Qatar’s decision to restrict Islamic banking and introduce limits on consumer borrowing may reduce profit by as much as 22 percent for banks in the world’s fastest-growing economy.
Net income estimates for Commercial Bank of Qatar QSC, the nation’s second-largest bank, were cut 22 percent, or 478 million riyals ($131 million) on the rule changes by analysts at Credit Suisse Group AG (CSGN) last month. They also cut their estimates for Doha Bank QSC (DHBK), the fourth-biggest lender, by 10 percent, according to a report to clients……………………………………….Full Article: Source

Proponents of Islamic banking have gone a step further to add value to a discipline that is regarded as an alternative to mainstream banking practice.
This month, 24 students graduated from a year-long certificate programme offered by IslamicFinance, a division of FirstRand Bank, designed to enhance and mentor candidates who are in business but have not had the opportunity for formal business education……………………………………….Full Article: Source

Central Bank of Nigeria (CBN) governor, Sanusi Lamido Sanusi, insists the controversy that has continued to trail the proposed introduction of Islamic banking in the country was unnecessary, as the apex banking is doing nothing that is illegal.
Mr Sanusi, who was answering reporters’ questions in Abuja, said Islamic banking has nothing to do with promoting religion or any belief, but another financial product or on-interest banking designed to diversify and broaden the scope of banking service to customers……………………………………….Full Article: Source

Noor Islamic Bank, which is in its fourth year of operation, is poised to break even this year, CEO Hussain Al Qemzi said. “Going by our performance during the first four months of this year we are confident that we will have a positive net income to report during the current year,” Al Qemzi said.
The Noor Islamic chief executive said yesterday that the bank, year to date, has posted a net profit of Dh58 million as its operating income grew Dh113 million. Its capital adequacy ratio was 18 per cent year to date……………………………………….Full Article: Source

An Islamic investment conference, which has concluded in Amman, recommended the setting up of a fund for extending humanitarian assistance to Libyan evacuees, according to a communiqué issued on Thursday.
The meeting was organized by the Islamic Chamber of Commerce and Industry (ICCI) and the Jordan Chamber of Commerce and Industry……………………………………….Full Article: Source

Ibrahim Warde, adjunct professor of International Business at the Fletcher School of Law and Diplomacy at Tufts University, discusses Islamic finance and banking principles.
Warde, author of “Islam and Economics,” speaks with Lisa Murphy on Bloomberg Television’s “Fast Forward.”…………………………………………Full Article: Source

Nakheel properties has no plans to change a 10 per cent profit rate on its Dh4.8 billion sukuk (Islamic bonds) which it intends to issue towards the end of June, a newspaper said on Wednesday.
The Arabic language daily Al Khaleej quoted an unnamed responsible source in Nakheel as saying market reports about an imminent change in the profit rate were incorrect……………………………………….Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

Nakheel’s trade creditors may have to offer yields of more than 15 percent to lure buyers to Islamic bonds they will receive as part of the Dubai-based developer’s $10.5bn debt restructuring.
While Nakheel plans to issue the sukuk with an annual return of 10 percent, the new owners will have to offer about five percentage points more to attract buyers, according to Dubai- based Mashreq Capital DIFC Ltd estimates……………………………………….Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

The Islamic Development Bank (IDB) plans to increase its $3.5 billion sukuk program to as much as $8 billion and issue a sukuk bond worth $600 million by year-end, its Vice President Abdul Aziz Al-Hinai said.
He said $2.9 billion of the current program had been issued and the rest would be out by Dec. 31, adding that the IDB was studying how large the program would become……………………………………….Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

As part of its Resource Mobilization Plan, the Islamic Development Bank (”IDB”), rated Aaa/AAA/AAA (with stable outlook) by Moody’s, S&P and Fitch, conducted a Road Show to Asia, Middle East and Europe.
On the conclusion of the Road Show, Dr. Abdul Aziz Al-Hinai, Vice President Finance commented: “We are delighted with the outcome of the deal, which achieved our main objectives for the transaction to build on the success of last year’s deal to establish another liquid benchmark and further position IDB in line with its Supranational peer group. I am particularly happy to see a number of new accounts come into an IDB trade for the first time, and would like to thank the lead managers for delivering a deal that met all our objectives.” (Press Release)

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

Malaysia will sell 4.0 billion Malaysian ringgit ($1.3 billion) of government bonds due in 2016, the central bank said on Wednesday.
The tendering for the paper will close on May 30 the central bank said on its website. The bonds will mature on Nov 15, 2016……………………………………….Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

State electricity firm PT PLN is mulling the issuance of global bonds worth between US$1.5 billion and $2 billion to help finance its capital expenditure. The decision on whether to issue the bonds would be made by the end of June, PLN president director Dahlan Iskan said in Jakarta on Wednesday.
He added that it was possible the company would issue sharia-based bonds (sukuk), or seek loans from local banks……………………………………….Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

RAM Ratings has reaffirmed the AA1 rating of Segari Energy Ventures Sdn Bhd’s (SEV or the Company) RM930 million Sukuk Ijarah (Sukuk), with a stable outlook. SEV is an independent power producer (IPP) established to develop and own the Lumut Power Project, which consists of a 1,303-MW combined-cycle, gas-turbine power plant in Lumut, Perak.
The rating remains supported by the IPP’s strong business profile. In FY Dec 2010, SEV performed within the operating parameters of its Power Purchase Agreement. It had also fully passed through all fuel costs to its sole off-taker, Tenaga Nasional Berhad. Similar to all other IPPs, however, the rating remains moderated by regulatory and single-project risks. (Press Release)

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

RAM Ratings has assigned a final rating of A3 to Bank Muamalat Malaysia Berhad’s (Bank Muamalat or the Bank) proposed Islamic Subordinated Sukuk Programme of up to RM400 million (Islamic Subordinated Sukuk); the long-term rating has a stable outlook. This rating announcement follows on from RAM Ratings’ earlier press release on the Bank, dated 9 May 2011. Bank Muamalat currently carries A2/stable/P1 financial institution ratings.
The 1-notch difference between Bank Muamalat’s A2 long-term financial institution rating and the A3 rating of its Islamic Subordinated Sukuk reflects the subordination of the Islamic Subordinated Sukuk to the Bank’s senior unsecured obligations. (Press Release)

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

Malaysian Islamic financial group BIMB said on Wednesday it was unable to consider a merger between its unit Bank Islam with rival Bank Muamalat at this juncture.
“BIMB wishes to announce that, after careful consideration of Bank Islam Malaysia Berhad’s current strategic plans and positioning, the company is unable to consider a merger exercise at this point of time,” BIMB said in a stock exchange filing……………………………………….Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

A Standard Chartered Plc (STAN) affiliate, Qatar Islamic Bank SAQ and Oversea-Chinese Banking Corp. are among bidders for a controlling stake in PT Bank Muamalat Indonesia, the country’s oldest Islamic bank, people with knowledge of the matter said.
Shareholders of privately held Bank Muamalat plan to sell more than 50 percent of the lender in a deal that may value it at as much as $600 million, one of the people said, declining to be identified because the talks are private……………………………………….Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

Top shareholders of Indonesia’s PT Bank Muamalat are looking to sell at least a 51 percent stake in the unlisted Islamic lender, in a deal that may be valued at about $300 million, sources with knowledge of the plans said on Wednesday.
Bank Muamalat confirmed the sale process and said several investors have conducted due diligence to buy the stake. Singapore’s second-biggest lender Oversea-Chinese Banking Corp had looked at the bank in the first round, but is no longer interested, two sources told Reuters……………………………………….Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

HSBC Holdings will close its Islamic banking unit HSBC Amanah in Qatar by the end of the year, Europe’s biggest bank confirmed Tuesday.
Staff working at HSBC Amanah will be “absorbed” into the conventional business with no job cuts predicted, the bank said in an emailed statement……………………………………….Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

Noor Islamic Bank, which is in its fourth year of operation, is poised to break even this year, CEO Hussain Al Qemzi said. “Going by our performance during the first four months of this year we are confident that we will have a positive net income to report during the current year,” Al Qemzi said.
The Noor Islamic chief executive said yesterday that the bank, year to date, has posted a net profit of Dh58 million as its operating income grew Dh113 million. Its capital adequacy ratio was 18 per cent year to date……………………………………….Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

Amana Takaful, the pioneer of the Takaful way of insurance has announced thelaunchof Sri Lanka’s first Sharia’h compliant Unit Linked Insurance Plan. The product, branded “Amana Takaful Prosper”, is the first of its kind, where the customer will be able to obtain aTakaful(insurance) cover as well as enjoy a choice of Sharia’h compliant investment options.
“We felt the time was right for us to make available this option for all Sri Lankans as part of our expansion plans of product offerings in the backdrop of a peaceful environment and apt economic conditions……………………………………….Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

Kuala Lumpur-based Alfalah Consulting, is organising the KL Conference on Islamic Wealth Management 2011 over two days from July 6 here.
The company is an international consulting and training provider specialised in the area of Islamic finance, business, management, personal and professional development and motivation……………………………………….Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

Islamic Finance is a growing industry expected to reach over $2 million dollars by 2012 and is rapidly growing as an internationally renowned financial tool in global worldwide trade.
Islamic products and services for the corporate segment have also evolved over time. Basic account services have given way to the need for more complex solutions. Historically, a small range of Islamic financing, investment, cash management and treasury solutions limited the ability of a corporate treasury to mitigate foreign exchange, rate, funding, payment, commodity price and business protection risk in a Sharia-compliant manner……………………………………….Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

HSBC Middle East, a subsidiary of the U. K. headquartered bank, will meet investors in Asia and Europe this week ahead of a potential Islamic bond, or sukuk, issue, IFR Markets reported.
Investor meetings will take place in Singapore, Kuala Lumpur, Hong Kong and London, and a sukuk issue is likely to price this week, IFR, a Thomson Reuters unit reported. In October, HSBC Middle East raised $500 million from a five-year bond issue……………………………………….Full Article: Source

Sharjah Islamic Bank’s $400mn sukuk sale attracted nine times as much in bids, signalling investor appetite for Shariah-compliant debt from the region.
The Sharjah-based bank, which has the third-lowest investment grade rating at Standard & Poor’s, received about $3.75bn in bids, two people familiar with the deal said on May 19. Islamic Development Bank, a Saudi Arabia- based multi-lateral lender, issued $750mn of debt last week……………………………………….Full Article: Source

Malaysia plans to appoint Maybank Investment Bank Bhd, CIMB Investment Bank Bhd and HSBC Amanah Malaysia Bhd to advise on a global Islamic sovereign bond to raise more than US$1 bil, two people familiar with the matter said.
Marketing could start as early as next month, said one of the people, who didn’t want to be named as the matter is confidential. The Government is said to be arranging a 10-year dollar-denominated Islamic debt, or sukuk, in its second sovereign sale of syariah-compliant debt in a year, four people familiar with the matter told Bloomberg on May 20……………………………………….Full Article: Source

Iran’s budget law has permitted the government to issue 350 trillion rials (around $35 billion) in bonds to accelerate the implementation of development projects. The budget also allows the government to issue Sukuk bonds as well.
According to the budget law, affiliate companies of oil, energy, housing and urban development, and roads and transportations ministries can issue up to 27 trillion rials (some $27 billion) in bonds for financing their economically and technically justified projects, Hosseini added……………………………………….Full Article: Source

Abu Dhabi’s Aabar Investments raised 1.25 billion euros ($1.76 billion) from the sale of bonds exchangeable into the German automaker Daimler’s stock, after keen investor interest prompted it to increase the size of the deal.
Earlier on Tuesday, the sovereign fund said it would issue a five-year 750 million euro exchangeable bond. But during the day, the size of the deal was raised to 1.25 billion euros……………………………………….Full Article: Source

Axis, the Indonesian subsidiary of Saudi Telecom, has completed a $1.2 billion financing deal, the company said on Tuesday. The move, which comprises of three separate facilities and has a tenor of seven and a half years, is designed to fund Axis’ expansion into mobile broadband and improve its nationwide coverage.
“This deal is one of the largest Islamic finance deals in Asia and one of the largest international financing deals in East Asia,” said Ameen Al Shiddi, Saudi Telecom Company’s chief financial officer……………………………………….Full Article: Source

Axis, the Indonesian subsidiary of Saudi Telecom Company, said on Tuesday it has signed a $1.2bn financing deal with local and international financial institutions. The sharia compliant financing will help fund Axis’ expansion and growth strategies for the next five years, the company said in a statement.
The Indonesian telecom sector has witnessed sound growth over the past few years with Axis passing 11 million subscribers and serving more than 400 cities……………………………………….Full Article: Source

Kuwaiti Islamic firm Aayan Leasing and Investment Co on Monday signed a KD 205 million ($743.6 million) debt restructuring deal with creditors.
This amount is 62 percent of the Aayar’s total debts, it said in a statement. The firm, which was hit during the global financial crisis, has signed an agreement with nine creditors, seven of which are local, including Kuwait Finance House, Burgan Bank and Gulf Bank……………………………………….Full Article: Source

Bangladesh’s commercial banks following Shariah-based principles will continue their phenomenal growth as elsewhere in the world as the system deals with ‘real economy and real commodity’, the head of Islamic Development Bank (IDB) Group said.
In Bangladesh, there are now seven Islamic banks that provide full-fledged Shariah-based financial services through 622 branches. Besides, a number of conventional banks have set up branches to grab a pie of the market……………………………………….Full Article: Source

The Islamic Development Bank is likely to lend more money to Bangladesh to run newly installed oil-fired power plants as the country’s fuel imports may nearly double in the year to next June.
“We may raise the amount of loans for Bangladesh for the next fiscal year to import fuel oil,” Ahmad Mohammad Ali, president of the Jeddha-based Islamic Development Bank (IDB), told a news conference in Dhaka on Tuesday……………………………………….Full Article: Source

The government Tuesday signed a US$140 million loan agreement with the Islamic Development Bank (IDB) to finance the Padma Multipurpose Bridge Project. Finance Minister A M A Muhith and visiting IDB President Dr Ahmad Mohamed Ali signed the deal at the Ministry of Finance (MoF).
The length of the proposed Padma Bridge is 6.15 kilometres, and its total estimated cost is US$ 2.9 billion. After construction, the bridge would connect the country’s 19 south-western districts with the capital……………………………………….Full Article: Source

It has been reported that Islamic banks need to manage the risks in the financial system ahead of any possible crisis or downturn, business advisory firm PricewaterhouseCoopers (PwC) warned.
Mohammad Faiz Azmi, global leader of PwC’s Islamic finance team, said: “Risk management is an issue which cannot be ignored by any financial institution, but Islamic banks in particular need to establish risk management credibility as they aspire to move into the mainstream of the financial system.”………………………………………Full Article: Source

Doha Bank will not lay off any employees impacted by the Qatar central bank’s ban on conventional banks engaging in Islamic finance, its chief executive said on Monday. Raghavan Seetharaman said the bank will honor existing commitments from Islamic business undertaken before Qatar’s decision.
“We have committed billions of riyals that we have to go ahead and finance. There is no stopping on that,” Seetharaman told Reuters on the sidelines of a conference in Abu Dhabi……………………………………….Full Article: Source

Moody’s Investors Service has placed the E+ bank financial strength rating (BFSR), mapping to B1 on the long-term rating scale, of Dubai Bank (DB) on review with direction uncertain. Moody’s has also placed on review with direction uncertain DB’s Baa2/Prime-3 local and foreign-currency issuer ratings.
Moody’s has also placed on review with the same direction the provisional P(Baa2)/Prime-3 ratings of DB Sukuk Company Ltd a special purpose entity created to issue Trust Certificates to investors under $5 billion Trust Certificate Issuance Programme, launched on behalf of Dubai Bank……………………………………….Full Article: Source

The value of initial public offerings (IPOs) in the Middle East plunged 95% to their lowest level in five years during the first quarter, Ernst & Young said in a report yesterday.
Middle East firms raised only $21.7mn in the first-quarter of 2011, compared with $420.4mn in the year-ago period as regional unrest and underperforming stock markets weighed into investor appetite for fresh offerings, the report said……………………………………….Full Article: Source

Investors now favour syariah-compliant funds and investment products over conventional counterparts, due to its compatibility and returns viability for both Muslim and non-Muslims investors.
ASM Investment Services Bhd (ASM Investment), the managing arm of the nation’s first Bumiputera-owned unit trust manager Amanah Saham MARA Bhd (ASMB) believed that such interest became more evident due to a number of features that separated syariah funds from other conventional investment offerings……………………………………….Full Article: Source

Takaful Malaysia Bhd aims to recruit at least 1,900 sales personnel for its retail agency division to attain a RM20 million first-year cash contribution target for the financial year ending 2011.
Its retail agency general manager, Mohd Suhaimi Ahmad, pointed out in the first quarter of this year, the company had already achieved its total new agency leaders’ recruitment target and was optimistic of being able to reel in more new blood through various recruitment drives……………………………………….Full Article: Source

Interest in ethical investments and Islamic finance products has soared in recent years, but the implications for independent financial advisers are far from straightforward – Maryrose Fison investigates.
Demand for ethical ­investment funds has grown considerably over the past decade with a proliferation of funds now available from mainstream fund houses, as well as increasing social conscience among retail investors……………………………………….Full Article: Source

Saudi-based Islamic Development Bank, or IDB, said late Monday it issued a $750 million five-year, benchmark sukuk with a price guidance of 35 basis points over mid-swaps.
The lender didn’t specify the joint lead managers for the dollar-denominated sukuk, but one of the banks leading the sale told Dow Jones that BNP Paribas SA, Deutsche Bank AG, HSBC Holdings PLC and Standard Chartered Bank were joint bookrunners on the transaction. The issuance matures May 25, 2016, and has a profit rate of 2.35%……………………………………….Full Article: Source

As part of its resource mobilization plan, the Islamic Development Bank (IDB), rated Aaa/AAA/AAA (with stable outlook) by Moody’s, S&P and Fitch, recently conducted a roadshow in Asia, the Middle East and Europe.
At the end of the roadshow, its Vice President Finance Abdul Aziz Al-Hinai said: “We are delighted with the outcome of the deal, which achieved our main objectives for the transaction to build on the success of last year’s deal to establish another liquid benchmark and further position IDB in line with its supranational peer group……………………………………….Full Article: Source

Nakheel properties is planning to issue Dh4.8 billion sukuk (Islamic bonds) at the end of June to pay nearly 60 per cent of its debt as part of overall restructuring involving its separation from the state-owned conglomerate Dubai World (DW), its chairman has said.
Ali Rashid Lootah said the sukuk would be issued on time and there would be no delay as the company had taken measures to remove all obstacles for the settlement process……………………………………….Full Article: Source

Citi announced that it started offering special custody services to clients who are scheduled to receive Sukuks as part of Nakheel’s Creditor Settlement Programme.
“We are keen to hear from all Nakheel creditors who require a custody services for the Sukuks and we currently offer special assistance with custody account opening, documentation as well as competitive pricing,” said Richard Street, Head of Securities and Fund Services, Middle East. (Press Release)

Minister of Finance Mohammad Abu Hammour called recently for intensifying efforts among Islamic states to achieve high-level cooperation and set up joint plans to address current economic challenges.
Deputising for His Majesty King Abdullah, Abu Hammour inaugurated the International Conference on Investment in Islamic States which opened recently in Amman. He stressed that Islamic states should set up joint economic strategies and work on implementing all the agreements of the Organisation of the Islamic Conference (OIC) related to boosting economic and trade ties among member states……………………………………….Full Article: Source

Kazakhstan took a step closer to launching a $500mn-plus debut sovereign sukuk issue after the lower house of parliament passed amendments to the country’s Islamic finance laws, the finance minister has said.
Bolat Zhamishev told Reuters the government would consider the size and timing of the issue after the Senate clears the regulation on Islamic financing, a process that he expects to be complete within a month……………………………………….Full Article: Source

Doha Bank will not lay off any employees impacted by the Qatar central bank’s ban on conventional banks engaging in Islamic finance, its chief executive said on Monday.
Raghavan Seetharaman said the bank will honour existing commitments from Islamic business undertaken before Qatar’s decision……………………………………….Full Article: Source

HSBC Amanah, the Islamic unit of the global banking giant, is to cease operations in Qatar at the end of the year.
The move to close the bank’s Sharia-compliant operations in the country follows a circular from Qatar Central Bankordering conventional banks to sell their Islamic units, which HSBC had hoped to negotiate……………………………………….Full Article: Source

Islamic banks needed to manage the risks in the financial system ahead of any possible crisis or downturn, business advisory firm PricewaterhouseCoopers (PwC) warned at the weekend.
Mohammad Faiz Azmi, global leader of PwC’s Islamic finance team, said: “Risk management is an issue which cannot be ignored by any financial institution, but Islamic banks in particular need to establish risk management credibility as they aspire to move into the mainstream of the financial system.”………………………………………Full Article: Source

The National Bank for Development (NBD) in cooperation with Abu Dhabi Islamic Bank (ADIB) announced its financial results for Q1 of the current fiscal year. The financial indicators showed that the bank was not immune from the turmoil events that Egypt witnessed at the beginning of this year, which reflected negatively on the Egyptian banking sector as a whole.
The net Islamic finance portfolio amounted to EGP2,618m by the end of March 2011, compared to EGP2,302m by the end of December 2010, indicating a growth rate of 13.72%. (Press Release)