Monday 18 August 2014

U.A.E. Margin Trade Crackdown Fans Shariah Push: Islamic Finance - Bloomberg

U.A.E. Margin Trade Crackdown Fans Shariah Push: Islamic Finance - Bloomberg:



"Brokerages in the United Arab Emirates, where the market regulator last month vowed it may create new rules to control so-called margin trading, are increasingly offering Shariah-compliant versions of the service.



Mena Corp. Financial Services LLC, an Abu Dhabi-based investment firm, signed a 50 million-dirham ($13.6 million) accord last week with Dubai-based Aafaq-Islamic Finance Company to offer Shariah-compliant margin trading, where banks and brokers lend money to investors to trade. Al Safwa Islamic Financial Services was one of five firms accredited to provide margin trading this month, the Dubai Financial Market announced Aug. 5.



“You have more and more firms acquiring licenses,” Abu Dhabi-based Fathi Ben Grira, chief executive officer of Mena Corp., said by phone yesterday. “We’re pretty convinced there will be a strong appetite.” The deal with Aafaq may grow to as much as 350 million dirhams by year-end, he said."



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