After the initial burst of enthusiasm that greeted the initiative to make Dubai the capital of the global Islamic economy, a gentle note of caution has crept in.
Some analysts see the ambition, and especially the goal of overtaking London as the world capital of the sukuk business, as a challenge perhaps too tough even for the emirate's "can-do" mentality.
Mohieddine Kronfol is in a good position to judge. He is the chief investment officer for global sukuk and fixed income business for Franklin Templeton, one of the world's biggest asset managers with some US$800 billion (Dh2.93 trillion) of funds under management around the globe.
"I welcomed the announcement of the Islamic [bonds] initiative, and I certainly think Dubai can establish itself in a leadership position. But it is a long-term vision and it has to be done holistically," he says.
His firm made its own contribution to the enterprise a couple of weeks ago with the announcement in Dubai that it was launching three Sharia-compliant investment funds.
The launch had the blessing of Mark Mobius, the legendary head of emerging markets at Franklin, who said its global sukuk fund in particular had "enormous potential". Mr Kronfol shares that enthusiasm. "You don't get firms with $800bn or people like Mr Mobius getting that excited every day."
But he believes Dubai, and the region, need to be more mature in their overall approach to finance if they are to lead the Islamic economy. "If you want liquid and deep financial markets you need more variety, and to behave in different ways than they do now.
"You need multiple actors to do business at different times and in different ways."
He cites the lack of a pension fund industry, the relative immaturity of the insurance and asset management businesses as examples of lack of financial depth.
That does not mean Franklin is in any way lukewarm about the Islamic financial business.
The firm has been running Sharia-compliant business for 10 years, and took the bold step of opening an office in Malaysia in 2008 when the rest of the financial world was running scared during the financial crisis.
Malaysia is the world's second biggest sukuk trading centre, after London, and Mr Kronfol believes the attitude of the Malaysian government has been significant. It has helped harness funds by big institutions, he says. "We have a good track record in Malaysia of working with the government, and would like to see it replicated in the GCC region."
The region's sovereign wealth funds have been putting more of their resources in the region in recent years, and he hopes this will continue. "Not just to repay debt, which isn't an issue anyway in places like Abu Dhabi and Saudi Arabia, but to help with the overall diversification of the economy. Outside Dubai, there's been a conspicuous absence of government issues over recent months."
He believes that overall demand for sukuk issues remains "very robust and healthy" - which is perhaps the main reason for Franklin's recent triple launch.
The Global Sukuk Fund, with some $20 million of seed capital, will channel investors into Islamic bonds around the world; the Sharia Asian Growth Fund, with $5m start-up funding, will focus on commodity, consumer and bank sectors; the Sharia Global Equity Fund, also with $5m, will look at share investment in Sharia-compliant industries round the world.
Although the sukuk fund will be managed from Dubai in cooperation with Kuala Lumpur, all three funds will be domiciled and regulated in Luxembourg, where many of Franklin's funds are based.
The decision to chose the small European financial centre rather than Dubai illustrates another of the challenges the emirate faces in its bid for world leadership.
"Luxembourg is the most accepted and respected regulatory body. In Dubai, the regulatory environment is going through some changes, and I believe Dubai is not yet 'passportable' in terms of having access to other countries.
"Maybe it will down the line, but at the moment its difficult to make products portable, for example to Muslim investors in European countries. We've been in talks with the regulators here and they are cooperative and reaching out, but it may take a little time."
He points to other challenges in Dubai's initiative. The emirate has proposed a sukuk trading platform run by the Nasdaq Dubai exchange, but Mr Kronfol sees a flaw in this approach.
"Where you list a sukuk doesn't really matter, because most are traded on the over-the-counter [non-exchange] market. Yes, there are attractions to a platform, but you have to have the right service providers and regulatory environment. Investors won't go to an exchange for no reason."
Despite these reservations, Franklin is committed to Dubai and to the Islamic financial industry. The recent launches were "a milestone for the firm, and the industry. It is good for Sharia, and for the world."
Killing of Qassem Suleimani
Origin
Dan Brown
Doubleday
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
Farasan Boat: 128km Away from Anchorage
Director: Mowaffaq Alobaid
Stars: Abdulaziz Almadhi, Mohammed Al Akkasi, Ali Al Suhaibani
Rating: 4/5
Zayed Sustainability Prize
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
A timeline of the Historical Dictionary of the Arabic Language
- 2018: Formal work begins
- November 2021: First 17 volumes launched
- November 2022: Additional 19 volumes released
- October 2023: Another 31 volumes released
- November 2024: All 127 volumes completed
What is double taxation?
- Americans living abroad file taxes with the Internal Revenue Service, which can cost hundreds of dollars to complete even though about 60 per cent do not owe taxes, according to the Taxpayer Advocate Service
- Those obligations apply to millions of Americans residing overseas – estimates range from 3.9 million to 5.5 million – including so-called "accidental Americans" who are unaware they hold dual citizenship
- The double taxation policy has been a contentious issue for decades, with many overseas Americans feeling that it punishes them for pursuing opportunities abroad
- Unlike most countries, the US follows a citizenship-based taxation system, meaning that Americans must file taxes annually, even if they do not earn any income in the US.
Company%20Profile
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COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
Citizenship-by-investment programmes
United Kingdom
The UK offers three programmes for residency. The UK Overseas Business Representative Visa lets you open an overseas branch office of your existing company in the country at no extra investment. For the UK Tier 1 Innovator Visa, you are required to invest £50,000 (Dh238,000) into a business. You can also get a UK Tier 1 Investor Visa if you invest £2 million, £5m or £10m (the higher the investment, the sooner you obtain your permanent residency).
All UK residency visas get approved in 90 to 120 days and are valid for 3 years. After 3 years, the applicant can apply for extension of another 2 years. Once they have lived in the UK for a minimum of 6 months every year, they are eligible to apply for permanent residency (called Indefinite Leave to Remain). After one year of ILR, the applicant can apply for UK passport.
The Caribbean
Depending on the country, the investment amount starts from $100,000 (Dh367,250) and can go up to $400,000 in real estate. From the date of purchase, it will take between four to five months to receive a passport.
Portugal
The investment amount ranges from €350,000 to €500,000 (Dh1.5m to Dh2.16m) in real estate. From the date of purchase, it will take a maximum of six months to receive a Golden Visa. Applicants can apply for permanent residency after five years and Portuguese citizenship after six years.
“Among European countries with residency programmes, Portugal has been the most popular because it offers the most cost-effective programme to eventually acquire citizenship of the European Union without ever residing in Portugal,” states Veronica Cotdemiey of Citizenship Invest.
Greece
The real estate investment threshold to acquire residency for Greece is €250,000, making it the cheapest real estate residency visa scheme in Europe. You can apply for residency in four months and citizenship after seven years.
Spain
The real estate investment threshold to acquire residency for Spain is €500,000. You can apply for permanent residency after five years and citizenship after 10 years. It is not necessary to live in Spain to retain and renew the residency visa permit.
Cyprus
Cyprus offers the quickest route to citizenship of a European country in only six months. An investment of €2m in real estate is required, making it the highest priced programme in Europe.
Malta
The Malta citizenship by investment programme is lengthy and investors are required to contribute sums as donations to the Maltese government. The applicant must either contribute at least €650,000 to the National Development & Social Fund. Spouses and children are required to contribute €25,000; unmarried children between 18 and 25 and dependent parents must contribute €50,000 each.
The second step is to make an investment in property of at least €350,000 or enter a property rental contract for at least €16,000 per annum for five years. The third step is to invest at least €150,000 in bonds or shares approved by the Maltese government to be kept for at least five years.
Candidates must commit to a minimum physical presence in Malta before citizenship is granted. While you get residency in two months, you can apply for citizenship after a year.
Egypt
A one-year residency permit can be bought if you purchase property in Egypt worth $100,000. A three-year residency is available for those who invest $200,000 in property, and five years for those who purchase property worth $400,000.
Source: Citizenship Invest and Aqua Properties
Company%20Profile
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MATCH INFO
AC Milan v Inter, Sunday, 6pm (UAE), match live on BeIN Sports
