Islamic banking could help the Australian Government overcome infrastructure funding shortfalls, an Australian finance head says. The head of Australia’s first Islamic finance company, Talal Yassine, met with government ministers in Australia’s capital, Canberra, this week.
“We are not bringing Sharia law in any way to Australia,” he said. “Islamic investment principles are all about value and conservatism and about investing in worthwhile things that are ultra-ethical - and I think I should be extraordinarily clear about that, there is nothing to fear here”………………………………………..Full Article: Source

Maybank Islamic Bhd is on track to record RM1bil in pre-tax profit for its financial year 2012 by leveraging on its parent Malayan Banking Bhd’s (Maybank) global wholesale business and community financial services to carve its own niche in the market for Islamic finance.
Maybank Islamic chief executive officer Muzzaffar Hisham told StarBiz that healthy deposit levels, coupled with a growth in asset base with a good mixture of deposit and liabilities, would help to fuel the company’s growth………………………………………..Full Article: Source

The delegation led by Head of Dubai Administration’s Emir, Chief Executive Director of Dubai investment corporation, Chairman of Dubai Bank , Board Chairman of Dubai Islamic Bank Mohammed Ibrahim Al Shaibani has shown interest to state of Islamic banking in the country.
Azerbaijani delegation has reported that there are no Islamic banks in the country but a range of banks applies certain elements of Islamic banking. “They are currently ready to pass to Islamic financial operations for corporate clients. To organize full value Islamic banking Azerbaijani banks may need up to 2 years provided that relevant legislation is worked out “,- representatives of Azerbaijani side said………………………………………..Full Article: Source

Starting operations in 1992, Al Baraka Bank Lebanon became the first Islamic Bank in the country to work under the rules of Fiduciary Contract Law Number 520 – dated June 6, 1996 – in full compliance with Islamic Sharia.
When the Lebanese Parliament decreed the Islamic banking law in 2004, the bank became a fully fledged Islamic bank. Today, the bank has seven branches, including one in Beirut and others in major Lebanese cities………………………………………..Full Article: Source

In the Middle East, where a rush this year to issue Islamic bonds, or sukuk, is attributed to a withdrawal of European lenders. Within Europe, too, national boundaries are being reinforced as lenders cut back their exposures to weaker markets.
Non-European banks are also trimming their foreign portfolios as they rationalise their businesses: Citigroup agreed to sell its Belgian retail arm in December; HSBC is offloading businesses from Costa Rica to Pakistan………………………………………..Full Article: Source

A memorandum of understanding (MOU) was signed between the Farz Foundation and The Institute of Islamic Banking of the University of Management and Technology on 12th April, 2012.
With this MOU both these parties propose to find ways and means to establish linkages and cooperation in the matters pertaining to areas of mutual interests like poverty alleviation, capacity building of entrepreneurs, knowledge sharing and research work in Islamic finance………………………………………..Full Article: Source

As the Islamic finance sector booms, sharia-compliant systems present opportunities for growth as well as reflection on western economic models. The trillion-dollar industry already has many clamoring to get in on sharia-based investments.
What makes it so different? Islamic tradition prohibits charging interest (called “riba”) and borrowers and lenders are held to high moral standards………………………………………..Full Article: Source

Though it is true that greater awareness of the inbuilt strengths of Islamic finance has contributed towards increased international participation in Islamic financial markets, awareness alone is not sufficient to ensure sustainable growth for our industry, says Hussain AlQemzi, Chief Executive Officer, Noor Islamic Bank and Group Chief Executive Officer, Noor Investment Group.
“To remain competitive we have to continually innovate and adapt. If we are to challenge the conventional banks’ entrenched position in international financial deals, we must develop the capacity to structure multi-currency and cross border transactions and build scale,” he said………………………………………..Full Article: Source

Takaful or Islamic insurance companies are exploring new markets such as Egypt and Jordan; Islamic finance is expected to receive a boost in North Africa from last year’s Arab Spring uprisings, which removed authoritarian governments that discouraged or neglected sharia-compliant business for political reasons.
Ghassan Marrouche, chief executive of Takaful Emarat in the United Arab Emirates, said his company was expecting double-digit growth rates in coming years, supported by the launch of several new products including a capital-protected instrument and a “microtakaful” product focused on low-income earners………………………………………..Full Article: Source

Growth of the takaful or Islamic insurance business is slowing, industry statistics show, increasing pressure on the sector to boost efficiency, roll out new products and explore new markets.
Takaful, which has its core markets in the Gulf and southeast Asia, is one bellwether of consumer appetite for Islamic finance. But profitability has been hit by fierce competition and rapid growth of workforces at takaful providers in past years………………………………………..Full Article: Source

Banque Saudi Fransi, a Saudi Arabian lender part-owned by Credit Agricole, set up a US$2bn Islamic bond program, potentially seeking to join record sukuk sales from the kingdom.
Citigroup, Credit Agricole, Deutsche Bank were appointed the lead arrangers of the program, Saudi Fransi said in its base prospectus posted on the London Stock Exchange………………………………………..Full Article: Source

The Eurozone crisis and widespread protests against the global financial system present the $1 trillion Islamic the finance industry with a big opportunity to accelerate growth, Hussain Al Qemzi, chief executive of Noor Islamic Bank said.
Al Qemzi said greater cooperation, rather than competition, between the Middle East’s Islamic financial institutions is necessary if the industry is to provide a real alternative to the conventional international banks operating in the region………………………………………..Full Article: Source

Greater cooperation, rather than competition, between the Middle East’s Islamic financial institutions is necessary if Islamic finance is to provide a real alternative to the conventional, international banks operating in the region, according to Hussain AlQemzi, GCEO of Noor Investment Group and CEO of Noor Islamic Bank.
AlQemzi, a seasoned banker with over 26 years of extensive experience working with leading financial institutions in the UAE, said regional Islamic banks do not have the financial punch to challenge their larger competitors from the US, Europe and the Far East………………………………………..Full Article: Source

The global Islamic Finance industry has grown exponentially in the past years and has succeeded in attracting the attention of economists, bankers, policy makers and financial regulators across the world, especially in the wake of the global financial crisis. In 2011 alone, the Islamic finance industry grew by 24.4% to reach a $ 1.084 trillion dollars, while the global Sukuk issuance increased by more than 60% up to 84.5 billion
This significant growth rate in the industry was a pull factor for many financial institutions……………………………………….Full Article: Source

Islamic financial services certainly do not want for lack of a historical presence in North Africa; in fact, one of the first contemporary forerunners for the sector was Egypt’s Mit Ghamr Savings Bank, which was started in the 1960s.
However, in the intervening years, even as Shariah-compliant institutions expanded throughout southeast Asia and the Gulf, boasting portfolios that straddled the globe, the sector retained only a negligible hold on North African markets. In fact, until recently, Islamic financial institutions only accounted for around 4% of Egypt’s overall banking sector, compared to 18% in Malaysia and up to 46% in the UAE………………………………………..Full Article: Source

The Federal Government has been told the answer to overcoming the lack of infrastructure investment in Australia could be Islamic finance. It’s a system of banking which uses joint ventures, profit sharing and leasing to get around the Islamic prohibition on charging interest.
The head of Australia’s first Islamic finance company says a potential investment boom is being stymied by barriers to Islamic finance in Australia………………………………………..Full Article: Source

The Irish Government is committed to establishing the IFSC as a centre of excellence for Islamic finance, a seminar hosted by the International Fiscal Association Ireland (IFA) heard.
The seminar was chaired by Andrew Quinn, Chairman of IFA Ireland and Head of Tax at international law firm Maples and Calder. Andrew was joined by the Tanaiste, Leader of the Labour Party and Minister for Foreign Affairs and Trade, Eamon Gilmore, and a number of expert speakers who gave their views on current opportunities for Ireland in Islamic finance………………………………………..Full Article: Source

“Internationally Islamic finance, or Sharia compliant finance, has demonstrated impressive growth rates - annual growth rates have been estimated at 15 -20pc,” Tánaiste Eamon Gilmore said. “The global Islamic finance industry is currently valued at approximately US$1.3trn.
“We see potential for significant growth in this area and it forms an important part of our strategy for international financial services in Ireland,” he said. “We are determined to ensure that the IFSC will develop as a centre of excellence for Islamic finance and are engaging with key stakeholders to move towards achieving this goal.”……………………………………….Full Article: Source

Fadi Saleem, General Manager, Bank of Khartoum has signed up a partnership agreement to start up microfinance policy, with the Islamic Development Bank (IDB) Deputy President for Finance Affairs Dr Abdul Aziz Al-Hinani. IDB will contribute capital for the company which will be called Irada Company.
Fadi Saleem said, “The agreement represents a strategic partnership aiming at providing the Islamic finance products to individuals, families and social categories. BoK conducted market assessment for microfinance which revealed a great demand for Islamic finance products in Sudan.”……………………………………….Full Article: Source

HSBC is to merge its business in Oman with Oman International Bank OIB.OM and hold a majority stake in the enlarged operation, Europe’s biggest bank said on Wednesday.
HSBC will hold 51 percent of the group, to be named HSBC Bank Oman SOAG. OIB is Oman’s fifth-largest bank, with the second-largest branch network in the country and gross assets of $3.2 billion………………………………………..Full Article: Source

Saudi Arabian banks have plenty of scope to fund loan growth in 2012 as the sector relaxes the cautious approach to lending that has dominated in the last few years, Fitch Ratings says.
This growth is likely to be at a reasonable pace and therefore should not hurt asset quality or banks’ viability ratings, said a statement from the rating agency………………………………………..Full Article: Source

Fitch Ratings has affirmed Sharjah Islamic Bank’s (SIB) Long-term Issuer Default Rating (IDR) at ‘BBB+’ with a Stable Outlook and Viability Rating (VR) at ‘bb’. A full list of ratings is at the end of this comment.
SIB IDRs, Support Rating and Support Rating Floor reflect Fitch’s opinion that there is a high probability of external support from the UAE authorities, if needed. The Support Ratings consider the authorities record of support for the UAE banking system………………………………………..Full Article: Source

Standard Chartered aims to double its African revenues to $2.5 billion in the next five years and is mulling opportunities in fast-growing economies such as Senegal, its head of Europe, the Middle East and Africa said on Wednesday.
The London-based emerging markets lender spans Asia and Africa, but lacks exposure to slow-growing European markets or U.S. subprime mortgages, making it one of few Western banks with the money to expand operations in the under-served continent………………………………………..Full Article: Source

Encorp Bhd, a Malaysian builder of teacher’s housing, is planning to sell as much as RM1.58 billion (US$516 million) of Islamic bonds to restructure its debt, two people with knowledge of the deal said.
The Selangor-based company will be issuing the sukuk, or debt that pays returns from assets to comply with Islam’s ban on interest, in several portions of as long as 16 years, said one of the people, who declined to be named as the information is private. It plans to sell the securities early next month via its Encorp Systembilt Sdn Bhd unit, the person said………………………………………..Full Article: Source

Traditionally, the Islamic states have had to reach out to Western capital markets to obtain funding for major projects. Islam’s prohibition on the collection of interest (riba) made it difficult to find buyers within the Muslim world for debt securities issued by sovereign nations, even predominately Muslim ones.
In recent years, however, the invention of a financial instrument widely called sukuk—a kind of bond structured so as to be acceptable under Islam—has enabled governments of Islamic nations to tap into an entirely new capital market. Muslim investors, buoyed by the rise in the price of oil, have devoured the new sovereign issues of sukuk, developed and marketed by the governments of Muslim-majority nations………………………………………..Full Article: Source

Allen & Overy, through its association with local law firm Abdulaziz AlGasim Law Firm, advised Saudi Electricity Company (SEC), on the successful closure of its $1.75 billion dual-series Sukuk issue.
The transaction is SEC’s first international Sukuk issuance and the largest international debt capital markets issuance to date out of Saudi Arabia. The transaction was structured as a Sukuk al-ijara, with the two series of trust certificates issued by Saudi Electricity Global SUKUK Company (a special purpose vehicle incorporated in the Cayman Islands and wholly-owned by SEC )………………………………………..Full Article: Source

Takaful Malaysia Bhd will aggressively expand its retail capability to capture a bigger market share from 20 per cent in 2011 to 30 per cent this year.
In terms of Takaful contribution, Group Managing Director Datuk Hassan Kamil said the target was a growth of between 25 and 30 per cent from RM1.1 billion last year………………………………………..Full Article: Source

The global Takaful contributions grew by 19 per cent to $8.3 billion in 2010 and of these, the Gulf Cooperation Council (GCC) contributed $5.68 billion and South East Asia contributions were $2 billion, according to the 5th edition of Ernst & Young’s World Takaful Report 2012 report.
In 2010, growth in the GCC slowed to 16 per cent, from a compounded annual growth rate (CAGR) of 41 per cent in 2005-2009, as the implementation of compulsory medical Takaful in Abu Dhabi and Saudi Arabia was completed earlier………………………………………..Full Article: Source

International wealth management company Globaleye has appointed Jawaid Tabassum as general manager for its general insurance and employee benefits department in the United Arab Emirates.
Tabassum joins Globaleye from Noor Takaful where he headed bancatakaful/ bancassurance and institutional sales………………………………………..Full Article: Source

Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) will convene its Annual Shari’a Conference on 7 and 8 May 2012 in Manama, Kingdom of Bahrain. The conference will be held under the patronage of the Central Bank of Bahrain.
AAOIFI is the international body responsible for developing and issuing standards on Shari’a, accounting, auditing, ethics, and governance for the global Islamic finance industry. (Press Release)

The Turkish government will press ahead with its first issue of Islamic bonds this year and the planned sale should encourage private companies to do likewise and boost Istanbul’s role as a financial centre, Deputy Prime Minister Ali Babacan said on Tuesday.
The government had said previously it could issue a sukuk in 2012, overcoming sensitivities about Islamic finance in the secular republic as it seeks to tap a rich pool of investors flush with oil money………………………………………..Full Article: Source

Indosat, the country’s second-largest mobile phone operator, plans to sell Rp 2.5 trillion ($272 million) in bonds this year to help fund its business expansion plans and refinance debt.
Indosat, which has about 60 million subscribers, plans to sell fixed-rate conventional bonds and Islamic bonds, the company said. Specifically, the company will sell Islamic bonds of the Ijarah type, which investors lease back to the issuers to comply with Islamic law and to avoid receiving interest payments. Ijarah bonds represent the undivided beneficial rights or ownership of the assets held by the trustee on behalf of the investors………………………………………..Full Article: Source

AmInvestment Bank Group is looking to launch 12 equity funds this year to achieve the target of increasing its assets under management (AUM) to over RM35 billion by year-end from RM26.9 billion in 2011.
Ng Chze How, director of retail funds (fund management), said: “From the 12 planned for this year, six have been launched, and these have brought our assets under management to RM32 billion.” The company aims to launch a mixture of equity products, from fixed-income funds and retail funds to shariah-compliant funds, Ng said………………………………………..Full Article: Source

First Finance Company (FFC), a member of Barwa Bank Group, has formed a strategic partnership with General Takaful, a major player in the Family Takaful segment.
The contract between FFC and General Takaful was signed. As a result of the partnership, FFC can now offer a comprehensive range of Shariah-compliant products, including Takaful, vehicle and household insurance with emergency assistance………………………………………..Full Article: Source

SALAMA Islamic Arab Insurance Company has announced the launch of Salama Travel Plan, a new Takaful product which offers international cover such as travel inconvenience, trip curtailment and cancellation, lost and stolen documents, and medical and legal emergencies amongst many others.
The addition of the Takaful Travel Plan is a strategic move based on extensive market research which uncovered a large volume customer demand for Takaful products within the travel and tourism industry………………………………………..Full Article: Source

The GCC the market share of Islamic banking had crossed the all important 25 per cent threshold — which means that Islamic banks are now making successful competitive inroads into the conventional market space as well.
Given the positive economic outlook, the Middle East, which is witnessing an increasing appetite for Sharia-compliant financing and investment alternatives across a broad range of corporate, wholesale and consumer segments, is yet to fully realise the potential of its Islamic finance and investments industry………………………………………..Full Article: Source

The International Finance Corp (IFC), a member of the World Bank Group, and Islamic Development Bank (IDB) jointly plan to invest up to $100 million on major infrastructure projects across the Middle East and North Africa, IFC said.
The International Finance Corp (IFC), a member of the World Bank Group, and Islamic Development Bank (IDB) jointly plan to invest up to $100 million on major infrastructure projects across the Middle East and North Africa, IFC said on Monday………………………………………..Full Article: Source

Gulf Finance House, the Bahrain-based Islamic investment bank, has announced the appointment of Hisham Alrayes to the position of Acting Chief Executive Officer.
Alrayes is currently the Chief Investment Officer at GFH and will take up his new position with immediate effect. In his new position, Alrayes will be responsible for overlooking the overall performance of the bank, setting the bank’s strategic direction, management of the bank’s assets and liabilities, and managing the communications with shareholders………………………………………..Full Article: Source

Johor Corp, an unrated Malaysian investment company, will probably pay less than AAA issuers to sell US$976 million of sukuk on local-government guarantees, according to MCIS Zurich Insurance Bhd and Bangkok Bank Bhd.
Johor Corp, which defaulted on its debt in 2001, may price the 10-year Islamic notes to yield 30 basis points more than non-Islamic sovereign bonds, equivalent to 3.83 per cent , the Kuala Lumpur-based units of MCIS Zurich and Bangkok Bank say………………………………………..Full Article: Source

Islamic home finance provider Tamweel net profit in the first quarter of 2012 dropped 33 per cent to Dh18 million as compared to Dh27 million for the same period last year due to higher provisions.
The company said profit fell lower on account of additional one time provision of Dh21.6 million for litigation losses. Operating profit before provisions increased to Dh48.5 million compared to Dh43 million in the same period last year………………………………………..Full Article: Source

Abu Dhabi-owned fund Invest AD is betting on its range of investment products to tap growth opportunities in fast-growing Africa, a continent which the state-owned investment firm believes is still undervalued for its potential.
“If you look at Africa, there are opportunities across the board and it’s not as well-defined as in some other more mature markets. So we want to build a suite of products that captures that growth,” Chief Investment Officer David Sanders said……………………………………….Full Article: Source

Global Islamic insurance contributions surged 19 percent in 2010 to $8.3 billion helped by Saudi Arabia, the world’s biggest oil exporter, which made up more than half the industry, an Ernst & Young report said.
The six-nation Gulf Cooperation Council, which also includes the United Arab Emirates, Qatar, Bahrain, Oman and Kuwait, made $5.68 billion of Islamic insurance or takaful contributions in 2010, and South East Asia $2 billion, according to the World Takaful Report 2012……………………………………….Full Article: Source

Global takaful contributions grew by 19% to $8.3bn in 2010, according to Ernst & Young’s World Takaful Report 2012. “With current growth trends, and the addition of new fringe markets such as Indonesia and Bangladesh, we expect gross contributions of $12bn by 2012,” said Ashar Nazim, MENA head of Islamic financial services at Ernst & Young.
Growth in the GCC slowed to 16% in 2010, from a compound annual growth rate of 41% in 2005-2009, as the implementation of compulsory medical takaful in Abu Dhabi and Saudi Arabia was completed earlier………………………………………..Full Article: Source

Saudi Arabia was the biggest market, with $4.3bn of sales, or more than half of the industry. Malaysia was the second-largest market, ahead of the UAE, with contributions of $1.4bn.
“The takaful industry continued to show double-digit growth in 2010, albeit at a relatively slower rate of 19 per cent compared to previous years,” said Ashar Nazim, the head of Islamic financial services in the Middle East and North Africa (Mena) region for Ernst & Young………………………………………..Full Article: Source

The genie out of a modern day bottle is the first home purchase plan approved by the Financial Services Authority (FSA) for the mainstream UK market, rather than a specialised market.
It demonstrates that the religious principles underlying Islamic products are relevant in the ethical and social finance marketplace; that Islamic principles can inspire and enhance the finance products being developed to meet these challenging times in the residential domestic market. ……………………………………….Full Article: Source

With Britain now in talks to sell part of the government’s 82% stake in the Royal Bank of Scotland to Abu Dhabi sovereign-wealth funds, the Islamic world’s growing financial clout is once again on display. That clout also poses a systemic challenge to the dominant way that finance is now practiced around the world.
From humble beginnings in the 1990’s, Islamic finance has become a trillion-dollar industry. The market consensus is that Islamic finance has a bright future, owing to favorable demographics and rising incomes in Muslim communities………………………………………..Full Article: Source

With an estimated value of around $1.1trn in global assets, Islamic finance has maintained continuous growth against the backdrop of global economic turmoil across many of the conventional world markets.
Yet while their inherent conservatism and overweight exposure to low risk investment has proven a strong point for Islamic-compliant financing of real estate, as safer investments have generally out-performed the market, the ongoing lag in Shari’a rules harmonisation is threatening to stifle their full potential in the Middle East and Islamic Asia, reflects Mark Faithfull………………………………………..Full Article: Source

Qatar may list local-currency government bonds and sukuk on the country’s bourse this year as it seeks to deepen its debt market. Qatar, which had the world’s fastest economic growth last year according to the International Monetary Fund, started listing treasury bills on the exchange at the end of last year.
“Now we are talking to the issuing government about the next steps,” Andre Went, chief executive officer of the Qatar Exchange, said in an interview at a Bloomberg conference in Doha. Asked when the listing of sukuk and bonds may follow, he said: “It may happen this year. It’s feasible this year,” he said………………………………………..Full Article: Source

Tamweel PJSC may consider tapping the debt market again this year after the United Arab Emirates mortgage lender raised $300 million from the sale of Islamic bonds in January.
“We may potentially go back to the market this year for either a sukuk or securitization,” acting Chief Executive OfficerVarun Sood said in an interview in Dubai today. “It would be a similar transaction to what we did earlier this year.”……………………………………….Full Article: Source

The Islamic Corporation for the Development of the Private Sector, a private sector arm of the Islamic Development Bank Group (IDBG), and the government of Mauritania inked a deal, which entitles ICD to act as the transaction adviser for the proposed revolving sukuk offering by Mauritania to the tune of $300 million.
Khaled Al-Aboodi, CEO & general manager of ICD, and Sid Ahmed Ould Rayess, governor of the Central Bank of Mauritania signed the agreement………………………………………..Full Article: Source