Sun, Jan 17, 2021
A A A
Welcome bhaimia
RSS

Islamic Finance Briefing - Archive | January, 2012

Malaysia: Sukuk dominates 2011 fund-raising activities

Posted on 31 January 2012 by Laxman  |  Email|Print

Ringgit-denominated sukuk issuances dominated fund-raising activities approved by the Securities Commission (SC) in2011, accounting for RM78.9 billion out of RM118.9 billion total funds approved through the capital market.
In its Fourth Quarter 2011 Scorecard released today, the SC said more than half of the amount to be raised from sukuk issuances was approved during the fourth quarter, through 15 ringgit-denominated sukuk issues which were set to raise RM41.7 billion from the market………………………………………..Full Article: Source

Dana Sukuk yield soars to 2-week high on payment concern

Posted on 31 January 2012 by Laxman  |  Email|Print

Akos KutiThe yield on Dana Gas PJSC (DANA)’s $1 billion Islamic bonds jumped to the highest level in two weeks as the United Arab Emirates energy company reported full-year results without providing an update on the sukuk repayment.
The rate on the 7.5 percent sukuk due in October climbed 79 basis points to 64.69 percent, the highest since Jan. 16, at 5:35 p.m. in Dubai, according to data compiled by Bloomberg. The price dropped to 68.17 cents on the dollar………………………………………..Full Article: Source

Dana profits treble but answers sought on $1bln Sukuk repayment

Posted on 31 January 2012 by Laxman  |  Email|Print

Profits at Dana Gas, an oil and gas producer based in Sharjah, more than trebled last year on the back of increased production and surging crude prices. The reaction on the stock market remained muted, however, as the company remained silent on its strategy to repay a US$1 billion (Dh3.67bn) sukuk maturing in October.
Net income rose to Dh506 million from Dh158m in 2010. Gross revenue jumped 43 per cent to Dh2.53bn………………………………………..Full Article: Source

Nasdaq Dubai to widen debt market role

Posted on 31 January 2012 by Laxman  |  Email|Print

Nasdaq Dubai has become the first securities exchange to join the Gulf Bond and Sukuk Association (GBSA) in a move that will strengthen the development of the region’s debt markets.
Nasdaq Dubai is the region’s largest exchange for sukuk, with 15 listings with a total nominal value of $10.6 billion. It has seven conventional bond listings with a total nominal value of $5.1 billion………………………………………..Full Article: Source

Kazakhstan eyes $2.2 bln in loans for large projects

Posted on 31 January 2012 by Laxman  |  Email|Print

Kazakhstan plans to borrow about $2.2 billion this year from external markets to fund a series of projects, including a transport corridor from China to Europe, its finance minister said. Bolat Zhamishev told a government meeting that state-owned corporations would probably set a benchmark for foreign borrowing before the state itself would consider issuing a Eurobond or Islamic bond.
“We don’t have any need to plug a budget deficit right now,” Zhamishev said. “The issue of Eurobonds or sukuk depends on the market and the external borrowing plans of the corporate sector, so we are monitoring the situation on world financial markets.”……………………………………….Full Article: Source

More must be done to promote Islamic banking to non-Muslims

Posted on 31 January 2012 by Laxman  |  Email|Print

More must be done to promote Islamic banking to non-Muslims, Bank Muamalat chairman Tan Sri Dr Munir Abdul Majid said. He said while the country’s Islamic banking industry had grown, it had not reached its full potential.
“I’m shocked that many non-Muslims in Malaysia think that Islamic banking is only for the Muslims whereas in overseas, some 80% of the sukuk market investors are non-Muslims. “The challenge for us is to get non-Muslims to use our banking services by showing them how Islamic banking products can grow their business,” he said………………………………………..Full Article: Source

IDB will invest in development projects

Posted on 31 January 2012 by Laxman  |  Email|Print

The Islamic Development Bank (IDB) will invest in the construction projects, said the bank’s representative in Iran. Speaking in a ceremony to sign an agreement between the bank and Hormuzgan Regional Water Company on Saturday, Ali Fallahi said the investment, which amount to $3 billion, will be made in the next three years, IRNA reported.
He noted that based on earlier plans, his bank is to invest $650 million in four basic construction projects in the Islamic Republic of Iran in 2012……………………………………….Full Article: Source

Elaf Bank extends Islamic financing facility in Malaysia

Posted on 31 January 2012 by Laxman  |  Email|Print

Elaf Bank has concluded an Ijarah Muntahia Bittamalluk facility to Serba Dinamik Sdn Bhd to finance a 5-year contract awarded by Petronas Carigali Sdn Bhd. SDSB is a Malaysian based company providing fully integrated and specialized engineering and maintenance services to oil and gas, petrochemical, and utilities companies in Malaysia, Indonesia and the Middle East and North Africa region.
Elaf Bank is the lead arranger and advisor for the USD5.0 million funding exercise, and the underwriter for Tranche 1 of the financing………………………………………..Full Article: Source

First Gulf Bank reports 8 pct growth in net profit to Dh3.70 bln in 2011

Posted on 31 January 2012 by Laxman  |  Email|Print

UAE lender First Gulf Bank PJSC (FGB) said, it has posted 8 per cent growth in net profits reaching Dh3.70 billion in 2011, higher than it did last year. Its net profits for the fourth quarter amounted to Dh1.02 billion, 18 per cent higher than same quarter of 2010 at Dh865 million, and 11 per cent higher than the third quarter of 2011.
Due to the growth in the asset book, the net interest and islamic financing income for the full year 2011 was at Dh5.07 billion, 19 per cent higher than 2010, the corporate and retail fees and commissions stood at Dh1.20 billion, 19 per cent lower than 2010, mainly on the back of regulatory changes to the retail lending framework implemented in May 2011………………………………………..Full Article: Source

Bahrain nets $300mln investments in 2011

Posted on 31 January 2012 by Laxman  |  Email|Print

Despite the global economic crisis and the challenging period for Bahrain, the Kingdom had attracted investments worth $300 million in 2011, according to data released by the country’s economic development board.
The Bahrain Economic Development Board (EDB) said the Kingdom continued to secure significant foreign investment throughout the year, with a significant number of businesses setting up in the country through its direct outreach activities………………………………………..Full Article: Source

Mum, why Islamic finance?

Posted on 31 January 2012 by Laxman  |  Email|Print

Let’s take a break from sukuk structuring and stock screening, and talk about the children of parents in Islamic finance. They may well be the industry’s future. I suspect many of us in Islamic finance do not come from Islamic banking parents or banking family dynasties.
We come from parents that were traditional bankers, engineers, physicians, scientists, journalists, merchants, civil servants, politicians, regulators, academics, and so on. And growing up, Islamic finance was probably not on our radar screen as a career………………………………………..Full Article: Source

South Africa: Islamic finance unpacked

Posted on 31 January 2012 by Laxman  |  Email|Print

While the National Treasury is considering issuing Islamic bonds and has asked interested banks to submit bids, some local banks and the JSE already offer Sharia-compliant financial instruments. These include the JSE Sharia All Share index and the JSE Shariah Top 40 (Tradeable).
Other instruments include Mudarabah, a form of investment partnership between banks and businesses that shares the risk and losses. There is also Murabah, a transaction in which the bank buys the asset then immediately sells it to the customer at a pre-agreed higher price, payable by instalments………………………………………..Full Article: Source

IDB arm to provide insurance cover to banks

Posted on 31 January 2012 by Laxman  |  Email|Print

The State Bank of Pakistan (SBP) and the Islamic Corporation for Insurance of Investment and Export Credit (ICIEC) – a member of the Islamic Development Bank (IDB) Group – have signed a memorandum of understanding (MoU) to cooperate in promoting trade and investment in Pakistan.
The MoU, which was signed by SBP Governor Yaseen Anwar and ICIEC Chief Executive Officer Dr Abdul Rehman Taha at the SBP here on Monday, is aimed at establishing a basis for the exchange of information between the two entities on banking industry’s condition and operating performance and ICIEC exposure on banks operating in the country………………………………………..Full Article: Source

Takaful Ehsan eyes 10 pct market share of Takaful industry by 2015

Posted on 31 January 2012 by Laxman  |  Email|Print

ING Public Takaful Ehsan Bhd (Takaful Ehsan) is eyeing a 10 per cent market share of the takaful industry by 2015 from the current two per cent.
Its chief executive officer Saiful Yazan Ahmad said today that the company plans to boost its banca takaful segment by tying up with two more banks and increasing the number of agents to 1,500 this year………………………………………..Full Article: Source

Is Islamic finance a failure?

Posted on 30 January 2012 by Laxman  |  Email|Print

Oliver AghaIslamic finance, a faith-based system of ethical finance, is growing while it continues to struggle for its identity; it is torn between the market success of emulating conventional structures and developing genuinely Islamic structures that reflect its spiritual ethos. This article reveals the struggle and highlights the endemic and extraneous pressures that threaten Islamic finance.
The Islamic finance industry is reported to be valued at over $1 trillion, with an estimated annual growth rate of 10 percent . The industry is continuing to grow despite its inherent problems, and some market analysts project it will be valued at anywhere from $3 to $5 trillion by 2016………………………………………..Full Article: Source

Saudi Kingdom gaining more clout in Islamic finance

Posted on 30 January 2012 by Laxman  |  Email|Print

Mohamed H. ZakariaAs Islamic finance/banking industry is growing at a sky rocketing growth rate of 12 percent - 15 percent per annum, Kuala Lumpur, Dubai, Bahrain and London are chomping at the bit to become the center of the industry, which currently boasts some $1 trillion in assets.
For the moment, Dubai holds the title of Islamic banking hub - but it could soon lose ground, both to traditional competitors like Bahrain, Kuala Lumpur or London or newcomers on the scene like Singapore………………………………………..Full Article: Source

The lessons from the Goldman’s proposed $2 bln Sukuk saga

Posted on 30 January 2012 by Laxman  |  Email|Print

As if blue chip investment bank, Goldman Sachs International, did not have any other problems in a global financial market that is already reeling in the aftermath of the banking crisis and in the wake of the ongoing euro zone sovereign debt crisis.
The bank last September announced that it was going to the market to raise financing totaling $2 billion through a Murabaha sukuk issuance………………………………………..Full Article: Source

LSE enhances its Sukuk listing prowess

Posted on 30 January 2012 by Laxman  |  Email|Print

The UK Treasury may have reiterated that a sovereign debut benchmark Sukuk is not currently prudent because it would not give “value-for-money” to UK taxpayers, but one UK entity of global repute that is enhancing its Islamic finance business is the London Stock Exchange (LSE).
In January 2012, the LSE in fact attracted the listing of another two sukuk bringing the total number of sukuk which have listed on the exchange to 42 and the total money raised to over $23.75 billion………………………………………..Full Article: Source

Al Baraka’s Turkish unit to issue $200 mln Sukuk

Posted on 30 January 2012 by Laxman  |  Email|Print

Bahraini lender Al Baraka Bank’s Turkish subsidiary will go ahead with a $200 million Islamic bond issue in the first quarter, after delaying a sale last month due to pricing concerns, the bank’s chief executive said.
“We will launch the sukuk in the first quarter of this year,” Adnan Ahmed Yousif said in an interview on the sidelines of an Islamic finance and banking conference in Oman………………………………………..Full Article: Source

MAF Group eyes 5-year Sukuk

Posted on 30 January 2012 by Laxman  |  Email|Print

Dubai’s Majid Al Futtaim plans to issue a five-year dollar-denominated Islamic bond, or sukuk, with early profit rate indications at no more than six per cent, a source with knowledge of the deal said on Sunday.
MAF is holding investor meetings in the UAE on Sunday, followed by London and Kuala Lumpur on Monday………………………………………..Full Article: Source

Morocco to commence Islamic banking

Posted on 30 January 2012 by Laxman  |  Email|Print

Islamic Banking in Morroco has featured central to debate.Islamic banks to operate in Morocco has been questioned especially since the Islamist Justice and Development Party won in the latest parliamentary elections.
Among the party’s promises were to establish the first Sharia-compliant bank in Morocco. Indeed, only a few days after taking control of the government, the party’s leader held talks with the president of the Qatar International Islamic Bank regarding opening Islamic financial institutions in Morocco………………………………………..Full Article: Source

UAE represents 30pct of global Islamic banking

Posted on 30 January 2012 by Laxman  |  Email|Print

The Shariah-compliant financial services sector in the country represented 30 per cent of the global Islamic banking industry in 2011, says a report.
Abu Dhabi 2011 Report, which has been published by Oxford Business Group in collaboration with ADIB, has revealed the growing demand for Islamic financial services among different customer segments within the UAE………………………………………..Full Article: Source

Muslims to have own bank

Posted on 30 January 2012 by Laxman  |  Email|Print

A bank that, in accordance with Sharia law does not charge interest, may be established in Swaziland to cater for the Islamic community. It can be said that some Christians also make use of the Islamic banks because they do not charge the interest usually charged by conventional banks.
Qatar National Bank (QNB), the leading commercial bank in the Middle East, has been identified as a suitable financial institution that could cater for the Islamic community in Swaziland………………………………………..Full Article: Source

Saudi Arabia’s central bank eyes bigger role

Posted on 30 January 2012 by Laxman  |  Email|Print

Saudi Arabia’s central bank will play a bigger role in the supervision of the country’s financial sector as the kingdom weighs opening up its stock market to direct investments by foreigners.
The country’s Capital Market Authority (CMA) said on Sunday that it had signed a cooperation agreement with the central bank or Saudi Arabian Monetary Agency (SAMA) to coordinate supervision of the financial sector in order to improve its stability………………………………………..Full Article: Source

QNB sees 10pct growth in 2012 on Qatar economic expansion

Posted on 30 January 2012 by Laxman  |  Email|Print

QNB expects to grow by 10% in 2012 on the back of Qatar’s economic expansion, bank chairman and HE the Minister of Finance and Economy, Yousef Hussein Kamal has said. The minister said, “Though we miss our Islamic division, QNB is pretty confident it will be able to recoup what it actually missed through its activities.”
“It is true our profit from the Islamic division got halved by about 50% in 2011. The profit we earned from our Islamic division in 2010 was about QR900mn. In 2012, we don’t have the Islamic branch,” Kamal said. ……………………………………….Full Article: Source

The Islamic Bank of Asia appoints Harish Parameswar as head of investment banking

Posted on 30 January 2012 by Laxman  |  Email|Print

The Islamic Bank of Asia (IB Asia) announced two key senior appointments to drive the bank’s focus on investment banking and establish greater connectivity between the Middle East and Asia. Harish Parameswar is appointed Managing Director and Head of Investment Banking and will be based in IB Asia’s head office in Singapore. . Saleh Al Nashwan joined IB Asia as the Chief Representative for its Bahrain Representative Office.
Toby O’Connor, CEO of IB Asia, said: “The addition of Harish and Saleh to our senior management reflects IB Asia’s commitment to deliver a first class Shariah compliant merchant banking platform servicing Asia and the Middle East. Harish brings a wealth of investment banking, private equity and relationships within Asia while Saleh has extensive business experience and connectivity in the Middle East. Strong client coverage across the Middle East and Asia with high quality transaction origination and execution are essential for us to fully capture our business opportunity.” (Press Release)

Top Emirates NBD official to quit

Posted on 30 January 2012 by Laxman  |  Email|Print

The chief executive of Dubai lender Emirates NBD’s investment banking division is leaving the bank, three sources familiar with the matter said.
Suresh Kumar, who was a board member and named the head of Emirates NBD Capital in 2009, has worked with the bank for over 20 years and held senior management roles with Emirates Bank Group before its 2007 merger with National Bank of Dubai………………………………………..Full Article: Source

QInvest acquires 30.5pct of Al Nakheel Agriculture, AG Middle East

Posted on 30 January 2012 by Laxman  |  Email|Print

QInvest LLC, a closely-held investment bank owned by Qatar Islamic Bank, acquired a 30.5 percent stake in a landscaping group that includes Al Nakheel Agriculture & Trading Co. and Ag Middle East LLC, the company said.
This acquisition is the fourth private equity transaction completed by QInvest in the MENA region and is consistent with its strategy to partner with established businesses that are in need for growth capital to achieve their expansion objectives. (Press Release)

Sakana partners with Arabian Homes

Posted on 30 January 2012 by Laxman  |  Email|Print

Bahrain-based Sakana Holistic Housing Solutions, the Islamic mortgage finance provider announced that it has reaffirmed its partnership for the second consecutive year with MAXMEDIA Co., publishers of Arabian Homes the leading real estate and interiors magazine in Bahrain and beyond.
As per the partnership arrangement, Arabian Homes monthly magazine will be distributed to Sakana’s valued customers on complimentary basis and Sakana will collaborate with Arabian Homes to produce series of articles relating to mortgage industry and holistic housing solutions that will enhance the publication………………………………………..Full Article: Source

Takaful Emarat to strengthen customer service initiatives in 2012

Posted on 30 January 2012 by Laxman  |  Email|Print

Takaful Emarat, the UAE’s first dedicated life and health takaful provider, will focus on enhancing its customer service offering in 2012. Last year Takaful Emarat focused on establishing its core infrastructure and expanded its product range with the launch of savings and health insurance plans for individuals. The company has now shifted attention towards enhancing its services offered to the customers.
At the start of the year Takaful Emarat launched a new toll free telephone line (800 834) for customers managed by a dedicated customer service team. The new toll free line provides yet another point of contact for Takaful Emarat customers enabling them to manage their plans on the go, wherever they are. (Press Release)

Tamweel’s 2011 income rises to Dh102 mln

Posted on 30 January 2012 by Laxman  |  Email|Print

Islamic home finance provider Tamweel on Sunday declared its financial results for 2011 and said net profit increased to Dh102 million, compared to Dh26 million in 2010.
For the fourth quarter of 2011, the company reported a net profit of Dh31 million, compared to Dh8 million in the same period in 2010. Tamweel said the results demonstrate continued profitability during a period of increased stability in the domestic property market………………………………………..Full Article: Source

Islamic Bank of Asia builds its team

Posted on 27 January 2012 by Laxman  |  Email|Print

Islamic Bank of Asia announced two senior appointments that it said will drive the bank’s focus on investment banking and establish greater links between the Middle East and Asia.

Harish Parameswar was appointed a managing director and head of investment banking and will be based in Singapore. And Saleh Al Nashwan joined as the chief representative for the Islamic Bank of Asia’s Bahrain representative office……………………………………….Full Article: Source

Crisis: Islamic finance doing well, up 20pct in Gulf

Posted on 27 January 2012 by Laxman  |  Email|Print

Tirad MahmoudIslamic finance has increased exponentially in the last decade, with transactions worth more than one billion billion dollars in 2011, but is yet to pass the 1% mark in global financial movements, because of a series of internal issues that see the system trapped between Sharia law, upon which it is based, and economic laws governing international markets.
Islamic finance assets in the MENA (Middle East and North Africa) region increased by 416 billion dollars in 2010, a cumulative annual increase of 20% against growth of less than 9% for traditional banks, according to the Oxford Business Group’s recently presented Abu Dhabi 2011 report……………………………………….Full Article: Source

Kuwait an Islamic financial hub for investments

Posted on 27 January 2012 by Laxman  |  Email|Print

There is currently a tremendous opportunity for Kuwait to profile itself as a hub for Islamic finance and Islamic banking, according to Belgian academic and economist Professor Laurent Marliere.

“The winners of the upcoming Kuwaiti elections could take a challenger’s position in the region and benefit from he numerous advantages of the country to pioneer new ways of conceiving Islamic finance,” he told the Kuwait ews agency, KUNA, on the occasion of the upcoming polls in the Gulf country……………………………………….Full Article: Source

Azerbaijan develops Islamic financing

Posted on 27 January 2012 by Laxman  |  Email|Print

Azerbaijan: Azerbaijan may soon become a regional Islamic financing centre and play a significant role in boosting cooperation in Islamic banking with Persian Gulf and Central Asian countries.
Islamic financing is one of the fastest growing segments of the global financial services industry worldwide. At the same time, interest in Islamic finance as a source of investment is high in the country, reported Azerbaijan’s news agency, Trend……………………………………….Full Article: Source

Saudi finance minister sees GDP at 6.8pct in 2012

Posted on 27 January 2012 by Laxman  |  Email|Print

Saudi Arabia’s economy, the largest in the Arab world, is likely to maintain its gross domestic product growth rate of 6.8% this year due to the kingdom’s expansionary budget, which will play a vital role in supporting the economy, the nation’s finance minister said.
Separately, Al-Assaf said that the General Authority of Civil Aviation, which earlier this year announced its first ever sukuk, or Islamic bond, offering, was planning a second sukuk this year to help fund construction of the SAR27.1 billion new King Abdul Aziz International Airport in Jeddah. GACA offered sukuk valued at SAR15 billion to investors on Jan. 10 and the offering was three times oversubscribed……………………………………….Full Article: Source

UAE lender ADCB’s Q4 net profit surges 38.5pct, shares rise

Posted on 27 January 2012 by Laxman  |  Email|Print

Abu Dhabi Commercial Bank (ADCB) posted a 38.5 percent rise in fourth-quarter net profit, helped by lower impairment provisions and higher interest income, sparking a late rally in the lender’s stock. ADCB, the third largest lender in Abu Dhabi by market value, posted a net profit of 514 million UAE dirhams (139.94 million US dollars) in the fourth quarter, compared with 371 million dirhams a year earlier, a bank statement said.
Analysts polled by Reuters forecast an average fourth-quarter net profit of 570 million dirhams. Reuters earlier calculated a quarterly net profit of 529 million dirhams based on the lender’s previous financial statements……………………………………….Full Article: Source

Bank Sohar net soars 41.8pct

Posted on 27 January 2012 by Laxman  |  Email|Print

Shaikh Salim Said al Fannah al Araimi, Chairman, Board of Directors — Bank Sohar, has announced that Bank Sohar has made a net profit of RO 14.497 million for the year 2011, which is 41.8 per cent higher than the previous year’s net profit of RO 10.220 million.

As a result and subject to the Central Bank of Oman’s and bank’s shareholders’ approval the Board of Directors has recommended a cash dividend of 8 per cent for the year which corresponds to eight baisas per share. The Board of Directors has also recommended a rights issue to the tune of RO 10 million to its existing shareholders to be used as capital for the Islamic window to be created……………………………………….Full Article: Source

Islamic Bank of Britain launches ‘new banking experience’

Posted on 27 January 2012 by Laxman  |  Email|Print

The Islamic Bank of Britain has launched its first high street outlet in West Yorkshire with a new agency serving the Bradford district. The move follows the recent appointment of Sohaib Hamid as business development manager for the region. The IBB agency, located within Reeds Rains Estate Agents on Northgate, Dewsbury, is one of six agencies being opened by the bank this year.

It will serve customers across the West Yorkshire region including Bradford, Leeds and Wakefield……………………………………….Full Article: Source

Commercialbank nets QR1.88bln profit in 2011

Posted on 27 January 2012 by Laxman  |  Email|Print

Commercial Bank of Qatar (Commercialbank) has posted a record net profit of QR1.88bn, up 15 percent, for the year ended December 2011 with an increase in fourth quarter net profit of 22 percent compared with the same period in 2010.
The Bank’s draft results for the year ended December 31, 2011, have been announced following approval at a meeting of Commercialbank’s Board of Directors. The Board of Directors is recommending, for approval at the Annual General Assembly, a cash dividend payout of 78 percent of net profit which equates to QR6 per share……………………………………….Full Article: Source

NBK records net profit of USD 1.086 bln for ”11

Posted on 27 January 2012 by Laxman  |  Email|Print

National Bank of Kuwait (NBK), the largest Kuwaiti bank and the highest-rated in the Middle East, on Thursday reported net profits of USD 1.086 billion (KD 302.4 million) in 2011 compared with USD 1.083 bmillion (KD 301.7 million) in 2010.
NBK Group’s total assets stood at USD 48.9 billion (KD 13.6 billion), up 5.6% compared to 2010, while total shareholders’ equity rose by 4.5% Y-o-Y to USD 7.8 billion (KD 2.2 billion). NBK Group’s net operating income grew by 8.4% Y-o-Y reaching USD 1,939 million (KD 540 million)……………………………………….Full Article: Source

IDB discusses prospects for cooperation with Azerbaijan in energy sector

Posted on 27 January 2012 by Laxman  |  Email|Print

The Islamic Development Bank (IDB) is discussing opportunities for greater cooperation in the energy sector with Azerbaijani government, source in the Baku office of the bank told Trend. The mission of the IDB leading by the acting head of energy department Mugabil Hussein was in Baku from January 23 to January 25.

“The mission was provided with information on the energy sector during the visit. Experts get acquainted with the bank’s current situation in the energy sector, were discussing the possibilities and perspectives of cooperation,” the IDB said……………………………………….Full Article: Source

MENA fund launches, AUM shrink in 2011

Posted on 27 January 2012 by Laxman  |  Email|Print

The historic events of 2011 slowed launch activity of mutual funds in the MENA region, from more than 60 in 2010 to 52 in 2011. This was evident in conventional fund launches - from 42 in 2010 to 34 in 2011- while Islamic fund launches decreased only slightly from 19 to 18.

More than half of the funds launched in 2011 were of the equity asset class, traditionally the most common one. Compared to two exchange-traded funds launched in 2010, only one ETF was launched in 2011, emphasizing the slow progress of this nascent product in the region……………………………………….Full Article: Source

Australia to get first Islamic index

Posted on 26 January 2012 by Laxman  |  Email|Print

Thomson Reuters is on the brink of giving Australia its first Islamic index. Starting in early February, Thomson Reuters and Australia’s Crescent Wealth are jointly launching Islamic Australia Index — a research-based index that will offer local and international investors a tool to help invest in accordance with Islamic investment principles in the local market.
The initiative comes ahead of an expected government proposal to change tax guidelines to help open up the local market for Islamic investment products, though there remains some concern about the market’s growth potential………………………………………..Full Article: Source

Challenges to growth of Islamic banking

Posted on 26 January 2012 by Laxman  |  Email|Print

Although Islamic banking has grown rapidly over the last three decades, the volume of transactions touched $1.086 trillion (Dh3.98 trillion) in 2011, accounting for only one per cent of the world’s total.
More than 310 Islamic financial institutions currently operate in more than 75 countries, and in the GCC the sector continues to flourish. The recent announcement that the world’s largest Islamic bank, with a capital of $100 billion, would be headquartered in Bahrain, will boost this trend………………………………………..Full Article: Source

Azerbaijan develops Islamic financing

Posted on 26 January 2012 by Laxman  |  Email|Print

Azerbaijan may soon become a regional Islamic financing center and play a significant role in boosting cooperation in Islamic banking with Persian Gulf and Central Asian countries. Islamic financing is one of the fastest growing segments of the global financial services industry worldwide. At the same time, interest in Islamic finance as a source of investment is high in our country.
Many countries’ interest in Islamic finance is associated with different factors, the foremost of which is the desire to attract liquid resources from the Middle East and Southeast Asia and a certain demand for financial products in accordance with Sharia law by local Muslims………………………………………..Full Article: Source

Islamic banking: Kyrgyzstan, seize the hour!

Posted on 26 January 2012 by Laxman  |  Email|Print

Islamic financing is operating in Kyrgyzstan for 5 years and it demonstrates its value in practice. Share of Islamic financing in June 2011 reached 5 percent of all banks credit resources of the republic. And it will increase up to 10-12 percents by 2015 according to experts.
“Islamic banks across the world successfully got over crisis as they rest upon other principles distinct from traditional credit activities,” an adviser on business development to the Board of Directors of EcoIslamicBank OJSC, Shamil Murtazaliev, tells………………………………………..Full Article: Source

GCC Sukuk triple despite Europe

Posted on 26 January 2012 by Laxman  |  Email|Print

The issuance of sukuk (Islamic bonds) in Gulf hydrocarbon producers nearly tripled in 2011 despite the global downturn but other investment tools, including IPOs and conventional bonds were stifled.
From around $6.9 billion in 2010, the value of sukuk issued in the six-nation Gulf Cooperation Council (GCC) shot up to nearly $19.4 billion in 2011, Saudi Arabia’s largest bank, National Commercial Bank (NCB) said. In a study sent to Emirates 24/7, it said sukuk issues also recorded a sharp increase worldwide at a time when bonds remained under pressure………………………………………..Full Article: Source

Majid Al Futtaim to hold roadshows on January 29 and 30

Posted on 26 January 2012 by Laxman  |  Email|Print

Dubai’s Majid Al Futtaim will begin meeting investors on Sunday ahead of a potential Islamic bond, or sukuk issue, a statement from the lead managers said on Tuesday.
The mall developer, which is the sole franchise for Carrefour in the Gulf, will meet investors in Abu Dhabi and Dubai on January 29, before a second day of roadshows in London and Kuala Lumpur on January 30, it said………………………………………..Full Article: Source

Saudi Arabia issues its first sovereign Islamic bond

Posted on 26 January 2012 by Laxman  |  Email|Print

Saudi Arabia issued its first government-backed Islamic bond this week, for its aviation agency, setting a benchmark for pricing of conventional and Islamic bond issues this year because of its size.
At 15 billion riyals, or $4 billion, it was the largest Islamic bond, or sukuk, ever issued within the kingdom. The sukuk, guaranteed by the Saudi Ministry of Finance, was oversubscribed three times, and the Saudi General Authority for Civil Aviation will use the proceeds to finance the expansion of King Abdulaziz International Airport in Jidda, the second-largest city in Saudi Arabia, after Riyadh………………………………………..Full Article: Source

banner
banner
banner
January 2012
M T W T F S S
« Dec   Feb »
 1
2345678
9101112131415
16171819202122
23242526272829
3031