Islamic finance will likely expand faster than mainstream banks this year, and its total assets will top $1 trillion as demand for ethical investments intensifies. However, Islamic financial institutions must guard against straying from the basic tenets of Sharia law if they are to avoid the excesses that led to the global economic crisis.
“The regulatory framework needs to keep pace with the rapid growth of the industry, and also to reflect the lessons learned from the global financial crisis,” said Bahrain’s Central Bank governor Rasheed M. al-Maraj………………………………………..Full Article: Source

Saudi water and power project developer Acwa Power, which in November raised $300 million from a debut sharia-compliant syndicated facility, also plans to issue an Islamic bond, or sukuk, worth $800 million in early 2013, Rajit Nanda, Acwa’s CFO, said.
The company was talking to banks about who would arrange the sukuk and a mandate would be awarded during the third quarter. The mandate would likely go to two of the banks which provided cash for the murabaha-structured facility, Nanda said………………………………………..Full Article: Source

Qatar Petroleum (QP) director of finance Abdulrahman al-Shaibi said that Qatar will continue to make use of the project finance market, that the possibility of floating project sukuk is being seriously considered, that a PPP law is being studied and that financing plans are being developed for the $8bn QP-Shell petrochemical plant approved in principle at the end of 2011.
Al-Shaibi said that Qatar plans to capitalise on its experience in raising more than $70bn in project financing in the past 15 years to secure further credit from the market for new projects being implemented as part of its long-term economic development plan. (Press Release)

Citigroup has been tapped to advise Dubai’s main industrial free zone operator on its options for meeting a $2 billion Islamic bond maturity this year, including the potential sale of its UK based developer Gazeley, three sources said on Monday.
Jebel Ali Free Zone (JAFZA), which runs an industrial free zone on the outskirts of Dubai, has said it aims to refinance the 7.5 billion dirhams ($2 billion) Islamic bond, or sukuk, maturing in November………………………………………..Full Article: Source

Malaysia Rating Corporation Bhd (MARC) has revised DRB-Hicom Bhd’s sukuk rating on its RM1.8bil Islamic Medium Term Notes (IMTN) programme from stable to negative.
The outlook recognises the potential weakening of DRB-Hicom’s near-to-intermediate term financial profile, caused by its debt-funded acquisition of Proton Holdings Bhd………………………………………..Full Article: Source

The Central Bank of Bahrain (CBB) announces that the monthly issue of the Sukuk Al-Salam Islamic securities for the BD18 million issue, which carries a maturity of 91 days, has been subscribed by 186%.
The expected return on the issue, which begins on 29 February 2012 and matures on 30 May 2012, is 1.18%. The securities are issued by the CBB on behalf of the Government of the Kingdom of Bahrain………………………………………..Full Article: Source

Indonesia’s fourth largest lender Bank Negara Indonesia (BNI) is actively searching for a partner to further tap growth opportunities in Shariah banking.
Its CEO Gatot Suwondo said the bank is also looking to venture into micro-banking - an area that’s new to BNI right now. Bank Negara Indonesia is one of the familiar household names in Indonesia with over 1,500 branches………………………………………..Full Article: Source

The Islamic Banking Industry (IBI) will miss its 10-year growth target to achieve 12 percent share of overall banking industry, staying currently at an average of 7.6 percent in terms of assets and deposits that may attain level of 9 percent by 2012 provided with the improving economic and business situation.
IBI has witnessed impressive growth over a period of decade with significant number of banks and branches established particularly for banking services in accordance with Sharia Compliance………………………………………..Full Article: Source

ABC Islamic Bank announced a net profit of $8.1 million for 2011, 293 per cent higher than last year. Total operating income was $15.1 million compared to $15.9 million for 2010, mainly due to de-risking of balance sheet asset size.
Operating expenses of $6.2 million were higher than the previous year of $4.9 million, mainly due to a timing recognition of staff expenses related to compensation for last year………………………………………..Full Article: Source

The deadline for RRSP contributions is nearing, but there’s another important investment concern for Muslims — ensuring the products they rely on for their retirement income comply with Islamic principles.
With nearly a million Muslims in Canada, forming nearly three per cent of the country’s population, there has been an emphasis over the last decade in investment products that adhere to the strict dictates of Shariah law………………………………………..Full Article: Source

As the debate on public sector borrowing intensified in the wake of the recent US debt crisis, and before that the adverse budgetary situations in a number of European countries, including but not limited to Greece and Ireland, led to political debate on the issue, it would be instructive to look into Shariah guidelines for public debt.
The issue is also relevant to a number of Muslim countries, including Pakistan, where Shahid Kardar, the former governor of the State Bank of Pakistan, resigned perhaps because of disagreement over the government’s stance over public debt………………………………………..Full Article: Source

The industry has alphabet bodies that deal with various issues but when it comes to public relations and marketing, there seems to be a gaping hole that is getting larger.
Is there a media and public relations (PR) “control room” for Islamic finance that educates, creates awareness, undertakes damage control, etc, so that the industry is “conventionally efficient” media-savvy?……………………………………….Full Article: Source

The risk-based capital (RBC) framework for the local takaful industry is expected to take effect by January next year or the following year but will not be onerous to industry players as it will likely be based on the parameters of the conventional insurance framework, according to the Malaysian Takaful Association (MTA).
Deputy chairman Zainudin Ishak said the capital requirements under the proposed RBC framework for takaful would not burden the industry and would be benchmarked to the RBC framework introduced in January 2009………………………………………..Full Article: Source

At a media roundtable on 5 March, Takaful Emarat will unveil its new offerings, which it is says has the unique features of capital protection.
According to Takaful Emarat’s General Manager, Ghassan Marrouche, the company is set to launch its first investment fund conceived and developed in-house after obtaining the necessary approvals. The open-ended fund will be managed by Riyadh Capital and has a multi-year tenure………………………………………..Full Article: Source