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Islamic Finance

About Islamic Finance

The origins of Islamic Finance date back many centuries and can be traced to the original of Islam as a religion. It is a form of financing which is based upon the principles of Shariah as prescribed in the Holy Quran, the Sunnah (practices and citations of the Prophet Mohammed and as deduced by way of analogy by Shariah Scholars).

Islamic finance is materially different from conventional financing as the payment and receipt of interest is strictly prohibited under Islam. Moreover, given that it is based on concepts such as “ethical investing” and “moral purchasing”, Islamic Finance is therefore governed by a set of rules which prescribe how to conduct business and trade within an economy based on justice for all participants.

The core principles that govern Islamic Finance are:

  • Prohibiting the collection and payment of interests or fees on loans (‘Riba’ or ‘usuary’) as money itself does not have an intrinsic value and therefore, the concept of making money from money is not allowed under Shariah principles;
  • Sharing of Profit, Loss and Risk as Islam encourages partnership and social integration and ensures that no return can be guaranteed without taking risk;
  • Prohibiting Speculation to ensure that return is linked to effort rather than chance or pure speculation;
  • Prohibition of Uncertainty ensuring that all aspects (such as price, nature of the goods, description, etc.) of a contractual transaction / relationship need to be clear and documented;
  • No hoarding of money and wealth to ensure widespread economic development and generation of wealth that benefits society as a whole;
  • No unethical or immoral investments prohibiting investments and transactions in certain products or industries such as alcohol, arms, gaming and gambling, pork and usurious financial transactions.

Under current practices, most Islamic financial institutions have a governing body made up of prominent Shariah Scholars who approve Islamic finance structures and transactions that are entered into by those institutions. By signing off, the board acts as a confirmation of Shariah acceptance and provides a stamp of adherence.

If we look at recent history, Islamic Finance in its current form dates back to the 1970s when the first Islamic Financial institutions such as the Islamic Development Bank (a supranational Bank set up by member countries of the Organization of Islamic Cooperation) and Dubai Islamic Bank (the first commercial bank) were set up. We now talk about – and estimates vary – about an industry which includes more than 300 institutions with multi-billion dollars in assets under management. Despite the Middle East and South East Asia being where most of Islamic assets are concentrated, there is presence and activities across the world in global cities such as London, Geneva, Singapore, and Hong Kong.

With this sheer size and widespread global presence, the industry has grown and seen a multitude of innovations in terms of product offerings to its client base fueling further growth in this industry. When it first started, Islamic finance was limited to commercial banking activities, it has now grown to encompass more sophisticated structured finance, debt capital instruments (Sukuk) and risk management solutions.

Islamic Finance at Deutsche Bank

Deutsche Bank has been a strong player in the Islamic Finance industry for over a decade. We have been committed to the development of the industry and are recognized as a world-class provider of Islamic financial solutions that caters to our Islamic clients’ funding and risk management needs. Deutsche Bank now has one of the most innovative and efficient structuring teams comprised of specialized Islamic Finance experts with cross product backgrounds and responsibilities enabling clients to benefit from Deutsche Bank’s world class expertise. Deutsche Bank’s core Islamic Finance structuring team is based in Dubai (UAE) and Doha (Qatar) with resources in London (United Kingdom) and Kula Lumpur (Malaysia).

On the Islamic capital markets side, Deutsche Bank has been honored to work with our sovereign, quasi- sovereign and private clients such as the State of Qatar, Saudi Aramco, Saudi Electricity Company, Khazanah, Dubai Islamic Bank, Banque Saudi Fransi, Dar Al Arkan Real Estate Development Company and many others to arrange and book-run landmark Sukuk transactions enabling them efficient and swift access the Islamic capital markets to achieve their funding objectives.

Deutsche Bank has been active in developing innovative Shariah compliant structures across all assets classes, liabilities and derivatives. Offering the full spectrum of Islamic Finance products and services, Deutsche Bank is the partner of choice for key regional and international Clients. With the forecasted growth of the Islamic Finance market, Deutsche Bank is continuously striving to create new and innovative products for its Clients.

Over the years and as an example to Deutsche Bank’s commitment to the Islamic markets, Deutsche Bank has established strong and lasting relationships with some of the leading scholars in the world, including Dr. Hussein Hamid Hassan (UAE), Dr. Ali AlQaradaghi (Qatar), Dr. Mohamed Daud Bakr (Malaysia), Dr. Abdulrahman Al Atram (Saudi Arabia) and Dr. Yousef Al Shobaily (Saudi Arabia).

Recent Islamic Finance Awards

Awards 2014

IFR Middle East Award

Islamic Finance Deal of the year


Euromoney Islamic Finance

Islamic Deal of the year



Most Innovative Deal


Islamic Finance News

Best Islamic Trustee/Custodian 2013



Best IPO



Best Deal in Qatar



Best Deal in KSA



Best Infrastructure & Project Finance Category Deal



Best Murabahah Deal



Best Trade Finance Deal


EMEA Finance

Qatar Deal of the year



Best financial institution Sukuk


Awards 2013

MENA Funds Managers

Best Fund Administrator – Sharia Compliant Funds


Islamic Finance News

Best Islamic Trustee/Custodian



IPO Deal of the Year



Qatar Deal of the Year


Awards 2012

Islamic Finance News

Best Islamic Trustee/Custodian



Project Finance Deal of the Year



Saudi Arabia Deal of the Year


Islamic Finance Related News
February 17, 2014

Deutsche Bank wins Islamic Deal of the year and Most Innovative Deal by Euromoney Islamic Finance Awards 2013

Recognizing its excellence in Islamic Finance, Deutsche Bank received "Islamic Finance Deal of the Year" award from Euromoney Islamic Finance awards 2013. Deutsche Bank has been awarded for its successful execution of Saudi Electricity US$2 billion Sukuk issuance. In addition, it was recognized "Most Innovative Deal of the Year" for managing the Khazanah SGD $600 million exchangeable Sukuk transaction.

Salah Jaidah, Chairman of Islamic Finance at Deutsche Bank, said: “We are honored to receive these prestigious Islamic Finance awards from Euromoney. Through our long and extensive experience in Islamic Finance, we are able to structure complex Islamic Finance transactions that service the needs of the growing Islamic Finance market. We remain dedicated to delivering world-class Islamic Finance services to our clients around the world."

Clive Horwood, Editor of Euromoney, said “Our Islamic Finance Deal of the Year was the first ever 30-year international sukuk, and the largest international debt capital market issue from any Saudi entity. In both respects, it will provide benchmarks for other borrowers to follow. Deutsche Bank also played a key role in our Most Innovative Deal award, the latest in several successful efforts by Khazanah to monetize its stakes in key holdings through exchangeables. Both deals were eye-catching, have moved the industry forward, and will encourage new institutions to the market.”

Deutsche Bank is deeply committed to the development of the Islamic finance industry and is broadly recognized as a world-class provider of Islamic financial solutions.


January 26, 2014

Deutsche Bank receives 6 awards from Islamic Finance News

Deutsche Bank announced today that is has been named “Best Islamic Trustee/Custodian 2013” by Islamic Finance News. In addition, Deutsche Bank received the awards for “Best IPO” and “Best Deal in Qatar”. Furthermore, Deutsche Bank has been recognized for the “Best Deal in KSA" as well as the “Best Infrastructure & Project Finance Category Deal” for Deutsche Securities Saudi Arabia’s successful execution of the SADARA sukuk issue.
 
In addition, Deutsche Bank has been recognized in the Murabahah and the Trade Finance category for its role in the Mobily transaction.
 
Salah Jaidah, Chairman of Islamic Finance at Deutsche Bank and Chief Country Officer for Qatar said: "We are honored to receive these awards from Islamic Finance news, as they reflect Deutsche Bank’s capabilities to structure complex Islamic Finance transactions. Furthermore, the Qatar Deal of the Year Award exhibits our passion and dedication to develop our Islamic Finance franchise in the State of Qatar.”
 
Sriram Iyer, Global Head of Trust & Agency Services, Global Transaction Banking at Deutsche Bank said: "We are pleased to receive this recognition for the fourth year in succession, as they further demonstrate our expertise in servicing the custody needs of the growing Islamic Finance market. We remain dedicated to delivering world-class Islamic Finance services to our clients around the world."
 
Jamal Al Kishi, Chief Executive Officer of Deutsche Securities Saudi Arabia, added: “This is a great recognition by Islamic Finance News for Deutsche Bank’s business in the Kingdom through Deutsche Securities Saudi Arabia. We are committed to growing our Saudi franchise and to providing best-in-class Sharia-compliant products and services to our Saudi clients."
 
Andrew Morgan, Managing Director & Publisher of Islamic Finance News, said: “The participation of Deutsche Bank across multiple categories this year is testament to the breadth and depth of its invaluable and consistent contribution to the global Islamic capital markets. With deals spanning numerous jurisdictions and encompassing a wide variety of sectors, asset classes, structures and jurisdictions, Deutsche Bank has once again demonstrated its position as a pillar of the Islamic finance industry both in the Middle East region and globally”.
 
This is the fourth consecutive year that Islamic Finance news has recognized Deutsche Bank's excellence in providing Islamic Trustee and Custody Services in their annual Global Banking Awards. In addition, it is also the second year that Deutsche Bank receives “Best IPO” and “Best Deal in Qatar” awards.


March 3, 2013

Deutsche Bank awarded for Qatar deal from EMEA Finance

Deutsche Bank announced today that it has won EMEA Finance’s “Deal of the year” award for arranging the State of Qatar USD 4bn Sukuk and “Best financial institution Sukuk” award for its important role in the issuance of Qatar Islamic Bank Sukuk.

Furthermore, Deutsche Bank has won twelve EMEA Finance Achievement Awards for 2012 in total, including Best Equity House in EMEA, Best sovereign bond in EMEA, Best financial institution M&A deal and Best supranational borrower.

Commenting on the award, Salah Jaida, Chairman of Islamic Finance and Qatar’s Chief Country Office at Deutsche Bank, said: “We are honored to receive these awards from EMEA Finance. Both 'Deal of the year' and 'Best financial institution Sukuk' awards not only demonstrate Deutsche Bank’s capabilities to structure complex Islamic Finance transactions, but they proof Deutsche Bank’s dedication to the State of Qatar as well. We are passionate about growing our Qatar franchise by offering best-in-class advice, products and services to our clients.”

This is the sixth consecutive year that the bank has been recognized in EMEA Finance’s Achievement Awards and the second consecutive year as the Best Equity House in EMEA.


February 17, 2013

MENA Funds Managers – Best Fund Administrator - Mutual Funds and“Best Fund Administrator – Sharia Compliant Funds

Deutsche Bank announced today that it has been named by MENA Funds Managers as “Best Fund Administrator - Mutual Funds” and “Best Fund Administrator – Sharia Compliant Funds” during its 4th Annual MENA Fund Manager Performance Awards Ceremony held in Dubai, United Arab Emirates.

The awards recognize Deutsche Securities and Services excellence in providing first class innovative solutions to clients to support their needs and achieve their growth targets.

The MENA Fund Manager panel of judges stated that “the range of products and capabilities on show within Deutsche Securities and Services highlighted it to be the mutual fund administrator of choice. In addition, it underlined its excellent capabilities in structuring Islamic-compliant vehicles and providing accounting services in both Shariah and conventional accounting standards to receive the Best Fund Administrator for Sharia Compliant Funds.”

Mike Cowley, Branch Manager of Deutsche Securities and Services said: “We are very pleased to receive these awards from MENA Funds Managers, as they confirm our capability in providing powerful fund administration solutions leveraging the resource of a global bank that is well known for its Transaction Banking Operations.”

Deutsche Securities and Services (DSS) in the UAE was established in 2008 covering all three UAE markets with a leading market share for NASDAQ Dubai assets. DSS connected the two key ICSD’s Euroclear and Clearstream into the region along with being top rated in the categories for Cross Border Non Affiliate and Domestic. DSS is also the first institution to instigate an agent move in the region in 2009 and continuing with a strong migration record till date.


January 21, 2013 Deutsche Bank Receives Three Islamic Finance Awards
Deutsche Bank announced today that is has been recognized by Islamic Finance news as the “Best Islamic Trustee/Custodian 2012”. In addition, Deutsche Bank won "IPO Deal of the Year” award for the Felda Global Ventures US$3.4 billion IPO and “Qatar Deal of the Year” award for its role in the State of Qatar US$4 billion Dual Tranche Sukuk. more
April 24, 2012 Saudi Electricity Company successfully closed first international Sukuk with USD 1.75 billion issuance arranged by Deutsche Bank and HSBC
Saudi Electricity Company (“SEC”) rated A1/AA-/AA- (all Stable) the largest utility in the Middle East has announced the successful closure of a USD 1.75 billion dual-tranche Sukuk issue, comprising a USD 500 million with a five year maturity and a USD 1.25 billion with a 10 year maturity. This transaction led by Deutsche Bank and HSBC is the inaugural international Sukuk issuance by SEC and the largest international debt capital markets issuance from Saudi Arabia. more
January 24, 2012 Deutsche Bank awarded for its Islamic Finance business
Deutsche Bank has won Islamic Finance news “Best Islamic Trustee/Custodian 2011” Award. In addition, Deutsche Bank received the awards for "Project Finance Deal of the Year 2011" and "Saudi Arabia Deal of the Year 2011" recognizing Deutsche Securities Saudi Arabia’s successful execution of Saudi Aramco Total Refining and Petrochemical Company (SATORP) Sukuk Certificates. more
December 5, 2011 Deutsche Bank appoints Salah Jaidah as Chairman of Islamic Finance and Ibrahim Qasim as Head of Islamic Finance Structuring
Deutsche Bank today announced the appointment of Salah Jaidah as Chairman of Islamic Finance and Ibrahim Qasim as Head of Islamic Finance Structuring. more
June 16, 2011 Saudi International Petrochemical Company (Sipchem) to issue its debut Mudaraba Sukuk
The Capital Market Authority (CMA) announced on Sunday, June 12, 2011 its approval for Saudi International Petrochemical Company (Sipchem) to issue its debut Mudaraba Sukuk ... more
Contact Deutsche Bank’s Islamic Finance team

To contact Deutsche Bank’s Islamic Finance team please send an email to communications.mena@db.com

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Last Update: April 7, 2014
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