The UAE central bank will launch on Thursday a repurchase facility for Islamic certificates of deposits to provide a new liquidity tool for the banks, a document showed on Wednesday.
Lack of liquidity management tools is seen as one of the key challenges to the emerging Islamic finance industry, which has close to $1 trillion worth of assets globally. The religion’s ban on interest rules out most interbank tools……………………………………….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.
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

Following the disquiet that has trailed the structure of Islamic banking since the granting of an approval in principle to the first Islamic bank in the country, the Central Bank of Nigeria (CBN) Tuesday amended the regulation and supervision of institutions offering non-interest financial services in the country.
A circular by the apex bank titled: “Re: Framework for the Regulation and Supervision of Institutions Offering Non-Interest Financial Services in Nigeria,” signed by the Acting Director, Financial Policy and Regulation Department, Mr. Chris O. Chukwu, explained that Islamic banking is not the only form of non-interest banking product in the country……………………………………….Full Article: Source

The Central Bank of Nigeria (CBN) has dismissed fears expressed in some quarters over the planned introduction of Islamic banking, which aims at bringing about a non-interest banking regime into the country, saying it is all about broadening the nation’s financial system.
The apex bank’s Deputy Governor, Financial System Stability (FSS), Dr. Kingsley Moghalu, while speaking at a workshop with a theme: Re- Purpose Capital: Non-interest banking in Nigeria, in Lagos yseterday, said there was no need to entertain any fear about the banking model……………………………………….Full Article: Source

Arab Banking Corp. wrote off 90 percent of the $120 million debt owed to it by International Leasing & Investment Co., Al-Seyassah reported, citing unnamed people familiar with the issue.
The Kuwaiti-based Islamic leasing and project-financing company will only pay $12 million to its Bahraini creditor, according to the newspaper. International Leasing also owes $60 million to Kuwait and Middle East Financial Investment Co. (KMEFIC), Al- Seyassah reported……………………………………….Full Article: Source

Given the size of Oman’s market, a full-fledged Islamic bank will secure the first-mover’s advantage to win a significant market share in the country’s Islamic banking sector, along with commercial banks which set up Islamic banking windows first, according to Islamic banking experts.
“If banks are to make the most of the new opportunity then they should be in hurry to get into the sector. Early comers in the industry will get a foothold in the market and will have a head start as far as marketing of Islamic finance products are concerned,” said Dr Mabid Ali al Jarhi, financial expert and head of training at Emirates Islamic Bank in Dubai……………………………………….Full Article: Source

Standard Chartered Saadiq, the bank’s brand name for Islamic banking, yesterday unveiled two shariah compliant products for business customers in Bangladesh. The products — Islamic business installment finance, and Islamic finance against property — are designed for small and medium enterprises (SMEs).
Islamic business installment finance operates under the concept of goods murabaha and Islamic finance against property works under hire purchase Shirkat-ul-Melk (diminishing musharaka) concept……………………………………….Full Article: Source

Dubai-based Dar Al Sharia Legal & Financial Consultancy, is the provider of Shariah consultancy services globally, 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 Dubai Department of Economic Development. (Press Release)

Seeking to tackle challenges, explore business prospects and export opportunities in various key markets in the Islamic Finance Sector, Dubai Exports, an agency of the Dubai Department of Economic Development (DED), Government of Dubai, has hosted the Islamic Finance Forum.
The forum, held in partnership with Zawya, a leading provider of financial information in the MENA region, 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. (Press Release)

TheCityUK, an independent membership body promoting the financial services industry within the UK and beyond, has announced the integration of the UK Islamic Finance Secretariat (UKIFS) into its operations.
The UKIFS is the leading cross-sectoral body assisting with the promotion and development of Islamic Finance, both domestically and representing the UK financial services industry internationally.
The new integration will allow TheCityUK to focus on safeguarding and further developing the UK’s strengths in Islamic finance, ensuring it not only remains the West’s hub for this financial specialism but continues to be a significant contributor on a global stage. (Press Release)

The International summit called “Kazansummit-2011, held in Kazan, the capital of the Republic of Tatarstan has discussed how Russia, which has a large population of Muslims can use the economic and business experiences of Islamic countries to advantage.
Representatives of the Islamic World and European economists participated in the summit. Among the important tasks of the Forum was defining the future of cooperation between Russia and the Muslim countries in the CIS, the Middle East, South East Asia and Europe……………………………………….Full Article: Source

The Islamic Development Bank (IDB) Group in Jeddah is making preparations for its 36th annual Governors Meeting to be held under the patronage of the Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz.
Ministers of Finance, Economy and Planning from 56 IDB member countries will participate in the meeting which will take place in Jeddah, KSA, 26-30 June, 2011……………………………………….Full Article: Source

Indonesia has postponed Islamic bond sales for the past eight weeks as legislators delay approvals needed for new securities. The government postponed auctions of rupiah sukuk due in five, 10 and 15 years on May 31 and June 14. Local companies have sold Rp 200 billion ($23 million) of Islamic bonds this year, compared with Rp 700 billion in 2010.
Investors are asking for higher yields to hold the sukuk because of concern they will struggle to find buyers, said Helmi Arman, a bond strategist at Bank Danamon Indonesia……………………………………….Full Article: Source

An Indonesian parliamentary commission approved on Tuesday the use of 30.2 trillion rupiah ($3.5 billlion) of state-owned assets to guarantee government sukuk issues.
The government has not issued sukuk for nearly two months after it ran out of underlying assets. ………………………………………Full Article: Source

Islamic bond issuance has hit a record high this year signalling a revival in the sukuk market following the Dubai debt crisis and other setbacks over the past few years.
The volume of sukuk bonds, which comply with Islamic law, has reached $10.2bn in the year-to-date, up 68% from the same period last year, according to data from Dealogic. Corporate issuers captured 65% of the market with $6.6bn of issuance — double the volume for the comparable period in 2010……………………………………….Full Article: Source

Dubai World’s property arm Nakheel has delayed offering an Islamic bond, or sukuk, until July as part of its $10.9 billion debt restructuring plan, two sources familiar with the matter said.
The developer, which overstretched itself with projects such as islands in the shape of palm trees, has said it expected its debt restructuring process, including the sukuk issue, to be completed by the end of the first half of 2011……………………………………….Full Article: Source

Saudi International Petrochemical Co (Sipchem) expects to raise up to 2 bln riyals (US$533.3 mln) from a planned Islamic bond offering to fund plant expansions, as per Reuters. Deutsche Securities, the securities arm of Deutsche Bank, and Riyad Capital were appointed as joint lead managers for the sukuk.
Under a Mudaraba sukuk, a bank provides capital for a project while an entrepreneur manages the deal. The profits are split according to a pre-determined ratio and the bank bears any monetary losses that arise……………………………………….Full Article: Source

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 470%.
Subscriptions worth BD94 million were received for the BD20 million issue, which carries a maturity of 182 days. The expected return on the issue, which begins on 23 June 2011 and matures on 22 December 2011, is 1.05%……………………………………….Full Article: Source

The Central Bank of Nigeria (CBN) plans to issue its first sovereign sukuk within the next 18 months in a move aimed at boosting Islamic banking in Nigeria’s economy, its governor, Sanuis Lamido Sanusi said on Monday.
Sukuk is an Islamic financial certificate, similar to a bond in Western finance, that complies with Sharia, Islamic religious law. Because the traditional Western interest paying bond structure is not permissible, the issuer of a sukuk sells an investor group the certificate, which then rents it back to the issuer for a predetermined rental fee……………………………………….Full Article: Source

Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, Monday disclosed plans by the apex bank to sell its first ‘sukuk’ within 18 months. The sovereign ‘sukuk,’ according to the banking sector regulator, will help arouse interest in Islamic banking in the country.
THISDAY gathered that the ‘sukuk’ is the Arabic name for financial certificates. It is however, commonly referred to as the Islamic equivalent of bonds……………………………………….Full Article: Source

Going by structures already put on ground, Sanusi Lamido Sanusi, Governor, Central Bank of Nigeria (CBN), expects that the apex bank, working with the Debt Management Office (DMO), would fashion the nation’s first Islamic (non-interest) bond, before the end of next year.
A Reuters report on Monday quoted Sanusi, who is attending an Islamic Finance Forum in Dakar, Senegal as saying: “We are working with the debt management office. The central bank is collaborating with them on capacity building. We do have a target of issuing a first sovereign Sukuk in Nigeria within 18 months.”………………………………………Full Article: Source

The Central Bank of Nigeria (CBN) yesterday clarified its stance on Non-Interest Banking, saying it was not only Islamic banks that were contemplated under the new banking model, which categorised Non-Interest Banks (NIBs) as part of specialised institutions.
This clarification stemmed from the outrage by Christians who felt that non-interest banking was the same thing as Islamic banking……………………………………….Full Article: Source

In a sign that Islam’s role in Azerbaijan may be slowly evolving, the country’s largest and only state-owned bank, the International Bank of Azerbaijan, plans this autumn to open a specialized branch offering limited Islamic banking services.
A prohibition on charging interest for loans is the major distinction between Islamic and Western-style banking. Instead of interest, Islamic banks take a stake in businesses to which they loan money, and share both the profit and loss with the client……………………………………….Full Article: Source

Azerbaijani banks expand involvement in the process of activity on Islamic banking principles. Chairman of Turanbank’s Supervisory Board Fuad Musayev has reported that at present tender phase is underway for selection of the consultant on introduction of Islamic banking’s “window”.
” We have already given requests to potential consultants and expect their answers which we will evaluate and make a choice. In parallel national legislation analysis is ongoing “,- F. Musayev said. The bank sees Bahrain, Great Britain or Malaysian companies as its consultants……………………………………….Full Article: Source

Standard Chartered Saadiq, the bank’s brand name for Islamic banking, yesterday unveiled two shariah compliant products for business customers in Bangladesh.
The products — Islamic business installment finance, and Islamic finance against property — are designed for small and medium enterprises (SMEs). Islamic business installment finance operates under the concept of goods murabaha and Islamic finance against property works under hire purchase Shirkat-ul-Melk (diminishing musharaka) concept……………………………………….Full Article: Source

British-based Standard Chartered is planning to bid for a controlling stake in Bank Muamalat, the oldest Islamic bank in Indonesia, after its local affiliate, Bank Permata, withdrew from the race, sources with direct knowledge of the matter have said.
Qatar Islamic Bank and Bank Mega were among suitors that submitted second-round bids ahead of last week’s deadline……………………………………….Full Article: Source

Bank Simpanan Nasional (BSN) is moving ahead to become one of the leading banks in implementing Islamic banking in the country when all its 19 branches in Kelantan offer syariah-compliant services.
Its head of payments services division, Zaukifele Ibrahim, said Kelantan was the first state BSN that stopped its conventional banking services……………………………………….Full Article: Source

Seera Investment Bank, a Shari’a compliant investment bank headquartered in Bahrain, announced the sale of BWA Water Additives (BWA), a UK based company in a transaction valuing the company at around $ 300 million. The sale has generated a total return on investment of around 70% over a holding period of slightly over two and a half years with an IRR of around 20%.
BWA is the world-leader in the development and supply of specialty chemicals used for water treatment in 90 countries around the world. The company’s new owner is Berwind Corporation, a US family-owned investment management company, with investments in a diversified portfolio of highly successful manufacturing and service companies. (Press Release)

Oman is well positioned to attract Islamic funds for its economic development, if the country formulates the right regulatory environment and train human resources to work in Sharia-compliant institutions, says an expert.
“The major issue is regulatory environment. We also need to train people to work in Islamic banking institutions,” Dr Mabid Ali Al Jarhi, financial expert and head (Training) of Emirates Islamic Bank, told Times of Oman……………………………………….Full Article: Source

The Islamic finance industry is currently valued at Dhs3.65 trillion ($1 trillion) worldwide, of which Dhs717 billion ($210 billion) is invested in the Middle East.
Following the royal decree by Sultan Qaboos Bin Said Al Said authorising Sharia-compliant financial products in Oman, International Turnkey Solutions (ITS), a global leader in Islamic banking technology solutions successfully concluded its first ‘Oman Islamic Banking Conference 2011,’ attended by over 80 banking decision makers, Islamic banking experts and financial organisations……………………………………….Full Article: Source

Nigeria plans to issue its first sovereign sukuk within the next 18 months in a move aimed at boosting Islamic banking in West Africa’s largest economy, Nigeria’s central bank governor said on Monday.
“We are working with the debt management office. The central bank is collaborating with them on capacity building. We do have a target of issuing a first sovereign sukuk in Nigeria within 18 months,” Lamido Sanusi said on the sidelines of an Islamic finance forum in Senegal’s capital……………………………………….Full Article: Source

The Indonesian government has delayed the planned offering of its first global sukuk to September or October from July or August as it is still seeking parliamentary approval for the offering, a senior official at the finance ministry told reporters Monday.
“We are still seeking approval from the parliament on the underlying assets to back the global sukuk offer,” said Rachmat Waluyanto, a debt management director at the finance ministry……………………………………….Full Article: Source

Indonesia may sell at least $500 million of global sukuk in September or October this year, Dahlan Siamat, the finance ministry’s sharia director in Jakarta, said on Monday.………………………………………Full Article: Source

Saudi International Petrochemical Co (Sipchem) expects to raise up to 2 billion riyals ($533.3 million) from a planned Islamic bond offering to fund plant expansions, its chief executive said.
Sipchem, which plans to part-finance three projects worth over $1 billion with the sukuk sale, began roadshows for the bond on Saturday and sees book building to begin next week……………………………………….Full Article: Source

Malaysian state-owned power producer Sarawak Energy Bhd priced its RM3 billion (US$984 million) Islamic bonds at the tighter end of its guidance, according to a letter sent to investors by RHB Investment Bank Bhd and AmInvestment Bank Bhd, the lead managers.
The company fixed its five-year notes to yield 4.3 per cent, seven-year at 4.6 per cent, 10-year at 5.05 per cent and 15-year at 5.55 per cent, it said……………………………………….Full Article: Source

Bank Muamalat Malaysia Berhad ( BMMB ) on 15 June 2011 successfully issued its Tier 2 Capital Islamic Subordinated Sukuk of RM400 million ( Subordinated Sukuk ). The Subordinated Sukuk carries a tenure of 10 years from the issue date on a 10 non-callable 5 basis.
The Subordinated Sukuk, which is based on the Islamic principle of Musyarakah, is rated A3 by RAM Ratings Services Berhad. The rating outlook is stable. The Subordinated Sukuk was lead arranged by BMMB and Maybank Investment Bank Berhad and the issuance was done on private placement basis at a profit rate of 5.15 percent. (Press Release)

The nation’s quest of becoming the hub of Islamic banking in West Africa received a boost on Monday, as the Central Bank of Nigeria (CBN) and other relevant agencies concluded plans to issue the first first licence within the next 18 months.
CBN governor, Mallam Lamido Sanusi, said plans were underway to license the first Islamic bank in Nigeria. “We are working with the Debt Management Office. The Central Bank is collaborating with them on capacity building. We do have a target of issuing a first sovereign sukuk in Nigeria within 18 months,” he said……………………………………….Full Article: Source

British-based Standard Chartered is planning to bid for a stake in Bank Muamalat, the oldest Islamic bank in Indonesia, after its local affiliate, Bank Permata, withdrew from the race, sources with direct knowledge of the matter have said.
Qatar Islamic Bank and Bank Mega were among suitors that submitted second-round bids ahead of last week’s deadline……………………………………….Full Article: Source

Bank Simpanan Nasional (BSN) is moving ahead to become one of the leading banks in implementing Islamic banking in the country when all its 19 branches in Kelantan offer syariah-compliant services.
Its head of payments services division, Zaukifele Ibrahim, said Kelantan was the first state BSN stopped its conventional banking services……………………………………….Full Article: Source

Banks in the UAE will continue to shore up liquidity and de-leverage, Goldman Sachs said as it downgraded three banks in the region following strong share price performance. Goldman downgraded Abu Dhabi Commercial Bank to “sell” from “buy,” Dubai Islamic Bank to “sell” from “neutral,” and Emirates NBD Bank to “neutral” from “buy.”
The brokerage also cut its share price target on the UAE banks by 10 per cent on average, mainly to account for an expected negative impact from tighter consumer finance regulation……………………………………….Full Article: Source

In a sign that Islam’s role in Azerbaijan may be slowly evolving, the country’s largest and only state-owned bank, the International Bank of Azerbaijan, plans this autumn to open a specialized branch offering limited Islamic banking services.
A prohibition on charging interest for loans is the major distinction between Islamic and Western-style banking. Instead of interest, Islamic banks take a stake in businesses to which they loan money, and share both the profit and loss with the client……………………………………….Full Article: Source

HSBC Saudi Arabia, the investment arm of the Saudi British Bank – SABB, has been named the best investment bank in Saudi Arabia by Euromoney magazine.
Walid Khoury, chief executive officer, HSBC Saudi Arabia received the award at the annual Euromoney Awards special event held recently in Dubai and attended by Fouad Bahrawi, SABB board member and David Dew SABB managing director……………………………………….Full Article: Source

Kuwait Finance House (KFH) organized a comprehensive training program for newly appointed employees at the Experts Department at the Ministry of Justice.
The training course included a series of lectures that were given by KFH employees from June 12-16th, in order to introduce them to the nature of work in Islamic banking institutions and Islamic transactions that are directly related to the work of those experts, which will improve their performance……………………………………….Full Article: Source

Commercialbank has announced a 5% dividend payout on its flagship equity fund Al Waseela Funds. The funds have been available to investors since April 2007 and offer both a local and international tranche. They have delivered strong returns of 41% since inception, averaging a net return of 10% per annum.
On the 5% dividend payout in June 2011, Commercialbank is offering investors the option of either encashing the dividends or reinvesting through additional units into the fund……………………………………….Full Article: Source

Meezan Bank’s subsidiary Al-Meezan Investment Management Limited has signed a trust deed with the Central Depository Company Limited to launch second Shariah-compliant Capital Protected Fund, a statement said on Monday.
Irfan Siddiqui, President and CEO, Meezan Bank, and Chief Executive of Al-Meezan, Mohammad Shoaib, CFA, were present at the signing ceremony, it said……………………………………….Full Article: Source

The Islamic finance industry is currently valued at $1 trillion worldwide, of which $210 billion is invested in the Middle East.
Following the Royal Decree by His Majesty the Sultan authorising Sharia-compliant financial products in Oman, International Turnkey Solutions (ITS), a global leader in Islamic banking technology solutions successfully concluded its first ‘Oman Islamic Banking Conference 2011,’ attended by over 80 banking decision makers, Islamic banking experts and financial organisations……………………………………….Full Article: Source

In his book “Islamic Finance”, Mahmoud El-Gamal outlines the dilemma faced by the Islamic finance industry, for example. On one hand the Islamic finance industry tries to be similar to conventional finance so as not to be in any jeopardy of national or international laws.
On the other hand, the industry portrays itself to be different by using Arabic words to describe mundane secular contracts and attempting to conform to the sacred texts of Islam, even when such conformity is no more than form over function. This dilemma of being same and yet different is also faced by other Islamized disciplines……………………………………….Full Article: Source

A report prepared by Kuwait Finance House Research Ltd (KFHR) said that ‘sukuk’ (Islamic Sharia-compliant bonds) has witnessed a sharp increase of 300 percent since the start of this year reaching in total $40 billion.
The annual report by KFHR, a branch of Kuwait Finance House (KFH), said that last May of this year witnessed an increase in global sukuk, 22.4 percent when compared to April of last year, reaching $four billion. The report added that last May sukuk worth in value $5.9 billion, while the total value of Sukuk since the start of this year has reached $40 billion……………………………………….Full Article: Source

Gasprombank, the financial arm of Russia’s gas exporting monopoly Gazprom, is building support for Sukuk but Russian legislation lags.
Executives from Gazprombank have been drumming up interest in South East Asia. Bloomberg reports Alexander Kazakov, director of structured and syndicated finance at the bank, speaking in Jakarta as claiming up to five companies were interested in Sukuk issuance. Separately, Kuala Lumpur-based AmanahRaya says it is working on a dollar-denominated Sukuk for Tatarstan……………………………………….Full Article: Source

Saudi International Petrochemical Co (Sipchem) expects to raise up to 2 billion riyals ($533.3 million) from a planned Islamic bond offering to fund plant expansions, its chief executive said.
Sipchem, which plans to part-finance three projects worth over $1 billion with the sukuk sale, began roadshows for the bond on Saturday and sees book building to begin next week……………………………………….Full Article: Source