--------- Forwarded message ---------- From: Middle East Global Advisors <[email protected]> Date: Mon, Aug 3, 2015 at 12:10 PM Subject: Regrouping to build takaful markets in the UAE To: [email protected]
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[image: Middle East Global Advisors logo] 3rd August 2015 [image: Finance Forward - Your definitive source of insights & intelligence on the financial world and the political economy of the MENASA region] Home <http://meglobaladvisors.us3.list-manage1.com/track/click?u=4bccbea900e54b305a9c6a37c&id=f43f342707&e=f901ca2b34> About <http://meglobaladvisors.us3.list-manage.com/track/click?u=4bccbea900e54b305a9c6a37c&id=77719dbb4a&e=f901ca2b34> Insights <http://meglobaladvisors.us3.list-manage.com/track/click?u=4bccbea900e54b305a9c6a37c&id=b6ff54d017&e=f901ca2b34> Blog <http://meglobaladvisors.us3.list-manage1.com/track/click?u=4bccbea900e54b305a9c6a37c&id=ef004bf392&e=f901ca2b34> [image: Hero Image] *FAST FINANCE <http://meglobaladvisors.us3.list-manage.com/track/click?u=4bccbea900e54b305a9c6a37c&id=f6c7c16770&e=f901ca2b34>* Talks over the Trans-Pacific Partnership stumbled and one of the sticking points deals with the Japanese auto supply chain which includes non-TPP countries like Thailand. The Japanese auto industry believes that strict rules about origin could harm it which show the complications of a regional approach to trade negotiations. While the TPP is touted as covering 40% of global trade, it does not include China or India, both of which are likely to be key players in future world trade. The absence of such key economies for the world and for the MENASEA region led Finance Forward to resume reading the 360,000 Google search results for “WTO talks collapse” and wonder whether to look forward to global treaty talks resuming if the TPP also fails. *Regrouping to build takaful markets in the UAE <http://meglobaladvisors.us3.list-manage.com/track/click?u=4bccbea900e54b305a9c6a37c&id=ede9524ccb&e=f901ca2b34>* In its report released last week, Standard & Poor’s rating services highlighted the challenges confronting the GCC Takaful industry in light of the regulatory changes made for the insurance industry in the Gulf. The recent regulatory changes include the doubling of the minimum capital requirements in Oman; more stringent solvency measures in Bahrain; and enhanced liquid asset requirements in the UAE and Kuwait. In the long run the new regulatory requirements are expected to positively affect the financial strength of this sector; however in the short-term regulatory enhancements are likely to boost competition in an already over-crowded market leading to increased costs for both the local and foreign players. [image: The price of copper has fallen sharply] The change does not affect takaful markets uniformly and it spells trouble for takaful operators in smaller markets for which the UAE serves as an example. Takaful operators will increasingly find it difficult to cover their operating expense and earn a market rate of return for shareholders after paying higher commissions to generate their takaful contributions. An extra challenge comes because the operating expenses will be proportionally higher relative to their smaller base of shareholder revenue highlighting their lack of scalability. Consider the 7 largest takaful operators in the UAE for which there is data in *Zawya Islamic*. These operators generated gross policy contributions totaling $582 million and paid commissions of 14.1% of the gross policy contributions. The 7 largest takaful operators in Saudi Arabia (the far biggest GCC takaful market) generated $5.5 billion in gross policy contributions in 2014 and paid out just 5.0% in commissions. * Continue Reading * <http://meglobaladvisors.us3.list-manage.com/track/click?u=4bccbea900e54b305a9c6a37c&id=e2c9f680a2&e=f901ca2b34> [image: WIBC 2015 Ad] <http://meglobaladvisors.us3.list-manage2.com/track/click?u=4bccbea900e54b305a9c6a37c&id=27824bcca6&e=f901ca2b34> *Leveraging impact investors to expand an SME development fund in Jordan <http://meglobaladvisors.us3.list-manage1.com/track/click?u=4bccbea900e54b305a9c6a37c&id=08acc102c1&e=f901ca2b34>* Social impact bonds (SIBs) are just beginning to transform how private capital can be attracted to social development projects, as well as ways in which charitable funds can be mobilized in a way that is more financially sustainable by attracting government support if it meets extra-financial goals. These bonds have been adapted to also fit within a Shariah compliant structure. The first, issued by Malaysian sovereign wealth fund Khazanah, is an SRI (socially responsible investment) sukuk to fund schools which requires investors to forego profits if certain benchmarks are met by the schools, providing the typical pay-for-success structure that SIBs deliver. The mechanism of reducing the coupon on sukuk based on measurable social impacts makes Khazanah’s sukuk unique but also opens up many possibilities for alternative social financing structures. One such structure could be used in Jordan to leverage the government’s investment in a Governorate Development Fund (GDF). The GDF was established in 2012 with JD 150 million ($212 million) to invest in SMEs in underprivileged areas with an anticipation of becoming financially sustainable by taking minority stakes in businesses that generate an economic development and job creation benefit. * Continue Reading * <http://meglobaladvisors.us3.list-manage.com/track/click?u=4bccbea900e54b305a9c6a37c&id=77af38b611&e=f901ca2b34> [image: World Islamic Banking Competitiveness Report 2014-15 Front Cover] <http://meglobaladvisors.us3.list-manage.com/track/click?u=4bccbea900e54b305a9c6a37c&id=4b1688b0db&e=f901ca2b34> *Featured Research* World Islamic Banking Competitiveness Report 2014-15 Islamic banking assets are 33% of total assets in the GCC compared to 14% in ASEAN, 12% in South Asia and in the single digits in other markets. *Download Report* <http://meglobaladvisors.us3.list-manage.com/track/click?u=4bccbea900e54b305a9c6a37c&id=1f8c646627&e=f901ca2b34> Featured Events Date Location Global Ethical Finance Forum <http://meglobaladvisors.us3.list-manage.com/track/click?u=4bccbea900e54b305a9c6a37c&id=9d485320d4&e=f901ca2b34> 1 to 2-Sep-2015 Edinburgh, SCT 22nd Annual World Islamic Banking Conference <http://meglobaladvisors.us3.list-manage.com/track/click?u=4bccbea900e54b305a9c6a37c&id=da2be2fd48&e=f901ca2b34> 1 to 3-Dec-2015 Manama, BH -- -- You received this message because you are subscribed to the Google Groups "Kantakji Group" group. To post to this group, send email to [email protected] To unsubscribe from this group لفك الاشتراك من المجموعة أرسل للعنوان التالي رسالة فارغة, send email to [email protected] For more options, visit this group at http://groups.google.com/group/kantakjigroup?hl=en سياسة النشر في المجموعة: ترك ما عارض أهل السنة والجماعة... الاكتفاء بأمور ذات علاقة بالاقتصاد الإسلامي وعلومه ولو بالشيء البسيط، ويستثنى من هذا مايتعلق بالشأن العام على مستوى الأمة... عدم ذكر ما يتعلق بشخص طبيعي أو اعتباري بعينه باستثناء الأمر العام الذي يهم عامة المسلمين... تمرير بعض الأشياء الخفيفة المسلية ضمن قواعد الأدب وخاصة منها التي تأتي من أعضاء لا يشاركون عادة، والقصد من ذلك تشجيعهم على التفاعل الإيجابي... ترك المديح الشخصي...إن كل المقالات والآراء المنشورة تُعبر عن رأي أصحابها، ولا تعبّر عن رأي إدارة المجموعة بالضرورة. --- You received this message because you are subscribed to the Google Groups "Kantakji Group" group. 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