Central Bank of the UAE’s lending rules may violate Shari’ah; Islamic lenders ask for rethink.Citing unnamed sources, Dubai-based Emarat Alyoum Arabic language daily reported that the higher coordination committee for Islamic banks in the UAE has submitted proposals for common standards, saying that some of the CBUAE’s new lending rules introduced this year violate Shari’ah banking principles.
Emarat Alyoum said a memorandum has been sent to the CBUAE and the Islamic lenders are now waiting for the central bank’s response………………………………………Full Article: Source

An Islamic bank, Amana Bank Limited, that would be observing Sharia regulations, was on Thursday launched in Dar es Salaam. The Islamic banking system does not charge or accrue interests.

The Board of Directors Chairman, Mr Haroon Pirmohamed, said the Bank is a result of a need for an alternative to conventional banking system that provides ethical and fair modes of banking for all………………………………………Full Article: Source

In spite of the economic turmoil in Europe, the economic problems in the US and the unrest in Bahrain, this year’s World Islamic Banking Conference (WIBC)proved to be the biggest to date. “In the current economic climate, the attendance at this year’s event was just magnificent,” said event organiser David McLean.

“We broke through the 1,300 delegate numbers and had more sponsors than ever before which is remarkable and is a testament to Bahrain’s role as the capital of the Islamic banking industry………………………………………Full Article: Source

Qatari group Retaj is planning an investment of $500 million in Turkey in a bid to develop hotels and residences run along an Islamic model in two big cities.

“Turkey has become the 16th largest economy in the world and sixth largest economy in Europe, and this made us want to invest in Turkey,” Retaj Board of Directors member Bin Johar al-Mohammed told Anatolia news agency in a recent interview………………………………………Full Article: Source

The global financial crisis has given the Islamic finance industry a great opportunity. The obvious flaws in conventional finance have created great interest in the Islamic financial model, Central Bank of Bahrain (CBB) Governor Rasheed Al Maraj said.
“This should provide the basis for the industry to sustain a period of strong growth for the rest of this decade,” he said. The growth opportunities are especially strong as Islamic finance has its largest presence in rapidly growing economies that have been least affected by the global financial crisis………………………………………..Full Article: Source

Abu Dhabi Islamic Bank (ADIB) has received more than $2 billion in orders for its $500 million Islamic bond, according to a banker familiar with the deal.
Fifty-seven per cent of the orders came from investors in the Middle East, 13 per cent from Asia and 29 per cent from Europe, the banker said, declining to be identified because the information is private………………………………………..Full Article: Source

Abu Dhabi Islamic Bank (Adib) rose the most in three months, as the country’s second-biggest Sharia-compliant lender proceeded with its roadshow to sell a $500 million five-year sukuk.
Adib’s shares rose 1.2 per cent to Dh3.18 a piece on the Abu Dhabi Securities Exchange (ADX) yesterday. The stock rose as much as 1.6 per cent during the trading session. Citigroup, HSBC Holdings, Standard Chartered, Nomura and National Bank of Abu Dhabi are arranging the sale, Bloomberg News reported on Tuesday………………………………………..Full Article: Source

Kuveyt Türk has just issued its second Islamic sukuk security by pioneering the first rent certification for Turkey. This $350 million transaction will be used toward investment and project financing, according to the company’s statement.
“Kuveyt Türk’s two sukuk structures have received considerable interest. They are an important source for Turkey’s long-term development aspirations,” said Kuveyt Türk’s Board of Directors’ President Mohammed al-Omar………………………………………..Full Article: Source

Kuveyt Turk Participation Bank issued $350 million worth of Islamic bonds, also called sukuk, at a signing ceremony held on Tuesday in İstanbul.
Capital Markets Board (SPK) President Vedat Akgiray and Kuveyt Turk’s chairman, Mohammad Al-Omar, Vice Chairman Abdullah Tivnikli and CEO Ufuk Uyan were in attendance at the ceremony, agreeing that the sukuk issuance should be seen in the context of the growing demand for the attractiveness of Turkey’s low risk to Islamic and international investors………………………………………..Full Article: Source

While Kuwait has to date played a relatively small role in the fast-growing global market for sukuks, or Islamic bonds, this could change, should lawmakers develop and implement a more robust legal framework to regulate the issuance of sharia-compliant debt, Global Arab Network reports according to OBG.
In the meantime, however, two entities with strong ties to the country – Kuwait-based Gulf Investment Corporation (GIC) and Kuveyt Turk participation bank, which is 62% owned by Kuwait Finance House (KFH) – have in recent months raised funds by selling sukuks………………………………………..Full Article: Source

Qatar may issue a new sovereign bond in coming weeks as it seeks to take advantage of healthy demand for high-rated Gulf debt and lock in funding at attractively low interest rates.
The world’s top liquefied gas importer and one of its wealthiest nations has mandated six banks to conduct roadshows with investors and a bond issue may follow, according to lead managers on Tuesday………………………………………..Full Article: Source

Norton Rose has bolstered its reputation in the Islamic finance field after advising Indonesia on a $1 billion sukuk issuance, as the country attempts to increase its burgeoning currency reserves and targets the fastest economic growth since the Asian financial crisis of 1998.
The issuance, which closed on Nov. 21, was structured as a sukuk al ijara (sale and lease back) and has a maturity of seven years, with periodic distributions of four per cent per annum, the law firm said in a statement………………………………………..Full Article: Source

Five trillion rials (some $460 million) in bonds will be offered as of Saturday at the Tejarat Bank branches of Iran nationwide to finance the South Pars gas field projects, National Iranian Oil Company’s managing director, Ahmad Qalebani, said.
Iran will also issue $15 billion in sukuk (Islamic Sharia-based) bonds in the current year to be invested in the domestic oil industry, oil minister Rostam Qasemi said earlier this month………………………………………..Full Article: Source

Abu Dhabi National Energy Co’s (TAQA) move to buy back $1.5 billion in bonds from investors — at a juicy premium — will help the company manage its debt levels at a time of increasingly expensive bank loans, but lower-rated Gulf corporates may struggle to follow a similar strategy.
A-rated TAQA, 75 percent owned by the government of Abu Dhabi, launched a tender offer this week to buy back its bonds maturing in 2012, and enlisted banks to arrange a possible new bond issue under its global programme………………………………………..Full Article: Source

The Islamic Development Bank (IDB)Group will continue assisting in building a sustainable Islamic financial system and sound regulatory framework both in Bahrain and Malaysia.
“A system of proper corporate governance processes in line with Islamic principles must be in place in our financial institutions,” said Khalid Mohammad, chief executive officer of Islamic Corporation for Development of the Private Sector (ICD), IDB………………………………………..Full Article: Source

Bahrain’s economic growth is expected to be positive in the third quarter as the economy has already overcome a major part of the impact stemming from social unrest, its central bank governor said on Wednesday.
Asked about the impact of the unrest on the economic growth, Rasheed Al-Maraj told reporters: “A major part of that we are already (passed) as the figure shows for the second quarter a nd hopefully for the third quarter.”……………………………………….Full Article: Source

The banks in the UAE are in a good position and should not be affected by turmoil in global financial markets, the Opec country’s central bank said on Wednesday.
In November, the central bank governor of the world’s No. 4 oil exporter said Europe’s worsening debt crisis was a source of concern, while its economy minister said that could slow the UAE economic growth to around 3 per cent next year………………………………………..Full Article: Source

Controversy that attended the issue of non-profit (Islamic) banking in Nigeria was yet to settle down when it appeared that Malam Sanusi Lamido Sanusi, Governor of Central Bank of Nigeria, CBN, was on another collision course with the Christian commu-nity in the country as he was said to have invested the nation’s $5 million in an Islamic organisation known as International Islamic Liquidity Management Corporation.
The investment, according to reports, automatically makes Nigeria, a secular nation, to be a full member of the Islamic body………………………………………..Full Article: Source

Thousands of miles away and eight hours ahead, representatives from Bermuda are making a big push for a slice of a world financial market worth an estimated $1 trillion.
At the 18th World Islamic Banking Conference held in Bahrain this week, Business Bermuda and an entourage of Bermuda advisers held court with the world’s Islamic financial industry leaders to show the Island is open for their business and can handle Shariah-compliant financial structures………………………………………..Full Article: Source

The UK and London will remain the world’s leading international and Islamic financial centre. That was the message from British Ambassador Iain Lindsay.
“Islamic finance, like every other type of financial activity, benefits from the UK’s combination of experience, variety of skills, geographic location, infrastructure, transparency and openness,” he said. “The UK recognises the tremendous opportunities that Islamic financial services have to offer………………………………………..Full Article: Source

Legal & General Gulf Takaful, a unit of Legal and General Gulf, may set up business operations in Malaysia at some point to meet the growing demand for takaful products, its managing director Manfred Maske said.
“Our first stage of growth is to establish in the Gulf Cooperation Council (GCC), and once we have that we will take out our expertise broader and for sure a market like Malaysia is on that list,” he said………………………………………..Full Article: Source

In most of North Africa, political change triggered by the Arab Spring uprisings is set to give Islamist parties major influence on economic policy for the first time, after decades in which dictatorial governments kept economics and religion apart.
The Islamist Ennahda party will dominate Tunisia’s coalition government after last month’s elections. Islamist groups are expected to do well in Morocco’s parliamentary polls this Friday, and in a series of Egyptian elections starting late this month. Libyan elections are due next June and the country’s interim leader, Mustafa Abdel Jalil, has already urged the country to “purify” its financial laws along Islamic lines………………………………………..Full Article: Source

Islamic finance assets around the world are expected to climb 33 percent from their 2010 levels to $1.1 trillion by the end of 2012, boosted by the aftermath of the Arab Spring uprisings and dissatisfaction with conventional finance in the wake of the global debt crisis, consultants Ernst & Young said in a report on Tuesday.
Growth in the Middle East and North Africa will be particularly strong, with assets rising to a projected $990 billion by 2015 from $416 billion in 2010, as new countries open up to Islamic finance, the report predicted………………………………………..Full Article: Source

A group of 16 banks resolved a quandary that has dogged the $1 trillion Islamic financing market for nearly three decades: how to represent rates on interbank funding when Islamic principles prohibit firms from charging interest.
The banks—working with industry associations and data provider Thomson Reuters—created a reference rate called the Islamic Interbank Benchmark Rate, or IIBR, which was put into use for the first time Tuesday. The banks say the solution, which complies with Islamic moral codes, known as Shariah, lies in considering money flowing between banks as investments that depend on the performance of underlying assets, rather than as interest-bearing loans………………………………………..Full Article: Source

A consortium of Islamic banks and financial industry associations launched the industry’s first international Islamic interbank rate on Tuesday, offering a sharia-compliant alternative to traditional interest-based benchmarks.
The Islamic Interbank Benchmark Rate (IIBR), based on rates contributed by 16 Islamic banks and Islamic sections of conventional banks, is the average expected return on sharia-compliant, short-term interbank funding………………………………………..Full Article: Source

Islamic bond issues, which have outpaced the conventional bonds industry in recent months, should continue to show strength into the first quarter of 2012 as borrowers seek better pricing and alternative funding amid the global debt crisis, Islamic bankers said.
Both conventional and Islamic institutions, as well as global sovereigns, have been flocking to the Islamic bond, or sukuk, market, creating an unusually active fourth quarter………………………………………..Full Article: Source

RB-Hicom Bhd is planning to sell RM500mil of Islamic bonds to fund working capital and refinance debts, according to a note sent to investors.
The syariah-compliant debt, or sukuk, which pay returns from assets that comply with the religion’s ban on interest, was part of an existing RM1.8bil medium-term programme, the note said………………………………………..Full Article: Source

Senegal plans to meet investors before the end of the year before a potential debut sovereign Islamic bond, or sukuk, a senior executive at a unit of the Islamic Development Bank said on Tuesday.
The sukuk will be a dual-currency offering, in Senegalese francs and a foreign currency, possibly euro, Khaled Mohammed Al-Aboodi, chief executive of the Islamic Corporation for the Development of the Private Sector, said………………………………………..Full Article: Source

Abu Dhabi Islamic Bank has issued price guidance for a $500 million five-year Islamic bond, or sukuk, which will price later on Tuesday, arranging banks said.
Pricing guidance has been set at 250 basis points over midswaps, plus or minus 5 bps, with books due to close at lunchtime London time and final pricing earmarked for soon after, a source at a lead said………………………………………..Full Article: Source

MMC Corp Bhd’s wholly-owned subsidiary Senai Airport Terminal Services Sdn Bhd has established an Islamic medium-term notes programme worth RM330mil.
The proceeds will be used to finance, among others, the development of Sultan Ismail International Airport in Johor Baru and 1,100ha at the airport into a cargo and logistics hub, high-tech industries park and mixed development known as Senai Airport City………………………………………..Full Article: Source

Qatar may issue a new sovereign bond in coming weeks as it seeks to take advantage of healthy demand for high-rated Gulf debt and lock in funding at attractively low interest rates.
The world’s top liquefied gas importer and one of its wealthiest nations has mandated six banks to conduct roadshows with investors and a bond issue may follow, according to lead managers. ……………………………………….Full Article: Source

Islamic banking’s market share of all banking assets in Gulf crossed the 25 per cent threshold in 2011, according to Ernst & Young’s inaugural World Islamic Banking Competitiveness Report 2011 published on Tuesday.
Islamic banking assets in the Middle East and North Africa (Mena) increased to $416 billion in 2010, a five-year compounded annual growth rate of 20 per cent compared to less than nine per cent for conventional banks. Currently the segment has a market share of 14 per cent in the region………………………………………..Full Article: Source

Islamic banks operating in the UAE have objected to new lending rules enforced by the Central Bank early this year and requested amendments for their own business, saying some of the new rules violate Shariah banking.
The higher coordination committee for the Islamic banks said it had submitted proposals to the central bank asking for common standards for all dealings in Shariah-compliant banks in the second largest Arab economy………………………………………..Full Article: Source

Bahrain is keen to further establish partnerships with international Islamic finance centres including Malaysia to develop the industry further, said Central Bank of Bahrain, Banking Supervison executive director Khalid Hamad.
He said the central bank will remain active in developing industry standards and the standardisation of market practices via the Islamic Financial Services Board, Accounting and Auditing Organisation for Islamic Financial Institutions and International Islamic Financial Market………………………………………..Full Article: Source

Khalid Hamad Abdul-Rahman Hamad, Executive Director - Banking Supervision, Central Bank of Bahrain said, “Bahrain has a long and proud history in supporting the progress of Islamic finance. The Kingdom continues to play a pioneering role in the advancement of industry standards, best practices and in developing a strong regulatory structure. We look forward to welcoming back the global stage of the 18th Annual World Islamic Banking Conference to the Kingdom of Bahrain and to continuing its tradition of supporting growth and innovation in the international Islamic finance industry.
Shaikh Mohamed Bin Essa Al-Khalifa, Chief Executive of the Bahrain Economic Development Board said, “Bahrain continues to be widely recognised as a global leader in Islamic Finance, and is also home to a number of central bodies which set the standards for the industry across the globe………………………………………..Full Article: Source

The Council of the Islamic Financial Services Board (IFSB) has appointed the Governor of the Central Bank of Bahrain (CBB), HE Rashid Mohammed Al Maraj as Chairman, effective January 2012.
This is the second time the IFSB chair is with Bahrain. HE Sheikh Ahmad Al Khalifa, then Governor of Bahrain Monetary Agency was the inaugural Chairman of the IFSB Council for 2003. The Governor of the Qatar Central Bank, HE Sheikh Abdullah Saoud Al-Thani will be Deputy Chairman for 2012. The Chairmanship of the IFSB Council is on an annual rotational basis………………………………………..Full Article: Source

Fitch Rating has affirmed Abu Dhabi Islamic Bank’s (ADIB) Long-term Issuer Default Rating (IDR) at ‘A+’ with a Stable Outlook and downgraded its Viability Rating (VR) to ‘bb’ from ‘bb+’
The downgrade of the bank’s VR reflects concerns about ADIB’s weaker asset quality trends, particularly its high exposure to real estate and rising unreserved impaired loans. The bank’s Fitch core capital (FCC) ratio is also low compared to peers. The VR also reflects ADIB’s sound balance sheet liquidity, healthy pre-impairment operating profit and strong franchise in the UAE………………………………………..Full Article: Source

Doha Bank, Qatar’s fifth largest bank by market capitalization, sees a profit growth of 8 to 10 percent next year and is looking at options to sell its Islamic finance division, its deputy chief financial officer said on Tuesday.
“Our profit growth will be in line with the market … 2012 will be bit quiet,” Sanjay Jain, deputy chief financial officer for Doha Bank told reporters on the sidelines of a conference in Dubai………………………………………..Full Article: Source

Hong Leong Bank Bhd has extended the group’s voluntary separation scheme (VSS) to employees of Hong Leong Islamic Bank (HLISB). This follows the completion of the merger with EONCAP Islamic Bank on Nov 1, said HLISB CEO Raja Teh Maimunah Raja Abdul Aziz.
“Like in any merger, there will be streamlining of operations, support services, and infrastructure for synergies of productivity and efficiency,” she said………………………………………..Full Article: Source

Al Baraka Banking Group (ABG) has become a registered user of Bait Al Bursa, the Islamic finance division of the Bahrain Financial Exchange (BFX). The BFX Bait Al Bursa’s e-Tayseer, aMurabaha liquidity management platform, will help streamline Al Baraka Banking Group scheduling and execution of its Murabaha transactions.
Adnan Ahmed Yousif, President & Chief Executive & Member of the Board of Directors of ABG said, “We are very pleased with our decision to become a registered user of Bait Al Bursa. Our group will benefit greatly from the advantages of its first product e-Tayseer which we trust will further strengthen our Murabaha dealings efficiencies and we wish the BFX as a whole all the best in delivering their future plans.”……………………………………….Full Article: Source

Maybank Islamic Berhad has joined forces with Maybank MEACP of Singapore to launch a $500 million Asia-focused clean energy private equity fund.
In a statement announcing the fund, Maybank Investment Bank CEO Tengku Dato’ Zafrul Tengku Abdul Aziz said the 10-year private equity vehicle will invest in wind, solar, geothermal, small hydroelectric, biomass, biofuels and energy efficiency projects. The fund will invest in the Asia-Pacific region with a focus on countries like China, India, Indonesia, Malaysia, Thailand, the Philippines, Vietnam, Cambodia and Laos………………………………………..Full Article: Source

Keeping an eye on the world underprivileged, Malaysia is planning to set up a global zakat fund to help millions of poor people around the globe.
“The Endowment, Zakat and Haj Department (JAWHAR) is in the midst of setting up the World Zakat Organization and is in need of sponsorship from other Muslim countries,” said Jamil Khir Baharom, a Minister in the Prime Minister’s Department, Bernama news agency reported Tuesday, November 22………………………………………..Full Article: Source

Financial organisations from Bermuda and Luxembourg will be making their first appearance at this year’s World Islamic Banking Conference. And there will be a return of representation from Singapore as well as a strong turnout from Malaysia.
“This year’s event will be at least as strong as last year’s with forums being hosted by both the UK and, for the first time, France, reflecting the growing importance of Islamic finance in Europe,” said event organiser David McLean………………………………………..Full Article: Source

King and Spalding and its affiliated office in Riyadh, the Law Office of Mohammad Al-Ammar, advised Jeddah-based AlAhli Takaful Company in its proposed 80 million Saudi Arabian Riyal ($21m) capital increase through a rights issue.
The company published a prospectus for the rights issue after receiving approval from the Saudi Arabian Capital Markets Authority………………………………………..Full Article: Source

Takaful Emarat, the UAE’s first dedicated life and health takaful provider, has strengthened its offering with the launch of individual health insurance plans. The new health insurance plans will be economical with an extended scope of cover including international coverage, catering to the diverse health care needs of individuals and their families.
Earlier this year Takaful Emarat signaled its intent to grow its market share in the UAE with the launch of a suite of individual life saving plans. The personalised protection and saving plans offer customers flexible terms of protection as well as access to a wide range of Shariah compliant investment funds managed by renowned global fund managers………………………………………..Full Article: Source

A consortium of Islamic banks and financial industry associations launched the industry’s first Islamic interbank rate on Tuesday, providing a sharia-compliant alternative to traditional interest-based benchmarks.
The Islamic Interbank Benchmark Rate (IIBR), based on rates contributed by 16 Islamic banks and Islamic sections of conventional banks, is the average expected return on sharia-compliant, short-term interbank funding………………………………………..Full Article: Source

Saxo Bank, the online trading and investment specialist, has enabled its clients to identify and trade Islamic compliant stocks and ETFs on more than 25 exchanges worldwide. The Bank selected IdealRatings Inc., a leading global Islamic compliant fund management service provider, as the most reliable source for identifying Islamic compliant instruments globally.
The compliance reasoning is based on commonly accepted and transparent Islamic guidelines defined by IdealRatings and Shariah Review Bureau with operations in Jeddah, Bahrain and Saudi Arabia and Manama. More than 12,000 stocks and Exchange Traded Funds (ETFs) are screened and researched on a monthly basis by IdealRatings. (Press Release)

Private client interest in Islamic financial products is growing at record levels, the Middle Eastern head of Saxo Bank said today. The Danish bank and online brokerage has begun offering Middle Eastern investors access to internationally-listed Islamic equity products, aiming to capitalise on the booming demand for Shariah-compliant cash and exchange-traded fund products.
The bank has partnered with Middle Eastern fund manager IdealRatings to identify compliant stocks and equity-based ETFs across 25 international exchanges, offering local clients access to a broader range of investment options……………………………………….Full Article: Source

Albaraka Banking Group’s Turkish unit Albaraka Türk has mandated four banks on a series of investor meetings and may issue an Islamic bond as early as next month, a banker familiar with the matter said on Monday.
“Albaraka Turk mandated Deutsche Bank, Emirates NBD, Noor Islamic Bank and QInvest to arrange fixed income meetings in Asia, Europe and the Middle East starting Nov 26,” the banker, who asked not to be named, told Reuters………………………………………..Full Article: Source

Islamic bond issues, which have outpaced the conventional bonds industry in recent months, should continue to show strength into the first quarter of 2012 as borrowers seek better pricing and alternative funding amid the global debt crisis, Islamic bankers said on Monday.
Both conventional and Islamic institutions, as well as global sovereigns, have been flocking to the Islamic bond, or sukuk, market, creating an unusually active fourth quarter. Debt woes in Europe and a rush to the market before the window for issuance closes ahead of the holidays have intensified activity, but it should regain momentum in the first quarter………………………………………..Full Article: Source