ICDBULLETIN - icd-ps.org contact Brian Kettell on [email protected] ... Islamic finance channels...

Member of the IslamicDevelopment Bank Group

ICDBULLETINIssue 01 | Volume 04 | Q3/Q4 2013

Islamic Corporation for the Development of the Private Sector Bulletin | Q3 2013

ICD MEMBER COUnTRIES

Albania

Algeria

Azerbaijan

Bahrain

Bangladesh

Benin

Brunei

Burkina Faso

Cameroon

Chad

Comoros

Côte d’Ivoire

Djibouti

Egypt

Gabon

Gambia

Guinea

Guinea Bissau

Indonesia

Iran

Iraq

Jordan

Kazakhstan

Kuwait

Kyrgyzstan

Lebanon

Libya

Malaysia

Maldives

Mali

Mauritania

Morocco

Mozambique

Niger

Nigeria

Pakistan

Palestine

Qatar

Saudi Arabia

Senegal

Sierra Leone

Sudan

Suriname

Syria

Tajikistan

Tunisia

Turkey

Turkmenistan

UAE

Uganda

Uzbekistan

Yemen

TABLE OF COnTEnTS

About the Islamic Development Bank

About the Islamic Corporation for the Development of the Private Sector (ICD)01 01

Foreword02 02

ICD Launches an Ijara company in Palestine03 03

ICD Advisory Hajj and Umra Service 05 07

Jaiz Bank- The first Islamic bank in Nigeria06 09

Sukuk Terminology : The view from Arabia07 11

ICD Member Development Database08 13

From the editor

Comments , suggestions and contributions are most welcome.Please contact Brian Kettell on [email protected]

04 05ICD Islamic Money Market Fund

Islamic Corporation for the Development of the Private Sector Bulletin | Q3/Q4 2013

01 02

It is my great pleasure to introduce the latest issue of the ICD Bulletin.

The ICD was set up as the private sector arm of the IDB Group to focus primarily on private sector development with a view to poverty alleviation and to raising the general standards of living in its member countries.

In contrast to conventional finance lending on the basis of interest is forbidden in Islamic Finance. The Islamic financial system is driven by trade, production and investment and is intimately linked to the real sector.

The economic development of our member countries is being achieved through the provision of finance to private sector projects in accordance with the principles of Sharia’a law.

The ICD finances projects that are specifically geared to creating employ-ment opportunities and boosting exports.

One theme we are pursuing through our member countries is to encourage SME’s and I would like, here to men-tion some of our work in Africa.

Africa represents around 12% of ICD’s cumulative investment ap-provals. There are several initiatives pending that will be finalized in

Africa in the coming years. These will significantly increase Africa’s share of our portfolio in the near future.

ICD‘s strategy is to focus on increas-ing support to Small and Medium-Sized Enterprises, encouraging cross border investments by financing GCC companies’ expansion in Africa, devel-oping the Islamic finance industry and by creating and supporting Islamic banking in the region..

In 2009, ICD became a majority shareholder of Banque Islamique du Senegal, Banque Islamique du Niger and Banque Islamique de Guinee. We then set up Tamweel Africa Holding in order to pool these investments. The aim is to promote Islamic finance in West Africa. Additionally, Tamweel Africa Holding has set up a fully-fledged Islamic bank in Mauritania and currently other countries are also under consideration for similar projects.

Addressing the infrastructures needs in Africa is also critical and ICD Advisory is expecting to provide services in arranging infrastructure sukuk (Islamic Bonds) and performing an advisory role in Infrastructure projects, both for public and private entities.

We see Africa as a Continent with an amazing future if it can harness its wealth and potential efficiently. As mentioned we have launched numer-ous initiatives to progress this process. ICD is totally committed to Africa and we look forward to enhancing living standards throughout the African continent.

In this issue we highlight the role played by our pioneering Islamic money markets fund, our launch of an Ijara company in Palestine and our link up with Tabung Haj to facilitate and simplify the issues for Hajj and Umra pilgrims. Future issues of the ICD Bulletin will highlight the many other development projects, both now and in the future, that we are planning.

My sincere appreciation is extended to those who have kindly contributed to this issue and I hope you will look forward to reading future issues.

ABOUT THE ISLAMICDEVELOPMEnT BAnK (IDB)

FOREwORD

BACKGroUNd

The IDB is an international financial institution established in pursuance of the Declaration of Intent is-sued by the Conference of Finance Ministers of Muslim Countries held in Jeddah, KSA, in December 1973. The Bank was formally opened on 20 October 1975.

FUNCtioNS

The purpose of the Bank is to foster the economic development and social progress of member countries and Muslim communities individually as well as jointly in accordance with the principles of Sharia’a i.e.Islamic Law.

The functions of the Bank are to participate in equity capital and grant loans for productive projects and enterprises, besides providing financial assistance to member countries in a variety of forms which enhance economic and social development. The Bank is also re-quired to establish and operate special funds for specific purposes, including a fund for assistance to Muslim

communities in non-member countries, in addition to setting up trust funds. The Bank is authorized to accept deposits and to mobilize financial resources through Sharia’a compliant modes of finance. It is also charged with the responsibility of assisting in the promotion of foreign trade especially in capital goods, among member countries; providing technical assistance to member countries; and extending training facilities for personnel engaged in development activities in Muslim countries in line with the Sharia’a.

memBerShiP

The present membership of the Bank consists of 56 countries. The basic condition for membership is that the prospective member country should be a member of the Organisation of Islamic Cooperation (OIC), pay its contribution to the capital of the Bank and be willing to accept such terms and conditions as may be decided upon by the IDB Board of Governors.

Khalid mohammed Al AboodiCEO, Islamic Corporation for the

Development of the Private Sector (ICD)

Foreword

ABOUT THE ISLAMIC CORPORATIOn FOR THE DEVELOPMEnT OF THE PRIVATE SECTOR (ICD) The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral developmental organization affiliated with the Islamic Development Bank (IDB) Group.

In this issue we highlight the role played by our pioneering Islamic money markets fund, our launch of an Ijara company in Palestine and our link up with Tabung Haj.

BACKGroUNd

The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral developmental organization affiliated with the Islamic Development Bank (IDB) Group. Its authorized capital stands at $2.0 billion. Its shareholders consist of the IDB, 52 member countries, and five public financial institutions. Headquartered in Jeddah, KSA, the ICD was established by the IDB Board of Governors during its 24th annual meeting held in Jeddah in November 1999.

The mandate of the ICD is to support the economic development of its member countries through the provi-sion of finance to private sector projects in accordance with the principles of Sharia’a law i.e. Islamic Law.

FUNCtioNS

The ICD finances projects that are specifically geared to creating employment opportunities and boosting exports. Furthermore the ICD mobilizes additional resources for projects and encourages the development of Islamic financing and capital markets. It also attracts co-financiers for its projects and provides advice to governments and private sector groups on policies aimed at encouraging the establishment, expansion and modernization of private enterprises, development of capital markets, best management practices and enhanc-ing the role of the market economy.

ICD’S STrATeGy IS To FoCUS oN INCreASING SUPPorT To SMALL AND MeDIUM SIzeD eNTerPrISeS


03 04

iCd iJArA ComPANieS – rAtioNALe & StrAteGYAn integral part of ICD’s mandate is to promote develop-ment and growth in member countries by developing new Islamic finance channels such as specialized Ijara companies that focus on the under-banked SME segment in these markets.

Leasing companies represent important sources of growth capital to SMEs, and typically finance productive assets that include vehicles, equipment and machinery. Since they use asset-based financing, these companies lend themselves to Shariah-compliance funding and provide added credit security, which is especially valued in regulatory environ-ments that have limited creditor protection.

ICD member countries stand to benefit immensely from the introduction of new leasing companies because they have significant pockets of under-banked SMEs and substantial pent up demand for SME growth capital.

Conservative lending policies by banks and excessive collateral requirements in addition to the lack of a mature venture/PE capital industry have left SMEs in these markets largely unable to take advantage of available growth opportunities.

Besides its significant potential developmental impact, the leasing business in ICD member countries has consider-able commercial potential. Today, ICD member countries account for less than USD 18 billion of the USD 617 billion global leasing market. The leasing penetration rate (Leasing Volume / Gross Fixed Capital Formation) in ICD member countries, especially in the MENA region, is mostly concentrated in the “nascent market” category, according to IFC market classifications. See Figure 1

Ernst & Young, a consulting company, estimates that ICD member countries’ potential leasing market is as large as USD 50 billion. In light of this ICD perceives real opportunities in this vast and fast growing market.

ICD’s intervention in the Sharia-compliant leasing space also has the potential to act as a catalyst for much-needed economic and financial regulatory reforms, as market entry necessarily requires intensive lobbying to introduce new laws to regulate Ijara activities, and to create or modernize moveable asset registries, in addition to bankruptcy laws and regulations.

Finally, establishing Ijara companies in member countries will allow for the transfer of specialized Islamic finance expertise and know-how, which will contribute to the development of the sector in member countries.

The introduction of Ijara companies in ICD member countries has the potential to have a tremendous devel-opmental impact in light of the evident financing gap in the SME space in these target markets. This intervention has promising financial feasibility and is sure to serve as a catalyst for much needed regulatory reforms in member countries. It will also help promote and build Islamic finance talent and expertise in these markets.

For all these reasons, ICD has formulated a strategy that is focused on launching 20 Ijara companies in member countries within the next 5 years. ICD will provide startup capital to these companies typically in partnership with local investors in the target market.

iCd iJArA ComPANY iN PALeStiNeAs part of its global strategy to set up 20 Islamic leasing companies in member countries over the next 5 years, ICD has been mobilizing resources and partners over the past year in order to launch an Ijara Company in Palestine by end of 2013.

ICD is currently in the final stages of establishing this venture in partnership with the Palestine Investment Fund (PIF) and the Palestine Islamic Bank. The USD 12 million Company will be the first Islamic leasing company in Palestine and will cater to SMEs in various economic sectors in the Palestinian market.

Palestinian SMEs in the West Bank and Gaza Strip con-stitute the backbone of the Palestinian economy, as they represent over 95% of all registered enterprises, generate over 55% of the GDP and account for over 80% of all private sector job opportunities. Despite their economic significance, SMEs in Palestine are severely underfunded and under-banked, and typically have to rely on internally generated funds and shareholder loans and additional equity contributions to support growth and expansion.

An Ernst & Young survey indicates that 65% of SMEs in Palestine are in need of financing to support expansion projects. However, excessive collateral requirements by banks, lengthy and cumbersome loan application processes and general reluctance by business owners to obtain conven-tional loans limit SME access to much needed funding.

Combined with the lack of a mature private equity industry, this reality implies a substantial financing gap in the Palestinian SME space. Ernst & Yong estimates that this gap stands at about USD 1.2 billion today.

Currently, there are 8 registered leasing companies in Pales-tine, 6 of which are operational, and all of which are almost entirely focused on consumer auto-leasing activities. Against this backdrop the planned Ijara Company has a clear first mover advantage. It also has an advantage in terms of being the only fully Shariah-compliant leasing company in the market.

From a commercial perspective, capitalizing on the tre-mendous discrepancy between demand for, and supply of, SME leasing facilities is a sure way to secure profitability and sustainability in the near to mid-term. However, there are a number of challenges that need to be addressed to ensure that the commercial potential of this venture is fully captured. To start with the Palestinian Leasing Law has yet to be ratified. Additionally, Palestine still lacks a moveable assets registry. Despite the fact that leasing companies are regulated by a strong and capable body, the Palestinian Capital Markets Authority (PCMA), the absence of these key regulatory ingredients represents immediate challenges that need to be addressed in the near future.

ICD, with the help of its local partners, will work to mobi-lize efforts to have the needed regulatory reforms adopted by the Palestinian government as soon as possible. In terms of capacity building and knowledge transfer, ICD and its partners have engaged the Ijara Management Company (IMC), a fully-owned ICD consulting and leasing

company management specialist, to lead the set up opera-tion and to plan and execute the needed capacity building measures at the Company.

IMC’s mandate includes recruiting and training the senior management team, introducing the needed internal opera-tional frameworks and policy manuals, installing the needed IT hardware and software resources, and finalizing product development per the market requirement, in addition to planning and executing branding and marketing efforts in the initial phase of operations.

CUrreNt ProJeCt StAtUS

ICD and its partners are currently in the final stages of registering and licensing the Company, in addition to build-ing its senior management team and are aiming to have the Company up and ready for operations by the first quarter of 2014.

ABoUt the LoCAL PArtNerS

The Palestine Investment Fund (PIF) is a state-backed institutional investor and is considered one of the leading institutional investors in Palestine. PIF has over USD 850 million in assets under management and has a mandate to support growth and development in Palestine by engag-ing in private sector projects and transactions. PIF has a substantial investment portfolio that spans multiple strategic economic sectors including energy, real estate, telecommu-nications, SMEs, and financial services. The Company will benefit from PIF’s extensive local business and governmental network and relations.

The Palestine Islamic Bank is the largest Islamic bank in Palestine with over USD 392 million in Assets, and close to USD 190 million in credit facilities. The Bank has branches across Palestine and an extensive business network and relations. The Bank will enter into an arrangement with the Company to allow it to use its 15 branches to source leasing applications and provide a variety of customer services.

*The Editor would like to thank Mohammed Jawad Herzal-lah and Mohammed Kherouaa from the ICD Financial Institutions Development Department for contributing this article.

ICD Launches an Ijara company in Palestine

Figure 1: Leasing Penetration Rates

ICD LAUnCHES An IjARA COMPAny In PALESTInE*ICD is in the process of launching the first Palestine-domiciled Ijara Company in partnership with local institutional investors mohammed

Kherouaa ICD

ABStrACtIn Partnership with the Palestine Investment Fund (PIF) and the Palestine Islamic Bank, ICD is launching a USD 12 million Shariah-compliant leasing company which will cater to small and medium-sized enterprises (SMEs) in various economic sectors of the Palestinian market.

Market Classifications based on Leasing Penetration Rates

< 5% Nascent

<10% Emerging

>10% MatureSource: IFC

UAE

Kuw

ait

Tuni

sia

Iran

KSA

Qata

rM

oroc

coo

Egyp

tOm

anJo

rdan

Leba

non

Alge

riaBa

hrai

nYe

men Ira

qPa

lest

ine

Syria

Liby

a

10

8

6

4

2

0

Company Name Palestine Ijara Company

Business Line Islamic Leasing

Legal Form Private SH Limited Liability Co

Legal Domicile Palestinian Authority

Startup Equity USD 12 Million

ICD Share USD 4 Million - 33.1/3%

PIF Share USD 4 Million - 33.1/3%

PIB Share USD 4 Million - 33.1/3%

Governance

- 2 BoD seats for each shareholder.

- Chairmanship: Rotation of 3 years

between the parties

- Risk, Audit & Sharia committees

Share transferLock-up: 3 years

Mutual pre-emption rights

Technical Manage-ment agreement

IMC: 3 years contract

SUmmArY term Sheet

mohammed Jawad herzallah

ICD


05 06

ICD as the Mudarib will be entitled to share of profit rang-ing from 20% to 30% depending on the achieved return.

An Investment Committee has been established for the Fund by the Manager. This will comprise suitably qualified directors of ICD. The Investment Committee of the Fund will approve and monitor all investment decisions, approve strategy and monitor the Fund’s portfolio. The Fund Manager will deploy a variety of strategies to manage the investments of MMF depending on regulatory require-ment, liquidity risk management and the required rate of return from investments.

The fund is divided into two parts, namely (a) Cash Management, (b) Investment Management. The MMF will maintain at least 90% of its funds in investment instru-

ments. MMF will not invest in Project Finance, Greenfield and Working Capital projects.

The Distributions of returns will be made to all Limited Partners and would be made only in the form of new Partnership Units which will carry the Partnership unit value in accordance with the provisions of the limited li-ability partnership agreement which will be entered into by the Limited Partners. The frequency of distributions will be made at the discretion of the Designated Partner.

The fund manager appoints the Shariah Committee of the Islamic Development Bank Group as the Shariah Commit-tee of the Partnership in the first year but, as the business volume of the MMF increases, the fund will contract the services of an external reputable Shariah committee.

The fund management team consists of the ICD Advisory and Asset Management team and the Treasury Division.

With a view to provide Shariah compliant liquid fund management solutions, ICD Treasury has been generating incremental revenue for the past 5 years, as can be seen from figure 2.

ICD Treasury is well positioned to access deal flow opportunities and to co-invest in wide range of geographic locations, markets, counterparts and Shariah compliant instruments. Average return for the portfolio, since January 2009, is 3.88% which translates to an average spread over 6 month LIBOR of 3.2%. See Figure 2.

ICD Treasury can reach out to counterparts in both mem-ber and non-member countries of ICD to generate risk adjusted return to the investors of liquid fund, especially to investors who prefers to receive their profit and principal investment within a 2 year time horizon. The MMF will be leveraging on ICD’s treasury performance in generating above market returns for its investors.

*The Editor would like to thank Abdullah Mohammad A. Ashy from the ICD Asset Management Division for contributing this article.

ICD Islamic Money Market Fund

Abdullah mohammad A. AshyICD Asset Management Division

Figure 1: Organisation of the Partnership

Figure 2: Average Portfolio Return

ICD Fixed IncomeLimited

(Designated Partner)

ICD Money MarketFund (Labuan) LLP

(Fund)

The Islamic Corporation for the Development of the Private Sector

(Mudarib, Fund Administrator,Custodian)

Limited Partners

ICD ISLAMIC MOnEy MARKET FUnD*

In August 2013 ICD launched a new fund, the ICD Money Market Fund (MMF). The newly launched fund is the first fund that is launched, structured and fully managed by ICD since its inception.

The MMF is a liquidity management fund that will provide periodic income to its investors by investing in Shariah compliant placements, investments and financing products. The target fund size is USD200 million which ICD has seeded with USD50 million. The Offering will consist of 200,000,000 Units at USD1 each.

The ICD Money Market Fund is a Labuan Islamic Limited Liability Partnership registered under the Labuan Limited Partnerships and Limited Partnerships Act 2010. This unique structure enables investors to enter into a partnership agreement, as limited partners, with ICD as a designated partner who will be managing the fund as Mudarib.

ICD will be managing the fund through the newly established SPV, ICD Fixed Income Ltd, which was incor-porated in Labuan. MMF is an open-ended Fund and the term of the Partnership will continue until the Partnership is dissolved under the Partnership Agreement. See Figure 1 for details of the structure.

The Partnership intends to achieve its objective by invest-ing in Shariah compliant placements, investments, and financing products globally benefiting from ICD’s global reach and competitive advantages in several markets. These include member countries and as being a member of the Islamic Development Bank group.

In addition to that the fund will capitalize on ICD’s propri-etary market knowledge and access to Shariah compliant placement avenues in a geographically diversified region in order to earn above market returns for institutional unit holders

All investments will be certified by the Shariah Commit-tee to be compliant with the Shariah guidelines of the Partnership. Investments will be placed in one or more of the following forms: Commodity Murabaha; Syndicated commodity Murabaha; Restricted and unrestricted Wakala agreements; Sukuk; Islamic Commercial paper; Banker’s Acceptances and a variety of other Shariah compliant investment and financing products.

Investments made by the Partnership are not restricted to any sectors or subsectors provided that all investments, including any restrictions on any exposures to any country or region, are discussed and approved by the Investment Committee

The target return on investments of the Fund is 4%-5% p.a. net return on invested capital contributions. Accumu-lated/periodic returns would be distributed to investors’ accounts upon investors’ redemption request and may be reinvested at the investor’s discretion. The fund manager will identify suitable counterparties with potential invest-ment opportunities for the Fund and will carry out due diligence on proposed investments. The Manager will also monitor the on-going performance of investments.

6.0 %

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

Portfolio Returns 6m LIBOR Portfolio Spread over 6m LIBOR

Sep-

09

Dec

-09

Mar

-10

Jun-

10

Sep-

10

Sep-

11

Dec

-10

Mar

-11

Jun-

11

Dec

-11

Mar

-11

Jun-

12

Sep-

12

Dec

-12

Mar

-13

Jun-

13

THe MMF IS THe FIrST FUND THAT ICD HAS STrUCTUreD INTerNALLy & IS MANAGING WITH ITS oWN reSoUrCeS


07 08

ICD launches an Advisory Hajj and Umra Service

ICD LAUnCHES An ADVISORyHAjj AnD UMRA SERVICE*An Initiative to Mobilise Savings and Improve Hajj Management

The total of the hajj and Umra-related services industry is estimated at USD17.3 billion globally. An estimated 75% of the value generated across the hajj and Umra value chain is accounted for by the hotel, airlines, financial services and retail segments.

With the emergence of larger middle classes, rising income and the growing affordability of air travel, more people are now travelling and international Hajj pilgrimage numbers have been steadily increasing year-on-year. Increasing reli-

gious awareness also contributes to the increase in hajj and umrah numbers. There is a growing number of practicing Muslims while the growth of political and social Islam contributes to the increasing awareness among Muslims to practice religious duties.

The countries with the largest Muslim communities are listed in Table 1 and the trend growth rates of Muslims are listed in Table 2.

how CAN mUSLimS FiNANCe the hAJJ?

Sadly, in some countries one can still find those who sell whatever small property they have, or their only land or live stocks to finance their pilgrimage. In some cases, people would buy buffalos or other animals whenever they have money, and once they have enough, they would sell these animals to raise the funds for their hajj.

For some, there is also a general lack of avenues for them to save their money for hajj in a Shariah compliant way. Clearly there should be ways of financing the hajj other than keeping the money under the pillow, or in the rattan roof (sometimes only to get stolen by their own relatives). In many countries, hajj management is totally unsatisfactory.

For this reason, the Islamic Corporation for the Devel-opment of the Private Sector (“ICD”) has developed a concept for a specialised institution that provides advisory services on hajj management and best practise to mobilise savings and to help counter the widespread exploitation of hajj pilgrims.

Apart from the mobilisation of savings, i.e. where Muslims are encouraged to save, and deposit their sav-ings to perform Hajj, this initiative intends to address the exploitation of pilgrims going for hajj.

CreAtioN oF tAhA ALAm SdN Bhd (“tAhA”)

In the last quarter of 2012, ICD and Theta Edge Berhad (TE), a subsidiary of Lembaga Tabung Haji Group of Malaysia (Pilgrim Funds Board), joined hands and established a dedicated Hajj and Umrah advisory and management company. The company is called Taha Alam Sdn Bhd (“Taha”), www.taha99.com

Taha provides both Hajj-related saving management and Hajj management services globally and it is intended that this collaboration would result in a marked improvement in Hajj and Umra services for all Muslims, while also facilitating the development of Muslim nations.

Table 3 highlights the hajj and Umra value chain highlight-ing the opportunities for increased business efficiencies.

the rAtioNALe For iCd’S iNvoLvemeNt:

The following key steps are applied when ICD lends funds to its

counterparties under the Commodity Murabaha structure and

also handles LME Trades:

• Facilitate the transfer of knowledge and knowhow of Tabung Haji experience in organizing Hajj and Umra services;

• Bring synergy and value addition to the new company through a partnership between ICD and the Malaysia institution;

• Increase the savings rate and fund mobilisation in the targeted Muslim nations;

• Provide advisory services to governments on handling visa operations, the overall hajj management framework and assisting in the creation of centralised hajj and Umra institutions;

• Set global standards for hajj and Umra service efficiency; and

• Enable more Muslims to perform hajj and Umra.

In addition the IDB Group would like to bring hajj management expertise to countries in need of good hajj management. This is in line with the Member Country Programme Strategy for Malaysia in which one of the pillars is for the reverse linkages.

It is ICD’s hope that this Taha initiative would be a good platform for Malaysia and Tabung Haji to share its expertise and experience in Hajj-related services globally and to fill the gap in the lack of savings avenues open to pilgrims.

*The Editor would like to thank the ICD Business Development & Partnership Department for contributing this article.

Table 2: The Muslim population globally is rapidly growing and now accounts for 23% of the world’s population

Source: Pew research centre, U.S. Census Bureau, Arthur D. Little analysis

Source: Pew research centre, U.S. Census Bureau, Arthur D. Little analysis

Table 3: The total Hajj and Umra value chain encompasses close to 30 distinct activities, involving a series of support industries

Source: Arthur D. Little analysis

Country Muslim population % of total population

Indonesia 204,847,000 88.1

Pakistan 178,097,000 96.4

India 177,286,000 14.6

Bangladesh 148,607,000 90.4

Egypt 80,024,000 94.7

Nigeria 75,728,000 47.9

Iran 74,819,000 99.6

Turkey 74,819,000 98.6

Algeria 34,780,000 98.2

Morocco 32,381,000 98.2

Iraq 31,108,000 98.9

Sudan 30,855,000 71.4

Afghanistan 29,047,000 99.8

Ethiopia 28,721,000 33.8

Uzbekistan 26,833,000 96.5

Saudi Arabia 25,493,000 97.1

Yemen 24,023,000 99

China 23,308,000 1.8

Syria 20,895,000 92.8

Malaysia 17,139,000 61.4

Country Muslim population % of total population

Russia 16,379,000 11.7

Niger 15,627,000 98.3

Tanzania 13,450,000 29.9

Senegal 12,333,000 95.9

Mali 12,316,000 92.4

Tunisia 10,349,000 99.8

Burkina Faso 9,600,000 58.9

Somalia 9,231,000 98.6

Kazakhstan 8,887,000 56.4

Azerbaijan 8,795,000 98.4

Guinea 8,693,000 84.2

Ivory Coast 7,960,000 36.9

Tajikistan 7,006,000 99

Chad 6,404,000 55.7

Jordan 6,397,000 98.8

Libya 6,325,000 96.8

Mozambique 5,340,000 22.8

Kyrgystan 4,927,000 88.8

Turkmenistan 4,830,000 93.3

Philippines 4,737,000 5.1

Table 1. The countries with the largest Muslim populations are mainly located in the MENA and South Asian regions.

Increasing share of globalpopulation is Muslim

Higher population growthrate for Muslims

Global Muslim population is relatively young

1990 2000 2010 2020F 2030F

Ppl (bn) Populationgrowth rate

Age breakdown for Muslim majority countries

0

2

4

6

8

10

% Muslim share of global population

4.2

2.3%2.1%

1.7%

1.4%

1.2%1.0%

0.9%

0.6%

1.1 1.3 1.6 1.9 2.2

4.85.3

5.8

6.1

Muslim Non-Muslim

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Non-MuslimMuslim

2020-2030

2010-2020

2000-2010

1990-2000

>60

45-59

30-44

15-29

0-14

Age breakdown for Non-Muslim majority countries

>60

45-59

30-44

15-29

0-14

32%

29%20%

7%

11%28%

25%21%

12%

15%

Haj and Umra Value Chain

Pre-Haj/Umra During Haj/Umra Applicable to Umra also

Savings

Haj

Airline

Visa

Lodging

Advanced

Medical

Haj & Umra

Ground

F&B

Travel

Preparation

Procurement

Travel to

Customs &

Food and

Lodging

Ground

Telephone

Cash

Medical

Security &

Travel to

Performance

Performance

Return

Ziarah to

Shopping &

Settlement


09 10

The ICD Food and Agribusiness Fund

jAIz BAnK: THE FIRST ISLAMIC (nOn- InTEREST ) BAnK In nIgERIA*

In Nigeria, confidence in the viability of the non-interest banking model is growing by the day. The business potential for a non-Interest Bank in Nigeria is enormous. Just such an institu-

tion has been long awaited by a population of over 78 million Nigerians, representing over 50% of the country’s population of an estimated 155 million craving for such non-interest banking services.

In 2012 Jaiz Bank, Nigeria’s first Islamic bank, opened shop. Several attempts to establish Islamic banks in Nigeria in the past have met stiff resistance from religious quarters, most of it based on ignorance, fear of the unknown or both.

Since it opened shop Jaiz has witnessed phenomenal growth in customer base, assets and branch network. It is an unquoted public company owned by over 3000 shareholders spread over the six geographical zones of Nigeria and is being positioned to be a national bank, offering its services to all, regardless of religious beliefs. The bank obtained a regional operating license to operate as a non-interest bank from the Central Bank of Nigeria (CBN), on the 11th of November 2011, and began full operations as the first Non-Interest Bank in Nigeria on the 6th of January, 2012, with 3 branches located in Abuja FCT, Kaduna and Kano.

From a humble start of just three branches in 2012, today, the bank operates from 10 branches and it is eyeing doubling that number before the end of 2013. The regional license allows the bank to operate geographically in the country. Also, based on recommendations from the Islamic Development Bank (IDB), also a shareholder of the bank, Jaiz Bank Plc has partnered with Islamic Bank Bangladesh (IBBL) for Technical and Management Assistance.

diFFereNt ServiCe oFFeriNGS

Jaiz Bank’s different service offerings include the Jaiz Auto Finance (JAF), which is designed for salary account holders in public, private and other reputable organizations. This operates under the principle of Murabaha (Cost plus mark-up).

The Bank purchases the vehicle and sells it to the customer with a reasonable mark-up (otherwise called profit). The

repayment is structured under an agreed deferred period which could be in lump sum or by fixed installments. Its features are available for both new and fairly used cars, with a maximum tenor of 3 years for fairly used cars and 4 years for new cars. It has easy and convenient repayment plan which requires a maximum Commitment Deposit (Hamish Jiddiyyah) of 20% for fairly used and 10% for new cars.

JAiz hoUSehoLd APPLiANCe ProdUCt

There is also the Jaiz Household Appliance (HAS), which is a consumer financing product based on the principle of Murabaha (cost plus mark–up) and Bai-Muajjal (sale on credit). It is a convenient asset acquisition scheme which enables the customer to acquire household items without the burden of instant payment. The repayment is struc-tured over an agreed period, usually on a monthly basis. It is suitable for acquisition of any household asset(s), and requires a minimum Commitment Deposit (Hamish Jid-diyyah) of 10%; it has an easy and convenient repayment plan with a maximum tenor of 2 years.

JAiz home FiNANCe

There is also the Jaiz Home Finance (JHF), a home finance product that enables customers to acquire, complete or even renovate a home under the principle of Ijara wa Iqtina (a lease to own). The asset/property is purchased/constructed and owned by both the bank and the customer jointly. The Bank then leases its part to the customer against agreed rental payment over a contracted period of time. The product is targeted at salary account holder’s, professionals, business owners, landowners and non-resident Nigerians, etc. and requires a minimum equity contribution of 20% and has a maximum tenor of 7 years.

worKiNG CAPitAL ANd FiNANCe

Another product is the Murabaha (Cost plus financing).This is a convenient financing product for corporate and individual customers. It is tailored for short-term finance requirements (working capital or asset acquisition) and it allows the customer the flexibility for a differed repayment over an agreed period either in lump sum or fixed install-ments. It is suitable for acquisition arrangement (partner-ship, lease and sale) whereby both the customer and the Bank purchase and own an asset jointly.

Here, the customer agrees to lease the Bank’s portion with an option of taking full ownership upon full payment of

the Bank’s share. Thus, the monthly payment is made up of two components: a purchase of the Bank’s share and a rental fee. It also has a flexible and convenient payment option and also requires a minimum equity contribution of 20% with a maximum tenor of 7 years.

FUtUre deveLoPmeNtS

The bank has products in place for Corporate clients. Our Murabaha Product allows us the flexibility to finance the working capital requirements of our customers while we use Ijara to finance asset acquisition.

In the short time the bank has been in operation, we have signed up industry leaders in various segments of the economy. We are also participating in Public Private Partnerships with a number of State Governments all over Nigeria. All these service offerings guarantee competitive pricing. Though Jaiz Bank is focused mainly on retail banking we also offer corporate and commercial banking services.

JoUrNeY So FAr

The journey thus far has not been easy by any means but Jaiz has weathered the storm. Indeed the future is exciting. The next vista for us is to get our National License so we can be present in every state of the Nigerian Federation.

We are introducing a Mobile Banking Platform to capture the unbanked and International Payment Cards for more convenience to our customers.

The bank is also working with partners in the Islamic Finance industry to introduce new instruments into the market especially Sukuk which is in its infancy in Nigeria with only 1 issuance.

We will continue to work with newly licensed Islamic Banking windows and the Central Bank of Nigeria to develop liquidity management instruments for Islamic Banks in Nigeria.

We cherish our pioneer status and we will continue to blaze the trail of Islamic Finance in Nigeria for many years to come In Sha Allah.

*The Editor would like to thank Abdul Malik Mahdi , Assistant Manager, Abuja Branch, Jaiz Bank for contribut-ing this article.

Abdul malik mahdiAssistant Manager, Abuja Branch, Jaiz Bank


11 12

ICD gUIDE TO SUKUK MARKET TERMInOLOgy : PART 3*

دليل المؤسسة لمصطلحات قطاع الصكوك: الجزء الثاني*

iCd Guide to Sukuk market terminology دليل المؤسسة لمصطلحات قطاع الصكوك

term definition التعريف المصطلح

dhaman

A contract of guarantee whereby a guarantor will underwrite any claim and obligation that should be fulfilled by an owner of the asset. This concept is also applicable to a guarantee provided on a debt transaction in the event a debtor fails to fulfil his debt obligation.

عقد الضمان يتعهد بموجبه الضامن بضمان تلبية أي مطالبة أو الوفاء بأي التزام اتجاه مالك األصول. و ينطبق هذا المفهوم على الضمان المقدم في عمليات االستدانة في حال تخلف المدين عن سداد ديونه. الضمان

excess spread

Excess spread is the difference between the gross yield on a pool ofsecuritized assets and the cost of financing those assets, including applicable servicing fees.

Excess spread can be a source of credit enhancement for securitized assets, provided that it is available to absorb losses on the assets.

يمثل الفرق الزائد الفرق بين العائد اإلجمالي على مجموعة من األصول المورقة وتكلفة تمويل هذه األصول، ويشمل ذلك الرسوم المطبقة على الخدمات.

يمكن أن يكون الفرق الزائد مصدرا لتعزيز ائتمان األصول المورقة، شريطة أن يتمكن من استيعاب الخسائر المحتملة على هذه األصول.

الفارق الزائد

Gharar

Gharar is an element of deception either through ignorance of the goods, the price, or through faulty descrip-tion of the goods, in which one or both parties stand to be deceived through ignorance of an essential element of the exchange. As an example, gambling is a form of Gharar because the gambler is ignorant of the result of the gamble.

يمثل الغرر حالة خداع إما عن جهل بالبضائع واألسعار، أو بفعل الوصف الخاطئ للبضائع، حيث يتم تضليل أحد أو كال الطرفين لجهلهما بعنصر أساسي في المعاملة. وكمثال على ذلك، يعتبر القمار شكال من أشكال الغرر ألن المقامر يجهل نتيجة المقامرة. الغرر

haq maliyHaq maliy are rights on the financial assets. Examples of such rights are haq dayn (debt rights) and haq tamalluk (ownership rights). هي حقوق على األصول المالية، ومن أمثلة هذه الحقوق حق الدين )حقوق الديون( وحق التملك )حقوق الملكية(. حق مالي

hibah A gift awarded to a person. هدية يقدمها الواهب إلى الموهوب له. هبة

hiwalah A contract that allows a debtor to transfer his debt obligation to a third party. عقد يسمح بموجبه للمدين بنقل التزامات ديونه إلى طرف ثالث. حوالة

ibra’An act by a person to withdraw his rights i.e. his rights to collect payment from a person who has the obliga-tion to repay the amount borrowed from him. إجراء يتم من قبل شخص إللغاء حقه في تحصيل المبالغ التي أقرضها للشخص المدين. إبراء

ijara Sukuk

These certificates are issued on stand-alone assets identified on the balance sheet. The assets can be parcels of land to be

leased or leased equipment such as aircraft and ships.

The rental rates of returns on these Sukuk can be both fixed and floating depending on the particular originator. The

income generated under an Ijara Sukuk comes from the underlying rent receivables

هي شهادات يتم إصدارها على أصول قائمة بذاتها محددة في الميزانية. و هذه األصول يمكن أن تكون قطعا أرضية لإليجار أو معدات مؤجرة مثل الطائرات والسفن.

و يمكن لمعدالت العوائد من إيجار هذه الصكوك أن تكون ثابتة أو متداولة اعتمادا على جهة اإلصدار. و يحقق الدخل فيما يخص صكوك اإلجارة من المستحقات األساسية لإليجار.

صكوك اإلجارة

ijarah thumma Bai’

A contract which begins with an Ijara contract for the purpose of renting out/ leasing the lessor’s asset to the lessee.

Consequently, at the end of the lease period, a lessee will purchase the asset at an agreed price from the lessor by

executing a purchase (Bai’) contract.

عقد يبدأ بعقد إجارة حيث يؤجر بموجبه المؤجر أحد أصوله إلى المستأجر. و في نهاية فترة اإليجار، يقوم المستأجر بشراء األصل بسعر متفق عليه من المؤجر عن طريق تنفيذ عقد البيع )الشراء(. اإلجارة ثم البيع

Issuer In context of securitisations this refers to the SPV which issues the securities to the investors. في سياق التوريق، جهة اإلصدار هي الشركة ذات األغراض الخاصة التي تصدر األوراق المالية للمستثمرين. جهة اإلصدار

Abderrahim Khairate ICD Translator

*The Editor would like to thank Abderrahim Khairate , the ICD Translator for contributing this translation.

ICD Guide to Sukuk Market Terminology : Part 3


13 14

ICD Member Development Database A-B

ICD MEMBER DEVELOPMEnT DATABASE (52 Countries) ICD MEMBER DEVELOPMEnT DATABASE (52 Countries)

ALBANiA

Demographics

Total Population 3,002,859

Foreign Currency Credit Ratings

Moody’s

Lon

g-t

erm

B1

Sh

ort

-ter

m

NR

Muslim Population 2,102,001 Standard & Poor’s B+ B

Muslim % 70% Fitch NR NR

development indicators

Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 76 76.2 76.3 76.5 76.6 76.8 76.9 77.1

Adult literacy 98.7 95.9

Poverty rate (at $1.25 poverty line) 0.6 0.5 0.9 0.6

GDP per capita current US $ 1,322.6 1,433.7 1,847.2 2,350.9 2,613.8 2,860.5 3,384.1 4,086.6 3,809.2 3,704.5 4,020.0 4,148.9

Population growth (annual %) 0.180 0.402 0.546 0.583 0.541 0.470 0.413 0.369 0.355 0.361 0.365 0.260

BAhrAiN

Demographics



Moody’s

Lon

g-t

erm

Baa1

Sh

ort

-ter

m

NR

Muslim Population 1,013,659 Standard & Poor’s BBB A-2

Muslim % 81% Fitch BBB F3

ALGeriA

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR

Muslim Population 36,993,554 Standard & Poor’s NR NR


BANGLAdeSh

Demographics



Moody’s

Lon

g-t

erm

Ba3

Sh

ort

-ter

m

NR

Muslim Population 144,170,005 Standard & Poor’s BB- B


AzerBAiJAN

Demographics



Moody’s

Lon

g-t

erm

Baa3

Sh

ort

-ter

m

NR

Muslim Population 8,867,022 Standard & Poor’s BBB- A-3

Muslim % 93% Fitch BBB- F3

BeNiN

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR

Muslim Population 2,342,104 Standard & Poor’s B B



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 71.7 72 72.2 72.4 72.7 72.9 73.1 73.4


Poverty rate (at $1.25 poverty line)




Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012



Poverty rate (at $1.25 poverty line) 6.3 0.4

GDP per capita current US $ 703.7 763.1 883.6 1,045.0 1,578.4 2,473.0 3,851.3 5,574.6 4,950.3 5,843.2 6,911.9 7,227.5



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) .. .. .. .. 74.3 74.4 74.5 74.7 74.8 74.9 75.1 75.2






Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 66.9 67.3 67.7 68 68.3 68.6 68.9 69.2



GDP per capita current US $ 348.8 347.2 373.0 400.5 421.1 427.3 467.1 537.6 597.7 664.1 732.1 747.3



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 53.9 54.2 54.5 54.9 55.2 55.7 56.1 56.5


Poverty rate (at $1.25 poverty line) 47.3




15 16

ICD Member Development Database B-C


BrUNei

Demographics

Total Population 408,786


Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR

Muslim Population 273,887 Standard & Poor’s NR NR


ChAd

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



BUrKiNA FASo

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



CAmerooN

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR


Muslim % 20% Fitch B B

Côte d’ivoire

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



ComoroS

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR




Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 77.2 77.3 77.5 77.6 77.7 77.9 78 78.1






Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 52.5 53 53.6 54.1 54.5 55 55.4 55.9

Adult literacy 21.8 23.6 28.7





Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 70.7


GDP per capita current US $ 589.2 648.3 790.9 892.5 914.6 964.6 1,069.9 1,211.3 1,103.7 1,090.4 1,196.8 1,151.4



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012







Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 74.9





Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 51.5 52.1 52.7 53.3 54 54.7 55.4 56

Adult literacy 56.2





17 18

ICD Member Development Database D-G


eGYPt

Demographics



Moody’s

Lon

g-t

erm

B2

Sh

ort

-ter

m

NR


Muslim % 90% Fitch B+ B

GABoN

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR

Muslim Population 16,083 Standard & Poor’s BB- B

Muslim % 1% Fitch BB- B

GUiNeA

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



GUiNeA BiSSAU

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



dJiBoUti

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



GAmBiA

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR




Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy





Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 71.6 71.9 72.2 72.5 72.8 73 73.2 73.5






Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012







Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 50.0





Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012







Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 54.2





19 20

ICD Member Development Database I-K


irAQ

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



JordAN

Demographics



Moody’s

Lon

g-t

erm

Ba2

Sh

ort

-ter

m

NR

Muslim Population 5,988,176 Standard & Poor’s BB B


KUwAit

Demographics



Moody’s

Lon

g-t

erm

Aa2

Sh

ort

-ter

m

NR

Muslim Population 2,249,367 Standard & Poor’s AA A-1+

Muslim % 85% Fitch AA F1+

irAN

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



KAzAKhStAN

Demographics



Moody’s

Lon

g-t

erm

Baa2

Sh

ort

-ter

m

NR

Muslim Population 8,235,344 Standard & Poor’s BBB+ A-2

Muslim % 47% Fitch BBB F3

iNdoNeSiA

Demographics



Moody’s

Lon

g-t

erm

Baa3

Sh

ort

-ter

m

NR

Muslim Population 214,083,352 Standard & Poor’s BB+ B



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 90.4 92.0 92.2 92.6

Poverty rate (at $1.25 poverty line) 29.3 21.4 28.6 24.2 22.6 20.4 18.1 16.2

GDP per capita current US $ 756.9 909.9 1,076.2 1,160.6 1,273.5 1,601.0 1,871.3 2,178.3 2,272.0 2,946.7 3,471.4 3,556.8



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 77.0 82.4 82.3 85.0





Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 68.4 68 67.8 67.8 68.1 68.5 69 69.6

Adult literacy 78.2


GDP per capita current US $ 772.4 751.6 956.4 1,342.1 2,321.2 3,091.0 4,472.1 3,701.9 4,375.9 5,686.6 6,454.6



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 89.9 91.1 92.2 92.6





Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 65.2 65.4 65.7 66 66.3 66.7 67 67.4

Adult literacy 99.7

Poverty rate (at $1.25 poverty line) 13.6 5.2 3.1 1.7 0.4 0.2 0.1 0.1


Population growth (annual %) (0.170) 0.004 0.336 0.695 0.889 1.058 1.144 1.218 2.641 1.418 1.432 1.432


Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 93.3 93.3 93.7 93.9





21 22

ICD Member Development Database K-M


LiBYA

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



mALAYSiA

Demographics



Moody’s

Lon

g-t

erm

A3

Sh

ort

-ter

m

NR

Muslim Population 17,624,691 Standard & Poor’s A- A-2

Muslim % 60% Fitch A- F2

mALi

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



LeBANoN

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



mALdiveS

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



KYrGYzStAN

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR




Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 66.6 66.6 66.7 66.9 67.1 67.4 67.7 68

Adult literacy 99.2

Poverty rate (at $1.25 poverty line) 34.0 14.2 22.9 5.9 1.9 6.4 6.2 6.7 5.03

GDP per capita current US $ 308.4 321.7 380.5 433.2 476.5 543.1 721.8 966.4 871.2 880.0 1,123.9 1,159.6



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 89.6





Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012




GDP per capita current US $ 5,404.5 3,715.6 4,437.4 6,062.2 7,864.9 9,933.1 12,418.2 15,853.5 10,455.6



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 93.1





Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 98.4





Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 49 49.4 49.8 50.2 50.6 51 51.4 51.9


Poverty rate (at $1.25 poverty line) 61.2 51.4 50.4




23 24

ICD Member Development Database M-P


mozAmBiQUe

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



NiGer

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



PAKiStAN

Demographics



Moody’s

Lon

g-t

erm

Caa1

Sh

ort

-ter

m

NR

Muslim Population 180,776,572 Standard & Poor’s B- B


moroCCo

Demographics



Moody’s

Lon

g-t

erm

Ba1

Sh

ort

-ter

m

NR

Muslim Population 31,986,146 Standard & Poor’s BBB- A-3


NiGeriA

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



mAUritANiA

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR

Muslim Population 3, 359,185 Standard & Poor’s NR NR



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 57.3 57.4 57.5 57.7 58 58.3 58.6 58.9

Adult literacy 58.0


GDP per capita current US $ 464.1 460.3 527.1 600.1 694.3 939.2 1,008.0 1,107.3 860.9 1,017.2 1,154.1 1,106.1



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 70.4 70.7 71 71.3 71.6 71.9 72.2 72.4






Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012







Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012







Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 49 49.5 50 50.5 51 51.4 51.9 52.3



GDP per capita current US $ 380.9 457.5 510.4 645.9 804.2 1,014.7 1,127.3 1,369.7 1,085.0 1,431.6 1,486.0 1,555.4



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 49.9 54.2 55.5 54.9


GDP per capita current US $ 492.4 483.0 546.2 631.5 693.8 792.4 873.4 981.3 951.4 1,019.2 1,196.3 1,290.4



25 26

ICD Member Development Database P-S


SeNeGAL

Demographics



Moody’s

Lon

g-t

erm

B1

Sh

ort

-ter

m

NR



SAUdi ArABiA

Demographics



Moody’s

Lon

g-t

erm

Aa3

Sh

ort

-ter

m

NR

Muslim Population 26,534,504 Standard & Poor’s AA- A-1+

Muslim % 100% Fitch AA- F1+

SUdAN

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



QAtAr

Demographics



Moody’s

Lon

g-t

erm

Aa2

Sh

ort

-ter

m

NR

Muslim Population 1,512,483 Standard & Poor’s AA A-1+


SierrA LeoNe

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



PALeStiNe

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR




Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 92.3 93.4 93.9 94.1 94.6 94.9


GDP per capita current US $ 1,111.6 921.0 996.6 1,114.4 1,209.5



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 89.0 93.1 94.0 94.7 96.3





Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 72.5 72.8 73 73.3 73.5 73.7 73.9 74.1






Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Life expectancy (yrs) 57.4 57.7 58 58.3 58.7 59 59.3 59.6



GDP per capita current US $ 482.0 513.4 642.5 732.2 771.8 808.9 950.8 1,093.8 1,014.5 992.6 1,083.8 1,031.6



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012







Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 71.1





27 28

ICD Member Development Database S-T


tAJiKiStAN

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



tUrKmeNiStAN

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



tUrKeY

Demographics



Moody’s

Lon

g-t

erm

Ba1

Sh

ort

-ter

m

NR

Muslim Population 79,589,962 Standard & Poor’s BB B

Muslim % 100% Fitch BB+ B

SYriA

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



tUNiSiA

Demographics

Total Population 10732900


Moody’s

Lon

g-t

erm

Baa3

Sh

ort

-ter

m

NR

Muslim Population 10518242 Standard & Poor’s BB B


SUriNAme

Demographics



Moody’s

Lon

g-t

erm

Ba3

Sh

ort

-ter

m

NR

Muslim Population 109,791 Standard & Poor’s BB- B



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012







Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012




GDP per capita current US $ 1,263.4 1,269.9 1,261.9 1,419.3 1,588.5 1,772.6 2,065.5 2,584.4 2,564.5 2,746.9 3,289.1



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 99.7





Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012







Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 87.4 88.2 88.1 88.7 90.8

Poverty rate (at $1.25 poverty line) 2.0 2.5 2.4 2.0 1.5 1.1 - 0.6 1.3




Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 99.6


GDP per capita current US $ 776.6 970.0 1,286.0 1,455.9 1,707.0 2,140.5 2,606.7 3,918.9 4,060.0 4,479.0 5,495.1 6,510.6



29 30


nOTES

UzBeKiStAN

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



YemeN

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



UGANdA

Demographics



Moody’s

Lon

g-t

erm

NR

Sh

ort

-ter

m

NR



ICD Member Development Database U-z

UAe

Demographics



Moody’s

Lon

g-t

erm

Aa2

Sh

ort

-ter

m

NR

Muslim Population 5,101,744 Standard & Poor’s AA * A-1+ *

Muslim % 96% Fitch AA * F1+ *


Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 90.0





Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012







Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Adult literacy 99.4


GDP per capita current US $ 456.7 383.3 396.1 465.1 546.8 643.0 830.4 1,023.1 1,181.8 1,364.8 1,544.7 1,716.5



Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012







31 32

nOTES nOTES

VISIONTo be a major player in the development and promotion of the private sector as a

vehicle for economic and social growth and prosperity in its member countries.

ACTIVITIESThe overall objectives of ICD are:

To identify opportunities in the private sector that could function as engines of growth and providing them with a wide range of productive financial products and services.

To encourage the development of Islamic financing and capital markets.

MISSIONComplement the role played by the Islamic Development Bank through:

Providing Islamic financial services and products.

Promoting competition and entrepreneurship in member countries.

Advising governments and businesses.

Encouraging cross country investments.

Islamic Corporation for the Development of the Private Sector

P.O. Box 54069, Jeddah 21514Kingdom of Saudi Arabia

Tel: +966 2 644 1644Fax: +966 2 644 4427

www.icd-idb.org

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