---------- Forwarded message ---------- From: Finance Forward <[email protected]> Date: Mon, Nov 9, 2015 at 10:47 AM Subject: Islamic finance to be instrumental in supporting Morocco's future growth goals To: Samer <[email protected]>
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[image: Middle East Global Advisors logo] 9th November 2015 [image: Finance Forward - Your definitive source of insights & intelligence on the financial world and the political economy of the MENASA region] Home <http://megaevents.us3.list-manage.com/track/click?u=4bccbea900e54b305a9c6a37c&id=f0470a3b53&e=f901ca2b34> About <http://megaevents.us3.list-manage1.com/track/click?u=4bccbea900e54b305a9c6a37c&id=3f16b3e92b&e=f901ca2b34> Insights <http://megaevents.us3.list-manage2.com/track/click?u=4bccbea900e54b305a9c6a37c&id=55418b146b&e=f901ca2b34> Blog <http://megaevents.us3.list-manage1.com/track/click?u=4bccbea900e54b305a9c6a37c&id=d7f461ddd9&e=f901ca2b34> *FAST FINANCE <http://megaevents.us3.list-manage.com/track/click?u=4bccbea900e54b305a9c6a37c&id=cb7811edd6&e=f901ca2b34>* Strong employment gains in the US during October and testimony given by Janet Yellen in front of Congress this week are raising expectations that the Federal Reserve will raise rates at its December meeting. The rise in US rates, if it occurs as expected, could boost efforts by the European Central Bank to stimulate the Eurozone economy by lowering the Euro relative to the dollar. The efforts to stimulate the economy in the Eurozone would have a positive spillover in North Africa including for Morocco which is targeting automotive exports to Europe as well as being a financial hub for West Africa (see below). *Debut sukuk from IDB-linked Islamic Corporation for the Development of the Private Sector planned by year-end, could reach $200-300m <http://megaevents.us3.list-manage1.com/track/click?u=4bccbea900e54b305a9c6a37c&id=26f7052061&e=f901ca2b34>* The Islamic Corporation for the Development of the Private Sector (ICD) is expected to issue its debut sukuk by year-end to fund its geographical diversification efforts which are focused on Sub-Saharan Africa as well as Asia. The size of the sukuk is not mentioned in the Fitch Ratings report reaffirming the AA rating <http://megaevents.us3.list-manage1.com/track/click?u=4bccbea900e54b305a9c6a37c&id=15db0fcc5d&e=f901ca2b34> it has had for the ICD in 2014 that coincided with the ICD’s announcement that it would seek $1.2 billion in financing from long-term debt <http://megaevents.us3.list-manage1.com/track/click?u=4bccbea900e54b305a9c6a37c&id=b0022d70fe&e=f901ca2b34> including sukuk. Based on our analysis, *Finance Forward* expects that any issuance by the end of 2015 will likely be in the range of $200 to $300 million. The sukuk structure expected by year-end is a wakala sukuk which requires a mix of ‘tangible’ assets (either equity-based structures, leasing, or sukuk) and ‘intangible’ assets (financial receivables) with a minimum tangible assets of between 30% and 51% depending on the Shariah preference. Even using the most conservative assumptions of a 51% tangible asset level plus assuming that only 50% of the ICD’s equity interests would be eligible to be included give sufficient assets for more than benchmark sized. <http://megaevents.us3.list-manage1.com/track/click?u=4bccbea900e54b305a9c6a37c&id=240666306b&e=f901ca2b34> [image: Event Banner Ad Placeholder] <http://megaevents.us3.list-manage.com/track/click?u=4bccbea900e54b305a9c6a37c&id=6e2509ad91&e=f901ca2b34> *Islamic finance to be instrumental in supporting Morocco's future growth goals <http://megaevents.us3.list-manage1.com/track/click?u=4bccbea900e54b305a9c6a37c&id=7578270439&e=f901ca2b34>* Morocco’s first Islamic finance subsidiary, Dar Assafaa which is wholly owned by Attijariwafa Bank, started operations in October <http://megaevents.us3.list-manage1.com/track/click?u=4bccbea900e54b305a9c6a37c&id=95210ff1e4&e=f901ca2b34>. Prior to the Islamic banking law passed earlier this year, a handful of conventional banks and other financial institutions in the country launched ijara, musharaka and murabaha Islamic banking products. However, through 2011, the sector was worth little more than Dh1bn ($100 million). There were several reasons behind this failed attempt- lack of a supportive regulatory framework due to shortage of expertise, double taxation issue along with restrictions on marketing- all leading to a non-existent participative banking sector. Since 2011, there has been a series of challenges that have hindered the development which included the European debt crisis which decreased imports and economic activity in countries like Morocco. However a change in the political leadership in 2012, led by the moderate Islamist Justice and Development Party, pushed forward measures including those making changes in the banking and finance regulations that could accommodate and promote the Islamic banking sector in Morocco. In January 2012, the Moroccan government drafted a bill regulating *shariah-*compliant banking products and allowing foreign Islamic banks to operate in the country’s banking sector. <http://megaevents.us3.list-manage.com/track/click?u=4bccbea900e54b305a9c6a37c&id=d7e33cd480&e=f901ca2b34> <http://megaevents.us3.list-manage2.com/track/click?u=4bccbea900e54b305a9c6a37c&id=7a687cba01&e=f901ca2b34> *Featured Research* *Thomson Reuters Sukuk Perceptions & Forecast 2015* The latest sukuk report will be unveiled at #WIBC2015. Last year’s report found Morocco as the most attractive for sukuk investment outside of developed markets like the UK, Australia, France and Luxembourg. <http://megaevents.us3.list-manage1.com/track/click?u=4bccbea900e54b305a9c6a37c&id=ef8e6bc07e&e=f901ca2b34> Featured Events Date Location 22nd Annual World Islamic Banking Conference <http://megaevents.us3.list-manage1.com/track/click?u=4bccbea900e54b305a9c6a37c&id=d360f4e0e1&e=f901ca2b34> 1 to 3-Dec-2015 Manama, BH Follow us on: Twitter <http://megaevents.us3.list-manage1.com/track/click?u=4bccbea900e54b305a9c6a37c&id=69599d966e&e=f901ca2b34> • Facebook <http://megaevents.us3.list-manage.com/track/click?u=4bccbea900e54b305a9c6a37c&id=50cfbdf143&e=f901ca2b34> • LinkedIn <http://megaevents.us3.list-manage1.com/track/click?u=4bccbea900e54b305a9c6a37c&id=0812189bcd&e=f901ca2b34> -- -- 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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