The Central Bank of Bahrain (CBB) announced that the monthly issue of Sukuk Al-Salam Islamic securities for the BD 18 million issue , which caries a maturity of 91 days, has been oversubscribed by 267%.
The expected return on the issue, which begins on 27 July 2011 and matures on 26 October, is 0.70%. ………………………………………Full Article: Source

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The Supreme Council for Sharia in Nigeria on Sunday threatened that Muslims would rather go to war than give up on the current move by the Central Bank of Nigeria to promote Islamic banks in the country.
The SCSN also warned Christian clerics to stop disturbing Muslims, whom it said had received enough abuses since the controversial banking system came to the front burner of national discourse……………………………………….Full Article: Source

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Islamic banking alleges the need to do good and forbid evil in the use of financial tools, particularly the prohibition of Riba and the prohibition of Gharar (risky or ambiguous sales). In Islam, one does not lend to make money, and one does not borrow to finance a business -loans are a charitable contract, which differs from a sales contract.
But, if one lends you money he or she can request the money back at any time, if you cannot repay, the repayment time is extended, if you never pay back, it becomes charity……………………………………….Full Article: Source

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The Archbishop of Metropolitan See of Lagos, Anthony Cardinal Okogie, has said the Islamic banking as proposed by the Central Bank of Nigeria, CBN, was a ploy to Islamise the country.
The Cardinal, who spoke during the ordination of four priests at Saint Francis Catholic Church, Idimu, Lagos, said the CBN Governor, Mallam Sanusi Lamido Sanusi, was “gradually trying to force us into embracing the Sharia system……………………………………….Full Article: Source

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The Buddha’s of the Baminyan Valley in the mountains of Afghanistan are some of the world’s most spectacular and ancient treasures. Standing at 174 and 125 feet apiece respectively on the mountain side 131 miles North East of Kabul, the two figures rank among the tallest Buddha sculptures in the world and are included among the world’s historical sites of interest by UNESCO.
When the Taliban came to power, they decreed the treasures an abomination against Islamic belief and simply strung dynamite charges around the Buddha sculptures and blew them up……………………………………….Full Article: Source

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The Islamic Institute of Accounting and Finance of Nigeria yesterday concluded a two-day conversion course on Islamic Accounting and Finance for Accounting and other related professionals in order to blend Islamic finance with conventional finance.
The event which took place at Mambayya House drew participants from Jigwawa, Borno, Sokoto, Katsina, Kaduna and kano states……………………………………….Full Article: Source

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The stricter, more ethical rules of Islamic finance helped many countries avoid the worst of the 2008 economic meltdown. Now officials in the Russian republic of Tatarstan are hoping that Islamic finance can help them attract direct investment from Muslim nations around the world.
Last week a summit on Islamic finance in Kazan, the capital of Tatarstan, welcomed delegates from as far afield as Malaysia, Saudi Arabia, Turkey, Azerbaijan and the United Arab Emirates……………………………………….Full Article: Source

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International Islamic has reported an 18% rise in net profit to QR322mn in the first half of the year.
“The results clearly indicate International Islamic is surging ahead with rapid growth and holds a very strong position in the Qatari banking sector,” International Islamic chairman and managing director Sheikh Khalid bin Thani bin Abdullah al-Thani said……………………………………….Full Article: Source

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Samba Financial Group, in collaboration with Panda, has launched the Samba-Panda Islamic Credit Card, the first co-branded credit card in the retail grocery field. The card provides Samba & Panda clients with a variety of exclusive benefits when they purchase from any Panda or Hyper Panda markets anywhere in the Kingdom or use the card anywhere in the world.
Launching the Samba-Panda Islamic credit card highlights the pioneering role of Samba Financial Group in providing Shariah-compliant services to its clients. (Press Release)

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The risk-based capital (RBC) framework for the takaful industry is expected to be implemented in the first half of next year, paving the way for stricter capital requirements for Islamic insurance.
The move would enable takaful players to hold appropriate level of capital to undertake risks in their daily operations……………………………………….Full Article: Source

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The Risk Base Capital for Takaful (RBCT), a takaful risk management framework in Malaysia, is expected to be implemented by the first half of next year.
Malaysian Takaful Association president, Datuk Syed Moheeb Syed Kamarulzaman said the framework would enable industry players to conduct a better risk management on capital, thus improving the takaful management system in Malaysia……………………………………….Full Article: Source

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QIB (UK), Qatar Islamic Bank’s subsidiary operating out of the United Kingdom has joined forces with Unilever Ventures Limited, the European venture capital arm of Unilever the world’s second largest FMCG company, in putting together a financing round to support the commercialisation of a new technology that has been developed by IOTA NanoSolutions (INS).
INS is a high-tech science technology company based in the industrial city of Liverpool in England which has developed ‘ContraSol’, described as a ‘proprietary nanodispersion formation technology’……………………………………….Full Article: Source

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Iran, Iraq and Syria say they’re set to sign an official contract to construct a natural gas pipeline connecting Iran’s South Pars field to European customers.
Iran’s state-run Press TV announced that a deal between Iran’s interim Oil Minister Mohammad Aliabadi and his Iraqi and Syrian counterparts — the biggest of its in the kind in the Middle East — would be signed at Asalouyeh, Iran……………………………………….Full Article: Source

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Religious NGO Jamiyyathul Salaf has claimed that imposing taxes on a Muslim’s property without his or her consent is haram (forbidden) in Islam.
“Without doubt, using a person’s property or profiting from the property without the consent of the owner is haram in Islam,” the NGO said today in a press release. “Only the compulsory Zakat (alms for the poor) portion can be taxed from a Muslim’s property.”………………………………………Full Article: Source

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Zeti Akhtar Aziz, governor of Bank Negara Malaysia, the central bank, stressed that the increasing internationalization of Islamic finance and the burgeoning trade and economic linkages between the emerging countries present an important opportunity for the industry to make a meaningful and enhanced contribution toward economic growth and prosperity of these countries.
“The transition of Islamic finance into the mainstream of the global financial system is an opportunity for the Nusantara financial intermediaries, in particular in Indonesia and Malaysia, to open new frontiers and to participate in this trend and thereby strengthen further our economic and financial linkages. ” she added……………………………………….Full Article: Source

Student accommodation as a commercial property asset class is making a comeback in Shariah-compliant financing whether through individual transactions or through a dedicated property fund.
While student accommodation is big business in conventional real estate financing and private equity deals especially in the major metropolitan university towns and cities, it has been markedly limited in the Islamic finance space despite the fact that its is an ideal asset class to finance or even bundle for securitization……………………………………….Full Article: Source

The Islamic finance industry is pegged to grow at 15-20 per cent per year. 63 per cent of Islamic finance institutions are in the Middle East, controlling more than 50 per cent of Islamic banking assets.
“Oman’s move to Islamic finance comes at just the right time as ethical finance gains a foothold around the world. We are proud to be supporting the Omani banking industry in this important endeavour,” said Ihab Sahili, Regional Director for International Turnkey Systems………………………………………Full Article: Source

Abdullah Nana, an imam at the Islamic Center of Mill Valley, Calif., just north of San Francisco, has a distinct advantage over many of his fellow imams in the United States. It’s not fluency in Arabic or training in Islamic jurisprudence. It’s his bachelor’s degree in business.
American imams get asked about financial ethics more than any other topic, Nana said, yet he calls it the subject that they are least qualified to talk about with congregants……………………………………….Full Article: Source

As they were reviewing the bank’s funding needs recently, executives at HSBC Holdings decided to take a fresh look at sukuk, or Islamic bonds. Three years earlier the London-based bank had announced plans to issue up to $5 billion of sukuk under a medium-term financing program, but it never proceeded because the sukuk market, which seized up during the financial crisis, failed to recover.
In recent months, however, a decline in yields and a revival of activity persuaded HSBC that the time was right to dust off its plans……………………………………….Full Article: Source

Investment-grade bonds in Malaysia and Abu Dhabi are leading a rally in dollar sukuk, driving average yields to the lowest level in six years, as rising prices of commodities shore up economic growth.
The yield on Malaysia’s 4.646 per cent note maturing in July 2021 dropped 26 basis points, or 0.26 percentage point, this month to 4.4 per cent yesterday, according to prices from Royal Bank of Scotland Group……………………………………….Full Article: Source

One of the positive outcomes of the 36th annual board of governors meeting held in Jeddah last month was the approval by the Board of Directors of the Islamic Corporation for the Insurance of Export Credit and Investment (ICIEC), the standalone export credit and political risk insurance agency of the IDB Group, of the corporation’s capital from the current $240 million to $640 million.
The obvious benefit for ICIEC is that the capital increase would substantially increase its underwriting and reinsurance capacity……………………………………….Full Article: Source

Malaysian highway operator Besraya is to issue a RM700m ($233m) Mudarabah Sukuk, according to local press reports. The Sukuk will be used to part-finance the development, design and construction of the 12.3km Besraya Eastern Extension as well as other project-related expenses and working capital requirements.
The company was awarded the extension project as a form of compensation from the government following toll plaza closures at Salak Jaya (pictured) and Sungei Besi Highway in February 2009. RAM Ratings assigned a long-term AA3 rating to Besraya……………………………………….Full Article: Source

PT Bank Muamalat Indonesia, the nation’s oldest shariah-compliant lender, said it will offer $50 million of dollar-denominated Shariah-compliant bonds in the fourth quarter of this year.
“The medium-term note sale will be a bilateral arrangement with a foreign bank in Malaysia,” Chief Financial Officer Hendiarto said at a press briefing in Jakarta. The sukuk will have a tenor of not more than five years……………………………………….Full Article: Source

Egypt’s Salafist party, El-Nour, in it’s first economic conference, called for the founding of a bank on behalf of the party that aims to contribute to the Islamic banking sector.
The bank will be based on funding for small and medium enterprises as one of the quick keys to help the youth sector……………………………………….Full Article: Source

Oman International Bank is looking to grab a slice of the US$1 trillion Islamic finance market. That was the reading from analysts yesterday after the bank announced it was considering a “strategic alliance” with another financial institution.
“This strategic review will evaluate potential operating models for the future and will consider whether the bank should remain independent, whether it should form a strategic alliance with another leading financial institution or whether it should pursue other different forms of cooperation,” the lender said in a filing to the Muscat Securities Market……………………………………….Full Article: Source

Operating profit of AED 207 million ($56.4 million) for H1 2011 shows recovery from operating loss of AED 9 million ($2.45 million) in H1 2010.
Noor Islamic Bank (NIB) showed revenue of AED 386 million ($105.1 million) in H1 2011 with net profit of AED 85 million ($23.14 million). HH Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, Chairman of Noor Islamic Bank said, “Our robust performance in the first half of the year is a direct result of the strategic initiatives and business model realignment that we have been undertaking within the bank over the past 18 months. Our efforts to focus our expertise on niche business opportunities are reflected in our earnings momentum……………………………………….Full Article: Source

Ahlibank Qatar is pinning hopes on the strong capital expenditure laid out by Qatar and also expects to boost its fee-based earnings, especially with its re-entry into brokerage business. On the other hand, it held that lending margins were on the squeeze due to the central bank cap on interest on personal loans.
Although it has not witnessed customers of Islamic banking migrating to other banks and to conventional banking in view of the Qatar Central Bank (QCB) directive on curbing Islamic business by conventional lenders, Ahlibank said it will devise a “workable” plan by the year-end and confirmed that some (Islamic) lenders are in talks over possible asset sale……………………………………….Full Article: Source

International Islamic has reported an 18% rise in net profit to QR322mn in the first half of the year.
“The results clearly indicate International Islamic is surging ahead with rapid growth and holds a very strong position in the Qatari banking sector,” International Islamic chairman and managing director Sheikh Khalid bin Thani bin Abdullah al-Thani said……………………………………….Full Article: Source

Kerala Finance Minister K M Mani reveals plans for special counters to be opened in state treasuries to collect interest-free deposits, saying the state Government was ‘not against’ the idea of Islamic banking.
Despite Kerala’s apparent willingness to embrace Islamic finance, the Reserve Bank of India and the central Government has made it clear that Islamic banking may not be implemented under current legislation……………………………………….Full Article: Source

Determined to stop the Governor of the Central Bank of Nigeria (CBN), Lamido Sanusi from implementing the Islamic banking system in Nigeria, Christian leaders in Enugu State have threatened to terminate the process through the court.
At the end of a meeting held in Enugu, the group under the aegis of Christian Council of Nigeria, expressed dissatisfaction wit the explanations made by the CBN governor over the establishment of Islamic banking during his appearance before the House of Representatives……………………………………….Full Article: Source

Muslim leaders in their hundreds, under the aegis of the Supreme Council for Shari’ah in Nigeria, in Kaduna, on Sunday, said they would defend Islamic banking in Nigeria with the last drop of their blood.
They said since interest free banking was successfully practised in the United Kingdom (UK) and other Christian dominated countries, they would resist any attempt by the Christian Association of Nigeria (CAN) to frustrate the implementation of the banking system in Nigeria……………………………………….Full Article: Source

Congress for Progressive Change (CPC) vice presidential candidate Pastor Tunde Bakare chided religious leaders, who have opposed the Islamic banking, branding them as anti-development elements.
He said the introduction of non-interest banking could not lead to the “islamisation” and “christianisation” of Nigeria, advising them to desist from misleading the public……………………………………….Full Article: Source

The Association of Islamic Banking Malaysia (AIBIM) and Indonesian Syariah Banking Association (ASBISINDO) need to set up an industry task force on joint development of cross-border Islamic liquidity management products suitable for both Malaysia and Indonesia.
In a joint statement yesterday, the associations said this was decided at one of the specialised workshops held in conjunction with the Joint High Level Conference in Islamic Finance, organised by Bank Negara Malaysia and Bank Indonesia in Jakarta last week……………………………………….Full Article: Source

Qatar’s restriction on how much banks can lend is taking its toll, the chief executive of Ahli Bank said. The effect of the Qatari central bank’s regulations on retail loans is “high”, Salah Murad said yesterday, according to Bloomberg News.
Retail loans account for 20 per cent of the bank’s total portfolio, Mr Murad added. The central bank released a circular in April placing a ceiling of 400,000 Qatari rials on personal loans to expatriates, and dropping the loan limit for Qatari nationals to 2 million rials from 2.5m rials……………………………………….Full Article: Source

Union National Bank, jointly owned by the governments of Abu Dhabi and Dubai, has picked four banks for investor meetings ahead of a potential dollar bond issue, two sources said on Sunday.
HSBC Holdings, Standard Chartered, Citigroup and Deutsche Bank have been mandated for a Reg S deal, one banker familiar with the matter said……………………………………….Full Article: Source

The Kingdom’s banks are moving toward the second half of 2011 in a strong position, but their ongoing conservative positions have triggered criticism. Saudi Arabia’s financial institutions are cashed up with healthy levels of liquidity, operating in a secure and growing economy, and have shown new earnings and investment potential.
Despite this, there have been calls for the Kingdom’s lenders to be more active in advancing credit, after two years of building up reserves, Global Arab Network reports according to OBG……………………………………….Full Article: Source

An Abu Dhabi government department and Bahrain’s Gulf International Bank are planning ringgit-denominated sukuk issues in Malaysia, as Middle Eastern issuers seek to diversify their funding options, sources said on Thursday.
Gulf International Bank, a conventional wholesale bank, has begun work on a ringgit sukuk programme which would allow it to raise at least $1 billion, sources said……………………………………….Full Article: Source

Malaysia’s plan to create Asia’s first multinational Islamic bank may increase the ability of syariah-compliant lenders to carry out larger sukuk deals, after global sales more than doubled to US$14.7bil this year.
A licence for the bank will be awarded in the third quarter, Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said in a July 18 interview in Jakarta. She said in October the lender would be formed by institutions from Asia and the Middle East with a market capitalisation of US$1bil……………………………………….Full Article: Source

The central bank warned that Islamic banks must not be involved in terror financing, money laundering or any other illegal activities that damage their image. There are allegations that Islamic banks have been involved in unexpected activities, such as terror financing and money laundering, Bangladesh Bank said in a statement.
However, Islamic banking showed resilience while some conventional banks caved in during the recent global financial crisis, the statement quoted Bangladesh Bank Governor Atiur Rahman as saying……………………………………….Full Article: Source

The Islamic Bank is all about non-interest banking; it is a profit/loss-sharing banking. And if you look at our laws, there is a provision for the establishment of Islamic banks.
Islamic banking has nothing to do with construction of mosques or churches. It is all about going to take money from banks which do not have crescent or cross; it is all about money you are going to take for development. They don’t charge interest but they will charge you commission for services rendered……………………………………….Full Article: Source

There is need to embark on more aggressive enlightenment campaigns on Islamic or non-interest banking to ensure that all Nigerians are adequately informed about the system, an Associate Member of Institute of Islamic Banking and Insurance (IIBI), UK, Shafee Badmos has said.
Badmos said this on Sunday while speaking at one of the series of pre-Ramadan lectures organised in Abuja by Organisation of Thadamunul Muslimeen (OTM), Federal Capital Territory (FCT) branch……………………………………….Full Article: Source

House of Representatives members, with grumbling and applause, on Thursday backed Central Bank of Nigeria (CBN) Governor, Lamido Sanusi, on his plan to introduce Islamic banking and limit cash withdrawal from commercial banks daily.
By 9 a.m., protesters bussed in by Youth United for Nigeria (YUN) had gathered at the gate of the National Assembly (NASS), chanting anti-Sanusi songs, and hoisting placards asking the legislature to block Islamic banking……………………………………….Full Article: Source

Over the past decade, Islamic Finance has become a burning and topical issue around the world (Europe, Middle East and Asia) and has most recently reached Nigeria, over the introduction of the Islamic Banking model to the financial industry by the Central Bank of Nigeria. This has generated outcry from some quarters and a not so unexpected media frenzy.
A lot of scepticism and public opinion has been garnered about the motive behind the introduction of this alternative system of banking in Nigeria. However before this alternative mode of financing is dispelled by the general public or the government, the concept needs to be explored and understood in order to clarify its purpose and subsequent effect on the country……………………………………….Full Article: Source

In a bid to boost the nation’s economy, Nigerian women have been charged to embrace the non interest banking otherwise known as Islamic bank.
The national president of Federation of Muslim Women’s Association’s in Nigeria (FOMWAN) Hajia Mariam Othman who gave the charge at a one day Awareness Talk on Islamic/Non-Interest Banking Wednesday in Abuja said the new banking system would mostly favour women who needed loan to start up a business……………………………………….Full Article: Source

Takaful, Ernst & Young’s Sharia-compliant cooperative insurance program is expected to grow globally reaching $25 billion by 2015, the company said on Thursday. While Saudi Arabia, the UAE and Malaysia are currently the top three Takaful markets, Egypt, Bangladesh, Sudan, and Pakistan’s markets are rising at a rapid pace.
Takaful’s contributions are expected to reach $12 billion by the end of this year……………………………………….Full Article: Source

AmIslamic Bank, the Islamic banking arm of AmBank Group, aims to raise RM100 million from its latest financial product, AmAdvantage Plus Islamic Negotiable Instrument of Deposit (AmAdvantage Plus NID-i).
Managing Director cum Chief Executive Officer Datuk Mahdi Murad said the instrument was targeted at customers who were bullish of the global demand for commodities such as oil, corn, copper and cotton while protecting them from price volatility in the market……………………………………….Full Article: Source

Kirkland & Ellis has launched a Middle East practice group with the rehire of former Kirkland associate Kamran Bajwa, although the firm has no plans to open in the Middle East at present. Bajwa, a fluent Arabic speaker, rejoined the firm after eight years working across the Middle East region in the financial services, private equity, investment fund, Islamic finance and M&A sectors.
He has rejoined the firm as a partner in its Chicago office to help launch Kirkland’s Middle East practice group……………………………………….Full Article: Source

A Muslim group in the United Kingdom has launched a campaign to turn twelve British cities – including what it calls “Londonistan” – into independent Islamic states. The so-called Islamic Emirates would function as autonomous enclaves ruled by Islamic Sharia law and operate entirely outside British jurisprudence.
The Islamic Emirates Project, launched by the Muslims Against the Crusades group, names the British cities of Birmingham, Bradford, Derby, Dewsbury, Leeds, Leicester, Liverpool, Luton, Manchester, Sheffield, as well as Waltham Forest in northeast London and Tower Hamlets in East London as territories to be targeted for blanket Sharia rule……………………………………….Full Article: Source

Contributions drawn by the global Islamic insurance sector may reach $25 billion by the end of 2015, largely driven by growth from the Middle East, North Africa and Malaysia, according to a report by consultants Ernst & Young on Wednesday.
Family takaful, or life insurance, will be the main driver of growth given its lack of market penetration in the Gulf. Malaysia leads the global market with contributions of $115.8 million while Gulf contributions amount to $63.5 million……………………………………….Full Article: Source

The National Central Cooling Co, popularly known as Tabreed, said on Wednesday that it has repaid in full a Dh735 million ($200 million) sukuk that was due to mature on July 20. The move will reduce the company’s debt pile and financing costs following a successful completion of the recapitalisation programme in April this year.
Tabreed issued the sukuk in July 2006 and the total amount paid to certificate holders of the bond was Dh735 million, the company said……………………………………….Full Article: Source