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The Gulf is set for another bumper year of the sukuk

Posted on 05 February 2013 by Laxman  |  Email|Print

Gulf Islamic Bonds or sukuk issues are set to rise in 2013 as Shariah-compliant firms look for quality investments and governments seek financing for big projects. Gulf governments, government- related entities and banks will also take advantage of foreign investor interest in the region to refinance existing debt and raise funding to expand their businesses.
Dubai Electricity and Water Authority has already announced plans for up to $1 billion of sukuk. Gulf governments have also shown a keen interest in developing their Islamic finance industry, with Oman introducing Islamic finance for the first time in 2012 and Dubai announcing in January this year initiatives to boost Islamic finance products……………………………………Full Article: Source

Dubai Islamic Bank 2012 net profit rises 13 pct to AED 1.19 bln

Posted on 05 February 2013 by Laxman  |  Email|Print

Dubai Islamic Bank (DIB) group reported a net profit of AED 1.19 billion, compared to AED 1.05 billion in 2011, an increase of 13 per cent. DIB’s Board of Directors also recommended the distribution of a cash dividend of 15 per cent, subject to regulatory and general assembly approvals.
DIB’s total assets as of December 31, 2012, stood at AED 95.4 billion, compared to AED 90.6billion at the end of the same period in 2011, an increase of 5.3 per cent……………………………………Full Article: Source

AmInvestment named best domestic bond house in Malaysia

Posted on 04 February 2013 by Laxman  |  Email|Print

AmInvestment Bank Bhd was named the best domestic bond house in Malaysia by The Asset magazine in its Triple A Country Awards 2012 for the fourth consecutive year and the fifth time since 2006.
The Asset Triple A Country Awards is Asia’s defining recognition for excellence in the industry. Point scores for both quantitative and qualitative factors were combined in the determination of the winners…………………………………..Full Article: Source

Emirates NBD bank reports 3pct growth in net profits to Dh2.6 bln in 2012

Posted on 01 February 2013 by Laxman  |  Email|Print

Emirates NBD, UAE’s biggest lender by assets, reported a 3 per cent growth in its annual net profits to Dh2.6 billion in 2012, compared to Dh2.5 billion recorded in 2011.
Its total income also rose 3 per cent to Dh10.2 billion while operating profit before impairments rose by 2 per cent to Dh6.5 billion from 2011. Its total assets increased by 8 per cent at Dh308.3 billion at the end of 2012 compared with Dh284.6 billion at the end of 2011, it said in a release on Thursday. The company declared cash dividend of 25 per cent per share………………………………………..Full Article: Source

Tharawat announces its Sukuk Fund annual returns of 9.44pct in 2012

Posted on 31 January 2013 by Laxman  |  Email|Print

Tharawat Investment House (Tharawat), an Islamic investment institution based in the Kingdom of Bahrain, announced 5.06% profit returns of Tharawat Sukuk Fund for the second half of 2012, achieving a total return of 9.44% in 2012, and a cumulative return of 21.98% since its inception in February 2010.
Tharawat will be distributing 4% for the period from July to December 2012, making it the 6th time of such distribution. Tharawat Sukuk Fund is Tharawat’s first open-ended Sharia’a compliant investment product based in the Kingdom of Bahrain. It invests over 70% of its liquidity in government- issued Sukuk and in well-established firms in the GCC, Middle East, North Africa, and Southeast Asia (MENASA) region. (Press Release)

UAE’s First Gulf Bank Q4 profit up 12pct, beats forecast

Posted on 31 January 2013 by Laxman  |  Email|Print

The lender’s profits were boosted by higher interest income and Islamic financing. First Gulf Bank, the UAE’s second-largest lender by market value, on Wednesday beat analysts’ expectations with a 12-per cent rise in fourth-quarter net profit, boosted by higher interest income and Islamic financing.
The bank made a net profit of Dhs1.15 billion ($313.1 million) in the final three months of 2012, up from Dhs1.02 billion in the same period of 2011. Six analysts polled by Reuters forecast an average net profit of Dhs1.024 billion for the quarter………………………………………..Full Article: Source

UAE lender NBAD’s quarterly profit tops estimates

Posted on 30 January 2013 by Laxman  |  Email|Print

National Bank of Abu Dhabi , the UAE’s largest lender by market value, posted a 55-percent rise in fourth-quarter net profit, beating analysts’ forecasts, helped by higher investment income and lower impairment charges.
The majority state-owned bank made a net profit of 1.12 billion dirhams ($305.2 million) in the fourth quarter compared with 724 million dirhams for the prior-year period, it said in a bourse statement on Tuesday………………………………………..Full Article: Source

Bahrain insurance posts solid Q3 growth

Posted on 29 January 2013 by Laxman  |  Email|Print

Bahrain insurance market registered solid growth during the third quarter of 2012, with its gross premiums increasing to BD184.11 million ($480.6 million) by the end of September 2012, up 9 per cent over the same period a year ago.
Announcing this on Tuesday, the Central Bank of Bahrain (CBB) attributed a significant part of the increase to a surge in long-term insurance (Life & Savings Products), registering around 17 per cent increase in gross premiums to reach BD42.34 million in September 2012 compared to BD36.06 million the previous year, representing almost 23 per cent of the gross premiums written in September 2012………………………………………..Full Article: Source

East outperforming West in Islamic finance

Posted on 28 January 2013 by Laxman  |  Email|Print

While lenders in the United States and Europe have downsized their exposure in banking in compliance with Islamic law, Islamic financial institutions in Southeast Asia and the Middle East and Africa (MEA) region are taking over the initiative.
According to global consultancy Ernst and Young, worldwide investments done in line with Islamic law, known as Shari’ah, will reach 1.8 trillion U.S. dollars globally in 2013. There was a time when major Western banks like Citigroup, HSBC, UBS and Deutsche Bank set the pace for the developments in Islamic finance, while their much smaller counterparts in the Muslim world just followed. In recent years, this order has been almost completely shifted in favor of the East………………………………………..Full Article: Source

Rakbank net profit rises 16.6pct

Posted on 28 January 2013 by Laxman  |  Email|Print

UAE-based National Bank of Ras Al-Khaimah (Rakbank) said it has registered a 16.6 per cent growth in its net profit for 2012 which rose to Dh1.4 billion ($381 million) when compared to the same period the year before.
The leading retail and small business bank in the UAE continues to report double digit growth year on year by consistently pursuing its successful strategy towards the business and personal finance segments………………………………………..Full Article: Source

A good year for Islamic finance in Qatar

Posted on 28 January 2013 by Laxman  |  Email|Print

Qatar is ready to go to the top of the Big League of Islamic finance as her economy shifts up a notch in readiness to fulfil the promise of Qatar National Vision 2030. How far Qatar can continue to stay ahead of the curve in a global economy that is still struggling to come to grips with the worst ravages of the global financial crisis?
Several of the Gulf Cooperation Council’s member continue to enjoy economies that are buoyed by revenues from plentiful natural resources, Qatar included, but the International Monetary Fund in recent weeks has urged economies across the Middle East to introduce fiscal restraint and deeper reforms in order to be able to safeguard their future in the midst of a still precarious world economy………………………………………..Full Article: Source

Sime maiden US-dollar sukuk oversubscribed 10 times

Posted on 24 January 2013 by Laxman  |  Email|Print

Sime Darby Bhd’s maiden US dollar-sukuk issuance for a total of US$800mil (RM2.4bil) has been oversubscribed by 10 times, reflecting the conglomerate’s strong order book of more than US$8bil held via 376 orders from high-quality investors.
“This issuance is considered highly successful, notwithstanding the heavy supply in the primary US dollar bond market,” said the company. To be issued in two tranches, the company has priced the US$400mil (RM1.2bil) five-year sukuk issue at a fixed coupon rate of 2.053% and the US$400mil 10-year sukuk issue at a fixed coupon rate of 3.29%………………………………………..Full Article: Source

Islamic finance: Robust growth and hidden value

Posted on 24 January 2013 by Laxman  |  Email|Print

Sukuk markets had a record year in the primary markets with issuance totalling USD 139B in 2012, a 64.1% YoY increase. We expect demand for sukuk to continue exceeding supply. The upgrade and development of infrastructure in both the GCC and Asia will continue to provide appealing sukuk investment opportunities, particularly in Saudi Arabia.
Sukuk volatility is relatively low compared with emerging markets debt, due to the thin nature of its secondary markets and the typically higher credit quality of issuers………………………………………..Full Article: Source

Tamweel net profit drops 29pct

Posted on 24 January 2013 by Laxman  |  Email|Print

Tamweel , the UAE Islamic home finance provider, net profit dropped 29 per cent to Dh72 million in 2012 as compared to Dh102 million in the previous year due to exceptional provisions relating to certain ongoing litigations for which the company made full provision while continuing to fight its rights.
Tamweel reported operating income at Dh603 million in 2012 compared with Dh601 million in 2011……………………………………….Full Article: Source

Qatar Islamic Bank net profit plunges 50pct

Posted on 22 January 2013 by Laxman  |  Email|Print

Qatar Islamic Bank (QIB), the country’s second-largest lender by market value, said fourth-quarter net profit fell more than 50 percent due to higher provisions.
The bank made a net profit of QR110 million ($30.2 million) in the three months to December 31, according to Reuters calculations, compared with QR265 million in the same period a year ago and widely missing analysts’ average forecast of QR328.58 million………………………………………..Full Article: Source

NBK reports net profits of $ 1.09 bln

Posted on 22 January 2013 by Laxman  |  Email|Print

National Bank of Kuwait (NBK), the largest Kuwaiti bank and the highest-rated in the Middle East, reported net profits of $ 1.09 billion (KD 305.1 million) for the year 2012 compared with $ 1.08 billion (KD 302.4 million) for 2011.
At year-end, NBK Group’s total assets reached $ 58.4 billion (KD 16.4 billion) up from $ 48.5 billion (KD 13.6 billion) in 2011, while total group shareholders’ equity reached $ 8.2 billion (KD 2.3 billion), up 6 percent year on year………………………………………..Full Article: Source

Qatar Islamic Bank 2012 profit drops 9.5pct on higher provisions

Posted on 21 January 2013 by Laxman  |  Email|Print

Qatar Islamic Bank (QIBK) posted a 9.5 percent decline in profit last year as the country’s biggest Shariah-compliant lender by assets raised provisions against bad loans.
Net income was 1.24 billion riyals ($341 million), the Doha-based lender said in an e-mailed statement. That compared with profit of 1.37 billion riyals in 2011. The mean estimate of seven analysts was for profit of 1.46 billion riyals, according to data compiled by Bloomberg………………………………………..Full Article: Source

UAE banks remain profitable, despite weaker asset quality, slow loan growth and recent regulations

Posted on 21 January 2013 by Laxman  |  Email|Print

Outlook for Gulf lenders, backed by sovereign support, remains stable, credit rating agency Fitch said in a latest report. “GCC sovereigns are helping to stimulate their economies through government-sponsored infrastructure projects, taking advantage of their significant oil/gas revenues. Oil production is expected to be lower in 2013, but will, nevertheless, generate strong revenues for oil exporters, above budget requirements (except in Bahrain). Non-oil producers will, however, be at a clear disadvantage, in the absence of economic growth,” it says.
Fitch said it expects loan growth to increase in 2013, as confidence improves and infrastructure projects come on stream, stimulating the local economies, but much also depends on the global economy and regional unrest………………………………………..Full Article: Source

Sharjah Islamic Bank’s 2012 net profit at Dh272mln

Posted on 18 January 2013 by Laxman  |  Email|Print

Sharjah Islamic Bank said on Thursday said its net profit for 2012 stood at Dh272 million, compared to Dh251.1 million achieved a year ago with an increase of 8.3 per cent.
The bank’s balance sheet grew since December 2011 with total assets reaching Dh18.3 billion compared with Dh17.7 billion which is 3.3 per cent, the bank said in a statement………………………………………..Full Article: Source

Outstanding global sukuk reaches $240bln on back of $140bln sold in 2012

Posted on 17 January 2013 by Laxman  |  Email|Print

$140 billion worth of sukuk were issued in 2012 globally, according to Zawya’s 4Q12 Sukuk Quarterly Bulletin, a 64% increase from 2011’s $85 billion. Last year marked the best year on sukuk record, taking the global outstanding sukuk market to an unprecedented height of $240 billion as of end 2012.
Malaysia continues to be the largest sukuk market with $154 billion or 64% of the total outstanding sukuk market, followed by UAE and Saudi Arabia with around $20 billion, or approximately 9% and 8% respectively. Qatar and Indonesia follow, on 7% and 6% respectively. The list of countries of issuers with outstanding sukuk is now longer than ever, counting 22 countries with outstanding sukuk by end 2012, according to Zawya estimates………………………………………..Full Article: Source

Bank likely to achieve target of RM2 bln profit

Posted on 16 January 2013 by Laxman  |  Email|Print

Bank Rakyat’s target of RM2 billion profit before tax and zakat for fiscal year 2012 will likely be reached, according to its chairman Tan Sri Dato Sri Sabbaruddin Chik. According to him, until end of the third quarter last year, Bank Rakyat recorded a profit before tax and zakat of RM1.62 billion, an increase of 8.1 percent from RM1.5 billion for the same period the previous year.
He said based on Top 500 Islamic Financial Institutions Report (November 2011-November 2012), Bank Rakyat had assets value of RM77.46 billion until September 2012, making it the largest Islamic cooperative bank in Malaysia and Southeast Asia………………………………………..Full Article: Source

Global sukuk issuance hits $131bln in 2012

Posted on 14 January 2013 by Laxman  |  Email|Print

Total sukuk issuance in 2012 reached $131bn, an increase of 54 percent on the previous year, according to a new report by KFH-Research. The report said that Malaysia and the ringgit continued to dominate the market of sovereign sukuk issuance while other top countries in sukuk issuance were Saudi Arabia, UAE, and Indonesia.
KFH-Research said sukuk issuances continued “at decent levels” in December closing off a “tremendous year” for the Islamic capital markets………………………………………..Full Article: Source

The Islamic Development Bank Group’s financing reached USD 10 bln in 2012

Posted on 14 January 2013 by Laxman  |  Email|Print

Dr. Ahmad Mohamed Ali, President of the IDB Group , has expressed delight as the Group’s financing reached an all-time high of USD 9.8 billion in 1433H (2012) i.e. an increase of 18% over that of 1432H (2011), which stood at USD 8.3 billion.
He stated that the IDB Group increased its financing for its member countries significantly in a bid to satisfy their growing developmental needs and to arrest the adverse effects of recurrent financial crises on the economies of many IDB member countries. The IDB financing continued to grow annually even during and after the global financial crises. Thus, while the Group’s financing stood at USD 5.4 billion only in 1429H (2008), it had thereafter achieved an 81% increase over the five past years. (Press Release)

$4bln sukuk deal figures in global market award list

Posted on 11 January 2013 by Laxman  |  Email|Print

Qatar’s $4bn dual tranche sukuk has been recognised as the best Islamic finance deal of the country in 2012. Saudi Arabia has emerged as a major Sukuk market, rivalling Malaysia in issuance volume.
Saudi Arabia’s General Authority of Civil Aviation’s SR14bn sukuk has been adjudged as the best Saudi Arabian Deal of the Year. Jebel Ali Free Zone Dh4.4bn Syndicated Financing Facility and a $650m sukuk has been announced as the best Syndicated Deal. Abu Dhabi Islamic Bank’s $1bn Perpetual Tier 1 Trust Certificates has been recognised as the UAE Deal of the Year. Last year was most prolific for the Sukuk market. It saw steady activities in markets like the UAE and Indonesia, as well as the expansion of Islamic capital markets to new markets like Turkey…………………………………………Full Article: Source

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MENA bond issuance up 60pct on-quarter in 4Q12

Posted on 10 January 2013 by Laxman  |  Email|Print

The Middle East and North Africa (MENA) region witnessed 64 conventional bond issues worth USD 20 billion in the fourth quarter of 2012, an increase of 60% in value and 10% in the number of issues over the previous quarter.
This was despite a continuing fiscal crisis in the Eurozone as well as the political upheaval in some Arab nations. GCC, Levantine and North African countries, especially the corporate sector, all displayed their debt skills………………………………………..Full Article: Source

Dow Jones Islamic Market Titans 100 Index up 10.74pct in 2012

Posted on 09 January 2013 by Laxman  |  Email|Print

The Dow Jones Islamic Market Titans 100 Index finished 2012 up 10.74 per cent, according to data compiled by S&P Dow Jones Indices. The index, which rose 0.55 per cent in December, measures the performance of 100 of the world’s leading Shari’ah-compliant stocks.
In comparison, the Dow Jones Global Titans 50 Index, which measures the world’s 50 largest companies, posted a 2012 gain of 11.75 per cent; it registered a gain of 0.70 per cent in December. (Press Release)

Record trillion-ringgit bond and sukuk market in Malaysia

Posted on 07 January 2013 by Laxman  |  Email|Print

Although 2012 did not end in a big bang (no pun intended!), the bond and sukuk markets in Malaysia continued to grow at a breakneck speed. Conducive supply and demand dynamics, coupled with ample liquidity, helped lift the industry to new heights.
Despite the seemingly unsustainable growth rates recorded by the industry in the past year, it is still possible for the industry to prolong the high growth rate going forward. To survive and be resilient, adaptation is key to the industry. This can only happen if the transformation agenda for the industry is unrelenting………………………………………..Full Article: Source

Economist gives top marks to Malaysia in Islamic finance

Posted on 07 January 2013 by Laxman  |  Email|Print

The Economist has given top marks to Malaysia’s progressive leadership in Islamic finance and in particular its dominance in Islamic bonds or sukuk. In a report entitled “Banking on the Ummah: Malaysia Leads Charge in Islamic Finance”, the noted financial magazine cited Malaysia as being the first country to issue the world’s first sovereign sukuk in 2002.
The report said: “Of Malaysia’s claims to fame, leadership in financial services is not an obvious one. Yet in some ways the country is the world’s most important Islamic finance centre. “Just over a fifth of the country’s banking system, by assets, is Shariah-compliant; the average for Muslim countries is more like 12 per cent, and often a lot less………………………………………..Full Article: Source

BankIslami sees 50pct profit jump, to expand network

Posted on 04 January 2013 by Laxman  |  Email|Print

BankIslami will expand its network of outlets to about 200 in as many as 90 locations by the end of 2013, Chief Executive Officer Hasan Aziz Bilgrami said. The lender as of December last year operated 102 branches in 49 cities.
Pakistan’s central bank aims to almost double Islamic banking to 15 per cent of the industry’s assets by 2017 after exempting Shariah lenders from paying the minimum rate of return on deposits last month………………………………………..Full Article: Source

Ernst &Young: Global Islamic assets expected to reach US$1.8 trillion

Posted on 04 January 2013 by Laxman  |  Email|Print

Global Islamic banking assets held by commercial banks are set to cross US$1.8t in 2013, up from the US$1.3t of assets held in 2011, according to Ernst & Young’s World Islamic Banking Competitiveness Report 2013.The forecast is significantly higher than some of the earlier industry estimates.
Globally, the Islamic banking industry continues to record robust growth, with the top 20 Islamic banks registering a growth of 16% in the last three years and Saudi Arabia emerging as the largest market for Islamic assets………………………………………..Full Article: Source

Sukuk trail emerging-market debt on yield hunt

Posted on 03 January 2013 by Laxman  |  Email|Print

Islamic bonds trailed emerging-market debt for a second year as foreign funds chased higher yields, a trend that Union Investment Privatfonds says is likely to continue in 2013. Global Shariah-compliant notes gained 9.6 percent in 2012, according to the HSBC/Nasdaq Dubai US Dollar Sukuk Index, compared with 18.5 percent for developing-nation securities, JPMorgan Chase & Co.’s EMBI Global Composite Index shows.
The average yield on dollar sukuk dropped 1.18 percentage points to 2.81 percent, while that for emerging-market paper fell 1.58 percentage points to 4.50 percent, according to the two gauges………………………………………..Full Article: Source

Global sukuk looks for strong start after hitting $144bln record in 2012

Posted on 03 January 2013 by Laxman  |  Email|Print

Global sukuk issuance in 2012 exceeded $144bn, according to the IFIS Sukuk Database, with some $7.5bn of deals in December adding to the year’s record volume.
The final total was nearly 55% up on the $93bn issued in 2011, which was also the industry’s previous record year………………………………………..Full Article: Source

Sukuk seen topping $46 bln record on debuts

Posted on 02 January 2013 by Laxman  |  Email|Print

Global sukuk sales will challenge this year’s record of $46 billion in 2013 as countries such as Oman, Tunisia and Egypt tap the market for the first time, CIMB Group Holdings Bhd. and OCBC Al-Amin Bank Bhd. say.
Borrowing costs on Shariah-compliant debt have fallen 11.4 percentage points to 2.82 percent since the end of 2008 as central banks in Europe, the U.S. and Japan pumped funds into their economies to spur growth. Demand will be driven by the rise in Islamic banking assets, which may reach $1.8 trillion next year, compared with $1.3 trillion in 2011, led by Saudi Arabia and Malaysia, Ernst & Young forecast in a Dec. 10 report………………………………………..Full Article: Source

BankIslami seeks 50pct profit jump in 2013 after doubling branches

Posted on 21 December 2012 by Laxman  |  Email|Print

BankIslami Pakistan Ltd. (BIPL), the nation’s second-biggest Islamic bank, is targeting a 50 percent profit increase next year as it doubles its branches to meet demand for Shariah-compliant services.
BankIslami will expand its network of outlets to about 200 in as many as 90 locations by the end of 2013, Chief Executive Officer Hasan Aziz Bilgrami said in an interview. The lender as of December last year operated 102 branches in 49 cities………………………………………..Full Article: Source

Islamic insurance premiums to hit $12bln

Posted on 19 December 2012 by Laxman  |  Email|Print

The Islamic insurance industry has demonstrated substantial growth in recent years with gross written premiums (GWPs) estimated to reach $12 billion in 2012, said an expert. This growth will be coupled with a compound annual growth rate of up to 25 per cent, added Dr Metaib Al Rawqi, CEO of Saudi Arabia-based Weqaya Takaful Insurance and Reinsurance Company.
Al Rawqi was speaking ahead of the seventh International Takaful Summit (ITS) set to take place on February 18 and 19 at the InterContinental CityStars Cairo and expected to attract participation from over 25 countries………………………………………..Full Article: Source

Islamic banking to cross $1 trillion

Posted on 17 December 2012 by Laxman  |  Email|Print

A report prepared by global consultancy firm Ernst & Young has said that Islamic banking is all set to cross the $1trillion mark this year, up from $826 billion in 2010, adding that the time is just right to establish Islamic sovereign wealth funds to “champion the growing internalisation” of the industry.
The “World Islamic Banking Competitive Report 2011-12” was prepared by Ashar M Nazim, Islamic Financial Services Leader and Imtiaz Ibrahim, Senior Director, Islamic Financial Services at Ernst &Young and released at the World Islamic Banking Conference held in Bahrain from December 9 to 11, 2012………………………………………..Full Article: Source

Dubai Islamic Bank named ‘best Sukuk arranger’ and ‘best Private bank’

Posted on 13 December 2012 by Laxman  |  Email|Print

Dubai Islamic Bank (DIB) announced that it has been named “Best Sukuk Arranger” and “Best Private Bank” at the 2012 Islamic Business & Finance Awards, a leading event for the global Islamic financial community. The awards were received by Dr. Adnan Chilwan, Deputy Chief Executive Officer, DIB and reflect the bank’s sustained focus on playing a vital role in the nation’s economy.
Speaking at the awards ceremony, Dr. Adnan Chilwan, said: “From handling the issuance of Islamic bonds for organisations that are integral to the UAE economy, to providing exclusive and unmatched private banking services for our high net-worth customers, we continue to innovate and set higher benchmarks for the Islamic finance sector. DIB has been a pioneer in Sukuk issuance and Islamic banking products and services, in general, and we are very pleased to receive these awards for continuing to provide the best Shariah-compliant alternatives to conventional banking services on the market today. We take pride in leading from the front, and look forward to continued success for years to come.” (Press Rlease)

Strong demand drives growth at Islamic Bank of Britain

Posted on 12 December 2012 by Laxman  |  Email|Print

Islamic Bank of Britain plc (IBB), the UK’s only wholly Shari’ah-compliant retail bank, reported a 63 per cent increase in home financing and a 43 per cent increase in long-term savings deposits for the first three quarters of 2012.
Growth and demand, has been driven through the launch and development of new savings products, the IBB Home Purchase Plan and Buy to Let Purchase Plans, supported by effective sales and marketing strategies………………………………………..Full Article: Source

Global Shariah banking to hit $1.8 trillion by 2013

Posted on 12 December 2012 by Laxman  |  Email|Print

Financial instruments — cash, bearer bonds, etc. — in line with Islamic law or Shariah are predicted to hit $1.8 trillion (U.S.) globally by 2013, up 38.5 percent year on year, according to American corporate auditors Ernst & Young’s World Islamic Banking Competitiveness Report 2013 released Monday. But some wonder if this growth will help radical Islamist groups.
According to the report, the top 20 Islamic banks have registered an annual growth of 16 percent over the last 3 years………………………………………..Full Article: Source

Islamic banking assets to cross $1.8 trillion

Posted on 11 December 2012 by Laxman  |  Email|Print

Global Islamic banking assets held by commercial banks are set to cross $1.8 trillion in 2013, up from the $1.3 trillion of assets held in 2011 according to Ernst & Young’s World Islamic Banking Competitiveness Report 2013. This forecast is significantly higher than some of the earlier industry estimates.
Globally, the Islamic banking industry continues to record robust growth, with the top 20 Islamic banks registering a growth of 16 percent in the last three years and Saudi Arabia emerging as the largest market for Islamic assets. Top 20 Islamic banks hold over 50 percent of global Islamic banking assets……………………………………….Full Article: Source

Global sukuk issuances hit $121bln in 2012

Posted on 11 December 2012 by Laxman  |  Email|Print

The global sukuk market is expected to grow 141.32 per cent to reach $292 billion (Dh1.07 trillion) in issuances by 2016, up from $121 billion (Dh444 billion) in 2012, according to a latest report by Thomson Reuters.
The value of global aggregate sukuk for the period January 1996 to September 2012 is $396.4 billion, attributed to 2,790 issues. “More than 60 per cent of this total value comes from sukuk issued between 2010 and 2012, when 1,486 sukuk were issued to the tune of $248.5 billion,” the report says………………………………………..Full Article: Source

Qatar issued $25bln sukuk this year

Posted on 11 December 2012 by Laxman  |  Email|Print

Qatar has issued Islamic bonds (sukuks) worth a staggering $25bn this year, with more than 50 percent of the subscribers representing conventional institutions — a development that indicates increasing investor confidence in Shariah-compliant investment avenues worldwide, a conference on Islamic banking and finance was told here yesterday.
Sheikh Mohamed bin Hamad bin Jassim Al Thani, Chairman of Barwa Bank, said while the world is still fighting economic downturn Islamic banking and financing activities have been witnessing growth………………………………………..Full Article: Source

Islamic finance grows 50 pct faster than overall banking sector in key markets

Posted on 11 December 2012 by Laxman  |  Email|Print

The 2012/13 edition of the World Islamic Banking Competitiveness Report 2011/12 was launched at a specially convened session at the World Islamic Banking Conference in Bahrain. Developed in collaboration with Ernst & Young, the report entitled Growing Beyond: DNA of a Successful Transformation, was presented by Ashar Nazim, Partner, Head of Islamic Banking Excellence Center, Ernst and Young and Shoaib Qureshi, Senior Manager Islamic Financial Services MENA, Ernst and Young.
The report notes that, “Islamic banking growth outlook continues to be positive, growing 50 per cent faster than overall banking sector in several core markets with the Islamic banking assets with commercial banks globally grew to $1.3 trillion in 2011, suggesting an average annual growth of 19 per cent over past four years………………………………………..Full Article: Source

Kuwait Finance House set to return to black

Posted on 07 December 2012 by Laxman  |  Email|Print

Kuwait Finance House (Malaysia) Bhd (KFH), the first foreign Islamic bank to set up operations in Malaysia, is on track to return to the black for the full year, having registered three straight profitable quarters.
Chief executive officer Datuk Jamelah Jamaluddin said the group looks set to meet its target of a pre-tax profit of at least RM80 million for the full year, after three years of losses. “We just got our third quarter results approved yesterday and we are still in the black,” she said, without revealing details of the results………………………………………..Full Article: Source

KFH expects gold sales under gold savings account portfolio to touch three tonnes

Posted on 07 December 2012 by Laxman  |  Email|Print

Kuwait Finance House (M) Bhd (KFH Malaysia) aims to expand its gold savings account portfolio with sales to touch three tonnes of gold next year.
Its head of retail and consumer banking, Attar Salleh, said currently, the Islamic bank has slightly less than two tonnes of gold, accumulated from savings in KFH Malaysia’s products — KFH Gold Account-i and KFH Junior Gold Account………………………………………..Full Article: Source

Jordan’s Islamic sector continues to expand

Posted on 06 December 2012 by Laxman  |  Email|Print

Jordan’s Islamic banking assets has grown at an annual rate of 13% and now accounts for 5% of the country’s total banking assets, though Islamic insurers have been more sluggish in their performance, according to a recent KFH-Research report on the Kingdom’s Islamic finance sector.
The report said that Islamic banks have outperformed conventional banks in the growth of deposits and financing, reflecting a strong demand for Islamic transactions. On the contrary, the report noted that takaful companies haven’t been performing as well, but things are expected to improve after recently receiving government backing for the growth of takaful in Jordan………………………………………..Full Article: Source

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Global Islamic banking market to exceed $2.6 trillion by 2017

Posted on 06 December 2012 by Laxman  |  Email|Print

It has been reported that the UHNW Islamic Banking Clients: A Growing Community, the report examines the current state of UHNW Islamic banking client population–complete with combined net worth– and provides a growth forecast of Islamic banking in traditional and non-traditional markets.
The report also gives an inside look into the profile of an average UHNW Islamic banking client in Southeast Asia and the Middle East and provides an outlook for professionals and Islamic banking institutions………………………………………..Full Article: Source

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Islamic finance to surpass trillion-dollar mark in 2012: Tharman

Posted on 05 December 2012 by Laxman  |  Email|Print

Islamic finance is poised to expand over the next 10 to 15 years after surpassing the trillion-dollar mark in 2012, said Minister for Finance Tharman Shanmugaratnam at the World Islamic Economic Forum in Johor Bahru, Malaysia.
Mr Tharman, who is also Singapore’s Deputy Prime Minister, said that he was optimistic about the potential for the sector after it chalked up growth of about 19 per cent a year since 2006. This has lifted total Shariah-compliant assets to nearly US$1.3 trillion in 2012………………………………………..Full Article: Source

NBAD sukuk income fund delivers1.76pct dividend

Posted on 05 December 2012 by Laxman  |  Email|Print

The National Bank of Abu Dhabi (NBAD), the Number One Bank in the UAE, declares that the NBAD Sukuk Income Fund has returned 4.78% since inception and will distribute 1.76% dividend payment toinvestors.
This is NBAD Sukuk Income Fund’s first payout since it was launched six months ago and all registered holders of the Fund on November 28, 2012 are eligible for the dividend distribution. The distribution will equal 1.76% of the Fund’s net asset value (NAV) as of November 29, 2012 (1.84% based on the initial NAV of US$5) and equals to a total return of 4.78% since its inception……………………………………….Full Article: Source

Indonesia: Sharia banks may grow in 2013

Posted on 05 December 2012 by Laxman  |  Email|Print

The growth of Islamic (sharia) banking industry in 2013 is predicted to be higher than this year, according to bankers. To encourage the industry growth, sharia banking will also get some leeway in multiple licenses.
Nasirwan, Deputy Director/ Head of Islamic Banking Division of Research Department at Bank Indonesia, said the outlook for Islamic banking industry next year will be better than this year. In the period of January to the third week of November 2012, the financing of Islamic banking industry grew by 35 percent to Rp 138 trillion………………………………………..Full Article: Source

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