LAUNCHPAD

The latest products and services in the Islamic banking sector

THE GLITZ BEHIND A NEW LOGO
Image branding consultants digging for inspiration on how best to raise a company’s profile can take a lesson from International Turnkey Systems (ITS). The Kuwaiti IT firm flew hundreds of clients, suppliers, journalists and others to a four-star beach resort by the clear, coral waters in Sharm el-Sheikh to preview a new logo and indoctrinate them in its specialist services.

The first night began slowly with a feast and accelerated into a giddy laser spectacle. A dazzling neon ITS logo was beamed onto inviting walls adjacent and behind the podium where ITS managing director Khalid Faraj Al-Said, among other luminaries, spoke.

Mr Al-Said attributes the rapid growth of ITS to the “flexible solutions” his company offers. “Islamic banking offers greater growth than conventional banking,” he says, adding that the most growth has arisen from conventional banks with Islamic windows. “Most enquiries have been from Europe and North America.” The ITS event comprised special sessions dedicated to the sectors it serves. Banking is paramount, accounting for around 35% of revenue.

Outside business hours, ITS treated its delegates to an evening of comedy masterminded by the Axis of Evil, a group of American comedians with perceived “evil” Middle East origins. Apparently, the North Korean member was detained and couldn’t attend. The comedians’ routines debunked stereotypes of Arabs as conjured by the West, in particular, America. One of the Evils, Maz Jobrani, commented on the “stupid questions” he has to endure. “People think that, because I am from the Middle East, I am an expert on the Middle East. I have a friend who, anytime the gas prices go up, asks my opinion. I have to say, ‘Look, dude. I pay the same price as you. I do not have a discount pump at the gas station.’

“The same guy thinks I know when the next terrorist hit is happening. He asks me: ‘Look man, what is the word on the street?’ “What street? Look, I do not know any terrorists. I haven’t met one. Not even accidentally.” The conference talks passed quickly. When it was time to depart for the airport, everyone knew at least something about ITS’s technology solutions to banking, telecommunications and higher education. A fitting conclusion for an extravaganza.

VOLATILITY OF ENERGY DRIVES GEFSCO
Energy is seeing investor demand soar. Global Banking Corporation (GBCORP) and Taylor-DeJongh (TDJ) have teamed up to establish Global Energy Financial Services Company (GEFSCO), a subsidiary that aims to identify and structure investments in the oil, gas and power sectors. Ahmed Al Khan, head of investment banking at GBCORP, says the alliance will offer more choices in energy. “The launch of GEFSCO with the expertise of strategic alliance and industry leader TDJ will be integral to the future growth of energy-related projects in GBCORP’s Shariah-compliant portfolio,” says Mr Al Khan.

GEFSCO will provide advisory services in investment valuation, transaction structuring, negotiation and execution, post-investment management, exit strategy and exit execution. TDJ director Timothy Holder, who has been appointed CEO of GEFSCO, says emerging markets are placing increasing strains on energy supplies and requiring new investments in energy infrastructure. “The energy industry is facing dramatic shifts on the demand side. This means opportunities are developing worldwide that enable GEFSCO to diversify its investments in high-growth mar­­kets,” says Mr Holder.

GEFSCO will target upstream exploration and production, natural gas processing, refining, petrochemicals, oil field services and power generation. Investments will be conducted through vehicles conforming to Shariah principles, the company says.

W: www.gbcorponline.com; www.taylor-de-jongh.com

OIL FUELS PROPERTY BOOM
The growth of the real estate market in GCC countries is on the increase. Global Investment House has addressed this demand with the Global GCC Real Estate Fund II, a close-ended fund targeting investment in the GCC region. The fund’s target capitalisation is $500m. Mr Omar El-Quqa, executive vice president at GIH, says it is a good time to launch the GCC Fund II. “Our GCC Fund I received an excellent response from investors. The GCC market dynamics support our decision to launch the GCC Real Estate Fund II.

Mr El-Quqa said oil is the main driving-force. “Appreciation in prices has positively affected the GCC economy. Reform initiatives by GCC governments, increased cross-border trade and foreign investments have supported growth of infrastructure activities and investments.” The GCC Fund II will invest in a range of commercial, residential and industrial projects across the region. “The fund will explore exciting opportunities in all the GCC countries and will have specific focus on real estate projects in the UAE, KSA and Qatar,” says Mr El-Quqa.
The fund intends to invest in opportunistic assets including land parcels, assets nearing completion, equities of listed real estate companies and pre-IPO opportunities.

W: www.globalinv.net

SUKUK SECURES FUTURE RECEIVABLES
Sorouh Real Estate, based in the emirate of Abu Dhabi, is marketing an AED4bn Shariah-compliant securitisation sukuk. The sukuk is the first to securitise future-contracted receivables from subdevelopers for its flagship projects in Abu Dhabi. The proceeds from the sukuk will finance infrastructure on Sorouh projects, including Shams Abu Dhabi on Al Reem Island and Sarayah along Abu Dhabi Corniche.
The managers and mandated lead arrangers for the transaction are Citi, First Gulf Bank, Abu Dhabi Commercial Bank, National Bank of Abu Dhabi and Noor Islamic Bank.
Citi is the global coordinator. The transaction includes three classes of sukuk certificates rated by Moody’s and S&P.

W: www.sorouh.com E: info@sorouh.com