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Total assets of the company fell 1 per cent to Dh114.7 billion compared to Dh116.059 bil- lion in 2010, while the net profits after minor- ity interests showed a decline of 27 per cent to Dh744 million as against the net profit of Dh1.019 billion in 2010. The decline in to- tal assets and net profit was principally due to the lower gas price environment in North America, which led to a one-off impairment following the annual revaluation of Taqa’s portfolio, a statement said.


The net impairment of Dh470 million re- flected an impairment of Dh616 million, offset by a deferred tax benefit of Dh146 million. In addition, increased taxes on oil and gas production in the UK North Sea led to a higher effective tax rate which de- pressed Taqa’s net result. During the year,


been launched by the Climate Bonds Initia- tive, the Clean Energy Business Council of The Middle East and North Africa and The Gulf Bond and Sukuk Association, aims to channel interest into the area and attract expertise. Green Sukuks are investments bonds for businesses that meet criteria stipulated by the International Climate Bond scheme, and the launch of the Green Sukuk Working Group has been set up with the intention of forming new ideas about green energy projects which adhere to Shariah principles.


The Green Sukuk Working Group held its first meeting in Dubai two weeks ago, with several industry experts saying the time is right for such a move. Board Secretariat of the Clean Energy Business Council, Aaron


Shariah law does not stipulate that projects must be ecologically friendly, with rising con- cern about rising global temperatures and diminishing fossil fuel supplies, which make up a large proportion of several Middle East economies, renewable energy is a sector predicted to rapidly grow over the next years by many scientists and other experts.


Michael Grifferty, President of The Gulf Bond and Sukuk Association, reportedly stated that ‘Interest in both Shariah-compliant and ethical investing is on the rise. Green Su- kuks can support this trend by expanding the range of available financial instruments. Green Sukuks also support national devel- opment strategies by offering longer term finance for essential infrastructure.’


Here is a crack in the system which needs to be remedied. When you can’t sell or distribute because your Shariah board is different from my Shariah board, you end up not being able to achieve scale and you’re leſt with a very expensive product. That’s what’s hindered the development of Shariah asset management


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Haissam Arabi Gulf mena Investment Ltd, Chief Executive Officer, Dubai, UAE


As the Islamic finance industry is still


emerging, governance standards are not as well established as in other industries. In such an environment social networks or social capital (i.e. the capital people draw from their social relationships) make up for the lack of govern- ance. That`s why people and their relationships still play an important role


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Dr. Murat Ünal Funds@ Work AG, Chief Executive Officer, Germany


John Bates, Silk Invest, Head of Fixed Income, London, United Kingdom


The new Saudi Electric sukuk will be very


well-received by investors as it promises to be a rare foray into dollar-denominated investment- grade territory


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Taqa maintained a strong level of liquidity. In December, Taqa successfully issued $1.5 billion in 5 and 10-year bonds at extremely attractive prices, taking advantage of strong market conditions to pre-finance maturities due in the fourth quarter of 2012. As a result of this positive performance and given its confidence in Taqa’s position, the Board of Directors is proposing a dividend of Dh0.10 per share, subject to approval at the Annual General Meeting on April 17.


Eco-friendly Sukuk Issuances to Finance Eco-Friendly Investment Projects The Green Sukuk Working Group was launched last Thursday (8/3/12) with the aim of promoting the issuance of Sukuks for projects that are focused upon supply- ing renewable energy. The move, which has


Bielenberg, was reported to have stated that ‘There are a significant and growing number of projects, for example renewable energy in the Middle East, that are ideally suited to Sukuk investors. This group will help inves- tors more easily identify Shariah-compliant, clean energy investment opportunities. Nasser Saidi, chairman of CEBC, is also reported to have placed the value of green Sukuk issuances between US$10 and $15 billion, and that ‘The time is right for a green Sukuk’.


Sukuk, also known as Islamic equity bonds, typically work as a profit-sharing device, and through the most recent economic crisis have typically been more stable and thus re- tained their value to a much greater extent than those of conventional finance. Although


Likewise, Nick Silver, co-founder and Chief Actuary of Climate Bonds Initiative, was re- ported to have said ‘There is an urgent need to mobilise finance for both renewable ener- gy and climate adaption projects in both the Middle East and in other developing Muslim countries such as Bangladesh and Pakistan. Green Sukuks are ideally suited for the fi- nancing of many of these projects.’


The eligibility criteria are determined by The International Climate Bond Standards Scheme, which is backed by a mix of in- vestments bodies and NGO environmental groups.


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2012 April Global Islamic Finance 13


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