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Family Takaful set to reach $4.3bln

Posted on 13 June 2012 by Laxman  |  Email|Print

The global Family Takaful gross contributions in 2012 are estimated to be $1.7 billion, accounting for 20% of the total global Takaful gross written premiums and the Family Takaful market is set to reach $4.3billion in the next five years, according to an expert.
“The tremendous growth in the family Takaful segment, especially in Malaysia, outpaces that witnessed by both general Takaful and the conventional life insurance market. Between 2007 and 2011, net contribution for Family Takaful increased at a compounded annual growth rate of 20%, outpacing general Takaful business………………………………………..Full Article: Source

Malaysia’s family takaful market to hit RM7.2bln in 2-3 years

Posted on 12 June 2012 by Laxman  |  Email|Print

Malaysia’s family takaful market is poised to grow to some RM7.2bil in two to three years from RM4.2bil currently, given the low insurance penetration rates among the general populace, including the Muslim community, according to Etiqa Insurance & Takaful.
Chief commercial officer Shahril Azuar Jimin said only 54% of the population had life insurance or family takaful policy, with takaful having a penetration rate of about 11%………………………………………..Full Article: Source

$214bn sukuk industry posting growth

Posted on 11 June 2012 by Laxman  |  Email|Print

The $214 billion global sukuk industry is witnessing unprecedented growth, complemented and triggered by diversification, said an industry expert. “Large pools of Muslim wealth and abundant liquidity have ensured that demand for sukuk exceeds supply,” remarked Adnan Halawi, Zawya fixed income team leader.
According to him, the Islamic finance’s safe haven, asset-backed nature had led to more investors globally opting for sukuk to diversify portfolios and meet financing and refinancing requirements………………………………………..Full Article: Source

Diversification fuels growth of USD214bln sukuk industry, says Zawya

Posted on 08 June 2012 by Laxman  |  Email|Print

The USD 214 billion global sukuk industry is witnessing unprecedented growth, complemented and triggered by diversification, Adnan Halawi, leader of the Fixed Income Team at business and financial intelligence company Zawya, said.
Data from Zawya Sukuk Monitor shows that South East Asia accounts for 70% of the market, topped by Malaysia, while the GCC accounts for 29% of the market with the momentous entry of Saudi Arabia in 2011. While other countries are expected to join the club of issuers, Halawi forecast 2012 issuance of sukuk would be at least as good as last year’s USD 85 billion, and in the best scenario to exceed USD 125 billion………………………………………..Full Article: Source

ME private banking sector to grow to $6.1tn by 2016: BCG

Posted on 08 June 2012 by Laxman  |  Email|Print

The private banking sector in the Middle East and Africa may grow 6.6 percent a year to reach $6.1 trillion in value in 2016 as the gross domestic product of oil-rich countries in the region continues to expand, a study from Boston Consulting Group, BCG, shows.
The consultancy firm’s forecasts are higher than the region’s actual performance in 2011, when the Middle East’s market for the ultrarich slowed to 4.7 percent to reach $4.5 trillion, largely due to the political upheavals………………………………………..Full Article: Source

Component changes made to Dow Jones Islamic market indexes

Posted on 08 June 2012 by Laxman  |  Email|Print

Dow Jones Indexes, a leading global index provider, today announced the results of the regular annual review of the Dow Jones Islamic Market Titans 100 Index and its three subindexes, Dow Jones Islamic Market U.S. Titans 50 Index, Dow Jones Islamic Market Asia/Pacific Titans 25 Index and Dow Jones Islamic Market Europe Titans 25 Index as well as the Dow Jones Islamic Market Malaysia Titans 25 Index. All changes will be effective after the close of trading on Friday, June 15, 2012.
In the Dow Jones Islamic Market Titans 100 Index and subindex Dow Jones Islamic Market U.S. Titans 50 Index, Baker Hughes Inc., Corning Inc. and Marathon Oil Corp. will be replaced by eBay Inc., Express Scripts Holding Co. and Nike Inc. Cl B. (Press Release)

Oman Islamic banking

Posted on 06 June 2012 by Laxman  |  Email|Print

MSM Director General said that the operation of Islamic banks in the Sultanate will create some sort of competition between conventional banks in customer service, which will be reflected positively on improving service delivery, reduce the cost and increase the sources of financing that are ultimately in the service of national economy.
He explained that the birth of Islamic banking and their trading tools will be reflected positively on the performance of the Muscat Securities Market, improve its liquidity and trading volumes, showing that MSM will help Islamic banks to obtain the necessary funding sources to finance its activities through putting into circulation Islamic finance tools, such as Islamic bonds and certificates of deposit and other tools that will be included in MSM………………………………………..Full Article: Source

The growth of Islamic banking and how it changes the global

Posted on 04 June 2012 by Laxman  |  Email|Print

Islamic Banks are increasing in developing countries and as well as developed countries all over the world. Recently, more than 1100 institutions provide a service of Islamic banking in the worldwide and In future the number of superior banks such as HSBC, Standard Charted and Deutscheare are also provide a services of Islamic banking.
The globally aim of Islamic Banking is to offer an option of Islamic banking which is according to Shariah………………………………………..Full Article: Source

The importance of being Islamic

Posted on 31 May 2012 by Laxman  |  Email|Print

If VTB manages, on its third attempt, to issue a sukuk then the Russian bank will have achieved for conventional issuers what Goldman Sachs couldn’t and Crédit Agricole didn’t dare. Demonstrating that such business is possible would do a big favour for the Islamic finance market — and the Russians themselves.
Goldman Sach’s difficulties in accessing the sukuk market threatened to be a big setback for the global Islamic finance market’s cause. But a VTB success could revive interest among other potential non-Islamic borrowers — providing it goes about the task in the right way………………………………………..Full Article: Source

University launches Islamic finance research unit

Posted on 30 May 2012 by Laxman  |  Email|Print

A North West university is launching a research centre into Islamic finance.Launched at the University of Bolton , the Centre for Islamic Finance will begin with a lecture from Dr Ahmed Mohammad Ali, president of the Islamic Development Bank - a leading Saudi Arabian financial institution.
Dr Ali will address business leaders from across the region including lawyers, bank officials and commercial partners at the event at the university’s Senate House……………………………………….Full Article: Source

Saudi banks face risk from asset liability mismatch, Alinma says

Posted on 24 May 2012 by Laxman  |  Email|Print

Saudi Arabia’s banks face the biggest risk from a maturity mismatch between assets and liabilities and need to find “creative” ways to bridge the gap, the chief executive officer of Alinma Bank (ALINMA) said.
The mismatch needs to be monitored and can be bridged by issuing long-dated securities like Islamic bonds, Abdulmohsen Al Fares, told reporters at a conference in Riyadh today. Some foreign banks cut lending in Saudi Arabia after the debt crisis in Europe which is creating “opportunities for local banks as well as for others like Asian banks,” he said………………………………………..Full Article: Source

KPMG survey highlights barriers to Islamic finance growth

Posted on 22 May 2012 by Laxman  |  Email|Print

A number of barriers remain to the expansion of the Islamic finance industry, including a lack of qualified Islamic bankers, weaknesses in financial reporting and transparency, and the issue of regulatory capital, according to a KPMG survey conducted by the Economic Intelligence Unit (EIU).
The EIU conducted interviews with a number of leading figures on behalf of KPMG, and the report entitled “Growth and Diversification in Islamic Finance” sought their views on the current and future development of Islamic finance. Included in the survey are case studies on HSBC Amanah and Unicorn Investment Bank which detail their experiences in this area………………………………………..Full Article: Source

Islamic finance industry to probe growth chances

Posted on 21 May 2012 by Laxman  |  Email|Print

As the Islamic finance industry continues to be one of the fastest growing components of the global financial system, with an estimated growth rate of 15 per cent to 20pc, international markets are witnessing a growing demand for Islamic financial products and services - even beyond the traditional markets of South East Asia and the Middle East.
The Islamic funds and investments industry has seen steady growth over the past decade due to the growing global demand for Sharia-compliant financial products and services and a significant increase in the number of institutions structuring Islamic investment products. According to Ernst and Young the Islamic funds industry grew to $58 billion, achieving a growth of 7.6pc in 2010………………………………………..Full Article: Source

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Qatar sukuk sale driven by yields, economic growth

Posted on 15 May 2012 by Laxman  |  Email|Print

Qatar and Dubai Islamic Bank are planning to tap the Islamic bond market as a scarcity of Shariah-compliant securities and economic growth in the oil-rich region keep benchmark yields near eight-month lows.
Borrowers in the Gulf plan to sell as much as $6bn of dollar-denominated sukuk, which pay asset returns instead of interest, in the next month, data compiled by Bloomberg show. Sales of the debt are already off to a record start of $9.7bn………………………………………..Full Article: Source

Islamic economics growing in strength: NCB CEO Abdulkareem Alnasr

Posted on 14 May 2012 by Laxman  |  Email|Print

With an estimated $1.2 trillion in assets in 2012, Islamic banks have now developed in size and capability to such an extent that they can participate in financing major infrastructure projects either through direct financing or through facilitating the issuance of sukuk.
“Today, countries all over the world are turning to Islamic capital markets for financing, and most major international financial institutions are active in Islamic banking,” says Abdulkareem A. Abu Alnasr, chief executive officer of the National Commercial Bank (NCB) . He added, experts estimate that the sukuk market will grow 66 percent in 2012 to over $44 billion compared to $26.5 billion in 2011………………………………………..Full Article: Source

Businesses bullish on the prospects for Shariah-compliant products – Economist Intelligence Unit

Posted on 14 May 2012 by Laxman  |  Email|Print

A global survey of C-level and senior executives shows that demand for Shari’ah-orientated products and services is strong, and expected to grow. Among the reasons: expanding Muslim populations, rising purchasing power, shifting consumption patterns, and a broader range of products and services on offer.
The range of Shari’ha-orientated products and services is broadening, from food and Islamic finance products to pharmaceuticals, fashion and tourism, among others. The Economist Intelligence Unit carried out 13 in-depth interviews with executives of companies from the Shari’ah industry to produce the report, The Shari’ah-Conscious Consumer: Driving Demand, commissioned by Kuwait Finance House………………………………………..Full Article: Source

IMF concerned about Kuwait’s finances

Posted on 14 May 2012 by Laxman  |  Email|Print

Kuwait’s recent wage hikes have raised concerns about the sustainability of its public finances, its central bank governor told the state news agency Kuna, citing a preliminary report from the International Monetary Fund (IMF).
The IMF said Kuwait’s fiscal stimulus had helped non-oil sectors to recover from the global financial crisis, Governor Mohammad al-Hashel was quoted as saying by Kuna………………………………………..Full Article: Source

Indonesia: Islamic finance grows more than 40 pct a year

Posted on 09 May 2012 by Laxman  |  Email|Print

Halim AlamsyahIndonesia’s Islamic banking sector has been growing 40.2 per cent annually over the last five years, outpacing growth in conventional of 16.7 per cent a year over the same period. Deputy Governor of Bank Indonesia, the country’s central bank, Halim Alamsyah forecast that Shari’ah-compliant banking could account for 15-20 per cent of Indonesia’s banking industry within 10 years, from just over four per cent currently.
“We are confident Syariah (Shari’ah) finance will stimulate economic growth to a higher level and enhance the stability of the financial system,” he said……………………………………….Full Article: Source

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Islamic microfinance: How is it different?

Posted on 09 May 2012 by Laxman  |  Email|Print

Islamic banking was created as a separate path of financing in order to comply with prohibitions stipulated by Islamic law. Also referred to as Sharia law, Islamic law can be considered God’s law as interpreted by Muslims.
Islamic scholars called Muftis in the Sunni tradition and Mullahs in the Shia tradition are charged with interpreting this law. The central texts of Sharia law are the holy book of the Qur’an, and the examples set forth by Muhammad and his early followers are documented in a collection of texts called the Hadith………………………………………..Full Article: Source

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A.T. Kearney analysis suggests it’s time for Islamic banks to tackle slowing growth rates and eroding profitability

Posted on 03 May 2012 by Laxman  |  Email|Print

Traditionally, Islamic banks have outperformed their conventional peers in most markets. However, a closer look suggests the market dynamics are changing, demonstrating a new trend. Two key indicators are cause for reflection: slowing growth rates and eroding profitability, according to A.T. Kearney, a global management consultancy.
Declining growth rates are occurring in key geographies including KSA, Bahrain and the UAE, where growth rates have dropped to between 3% and 8% from double-digit figures. In parallel cost income ratios are increasing in most markets, putting pressure on profitability………………………………………..Full Article: Source

Islamic banks need to tackle slowing growth rates, says A.T. Kearney

Posted on 02 May 2012 by Laxman  |  Email|Print

Changing market dynamics are demonstrating a new trend, with two key indicators giving cause for reflection: slowing growth rates and eroding profitability, according to A.T. Kearney.
Declining growth rates are occurring in key geographies including KSA, Bahrain and the UAE, where growth rates have dropped to between three and eight per cent from double-digit figures. In parallel cost income ratios are increasing in most markets, putting pressure on profitability………………………………………..Full Article: Source

Global sukuk market to hit record US$125bln in 2012‎

Posted on 26 April 2012 by Laxman  |  Email|Print

The global sukuk market is expected to set a new record of close to US$125 billion this year, with Malaysia to remain the dominant market despite the anticipated issuance rise in the Gulf Cooperation Council (GCC) countries.

Prof Dr Malik Muhammad M. al Awan, Sharia Adviser, Hong Leong Islamic Bank and Hong Leong MSIG Takaful Bhd, said total global sukuk issuance in the first quarter this year amounted to US$43 billion, of which Malaysia’s sukuk issuance was US$30 billion………………………………………..Full Article: Source

Islamic banking grows 10 to 15pct annually

Posted on 23 April 2012 by Laxman  |  Email|Print

Islamic banking and finance, with a total asset of $1.4 trillion and more than 1,000 institutions operating in many countries worldwide is all set for a big take off, says Professor Khurshid Ahmad, chairman of the Islamic Foundation UK and the Institute of Policy Studies in Pakistan and author of several books on the topic.
Speaking to Arab News after giving a lecture on “Global economic crisis and the role of Islamic Economics” at the Islamic Development Bank headquarters here, Ahmad said Islamic banking and finance makes an annual growth of 10 to 15 percent when conventional banks make less than one percent………………………………………..Full Article: Source

Mideast 2012 bond issuance may hit $40 bln -StanChart

Posted on 20 April 2012 by Laxman  |  Email|Print

Bond issuance out of the Middle East could rise to $40 billion in 2012, more than 50% above last year’s levels, fuelled by the refinancing needs of local companies and the funding requirements of large new infrastructure projects, according to an executive of Standard Chartered PLC.
And issuers of Islamic bonds, or sukuk, have been able to tap in to a plentiful pool of liquidity within the Middle East region. About half of the new issues from the Middle East this year to be sukuk, in line with the proportion of Islamic bonds during the first quarter of 2012………………………………………..Full Article: Source

Takaful premium rose 19 pct to $8.3bln led by GCC countries

Posted on 19 April 2012 by Laxman  |  Email|Print

The global Takaful contributions grew by 19 per cent to $8.3 billion in 2010 and of these, the Gulf Cooperation Council (GCC) contributed $5.68 billion and South East Asia contributions were $2 billion, according to the 5th edition of Ernst & Young’s World Takaful Report 2012 report.
In 2010, growth in the GCC slowed to 16 per cent, from a compounded annual growth rate (CAGR) of 41 per cent in 2005-2009, as the implementation of compulsory medical Takaful in Abu Dhabi and Saudi Arabia was completed earlier………………………………………..Full Article: Source

Takaful premium jumped 19pct in 2010 to $8.3 bln, E&Y says

Posted on 17 April 2012 by Laxman  |  Email|Print

Ashar NazimGlobal Islamic insurance contributions surged 19 percent in 2010 to $8.3 billion helped by Saudi Arabia, the world’s biggest oil exporter, which made up more than half the industry, an Ernst & Young report said.
The six-nation Gulf Cooperation Council, which also includes the United Arab Emirates, Qatar, Bahrain, Oman and Kuwait, made $5.68 billion of Islamic insurance or takaful contributions in 2010, and South East Asia $2 billion, according to the World Takaful Report 2012……………………………………….Full Article: Source

Fringe markets to drive Takaful gross contributions to $12bln

Posted on 17 April 2012 by Laxman  |  Email|Print

Global takaful contributions grew by 19% to $8.3bn in 2010, according to Ernst & Young’s World Takaful Report 2012. “With current growth trends, and the addition of new fringe markets such as Indonesia and Bangladesh, we expect gross contributions of $12bn by 2012,” said Ashar Nazim, MENA head of Islamic financial services at Ernst & Young.
Growth in the GCC slowed to 16% in 2010, from a compound annual growth rate of 41% in 2005-2009, as the implementation of compulsory medical takaful in Abu Dhabi and Saudi Arabia was completed earlier………………………………………..Full Article: Source

India: Market for Shariah grows surely and steadily

Posted on 16 April 2012 by Laxman  |  Email|Print

Globally, the $1.5 trillion market for Shariah-adherent products is expected to grow by around 20% annually. In India, 1,200 of the total 6,000 stocks are Shariah-compliant already. Over the last one year, Shariah-linked funds, which manage assets worth Rs139 crore, have outperformed the Sensex by a mile.
A cursory comparison of Islam-based investments and broad market performance (as symbolised by the Sensex gyrations) might suggest that Shariah-compliant funds have caught the fancy of Indian investors………………………………………..Full Article: Source

Global Takaful industry set to hit $25bln mark by 2015

Posted on 16 April 2012 by Laxman  |  Email|Print

The Sharia-compliant insurance industry has witnessed significant internationalisation in the last decade with the industry rapidly expanding its footprint beyond the traditional high-growth markets of the GCC and Malaysia, says David McLean, Chief Executive of the World Takaful Conference.
Though the overall outlook for the global Takaful industry remains positive, it is essential that the mounting challenges posed by increasing competition not only among Takaful operators but also from conventional players entering the Takaful market space, declining underwriting profits and investment portfolios need to be immediately tackled so that the industry can maintain its current growth levels and hit the projected $25 billion mark by 2015………………………………………..Full Article: Source

Glossary - Islamic finance definitions

Posted on 12 April 2012 by Laxman  |  Email|Print

Islamic finance, based on religious principles which avoid interest and pure monetary speculation, is growing rapidly, supported by large pools of sharia-compliant funds in the Gulf and the opening of North African markets in the wake of the Arab Spring.
Here is summary of commonly used terms and concepts: Amana: Deposit in trust; a widely applied term that refers to anything in the safekeeping of another………………………………………..Full Article: Source

Focus: Islamic finance

Posted on 11 April 2012 by Laxman  |  Email|Print

The global market for Islamic finance at the end of last year was worth around $1.3 trillion, according to the UK Islamic Finance Secretariat, part of the CityUK lobby group. The total value of sharia-compliant assets has grown by 150% since 2006.
Globally, banks hold over 90% of Islamic assets, and together with funds are big investors in sukuk, a type of bond. According to the latest quarterly report from Zawya, a business information firm, global sukuk issuance in the first quarter of this year was $43.3 billion, almost half the total for the whole of 2011………………………………………..Full Article: Source

Loss-sharing is not sine qua non for Islamic finance

Posted on 05 April 2012 by Laxman  |  Email|Print

There remains a misconception amongst the masses that Islamic finance is essentially a system that shares the profit or the loss. In fact this is not the reality. Islamic finance involves different modes, out of which a few are profit sharing and/or profit and loss sharing. There are many other modes, where the question of sharing profit or bearing loss does not arise.
Even these, however, are rich in their respective virtues. Each of the modes of Islamic finance has got its own distinct characteristics in respect of modus operandi and principles………………………………………..Full Article: Source

Core banking market worth $5.1 bln by end-2013

Posted on 05 April 2012 by Laxman  |  Email|Print

Celent has estimated the total core banking market size to be around $4.8 billion for the year 2011. The market is expected to grow to $5.1 billion by the end of 2013. Banks are increasingly looking toward modern solutions to overcome constraints in their existing environments.
Islamic banking is popular in the Middle East, Asia, and Africa and has seen high interest in the region. Temenos and Misys have the highest market share in this region, while Path Solutions, with their Islamic banking focus, also garners a noteworthy slice of the pie………………………………………..Full Article: Source

USD43bln Sukuk in 1Q12 could translate into USD120bln in 2012

Posted on 05 April 2012 by Laxman  |  Email|Print

Sukuk issuance in the first quarter of 2012 exceeded all expectations reaching a record USD 43 billion globally, according to data compiled by Zawya’s Quarterly Sukuk Bulletin for 1Q 2012. This is almost double the average amount of sukuk issued in any given quarter of the past year, and half the amount issued throughout 2011.
The best-case scenario suggests sukuk issuance could reach USD 126 billion this year and will be at least as good as last year’s USD 85 billion, according to Zawya’s global sukuk forecast………………………………………..Full Article: Source

Malaysia to account for 60pct of global sukuk issuances this year

Posted on 04 April 2012 by Laxman  |  Email|Print

Rafe Haneef The total global sukuk issuance for both government and corporate is estimated at US$44 billion this year, with Malaysia accounting for 60 per cent or close to US$26 billion.
Last year, the global sukuk issuance totalled US$26.5 billion. HSBC Amanah Malaysia Bhd’s Chief Executive Officer Rafe Haneef said sukuk issuance in Asia was expected to be the highest this year, led by Malaysia………………………………………..Full Article: Source

Tighter spreads to drive Sukuk issuance: HSBC

Posted on 04 April 2012 by Laxman  |  Email|Print

Issuance of Islamic bonds will be stimulated by a tightening of yields versus conventional bonds as banks chase a finite amount of quality sukuk instruments, HSBC’s Islamic arm Amanah said on Tuesday.
HSBC has previously forecast global sukuk volume of $44 billion in 2012, up from $26.5 billion last year. Malaysia is expected to continue to dominate issuance with about 60 percent of the total; Malaysian toll expressway company PLUS Berhad conducted a $10 billion sukuk issue in January………………………………………..Full Article: Source

Saudi domestic Sukuk first explained

Posted on 04 April 2012 by Laxman  |  Email|Print

The launch of Saudi Arabia’s first domestic programme shows that the country’s investors and regulator are growing more comfortable with the instrument, according to counsel on the deal.
Almarai’s landmark SAR2.3 billion ($613 million) programme was established on March 29, and included an inaugural issuance of SAR1 billion. The issue was privately placed with Saudi investors………………………………………..Full Article: Source

Islamic banking: its origin and its convenient features

Posted on 03 April 2012 by Laxman  |  Email|Print

Islamic banking originates from earlier times and its development can be considered to be a part of the process during the formation of Islam. The Islamic banking solutions that were applied then had tangencies with the currently offered products due to the Shariah laws and regularities being applied at its basis and all over its services.
Partnership was among the most widely strategies used in the older times specifically in these regions for many centuries which had to obey to the rules………………………………………..Full Article: Source

What makes Islamic banking so special? Islamic bank in UAE

Posted on 03 April 2012 by Laxman  |  Email|Print

Islamic bank in UAE is among the most developed systems which ensure a fast growing for the entire Islamic banking. Specifically the Islamic bank in Dubai has a well-defined and integral structure that involves strong products and specifically created services for the benefit of the existing line of customers, as well as for the potential ones.
Islamic banking is now a modern service and a more or less stable industry, even if the potential risk can not be predicted………………………………………..Full Article: Source

Pakistan: Islamic banking NPFs soar to Rs 16 bln

Posted on 30 March 2012 by Laxman  |  Email|Print

Non Performing Financing (NPFs) of Islamic Banking Industry reached level of some Rs 16 billion for the first time, up by 15 percent, end of calendar year 2011 mainly due to slow economic activities.
Sources told Business Recorder on Thursday that NPFs of Islamic Banking Industry (IBI) continued to grow during CY11 - the banking industry’s financial year - and registered an increase of 15.21 percent………………………………………..Full Article: Source

Global Islamic finance assets reached $1.3 trillion in 2011

Posted on 29 March 2012 by Laxman  |  Email|Print

Keith PhillipsA new report from TheCityUK’s UK Islamic Finance Secretariat (UKIFS) indicates that Islamic finance assets worldwide continued a long run of growth to reach an estimated $1.3 trillion in 2011, 150 per cent up over the previous five years.
Despite political unrest in some countries the industry has continued to expand, not only in its core markets of the Middle East but also in South East Asia and offshore jurisdictions such as Bermuda……………………………………….Full Article: Source

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Outlook for Shariah-compliant insurance in 2012

Posted on 28 March 2012 by Laxman  |  Email|Print

The takaful market is currently concentrated in Malaysia and the Middle East where it has been experiencing significant growth rates. Global gross takaful contributions grew by 29 percent in Southeast Asia in 2009, and by 31 percent in the Gulf Cooperation Council (GCC) whose ranks Oman has recently joined as the first takaful operator to start business this year.
Takaful has undergone a significant internationalization phase and managed to cross borders. Awareness and acceptance of takaful are also growing in regional markets such as Indonesia, Brunei, Turkey, India, and Pakistan. ……………………………………….Full Article: Source

Takaful insurance forecast to boom globally

Posted on 26 March 2012 by Laxman  |  Email|Print

Takaful insurance is forecast to post noticeable growth at the international level as part of overall development witnessed in sector of Islamic banking following eruption of the global debts crisis, according to an eminent Kuwaiti academic.
However, at the local level, this sector might “face a tsunami,” unless the 2005 bill, issued by the National Assembly, was effected, and current status of the takaful insurance sector was altered, warned Dr. Mahmoud Behbehani, professor of insurance and actuarial science at Kuwait University, in an interview with KUNA………………………………………..Full Article: Source

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Takaful troubles in Kuwait

Posted on 26 March 2012 by Laxman  |  Email|Print

Takaful in Kuwait could ‘face a tsunami’ unless proposed legislation put forward in 2005 is brought into effect, according to Dr. Mahmoud Behbehani, professor of insurance and actuarial science at Kuwait University.
Speaking to Kuwaiti national news agency KUNA, Dr. Behbehani noted that Takaful insurance is forecast to post noticeable growth at the international level but warned of potential difficulties in the domestic market-place in Kuwait………………………………………..Full Article: Source

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Malaysia: Commendable growth of Islamic finance

Posted on 22 March 2012 by Laxman  |  Email|Print

Malaysia made further progress as it Islamic financial system transitions to become an international Islamic financial centre, recording commendable growth despite the volatile international financial markets and uncertainties clouding the global economy.
Total assets in the Islamic banking sector increased by 23.8% to RM434.6bil to account for 22.4% of total banking system assets as at end-2011. The volume of Islamic foreign currency business conducted by international Islamic banks and international currency business units within licensed Islamic banks has also increased substantially over the years………………………………………..Full Article: Source

Islamic banking to grow 15-20 pct

Posted on 22 March 2012 by Laxman  |  Email|Print

The Islamic finance industry is becoming one of the fastest growing components of the global financial system, with experts projecting growth rates of between 15 per cent and 20 per cent per annum.
The World Islamic Banking Report noted that Islamic banking assets in the Mena region increased to $416 billion in 2010, representing a five-year compound annual growth rate of 20 per cent compared to less than nine per cent for conventional banks………………………………………..Full Article: Source

Islamic finance seen to grow 15-20pct per annum

Posted on 21 March 2012 by Laxman  |  Email|Print

The Islamic finance industry is becoming one of the fastest growing components of the global financial system, with experts projecting growth rates of between 15% to 20% per annum.
The Middle East region, which has played a pivotal role in the development of the Islamic banking and finance industry internationally, is witnessing a rapid expansion in the market share of its Islamic financial institutions with billions of dollars moving from the conventional banking system to the Shari’ah model………………………………………..Full Article: Source

Indonesia Islamic isurance asets rach $1 bln 2011

Posted on 21 March 2012 by Laxman  |  Email|Print

Indonesia’s Shariah-compliant insurance assets increased by 32 percent to 9.2 trillion rupiah ($1 billion) in 2011 from a year earlier, according to data from the Capital Market and Financial Supervisory Agency.
Islamic insurance, or takaful, has grown by 50 percent on average in the last five years, the agency said. Malaysian insurers Mayban Ageas and Syarikat Takaful Malaysia Bhd. plan to expand in Indonesia to take advantage of the growth rate, the companies told Bloomberg this month………………………………………..Full Article: Source

Mideast bond sales soar to record as turmoil fades

Posted on 14 March 2012 by Laxman  |  Email|Print

Middle East bond sales are off to a record start this year after political unrest that swept through some nations in 2011 subsided and as concern waned that Europe’s debt crisis would impinge on demand for regional debt.
Regional governments and companies raised $10.1bn in bonds in so far in 2012, the most for the same period since Bloomberg began tracking the data in 1999. A $4bn Islamic bond sale in Saudi Arabia, the biggest Arab economy, steered a 55% rise in sales from the year-ago period………………………………………..Full Article: Source

Saudi Arabia remains major mart for Islamic investors with 42.4pct share

Posted on 12 March 2012 by Laxman  |  Email|Print

Saudi Arabia still remains the key market for Islamic investors, representing 42.4 percent of the industry, Kuwait Finance House (KFH) Research showed.
Malaysia commands the second spot with over a quarter of the assets while the remaining 34 countries contribute the rest. In terms of average assets per fund, the US comes out the clear winner, having $516.9 million per fund while both Saudi Arabia and South Africa trail behind with only $102.6 million and $95.8 million, respectively………………………………………..Full Article: Source

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