2009 London Sukuk Summit

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Kuwait Finance House (KFH), one of the largest and pioneering Islamic banks in the world, was named the 'Most Innovative Islamic Bank' at the 2009 London Sukuk Summit Islamic Finance Awards which was held at a Gala Dinner on the evening of 2nd of July 2009 at the Radisson Hotel in London. The awards formed part of the 2009 London Sukuk Summit which was held at the same hotel on 2-3 July 2009.

The Awards recognizes the achievements, progress and effort by individuals and institutions in the Islamic finance space. This year there were 24 Award categories.

The Islamic bank won another award when Ali Al-Ghannam, Head of International Real Estate at KFH, won the award for 'Most Innovative Islamic Real Estate Financing Transaction' for the $1bn investment in the Multi-Million Dollar Iskandar City Development Project in Johor in Malaysia through its long-term Al-Nibras II Fund.

KFH is one of the few banks that weathered the worse effects of the global financial crisis and subsequent credit crunch especially in Kuwait and the GCC countries. In fact, earlier this year, the bank reported total profits of KD379.35m for 2008 with assets increasing to KD10.54 billion and deposits to KD 6.612 billion. The KFH Board recommended a 40 percent cash dividend, and a 12 percent stock dividend to shareholders for 2008.

KFH in recent months has also been spearheading a global expansion drive which is yet another sign that the Islamic finance market is bouncing back albeit a bit more cautious and selective. The bank's expansion activities has an impressive reach, and ranges from Saudi Arabia, Russia, China to Singapore and Australia. The bank now has a global branch network of 175, primarily in Kuwait, Bahrain, Malaysia and Turkey. Perhaps more importantly, the bank has re-entered the US real estate market and is indeed in the process of closing a US$250m multifamily real estate transaction in the Chicago area.

KFH is particularly heartened by the approval of a banking license a few weeks ago by the Saudi Arabian Monetary Authority (SAMA) for the Saudi Kuwaiti Finance House (Saudi-KFH) with a capital of SR500m.

KFH, according to Ali Al-Ghannam, has been less affected by the financial crisis and the credit crunch, whose impact on the Kuwaiti real estate market, he maintains, has been mostly psychological because there remains ample liquidity in the market, but people are holding on to their funds due to a lack of confidence in the market.

This year's 'Islamic Banker of the Year' Award went to Ayman Sejiny, CEO of Unicorn Bank in Saudi Arabia. Mr Sejiny is recognized for his role in helping to structure and launch the three Sukuk issued by Dar Al-Arkan Real Estate Development Company (DAAR) to date and in helping to establish Unicorn Investment Bank in Bahrain. DAAR is a major shareholder in Unicorn Investment Bank.

Two influential regulators, Tan Sri Zarinah Anwar, Chairman of the Securities Commission of Malaysia, the securities regulator, and Dr Mohammed Al-Jasser, Governor of the Saudi Arabian Monetary Agency (SAMA), the central bank, have also received premier honours at the 2009 London Sukuk Summit Awards.

Chairman Zarinah won the 'Outstanding Contribution to the Development of Islamic Capital Markets' Award while Governor Al-Jasser won the 'Outstanding Contribution by a Regulator to Islamic Financial Services' Award at a ceremony organized by London-based ICG-Events.

Tan Sri Zarinah Anwar, who took over the helm at the Securities Commission in 2006, is recognized for her vital role in expanding the role and depth of the Malaysian Islamic capital markets and promoting Islamic capital markets in regional and international bodies such as International Organisation for Securities Commissions (IOSCO). She is a strong advocate of the connectivity in global Islamic finance, and is active in promoting cross-border Islamic capital market activity.

Governor Al-Jasser, who took over in March this year, has made a rapid impact on the Islamic finance market and is an outspoken supporter of developing a world-class Islamic finance system especially in the wake of the near-collapsed financial system in the West which has been experience a major crisis and credit crunch. The appointment of Dr Al-Jasser has raised expectations of a greater Saudi leadership role in regional and global Islamic finance.

Another prominent figure that was honoured is Dr Ahmad Mohammad Ali, President of the Jeddah-based Islamic Development Bank (IDB), who was recognized for his 'Outstanding Leadership in Islamic Finance'. Dr Ali has been at the helm of the IDB for almost 30 years, save a few months when he became Secretary-General of Rabita, the World Muslim League, which is based in Makkah.

Under his watch, the IDB has become an important multilateral development bank of the Muslim world, and has fostered the development of member country economies and promoted policies aimed at poverty alleviation, private sector development, the promotion of Islamic finance globally, and promoting intra-Islamic trade and investment. Currently intra-Islamic trade stands at almost 14 per cent of the total trade of the 57 Muslim countries.

Other Saudi winners recognized included The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the IDB Group, for the ?Most Innovative Islamic Financing Transaction? for the Djibouti Container Terminal Financing.

The IDB also won the 'Most Innovative Sukuk Structure/Deal' Award for its RM1billion Medium Term Notes facility issued in for Malaysia. Ayman Sejiny, CEO of Unicorn Bank in Saudi Arabia, whose major shareholder is Dar Al-Arkan Real Estate Development Company (DAAR), was named 'Islamic Banker of the Year'.

DAAR itself was recognized for the 'Best Sukuk Structure by a Private Corporate Issuer' for its recent SR750m Sukuk. Similarly, National Commercial bank of Saudi Arabia won the 'Outstanding Contribution to the Development of Global Islamic Finance' Award, while Siraj Capital whose major shareholder is the Al-Sulaiman Family of Saudi Arabia, was named the 'Best Islamic Wealth Management Service Provider'.

This year's 'Zaki Badawi Award for Excellence in Shariah Advisory' given in honour of the Late Dr Zaki Badawi, the prominent Azharite Shariah Scholar, was awarded to Dr Daud Bakar of Malaysia. The award recognizes the outstanding and impressive contribution Dr Bakar has made to the development of Fiqh Al-Muamalat not only in his native Malaysia but elsewhere in the region, the Middle East and beyond.

This year also saw two awards for the next generation of Islamic bankers. The 'Zaki Badawi Award for Outstanding Young Shariah Advisory' was awarded to Mufti Muhammad Nurullah Shikder, Shariah Adviser to Gatehouse Bank plc, the lastest Islamic investment bank to be authorized by the United Kingdom Financial Services Authority (FSA). Similarly, Nazmi Camalxaman, Uk Manager of CIMB Islamic Bank, won the 'Young Islamic Banker of the Year' Award.