Bank of London and The Middle East (BLME) have launched the BLME High Yield Fund, which targets institutional and high net worth investors in Gulf countries seeking to generate higher returns than those targeted by BLME’s US Dollar Income Fund.
The BLME High Yield Fund targets a net return of three-month US$ Libor (London Interbank Offered Rate) in addition to a five per cent return per annum by investing up to 85 per cent in Sukuk (often referred to as Islamic bonds) and 15 per cent in Ijarah (a lease contract on an asset)………………………………………..Full Article: Source

Portfolio manager Taurus Asset Management said it would provide customers advisory services for Shariah-compliant investments.
Taurus Asset Management under its portfolio management services (PMS) umbrella, in association with Multigain Shariah Investment Services, has launched its Shariah compliant PMS strategy branded as ‘TM Shariah Strategy’, Taurus said in a statement………………………………………..Full Article: Source

Takaful companies in Malaysia have been advancing rapidly in the last five years, recording a five-year compounded annual growth rate of 16 per cent for the assets of takaful funds, doubling that of conventional insurers.
According to a statement released by RAM Ratings, the takaful industry’s assets expanded 17 per cent to RM14.7 billion last year, accounting for 8.7 per cent of the combined asset base of insurance and takaful industries………………………………………..Full Article: Source

RAM Rating Services Bhd expects takaful fund assets to continue post double-digit growth this year driven by growing consumer awareness.
Its head of financial institution ratings, Promod Dass, said the takaful industry, a rapidly expanding sector, was expected to see an increasing acceptance of its products along with the increase in the population’s wealth and greater understanding of such offerings………………………………………..Full Article: Source

The Federal Board of Taxation has received submissions following last year’s release of a Discussion Paper entitled “Review of the Taxation Treatment of Islamic Finance”.
Various stakeholders made contributions including: Australian law firms; accountancy firms; academics; individuals; industry bodies (ie the Financial Services Council, CPA Australia and a joint submission from the Tax Institute of Australia and the AFMA); and the Department of NSW Treasury and Department of Industry & Investment NSW………………………………………..Full Article: Source

Lots of studies conducted by major stakeholders showed Islamic microfinance as a huge untapped market. The figures suggested to jump into any new pattern of microfinance. The pitfalls of conventional microfinance also pushed the serious players of the sector towards Shariah compliant model along with a new commence of SME.
The incentive for MFIs to graduate into Microfinance Banks ( The department of Microfinance, State Bank of Pakistan is working smartly on this move ) and the decisions of G20 policy makers proved that the expectations from conventional microfinance could not bring-in the targeted results and devastated their confidence upon the sector……………………………………….Full Article: Source

Islamic banks are likely to boost their Dh15 billion (US$4bn) of investments in Central Bank certificates of deposit after the launch of a new Sharia-compliant repurchase facility, said a senior bank official.
The facility, which is aimed at developing liquidity management in the Islamic banking system, allows banks to borrow money in accordance with Sharia principles. In exchange, the facility accepts the Central Bank’s Islamic certificates of deposit as collateral………………………………………..Full Article: Source

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Bank of London and the Middle East (BLME) has announced the launch of a Sharia-compliant fund which targets institutional and high net-worth investors in Gulf countries.
The BLME High Yield Fund targets a net return of three-month US dollar Libor (London Interbank Offered Rate) in addition to a five per cent return p.a. by investing 85 per cent in sukuk and 15 per cent in Ijara, said a statement from the London bank………………………………………..Full Article: Source

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Even though a draft framework for non-interest banking was issued in March 2009 by the Central Bank of Nigeria (CBN), its position on Islamic banking did not become much of an issue until a few months ago when the final guidelines were released.
According to the acting director of banking supervision at the CBN, D.A. Eke, “The objective of the framework is to provide minimum standards for the operation of non-interest banking in Nigeria while serving as an exposure for comments, suggestions and/or inputs by stakeholders.”……………………………………….Full Article: Source

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The plan by the Central Bank of Nigeria (CBN) for Islamic banking in the country notwithstanding the opposition in some quarters has taken a new dimension with the pronouncement of N10 billion capital base requirement for any Islamic bank applying for licence to operate nationwide even as it further announced N5 billion capital requirement for an Islamic banking licence for regional operations.
The CBN explained that it has the power to license Islamic banks in the country as stated in the CBN Act and Bank and Other Financial Institutions (BOFIA), duly passed into law by the National Assembly………………………………………..Full Article: Source

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The governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, has said that those opposed to the introduction of Islamic banking in Nigeria are not conversant with current happenings in the world as the system is being practised in the United Kingdom and other countries of the world dominated by Christians.
He spoke on the BBC Hausa service monitored in Kaduna at the weekened, even as the Kaduna State chapter of the Pentecostal Fellowship of Nigeria (PFN) expressed concern over moves to introduce Islamic banking in the country………………………………………..Full Article: Source

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Recently a group of people who go under the banner of ‘Concerned Citizens of Nigeria,’ took a full page paid advert in Daily Sun where it lamented the gradual but steady Islamization of the Central Bank of Nigeria – the CBN.
According to the advert, which was signed by no one, the present leadership of the bank led by Mallam Sanusi Lamido Sanusi has surreptitiously (they did not use the exact word) been implementing policies at the apex bank that run contrary to the Banking and Other Financial Institutions Act (BOFIA) of 1991………………………………………..Full Article: Source

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Bahrain’s Elaf Bank said Sunday it had been granted a license to operate in Malaysia as the closely-held lender seeks to tap into the Asian country’s growing Islamic finance sector.
The licence marks Elaf’s first international branch office and the bank plans to use Kuala Lumpur as its regional hub for Southeast Asia operations………………………………………..Full Article: Source

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Dubai-based Dar Al Sharia Legal & Financial Consultancy has signed a collaboration agreement with the German Institute of Islamic Banking and Finance (IFIBAF).
The relationship between these two organisations originates from a highly successful Islamic Finance Trade Mission to Europe conducted by Dubai Exports, an agency of the DubaiDepartment of Economic Development………………………………………..Full Article: Source

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Sheikh Ahmed bin Saeed Al Maktoum, the uncle of Dubai’s ruler, was appointed the chairman of Emirates NBD PJSC (EMIRATES) as the government made changes to the board of the United Arab Emirates’ biggest bank.
Sheikh Ahmed, who is also chairman of Emirates airline, Dubai World and Dubai’s Supreme Fiscal Committee, replaced Ahmed Humaid Al Tayer, state-run Emirates News Agency reported on its website. Hisham Abdullah Al Kasem was named deputy chairman, while three other board members were also replaced………………………………………..Full Article: Source

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The central bank will allow an Islamic money market to manage liquidity of the Shariah-based Islamic banks properly, a top official of the central bank told the FE Saturday. “The issue was discussed at a meeting with chief executive officers and managing directors of seven Islamic banks at the central bank on June 20 last,” he added.
The official also said Malaysia has already allowed the Islamic money market to manage fund of the Islamic banks………………………………………..Full Article: Source

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Sarawak Energy Bhd (Sarawak Energy) has issued sukuk (Islamic bonds) totalling RM3 billion, the first of SEB’s RM15 billion ‘Sukuk Musyarakah Programme’.
With a size of RM500 million, the first tranche carries a maturity of five years with a profit rate of 4.4 per cent per annum, while the second tranche of RM700 million is at 4.7 per cent per annum for seven years………………………………………..Full Article: Source

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Standard & Poor’s Ratings Services (S&P) has assigned its ‘A-’ long-term foreign currency preliminary issue rating to the proposed issue of benchmark-sized Wakala Global Sukuk trust certificates
Wakala Global Sukuk Bhd. will issue the certificates.
This trustee is a special purpose vehicle set up and wholly owned by the federal government of Malaysia (foreign currency A-/Stable/A-2, local currency A+/Stable/A-1; axAAA/axA-1+)………………………………………..Full Article: Source

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The global Islamic capital market is once again focused on Malaysia with the recent launch by Bank Negara Malaysia, the central bank, of its new Islamic monetary management instrument, the Bank Negara Monetary Notes-Istithmar (BNMN-Istithmar).
At the same time, according to Islamic banking market sources, the Malaysian government has appointed the local Maybank Group and the CIMB Group, together with Citigroup and HSBC, to lead arrange a third global sovereign US dollar sukuk offering………………………………………..Full Article: Source

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The takaful industry, Islamic equivalent for insurance, is set to be on track for quantum leap performance in the next phase of growth and development, delegates at a major conference in Kuala Lumpur were told.
“The success of the industry lies in its ability to collectively position itself strategically to meet the needs of the economy and the ability to be competitive and innovative,” Bank Negara Malaysia deputy director Azleena Idris said in her opening speech at the second annual World Takaful Conference: Family Takaful Summit Malaysia………………………………………..Full Article: Source

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The Malaysian Takaful sector can look forward to boom times, according to Takaful Ikhlas’s executive VP, Fadzlullah Abdullah.
Malaysia’s national news agency, Bernama, reported Abdullah’s comments at the launch of the Takaful Agents Convention by Malaysia’s deputy finance minister, Awang Adek Hussin in Kuala Lumpur last week………………………………………..Full Article: Source

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SABB Takaful Company, a Saudi joint stock company and an associate of The Saudi British Bank (SABB) and its global partner HSBC Group, hosted at its office in Riyadh David Fried, group head of insurance, HSBC Holdings, along with Bruce Howe, CEO, HSBC Insurance, UK, Europe and Middle East.
The visit to SABB Takaful is part of a regional tour by the HSBC Insurance executives to meet with government and regulatory officials and to visit major HSBC Insurance entities and distributors in Saudi Arabia and UAE to review business performance, future plans and strategies………………………………………..Full Article: Source

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Saudi Arabia’s Sambacapital brought a new Shari’ah compliant equity fund to market last week, the Al-Ataa Saudi Equity Fund.
The fund will be a Shari’ah-compliant, open-ended, Saudi riyal denominated equity fund that is benchmarked against the S&P Saudi Arabia Shariah (Saudi riyal) Index. Sambacapital is the asset management division of Riyadh-based Samba Financial Group………………………………………..Full Article: Source

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Dedicated trading platform for Shari’ah-compliant securities is free of additional charges and requires no paperwork
Mubasher Trade, a subsidiary of Mubasher Financial Services (MFS), the Middle East’s top online trading platform, has announced the Egypt launch of Mubasher Islami, a new division that specialises in a full range of Shari’ah-compliant services, including a dedicated trading platform for Shari’ah-compliant securities. Mubasher Islami further expands Mubasher’s comprehensive range of financial services for all investors, while consolidating the company’s stronghold in Egypt’s stock and financial markets………………………………………..Full Article: Source

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Investment House Qatar reports the Al-Beit Al-Mali Fund, managed by Global Investment House, has recorded 5.3 per cent return during the first five months of 2011, outperforming its benchmark by 4.4 per cent and bringing total returns since inception to 50.4 per cent, a solid 44.3 per cent above its benchmark
The Al-Beit Al-Mali Fund was launched in September 2006 by Investment House and aims to achieve medium to long-term capital appreciation by investing in Shari’ah-compliant companies listed on the Qatar Exchange………………………………………..Full Article: Source

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KPMG is pleased to announce that Neil D Miller has joined as global head of Islamic finance. Neil joins from the law firm Norton Rose where he led their global Islamic finance practice.
Neil has specialised in Islamic finance since he moved to Bahrain in 1995. He then returned to London in 2000 to set up Norton Rose’s Islamic finance group which went on to win numerous industry awards under his leadership, with Neil becoming a highly regarded industry figure internationally………………………………………..Full Article: Source

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A state Islamic organisation is offering interest-free loans to low-income Muslims who otherwise can’t borrow money because of religious reasons. Charging or paying interest for loans is banned under Islam, but many Muslims are taking advantage of a growing Islamic finance industry.
Dandenong postgraduate student Ali Alyassiry, who has two children, borrowed $1000 under a new scheme offered by the Islamic Council of Victoria………………………………………..Full Article: Source

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Sharia plays an important role in UAE law, but misinterpretations about how it is applied are common. As a result, residents who come to me seeking legal advice are often unclear of the role that Sharia plays in UAE law.
To understand the intersection of Islamic and non-Islamic law, it helps to first know what the founders intended. The UAE constitution states: “Islam is the official religion of the Union and … Islamic Sharia is a main source of its legislation”………………………………………..Full Article: Source

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Delegates from more than 60 countries are converging on Jeddah over the next few days for the 36th annual meeting of the board of governors of the Islamic Development Bank (IDB) Group, which takes place on June 29-30.
Never mind the global financial crisis and its impact, which is a given challenge for the entire international community. Perhaps it is a poignant reminder that this annual meeting should have been convening on the southern flank of the Arabian Peninsula in Sanaa in Yemen rather than in the heart of Hijaz in Saudi Arabia………………………………………..Full Article: Source

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Nakheel trade creditors may be unwilling to sell the planned sukuk at a discount in the secondary market as they are being flooded with offers, industry sources claim.
Mohammed Qasim Al Ali, Chief Executive Officer, National Bonds Corporation, confirmed to Emirates 24/7 that they were in talks with a trade creditor to buy the planned sukuk, but haven’t been able to close the deal due to the “many offers” that the creditors is supposedly evaluating………………………………………..Full Article: Source

State Bank of Pakistan (SBP) Deputy Governor Yaseen Anwar has said there is a dearth of Shariah-compliant hedging products for mitigating risks arising out of genuine business transactions which put Islamic banking institutions (IBIs) at a disadvantage compared to their conventional counterparts.
Inaugurating a workshop on ‘Hedging in Islamic finance and master hedging agreement’, organised by International Islamic Financial Market (IIFM) in collaboration with SBP, Anwar stressed the need for developing a robust risk management infrastructure in the Islamic banking industry which would enable both Islamic banks and their clients to mitigate genuine business risks………………………………………..Full Article: Source

With the increased profile of Islamic banking globally, the GCC Islamic banking community is well positioned to build on a leadership role versus other potential competing centers such as Malaysia, Iran or even the UK.
GCC countries collectively now account for more Shariah-compliant financial assets globally than any other region or country. GCC Islamic banks have also demonstrated their ability to be more innovative in terms of product development and provision of services as they compete for business with conventional banks………………………………………..Full Article: Source

Islamic banks in Malaysia enjoy a bright future as they are able to compete and have the resilience to survive in the country’s open and competitive economy, the Dewan Rakyat was told yesterday.
Deputy Minister of Finance Datuk Dr Awang Adek Hussin said 21 Islamic banks are operating in Malaysia, with RM351 billion in combined total assets………………………………………..Full Article: Source

The 36th Annual Meeting of the Board of Governors of the Islamic Development Bank Group will take place in Jeddah, Saudi Arabia from 26 to 30 June. IDB Group president Ahmad Mohamed Ali has stated that the cumulative funding by the IDB Group by December 2010 exceeded $70 billion.
“In 2010 Group’s funding reached $7 billion covering 363 operations. The Bank allocated 40% of its funding through interest-free loans and affordable financing for programs and initiatives; 58.8% to businesses; and 1.2% for scholarships and grants to Muslim communities in non-member countries to support health and education programs among global Muslim communities,” he said………………………………………..Full Article: Source

Standard & Poor’s Ratings Services today assigned its ‘A-’ long-term foreign currency preliminary issue rating to the proposed issue of benchmark-sized Wakala Global Sukuk trust certificates. Wakala Global Sukuk Bhd. will issue the certificates.
This trustee is a special purpose vehicle set up and wholly owned by the federal government of Malaysia (foreign currency A-/Stable/A-2, local currency A+/Stable/A-1; axAAA/axA-1+). (Press Release)

Moody’s Investors Service has assigned a provisional foreign currency rating of A3 to the securities under Malaysia’s proposed U.S. dollar-denominated sovereign sukuk.
In Moody’s opinion, the payment obligations represented by the securities available on offer are pari passu with other senior, unsecured debt issuances of the Government of Malaysia and thus justify a rating at the same level. Moody’s expects to remove the provisional status of the rating upon the closing of the proposed issuance and a review of its final terms. (Press Release)

Nakheel has delayed offering an Islamic bond until July as part of its $10.9bn debt restructuring plan, Reuters has reported, citing two sources. The developer had previously said it expected its debt restructuring process, including the sukuk issue, to be completed by the end of the first half of 2011.
“The end of June was always an ambitious goal. This is a very complicated transaction, involving lots of individual negotiations and dealings with multiple trade creditors. The sukuk will be issued in July,” one of the sources said………………………………………..Full Article: Source

The takaful industry in Bahrain is booming as people are favouring Sharia-compliant insurance. Takaful total contributions grew by 16.5 per cent to reach BD13.4 million ($35.6m) in the first quarter of the year compared with BD11.5m for the same period last year, according to the Central Bank of Bahrain (CBB).
But traditional insurance still took the largest share of the market, down slightly at BD43.3m in the first quarter compared to BD44.1m last time………………………………………..Full Article: Source

Etiqa Takaful Berhad aims for 10 per cent increase in the Islamic insurance market share next year, says Chief Executive Officer Shahril Azuar Jimin. He said Etiqa Takaful contributed 45 per cent market share of the nine takaful companies in Malaysia last year.
Currently, the Malaysian Takaful market is the world’s second largest, with an estimated 26 per cent of the global takaful market share………………………………………..Full Article: Source

Family Takaful Summit Malaysia (WTC FTS 2011) which began on Thursday in Hotel Istana, Kuala Lumpur, witnessed a grand opening with more than 500 Takaful operators and agents engaging in discussions that assessed the growth potential for Takaful in Malaysia and identified unique opportunities for players in the Family Takaful market.
The event held under the strategic partnership with Etiqa Takaful Berhad, highlighted the importance of building dynamic partnerships between agents and operators for the success of Family Takaful in Malaysia. (Press Release)

Allianz Malaysia Bhd expects “some results” from the talks to acquire a stake in Takaful Ikhlas Sdn Bhd from MNRB Holdings Bhd next month. “The discussion is still ongoing and we take it seriously to make the right decision,” Allianz Malaysia Chief Executive Officer Jens Reisch told reporters after the company’s annual general meeting here.
MNRB had obtained Bank Negara Malaysia’s approval in December last year to commence negotiations with Allianz Malaysia on its proposed divestment of stakes in Takaful Ikhlas………………………………………..Full Article: Source

Lahore Stock Exchange (LSE) has approved the application for formal listing and quotation of the units of MCB Islamic Income Fund, an open-end fund managed by MCB Asset Management Company Limited.
The Fund will be quoted under open-end fund sector of the Ready Board Quotation of the Exchange w.e.f. June 23, 2011. The investment objective of the MCB-Islamic Income Fund is to generate superior risk-adjusted returns by investing in short, medium and long-term Shariah compliant fixed income instruments………………………………………..Full Article: Source

Dubai Exports, an agency of the Department of Economic Development, is planning to hold trade missions in Indonesia, Africa and Central Asia to help local Islamic finance companies seek global recognition and business opportunities, agency’s CEO said.
“We hold the trade missions to support and showcase capabilities of our Islamic financial companies. We plan to hold similar missions in Indonesia, Africa, Central Asia,” Saed Al Awadi, Chief Executive Officer, Dubai Exports, said………………………………………..Full Article: Source

There is need for the development of a robust Shariah compliant risk management infrastructure in Pakistan’s Islamic banking industry. It will enable both the Islamic banks and their clients to mitigate genuine business risks, said Yaseen Anwar Deputy Governor, State Bank of Pakistan (SBP).
Inaugurating a workshop on ‘Hedging in Islamic Finance and Master Hedging Agreement,’ organised by International Islamic Financial Market (IIFM) in collaboration with the SBP………………………………………..Full Article: Source

The Bahrain Institute of Banking and Finance (BIBF) has held the first of its Distinguished Lecture Series with a speech on Islamic finance. Harvard Law School Islamic legal studies programme founder and director Professor Frank Vogel spoke on financial, legal and regulatory issues facing the industry in the wake of the financial crisis.
The event at the Gulf Hotel, which is supported by the Central Bank of Bahrain (CBB) and the US Embassy, was opened by CBB banking supervision director Khalid Hamad………………………………………..Full Article: Source

Malaysia will begin meeting investors to market its $2 billion global sukuk offering, sources with direct knowledge of the plan said.
In its second global sukuk sale in as many years, Malaysia aims to sell two tranches of Islamic bonds with maturities of five and 10 years, one of the sources said……………………………………….Full Article: Source

The Malaysian government aims to sell US$2 billion of dollar-denominated Islamic bonds, Tengku Sariffuddin Tengku Ahmad, the prime minister’s press secretary said in a telephone interview.
The bonds will be sold in a mix of five- and 10-year maturities through a Wakalah structure with the size of each portion will depend on demand, Tengku Sariffuddin said. HSBC Amanah Malaysia Bhd, Citigroup Inc, CIMB Investment Bank Bhd and Maybank Investment Bank Bhd were hired to manage the offering, he said……………………………………….Full Article: Source

Standard & Poor’s Ratings Service has assigned a “A-” long-term foreign currency preliminary issue rating for the proposed issue of Wakala Global Sukuk trust certificates.
In a statement today, the credit ratings provider said the preliminary rating was based on the draft offering memorandum, dated June 15, 2011, and various agreements and undertakings, and a declaration of trust dated June 13, 2011……………………………………….Full Article: Source

Malaysia’s RAM Ratings views the recent news on the receivership status of the owner of the petroleum hub project at Tanjung Bin, Johor (APH project), to have no rating impact on Muhibbah Engineering (M) Bhd’s (Muhibbah or the Group) RM130 million Islamic Bonds. Muhibbah is one of the contractors for the APH project.
Muhibbah’s Islamic Bonds carry a AAA(s) rating with a stable outlook, supported by the irrevocable and unconditional guarantee from Malayan Banking Berhad (Maybank) to honour Muhibbah’s irrevocable and unconditional undertaking to purchase and cancel all the Islamic Bonds at the exercise price upon the declaration of an event of default (Purchase Undertaking)……………………………………….Full Article: Source

Industry experts highlighted key challenges, business prospects and export opportunities in various key markets in the Islamic finance sector at a forum hosted by Dubai Exports.
The forum, held in partnership with Zawya brought together leading local and international scholars and practitioners from the sector. It also showcased presentations about Islamic finance opportunities in Germany, Africa, Indonesia and the Arab World as well as the Takaful sector……………………………………….Full Article: Source