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Islamic Finance Briefing - Archive | February, 2011

Qatar bank ban bad for Islamic finance

Posted on 21 February 2011 by Laxman  |  Email|Print

From Reuters: Qatar’s decision to ban conventional banks from offering Islamic banking services with immediate effect and to wind down their Islamic windows by the end of the year is an absurd development.
It is disgracefully anti-competitive, counter-productive and there is every likelihood that the government will come to regret it……………………………………….Full Article: Source

First Finance CEO hails QCB move on Islamic banking

Posted on 21 February 2011 by Laxman  |  Email|Print

From Thepeninsulaqatar.com: The Chief Executive Officer of First Finance Company, a Qatari based Islamic Finance Services (IFS) institution, has applauded moves by the Central Bank of Qatar to impose greater regulation on conventional banks offering Islamic services over concerns that “unhealthy competition could lead to over-aggressive practices”.
Khalid bin Ibrahim Al-Sulaiti, who is also Vice Chairman of IFS consultancy Bait Al Mushara, told Oxford Business Group (OBG), the global publishing, research and consultancy firm, that the constraints of Qatar’s market also highlighted the likelihood of consolidation within the sector……………………………………….Full Article: Source

BLME to start Bahrain operations

Posted on 21 February 2011 by Laxman  |  Email|Print

From Tradearabia.com: Bank of London and The Middle East (BLME), a Shariah-compliant bank based in London, has received a licence from the Central Bank of Bahrain (CBB) to open its regional office in the Kingdom.
BLME provides a wide range of services and advice to businesses and individuals, with a strong focus on Europe, the Mena region, as well as the US. Its five core areas are private banking, corporate advisory, corporate banking, asset management and markets division……………………………………….Full Article: Source

HSBC Saudi Arabia wins top honours

Posted on 21 February 2011 by Laxman  |  Email|Print

From Tradearabia.com: HSBC Saudi Arabia Limited, 40 per cent owned by the Saudi British Bank (SABB), has won two MENA Fund Manager Awards. The bank won the Fund of Funds of the Year for its HSBC Amanah Multi Assets Growth Fund and the Sector Fund of the Year for its HSBC Amanah Saudi Industrial Companies Fund.
Both awards were received based on the funds’ performance in 2010……………………………………….Full Article: Source

Bahrain fundamentals strong says cbank

Posted on 21 February 2011 by Laxman  |  Email|Print

From Tradearabia.com: Bahrain’s banking system is operating normally and economic fundamentals remain strong despite unrest, the central bank said, adding it would provide all necessary support to banks if needed.
“All financial transactions are at the normal level and the dinar continues to trade at the same level,” the central bank said in a statement on Sunday after a meeting with retail banks heads……………………………………….Full Article: Source

Profit for delayed period of project is not Shariah-compliant: Grand Mufti

Posted on 21 February 2011 by Laxman  |  Email|Print

From Emirates247.com: Charging of profit for the delayed period in Islamic finance property projects has been described as non-Islamic or ‘haram’ by the Dubai Grand Mufti, Dr Ali Mashael.
Some Islamic banks and mortgage companies have asked investors to pay advance installments (the rental profit or Ijara) even though an already delayed project is not yet completed or handed over……………………………………….Full Article: Source

Takaful Brunei Am empowers sales staff

Posted on 21 February 2011 by Laxman  |  Email|Print

From Brunei-online.com: In a bid to empower Islamic Insurance agents as well as enhancing their knowledge on Islamic insurance products, Takaful Brunei Am yesterday concluded a four-day workshop on Islamic Insurance products for the sales unit of Takaful Brunei Am.
The workshop was conducted and facilitated by Takaful Brunei Am’s senior staff members - Mohd Basri bin Basir, Head of Sales unit, Pg Hj Baharuddin Alim Shah bin Pg Hj Kamaruddin, Executive Officer and Sufian bin Mohd Yusof, Assistant Underwriter……………………………………….Full Article: Source

Malaysia: GDP growth, new Sukuk Index, Maybank earnings

Posted on 21 February 2011 by Laxman  |  Email|Print

From Bloomberg: Malaysia’s economy expanded 4.8 percent last quarter, pushing full-year growth to the fastest pace since 2000 and putting pressure on the central bank to raise interest rates.
Gross domestic product expanded for a fifth consecutive quarter even as exports eased, the central bank said in a statement on Feb. 18. The gain was more than the 4.6 percent median estimate of 14 economists surveyed by Bloomberg News. The economy grew 7.2 percent last year, the most in a decade……………………………………….Full Article: Source

Islamic finance ‘crucial growth engine’

Posted on 21 February 2011 by Laxman  |  Email|Print

From Tradearabia.com: significantly surpassed its niche industry status to become an established component of the financial system, said an expert ahead of a key summit in Dubai. The fact that over recent years Islamic financial institutions have grown at a faster pace than their conventional peers confirms the increasing demand for Sharia-compliant financial products and services.
With the unprecedented growth of major economies in the Middle East, the region is increasingly becoming a more competitive and sophisticated market and the key players are targeting a greater share of the exciting growth potential for Islamic finance, according to David McLean, chief executive of Mega Events, organiser of first Annual Middle East Islamic Finance & Investment Conference (MEIFIC 2011)……………………………………….Full Article: Source

Islamic Unity provides an opportunity for Islamic Scholars to talk about their needs

Posted on 21 February 2011 by Laxman  |  Email|Print

From Ahlul Bayt News Agency: The 24th International Islamic Unity provides an opportunity for Islamic Scholars to talk about their needs and discuss their problems with each other,” the deputy vice councilor for administration and Finance University of the Gumbia, said.
“International Islamic Unity conference gives this opportunity to Islamic scholars from different countries to get more familiar with their brothers and sisters ideas,” the deputy vice councilor for administration and Finance University of the Gumbia, said Dr. Omar Jah……………………………………….Full Article: Source

Korea: Islamic bond bill faces lawmakers’ opposition

Posted on 18 February 2011 by Laxman  |  Email|Print

From Koreaherald.com: The government faces an uphill battle to legislate tax benefits for Islamic bond investors at a parliamentary session starting Friday amid sturdy objections from opposition politicians and churches.
The Finance Ministry is pushing for a bill on Islamic bonds, or sukuk, that would grant tax exemption on profits earned by bondholders in a bid to widen Korea’s access to increasing Middle Eastern oil money……………………………………….Full Article: Source

Bank Negara arm plans shariah hedging guidelines

Posted on 18 February 2011 by Laxman  |  Email|Print

From Thestar.com.my: An Islamic finance research body backed by Bank Negara is drafting rules to regulate the use of derivatives to strengthen the industry’s risk management framework and repair the perception of poor syariah compliance among banks.
The guidelines could help plug a yawning gap in an industry which has struggled to develop hedging tools that do not resemble betting instruments a major handicap that can expose Islamic banks to excessive swings in currency and interest rate movements……………………………………….Full Article: Source

QCB set to brief banks on Islamic window closure

Posted on 18 February 2011 by Laxman  |  Email|Print

From Gulf-times.com: Conventional banks with Islamic branches will be briefed by the Qatar Central Bank on its recent circular demanding the closure of their Shariah arm by the year-end, it is learnt. “I understand a QCB meeting is planned in the coming days with the heads of the conventional banks concerned,” a source said.
In a recent circular the QCB said conventional banks with Islamic windows will have to end their Shariah operations by December 31, 2011……………………………………….Full Article: Source

Nigeria: Islamic banking - Issues and challenges

Posted on 18 February 2011 by Laxman  |  Email|Print

From Allafrica.com: The Central Bank of Nigeria (CBN) has gone a long way in laying the groundwork for the commencement of Islamic Banking in Nigeria. At a recent workshop in Bauchi State, the Special Adviser to the CBN governor on non-interest banking,
Islamic Finance is a financial system that is based on adherence to the Shariah or Islamic law. It offers services, products and instruments based on compliance to this Divine Law. Central to the precepts of the Shariah is that commercial and financial transactions must adhere to these prohibitive principles:………………………………………Full Article: Source

Gulf Finance says jail-free loan plan is future of business

Posted on 18 February 2011 by Laxman  |  Email|Print

From Arabianbusiness.com: Dubai-based lender Gulf Finance has launched a loan programme aimed at small businesses that promises not to report clients to the police if they default on their debts. The scheme breaks sharply with the current system that allows banks to press for the jailing of debtors that fail to meet loan payments.
“Our position is that if you’re courageous and want to start your own business, it shouldn’t be a criminal offense,” chief executive office Steve Williams told Arabian Business. “Things like this will help revitalize the SME market.”………………………………………Full Article: Source

Burgan Bank profits increased in 2010

Posted on 18 February 2011 by Laxman  |  Email|Print

From Albawaba.com: Kuwait’s Burgan Bank has announced improved financial results for the year ended December 31st, 2010. The bank posted KD 4.7 million (US$15.6 million) of net profit. The fourth quarter results amounted to KD 7.7 million, doubling third quarter results of KD 3.8 million and showing a strong trend performance.
The bank has reported operating profit of KD 99 million for the year. The Board of Directors recommended 5% free Bonus shares subject to the approval of the Annual General Assembly……………………………………….Full Article: Source

Bahrain cbank sukuk oversubscribed

Posted on 18 February 2011 by Laxman  |  Email|Print

From Tradearabia.com: The Central Bank of Bahrain (CBB) has announced that the monthly issue of the short-term Islamic leasing bonds, Sukuk Al Ijara, has been oversubscribed by 680 per cent.
Subscriptions worth BD68 million were received for the BD10 million issue, which carries a maturity of 182 days……………………………………….Full Article: Source

Bahrain bank sets up $100 mln equity fund

Posted on 18 February 2011 by Laxman  |  Email|Print

From Tradearabia.com: Bahrain-based Oasis Capital Bank (OCB) said its private equity division has established its first diversified investment vehicle, OCB Global Investment Opportunities, a $100 million target fund seeded and managed in partnership with Credit Suisse.
The Bahraini private investment bank aims to invest in mid market private equity transactions alongside leading managers in Europe, the US and Asia……………………………………….Full Article: Source

Global Islamic finance industry, which is growing 20pct annually, will be further enhanced by UK Fleming Gulf Conference

Posted on 18 February 2011 by Laxman  |  Email|Print

From Balkans.com: Globally Governments are looking to develop their Islamic finance sector by changing regulations to attract investors who can only put their money in Sharia-compliant assets. The UK government, as the facilitator of Islamic finance in the UK, has played an admirable role in this.
The figures for Islamic finance is impressive with Global Islamic Finance industry is growing 20% annually and the the sukuk issuance in the first half of 2010 reached $13.7 billion, which is double amount of the entire 2009’s sukuk issuance……………………………………….Full Article: Source

Islamic finance beats a tactical retreat

Posted on 17 February 2011 by Laxman  |  Email|Print

From Euromoney.com: Although Islamic finance has performed better in Asia than in the Middle East, the sector faced one of its tougher years in 2010. The industry’s future is not secured yet, and the boasts of the boom years have been replaced by introspection and a focus on sustainability.
Bankers involved in Islamic finance have become a more subdued bunch of late. After the sub-prime crisis they bragged about how the Shariah ban on interest and other Islamic prohibitions had shielded their businesses from toxic structured debt securities……………………………………….Full Article: Source

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Gulf Investment Corp launches $164 mln Sukuk

Posted on 17 February 2011 by Laxman  |  Email|Print

From Reuters: Kuwait-based Gulf Investment Corporation (GIC) has launched a 500 million ringgit ($164 million) sukuk issue in Malaysia as part of an existing funding programme, one of a growing number of Middle East issuers to seek alternative sources of funding.
GIC, which was set up to drive private enterprise and economic growth in the Gulf region, had earlier established a 3.5 billion ringgit sukuk programme in the Southeast Asian country……………………………………….Full Article: Source

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South Korea to push tax exemption on Islamic bonds

Posted on 17 February 2011 by Laxman  |  Email|Print

From Bloomberg: South Korea will renew its push to allow tax exemptions on Islamic bonds issued by companies to help local borrowers tap growing Muslim wealth.
The government’s “top priority” at a parliament session starting on Feb. 18 will be to pass a bill on Islamic bonds and another to impose a levy on banks’ foreign-currency debt, Park Cheol Kyu, deputy minister for planning & coordination at the finance ministry, said by telephone today from Gwacheon, south of Seoul……………………………………….Full Article: Source

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Investment Dar’s debt deal may help Sukuk

Posted on 17 February 2011 by Laxman  |  Email|Print

From Arabianbusiness.com: Investment Dar Co’s agreement to change Shariah-compliant debt terms last week may help revive sukuk sales after their 2010 tumble. The Kuwaiti owner of half of Aston Martin Lagonda reached an accord with creditors to pay KD1bn ($3.6bn) of Islamic bonds and loans over as long as eight years.
The company’s debt climbed to a bid price of 38 cents on the dollar from 33 cents before the agreement was reached, according to London-based investment bank Exotix Ltd. Moody’s Investors Service says the case sets a “good precedent” for Islamic bond restructurings worldwide……………………………………….Full Article: Source

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Planned Bahrain sovereign bond seen delayed amid unrest-bankers

Posted on 17 February 2011 by Laxman  |  Email|Print

From Reuters: A planned $1 billion Bahrain sovereign bond issue is likely to be delayed as anti-government protests shook the Gulf Arab kingdom on Wednesday while jittery investors, worried about their exposure, sold off state bonds.
Bahrain’s debt insurance costs hit fresh 18-month highs on Wednesday as thousands of Shi’ite protestors, inspired by popular revolts that toppled rulers in Tunisia and Egypt, poured into Bahrain’s capital to mourn for a second demonstrator killed in clashes this week……………………………………….Full Article: Source

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Central Bank of Bahrain Sukuk Al-Ijara oversubscribed

Posted on 17 February 2011 by Laxman  |  Email|Print

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 680%.
Subscriptions worth BD68 million were received for the BD10m issue, which carries a maturity of 182 days……………………………………….Full Press Release: Source

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Islamic megabank gets Bahrain, Malaysia approvals

Posted on 17 February 2011 by Laxman  |  Email|Print

From Reuters: A long-touted Islamic megabank has received approval from Bahrain and a preliminary green light from Malaysia to begin operations, an organizer said on Wednesday.
Saudi Arabia’s Sheikh Saleh Kamel — who is founder and chairman of Bahrain-based Islamic bank Al Baraka BARKA.BH and spearheaded the megabank initiative — said the venture is still in discussions with Qatar to obtain a licence……………………………………….Full Article: Source

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Bahrain has no plans to shut Islamic units of commercial banks

Posted on 17 February 2011 by Laxman  |  Email|Print

From Arabianbusiness.com: Bahrain, the Middle Eastern country with the largest number of Islamic banks, has no plans to shut the Islamic units of commercial banks, said Abdul Rahman Al Baker, executive director of financial institutions supervision at the Central Bank of Bahrain.
“We are allowing Islamic lenders for a long time,” he said in said in Abu Dhabi on Wednesday. “Conventional banks add value to Islamic banking.”………………………………………Full Article: Source

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QCB sees risks in mix of Islamic and other banking

Posted on 17 February 2011 by Laxman  |  Email|Print

From Gulf-times.com: The Qatar Central Bank has highlighted the ‘overlapping of non-Islamic and Shariah activities’ of conventional banks, which QCB said created difficulties for them to manage their risks.
“Islamic finance is characterised by certain risks of more diversified and complex nature than conventional financing, particularly with regard to the return, liquidity, credit and market risks relating to Mudaraba, Musharaka, Istisnaa and Ijara finance methodologies,” QCB said in a recent note……………………………………….Full Article: Source

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Qatar plans Islamic bank

Posted on 17 February 2011 by Laxman  |  Email|Print

From Gulf-daily-news.com: Qatar’s central bank will meet conventional banks to discuss options for their Islamic operations, including pooling Islamic assets into a newly created Islamic bank, a Qatari newspaper said yesterday.
Under the proposal, conventional banks, which were told by the central bank to close their Islamic operations by the end of the year, would move their Islamic assets to a new Islamic bank and stakes in the bank would be set by deposits and funds transferred, the daily Al Sharq said, citing banking sources……………………………………….Full Article: Source

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Uganda mulls Islamic banking

Posted on 17 February 2011 by Laxman  |  Email|Print

From Onislam.net: Eyeing a share in the booming Islamic banking, the largely Christian Uganda is mulling new amendments in its financial system to allow Islamic banking services.
“We’ve been studying amendments to the current banking rules to allow Islamic banks to own assets,” Titus Mulindwa, deputy legal counsel at Bank of Uganda, told the Nigerian paper The Nation on Wednesday, February 16……………………………………….Full Article: Source

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Ajman Bank unveils home finance facility for Manazel properties

Posted on 17 February 2011 by Laxman  |  Email|Print

Ajman Bank, an award-winning financial services institution committed to transforming the experience of Islamic banking, announced today that has entered into a strategic partnership with Manazel Real Estate PJSC, one of the UAE’s leading real estate developers.
The agreement, which will see Ajman Bank provide Islamic home finance to customers, was signed in a ceremony by Mr. Ali Al Nuaimi, Deputy CEO of Ajman Bank, and on behalf of Eng. Mohamed M. Al Mazrouei, CEO of Manazel, Mr. Saeed Al Khazaraji, Head of Support Services……………………………………….Full Press Release: Source

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New Saudi bank to finance Egypt projects

Posted on 17 February 2011 by Laxman  |  Email|Print

From Arabnews.com: Saudi businessmen will establish a development bank in Egypt with a capital of 1 billion Egyptian pounds to finance investment projects in the country, Saleh Kamel, a prominent businessman and chairman of the Council of Saudi Chambers of Commerce and Industry announced on Wednesday.
Kamel, who is also chairman of the Jeddah Chamber of Commerce and Industry, said details about the bank would be announced within two months, adding that it would make long-term investments in Egypt creating new job opportunities for Egyptians……………………………………….Full Article: Source

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Analysis: Bahrain unrest may have regional, financial impact

Posted on 17 February 2011 by Laxman  |  Email|Print

From Reuters: Bahrain may be tiny, and fairly insignificant as an oil producer, but nearly $10 billion parked in mutual funds in the kingdom mean plenty is at stake if protests inspired by Egypt and Tunisia spiral out of control.
It is the Gulf Arab state seen as most vulnerable to unrest because of deep-rooted discontent among its majority Shi’ite population against the ruling Sunni dynasty, the al-Khalifas. The populace complains of economic hardships, lack of political freedoms and discrimination in jobs in favor of Sunnis……………………………………….Full Article: Source

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Malaysia pioneers Islamic finance framework

Posted on 16 February 2011 by Laxman  |  Email|Print

From Financialstandard.com.au: Malaysia is stepping up its push to become a world centre of Islamic finance with the release of a Shari’ah Governance Framework for Islamic Financial institutions that will apply to Islamic organisations from June this year.
Development of the framework reflects concerns the trillion dollar Islamic investment sector, estimated to be equivalent to about 5 per cent of the worldwide investment industry, is stalling……………………………………….Full Article: Source

Uganda set for Islamic banking

Posted on 16 February 2011 by Laxman  |  Email|Print

From Thenationonlineng.net: Uganda has received applications from three Islamic banks in the Middle East to offer Shariah-compliant financial services in the country. “The Middle East investors can start operations either by acquiring a local bank or setting up a new Islamic bank in the country,” Grace Stuart Ndyareeba, deputy director of commercial banking at Bank of Uganda, said in an interview in Jakarta, declining to name the banks.
The African nation is changing its banking rules to allow lenders to operate under Islamic law and representatives from its central bank are in Jakarta to learn from Indonesia’s experience……………………………………….Full Article: Source

Qatar banks may pool Islamic funds in one bank

Posted on 16 February 2011 by Laxman  |  Email|Print

From Reuters: Qatar’s central bank will meet with conventional banks to discuss options for their Islamic operations, including pooling Islamic assets into a newly created Islamic bank, a Qatari newspaper said on Tuesday.
Under the proposal, conventional banks, which were told by the central bank to close their Islamic operations by the end of the year, would move their Islamic assets to a new Islamic bank and stakes in the bank would be set by deposits and funds transferred, the daily Al Sharq said, citing banking sources……………………………………….Full Article: Source

Qatar ban ‘a blow to banks’

Posted on 16 February 2011 by Laxman  |  Email|Print

From Tradearabia.com: Qatar’s order that conventional banks stop offering Islamic banking services will have a negative impact on those banks and benefit Islamic ones, Moody’s rating agency has said.
‘The loss of Islamic banking franchise is credit-negative for Qatari conventional banks, which derive 10 to 15 per cent of their yearly earnings from Sharia-compliant banking,’ Moody’s was quoted as saying in a report in our sister newspaper Gulf Daily News……………………………………….Full Article: Source

Emirates Islamic Bank launches new personal finance product

Posted on 16 February 2011 by Laxman  |  Email|Print

From Ameinfo.com: Emirates Islamic Bank (EIB) announced the launch of their new personal finance product: ‘Investment Murabaha’. With this product, customers will now be able to purchase Sharia Compliant Shares listed on the Abu Dhabi Securities Exchange (ADX) or Dubai Financial Market (DFM).
The customers can hold or sell their shares depending on their objectives i.e growth in their investments or enhancing their funds flow. The product is for UAE Nationals as well as expats and is based on the Wakalah / Murabaha structure……………………………………….Full Article: Source

Al khaliji, QDB sign deal on project financing

Posted on 16 February 2011 by Laxman  |  Email|Print

From Gulf-times.com: Al Khalij Commercial Bank (al khaliji) and Qatar Development Bank (QDB) have signed an agreement to provide project financing for Qatar’s growing number of small and medium enterprises (SME) under QDB’s Al Dhameen programme.
The agreement was signed at the QDB headquarters by Abdulaziz al-Khalifa, director (strategic planning and control) at Qatar Development Bank and Robin McCall, al khaliji acting chief executive officer……………………………………….Full Article: Source

Gulf regional banks challenge global competitors for bond fees

Posted on 16 February 2011 by Laxman  |  Email|Print

From Arabianbusiness.com: Gulf Arab banks, long trailing international lenders in managing bond sales in the region, are hiring from their global competitors and looking to partner with them in an effort to build fee income.
With their experience, history in the region, greater ability to lend and access to global investors, international banks such as HSBC Holdings and Standard Chartered ]regularly top the Gulf’s bond league tables, a list that ranks banks by the amount of money they helped clients raise……………………………………….Full Article: Source

Investment banking in MENA through the ages

Posted on 16 February 2011 by Laxman  |  Email|Print

From Kippreport.com: During his more than 20 years in corporate banking, Jacob Yahiayan, the founder and managing member of New York-based Continental Advisory Services LLC, has structured more than $5 billion in corporate financing in North American and international markets.
In his last management role, he was the assistant general manager and head of corporate banking at a subsidiary of Standard Chartered Bank PLC, based in Beirut……………………………………….Full Article: Source

Niger insurance urges public to buy Takaful insurance products

Posted on 16 February 2011 by Laxman  |  Email|Print

From Vanguardngr.com: The management of Niger Insurance plc has enjoined members of the insuring public to buy Takaful insurance products as part of efforts to imbibe savings culture.
The company’s Managing Director, Clinton Uranta, made this call during a chat with correspondents in Lagos……………………………………….Full Article: Source

GCC: Insurance market ’set for major expansion’

Posted on 16 February 2011 by Laxman  |  Email|Print

From Gulf-daily-news.com: The insurance market in the GCC is set for a major expansion as the regional economy picks up. Individuals and companies are set to see the industry grow substantially over the next few years, according to financial services firm KPMG audit and advisory director Krishnan Kavasseri.
“At present the percentage of gross national product that is spent on insurance in the region is very low,” he said. “We are still behind countries like Taiwan but that is about to change……………………………………….Full Article: Source

Sharjah council passes draft on endowment law

Posted on 16 February 2011 by Laxman  |  Email|Print

From Khaleejtimes.com: The Sharjah Consultative Council (SCC), on Tuesday morning unanimously passed a new draft law on endowment in the emirate of Sharjah. Dr Obaid Al Tunaiji, Head of Islamic and Municipal Affairs and Public Departments Committee, SCC, said the 59-article bill streamlines all the issues related to endowment or Awqaf – its nature, types, terms and conditions, validity, endorsement, cancellation, and profit distribution.
As per the bill, every legal and Shariah complaint property or money may be endowed. The properties that may be endowed include shares, bonds, securities, trade marks and intellectual property rights, amongst others……………………………………….Full Article: Source

Gulf Sukuk to rally on post-Mubarak sentiment

Posted on 15 February 2011 by Laxman  |  Email|Print

Abdul Kadir HussainFrom Arabianbusiness.com: Islamic bonds from the Arabian Gulf may extend last week’s rally as the resignation of Egyptian President Hosni Mubarak bolstered investor confidence that turmoil in the Arab’s world’s most populous nation will subside.
The yield on Dubai’s 6.396 percent sukuk due November 2014 declined 25 basis points last week to 6.28 percent on Feb. 11, according to data compiled by Bloomberg. The current rate is 29 basis points lower than the 6.568 percent on Jan. 31, the highest level this year……………………………………….Full Article: Source

Saudi Electric invites banks for potential dollar-bond

Posted on 15 February 2011 by Laxman  |  Email|Print

From Arabianbusiness.com: Saudi Electricity Co has invited banks for a potential bond mandate, after the company said last year it could tap international debt markets in 2011. In May, a senior executive said the company was considering its first international bond issue which would be an Islamic issue, or sukuk. The company has so far only issued domestic sukuk.
A request for proposals (RFP) has been sent to a limited number of local banks and international institutions with operations in Saudi Arabia, and replies are due by the end of February, IFR said……………………………………….Full Article: Source

Sector report: Islamic finance

Posted on 15 February 2011 by Laxman  |  Email|Print

From Nasdaq.com: The growing popularity of Islamic financing and an intensified focus on risk management in the global banking industry are prompting greater awareness of the need for a unified-and appropriate-regulatory regime.
When the Basel Committee on Banking Supervision first drafted the Basel Capital Accord in 1988, it was focused on creating a framework for measuring credit risk and setting minimum capital standards to safeguard banks against a loss or default……………………………………….Full Article: Source

Malaysia: New Shariah governance framework to boost progress of Islamic finance

Posted on 15 February 2011 by Laxman  |  Email|Print

From Bernama: The new Shariah Governance Framework for Islamic Financial Institutions 2011 introduced by Bank Negara Malaysia (BNM) last October would be a catalyst in bringing the country’s Islamic finance industry forward, says a researcher.
International Shari’ah Research Academy for Islamic Finance (ISRA) executive director Dr Mohd Akram Laldin said the framework is aimed at enhancing and strengthening the Syariah element in Islamic financial institutions and for them to attain a syariah-based operating environment……………………………………….Full Article: Source

The missing puzzle piece in Malaysia

Posted on 15 February 2011 by Laxman  |  Email|Print

From Btimes.com.my: Today’s Achilles heel in Islamic finance is the “under-developed” Islamic equity capital market. The informed world acknowledges Malaysia’s remarkable holistic leadership in Islamic finance, including US Secretary of State, Hillary Clinton’s, recent glowing comments.
But, why aren’t Islamic funds from GCC and elsewhere finding their way to the syariah-compliant companies listed on Bursa Malaysia?………………………………………Full Article: Source

Uganda asks for Indonesia advice on Shariah banking

Posted on 15 February 2011 by Laxman  |  Email|Print

From Thejakartapost.com: The Ugandan central bank is currently struggling to address demands for the first sharia bank in the East African country. Bank of Uganda, the republic’s central bank, has therefore sent delegates to Indonesia, home to the world’s largest Muslim population, to learn more about Islamic finance.
The visit of the Ugandan central bankers underscored the world’s acknowledgement of the rapid development of Indonesia’s Islamic banking industry, a Bank Indonesia (BI) official said……………………………………….Full Article: Source

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