Bank Muscat, Oman’s largest bank by assets, will set up a sharia-compliant banking arm, it said in a statement, becoming the latest financial institution to announce plans to operate in the sultanate’s fledgling Islamic finance sector.
Operating under the Meethaq brand name, the bank will function independently from the conventional arm and has appointed a three-member sharia board………………………………………..Full Article: Source

Taking advantage of its late initiation into Islamic banking, Oman will offer a unique model for the sector, which will be a combination of different models available across the world, according to Central Bank of Oman (CBO).
H E Hamood Sangour al Zadjali, executive president of CBO, said that Oman’s Islamic banking model will be a combination of the best available models across the world rather than a copy of any single one………………………………………..Full Article: Source

Governor of Qatar Central Bank (QCB) Sheikh Abdullah bin Saud Al-Thani said Monday Islamic banks’ role was growing thus attracting regional and international attention.
Sheikh Abdullah, addressing the 8th International Conference on Islamic Economics and Finance (ICIEF), said QCB realized that the combination between traditional and Islamic banking activities could undermine the free and transparent competition between banks He expressed confidence in the banking role of the local islamic banks………………………………………..Full Article: Source

There would be no rollback of the decision that requires traditional banks engaged in Islamic banking to stop the practice by the year-end. This was made clear by the Governor of Qatar Central Bank (QCB) HE Sheikh Abdullah bin Saud al Thani.
The move to prohibit Islamic banking by regular banks has to do, with issues related to the supervision and control mechanisms as well as matters relating to the monetary policy of the country, the QCB governor added………………………………………..Full Article: Source

By the end of 2011, the Qatari market will not have Islamic branches of commercial banks, as a result of the Decision of Qatar Central Bank (QCB) issued in February stipulating the complete closure of Islamic counters.
QCB fixed a deadline for the commercial banks to liquidate their Islamic activities by the end of 2011 and thus, the Islamic banking services will be limited to the Islamic banks alone………………………………………..Full Article: Source

Bank Islam Malaysia is working towards its third initial public offering (IPO), in line with the bank’s efforts to increase its non-fund based income.
According to Managing Director Datuk Seri Zukri Samat, Bank Islam Malaysia completed the listing of two companies on Bursa Malaysia earlier this year and is looking to get further mandates to boost its non-fund based income. “We have submitted the application for the third IPO candidate and are waiting for approvals,” he said………………………………………..Full Article: Source

The central bank is currently at an advanced level of development of a comprehensive liquidity management solution for Islamic Banking Institutions (IBIs) following extensive efforts made both by the industry and the State Bank of Pakistan (SBP), the Governor, SBP, Yaseen Anwar has disclosed.
He said that this comprehensive liquidity management solution would include i) development of Islamic interbank money market, ii) development of Islamic Interbank Offered Rate (IIBOR) for use as a benchmark for pricing of Islamic finance products, iii) transformation of a sizeable portion of conventional sovereign debt in the books of central bank into Shariah-compliant debt,……………………………………….Full Article: Source

UAE banks have built up sufficient reserves and boosted their capital base after the 2008 global financial distress and this will enable them to withstand a fresh crisis in the future, the central bank chairman has said.
Khalil Foulathi said stress tests conducted by the International Monetary Fund on the UAE’s 23 national banks and 28 foreign units showed they are highly capitalized and in a “good health.”……………………………………….Full Article: Source

Al Hilal Bank, a progressive Islamic bank, won as ‘Best Retail Bank (GCC)’ during the 6th edition of the prestigious Islamic Business & Finance Awards held recently in Dubai. This marks the fourth major industry recognition for the bank this year.
Al Hilal Bank won the most number of votes under the ‘Best Retail Bank’ category from readers of the Islamic Business & Finance magazine – the authoritative voice of the global Islamic finance industry with a worldwide circulation spanning all continents (Press Release)

Financial companies are looking for alternative financing in the form of sukuk in Malaysia as the eurozone debt crisis cripples the euro bond issuance. As a result, foreign issuance of sukuk in Malaysia is expected to increase by 25-30 percent next year owing to the global economic crisis.
Sukuk refers to the Islamic equivalent of bonds. Since fixed income and interest bearing bonds are prohibited in Islamic, sukuk securities are structured to comply with Islamic law………………………………………..Full Article: Source

Kazakhstan, where Muslims make up over 70 per cent of its 16-million population, has invited Malaysians to invest in the country’s Islamic finance and halal food sectors which are set to thrive.

Manager of National Export and Investment Agency of Kazakhstan (KAZNEX INVEST), Abilkair Bolatbayev, said these sectors offered huge opportunities for Malaysian investors……………………………………….Full Article: Source

What makes an Islamic finance qualification special? And what makes it special enough for the industry’s leaders to award it their most coveted prize? If Ethica’s win this weekend at the Global Islamic Finance Awards (GIFA) is anything to go by, then the most critical element for bankers and students is that the qualification have real-world application.
Sameer Hasan, Business Director at Ethica, received the award and said, “People are frustrated with certificates they can’t use: the training is mostly theoretical and the certificates do little to attract recruiters. Ethica’s CIFE graduates get hired in a tough job market because we try to go beyond theory while also helping students land jobs.” (Press Release)

The winds of change in Islamic finance are really blowing across the southern tip of the African continent - South Africa to be precise. At close of business on Dec. 21 the deadline for financial institutions to submit proposals for advising the South African government on the structuring and issuance of its debut sovereign Sukuk will expire.
Shortlisted bidders will be informed by Jan. 20, 2012, which means that the global mandate may take a few more months to be issued………………………………………..Full Article: Source

Sukuk markets in Saudi Arabia have seen steady, albeit unspectacular growth, as leading blue chip names — notably Saudi Electricity Co. and SABIC (Saudi Basic Industries Corp.) —have repeatedly tapped the market and a handful of others have followed suit.
The Saudi Stock Exchange Tadawul now has secondary trading platform for sukuk with a total eight of listed issuances at present………………………………………..Full Article: Source

Saudi Arabia is the somewhat reclusive economic superpower of the MENA region. It has the largest population, GDP and oil reserves in the GCC region and is strategically and militarily important on both a regional and global scale.
However, unlike its neighbors the UAE or Bahrain, Saudi Arabia is not a culturally or economically-welcoming place for international business and as such much of Saudi Arabia’s non-oil related business is an internal market………………………………………..Full Article: Source

The Turkish unit of Bahrain’s Albaraka Banking Group has postponed its planned $200 million Sukuk issue. Albaraka had previously said on Dec 11 that it hoped to raise $200 million in an Islamic bond by the end of the week, citing interest from Asian and Arab Gulf investors.
Last month, Albaraka Turk Katilim Bankasi had mandated Deutsche Bank, Emirates NBD, Noor Islamic Bank and QInvest for the Sukuk. It appears the issuance has been postponed because the yields investors expected were too high………………………………………..Full Article: Source

Commercial Facilities Company (CFC), a leading Kuwaiti consumer finance company, has announced the successful completion of a KD50 million ($180 million) local bond issuance in which NBK Capital acted as the lead manager.
CFC is the largest non-bank consumer lender in Kuwait, with gross installment debtors’ portfolio of approximately KD297 million ($1,067 million) as of December 31, 2010, a statement from the company said………………………………………..Full Article: Source

The government will borrow around Rs50 billion through sales of instruments to Islamic financial institutions, a statement said. The State Bank of Pakistan (SBP) will invite tenders on December 20 for sale of three-year government of Pakistan Ijara Sukuk (GIS) from the designated primary dealers, according to the communique issued by the central bank.
The maximum value of the asset under the present issuance programme of the Ijara Sukuk is Rs234.6 billion, the communique said………………………………………..Full Article: Source

Last year Malaysia accounted for 72.5% of total sukuk issued globally. The trend continues unabated this year though the country still has some way to go to become a truly international hub.
Nonetheless, it has become a singular entity with clear prospects, based on a robust regulatory infrastructure, a buoyant domestic issuance market and related institutions, which have set a consistent and enviable run of benchmarks for sukuk issuance. The success of Malaysia in establishing a pre-eminent position in Islamic finance is not happenstance………………………………………..Full Article: Source

Even in retirement he remains the most popular politician to the Muslim “man-and-woman-in-the-street”. Now as an elder statesman, Mahathir Mohamed, the former Malaysian prime minister, continues to give advice whether on the global financial crisis, on the future of the Islamic banking industry, on the Islamic gold dinar, on the future of US dollar as an international trading currency, and on his celebrated spat with arch speculator and fund manager, George Soros, in the aftermath of the Asian financial crisis in 1998.
There definitely is a future for Islamic finance. It would not be spectacular; it would not be the cause of booms and busts………………………………………..Full Article: Source

Qatari commercial banks must transfer accounts from Islamic windows into a portfolio to be held by the central bank until they mature but commentators concerned over future competition in banking.
Qatar Central Bank (QCB) will manage the Islamic assets separately. “These will be carried in a portfolio, outside the activity of their business,” Qatar Central Bank Governor Sheikh Abdullah bin Saud Al Thani told Bloomberg News. “We are not in the business of mixing the Islamic with the non- Islamic by the end of the year.”……………………………………….Full Article: Source

The cost of covering mounting debt is expected to eat into profits at Emirates NBD for years to come, analysts warned as they slashed estimates for the UAE’s biggest bank.
HC Securities lowered its target price by 20.4 per cent to Dh3.90 yesterday after warnings from the bank’s management that higher provisions for bad debts may be necessary………………………………………..Full Article: Source

Emirates NBD PJSC, the United Arab Emirates’ biggest bank by assets, had its price estimate cut 20 percent at HC Brokerage, citing rising loan-loss charges and a possible acquisition of mortgage lender Amlak Finance PJSC.
“We think an Emirates NBD acquisition of Amlak has become more likely and believe Emirates NBD may also have to absorb some of the refinancing needs of government owned entities in 2012, particularly if European and U.S. banks reduce their exposure to the region,” analysts Jaap Meijer and Kareem Ghaly wrote………………………………………..Full Article: Source

Emirates NBD, the UAE’s largest bank by assets, could take over Islamic property finance company Amlak next year. This along with the recent takeover of Dubai bank will adversely impact the bank’s profitability and capitalisation levels, HC Securities, a brokerage firm, said.
The acquisition of Dubai Bank, according to the brokerage, lowered the shareholder value slightly and has a negative impact of one percentage point on Tier 1 capital. The report said there is a chance of Emirates NBD buying Amlak………………………………………..Full Article: Source

Emirates NBD could see its Tier 1 capital ratio fall by nearly 1.1 percentage points if it is forced to absorb embattled property lender Amlak Finance, HC Securities said on Sunday.
ENBD, which is 56-per cent owned by the government of Dubai, has already taken on one debt-ridden financial institution, Dubai Bank, at the behest of the authorities — resulting in a Tier 1 drop of 1 percentage point under the Bank of International Settlements (BIS) ratios, the brokerage said in a research note………………………………………..Full Article: Source

HSBC plans to double the number of branches its Islamic banking arm, HSBC Amanah has in Malaysia as it looks to build a $1bn business in the country and neighboring Indonesia.
The group has identified the two countries as key markets in Asia that will help drive its growth in the coming four to five years, and it is keen to take a lead in the region’s booming Islamic finance sector………………………………………..Full Article: Source

Executive President of the Sultanate of Oman predicts rapid growth for Islamic finance in the Sultanate as the Central Bank develops rules and regulations. HE Hamoud Bin Sangour Al Zadjali, Executive President of the Central Bank of Oman, was speaking at the Oman Islamic Economic Forum, which took place in Muscat on 17 and 18 December.
He said, “These banks need to follow assorted accounting standards in certain cases that are acceptable by the parties who are trading in the stock markets and are in line with international standards………………………………………..Full Article: Source

Islamic banking services in the Sultanate will witness robust growth in the coming days as the central bank will develop general rules and regulations to ensure good governance in these banks, said HE Hamoud Bin Sangour Al Zadjali, Executive President of the Central Bank of Oman.
However, Islamic banks should ensure that their banking transactions are sharia compliant, he added. ……………………………………….Full Article: Source

Given the steady progress strategy of the Sultanate coupled with its dependability on diversified economic sources and the all around efforts in developing its capabilities in Islamic finance, Takaful and the factors in relation to the social responsibility in the Islamic finance sector, the country has a commendable potential to be a pioneer in Islamic banking.
Apart from the current issues in Islamic law covering finance, economic development, role of Zakat and the corporate social responsibility were also discussed. Six working sessions were conducted with special focus on the nation’s potential to be a pioneer in this area………………………………………..Full Article: Source

India must re-examine its stand on Islamic finance and Islamic banking system for inclusive growth, said experts at a workshop, where a group of business and community leaders discussed ways to economically empower Muslims by going beyond government schemes and handouts.
Islamic finance refers to interest free finance/banking and encourages profit-loss sharing. It is banking activity that is consistent with the principles of Islamic law or Shariah which prohibits payment and receipt of interest. Investing or deriving benefits from activities like alcohol, pork, tobacco, gambling, adult entertainment etc. are also prohibited………………………………………..Full Article: Source

Bank Islam Malaysia Bhd (Bank Islam) is working towards its third initial public offer (IPO) in sync with efforts to increase its non-fund based income.
Managing director Datuk Seri Zukri Samat said the bank completed listing of two companies on Bursa Malaysia earlier this year and has been working hard in getting more mandates to increase its non-fund based income………………………………………..Full Article: Source

Dubai Islamic Bank Pakistan (DIBP) has launched the country’s first Islamic priority banking solution, offering customers ’a gateway to an exquisite banking experience’.
A statement from the bank said DIBP’s specially designed priority lounges will provide its customers with a hassle-free banking experience with its dedicated relationship managers. Dubai Islamic Bank Pakistan is offering both a Priority and Platinum Banking solution………………………………………..Full Article: Source

Kuwait Finance House (KFH) CEO Mohammed Al-Omar asserted that the development of skills of KFH employees has no ceiling, and noted that all employees are aware of the importance of improving and upgrading their skills.
It is worth noting that the Development and Research Manager Unit at KFH Adnan Al-Mulla has obtained a PhD degree in his field of work, which prompted Al-Omar to receive him and take a copy of his studies. He went on to say that such academic efforts are highly appreciated, since they allow KFH to offer its clients innovative Islamic services and products………………………………………..Full Article: Source

Takaful Insurance for Africa’s largest shareholder, Cooperative Insurance Company (CIC) is relishing its decision to invest in Kenya’s first Takaful company.
CIC’s GM, Kenneth Kimani, citied TIA’s strong progress and the fact that Takaful in Kenya offers better opportunities for growth than conventional insurance………………………………………..Full Article: Source

Bahrain’s BMI Bank has signed a strategic agreement with regional insurer Medgulf Allianz Takaful. The partnership between Allianz and Medgulf will allow the bank to offer customers a suite of life and non-life Takaful products through its branch network.
The bank’s CEO Jamal Al Hazeem [below] said in a statement: “We are confident that the alliance with Medgulf Allianz Takaful will help us achieve our vision of providing our customers with a comprehensive range of products from a leading insurer… We believe that retail services like bancassurance, amongst others, help enhance our product offering and make our bank a stronger choice for customers within Bahrain.”……………………………………….Full Article: Source

New Jersey-based insurance ratings firm A.M. Best has come out with a set of draft guidelines for rating Takaful firms. The new guidelines address a number of concerns that Takaful firms have, but none more important than the limitations of the Shari’ah compliance rules on the investments available to Takaful firms and the lack of Shari’ah compliant fixed income products like Sukuk.
A.M. Best said: “Takaful companies need to develop and demonstrate that they can apply an adequate risk-based approach to investment management because of the reduced investment opportunities.”……………………………………….Full Article: Source

Eyeing a bigger share of halal industry pie, the Malaysian government has invited all Malaysians to participate in promoting halal industry in the country, regardless of race and religion.
“I encourage Muslims and non-Muslim entrepreneurs to enter the industry even if they start small,” Chief Minister Tan Sri Abdul Taib Mahmud said before launching the Halal Transformation Program 2011 on Saturday………………………………………..Full Article: Source

Qatari commercial banks will be required to transfer accounts from their Islamic divisions into a portfolio to be held by the central bank until they mature, under a rule separating the two kinds of finance.
“These will be carried in a portfolio, outside the activity of their business,” Central Bank Governor Sheikh Abdullah bin Saud Al Thani said in a telephone interview today. “We are not in the business of mixing the Islamic with the non- Islamic by the end of the year.”……………………………………….Full Article: Source

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The investment banking arm of Malayan Banking Bhd and Bahrain’s Gulf International Bank have arranged an 8.5 billion Saudi riyal($2.27 billion) Islamic financing facility for Saudi Binladin Group Limited, the Malaysian bank said on Thursday.
Twelve banks participated in the facility including Abu Dhabi Commercial Bank, Samba Financial Group , Ahli United Bank B.S.C. and Emirates NBD Bank PJSC, Maybank said in a statement………………………………………..Full Article: Source

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The Turkish unit of Bahrain’s Albaraka Banking Group said it had postponed a planned issue of Islamic bonds, saying the yields investors expected were too high.
“Because of the negative environment in international markets the yields international investors are seeking are not matching with our expectation,” the lender said, adding that demand was very good. ……………………………………….Full Article: Source

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The Malaysian sukuk market will see more ringgit-denominated sukuk issuance by investors from Europe and Gulf Cooperation Council (GCC) countries next year, said Amanie Advisors Sdn Bhd director, Baiza Bain.
He said on Thursday this would result in an increase of up to 67% in Malaysia’s contribution to global sukuk issuance. Malaysia accounted for 62.7%, or US$179.1 billion, to global sukuk issuance as of first half of this year with Islamic banking assets worth RM389.3 billion as at end-July, 2011………………………………………..Full Article: Source

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Foreign issuance of sukuk in Malaysia is expected to increase by 25%-30% next year from 10%-15% currently owing to the global economic calamities and eurozone sovereign debt crisis.
Amanie Advisors Sdn Bhd director Baiza Bain said the sukuk issue would be US dollar and ringgit denominated issues mainly from the Gulf Cooperation Council (GCC) and Europe………………………………………..Full Article: Source

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Scomi Group Bhd has received approval from the Securities Commission to issue sukuk worth RM343.1mil in nominal value with tenure ranging from one to seven years.
The sukuk will be issued via its indirect subsidiary KMCOB Capital Bhd, which is a wholly-owned subsidiary of Scomi Oiltools Bermuda Ltd. The latter is a wholly-owned subsidiary of Scomi Oilfield Limited, which in turn is a 76.1% subsidiary of Scomi Group………………………………………..Full Article: Source

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The Islamic bond market has suffered a few knocks and scrapes in recent years, including its first defaults and a continuing, often heated debate over how the instruments should be structured. But it has remained resilient amid the global financial turmoil.
The yield of the HSBC-Nasdaq Dubai sukuk index has widened from the lows earlier this year to about 4.15 per cent at the end of November, but is still tighter than the 4.8 per cent yield at the start of the year. The index hit a high of more than 14 per cent at the peak of the financial crisis………………………………………..Full Article: Source

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Australia’s first Islamic fund manager Crescent Wealth is aiming high, but will it deliver? The company “would be happy” with $3 billion under management by 2019, which represents nearly a quarter of the $13bn pool of funds expected to be allocated to Islamic fund managers by then.
That’s a big number given the Crescent Australian Equity Fund, which launched in October, had about $US5.5 million under management, but it isn’t insurmountable given Crescent is the first and only Australian wealth manager specialising in Islamic investing………………………………………..Full Article: Source

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Dr. Sheikh Khalid bin Thani Al Thani, Chairman of Qatar International Islamic Bank (QIIB) and Vice Chairman of Qatari Businessmen Association discussed the prospects of establishing both an Islamic bank and an Islamic insurer in a meeting with Moroccan Prime Minister-designate Abdelilah Benkirane.
During the meeting, Sheikh Dr. Khalid bin Thani Al Thani expressed a great desire to enhance and promote trade relations, especially in the field of Islamic banking services. The QIIB Chairman proposed the idea of establishing an Islamic bank and Islamic insurance company in Morocco that would be 51 per cent owned by local interests and 49 per cent owned by QIIB………………………………………..Full Article: Source

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Standard Chartered bank has opened discussion with regulators to offer Islamic banking services in Nigeria and Oman now that both countries are revamping their regulatory environments to encourage Islamic finance.
The global head of Islamic banking Wasim Saifi said on Sunday that the company, which already has a strong conventional presence in both markets, was waiting for the countries to finalise their regulatory frameworks for Islamic banking but could offer the services in Nigeria and Oman as early as next year……………………………………….Full Article: Source

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The global economic crisis will have no significant impact on Indonesia’s sharia banking industry, Bank Indonesia (BI) says. BI deputy governor Halim Alamsyah said Wednesday sharia banks have no direct exposure to international banking risks as they deal only on domestic businesses.
Halim said on the contrary, sharia banks would have greater opportunity to deal with the productive real sector in 2012………………………………………..Full Article: Source

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The launch of Tanzania’s first Islamic bank, Amana Bank, last monht is the latest development in Tanzania and East Africa’s emerging Islamic finance industry. With about half the population being Muslims there is a huge potential for Shariah-compliant financial services in Tanzania.
The headquarters of the bank are in the Kariakoo trade centre in the city, the hub of commerce in Tanzania, where a significant portion of merchants are Muslims………………………………………..Full Article: Source

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Modern Islamic banking was arguably founded in Egypt more than 40 years ago, and while north Africa is home to more Muslims than anywhere except Indonesia, the region has remained an industry backwater for years.
There are fully fledged Islamic banks in Algeria, Egypt and Tunisia, and Islamic “windows” at conventional banks in Morocco and Algeria. But overall, the Islamic share of banking assets in north Africa is less than 1 per cent, according to McKinsey, the management consultancy………………………………………..Full Article: Source

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