The Jeddah-based Islamic Development Bank (IDB) Group) is boosting its ties with Indonesia, the world’s most populous Muslim country, under its Member Country Partnership Strategy (MCPS), a new initiative launched by the IDB in 2010 to identify, target, allocate, implement and evaluate its financing more efficiently in member countries.
Thus far, already $3.5 billion have been allocated under this program to Indonesia for 2011-2014……………………………………….Full Article: Source

After the World Bank and Japan, the government will enter another loan agreement of $140 million with the Islamic Development Bank (IDB) today to finance the Padma Multipurpose Bridge Project.
The agreement will be signed at the finance ministry around 9:30am in presence of Finance Minister AMA Muhith and visiting IDB President Dr Ahmad Mohamed Ali, who arrived here yesterday. The two sides will sign another $14.84m deal to implement a water supply and sanitation project in cyclone-prone coastal areas……………………………………….Full Article: Source

Barwa Bank, Qatar’s newest Shariah compliant banking service provider, has entered into a financing agreement worth QR529m with National Petroleum Services Group (NPS) to refinance an existing syndication and support its expansion and working capital.
NPS group provides drilling and well services to customers in the oil, gas and petrochemical industries in the Middle East, North Africa, Far East, and Europe. It is the largest regionally-owned oil, gas and petrochemical services provider in the Middle East competing with western international operators in the same markets……………………………………….Full Article: Source

Abu Dhabi Islamic Bank (ADIB), a top-tier Islamic financial services group, has appointed Stuart Crocker as the Head of Private Banking and Wealth Management. Stuart brings with him over 25 years of experience in the financial services and banking industry.
For the four years prior to joining ADIB, Stuart was Chief Executive Officer of HSBC Private Bank in the UAE and Oman. From 2005 to 2007, he was with HSBC Private Bank in Geneva, Switzerland as a Member of General Management heading client segmentation……………………………………….Full Article: Source

Kuwaiti Islamic firm Aayan Leasing and Investment Co on Monday signed a KD205m ($743.6m) 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

Amana Takaful has announced the launch of 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 a Takaful (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. The appetite for investment by the public and private entities has increased. ………………………………………Full Article: Source

As a major global professional services firm, Deloitte has been actively engaged in Islamic finance for a decade.
Over the years, Deloitte has assisted clients in setting up Islamic finance operations, obtaining Sharia-compliant funding, advising on Sharia-compliant product structures and their tax implications, as well as market entry and operational strategies……………………………………….Full Article: Source

Islamic finance has gained significant global exposure over the past decade and has evolved from an industry with a limited geographic reach to one that is now prevalent across key Islamic markets in the Middle East and Asia Pacific.
Total global Islamic assets have witnessed phenomenal growth from $137 billion (Dh503.2 billion) in 1996 to $895 billion in 2010. Assuming the current trajectory, total industry assets are likely to surpass $1 trillion by 2012……………………………………….Full Article: Source

An estimated 450 industry leaders will converge in Singapore to discuss the outlook and opportunities for Islamic finance in Asia at the 2nd Annual World Islamic Banking Conference on June 8 and 9.
There are over 430 Islamic banks and financial institutions operating in more than 75 countries, and around 191 conventional banks that have Islamic banking windows. The strong growth showcased by established centers of Islamic finance in the Middle East and Asia further reinforced its growing globalization……………………………………….Full Article: Source

Islamic finance has gained significant global exposure over the past decade and has evolved from an industry with a limited geographic reach to one that is now prevalent across key Islamic markets in the Middle East and Asia Pacific. Total global Islamic assets have witnessed phenomenal growth from $137 billion (Dh503.2 billion) in 1996 to $895 billion in 2010.
Assuming the current trajectory, total industry assets are likely to surpass $1 trillion by 2012……………………………………….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.
“We are looking to issue Islamic bonds in order to fix a benchmark, but the prospects for this will depend on the market,” Zhamishev said. “We are not going to rush.”………………………………………Full Article: Source

Minister of Finance Mohammad Abu Hammour on Saturday called 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 yesterday in Amman……………………………………….Full Article: Source

The talk is big, but are potential sukuk originators walking the walk?
Depending on who you speak to, the picture is mixed, marked on the other hand by the “irrational” exuberance and ambition of potential issuers, many of whom do not get near to an offering, and on the other hand those who are skeptical and indifferent based on an erroneous belief that sukuk origination is always more expensive than conventional bonds and is further complicated by the Shariah compliance requirement……………………………………….Full Article: Source

Citi is 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.
“Investors will benefit from the local expertise and the globally-consistent services of Citi’s dedicated DCC experts; a dedicated team of specialists has been allocated to guide customers through the entire process.”………………………………………Full Article: Source

Kuwait Finance House Research Limited (KFHR) prepared a report on the Islamic Sukuk market. The report notes that the Sukuk market in month of April has been the lowest year to date. The following are the details of the report.
Sukuk issuance during the month of April declined to the lowest level since July 2010 with $4,862.6bn coming from the primary market. The month was dominated by sovereign issuers, particularly in Malaysia where the central bank contributed $3bn of the total sukuk for the month……………………………………….Full Article: Source

Bank Muamalat of Indonesia hopes to issue a global dollar denominated Sukuk worth between $50m and $100m before the end of the year.
Bank Muamalat is the second largest Islamic bank in Indonesia- as well as its oldest - and would use the funds to help implement its overseas expansion plans……………………………………….Full Article: Source

Islamic finance has been growing steadily on all fronts for two decades or more. Further opportunities for growth exist as standards and operations in the industry become more globalised. In particular, the demand for Sharia-compliant investment assets from conventional institutional investors.
The development of the Takaful market, which is under-penetrated. The further alignment of the global halal industry with Islamic finance and the ongoing development of Sharia-based liquidity management, risk management and hedging tools. ………………………………………Full Article: Source

Islamic Banking sector is currently handling about US$20 trillion with over 300 Islamic Banks in operations around the world.
Chairman of Islamic Bank Consultative Forum (IBCF) and Islami Bank Bangladesh Limited Abu Nasser M Abduz Zaher disclosed the figure while speaking at a press conference in the city Sunday……………………………………….Full Article: Source

Islamic Finance has been experiencing double digit growth globally and risk management has not been at the top of the agenda, but if Islamic banks are determined to play a greater role in the financial system they need to manage the risks involved.
With a quarter of the world’s population being Muslim, there is a growing desire by Muslims around the world to have their financial needs met with Shariah compliant solutions. Companies are also looking to diversify their investor base by seeking funding from Shariah-related sources. Islamic Finance in line with conventional finance is experiencing a return to growth post the financial crisis……………………………………….Full Article: Source

Oman has finally succumbed to the demand dynamics of Islamic banking, oft quoted even by central bankers and the World Bank Group, as the fastest growing component of the global financial system.
Earlier in May, Oman’s absolute ruler, Sultan Qaboos, issued a royal decree paving the way for the authorization of the country’s first standalone Islamic bank and for other interested banks to set up dedicated Islamic banking windows……………………………………….Full Article: Source

The Jeddah-based Islamic Development Bank (IDB) Group) is boosting its ties with Indonesia, the world’s most populous Muslim country, under its Member Country Partnership Strategy (MCPS), a new initiative launched by the IDB in 2010 to identify, target, allocate, implement and evaluate its financing more efficiently in member countries.
Thus far, already $3.5 billion have been allocated under this program to Indonesia for 2011-2014……………………………………….Full Article: Source

Mashreqbank’s new Islamic banking unit, poised to be launched in November, aims to win a five per cent share of the UAE’s fast-growing Islamic banking market in five years, its chief executive said.
Mubashar H. Khokhar told Gulf News the new Islamic bank has planned a string of new product launches, one every month, to win new customers especially from the under-served high net worth and mass affluent segments……………………………………….Full Article: Source

A major legal battle in the banking sector is on the way, no thanks to the new guideline on Non-Interest Financial Institutions (NIFI) by the Central Bank of Nigeria (CBN).
The guideline, which became operational on January 13, 2011, and signed by the Acting Director, Financial Policy and Regulation Department of the apex bank, Chris.O. Chukwu, introduced religion into Nigerian banking, contrary to the Banks and Other Financial Institutions Act 1991 (as amended)……………………………………….Full Article: Source

International Islamic (QIIB or Qatar International Islamic Bank) announced a bonanza in the form of a liberal lending product for those who transfer their salaries to the bank.
But the minimum monthly salary of a customer wanting to take advantage of the new scheme should be QR5,000. The new ‘lending product’ is available to both citizens and expatriates, the QIIB said……………………………………….Full Article: Source

Bank of London and The Middle East (BLME) has launched its Light Industrial Building Fund (LIBF), a Shari’ah-compliant UK real estate fund which invests in sustainable property assets.
The LIBF, which targets institutional investors, invests in carefully selected light industrial buildings across the UK. The target cash on cash yield is eight per cent to 10 per cent per annum, with quarterly cash dividends paid to investors. Target IRR (Internal Rate of Return) is 15 per cent for the five-year duration of this closed-ended fund……………………………………….Full Article: Source

Standard & Poor’s Ratings Services has assigned a preliminary ‘BBB+’ issue rating on Sukuk Trust Certificates to be issued 27 May 2011, by SIB Sukuk Company II Ltd., a special purpose company (SPC) with Sharjah Islamic Bank (SIB; BBB+/Stable/A-2) as the obligor and managing agent
The ‘BBB+’ rating on the sukuk trust certificates is based on the ‘BBB+’ long-term counterparty credit rating on SIB.
The rating on the five-year $400 million trust certificates reflects the irrevocable undertaking to purchase the assets held by the issuer at the redemption date of the Sukuk at a predefined price……………………………………….Full Article: Source

Abu Dhabi’s state-owned fund Mubadala now holds a majority 26.1 per cent stake in district cooling firm Tabreed after completion of a tender offer of shares to repay an Islamic bond due this month, Tabreed said on Sunday.
Mubadala and its wholly-owned subsidiary General investments previously held a 16.79 per cent stake in Tabreed, a company spokesman said……………………………………….Full Article: Source

Combining social principles with the power to provide financial assistance, Islamic microfinance has huge, untapped potential. Islamic finance is becoming one of the most rapidly growing segments of the global finance industry. There is growing interest from financial institutions in designing Islamic or “sharia-compliant” products and services to attract Muslim investors.
These products are designed to conform with Islamic financing principles that include linking transactions to tangible economic activities, excluding financial speculation and excessive uncertainty, and funding only socially productive activities, in addition to the well-known stipulation against charging or paying interest………………………………………Full Article: Source

When Dr. Sri Mulyani Indrawati, managing director of the World Bank claimed that “Islamic banking was a priority” for the bank, it showed that the industry is starting to gain credibility even at the top table of global banking. However it is a big ask for the industry to take the leap from what is fringe to mainstream.
Fundamentally, many Islamic institutions are prudently run - whether this is a direct result of Shari’ah compliance and its inbuilt prohibition on some of the more high-octane elements of casino capitalism, or whether Islamic bankers are a cut above is a hugely moot point………………………………………Full Article: Source

The concept of Islamic Finance is currently expanding globally at an astronomical rate and gaining grounds in various Islamic and non-Islamic markets alike. This is evident in a recent forecast by Moody’s rating agency, which estimates that the current size of the Islamic Banking Industry at the global level is $1 trillion, and could grow to $5 trillion over time.
Nigeria is disposed to this global trend, as relevant regulatory frameworks have in recent times been put in place to enhance the effective growth of the concept of Islamic Finance in the country……………………………………….Full Article: Source

The European Union is emerging as a major center of Islamic finance, based on Islamic Shariah law, and which critics say amounts to “financial Jihad” by Islamists intent on Islamifying the West.
The spectacular growth prospects for the Islamic financial services industry in many European countries is being fuelled by Muslim mass immigration; despite a difficult economic climate on the continent, Islamic banking is growing faster in Britain, France and Germany than it is in many Islamic countries in the Middle East and Asia……………………………………….Full Article: Source

The Grand Duchy is now making a play to become Europe’s leader in Islamic finance and has already assembled an impressive set of tools in its box, as Daud Vicary Abdullah, global leader for Islamic finance for Deloitte said: “I think that Luxembourg is going to be an important Islamic finance centre because there is a commitment from the regulators to become involved in Islamic finance and a close partnership between the public and private sector and whatever Luxembourg has turned its hand to in the past has always been successful.”
The Grand Duchy recently nosed ahead of London in terms of European domicile for Islamic funds, but this is hardly surprising as the country has a history of innovation and ‘firsts’ for Islamic finance……………………………………….Full Article: Source

Kazakhstan is considering issuing sovereign sukuk worth at least $500 million, Finance Minister Bolat Zhamishev said on Thursday.
“We are looking to issue Islamic bonds in order to fix a benchmark, but the prospects for this will depend on the market,” Zhamishev said on the sidelines of an economic conference in Astana……………………………………….Full Article: Source

An oversubscribed bond offering from a small Emirati bank shows that although the Gulf bond market remains subdued, there’s still demand out there, particularly for sharia-compliant investments.
Sharjah Islamic Bank had announced in March that it would seek capital to fund an expansion of the business. Initial reports suggested demand for the issue was strong……………………………………….Full Article: Source

Malaysia is said to be planning a 10- year dollar-denominated Islamic bond, its second sovereign sale of Shariah-compliant debt in a year, four people familiar with the matter said.
Three local investment banks submitted pitches proposing a size of $500 million to $1.7 billion, said the people who couldn’t be named as the matter is confidential. The deadline for the request for proposals from bankers has closed, they said……………………………………….Full Article: Source

Speculation Indonesia’s credit rating will be raised to investment grade may drive demand for the government’s second sale of global Islamic bonds.
“I’d be interested because there’s the possibility of an investment-grade rating,” Mohd Noor Hj A Rahman, chief executive officer at Kuala Lumpur-based OSK-UOB Islamic Fund Management Bhd., said in an interview May 12. “Indonesia is a big market with potential for economic growth.”………………………………………Full Article: Source

Bank Muamalat of Indonesia hopes to issue a global dollar denominated Sukuk worth between $50m and $100m before the end of the year.
Bank Muamalat is the second largest Islamic bank in Indonesia- as well as its oldest - and would use the funds to help implement its overseas expansion plans……………………………………….Full Article: Source

Bahrain’s Al Baraka Bank expects to sell $300 million worth of Islamic bonds by September as it looks to secure long-term financing to fund its expansion plans, its chief executive said.
Previous plans to issue Islamic bonds, or sukuk, were thwarted by the onset of the financial crisis and, more recently, the regional unrest, said Adnan Ahmed Yousif in an interview. The Islamic lender had previously announced plans for a $500m sukuk programme but had shelved that, he said……………………………………….Full Article: Source

Qatar Islamic Bank’s planned sale of Islamic bonds may benefit from the government’s backing of local banks ahead of the World Cup in 2022, helping keep yields near the sovereign benchmark rate.
QIB, the country’s largest Shariah-compliant bank, will sell sukuk maturing in more than five years to repay debt, acting chief executive officer Ahmad Meshari said on May 12……………………………………….Full Article: Source

Islamic banking takes a step closer to reality in Oman with approval from the central bank to establish Bank Nizwa to provide Shari’ah-compliant banking services inside the Sultanate.
A statement from the Central Bank of Oman (CBO) reported the approval for Bank Nizwa and went on to say that the CBO ‘will consider any application to open windows for Islamic banking by any bank operating in the Sultanate wishing to provide such services. This will be governed by the regulations stipulated in the Banking Law, as well as, the related CBO bylaws’……………………………………….Full Article: Source

Ebrahim Fayez Al Shamsi has stepped down as Chief Executive Officer of Emirates Islamic Bank, a statement to the Dubai Financial Market (DFM) said; no reason for his resignation was given.
Deputy Chief Executive Officer Abdulla Showaiter, who also acts as General Manager Corporate and Investment Banking has been appointed as Acting CEO by Emirates Islamic Bank……………………………………….Full Article: Source

The global financial crisis, which has troubled almost all nations around the world for the past two years, has helped Islamic participation banking gain more prestige worldwide, the top executive of Bank Asya, Turkey’s leading participation bank, said on Thursday.
Speaking at a Cihan TV Network program broadcast on Thursday morning, the bank’s general manager, Abdullah Çelik, noted that this increasing prestige has also translated into growing public interest in participation banks……………………………………….Full Article: Source

Emaar Properties said it will write off its investment in Dubai Bank, valued at about 172 million dirhams ($46.8 million), a move expected to further erode the company’s profits in the short-term, analysts said.
The decision comes after the Dubai government announced on Monday that it would take over the troubled Islamic lender, thereby completely diluting the holdings of Dubai Bank’s current shareholders……………………………………….Full Article: Source

Mohammed Abdullah, CEO of Sharjah Islamic Bank has announced that the bank will issue a global dollar-denominated Sukuk that will be listed on the London Stock Exchange.
The size of the issue will be decided “subject to market conditions” and market response after the investor road show which is taking place in the Middle East, Asia and Europe. HSBC and Standard Chartered have been appointed joint lead managers……………………………………….Full Article: Source

The Abu Dhabi National Islamic Finance (ADNIF), the Islamic finance and banking arm of NBAD, announced its sponsorship of 2011 ADNIF Grand Prix Blitz Chess Tournament, organised by Abu Dhabi Chess and Culture Club (ADCC).
2011 Abu Dhabi National Islamic Finance Grand Prix Blitz Chess Tournament begins on 29 May(Press Release)

Local news sources have claimed that the Malaysian Takaful market is on the cusp of a wave of M&As. The Malaysian Star quoted Ernst & Young’s Brandon Bruce Sta Maria, who said the smaller Islamic insurers will continue to be targets for foreign entities keen to enter Malaysia’s booming Takaful industry.
Since changes in January to ownership rules, allowing foreign firms to take up to a 70% stake in Malaysian insurers, large foreign insurers, including Axa and Fairfax, Zurich and Alliance have all staked claims in Malaysian insurance and Takaful firms……………………………………….Full Article: Source

ING Public Takaful Ehsan Bhd on Thursday launched its innovative investment-linked takaful plan, Takaful Salam. The company’s Chief Executive Officer, Saiful Yazan Ahmad said Takaful Salam aims to help ease the financial burden of those suffering illnesses.
“Due to rising medical costs, people afflicted by any critical illness, often find if difficult to bear the expenses for treatment if they do not have adequate protection……………………………………….Full Article: Source

Though Islamic finance has achieved significant growth in the last few years, it still represents only about one per cent of the total global banking assets.
As Islamic finance further expands its global scale, the Islamic financial markets still remain fragmented and insulated with little cross-border activities and that will be one of the key issues discussed at the World Islamic Funds and Financial Markets Conference, which will be organised in Bahrain on September 26 and 27……………………………………….Full Article: Source

Deep divisions over the future of Islam in Australia have emerged after calls for the adoption of sharia law in submissions to a federal parliamentary inquiry into multiculturalism.
Citing existing Government support for Islamic banking and laws governing halal meat - and backing from the Archbishop of Canterbury - Muslim organisations have urged recognition of the religious law to boost integration……………………………………….Full Article: Source

Bahrain’s Al Baraka Bank expects to sell $300 million worth of Islamic bonds by September as it looks to secure long-term financing to fund its expansion plans, its chief executive said on Wednesday.
Previous plans to issue Islamic bonds, or sukuk, were thwarted by the onset of the financial crisis and, more recently, the regional unrest, said Adnan Ahmed Yousif in an interview with Reuters……………………………………….Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed