Opalesque Islamic Finance Briefing

BSF launches $750mln sukuk

Laxman — Thu, 17 May 2012 00:53:16 +0000

Banque Saudi Fransi (BSF), the lender part-owned by Credit Agricole, launched a $750 million five-year Islamic bond Tuesday at the tighter end of price guidance, which indicated strong investor demand for the issue.
Saudi Fransi, the Kingdom’s fifth largest bank by market capitalization, launched the sukuk at a spread of 185 basis points over midswaps, arranging banks said, at the lower end of the range indicated earlier in the day………………………………………..Full Article: Source

RBS to advise foreign clients on sukuk issuances

Laxman — Thu, 17 May 2012 00:52:58 +0000

The Royal Bank of Scotland Group plc (RBS) hopes to advise foreign clients to issue four to six ringgit-based sukuk over the next 12 months while it concentrates on building its wholesale banking business in Malaysia.
The clients will be from Europe and Central Asia, RBS officials said without giving specific details………………………………………..Full Article: Source

RBS to focus on debt capital markets

Laxman — Thu, 17 May 2012 00:52:48 +0000

The Royal Bank of Scotland (RBS) intends to focus on the debt capital markets, in particular sukuk, over the next 12 months, said head of corporate coverage in Malaysia, Ho Weng Yew.
“In our pipeline right now, we are looking at at least four to six potential issuances, spread out over nine to 12 months,” he said. He added that the potential issuance would be of sizeable amount, coming from Central Asian and European countries through financial institutions and conglomerates from different kinds of sectors………………………………………..Full Article: Source

IDB eyes $1bln sukuk for megabank project

Laxman — Thu, 17 May 2012 00:52:34 +0000

Islamic Development Bank (IDB) is seeking partners to bring investment in a Shariah-compliant megabank, as it plans to issue $1 billion worth of Islamic bonds or sukuk in June to fund the project, the bank’s president Ahmad Mohamed Ali said.
“IDB practice is usually a five-year issue in the amount range between $500 million and $1 billion, so in June it will be in this range, as usual,” Ali said. He said the Jeddah-based operation was currently in talks with the banks that will arrange the deal that would be global, indicating the sukuk would be 144a-compliant and, therefore, open to investors from the US………………………………………..Full Article: Source

Dana Gas eyes sukuk accord

Laxman — Thu, 17 May 2012 00:52:21 +0000

Dana Gas said it wanted to find a consensual deal to repay the remainder of a $1 billion sukuk maturing in October, and confirmed it had hired advisers to weigh up various options for the repayment.
The Abu-Dhabi-listed natural gas producer’s share price has been battered by concerns over how it will find the cash to repay the outstanding $920 million of the sukuk, issued in 2007, on time and in full. Its stock has dropped 40 per cent in the past year………………………………………..Full Article: Source

UAE’s first sukuk restructuring forecast

Laxman — Thu, 17 May 2012 00:52:09 +0000

Bond traders are betting that the United Arab Emirates may soon see the country’s first public restructuring of an Islamic bond.
The yield on the $920m sukuk from Dana Gas , the Sharjah-based energy company, has soared this week as the price sunk, highlighting investors’ concern over Dana ’s ability to repay the debt………………………………………..Full Article: Source

RAM reaffirms ratings for Menara ABS sukuks

Laxman — Thu, 17 May 2012 00:51:58 +0000

RAM Ratings has reaffirmed the respective AAA, AA2, A1, A2 and AAA ratings of Menara ABS Bhd’s Tranche A1, Tranche A2, Tranche A3, Tranche A4 (Tranche A Sukuk) and Tranche B Sukuk Ijarah.
The rating of Tranche B Sukuk carries a “stable” outlook while the outlook on ratings of Tranche A Sukuk has been revised to “negative” from “stable”………………………………………..Full Article: Source

Dubai Islamic Bank roadshows sukuk in sheltered market

Laxman — Thu, 17 May 2012 00:51:48 +0000

Dubai Islamic Bank has released roadshow dates for its sukuk, undeterred by worsening market conditions in the conventional bond space.
The meetings start in Kuala Lumpur tomorrow, moving to Singapore on Friday, Abu Dhabi on Sunday and finish in London on Monday. A dollar Reg S sukuk benchmark could follow………………………………………..Full Article: Source

Brunei: More graduates needed in local Islamic finance sector

Laxman — Thu, 17 May 2012 00:51:36 +0000

Brunei needs to encourage more Syariah graduates to enter the finance sector if it wants to become a legitimate player in the Islamic finance industry, said an expert.
Executive Director of Malaysia-based International Syariah Research Academy for Islamic Finance Dr Mohamad Akram Laldin said building human capacity is the key to developing Brunei’s niche in the market………………………………………..Full Article: Source

What the West can learn from Islamic banking

Laxman — Thu, 17 May 2012 00:50:45 +0000

Across the Middle East and South-East Asia, Islamic financial institutions hold aggregated assets estimated to be worth $50 billion. To some, this cash-rich sector represents a huge opportunity for growth and investment.
But perhaps, what Islamic banks can really offer is a set of guiding principles that can enhance financial stability, four years after the crisis………………………………………..Full Article: Source

Brunei: Islamic banks urged to be ‘entrepreneur-friendly’

Laxman — Thu, 17 May 2012 00:50:03 +0000

Islamic banks should be more “entrepreneur-friendly”, said His Royal Highness Prince Hj Al-Muhtadee Billah, the Crown Prince and Senior Minister at the Prime Minister’s Office, by offering a variety of Syariah-compliant financing methods that will help Muslim businesses become successful.
“Such efforts support His Majesty’s wishes to enhance the ‘Ease of Doing Business’ in the country,” he said……………………………………….Full Article: Source

Islamic banking stands tall amid global crisis

Laxman — Thu, 17 May 2012 00:49:32 +0000

His Royal Highness Prince Haji Al-Muhtadee Billah, the Crown Prince and Senior Minister at the Prime Minister’s Office in a sabda called the Islamic banking sector in the country to be more “entrepreneur-friendly” through the provision of various “Syariah-compliant” financing instruments.
The Crown Prince believed that this will provide more opportunities for Muslim entrepreneurs to be active in their respective entrepreneurial interests………………………………………..Full Article: Source

Pakistan: Islamic banking is a fast growing industry

Laxman — Thu, 17 May 2012 00:49:06 +0000

Islamic banking is a fast growing industry world over. Worldwide growth rate is more than 15 per cent while it is about 40 per cent in Pakistan. With every passing day, its penetration in every society is increasing, covering more and more areas.
The developments during the last ten years in the field have drawn attention of the people on individual level and in business and corporate sectors. But our ratio is low. Therefore, when we show it in figures it is fewer………………………………………..Full Article: Source

SBP role lauded for promoting Islamic banking

Laxman — Thu, 17 May 2012 00:48:53 +0000

The State Bank of Pakistan (SBP) is playing a major role in spreading the market of Islamic banking in Pakistan and we salute their efforts. The conventional banks are also exploring the avenues in the Islamic sector due to the promotion of parallel banking by the State Bank in 2002.
So unlike the concept, which was introduced in 1970s when the customers were forcefully being pushed towards Islamic banking, now the concept is effectively evolving when the customers have a free choice because more industry players are becoming visible………………………………………..Full Article: Source

Citi gives Usman Ahmed top investment banking job in the Philippines

Laxman — Thu, 17 May 2012 00:48:39 +0000

Citi has appointed Usman Ahmed as its new head of corporate and investment banking in the Philippines. He is replacing Kristine Braden who is leaving Asia to take on the role as global subsidiaries group head in Europe.
Ahmed will remain Asia-Pacific head of global Islamic banking alongside his new role as head of corporate and investment banking in the Philippines………………………………………..Full Article: Source

Standard & Poor’s rates Qatar Islamic Bank ”A-/A-2” with stable outlook

Laxman — Thu, 17 May 2012 00:48:23 +0000

In a move that reflects Qatar Islamic Bank’s (QIB) sound financial position and business strategy, Standard & Poor’s recently assigned its ”A-” long-term and ”A-2” short-term counterparty credit ratings to QIB with a stable outlook rating on the long-term.
S and P, which rates QIB for the first time, hailed the bank’s business position, its leading position in the fast-growing Qatari Islamic banking segment and its business model and management. S and P views QIB’s capital and earnings are “strong………………………………………..Full Article: Source

Dubai’s Ridge buys Egypt’s Rashad

Laxman — Thu, 17 May 2012 00:48:10 +0000

Dubai-based regional investment bank Ridge Capital has bought 100 per cent of Egyptian asset management firm El Rashad Holding, which is expanding its Islamic financing business, its financial adviser said on Tuesday.
Rashad manages two funds, one for Misr Iran Bank and the other for National Bank of Egypt, and last month launched a third in Bahrain that specialises in Islamic investments, Karim Amin of Sempra Capital, which acted as Ridge’s adviser on the deal, told Reuters………………………………………..Full Article: Source

Shariah ‘megabank plan’ seeks to raise $1bln capital

Laxman — Wed, 16 May 2012 00:10:12 +0000

The Islamic Development Bank is seeking partners to bring investment in a Shariah-compliant megabank to more than $1bn before the opening this year, allowing it to finance larger construction projects.
The financial institution, to be established with Riyadh-based Dallah Albaraka Group and the Qatari government, will issue securities that Islamic lenders can buy to manage excess funds, IDB president Ahmad Mohamed Ali said……………………………………….Full Article: Source

Dubai’s Ridge Capital buys Egypt asset firm Rashad

Laxman — Wed, 16 May 2012 00:09:52 +0000

Dubai-based regional investment bank Ridge Capital has bought 100 percent of Egyptian asset management firm El Rashad Holding, which is expanding its Islamic financing business, its financial adviser said on Tuesday.
Rashad manages two funds, one for Misr Iran Bank and the other for National Bank of Egypt, and last month launched a third in Bahrain that specialises in Islamic investments, Karim Amin of Sempra Capital, which acted as Ridge’s adviser on the deal, told Reuters………………………………………..Full Article: Source

Islamic Bank of Thailand sends out RFP for sukuk

Laxman — Wed, 16 May 2012 00:09:35 +0000

The Islamic Bank of Thailand has asked a group of banks to submit proposals for a baht-denominated sukuk by this Friday. However, the formal request for proposals (RFP) has come as a surprise because the deal has been in the works for the past few years and Malaysian bank CIMB has already been working on it.
“I’m not sure why they sent out an RFP. I’m not sure if CIMB has been formally appointed, but they’ve been working on it for a long time,” said one Bangkok-based banker………………………………………..Full Article: Source

Indonesia aims to auction Islamic bond

Laxman — Wed, 16 May 2012 00:09:20 +0000

The Indonesian finance minister plans to auction Islamic bond on May 22, as an effort to develop the market for the Islamic instrument, a statement from the ministry said here on Tuesday.
The sales with indicative target of one trillion rupiah (some 108.45 million U.S. dollar) that would be used to help plug the budget deficit this year………………………………………..Full Article: Source

DIB said to hold meetings from May 17 for possible sukuk

Laxman — Wed, 16 May 2012 00:09:08 +0000

Dubai Islamic Bank PJSC (DIB), the United Arab Emirates biggest bank complying with Islamic banking rules, will meet investors from May 17 for a possible benchmark-sized dollar sukuk sale, three people familiar with the details said.
The meetings will take place in Asia, the Middle East and Europe, they said, declining to be identified because the details are private. HSBC Holdings Plc (HSBA), National Bank of Abu Dhabi PJSC, Emirates NBD PJSC (EMIRATES), Deutsche Bank AG (DBK) and Dubai Islamic will help arrange the meetings, they said………………………………………..Full Article: Source

Dubai Islamic eyes benchmark sukuk

Laxman — Wed, 16 May 2012 00:08:55 +0000

Dubai Islamic Bank (DIB), the largest sharia-compliant lender in the emirate, is planning to issue a benchmark-sized, dollar-denominated Islamic bond, or sukuk, lead arranging banks said.
Roadshows for the bond sale will begin in Kuala Lumpur on Thursday and end in London on Monday, a document issued by the lead banks on Tuesday showed………………………………………..Full Article: Source

Dana Gas $1bln sukuk a source of angst

Laxman — Wed, 16 May 2012 00:08:43 +0000

The UAE company Dana Gas, whose share price has dropped sharply on doubt over its ability to meet debt obligations, has hinted it will seek to refinance its troublesome US$1bn (Dh3.67bn) sukuk.
The gas producer based in Sharjah released strong first-quarter results and used the occasion finally to address concerns over the bond, which matures at the end of October.“The Company is committed to finding a consensual solution that is equitable to all stakeholders,” Dana said………………………………………..Full Article: Source

UAE’s Dana Gas seeks consensual deal on sukuk

Laxman — Wed, 16 May 2012 00:08:31 +0000

Dana Gas Co said it wanted to find a consensual deal to repay the remainder of a $1 billion Islamic bond maturing in October, and confirmed it had hired advisers to weigh up various options for the repayment.
The Abu-Dhabi-listed natural gas producer’s share price has been battered by concerns over how it will find the cash to repay the outstanding $920 million of the sukuk, issued in 2007, on time and in full. Its stock has dropped 40 percent in the past year………………………………………..Full Article: Source

Banque Saudi Fransi prices $750 mln sukuk at par

Laxman — Wed, 16 May 2012 00:08:18 +0000

Banque Saudi Fransi, the lender part-owned by Credit Agricole, priced a $750 million five-year Islamic bond on Tuesday at par amid strong investor demand for the issue.
Saudi Fransi, the kingdom’s fifth largest bank by market capitalisation, launched and priced the sukuk at a spread of 185 basis points over midswaps, arranging banks said, at the lower end of the range indicated earlier in the day. It attracted orders worth $4 billion………………………………………..Full Article: Source

CBB Sukuk Al-Ijara oversubscribed by 175 pct

Laxman — Wed, 16 May 2012 00:08:09 +0000

The Central Bank of Bahrain (CBB) announces that the monthly issue of the short-term Islamic leasing bonds, Sukuk Al-Ijara, has been oversubscribed by 175 per cent.
Subscriptions worth BHD 35 million were received for the BHD 20 million issue, which carries a maturity of 182 days. The expected return on the issue, which begins on 17th May 2012 and matures on 15 November 2012, is 1.34 per cent………………………………………..Full Article: Source

RBS pledges commitment to Asia-Pacific

Laxman — Wed, 16 May 2012 00:07:57 +0000

Royal Bank of Scotland Group Plc (RBS) Malaysia country executive and head of international banking for Malaysia and Indonesia, Andrew M. Sill, said the British lender has in the pipeline “at least four to six” sizeable ringgit-denominated Islamic bond (sukuk) issuance by financial institutions and companies from Central Asia and Europe this year, of which “one or two could be announced relatively soon”.
Commenting of the size of the sukuk issues, he said they are not expected to surpass that of Hong Leong Bank’s US$300 million five-year corporate bond that RBS undertook last month………………………………………..Full Article: Source

Volatility in Europe sparks interest in Islamic bonds, says BLME

Laxman — Wed, 16 May 2012 00:07:44 +0000

The Eurozone crisis continues to worry investors, and a combination of factors contributing to greater volatility is sparking investor interest in the Middle East region and Islamic bonds in particular, says Nigel Dennison, head of markets and asset management at the Bank of London and The Middle East (BLME).
The BLME is an independent wholesale Sharia’a-compliant bank based in London. It received Financial Services Authority authorisation in July 2007 and is the largest Islamic bank in Europe………………………………………..Full Article: Source

Accord on Islamic banking signed in Malaysia

Laxman — Wed, 16 May 2012 00:07:32 +0000

Central banks from seven Muslim countries yesterday launched a regulatory body to oversee the booming Islamic investment market. The Islamic Financial Services Board (IFSB) was inaugurated here by founding members Malaysia, Saudi Arabia, Indonesia, Iran, Kuwait, Pakistan, Sudan and the Islamic Development Bank.
The establishment of the IFSB — an association of central banks, monetary authorities and other institutions responsible for supervising and regulating Islamic banking — was “in response to the growing significance of the Islamic financial services industry,” officials said………………………………………..Full Article: Source

Islamic banking stands tall amid global crisis

Laxman — Wed, 16 May 2012 00:07:18 +0000

Islamic finance sector facing key challenges

Laxman — Wed, 16 May 2012 00:07:05 +0000

Islamic finance industry is facing key growth constraints that need to be addressed, Central Bank of Bahrain (CBB) executive director of financial institutions supervision Abdul Rahman Al Baker claimed. “We are seeing continuing fragmentation in Islamic financial products,” he said.
“Unless products can be standardised, there will be less liquidity and documentation costs will remain higher than for conventional banks,” he said………………………………………..Full Article: Source

Islamic financial system proven to be more stable

Laxman — Wed, 16 May 2012 00:06:51 +0000

After almost a decade following the mid-1990 global financial crisis that had significant impact on the Asian economy, the world has now come to realise that Islamic financing is perhaps considered the most stable form of financing, especially in a time where governments are vulnerable to financial change.
In explaining this phenomenon that has “caused communities to distrust the conventional banking system”, the 1997 crisis, explained Universiti Islam Sultan Sharif Ali (UNISSA) Rector Dr Hj Serbini Hj Matahir……………………………………….Full Article: Source

Trend of resorting to un-Islamic financing a worry

Laxman — Wed, 16 May 2012 00:06:29 +0000

Though local financial needs can be met by Syariah compliant means, research conducted by Universiti Islam Sultan Sharif Ali (UNISSA) has indicated that Muslims still turn to un-Islamic financing to cater to their needs.
In an interview with the Bulletin on the sidelines of the International Conference on Islamic Finance 2012 and the 6th Regional Syariah Scholars’ Dialogue yesterday, Hajah Rose Abdullah, UNISSA Deputy Dean at the Faculty of Business and Management Sciences has described this financial phenomenon as the “biggest worry”………………………………………..Full Article: Source

Türkiye Finans in $350mln murabaha syndicated deal

Laxman — Wed, 16 May 2012 00:06:16 +0000

Türkiye Finans, Turkey’s leading participation bank, has signed the largest murabaha syndicated deal of the participation banking with a sum of $350 million dollars. Led by ABC Islamic Bank, HSBC, Noor Islamic Bank and Standard Chartered Bank, the consortium included a total of 29 banks from 15 countries.
With this murabaha syndicated loan deal, Türkiye Finans continues to create added-value for Turkish economy by supporting the companies in need of corporate financing and SMEs in particular………………………………………..Full Article: Source

The rise of Islamist political economy: The new capitalists

Laxman — Wed, 16 May 2012 00:06:02 +0000

After gaining power during the Arab Spring, Islamist parties are seeking solutions to improve the economy of the Islamic states.
For Fawaz A Gerges, professor of international relations at the London School of Economics, free market capitalism is the new model used by the Islamists after years of socialism. Turkey the flagship of the new Islamic movements………………………………………..Full Article: Source

Banque Saudi Fransi plans to issue 5-year sukuk

Laxman — Tue, 15 May 2012 00:41:52 +0000

Banque Saudi Fransi (BSF) plans to issue a five-year benchmark-sized Islamic bond, or sukuk, arranging banks said. An issue would be the Saudi bank’s first sukuk under a recently-established $2 billion program.
Initial guidance for the sukuk was at 200 basis points over midswaps. Benchmark is usually understood to be at least $500 million………………………………………..Full Article: Source

Amer Group studies 2.7 bln pound sukuk offering, Mal says

Laxman — Tue, 15 May 2012 00:41:37 +0000

Amer Group Holding, an Egyptian resorts developer, is studying offering sukuk valued at up to 2.7 billion Egyptian pounds ($447 million) to finance projects, Al Mal reported, without saying how it got the information.
The company may decide on an Egyptian investment bank to manage the sale in 10 days, the Cairo-based newspaper said. Amer may offer the debt in two portions, a $250-million tranche to finance projects in Morocco, United Arab Emirates and Syria, and a 1.1 to 1.2 billion-pound offering to cover projects in Egypt, it said………………………………………..Full Article: Source

Crescent won’t provide cash to Dana Gas for sukuk payment

Laxman — Tue, 15 May 2012 00:41:24 +0000

Crescent Petroleum Co., Dana Gas PJSC (DANA)’s biggest shareholder, has no plan to provide cash to the United Arab Emirates-based natural gas producer to help pay a $1 billion Islamic bond due in October.
Any “speculation around Crescent injecting further capital to support the Dana Gas sukuk is incorrect,” Majid Jafar, Sharjah-based chief executive officer of Crescent, said……………………………………….Full Article: Source

Qatar sukuk sale driven by yields, economic growth

Laxman — Tue, 15 May 2012 00:41:07 +0000

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

Saudi Arabia sees slow progress in bond sales

Laxman — Tue, 15 May 2012 00:40:51 +0000

Saudi Arabia’s record bond issues in 2012 are from a handful of the kingdom’s biggest companies as a lack of a local-currency sovereign-yield curve hampers sales.
A 15 billion-riyal ($4 billion) sukuk by the state- controlled General Aviation Authority leads local-currency offerings from at least four borrowers in the world’s top oil exporter, data compiled by Bloomberg show………………………………………..Full Article: Source

Bermuda aims to become a centre for Islamic finance

Laxman — Tue, 15 May 2012 00:40:38 +0000

The Government of Bermuda has plans to promote the country as a western hub for the Islamic financial services industry. On the signing of a Double Taxation Agreement (DTA) with Qatar, Premier and Minister of Finance, The Hon. Paula A. Cox, JP, MP, said the move “positions us to market Bermuda as an interconnecting domicile for Bermuda and investment from and to those 50 countries with which Qatar has DTAs.”
The Premier went on to say that investors in countries that to date do not have a DTA with Qatar can establish a domicile in Bermuda and benefit from the Qatar Bermuda DTA and the DTA network………………………………………..Full Article: Source

Islamic banking and finance training for Palestinians

Laxman — Tue, 15 May 2012 00:40:22 +0000

The Japan International Cooperation Agency (JICA) and the Islamic Banking and Finance Institute Malaysia (IBFIM) will conduct an Islamic Banking and Finance Training for Palestinians.
IBFIM Chief Executive Officer Datuk Dr Adnan Alias said 23 Palestinians from various ministries and agencies will be attending the two-week training here. “At the end of the course, participants will be awarded a certified qualification in Islamic Finance by the institute………………………………………..Full Article: Source

Indonesia - Bahrain: Exploring smart partnership on Islamic banking and finance

Laxman — Tue, 15 May 2012 00:39:43 +0000

From the setting up of Bahrain Islamic Bank in 1978, through to the publication of the first set of Islamic finance regulations in 2001, Bahrain has been at the forefront of developments in Islamic finance. It is no surprise then that Bahrain has become the home of the various key infrastructure organisations of Islamic finance over the last 25 years.
These include AAOIFI itself, the International Islamic Financial Market, the General Council for Islamic Banks and Financial Institutions, the Bahrain Institute for Banking & Finance and the Waqf Fund for financing training, development and research………………………………………..Full Article: Source

Amana Takafull makes losses, says lack of investment options is hindering growth

Laxman — Tue, 15 May 2012 00:39:27 +0000

Sri Lanka’s Amana Takafull PLC has recorded a Rs. 109.3 million loss during the financial year 2011, owing to the impact caused by increased claims and volatility in investments.
“Increased claims, volatility in investments, especially equities and gold in the latter half of the year, took its toll on profitability, resulting in negative bottom-line”, Chairman of the Amana Takafull PLC Tyeab Akbarally stated in the company’s annual report………………………………………..Full Article: Source

Australia’s NSW revives Islamic finance push

Laxman — Mon, 14 May 2012 00:59:15 +0000

The government of the Australian state of New South Wales, home to the country’s financial capital Sydney, will send a group to Dubai this week to discuss ways to develop the Islamic finance industry, officials said.
The delegation, led by New South Wales premier Barry O’Farrell and including financial services professionals, will explore regulatory and legal issues at a roundtable discussion with the Dubai Export Development Corp on Tuesday………………………………………..Full Article: Source

Malaysians to bring Islamic banking to Germany

Laxman — Mon, 14 May 2012 00:58:53 +0000

Islamic investing represents a 1.2 trillion euro market. Now one Malaysian firm wants to bring the trend to Germany. Others have tried and failed before, so it could be a struggle.
Confident and professional, the female chief executive of Malaysia-based CIMB-Principal recently gave a press conference in Frankfurt about the only registered Islamic investment fund in Germany………………………………………..Full Article: Source

Islamic economics growing in strength: NCB CEO Abdulkareem Alnasr

Laxman — Mon, 14 May 2012 00:58:36 +0000

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

Islamic Economy Council launched in Tunisia

Laxman — Mon, 14 May 2012 00:58:17 +0000

A national council of Islamic economy has been founded in Tunisia with the aim of facilitating the development of the country’s Islamic financial system.
The council, whose board has 28 members, was officially launched on Thursday, May 10, businessesnews website reported. The council has invited Tunisian economic experts and bank managers to join it………………………………………..Full Article: Source

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

Laxman — Mon, 14 May 2012 00:58:02 +0000

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

Fair value rating for Bank Nizwa IPO

Laxman — Mon, 14 May 2012 00:57:43 +0000

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

BankDhofar inks deal for Islamic banking system

Laxman — Mon, 14 May 2012 00:57:29 +0000

BankDhofar recently named Path Solutions as its Core Banking System provider for its Islamic Banking operations. This system, entitled IMAL, is the first certified core banking system for the Bank’s Islamic banking operations.
The two companies signed an agreement which will see them working together to deliver Sharia-compliant products to BankDhofar customers and allowing it to expand this area of its business………………………………………..Full Article: Source

Ithmaar swings to Q1 net loss

Laxman — Mon, 14 May 2012 00:56:29 +0000

Bahrain-based Islamic retail bank Ithmaar registered a net loss of $500,000 in the first quarter compared to a net profit of $4.8 million in the same period last year mainly due to prudent impairment provisions.
Announcing the results on Sunday, the Islamic bank said this was despite a net operating profit of $4.4 million before impairment provisions and taxation, compared to a net operating loss of $2.8 million in the same period last year………………………………………..Full Article: Source

Abu Dhabi Islamic Bank posts net profit of Dhs307.3mln for first quarter of 2012

Laxman — Mon, 14 May 2012 00:56:03 +0000

Abu Dhabi Islamic Bank (ADIB) posted a net profit of Dhs307.3m for Q1 2012. Despite the continued challenging market conditions, and an increasing number of regulations, the performance from the main banking business remained strong as the Bank’s net profit grew by 5.8% to Dhs360.4m from Dhs340.6m for Q1 2011.
Both the Retail and Wholesale Banking unit’s growth in market share was underpinned by ADIB’s ranking as the number one customer service bank in the UAE, a continuously improving network, a broadening product offering and a best practice approach to risk management. As a result customer numbers increased by 9.0% to 466,244, the 71st branch in the UAE opened, the ATM network reached 488 and the wealth management, transaction banking, treasury and investment banking solutions gained further momentum. (Press Release)

Emirates NBD Asset Management reports robust fund performance

Laxman — Mon, 14 May 2012 00:55:43 +0000

High performing funds in Q1 include: Emirates MENA Top Companies Fund - returned 9.3%; Emirates MENA Opportunities fund - returned 8.2%; Emirates Active Managed Fund - returned 9.8%.
“Emirates NBD Asset Management manages a range of products delivering investment growth for our customers,” said Deon Vernooy, Senior Executive Officer, Emirates NBD Asset Management……………………………………….Full Article: Source

StanChart’s Islamic banking head due in Dhaka

Laxman — Mon, 14 May 2012 00:55:25 +0000

Wasim Akhtar Saifi, global head of Islamic banking of Standard Chartered Bank (SCB), arrives in Dhaka today for a two-day official visit, the bank said.
This is his second visit to Bangladesh. Saifi took up this role in January 2011, and is based in Singapore. He is expected to meet key regulators, clients, employees and other stakeholders during the visit………………………………………..Full Article: Source

IDB, Niger reach $ 20 mln deals to support food security

Laxman — Mon, 14 May 2012 00:55:09 +0000

Mahamadou Issoufou, president of Niger, received Ahmad Muhammad Ali, president, Islamic Development Bank Group, at the Conference Palace in Jeddah. During the meeting, the IDB Group signed a number of agreements with the government of Niger to support food security programs and other development measures.
The financing agreements were signed by IDB Group President and Deputy CEO of ITFC Hani Sonbol representing the IDB Group, and Niger Minister of Planning and IDB Gov. Amadou Boubacar Cisse………………………………………..Full Article: Source

Saudi Bank Al Bilad’s invest arm launches local equity fund

Laxman — Mon, 14 May 2012 00:54:31 +0000

Saudi Arabia’s Al Bilad Investment Co., or ABIC, the investment banking arm of shariah-compliant Bank Al Bilad, has launched an Islamic fund for investment in the shares of local companies, Saudi-based Al Riyadh daily reports Saturday.
The fund’s aim is to generate capital and income growth over the medium and long terms, Ayham Al Yousef, chief executive of Al Bilad Investment, said, according to the daily………………………………………..Full Article: Source

HDC, IDB to set up halal investment fund

Laxman — Mon, 14 May 2012 00:54:11 +0000

The Halal Industry Development Corporation (HDC) is in discussion with the Islamic Development Bank (IDB) to set up a halal investment fund.
Its focus will include to finance the development of agriculture businesses especially for IDB member countries. An MoU was signed recently between the two parties to set the ball rolling, HDC chief executive officer Datuk Seri Jamil Bidin……………………………………….Full Article: Source

Dubai Investments Q1 net up 6.3pct

Laxman — Mon, 14 May 2012 00:53:46 +0000

Conglomerate Dubai Investments posted a 6.3-per cent rise in quarterly net profit on Sunday and said the company was reviewing opportunities to divest some of its businesses.
The conglomerate wants to raise up to 1 billion dirhams this year through sale of a sukuk, or Islamic bond, to finance the expansion of its manufacturing units and repay debt………………………………………..Full Article: Source