Investment Banking

MENA Fund Manager has released this year’s Power 50 – its list of the 50 most influential people in MENA’s asset management industry. Eric Swats, Head of Asset Management at Rasmala Investment Bank has been a consistent part of this list. This year as well MENAFM has included him within the list, attributing his inclusion to the fund’s continued stability as well as the success of Rasmala Palestine Fund launched last year.

Link: http://www.menafm.com/article/2012-mena-fund-manager-power-50-announced

Global sukuk issuance is expected to rise 50 per cent this year, with companies turning to capital markets as banks reach lending limits, says HSBC.

MrDaoud says about a third of sukuk issuance will come from the Middle East and Africa. As regional companies find banks unwilling to extend their credit, more of them will turn to capital markets, and especially sharia-compliant sukuk instruments. Cash-rich Islamic banks arelapping up issuances, with demand outstripping supply.HSBC, citing Bloomberg data, says global sukuk issuance raised $26.5bn last year, which is expected to rise to $44bn in 2012.

Link: http://www.ft.com/cms/s/0/45ab0896-6843-11e1-a8cc-00144feabdc0.html

Standard & Poor's Ratings Services has published a report examining why sukuk issuance is gaining acceptance in markets beyond its established strongholds in Malaysia, Indonesia and GCC.

According to the report, European banks are reducing their overseas exposure as their capital requirements have increased and their domestic economies faltered. Governments in the Middle East and Asia have therefore turned to local investors to back their infrastructure projects. Banks in the Middle East and Asia that comply with Sharia law have also demonstrated a strong appetite for new assets that meet their requirements.

Greater standardization of sukuk instruments and improved processes for resolving defaults and restructuring can prove to be major boost for this industry.

Link: http://www.reuters.com/article/2012/02/15/idUSWLA293520120215

The Middle East equity capital market (ECM) issuances recorded a 47% increase in 2011 over 2010 but investment banking fees suffered a 40% decline last year over previous year totaling $221.2 million, according to Thomson Reuters’ analysis.

The UAE was the most active regional country with $4 billion, or 39 per cent of the total $10.1 billion Middle Eastern targeting Merger and Acquisition (M&A) activity during last year.Middle Eastern debt issuance reached $29.5 billion during 2011, down 20 per cent from 2010. Investment grade corporate debt accounted for 35 per cent of all Middle Eastern DCM activity in 2011.

Link: http://www.khaleejtimes.ae/DisplayArticle08.asp?col=com§ion=business&xfile=data/business/2012/January/business_January320.xml