breaks the negative stereotype associated with the word ‘Islamic’ in the world – particularly, the West, says moderator Ahmed Salim, Founder of 1001 Inventions UK, an international science and cultural heritage organisation that raises awareness of the creative golden age of Muslim civilisation. Moderating a session on Islamic art during Global Islamic Economy Summit (GIES) 2016, he also said that now is the time to invest.


Mai Eldib, Consultant at Sotheby’s Egypt, agreed. She noted that there are two distinct types of Islamic art, sought after by different audiences. The art from the era of the Islamic empire and until the year 1900, attracts mostly Western buyers, whereas post-1900 Arab and Iranian art, not necessarily created by Muslims, sells more in the MENA region.

“When it comes to investing in art, it’s a tricky discussion,” Eldib said, “Art doesn’t yield dividend like bonds or stocks, yet it is now very much coveted as an asset. Art from the region remains undervalued because the modern art scene is still developing. However, events like Art Dubai are placing local and regional artists on the international map. Once an artist surpasses their niche aspect of being an Egyptian, Saudi, Emirati, etc. artist, the value of their art goes up.”

Yannick Lintz, Islamic Art Director at The Louvre Museum in Paris, France said the Louvre had begun with a focus on Islamic art in France in a room with contemporary design and is branching outwards. "..we are always working to develop programmes outside the confines of the museum itself. We now have accords with museums in the Islamic world in places like Cairo, Tehran, and Istanbul. The time is now to create an international network of directors of Islamic arts museums,” he said.

Lintz added that the Louvre, Paris will lend its expertise to the Louvre Abu Dhabi, offering advice on how, where, and when to buy pieces of Islamic art to add to the museum’s current collection of 300 pieces. The larger the local collections grows, she noted, the less the Louvre Abu Dhabi will depend on pieces coming from France.

Giuseppe Moscatello, Art Director at the UAE’s Maraya Art Foundation, explained that art institutions like Maraya Art Center constitute a soft power that will reflect positively on the country’s economy in the long run. “The art scene in the UAE – and the region – is looking at positive growth, seeing as a majority of the population in the Gulf is under the age of 30, and many young artists are emerging. These artists are most often represented by galleries, which is important to further their careers, and the government is supporting our efforts.”

Walton evening talk to focus on shari'ah-compliant land investments

Pergas, the Singapore Islamic Scholars and Religious Teachers Association, will speak during an evening talk about its shari'ah-compliant endorsement of the Walton Group's business model and investment offerings.

The Walton Group (Walton) is a privately-owned real estate investment and development multinational group which concentrates on pre-development land investments in North America. As of May 2016, the shari'ah endorsement applies to the 12 regions where Walton-administered lands are located: Arizona, California, Colorado, Florida, Georgia, North Carolina, South Carolina, Maryland, Virginia, Texas, Tennessee and Oklahoma.

The talk, titled Working towards Your Investment and Your Community, will be in two parts. Shahirah Mohamed Salleh, Head, Syariah Advisory and Services of Pergas Investment (MSc in Islamic Banking and Finance) will cover:

The basis for a shari'ah-compliant endorsement
Benefits and importance of investing in shari'ah-endorsed products

The potential role of Walton's pre-development land investments in achieving financial goals will also be discussed by Tee Wai Wai, Director of Sales, Walton International Group.

Source: Walton.

Interested?

Date: 22 June, 2016
Time: 6pm to 8pm

Agenda:
5.30pm to 6pm: Registration and networking
6pm to 6.30pm: Discussion with Pergas
6.30pm to 7.14pm: Discussion with Walton
7.14pm to 7.30pm: Adhan and buka puasa (call to prayer and breaking of fast)
7.30pm onwards: Maghrib prayer*, dinner and networking

Venue: Raffles Place, Republic Plaza I, Level 35-01/02
Parking directions: Please keep left when entering the Republic Plaza car park. The entrance to the building is via the first floor of the main lobby. It costs S$3 every half-hour from Mondays to Fridays from 7am to 5pm, and S$3 per entry after 5pm. 

The invitation-only** session can accommodate a maximum of 25 people - first come, first served. Request an invitation from Faith Ong Yan Ying, VP, Walton by email: Yanying.ong at walton.com

*Prayer facilities will be provided. Please come prepared if possible to avoid congestion in the bathroom area.

**The invitation is not an offer to sell nor a solicitation of an offer to buy any land investments, which may only be conducted using documentation prepared in accordance with applicable law. 

Shari'ah-compliant endorsements of land investment products covered in noon talk

Pergas, the Singapore Islamic Scholars and Religious Teachers Association, will participate in a noon talk about its shari'ah-compliant endorsement of the Walton Group of Companies' business model and investment offerings.

The Walton Group of Companies (Walton) is a multinational privately-owned real estate investment and development group which concentrates on pre-development land investments in North America. As of May 2016, the shari'ah endorsement applies to the 12 regions where Walton-administered lands are located: Arizona, California, Colorado, Florida, Georgia, North Carolina, South Carolina, Maryland, Virginia, Texas, Tennessee and Oklahoma.

The talk, titled Fast & Learn, will be in two parts. Shahirah Mohamed Salleh, Head, Syariah Advisory and Services of Pergas Investment (MSc in Islamic Banking and Finance) will cover:

• What shari'ah-compliance means to investors
• What kinds of investments are deemed shari'ah-compliant

The credentials and track record for Walton investments will also be discussed by Tee Wai Wai, Director of Sales, Walton International Group.

Source: Walton eDM.

Interested?

Date: 15 June, 2016
Time: 12.15pm to 1.30pm (12pm registration and networking)*

Venue: Raffles Place, Republic Plaza I, Level 35-01/02
Parking directions: Please keep left when entering the Republic Plaza car park. The entrance to the building is via the first floor of the main lobby. It costs S$3 every half-hour from Mondays to Fridays from 7am to 5pm. 

The invitation-only** session can accommodate a maximum of 25 people - first come, first served. Request an invitation from Faith Ong Yan Ying, VP, Walton by email: Yanying.ong at walton.com

*Prayer facilities are available. No meals will be provided for noon sessions during the fasting month. Participants are requested to make their own arrangements for lunch as required.

**The invitation is not an offer to sell nor a solicitation of an offer to buy any land investments, which may only be conducted using documentation prepared in accordance with applicable law.

posted from Bloggeroid

Labuan IBFC begins ASEAN roadshows with session on shari'ah-compliant solutions

Labuan International Business and Financial Centre (Labuan IBFC), Asia Pacific’s midshore international business and financial centre, has launched a series of roadshows across ASEAN.

The Labuan IBFC ASEAN Roadshow 2016 will visit key countries in ASEAN and, for the first time will include events as well as closed door briefings in the emerging economies of Cambodia, Laos, Vietnam and Myanmar. The roadshows have kicked off in Jakarta, Indonesia, will continue through till end-July.

“Our approach to the roadshow this year is distinct as we are targeting business owners in the region looking to internationalise or even regionalise their businesses. We believe that with as businesses embrace higher tax transparency requirements, it would be natural for them to consider to establishing substance in a well-regulated jurisdiction facilitate cross border transactions and investments.” said Danial Mah Abdullah, Chief Executive Officer, Labuan IBFC.

He went on to state that the roadshow will also focus in meeting the wealth management needs in the region, adding that as ASEAN has a large Muslim population, the Jakarta chapter of the roadshow focuses on shari'ah-compliant wealth management solutions.

Themed Innovative Solutions towards Islamic Wealth Management the kickoff masterclass was aimed at Indonesian service providers, intermediaries and high net worth individuals who are looking to better understand shari'ah-compliant wealth management offerings, wealth preservation and succession planning solutions.

Mah, who is also the Deputy Director General of Labuan FSA, said, “What makes Labuan IBFC different is that it was established with the main aim of intermediating crossborder trade and investments in the region. The expectations are that intra-Asia and ASEAN trade and investments will grow, and there is a need for a well-regulated jurisdiction in the region able to facilitate these trades and investments. ”

The masterclass included a presentation on the Labuan International Waqf Foundation, a shari'ah-compliant wealth management tool, which incorporates the element of waqf* (وقف‎) in its structure.

Labuan IBFC is the only jurisdiction in the region offering foundation structures including Islamic foundations with waqf elements built in.

The event also included a panel session titled Opportunity and Challenges: Islamic Wealth Management in Asia with Dr Aida Othman, Director at ZICO Law Shariah Advisory Services, Maikel Sajangbati, CEO and Founder of MaeSa Consulting Indonesia as well as Aderi Adnan, Business Development Director of Labuan IBFC.

The panel focused on the new Islamic wealth management environment in light of more stringent global regulatory requirements, evolving Islamic wealth management strategies amidst changing family legacy mindsets, experiences and cultural differences in Asia.

Interested?

View event details


*Waqf refers to a donation made for a religious, educational or charitable cause.

posted from Bloggeroid

Walton announces its offerings are shari'ah compliant in Singapore

Presentation of the certificate for shari'ah compliance. From left: Mohamed Hanif Zakariah, General Manager, Pergas Investment Holdings, Associate Professor Dr Hikmatullah Babu Sahib, Shariah Committee Member of FSAC, Gary Tom, President Asia, Walton International Group and Felix Tang, Senior Vice President, Operations, Walton International Group.

The Walton Group of Companies (Walton), a multinational privately-owned real estate investment and development group which concentrates on land in North America, has announced that its business model and investment products have been endorsed by the Financial Shariah Advisory and Consultancy (FSAC) of Singapore.

FSAC, one of the entities under Pergas Investment Holdings (PIH), assisted in the endorsement as Pergas has dedicated advisory expertise focusing on structuring investments to align with shari'ah principles. PIH is the business arm of Pergas, the Singapore Islamic Scholars and Religious Teachers Association, and a non-profit organisation that is much-respected by the Muslim community for advice not only in daily and religious affairs, but also advice on investments.

Source: Walton International Group. From left: Mohamed Hanif Zakariah, General Manager, Pergas Investment Holdings, Dr Shamsiah Abdul Karim, a member of the FSAC Shariah Panel, Ustaz Pasuni Maulan, Vice Chairman of Pergas Investment Holdings and part of the FSAC Shariah Panel, Associate Professor Dr Hikmatullah Babu Sahib, Shariah Committee Member of FSAC, Gary Tom, President Asia, Walton International Group and Felix Tang, Senior Vice President, Operations, Walton International Group.

Gary Tom, President, Asia of Walton International Group, said the Pergas endorsement "is important as some of our clients are Muslims and they can now be reassured that our investment products arc shari'ah-compliant." According to Tom, Walton's philosophy is aligned to shari'ah law, which emphasises that business is conducted in a just and ethical way.

Walton takes a long-term and disciplined approach to land development and real estate investment. Walton, whose Singapore office is celebrating its 20th anniversary this year, currently has US$5 billion worth of assets under management in North America, and has a good track record in providing solid returns, he said.

The Walton business model is to buy land and then develop it, getting the necessary approvals and then erecting buildings and putting in essential infrastructure such as roads, water pipes and wiring for electricity. The company will also maintain the infrastructure, and is currently managing 22 development projects in Alberta and Ontario in Canada, as well as in Washington DC, North Carolina, Florida, Texas and Colorado in the US. The projects are varied, from technology parks to commercial buildings and residential areas.

"We don't just buy any property in any location – there is research and due diligence to identify the best lands that have the highest potential. We want to be the dominant land holder in the area as we can then invest the most. We need partners, co-owners to be the dominant land holder," Tom explained. "We don't run out of capital with a co-ownership structure."

The co-ownership arrangement is not short-term, nor speculative, Tom added. The average hold duration of the asset is 8.45 years, yielding an average internal rate of 12.47% and average realisation multiple of 2.41x.

"It is not something to take lightly or something that has been an overnight success. We believe in a simple investment, a transparent investment. A business doesn't have to mean taking advantage and squeezing the last ounce of profit," said Tom. "But we also believe in selecting the right business partners."

The decision to seek shari'ah-compliant endorsement was taken in 2015. Tom said that Walton has been involved in the Muslim community in Singapore since 2003, participating in various outreach events with Berita Harian, Halal-U and Critical XChange Singapore (CRIX). "We want to engage with the community and have transparency with the community," he said. "Our values are similar: transparency and simplicity of investment, and involving benefit to the community... Today just seems like the natural progression, the natural step that was started with our Walton colleagues many years ago. Our understanding is that the Walton products are compliant with the Islamic teaching for a socially responsible investment product."

Walton's shari'ah endorsement is based on land being a preferred assset in Islam; that the investment structure meets shari'ah parameters; and the investment structure is considered in the context of Muslims living in Singapore.

Mohamed Hanif Zakariah, GM of PIH, shared that FSAC is the PIH arm focused on creating awareness about Islamic finance. "Our priority is to provide a holistic financial shari'ah support system to individuals and partners, delivering or basically finding out what are practical and permissible solutions unique to the Singapore context," he said. "We always on the lookout for key partners. We consider Walton one. Their business model is very community-centric."

Associate Professor Dr Hikmatullah Babu Sahib, a member of the FSAC Shariah Panel, likened the seeking of shari'ah compliance in doing business with Muslims to getting a driving licence before driving a car. He noted that Walton had "taken the bold step of reaching out to the Muslim community and taken the right step of asking our approval".

"The underlying assets they own are halal and stable," he said. "Walton has generally met with certain shari'ah principles, and conformed to the spirit and substance of shari'ah."

Under the exhortation to "Make it easy for them and do not make it difficult for them"* the FSAC Shariah Panel has made the decision easier for both investors and the committee and given Walton the seal of approval for both its business model and its products, Dr Hikmatullah said.

"The ethics and the legality were scrutinised," he said. "Walton met the criteria we have set for approval. The underlying assets are halal, because land is by virtue a halal asset. The lands are generally owned by Walton. There is no doubt about the legality of the land. Given the constraints that they have according to the law of the States - we have to take into consideration those legal issus without unduly imposing too much hardship on the business to take."

Suryana binte Safie, VP of Sales, Walton International Group, elaborated that all land in the US must be insured by law, and that the land title insurance is done by First American Title Insurance, which is not takaful.

"There is no land title insurance (that is) Islamic in North America yet, (so FSAC) had this dispensation to engage First American Title Insurance," she said. "If (there is) in future takaful to insure land, then Walton should (work with) the takaful."

Suryana.

Ustaz Mohamad Hasbi Hassan, Chairman of Pergas, said, "There is an increasing demand b the global Muslim community for shari'ah-compliant investments. In Singapore, the shari'ah compliant investments available in the market are limited. The Muslim community in Singapore has been victims of investment scams and Pergas is aware of the issues surrounding such scams. It is our aim to not only educate the community but to ensure that any investments that we endorse should have a proven track record. We feel the need to protect our community from such scams and by such endorsement. It is also our way of performing due diligence."

Walton's clients in Singapore and Malaysia account for 5.2% of the overall global client base of 100,000 investors. Tom said there are 22,000 investors in Singapore, and that China, Malaysia and Japan are also major markets for Walton.

Tom added that the decision to obtain shari'ah compliance is about supporting communities where Walton is already present, rather than to develop Islamic products. Walton's next steps, he said, will be to work on building awareness with partners in the light of the compliance.

*"..make things easy and do not make things difficult..": عَنِ ابْنِ عَبَّاسٍ عَنْ النَّبِيِّ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ أَنَّهُ قَالَ عَلِّمُوا وَيَسِّرُوا وَلَا تُعَسِّرُوا وَإِذَا غَضِبَ أَحَدُكُمْ فَلْيَسْكُتْ

2137 مسند أحمد وَمِنْ مُسْنَدِ بَنِي هَاشِمٍ

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