Along with Islamic banking windows within commercial banks in Oman, the two new specialised Islamic banks would be able to start Sharia-compliant banking activities from early next year, according to the apex bank.
Both Bank Nizwa and Al Izz International Bank, which have got licences to operate as full-fledged Islamic banks, are expected to float initial public offerings (IPO) by the end of this year to list on the Muscat Securities Market (MSM)……………………………………….Full Article: Source

The Sharjah Government will work with Emirates Islamic Bank to provide grants and loans for all public housing projects. The agreement is one of the first major moves by the year-old Department of Housing.
The programme is the first time the Government has worked with a private bank to provide public housing, said Eng Khalifa Al Tunaiji, the director general of the Department of Housing……………………………………….Full Article: Source

Jeddah based Islamic Development Bank (IDB) has expressed its keenness to cooperate with India to uplift the conditions of Indian Muslims.
K Rahman Khan, deputy chairman of Rajya Sabha, met senior bank officials including its president Ahmad Muhammad Ali in Jeddah. Khan said that the bank officials are eager to explore new fields of co-operation with India……………………………………….Full Article: Source

The Banking institution is a place where individuals or corporate organizations alike deposit their money for personal or business transactions for the purpose of savings, current or fixed transactions that would yield profit over a particular period of time.
Nigeria as one of the growing economies of the world has taken the right step to restructure the banking system in the country………………………………………..Full Article: Source

A statement from Asian Finance Bank (AFB) said that Salah was ‘one of the earliest directors to be appointed on AFB Board and has been instrumental in steering the growth and development of AFB’.
The bank added, “Having served as a Committee member/ Chairman of several AFB committees, Mr Salah has been exposed to the Malaysian Financial and Capital Markets, regulatory authorities and met several Malaysian Ministers including the Prime Minister.”………………………………………Full Article: Source

Al Hilal Bank, a progressive Islamic bank, has on Tuesday, September 20, 2011 held a groundbreaking ceremony for its flagship commercial development located at the heart of the Sowwah Island mixed-use development in Abu Dhabi. The 120 metre-high tower will offer exceptionally efficient, Class A office space to leading national and global firms.
Sowwah Island and adjacent edges of Al Mina, Al Reem and the Abu Dhabi Islands are designated as Abu Dhabi City’s Central Business District under the Capital 2030 urban structure framework plan. (Press Release)

Islamic scholars have disputed on whether credit cards are permissible or prohibited in Islam. Some are of the opinion that credit cards can be used as long as there is no delay in the payment.
Others strictly forbid the use of credit cards, especially when the bank requests an annual charge for the card. This cost is a form of interest and is paid by the user regardless of whether he/she pays the bills on time or not. Also, the user enters into a contract with the bank which means that he/she is obliged to pay interest if the payment is postponed……………………………………….Full Article: Source

Former justice of Pakistan Mufti Taqi Usmani said on Wednesday that the ongoing global financial crisis gave credence to the Islamic financial system, which prohibited interest and short sale.
Speaking at the inaugural session of a two-day World Islamic Finance Summit, Usmani said that debt-based financing, sale of debt, derivatives and short sale were the primary reasons for the international financial crisis. “The worth of world’s total derivatives is 12 times the global GDP. This is virtual money, which discourages real economic growth,” he said……………………………………….Full Article: Source

Global sales of sukuk climbed to $17.3 billion in 2011, from $10.7 billion a year earlier, according to data compiled by Bloomberg. The following borrowers are expected to sell Islamic bonds, which use asset returns to pay investors to comply with the religion’s ban on interest.
TENAGA NASIONAL BHD.: Malaysia’s biggest power producer plans to raise 5 billion ringgit ($1.6 billion) from a 20-year local-currency sukuk in October, Bernama reported, citing Chief Executive Officer Che Khalib Mohamad Noh. Marketing will begin in the third week of October, the national news service reported……………………………………….Full Article: Source

Azerbaijan may become a regional hub for Islamic finance and promote cooperation in Islamic banking within the Persian Gulf and Central Asia, the team leader for the introduction of Islamic banking at the International Bank of Azerbaijan (IBA), Behnam Gurbanzade, said.
“Our market analysis confirmed the demand of corporate and private individuals in the products and services of Islamic banking in Azerbaijan,” Gurbanzade added……………………………………….Full Article: Source

Muslims have been urged to patronise the Islamic banking initiative of the Central Bank of Nigeria. This plea was made by Luqman Abdur-Raheem, the registrar of Yaba College of Technology, at the fourth Wahab Iyanda Folawiyo’s memorial Ramadan Lecture which held recently.
Abdur-Raheem, who is also an Islamic scholar, said that the concept of Islamic banking is different from that of non-interest banking because while the former “is against all forms of haram (unlawful) financial system,” the latter “is only free from any form of interest but can be involved in haram enterprise.”………………………………………Full Article: Source

The Central Bank of Oman (CBO) will establish a national authority for monitoring Islamic finance and banking sector, Hamood bin Sangour al Zadjali, CBO Executive President, said.
This authority (National Shariah Board) will be responsible for regulating Islamic finance and banking institutions, he told the Observer, after his speech at a workshop on “Islamic Finance and Banking,” organised by Horwath Mak Ghazali LLC……………………………………….Full Article: Source

Capinnova Investment Bank, the Shari’a compliant investment banking arm of BBK, has signed up as gold strategic partner for the upcoming ‘World Islamic Funds and Financial Markets Conference (WIFFMC 2011) in Bahrain.
The world’s most influential and pre-eminent gathering of leaders in the global Islamic funds and investments industry, WIFFMC 2011 will be held from September 26 to 27 in Manama……………………………………….Full Article: Source

Asian Finance Bank (AFB) has appointed Salah Mohd I Al Jaidah as its new chairman, effective, Sept 15. AFB in a statement Tuesday said Salah was one of the earliest directors to be appointed to the AFB board and had been instrumental in steering the growth and development of the finance house.
“Having served as a committee member/chairman of several AFB committees, Salah has been exposed to the Malaysian financial and capital markets as well as regulatory authorities,” it added……………………………………….Full Article: Source

Noor Islamic Bank has signed an agreement with flydubai, Dubai’s leading low-cost airline, to enable travellers to make payments through the bank’s multiple easy-to-use payment channels available throughout the UAE.
The agreement was signed by Hussain AlQemzi, CEO of Noor Islamic Bank, and Ghaith Al Ghaith, CEO of flydubai, at the flydubai headquarters……………………………………….Full Article: Source

Central Bank of Oman (CBO) appoints Ernst & Young to advise it on rules and regulations for Islamic finance following ‘in principle’ approvals for two new Islamic banks and for windows to offer Shari’ah-compliant products.
Ernst & Young is to offer advice on lending limits, rule books, reporting procedures and Shari’ah board formation. The firm will also set out how, for Islamic windows, the central bank will be able to ensure clear demarcation between conventional finance and Islamic finance assets……………………………………….Full Article: Source

Turkish Association of Participation Banks (TKBB) Chairman and the head of Albaraka Türk Participation Bank Fahrettin Yahşi has said there are investors from the Gulf region that intend to start up participation banks in Turkey.
“We have heard some news. Some participation banks from the Gulf region are in the process of talks to enter the Turkish finance sector by setting up a new participation bank in Turkey. It takes a long time to reach a final decision in the Gulf countries……………………………………….Full Article: Source

Barclays Bank plc has received approval to operate an Islamic Window in the Dubai International Financial Centre.
Known as a global leader in Islamic finance, Barclays has been active in promoting the Islamic banking sector for well over a decade. Now it will base its global Islamic products team in the DIFC, and to offer Islamic financial products and services from there……………………………………….Full Article: Source

Sharia-compliant insurance company Amana Takaful will issue 800,000 shares in an Initial Public Offering (IPO) on the Maldives Stock Exchange (MSE).
In a first for the country, 20 percent of the shares will be made available to expatriates and 15 percent to overseas applicants. The remaining 65 percent will be offered to Maldivians……………………………………….Full Article: Source

The Second Annual Islamic Finance Forum will bring tomorrow investors, borrowers and regulators together under one roof to achieve a better understanding of existing instruments of Islamic Finance and to find answers to issues encountered frequently in the course of doing business.
The First Islamic Finance Forum was held in January 2011 in Astana with the support of the Regional Financial Centre of Almaty (RFCA). Last year the event was attended by a large number of high-ranking government officials from the Ministry of Finance, Samruk-Kazyna National Welfare Fund, Financial Supervision Agency and representatives of foreign investment banks, development banks and a number of large Kazakh corporates……………………………………….Full Article: Source

China’s plans to set up a free trade zone for Arab countries in the province of Ningxia will be discussed at a five-day trade show.
The China-Arab States Economic and Trade Forum will also look at issues relating to expanding China’s Halal food industry, trading in the yuan and joint financing of major construction projects in the Middle East region including in Egypt, Tunisia and Libya……………………………………….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 242.5%.
Subscriptions worth BD48.5 million were received for the BD20 million issue amount, which carries a maturity of 182 days……………………………………….Full Article: Source

The total volume of mergers & acquisition (M&A) deals in the Middle East and North Africa (MENA) region posted a healthy 36 percent growth in the first half, with the UAE and Saudi Arabia topping the list, Ernst and Young (E&Y) said in its “H1 2011 MENA M&A Update.”
The value grew by 8 percent to $20 billion in the said period compared to deals worth $18.5 billion announced in the same period last year, the E&Y said………………………………………Full Article: Source

New Islamic bonds from Nakheel will face a test today in a debt auction amid falling prices and rising yields since trading began two weeks ago. The Dubai property giant is issuing the Islamic bonds, or sukuk, as part of a US$16 billion (Dh58.76bn) financial restructuring it began putting in place late last month.
The sukuk initially yielded about 13 to 15 per cent, well below what many observers expected. Yesterday, however, the security was yielding 16.37 per cent, according to a major bank trading the sukuk……………………………………….Full Article: Source

Nakheel’s Islamic bonds, which were issued to contractors and suppliers instead of cash as part of a $16.1bn restructuring plan, fell in their first week of trading as holders flooded the market.
The state-owned builder of man-made islands off Dubai’s coast saw the yield on its sukuk soar 108 basis points since Sept 9, or 1.08 percentage points, to 17.08 percent on Sept 16, according to prices at Standard Chartered……………………………………….Full Article: Source

Bahrain has set up a framework to issue up to 3.5 billion dinars ($9.3 billion) in bonds, the state news agency BNA reported on Monday, after the Gulf Arab state faced ratings downgrades following civil unrest.
“The finance minister is authorised to issue in accord with Bahrain’s central bank up to 3,500 million dinars in public treasury bonds … called development bonds and Islamic sharia-compliant instrument in the kingdom or abroad,” said a decree issued by Bahrain’s King Hamad bin Isa al Khalifa, BNA said……………………………………….Full Article: Source

In terms of Islamic Finance, Brunei is a speed boat while other economies are like oil tankers, which means the Sultanate has the ability to move faster than any other country if it desires to, putting the country in a prime position to be the industry leader.
Kuala Lumpur based Arsalaan “Oz” Ahmed, associate director of HSBC Amanah’s Wholesale Banking, said that other economies, compared to Brunei, can move and make waves, but their movement will be slower because of the size of their economy, what they have to integrate to make sure things go accordingly, and so on……………………………………….Full Article: Source

Malaysia aims to capture 25 percent of the market share in the Islamic banking and finance sectors by 2012, according to an expert speaking in Istanbul.
“Islamic banking and finance has experienced substantial and unprecedented growth in recent years, growing at a rate of 10-15 percent annually,” Mehmet Asutay, the director of the Durham Centre for Islamic Economics and Finance at British-based Durham University, said………………………………………Full Article: Source

The umbrella body of Pentecostal Christians in the South West, the Pentecostal Fellowship of Nigeria, PFN, has advised Governor Abiola Ajimobi of Oyo State against turning the state into a theatre of war through his plan to introduce Islamic Banking in the state.
National Vice President of PFN in the zone, Bishop Francis Wale Oke, spoke at the weekend in Ibadan……………………………………….Full Article: Source

Barclays Bank announced today that it has received approval to operate an Islamic Window in the Dubai International Financial Centre (DIFC), enabling it to base its global Islamic products team in the DIFC, and to offer Islamic financial products and services from there.
Well-established as a global leader in Islamic finance, Barclays has been active in promoting the Islamic banking sector for well over a decade……………………………………….Full Article: Source

Sharia-compliant insurance company Amana Takaful will issue 800,000 shares in an initial public offering (IPO) on the Maldives Stock Exchange (MSE).
In a first for the country, 20 percent of the shares will be made available to expatriates and 15 percent to overseas applicants. The remaining 65 percent will be offered to Maldivians……………………………………….Full Article: Source

Dubai’s economy is back in business,c said in its latest economic report on the region, outlining data that suggests that even as the emirate’s core economic sectors of trade and tourism are roaring back to life, the worst impacted real estate sector too witnessing green shoots of recovery.
In the just published Middle East focus economic report, Standard Chartered analysts Shady Shaher and Victor Lohle maintain that the UAE’s first-half performance was driven by increased hydrocarbon output from Abu Dhabi and strong non-oil growth in Dubai……………………………………….Full Article: Source

Mufti Talha Ahmad Azami, associate Sharia manager BMB Islamic, a global player in the Shariah advisory sector, outlines the guiding principles of Islamic finance.
The basic function that underlines all economic activity in the finance arena -both Islamic and conventional - is that of allocating finite resources to its most productive use. In Islamic finance, this allocation is inextricably bound by concepts of religion, law and ethics; also known as the Sharia. ………………………………………Full Article: Source

Another sign that the mainstream banks in South Africa are taking Islamic finance as a serious niche market business is the acquisition last week of the local Islamic insurance company, Takafol SA, by Absa, one of the republic’s largest banking groups.
In a deal which could have implications for the reach of Takaful (Islamic insurance) beyond the borders of South Africa to southern, central, West and East Africa, Absa Insurance Company Limited (AIC), a wholly-owned subsidiary of Absa Financial Services Limited (AFS), bought the book of business of Takafol South Africa (Pty) Limited (Takafol SA), which is a subsidiary of the Hannover Reinsurance Group, a major global reinsurer, and which was established in 2003……………………………………….Full Article: Source

The Malaysian government investment arm Khazanah Nasional is planning to issue renminbi-denominated sukuk, making it the first-ever Islamic financing in Hong Kong’s booming Dim Sum market, according to IFR.

IFR said that Khazanah was rumoured to be targeting 500 million renminbi ($77.5 million) with a tenor of five years, although a three-year piece is also being talked about……………………………………….Full Article: Source

Arab Gulf banks and corporates are expected to issue more Islamic bonds, or sukuk, denominated in local Gulf and Asian currencies in the coming months, driven by increased appetite for regional and Asian debt at a time of heightened concerns over the health of the US and European economies, bankers and analysts say.
As international financial markets, uncertain about the global economy and Europe’s debt crisis, continue to hamper global lenders’ ability to finance projects and deals in the Arab Gulf region, potential borrowers from the Middle East are targeting wealthy oil-rich GCC (Gulf Cooperation Council) governments and Asian fans of Islamic debt instruments for fund raising………………………………………Full Article: Source

Malaysia’s rapidly growing AmBank Group, almost 24 per cent owned by ANZ, plans to exploit the global connections of its major investor for its next phase of growth. ANZ has invested almost $900 million in the mid-tier Malaysian bank, its single largest investment in Asia.

Ashok Ramamurthy, AmBank’s deputy group managing director and chief financial officer, said the first six months were “tough” but the relationship was now going well. “We’ve demonstrated we can deliver,” he said……………………………………….Full Article: Source

Kuwait Finance House (KFIN), the country’s largest Islamic lender, said it has no expoosure to derivatives, according to a statement to the Kuwait bourse today in reacction to a newspaper report.

The lender said it was committed to regulations that govern the banking industry and is not in violation of central bank rules, according to the statement……………………………………….Full Article: Source

Kuwait’s biggest lenders National Bank of Kuwait and Kuwait Finance House have denied reports that they were putting customers’ money at risk by trading in derivatives.

Kuwaiti daily newspaper Al-Seyassah said earlier in a report, citing unnamed parliamentary and economic sources, that several lawmakers were planning to investigate derivatives trading by some banks. The trades took place away from the central bank’s supervision, it reported, and put clients’ deposits at risk……………………………………….Full Article: Source

Noor Islamic Bank has signed an agreement with flydubai, Dubai’s low-cost airline,to enable travellers to make payments through the bank’s multiple payment channels available throughout the UAE.
flydubai customers will be able to pay for their flight bookings at the designated Noor Islamic Bank branches during working hours, or 24 hours a day through the bank’s online banking system. Existing Noor Islamic Bank card customers can also redeem Noor Points for flydubai vouchers, which can be used to purchase flights and other ancillary products and services……………………………………….Full Article: Source

At this year’s NBAD’s Global Financial Markets Islamic Forum in Abu Dhabi, I was requested to make a presentation on an Islamic sovereign wealth fund (SWF). That’s an appropriate topic for an appropriate audience at the appropriate time.

The Islamic finance industry, as part of Islamic finance 2.0, needs to move away from product pushing to a more holistic approach, which includes big “ticket” offerings while becoming “conventionally efficient.” An Islamic SWF would fill both roles for asset management……………………………………….Full Article: Source

The Central Bank of Oman (CBO) has appointed Ernst & Young to advise the apex bank on formulating a separate set of rules and regulation for Islamic banking institutions.

The international audit firm, which has an Islamic Financial Services Centre in Bahrain, has already started working on the project. Ernst & Young Islamic banking professionals are already in Muscat to work on the project……………………………………….Full Article: Source

Sarasin-Alpen (Oman) LLC, a subsidiary of Bank Sarasin (Switzerland), says it has developed an entire suite of Wealth Management solutions based on guidelines in Quran. “The bank is targeting high net worth individuals in Oman,” Fares Mourad, Head of Islamic Finance, Bank Sarasin, said in an exclusive interview with the Observer.
The Islamic Wealth Management suite provides a full spectrum of Shariah-compliant banking products and services, estate and succession planning, financing and asset management, offering money market and structured products such as Wakala, Murabaha and Maraya, he added……………………………………….Full Article: Source

The Islamic Development Bank (IDB) is keen to develop Wakf properties in India, said K. Rahman Khan, deputy chairman of India’s upper house of Parliament, while lauding the bank’s enthusiasm to boost ties with India.
“The bank is optimistic of working with the Indian government for the uplift of Muslims and the people of India,” Khan said at a press conference. Khan, who held a series of meetings with IDB officials including its chief Ahmad Muhammad Ali, said they explored ways to cooperate in different fields……………………………………….Full Article: Source

The National Vice-President of the Pentecostal Fellowship of Nigeria and presiding Bishop, Sword of the Spirit Ministries, Bishop Wale Oke, has asked the Oyo State government to forget Islamic banking and its proponents so as to allow peace reign in the state.

Oke, in a press statement made available to our correspondent in Ibadan said, “My attention has been drawn to a news item both in the print and electronic media on the ongoing move of the Oyo State Government to partner with Saudi Arabia to establish Islamic banking in the state……………………………………….Full Article: Source

HSBC Saudi Arabia has launched its new HSBC Amanah Commodity Index Fund. The objective of this open-ended Shariah compliant fund over the long term is capital growth by investing in commodities in a Shariah compliant manner, whereby the fund will track the performance of a commodity index.

Commodities are raw materials used for creating products from petroleum to household items……………………………………….Full Article: Source

Cape Town-based Oasis Group Holdings is the pioneer of Shariah-compliant asset management, retirement and investment fund products - both equity and property funds and REITs - in South Africa since it launched its first Islamic fund in August 1998, the Oasis Crescent Global Equity Fund.
Over the last few years, the group has ventured abroad and now aims to build the first global Shariah-investment fund brand, complete with a global distribution capability and a global asset management capacity……………………………………….Full Article: Source

Islamic financial institutions in general are playing a “wait-and-see” game regarding Egypt, one of the laboratories of the contemporary Islamic finance movement and currently in political and economic transition with elections - both parliamentary and presidential - due later this year.

This despite the fact that in June the board of directors of the Egyptian Financial Supervisory Authority (EFSA) approved a proposal to amend the Executive Regulation of Capital Market Law No. 95 of 1992 regarding the rules governing issuing and trading in sukuk………………………………………Full Article: Source

The government of Gabon is to change its financial laws to authorize Islamic finance, in order to attract Shari’ah compliant FDI as part of the economic reforms it is currently implementing.

Gabon, one of the most sparsely populated African countries, with only 1.7m people, boasts rich oil reserves, significant forestry resources and major gold, diamond and manganese deposits. The government this week inaugurated its first Special Economic Zone, an initiative that has already attracted investments of $1.8bn and now has an eye on SWFs and MENA government money……………………………………….Full Article: Source

The total amount of foreign investments in Azerbaijan’s economy hit 1.586 billion manat in January-August 2011, or 42.4 percent more compared to the same period of last year.
Some 9.6 percent or 152 million manat of total foreign investments in the country was made by the international financial institutions (IFIs). This is 43.6 percent more compared to the same period of 2010……………………………………….Full Article: Source