Emaar listed a $500m sukuk, or Islamic bond, in June, followed by a $650m sukuk by Jafza in July. As more and more companies issue sukuk and bonds to raise debt or list on public exchanges to raise equity instead of turning to banks for financing, it helps develop the region’s capital markets scene.
The key to deepening this market, however, lies not just in having more companies issue bonds or go public. It is also about the development of a solid secondary market, where investors are actively buying and selling securities from each other — as opposed to dealing directly with the issuer………………………………………..Full Article: Source

Cairo-based Ridge Islamic Capital is seeking to buy a local brokerage as part of its expansion plan, so that it can offer a full range of sharia-compliant financial services in the country, a company official told Reuters.
“We want to start providing sharia-compliant brokerage services during the fourth quarter of 2012,” Ahmed Rizkallah, country manager of Ridge Islamic, told Reuters on Wednesday………………………………………..Full Article: Source

Barwa Bank, Qatar’s fastest growing Shari’ah compliant bank, has been appointed Co-Lead Manager for the Republic of Turkey’s debut Sukuk and, in the same week, has been ranked amongst the top ten for International, Global and MENA region Sukuk arrangers in the Bloomberg Islamic Finance league tables ‘2012 - ytd*’ Ranking as of 17 September 2012.
Barwa Bank has been chosen as a Co-Manager for Turkey’s first Sukuk transaction worth $1.5bn, following a succession of high profile arranger positions for the bank………………………………………..Full Article: Source

Stock-market participants welcomed the Philippine Stock Exchange’s (PSE) efforts to establish a list of Shariah-compliant equities to tap Muslim investors in the country and abroad but execution challenges, like zeroing in on which firms to include, can remain a key consideration, they said.
Still, the plan is regarded with much optimism as this would provide additional breadth and depth to PSE, which remains one of the region’s smallest exchanges despite impressive gains so far this year. The Shariah-compliant list could be ready by the first half of 2013, Bloomberg News reported recently, citing Leo Quinitio, PSE head of capital-markets development division………………………………………..Full Article: Source

The Initial Public Offering (IPO) for Alizz Islamic Bank is now open for subscription. The offer will close on 21 October 2012. The IPO is lead managed by bank muscat and has been fully underwritten by leading Omani financial institutions.
Announcing the launch of the IPO on behalf of Huriah Management LLC, Mr. Ahmed Alkhonji said, “We are very proud to be supporting the establishment of Islamic banking in Oman. The large unmet demand for Islamic banking means that alizz islamic bank is uniquely placed to become a market leader for banking products. We are delighted to have aabar, First Energy Bank and Tasameem as our partners and the bank will benefit immensely from their considerable international experience.”……………………………………….Full Article: Source

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The Philippine Stock Exchange (PSE) is hoping to tap into a potential market of more than 1.5 billion Muslims worldwide with an estimated $1.4 trillion in investible funds by offering shariah-compliant stocks, the bourse’s top executive said.
Shariah-compliant equities follow the Islamic law which does not allow investors to put money into firms that benefit from interest or the sale of goods such as alcohol, tobacco or firearms. They also steer clear of companies with large amounts of debt on their balance sheets and those whose business is related to gambling, meat and conventional financial services such as banking and insurance………………………………………..Full Article: Source

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The growing recognition of the increasing significance of the Islamic capital market, especially in view of rising cross-border transactions, has triggered the need for stronger oversight, greater transparency and more robust disclosure requirements, global standard-setters and senior regulators acknowledged.
The Islamic Financial Services Board (IFSB) and the International Organisation of Securities Commissions (IOSCO), two global standard-setters in their respective fields, collaborated with the Securities Commission Malaysia (SC) to organise a high-level roundtable in Kuala Lumpur, themed “Disclosure Requirements for Islamic Capital Market Products”………………………………………..Full Article: Source

Alizz islamic bank will launch its initial public offering (IPO) of 400,000,000 shares on Saturday 22 September 2012. alizz islamic bank is promoted by Huriah Company owned by HH Sayyid As’ad bin Tarik Al Said, aabar Investments which is 95 per cent owned by the International Petroleum Investment Company of Abu Dhabi, First Energy Oman, wholly owned subsidiary of First Energy Bank.
Bahrain and Tasameem Real Estate Company, an investment company headquartered in the UAE. The Promoters have a strong track record of global financial services investment including Islamic banking………………………………………..Full Article: Source

The market for Gulf-region companies wanting to sell and list shares is reviving, spurred by economic prospects and rejuvenated stock markets. Bankers say the likelihood of more sales in the coming months is increasing.
Middle Eastern and North African companies raised a total of $1.37 billion in the first six months via initial public offerings. That compares with $396.47 million in the first half of 2011, according to Ernst & Young…………………………………….Full Article: Source

The new Malaysian retail bonds and sukuk framework, which allows retail investors to directly invest in bonds and sukuk on Bursa Malaysia or over-the-counter via appointed banks, will provide another investment alternative to retail investors and promote a more robust financial services industry, said fund managers and economists.
Pacific Mutual Fund Bhd executive director and CEO Gary Gan said any alternative or new product that is part of the Securities Commission’s Capital Market Masterplan 2, including the recently launched private retirement scheme, is always deemed beneficial………………………………………..Full Article: Source

There are many observers watching closely to see how the Omani Islamic banking market will shape up. This week news surfaced that Alizz Islamic Bank, the second Islamic bank to be contemplated in Oman since the change in law that permitted Islamic banks to operate in the Sultanate, hopes to launch a domestic initial public offering (IPO) on the local Muscat Securities Market by next week.
Alizz Islamic Bank wishes to be the bank of choice for corporates, individuals and businesses in Oman. Oman’s Capital Market Authority has already given approval for the IPO through public subscription………………………………………..Full Article: Source

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The Middle East and North Africa witnessed an influx of initial public offerings and privatizations between 2005 and 2007 as most governments these as inevitable steps toward increased efficiency, more transparency, improved productivity, revenue growth and less corruption - an initiative that was more or less adopted by private companies as well.
According to Zawya’s IPO Monitor, 2007 set a record with USD 14.44 billion raised via 71 IPOs across the region. Since then, the region witnessed a drop in the value of deals, which could possibly be attributed to repeated global financial crises and geopolitical unrest, prompting many companies to shelve IPO plans………………………………………..Full Article: Source

The plans of two of Indonesia’s largest Islamic-based banks, Bank Syariah Mandiri (BSM) and Bank Muamalat, to hold an initial public offerings (IPO) have been dampened by Bank Indonesia (BI), the country’s banking regulator, which has suggested that the banks bide time before floating their shares on the bourse.
BI director for sharia banking, Edy Setiadi, says that there are still problems plaguing Islamic-based banks’ operations in Indonesia, such as their huge reliance on haj funds managed by the Religious Affairs Ministry, which is the reason the country’s sharia banking has seen lower-than-expected growth in recent months………………………………………..Full Article: Source

Al Izz Islamic Bank, the second sharia-compliant lender being formed in Oman, will launch an initial public share offer (IPO) for 40 percent of the bank later this month, Oman’s regulator said in a statement on Monday.
Al Izz is the second Islamic bank to seek a stock market listing in Oman since the sultanate reversed its position last year as the only country in the Gulf Arab region not to permit sharia-compliant banking………………………………………..Full Article: Source

For developing an Islamic capital market in line with best practices globally, the Securities and Exchange Commission of Pakistan (SECP) is contemplating the establishment of a shariah board, an official said. The board, comprising eminent Islamic scholars and market professionals, would ensure that all the products/ services offered under this umbrella are in conformity with the shariah principles.
“Also, efforts will be made for consolidation of existing Islamic institutions and development of innovative shariah- compliant institutions, products and services in order to deepen the capital market,” the official said………………………………………..Full Article: Source

Bank Mandiri, the country’s largest lender by assets, is considering an initial public offering next year for its Islamic unit, Bank Syariah Mandiri, a top executive has said. Sunarso, a commercial director of Bank Mandiri, said on Thursday that the preparations for the offering were under way and the IPO was likely for next year.
“The preparations for the share sale, still have to be completed first but I don’t think it will take too long,” he said. “We want the IPO to help strengthen the capital [of Bank Syariah Mandiri] .”……………………………………….Full Article: Source

If it can gain approval from the regulators in time, Al Izz Islamic Bank hopes to float its Initial Public Offering (IPO) by next month. Oman’s second Islamic finance institution is waiting for the final approval from the Sultanate’s Capital Market Authority, which it has received only ‘in principle’ as yet.
However, sources told that CMA approval can be obtained in as little as a day, and the issue can be opened after a week. However, the subscription period has to remain for 30 days………………………………………..Full Article: Source

The Stock Exchange officially launches the NSE Lotus Islamic Index (NSE LII) which consists of companies whose business practices are in conformity with the principles of Shari’ah. Sunday Trust looks at the necessity of the index.
In a bid to attract Sharia/ethical investors to Nigeria’s budding stock market, Islamic wealth manager Lotus Capital and the Nigerian Stock Exchange (NSE) on Monday launched a debut index of NSE-listed companies that comply with Islamic investment principles………………………………………..Full Article: Source

Al Izz Islamic Bank, the second sharia-compliant lender being formed in Oman, plans to float 40 percent of its shares in September, a bank official said on Thursday.
Oman awarded two Islamic banking licenses last year, to Al Izz and Bank Nizwa, reversing its position as the only Gulf Arab state without banks that offer solely Islamic products and services. “We are planning our IPO issue worth 40 million rials ($104 million) in September,” a senior bank official, who declined to be identified, told Reuters………………………………………..Full Article: Source

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Bahrain Bourse has announced the listing of a government leasing sukuk (Islamic bond) worth BD160 million ($424 million) which pays an annual fixed rate of return of 4.3 per cent.
The sukuk, issued by the Central Bank of Bahrain on behalf of the Government, has a face value of BD10,000. It is set to mature in five years on July 17, 2017. It is payable every six months on January 17 and July 17 of the issuance period………………………………………..Full Article: Source

Al izz islamic bank, the Sultanate’s second Islamic bank, currently under formation, plans to launch its initial public offering on the Muscat Securities Market by the end of September.
According to an official of a leading brokerage firm, the bank with a capitalisation of RO 100 million will float an IPO of RO 40 million, or 40 per cent of its share capital next month. bank muscat will be the lead manager to the issue, it is learnt………………………………………..Full Article: Source

Sri Lanka’s Innovest Investments has launched an “Islamic Shari’ah Compliant Investment Plan” which comprises of only Shari’ah compliant stocks traded on the Colombo Stock Exchange.
The company says, with this scheme in operation, investors who prefer to avoid interest or Riba can now limit their investments to shares from a basket of Shari’ah compliant companies………………………………………..Full Article: Source

Shariah Capital, an Islamic asset management firm based in the United States, is to delist from London’s Alternative Investment Market (Aim) after a seven-year string of losses.
The hedge fund manager, which operates in the Middle East and has reported annual losses every year since 2005, said in a market message it would seek a cancellation of the shares………………………………………..Full Article: Source

Bank Muscat, Oman’s largest lender by market value, saw its OMR96.7 million ($251.2 million) rights issue 127.5 per cent covered by investors, the bank said in a bourse filing on Monday. The capital raised will be used to fund credit growth and the lender’s upcoming venture into Islamic finance.
The lender received bids worth OMR123.3 million from 1,675 investors for the share sale, which took place between July 9-23 and was used to raise capital to fund credit growth and its upcoming venture into Islamic finance………………………………………..Full Article: Source

The Dow Jones Islamic Market Titans 100 Index finished July up 2.50 per cent, according to data compiled by S&P Dow Jones Indices. The index measures the performance of 100 of the world’s leading Shari’ah-compliant stocks.
The Dow Jones Global Titans 50 Index, which measures the world’s 50 largest companies, posted a July gain of 2.22 per cent. Regionally, the Dow Jones Islamic Market Asia/Pacific Titans 25 Index, which measures the performance of 25 of the leading Shari’ah-compliant stocks in the Asia/Pacific region, increased 2.37 per cent in July; the Dow Jones Asian Titans 50 Index increased 2.67 per cent………………………………………..Full Article: Source

Saudi Arabia has proved its potential in the capital markets issuance space in 2012, with a slew of high-profile sukuk issuances backed by the government.
The single largest sukuk issue ever originated from Saudi Arabia in January 2012, worth $4 billion, by the General Authority of Civil Aviation (GACA). The Kingdom’s sukuk market is now considered the third largest in the world after Malaysia and the UAE and is expected to continue to climb up the issuance ladder moving forward………………………………………..Full Article: Source

Nasdaq Dubai, the region’s international exchange, welcomed on Thursday listing of a
$500 million sukuk on its market by Emaar Properties, the Dubai-based global property developer.
The listing is the first by Emaar on Nasdaq Dubai and constitutes the second drawdown under the company’s recently updated $2 billion Trust Certificate Issuance Programme………………………………………..Full Article: Source

The Securities Commission (SC) has announced the members of its Shariah Advisory Council (SAC) who will serve for two years starting July 1. SAC is the central authority responsible for determining the syariah principles of the Islamic capital market in Malaysia.
The 11 SAC members are: Tun Abdul Hamid Mohamad, former Chief Justice of the Federal Court, Tan Sri Sheikh Ghazali Abdul Rahman, syariah legal advisor, Attorney-General’s Chambers……………………………………….Full Article: Source

About two in seven people on the planet are Muslim. At about 6.5 million people, Muslims account for about 2% of the U.S. population. Saied Hamedanchi believes they’re an underserved niche market in the investment industry.
As founder and CEO of Irvine, Calif.-based ShariahShares, Hamedanchi is developing ETFs that invest according to Shariah law or the moral codes of Islam. The $77 billion in Shariah mutual funds currently are merely a speck among the trillions invested in the market……………………………………….Full Article: Source

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Dubai Group, the second-largest shareholder in Bank Muscat, has sold its rights to buy into a share offering by the Omani lender at a significant discount.
Bank Muscat, Oman’s largest lender, offered new shares to existing holders at a 25-per cent discount to raise about $251 million to fund its credit growth and venture into Islamic finance. Dubai Group had the rights to buy an additional 33.387 million shares, valued at about 0.06 rials ($0.16)………………………………………..Full Article: Source

The Securities and Exchange Commission of Pakistan (SECP) allowed conventional insurance companies to offer takaful - the shariah-compliant version of insurance - products with the launch of Takaful Rules, 2012 on Friday.
Representatives of unconventional Takaful companies, however, boycotted the launch ceremony of the new rules in protest against the permission granted to conventional companies………………………………………..Full Article: Source

Jaiz Bank Plc of Nigeria, which provides Shariah-compliant banking services, said it plans to raise 8 billion naira ($49.7 million) to expand its operations.
“We are targeting between the end of July and early August to raise the capital,” Idris Isa, a spokesman for the Abuja- based bank, said today in a phone interview. The funds will be sought through private placement, he said………………………………………..Full Article: Source

Middle East equity capital markets issuance reached $4 billion during the second quarter of 2012, nearly four times the value seen during the previous quarter, Thomson Reuters said in its 2012 investment banking analysis for the Middle East region.
According to the report, Middle Eastern M&A activity reached $8.5 billion during the second quarter of 2012, an increase of 45 per cent on the previous quarter, and marking the strongest quarter since 1Q 2010………………………………………..Full Article: Source

BankMuscat, the flagship financial institution in the Sultanate, is all set to raise RO 96.7 million from a rights issue aimed at enhancing Tier 1 capital. The bank is offering 226.5 million shares at 0.427 baisa per share comprising a nominal value of 100 baisa, premium of 325 baisa and issue expense of 2 baisa per share.
The rights issue will be open from July 9 to 23, 2012 with the record date being July 2. Each existing shareholder as on the record date is entitled to subscribe to 1 new share for every 8 shares held by him/her………………………………………..Full Article: Source

Initial Public Offering (IPO) activity picked up in the Gulf Corporation Council (GCC) in Q2 2012 which raised over $1.1 billion, witnessing the strongest quarter-wise IPO performance in the last two years, PriceWaterhouseCoopers (PwC) said Sunday in its Capital Markets Watch GCC report.
PwC report found that a total of four IPOs raised $1.104 billion on the GCC stock exchanges during the quarter compared to three IPOs which raised $340 million in Q2 2011, a 69 percent increase in value. Average IPO offering value rose to $276 million in the quarter compared to $39 million in Q1 2012 and $113 million in Q2 2011………………………………………..Full Article: Source

The next phase of growth of the Islamic capital market would be characterised by greater internationalisation, which would see more product as well as service providers expanding beyond their home market.
The Securities Commission’s executive director of Islamic capital market Zainal Izlan Zainal Abidin said more investors would seek products or instruments with international exposure………………………………………..Full Article: Source

Bank Muscat, Oman’s largest bank by market value, is planning to raise 96.7 million rials ($251.17 million) from selling shares to existing holders, as the lender seeks to fund its credit growth and venture into Islamic finance.
Bank Muscat, in which Dubai Financial Group has a 14.7 percent stake, is offering 226.5 million shares at 0.427 rials per share as part of the issue, a document from the lender seen by Reuters showed………………………………………..Full Article: Source

Maybank Kim Eng Investment Research said much as it continues to view Bank Islam’s and Syarikat Takaful’s (RM6.12, Not Rated) prospects positively, the recent run-up in BIMB’s share price is cause to pause and take stock.
It said on Monday its sum-of-parts derived target price of RM3 for BIMB prices Bank Islam at a price-to-book value (PB/V) of 1.6 times (2012 returns on equity: 12.7%) and Syarikat Takaful at its current P/BV of 2.0 times, valuations which we believe are fair at this stage………………………………………..Full Article: Source

NASDAQ Dubai welcomed the listing of a $650 million Sukuk by Jebel Ali Free Zone ( JAFZ ) on its market. The listing confirms the exchange’s status as the largest in the Middle East for Islamic bonds, bringing the total nominal value of its listed Sukuk to $7.1 billion.
Jeff Singer, Chief Executive of NASDAQ Dubai, said: “As the international exchange serving the UAE and the region, NASDAQ Dubai is delighted to be chosen by JAFZ for its Sukuk listing. NASDAQ Dubai offers Sukuk issuers and their investors a well regulated, effective and internationally visible platform………………………………………..Full Article: Source

Malaysia’s securities commission is revising its guidelines for equities which qualify for Islamic investment, in a move that could increase the appeal of the country’s sharia-compliant funds industry to Gulf investors.
Under the previous standards, investment was banned or restricted in companies that were involved in industries deemed to be unethical, such as gambling, alcohol and tobacco………………………………………..Full Article: Source

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Forbes Middle East has conducted an in-depth study into the largest banks in the Arab stock markets. This study included detailed research into 19 countries within the MENA region; 12 of which made it on to our final lists.
Due to political instabilities or non-disclosure of annual financial reports for the full year ending Dec. 31, 2011, a number of countries were excluded from the rankings on this occasion. These countries include: Syria, Libya, Iraq, Mauritania, Yemen, Algeria, Sudan and Tunisia………………………………………..Full Article: Source

Malaysian Airline System Bhd’s (MAS) share price rose to a high of RM1.19 on Wednesday after it secured enough takers for its RM2.5bil 10-year perpetual sukuk and plans to unveil a new business plan next week.
At 10.57am, MAS shares were up four sen to RM1.16. There were 1.99 million shares done at prices ranging from RM1.14 to RM1.19………………………………………..Full Article: Source

Following the huge response to the initial public offering (IPO) of Bank Nizwa, the Muscat Securities Market (MSM) expects the launch of Islamic banking and the listing of banks and their products to add value to the bourse and boost activity in Oman’s capital market.
Speaking to Muscat Daily on the sidelines of the Oman Islamic Banking and Finance Conference on Tuesday, Ahmed Saleh al Marhoon, MSM director general, said a large segment of Omanis would prefer to deal with Sharia-compliant banks rather than conventional banks………………………………………..Full Article: Source

Barwa Bank, Qatar’s growing Shari’ah compliant banking service provider is offering a unique Shari’ah Compliant 3-year Capital Protected Notes linked to the Turkey and Indonesia equity markets.
The Turkey Indonesia Equity Capital Protected Note is an investment opportunity for investors seeking potentially higher returns with 100% capital protection. The growth is based on the performance of a selected basket of stocks in two high growth emerging markets: Indonesia and Turkey. (Press Release)

Sukuk or Islamic bonds enable organisations to raise capital in a Shariah compliant manner. The demand for sukuk was previously limited outside the GCC until few years ago and the year 2012 sees Oman as an emerging potential sukuk market among Thailand and the CIS countries.
Since the concept of “Sukuk” is a fairly new phenomenon in Oman, Mr. Hussain Al-Yafai, Director, Debt Capital Markets MENA, Standard Chartered Bank, will provide us an in-depth view on raising debt capital via Sukuk markets, at the Oman Islamic Banking and Finance Conference 2012 taking place from 5th-6th June 2012 at the Grand Hyatt. (Press Release)

Investment Management Group of Oman Arab Bank SAOC (OAB), Lead Issue Manager and Lead Underwriting Arranger for Bank Nizwa IPO, yesterday released the eagerly-awaited subscription figures for the Bank Nizwa IPO surpassing investment community guesses.
The initial compilation of figures of all four collecting banks show over 11.3 times subscription i.e over RO 681 million (subject to reconciliation) collected against an offer of RO 60 million through 37,084 applications………………………………………..Full Article: Source

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Omani lender Bank Nizwa, the sultanate’s first Islamic bank, attracted 681 million rials ($1.77 billion) of bids in its initial public offer of shares, 11 times the sum which it was raising, the lead manager for the IPO said on Saturday.
The bank will be listed on the Muscat Securities Market on June 12, Oman Arab Bank said. Bank Nizwa raised 60 million rials by selling 40 percent of its capital………………………………………..Full Article: Source

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Islamic banking only makes up one per cent of mainstream finance, but it takes up more than its fair share of newspaper column inches. Perhaps this shouldn’t be surprising since the industry has considerable growth potential: high oil prices and a post-Arab Spring resurgence of political Islam in North Africa will help swell balance sheets, and Islamic banks in the UK report increasing interest from non-Muslims in their services too.
But more importantly, at a time when the weaknesses of mainstream finance have never been more exposed, Islamic finance offers a thoughtful alternative. Islamic prohibitions on the charging of interest are not coincidental — both Christian and Jewish scriptures contain similar provisions — and the emphasis instead on profit-sharing structures is intended to offer a fairer system………………………………………..Full Article: Source

As the deadline for the close of the initial public offering of the new-float Bank Nizwa is nearing, analysts give a fair value rating to the issue. Islamic finance has become one of the fastest growing segments in the financial markets across the globe especially in regions like Asia, Africa and Europe as borrowers seek alternative avenues for financing.
In GCC, it has been growing at double-digit annual growth rates over the past decade. Today, Islamic banks in the region control a market share close to 15 per cent of the total assets of the banking sector and have become a part of mainstream financial intermediation………………………………………..Full Article: Source

Bank Islam Malaysia Bhd is still keen on buying a stake in a Islamic financial institution in Indonesia, but is awaiting further clarification on the country’s shareholding regulations for commercial banks.
BIMB Holdings Bhd group managing director and chief executive officer Johan Abdullah said no decision has been made on potential Indonesian acquisitions for now………………………………………..Full Article: Source

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