From Brusselsjournal.com: All over Europe Islamic banks are establishing branches, Western banks are offering Sharia-compliant financial services, and European governments are trying to outcompete each other in welcoming them.

Proponents of banking along the lines of Sharia (Islamic law) claim that the Islamic banking system is “more ethical” than the West’s capitalist system. This is not true. Unfortunately, however, in our age of crashing financial markets, many Westerners – not just the traditional anti-capitalist European left – seem very eager to buy that argument…..Full Article: Source

From Business24-7.ae: The definition of a Sharia-compliant stock is ambiguous. At best, it suggests that a stock is Sharia-compliant if it fulfils both sectoral and financial screening filters. Sharia-compliant investment management is concerned with investments in assets that are in compliance with Islamic law.

An Islamic investor is not allowed to invest in companies that derive most of their revenue from non Sharia-compliant business activities, or that use interest in operating or financing their business…..Full Article: Source

From Aawsat.com: Perhaps many people were shocked at the recent media reports of financial corruption taking place within an Islamic Bank.

The reason behind this shock is not due to the existence of financial corruption at a prestigious financial institution – although this is more than a sufficient reason for shock – but rather because this financial corruption took place inside an Islamic financial institution that claims that all of its activities are directed and governed by Islamic Shariaa Law. [If this is the case] then how did this happen?….Full Article: Source

From Dailymirror.lk: The need for an accounting system that will work is what sukuk offers the Malaysian Islamic finance ratings company stated, adding that it has better control and governance in accordance with the Islamic concepts of carrying out financial transactions in a banking system.

“The current conventional accounting standard is no good, control and governance is a culture that should be established,” RAM Ratings Lanka Country Manager and Acting CEO Sri Lanka Kingston Ng told the Daily Financial Times during an interview recently…..Full Article: Source

From Europenews.dk: We are now seeing the third round of bailouts for Citigroup, after the US government already has taken a 36 percent stake in the bank. This makes the US government the largest shareholder of a bank, whose second largest shareholder is Saudi Prince Alaweed Bin Talal.

Currently American taxpayers are in hock for 45 billion dollars to bailout Citigroup, while the Treasury, the FDIC and the Federal Reserve cover 90 percent of Citi’s 335 billion dollar losses. The numbers are scary and since most financial experts predict that the bailout isn’t done yet, is likely to only be the beginning…..Full Article: Source

From Gulfnews.com: Gulf Arab economies could shrink this year due to oil price declines, but liquidity is adequate and credit still growing, central bankers in the world’s top oil-exporting region said Wednesday.

Sultan Nasser Al Suwaidi, the UAE Central Bank governor, told a banking conference that he did not expect oil prices to average more than $40-$44 (Dh146-Dh161) per barrel in 2009, a far cry from the highs near $150 in July that marked the peak of an economic boom across the six-member Gulf Cooperation Council…..Full Article: Source

From Thesundaily.com: Public Bank Group recently launched the Public Islamic Bank with the aim of contributing towards the nation’s long-term goal of having a viable, sound and competitive Islamic financial system in the country.

The launch of Public Islamic Bank, a wholly owned subsidiary of Public Bank, marks another milestone in the development of Islamic banking and finance in Malaysia…..Full Article: Source

From Thestar.com.my: Malaysia’s financial sector is on a much better footing than before, characterised by stronger capital levels and profitability positions. Reforms and capacity-building measures will continue to be instituted to enable our financial institutions to withstand shocks.

Ongoing efforts to explore new markets and businesses for expansion and income diversification amidst a more challenging global financial outlook would position Malaysia’s financial sector strategically over the long run…..Full Article: Source

From Bernama: AmMutual has declared income distributions for three of its funds. In a statement here today, it said unitholders of AmBon Islam, AmBond and AmIttikal would get 1.5 sen, 2.0 sen and 1.0 sen per unit respectively.

It said the income distribution for AmBon Islam, a medium- to long-term Islamic bond fund that aimed to provide a stream of ‘halal’ income, represented a yield of 1.44 percent returns…..Full Article: Source

From Forbes.com: Indonesia plans to sell up to 7.5 trillion rupiah ($650 million) of Islamic bonds before June, its first global sukuk issue, but analysts said market conditions are expected to remain tough due to the global crisis.

Rahmat Waluyanto, treasury director general at the finance ministry, said the global sukuk would be issued before a Samurai bond issue which is planned for June, and the size would depend on the underlying assets available. ….Full Article: Source

From Alibaba.com: Indonesia’s finance ministry plans to sell its first global sharia-compliant bond issue, or sukuk, before June, backed by 7.5 trillion rupiah ($650 million) worth of assets, a senior official said on Wednesday.

The government of the world’s most populous Muslim nation has already raised more than two-thirds of its gross debt issuance target for 2009, but it wants to tap a wider investor base using a broad array of instruments including sharia-compliant debt…..Full Article: Source

From Tradearabia.com: Bahrain is finalising a $500 million Islamic bond, said Central Bank of Bahrain Governer Rasheed Al Maraj. The sukuk, would consist of a $250 million refinancing for an existing sukuk that matures in June, and a new $250 million issue, a source said.

The $500 million sukuk would be issued by the end of May…..Full Article: Source

From Tradearabia.com: Emirates NBD will need to raise about Dh3 billion ($816.8 million) in 2010 to meet central bank requirements to increase its capital adequacy ratios, its chief financial officer said on Wednesday.

‘To reach the 12 per cent (adequacy ration) in June 2010, it will be under Dh3 billion,’ Sanjay Uppal told reporters…..Full Article: Source

From Gulfnews.com: Saudi Arabian central bank Governor Mohammad Al Jasser said the world’s largest oil supplier will provide more money to the International Monetary Fund if its share of the lender’s capital is increased.

“If the quotas of the IMF increase, of course, we will contribute our share,” Al Jasser said in Manama, Bahrain, yesterday. “If they will increase the quota of Saudi Arabia, we will be happy to contribute.”….Full Article: Source

From Tradearabia.com: The Ithmaar Bank drive to diversify its business is reaping rewards, shareholders were told at the bank’s annual general meeting.

Despite the global financial crisis, last year proved a positive year for the Ithmaar Bank, and for its subsidiaries and associates…..Full Article: Source

From Thepeninsulaqatar.com: The Qatar Chamber of Commerce and Industry (QCCI), representative body of the private sector, has called for accelerating the efforts to have a unified regional currency in place and consolidate the Gulf common market to ward off the adverse impact of the global crisis.

“We need economic blocks to help protect our interests and keep the negative impact of the world financial turmoil at bay,” the Chairman of the Chamber, Sheikh Khalifa bin Jassem Al Thani, said in a statement yesterday…..Full Article: Source

From Thepeninsulaqatar.com: If confirmation were needed of woes in the United Arab Emirates banking industry, Moody’s last week said it was considering downgrading the rating of HSBC Middle East, mainly due to the prospect of rising loan delinquencies in the UAE, its largest market.

HSBC Middle East said its charges for bad loans rose by five times to $280m last year because of a “significant” increase in consumer loan defaults, equivalent to about 1 percent of the bank’s regional loan book…..Full Article: Source

From Ptinews.com: The Kuwait government has said that it could push through a $5.15 billion stimulus bill as an emergency decree, bypassing parliament, in a bid to rescue the countrys ailing economy.
The country’s Finance Minister Mustafa Al Shamali told Kuwait Times newspaper that the “economic situation as well as public opinion” were pushing for quick action over the stimulus package…..Full Article: Source

From Thepeninsulaqatar.com: Qatar’s economy has enough ammunition required to tackle the extraordinary regional and global conditions emerging out of the economic slowdown, Deputy Premier and Minister of Energy and Industry, H E Abdullah bin Hamad Al Attiyah said here yesterday.

“The Qatari economy which has never been immune to the global economic slowdown, promises to grow at reasonable rates this year amid the global economic and financial turbulence,” said Al Attiyah at the Qatar Fuel (Woqod)…..Full Article: Source

From Thedailynewsegypt.com: By the end of last year, the meltdown was complete. Lehman Brothers had failed, Merrill Lynch was gone, and analysts from CNBC to the beleaguered banks were predicting that Wall Street would never again look the same.

But while the Dow sank and many despaired, one sector in the financial world saw its growth potential go through the roof: Islamic finance…..Full Article: Source

From Tradearabia.com: Dubai Islamic Bank (DIB), Sharia-compliant financial institution, said its board has approved the distribution of a cash dividend of 25 per cent and bonus shares of five per cent for the year 2008.

The decision was taken on Wednesday at the bank’s annual general meeting (AGM) where DIB’s 2008 financial results were also approved…..Full Article: Source

From Ameinfo.com: At the Hedge Funds World Middle East Conference in Dubai earlier this month, Eric Meyer, Chairman and CEO of Shariah Capital, received the ‘Special Merit Award for Outstanding Industry Contribution’ for his work developing Shariah compliant hedge funds, funds-of-hedge funds and customized Shariah compliant financial product platforms.
In 1998, Forbes magazine identified Eric Meyer as ‘an emerging force’ in hedge fund investing and in 2005 Banker Middle East magazine characterized him as ‘a pioneer in Islamic finance.’….Full Article: Source

From Albawaba.com: The International Islamic Trade Finance Corporation (ITFC), an autonomous entity within the IDB Group, has been announced as the winner of the prestigious Euromoney Trade Finance Deal of the Year Award 2008 for its €23 million financing transaction for the cotton sector in the Cote d’lvoire.

The ITFC deal was selected for the award as it demonstrates a number of significant innovations compared to standard pre-export finance, as well as being Shariah-compliant and of great social and economic importance…..Full Article: Source

From Ameinfo.com: Fawaz Al Jowder, Deputy Chief Executive Officer of Abu Dhabi Investment House, told CNBC Arabiya, that the company has extended its operations to North Africa including Morocco and Tunisia, and South East Asia.

Al Jowder added that the company has also made significant investments in funds such as the India Entertainment City, part of the Qatar Entertainment City…..Full Article: Source

From Bdnews24.com: The government should form a special fund to provide recession-hit exporters loans at low rates, rather than a proposed recovery package, the former finance adviser to the caretaker government has suggested.

“I personally believe no extra facility is required for any sector in the face of the global economic downturn,” AB Mirza Azizul Islam said Wednesday, speaking exclusively to bdnews24.com…..Full Article: Source

From 2711.co.za: The Shariah exchange traded fund, which is being run by Absa, closed their initial public offering (IPO) last Friday, and according to Dr Vladimir Nedeljkovic, the associate principal of ETFs and Index Products at Absa, the results of the IPO will be available on April 3, when the actual figures will be released.

Nedeljkovic says that they have subscriptions in cash and in specie, so the total amount can still vary……Full Article: Source

From Europenews.dk: t’s not a game. These are not people just talking tough around the kitchen table. These are groups of people that are organised and backed up with both skill and finance. When will the Americas wake up to the fact that this danger can no longer be ignored?

As the man ringing the alarm bell goes deaf, Canada and the U.S. continue to sleep……Full Article: Source

From Gulf-times.com: Qatar First Investment Bank (QFIB), a new fully Shariah-compliant investment bank, was formally launched at a ceremony attended by a galaxy of dignitaries including former US president Bill Clinton at the Museum of Islamic Art last night.

QFIB is the first independent Islamic investment bank to be licensed by the Qatar Financial Centre. It has an authorised capital of QR3.6bn and aims to become one of the leading financial institutions in Islamic investment banking in Qatar and the GCC by adopting a unique business model…..Full Article: Source

From Gulf-times.com: Investment banks have “tremendous opportunities in the changing global economic situation because of the realistic value of assets”, said Mike de Graffenried, chief executive officer of Qatar First Investment Bank (QFIB).
“There are challenges, but with a prudent investment strategy and careful planning we can capitalise on the opportunities in Qatar and the GCC,” Graffenried told Gulf Times yesterday…..Full Article: Source

From IHT: Kuwait’s Cabinet wants to pass its $5.15 billion stimulus bill as an emergency decree, bypassing parliament, the finance minister said Tuesday, as the oil-rich country’s economy stumbles amid the global economic crisis.

Mostafa al-Shimali told Alrai daily that the worldwide crisis was affecting everybody, and the “economic situation as well as public opinion” were pushing for quick action…..Full Article: Source

From Xinhua: Kuwaiti investment companies have lost 9.2 billion Kuwaiti dinars (32 billion U.S. dollars) from the start of the global financial crisis last August to the end of this January, Kuwait News Agency (KUNA) Tuesday quoted official data as saying.

The figures published by the Central Bank of Kuwait (CBK) said overall capital of conventional and Islamic companies at the end of January stood at 20.8 billion dinars, compared to 30 billion dinars in July. ….Full Article: Source

From Reuters: Dubai Islamic Bank DISB.DU is considering raising 3 billion dirhams ($817 million) in fresh capital and converting emergency government deposits into regulatory capital as Gulf banks brace for an economic slowdown.

The bank’s board of directors would discuss the two measures on March 25, the bank said on Tuesday in a statement on the bourse website…..Full Article: Source

From Forbes.com: Bahrain is finalising a $500 million Islamic bond, the central bank governor said on Tuesday, as the Gulf Arab state seeks to raise money to offset lower oil revenues.
Rasheed al-Maraj did not give details about the sovereign bonds in his remarks to reporters, but a source familiar with the matter said the issue was aimed at covering part of the Gulf Arab oil-producer’s expenditures because a fall in crude oil prices have hit its budget…..Full Article: Source

From Tradearabia.com: Ahli United Bank, Bahrain’s largest bank by market value, said on Tuesday that it was eyeing acquisitions outside the Gulf but would hold off from doing any deals until markets settle.

‘To be realistic in the current environment, we have to wait until the dust settles down on the banking scene. Until we better understand the economic valuations of our targets,’ Ahli’s chief executive Adel al-Labban told reporters at a banking conference…..Full Article: Source

From Gulfnews.com: Bahrain-based lenders Al Salam Bank and Bahrain Saudi Bank said on Monday that their planned merger, which would create a bank with combined market value of $400 million (Dh1.569 million), is on track.

Al Salam and Bahrain Saudi Bank said yesterday in a joint statement posted on the Bahrain stock exchange that the due diligence and evaluation is expected to be completed in the coming weeks…..Full Article: Source

From Khaleejtimes.com: Urgent action is needed to shore up Dubai World’s Nakheel, developer of the emirate’s signature palm-shaped islands, and Dubai Holding, an investor in Sony of Japan and Europe’s EADS aerospace group, Dubai’s finance chief said on Tuesday.

However, Emaar Properties, the largest real estate developer in the UAE, is not asking for emergency financial support because “it believes it can handle” the crisis, Nasser Al Shaikh, Director-General of the Department of Finance, said in an interview…..Full Article: Source

From Reuters: With the global economy slowing down, ADIH is planning to capitalise on the opportunities in distressed assets. This could be the first distressed assets fund from the Middle East. The Abu Dhabi Investment House (ADIH) is planning to launch a fund to acquire distressed assets.

The likely size of the fund or the timeline of the launch is not known. The firm is however looking at new sectors like cleantech and pharma, and expanding to newer geographies. ….Full Article: Source

From Albawaba.com: Shamil Bank Member of the Board of Directors and Annual General Meeting Chairman, Mohammed A. Rahman Bucheerei said today that 2008 had proved, generally, a positive year for Shamil Bank.

Shamil BankSpeaking following the Ordinary and Extraordinary Shamil Bank Annual General Meetings that were held at the Bank’s headquarters in Seef Tower, Bucheerei said that despite the financial crisis and the subsequent global economic slowdown, 2008 had been a busy year at Shamil Bank…..Full Article: Source

From Ameinfo.com: The Insynergy UK Sharia’a Growth Fund, advised exclusively by Gulf Finance House’s Asset Management division has broken into the top ten of 297 competing funds in the IMA UK All Companies sector for performance in 2009.
Insynergy selected GFH as their advisors on UK Sharia’a equities in October 2008. The fund is distributed in the UK through AXA; one of the world’s leading financial institutions. ….Full Article: Source

From Gulf-times.com: QNB is likely to launch the initial public offering of its Syrian subsidiary by May next year. The board of directors has “agreed to the broader plans to finalise the IPO next May, after obtaining the required approvals from the Central Bank of Syria”, QNB executive general manager and chief business officer Ali Ahmed al-Kuwari said.

QNB, Qatar’s largest bank in terms of assets and capitalisation, is offering 32.5% to the general public in Syria…..Full Article: Source

From Thepeninsulaqatar.com: Despite challenging business environment, the Qatar Islamic Insurance Company (QIIC) yesterday announced that it will reimburse 19 percent cash surplus to its policyholders for 2008 backed by robust financials.

The company’s chairman told the annual general meeting of the shareholders amidst thunderous applause: “The board has decided to reimburse policyholders cash surplus equaling 19 percent of the premiums written in 2008, the highest so far.”….Full Article: Source

From Bernama.com.my: Malaysian Industrial Development Finance Bhd (MIDF) has announced the appointment of Mohamad Safri bin Shahul Hamid as the deputy chief executive officer of MIDF Amanah Investment Bank Bhd.

Safri is a sukuk specialist and was involved in many transactions, both onshore and offshore, including the world’s first exchangeable sukuk, the world’s first Islamic residential mortgage backed securities (RMBS) and the world’s first hybrid sukuk…..Full Article: Source

From Tradearabia.com: Oman’s real growth in gross domestic product could fall by as much as half to around 3 percent in 2009 as the financial crisis bites, the sultanate’s central bank governor said.

Hamood Al-Zadjali told Reuters on the sidelines of a banking conference in Bahrain that inflation was set to fall to around 6 percent on average this year after hitting double digits in 2008, while credit growth was expected to ease to around 20 percent due to the economic slowdown…..Full Article: Source

From Thejakartaglobe.com: PT Bank OCBC NISP Tbk expects to launch a Shariah banking unit in the second half of 2009, with full operation expected to start next year in three branches in Jakarta, Surabaya, East Java Province, and Bandung, West Java Province.

Parwati Surjaudaja, the bank’s president director, said on Monday that OCBC NISP, which is 74.73 percent controlled by Singapore’s OCBC Bank, had allocated Rp 100 billion ($8.7 million) for the Shariah unit and projected capital expenditures of Rp 2 billion to Rp 3 billion…..Full Article: Source

From Tradearabia.com: The ninth GCC Banking Conference, which opened today (March 24) in Bahrain, has drawn more than 600 participants.

The two-day conference with the theme “A new era in international banking practices: Implications for the GCC markets” is being held at the Ritz Carlton Bahrain, Hotel & Spa under the patronage of Prime Minister of Bahrain, Shaikh Khalifa Bin Salman Al Khalifa…..Full Article: Source

From Morningstar.com: Bangladeshi authorities said Tuesday they were investigating dozens of Muslim charities in the impoverished country over allegations they are funding militants.
Finance minister A.M.A. Muhith said the government had decided to begin the probe a month after a mutiny at a military base in the capital, in which authorities suspect Islamic militants played a role…..Full Article: Source

From Menafn.com: Today Arab News launches a regular weekly page dedicated to Islamic banking, finance and insurance (Takaful), the fastest growing phenomenon in global finance. At a time when the conventional interest-based global financial system is in turmoil, it is a natural reaction to seek more prudent and ethical alternative systems of financial management.

Islamic finance, now in its fourth contemporary decade, offers one unique alternative and is here to stay. Global Islamic financial assets are estimated to be about $1 trillion with a potential to rise to $4 trillion by 2010. Another $1.2 trillion is estimated to be invested in commodity Murabaha contracts alone…..Full Article: Source

From Legalbusinessonline.com: The Islamic finance practices of firms in East Asia have been eyeing the Gulf as a growth strategy for some time. The question is: will recent global financial events will put their ambitions on hold?

As Asian authorities have intensified their pursuit of a larger slice of the Islamic finance (IF) market, the region’s law firms have followed suit - some of them even establishing offices in the Gulf region. But how successful will this be in attracting more IF work?….Full Article: Source

From Dawn.net: Syndicated lending is a loan provided to a borrower jointly by two or more lenders in the form of a group. The syndicate has become a major feature of conventional financial system. It is an important way of raising large amounts of capital not possible otherwise.

Lenders are able to diversify their loan portfolios and minimise their risk exposure; these loans are less expensive and are more efficient to administer…..Full Article: Source

From Tradearabia.com: The Saudi Arabian and United Arab Emirates economies will narrowly avoid contracting in 2009 while Kuwait shrinks as the Gulf is dealt a double blow from oil output cuts and weak consumer demand, a Reuters poll showed.

Real economic growth in all Gulf oil exporters except Qatar is set to slow to about 2 per cent or less, marking an abrupt end to a boom that saw most Gulf economies expand 6 per cent or more in 2008, according to the poll of 14 economists and analysts…..Full Article: Source