This summer London will witness the gathering of participants from all over the world in the spirit of togetherness and mutual cooperation but these participants will most likely be dressed in business attire rather than lycra body suits.
The Takaful world will converge again in July this year for the 6th International Takaful Summit, which has established itself as one of the most important meetings for the industry to discuss the future growth of this blossoming sector of Islamic finance. Held over 3 days from the 10th-12th of July, ITS 2012 aims to highlight the issues that continue to arise owing to the relative infancy of the industry that is set against a backdrop of extremely difficult global financial uncertainty. (Press Release)

The investment grade BLME US Dollar Income Fund, has delivered top percentile performance and is ranked 6 out of 763 funds over 3 years in the US $ Global Money Markets sector, according to Reuters’ fund ranking service Lipper Hindsight.
It is managed by former F&C fund manager, Jason Kabel, and has delivered consistent positive returns since its launch in March 2009………………………………………..Full Article: Source

Yields on Indonesia’s Islamic bonds posted their first weekly decline this month on speculation supply will wane after the government rejected bids at an auction for the first time since March.
The yield on the 5.45 percent sukuk due January 2022 fell one basis point this week to 6.72 percent, the first drop since the period ending April 29………………………………………..Full Article: Source

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Jebel Ali Free Zone FZE, a business park operator in Dubai, will repay 7.5 billion-dirhams ($2 billion) of Islamic bonds ahead of schedule, the latest of the emirate’s companies to settle financial obligations early.
The majority of sukuk investors who voted for the plan will be “entitled to receive the consent fee of 100 dirhams per 100,000 dirhams in principal amount of the certificates” on or about May 29, Jebel Ali said. The floating-rate notes that comply with Islam’s ban on paying interest are due in November………………………………………..Full Article: Source

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Bahrain’s Gulf International Bank has set up a 3.5 billion Malaysian ringgit ($1.11 billion) programme for potential sale of Islamic bonds, the company said on Sunday, as the lender seeks to diversify its funding sources.
Standard Chartered and Malaysia’s CIMB Investment Bank are lead arrangers on the medium-term notes programme, while GIB Capital is the international coordinator. “The sukuk programme represents a strategic move to tap into the ringgit market in an effort to diversify funding avenues and currencies for the Bank,” Jammaz bin Abdullah Al-Suhaimi, GIB’s chairman said………………………………………..Full Article: Source

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HSBC has launched “Mena bonds and sukuks platform” offering relatively easy access for the bank’s retail customers in Qatar.
The offer provides a “comprehensive” wealth management proposition to HSBC customers and allows them to achieve a more balanced investment portfolio and diversify their investment risk………………………………………..Full Article: Source

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The concept of Islamic finance, banking and economics has gained tremendous popularity of late. It is appreciated and implemented not only in countries where Islam is the dominant religion, but also in non-Islamic nations. The basic premise of Islamic finance, banking and economics is based on ‘hygienic’ ways of doing business as prescribed by the Islamic Law or Shariah.
What is a Shariah Compliant financial product? A Shariah compliant financial product (mutual funds, ETFs etc) is an investment avenue that is fully compliant with the principles of Shariah Law………………………………………..Full Article: Source

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Investment Management Group of Oman Arab Bank SAOC (OAB), Lead Issue Manager and Lead Underwriting Arranger for Bank Nizwa IPO, yesterday released the eagerly-awaited subscription figures for the Bank Nizwa IPO surpassing investment community guesses.
The initial compilation of figures of all four collecting banks show over 11.3 times subscription i.e over RO 681 million (subject to reconciliation) collected against an offer of RO 60 million through 37,084 applications………………………………………..Full Article: Source

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Omani lender Bank Nizwa, the sultanate’s first Islamic bank, attracted 681 million rials ($1.77 billion) of bids in its initial public offer of shares, 11 times the sum which it was raising, the lead manager for the IPO said on Saturday.
The bank will be listed on the Muscat Securities Market on June 12, Oman Arab Bank said. Bank Nizwa raised 60 million rials by selling 40 percent of its capital………………………………………..Full Article: Source

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Gulf Finance House is eyeing acquisitions and restarting stalled projects in Bahrain in an effort to turn around its fortunes. The Islamic investment bank had been one of Bahrain’s biggest deal makers before the financial crisis, but it was humbled by the collapse in the property market and dwindling investment banking business.
It reached an agreement with sukuk holders last week to push back repayment on US$110 million (Dh404m) of Islamic bonds for six years………………………………………..Full Article: Source

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Ajman Bank , the award-winning Islamic financial services institution committed to transforming the experience of Islamic banking, announced today that it has been named ‘Best Islamic Bank’ on the Arab Achievement Awards presented on the third Annual Arab Investment Summit held on 15th May in Abu Dhabi.
The Annual Arab Investment Summit offers an excellent networking platform for Arab Investors, Financiers, and Government Officials to discuss and expand local and cross-border trade and investment opportunities and build new business partnerships, with a special focus on strengthening relationships among Arab countries. The awards it presents honour companies that stand out in particular areas of expertise in banking, finance, and other major development sectors of the industry. (Press Release)

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As he delivered his welcome address to delegates at the Global Donors Forum in Kuala Lumpur recently, Malaysian Prime Minister Datuk Seri Najib Tun Razak sought to make a few crucial points about the necessity, and viability, of Islamic finance and micro-finance in today’s world.
“At the heart of Islamic finance is, of course, the genuine philanthropic spirit,” he said, “a spirit that pervades both its giving and its business practices and that holds the potential to transform the lives of billions of the poorest people in the world.”……………………………………….Full Article: Source

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The interest-based financial system has nurtured a debt-ridden environment that inflicts anxiety on people with mortgages and business loans lest they are caught in debt-traps and forced failures. This would explain the radical change of attitude in recent decades toward the importance of ethics in business almost everywhere.
Leonard Swidler of Temple University thus spoke of the “rise of business ethics and spiritual movement,” in many western quarters manifested by the emergence of institutions such as the World Business Academy, the Council for Ethics in Economics, the Caux Roundtable, and the Global Dialogue Institute – all based in the United States………………………………………..Full Article: Source

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The insurance industry in the Gulf region is not likely to see major consolidation over the coming two years due to “comfortable” capitalisation of domestic insurers and “little” shareholder pressure. But foreign risk cover providers may enhance their foothold in the market, according to a study.
The GCC (Gulf Cooperation Council) Insurance Barometer, recently launched by the Qatar Financial Centre Authority, found that 60% of respondents do not expect the market to consolidate over the next 12-24 months………………………………………..Full Article: Source

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Initial forays into the Takaful market in the UK have so far met with failure. Despite this, there is still a conviction that a relevant Takaful market exists.
The appeal of Islamic finance and Takaful insurance is growing globally, with particular success in emerging markets. But is Takaful finally ready to take off in the UK?……………………………………….Full Article: Source

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Apart from the stable economy, the presence of a favourable demography in Oman provides ample potential for the growth of Islamic banking in Oman. According to reports, about 20 per cent of adult Omanis prefer a Sharia compliant bank for their banking needs. This trend is similar to overall 22 per cent Sharia compliant assets in the GCC region. In Oman 60 per cent of the population is less than 30 years of age.
“Also with the government plans towards diversification of economy we anticipate the financing needs to increase in Oman thereby providing opportunities for the newer banks”, say analysts of Gulf Baader Capital Market in a report on Bank Nizwa initial public offering………………………………………..Full Article: Source

Gulf Finance House is eyeing acquisitions and restarting stalled projects in Bahrain in an effort to turn around its fortunes. The Islamic investment bank had been one of Bahrain’s biggest deal makers before the financial crisis, but it was humbled by the collapse in the property market and dwindling investment banking business.
It reached an agreement with sukuk holders last week to push back repayment on US$110 million (Dh404m) of Islamic bonds for six years………………………………………..Full Article: Source

Malaysia’s largest lender Malayan Banking Bhd (Maybank) on Thursday posted an 18.4 percent increase in first-quarter net profit, lifted by a stronger loan business and its Islamic banking operations.
The bank posted a net profit of 1.35 billion ringgit ($429.25 million) in the quarter ended March 31, 2012 compared with 1.14 billion ringgit in the same quarter a year ago………………………………………..Full Article: Source

His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah graced the official launching ceremony of Warba Bank at the Salwa Sabah Al-Ahmed Ballroom. His Highness the Crown Prince Sheikh Nawaf Al-Ahmed Al-Jaber Al-Sabah, Parliament Speaker Ahmed Abdulaziz Al-Saadoun, Prime Minister Jaber Al-Mubarak Al-Sabah were also in attendance along with several Government ministers and other VIP guests.
Warba Bank is an Islamic Bank established by virtue of an Amiri Decree, officially registered in the Central Bank of Kuwait’s list of Islamic Banks on the 5th of April, 2010………………………………………..Full Article: Source

Dubai Islamic Bank (DIB, rated Baa1 by Moody’s and A by Fitch) priced on Tuesday 22 May a $500 million five-year Sukuk due May 2017 under its newly established $2,500,000,000 Sukuk Programme.
Deutsche Bank, DIB, Emirates NBD, HSBC and National Bank of Abu Dhabi acted as Joint-Lead Managers and Joint-Bookrunners, with Sharjah Islamic Bank and Union National Bank acting as Senior Co-Managers and Qatar Islamic Bank as Co-Manager. The transaction was priced at a profit rate of 4.752% with a spread of 365 bps over the US$ five year mid swaps………………………………………..Full Article: Source

April and May looked to be banner months for sukuk. Two deals, one from the Saudi Electricity Company (SEC) and the other, from Banque Saudi Fransi, the Saudi lender part-owned by Credit Agricole, marked two rare but popular US dollar denominated issues which were highly prized by investors.
The benchmark deals helped underscore growing investor appetite for Islamic bonds………………………………………..Full Article: Source

UAE Central Bank calls for creation of a centralised Sharia board to facilitate the sale of sukuk. The Arab states must develop their bond markets by issuing laws to encourage transactions in bonds, UAE Central Bank Governor Sultan Bin Nasser Al Suwaidi said.
“Arab states have been developing their financial markets, but the public bonds have remained limited in the Arab market, though they are important. There’s a need that the government bonds should constitute at least 15 per cent to 25 per cent of the GDP [gross domestic product],” Al Suwaidi said……………………………………….Full Article: Source

Exim Bank Malaysia, a state-owned export finance company, began marketing as much as $500 million of dollar-denominated bonds in its first global offering, two people familiar with the matter said.
Nomura Holdings Inc., BNP Paribas SA, Malayan Banking Bhd. (MAY) and CIMB Holdings Bhd. were hired to manage the sale, said the people who couldn’t be named as the details are private. The $500 million sale is part of Exim Bank’s $1.5 billion medium- term note program, they said………………………………………..Full Article: Source

The Islamic Finance trainers have introduced seven more Sharia Standards for the Islamic Banks and Institutions in the United Arab Emirates, calling on operators to hold ‘meetings on regular basis’ to meet industry’s growing demand.”
The launch of the standards, which were developed by the Bahrain based premium Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and held at the Grand Hyatt Hotel in Dubai on Wednesday was attended by dozens of financial institutions and trainers………………………………………..Full Article: Source

With an estimated $1.2 trillion in assets in 2012, Islamic banks have now developed in size and capability to such an extent that they can participate in financing major infrastructure projects either through direct financing or through facilitating the issuance of sukuk.
“Today, countries all over the world are turning to Islamic capital markets for financing, and most major international financial institutions are active in Islamic banking,” says Abdulkareem A. Abu Alnasr, chief executive officer of the National Commercial Bank ( NCB ) - the largest bank in financial services group in the region ……………………………………….Full Article: Source

The inauguration ceremony of Pakistan’s Premier Islamic Brokerage Company “Diyanah Islamic Financial Services (DIFS)” took place on Wednesday at a local hotel.
The event was presided over by renowned scholar Shariah Advisor Mufti Zubair Usmani while other Islamic scholars, people from the brokerage community, distinguished guests and media personnel attended the event. CEO Central Depository Company (CDC) also graced the occasion………………………………………..Full Article: Source

Saudi Hollandi Bank (SHB) will provide the National Prawn Company ( NPC ) with SR460 million of Islamic funding to support the firm’s long-term growth ambitions, including the second phase development of its Red Sea prawn and fish cultivation projects, a statement said.
The funding is one of the biggest single bank transactions to date for a private sector company in Saudi Arabia in the aquaculture sector………………………………………..Full Article: Source

Oman’s Ministry of Commerce and Industry has halted the merger of HSBC Oman and Oman International Bank ( OIB ) following an objection raised by an India-based businessman.
The order issued on May 16 by the Ministry of Commerce and Industry , Directorate-General of Commerce in Muscat, states that according to Article 13 bis 8 of Commercial Companies Law 4/74, the merger has been suspended unless the objection raised by the businessman is settled or withdrawn by him. Another option is that the said objection is overruled by a court order………………………………………..Full Article: Source

The United Arab Emirates needs a centralized body for the Islamic finance industry to help develop its sukuk market further, a top central bank official said on Wednesday. Saif al-Shamsi, assistant governor for monetary policy and financial stability, said the law calls for a central sharia committee at the federal level that would work with sharia boards at the corporate level but that has not been implemented yet federally.
“Despite the advanced state of the UAE in issuing Islamic sukuk, we believe that we still need to do more,” he said in a speech. “This includes finding a unified body for the main fatwas (decrees) in the Islamic financial services domain, as is the case in Malaysia.”……………………………………….Full Article: Source

“The Basel III rules are almost rendered meaningless without effective supervision. They should be implemented in full on a timely and sustainable basis,” said William Coen, Deputy Secretary General of the Basel Committee on Banking Supervision, Bank of International Settlements (BIS), the group of 27 Governors of Supervisory Authorities that set the rules of the game for international banking.
This is a challenge for any standard-setting body in international financial services, including IOSCO (International Organization of Securities Commissions), IASB (International Accounting Standards Board), IFSB (Islamic Financial Services Board), and AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions)………………………………………..Full Article: Source

The Accounting and Auditing Organisation for Islamic Financial Institutions, or AAOIFI, announced on Wednesday new seven Shariah standards in Dubai. The new standards include; Financial Rights and its Management, the Regulations of Liquidity Management, Bankruptcy, Capital and Investment Protection, Agency in Investment, Calculation of the Profit Transactions and Options of Trust.
The new standards shall be added to the existing 41 Shariah standards and the 40 accounting standards which have been announced previously. The event was organised by Menhaj Advisory, which also discussed the standards with the Islamic Bank industry practitioners and how to implement the same in their applications………………………………………..Full Article: Source

Dubai Islamic Bank said its $500 million (Dh1.83 billion) five-year sukuk due May 2017 has been four times oversubscribed. The sukuk’s pricing was announced on Tuesday under its newly established $2.5 billion sukuk programme.
Deutsche Bank, DIB, Emirates NBD, HSBC and National Bank of Abu Dhabi acted as joint lead managers and joint bookrunners, with Sharjah Islamic Bank and Union National Bank acting as senior co-managers and Qatar Islamic Bank as co-manager. The transaction was priced at a profit rate of 4.752 per cent with a spread of 365 bps over the five-year mid swaps………………………………………..Full Article: Source

Saudi Arabia’s National Industrialization Co (Tasnee) has priced a 2 billion riyals ($533.3 million) Islamic bond, or sukuk, the first time the petrochemicals firm has tapped the bond markets.
The privately-placed, seven-year transaction was issued at par and carried a profit rate of 105 basis points over the six-month Saudi Interbank Offered Rate, a document from HSBC’s Saudi Arabian unit, which arranged the deal, said………………………………………..Full Article: Source

Morocco is considering a potential dollar-denominated international bond of up to $1 billion in September or October. “It would be our first issue in dollars and give us the opportunity to diversify,” said El Hassan Eddez, deputy director, treasury and external finance at the ministry’s debt office.
Eddez said the government is also mulling issuing Islamic bonds, or sukuk, once the legal framework is in place possibly by next year. Morocco’s government, led since December by the moderate Islamist Justice and Development Party (PJD), outlined in March how it intends to develop Islamic finance in the country………………………………………..Full Article: Source

Saudi Arabia’s National Industrialization Co (Tasnee) has priced a 2 billion riyals ($533.3 million) Islamic bond, or sukuk, the first time the petrochemicals firm has tapped the bond markets.
The privately-placed, seven-year transaction was issued at par and carried a profit rate of 105 basis points over the six-month Saudi Interbank Offered Rate, a document from HSBC’s Saudi Arabian unit, which arranged the deal, said………………………………………..Full Article: Source

The rapid international expansion of Islamic finance reflects its ability to remain competitive and to increasingly meet the complex requirements of the global financial community.
With various countries now intensifying efforts to develop their respective Islamic financial capabilities, it is becoming increasingly vital to build deeper relationships between the key markets for Islamic finance and also between the leading industry players in each of these jurisdictions………………………………………..Full Article: Source

Sakana Holistic Housing Solutions, the innovative Islamic mortgage finance provider, recently signed a memorandum with ARK Holding to provide home financing for ready-to-move-in super deluxe luxury Kazerooni Villas located near St Christopher’s School in Saar.
The project comprising 10 villas each with built up area of approximately 550 sq m is developed and promoted by Kazerooni Contracting and offered for sale to Bahrainis and other GCC nationals at BD285,000 ($756,130.9) and above depending on plot size and location………………………………………..Full Article: Source

The Finance Ministry turned down a request by the Thai Hotels Association (THA) for at least 10 billion baht in aid to help small and medium-sized tourism operators survive the business downturn.
Instead, the ministry advised the THA to discuss financial assistance with the Islamic Bank of Thailand (IBank). THA president Surapong Techaruvichit said most SME tourism operators cannot access the 5-billion-baht soft loan programme approved recently by the government due to lack of qualifications………………………………………..Full Article: Source

The Islamic Development Bank and the Asian Development Bank has agreed to a $133 million financing plan to develop two wind projects in Pakistan as the nation seeks new renewable sources to overcome power shortages.
Fauji Foundation, set up as a charitable trust for former servicemen, and the nation’s Tapal Group are backing the projects totaling 100 megawatts, according to a statement by the Islamic Development Bank………………………………………..Full Article: Source

Noor Islamic Bank is backing what could be Islamic finance’s biggest shake up in years, lending its support to the announcement of seven new standards from the Middle East’s leading Islamic finance regulator, the Accounting and Auditing Organization for Islamic Financial Institutions ( AAOIFI ).
The new standards govern key areas of Islamic finance, including financial rights and their management, liquidity management; bankruptcy, capital and investment protection, agency investment, calculation of profits transaction and options of trust………………………………………..Full Article: Source

Saudi Arabia’s banks face the biggest risk from a maturity mismatch between assets and liabilities and need to find “creative” ways to bridge the gap, the chief executive officer of Alinma Bank (ALINMA) said.
The mismatch needs to be monitored and can be bridged by issuing long-dated securities like Islamic bonds, Abdulmohsen Al Fares, told reporters at a conference in Riyadh today. Some foreign banks cut lending in Saudi Arabia after the debt crisis in Europe which is creating “opportunities for local banks as well as for others like Asian banks,” he said………………………………………..Full Article: Source

Under the patronage and attendance of His Highness the Amir Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah, Warba Bank celebrated its official launch during a ceremony at Salwa Sabah Al-Ahmed Ballroom. The bank started operating during the first quarter of 2012 with the opening of four branches.
Warba Bank came into existence with the issuance of an Amiri decree and has been registered in the Islamic Banks’ register of the Central Bank of Kuwait since April 5, 2010. The government, represented by the Kuwait Investment Authority (KIA), owns 24 percent of the bank’s total capital………………………………………..Full Article: Source

Sharjah Islamic Bank were honoured with the “People’s Choice” Award for the best Customer Experience Provider in the Middle East at the CUSTOMER360ME Summit & Awards 2012, an annual event managed and organized by IIR Middle East, part of Informa plc, the leading international provider of specialist information and services for the academic and scientific, professional and commercial business communities.
Speaking about the award, Mohammed Abdullah, CEO of Sharjah Islamic Bank, said, “We are very proud to have received this prestigious award. SIB prides itself on delivering the highest standards in customer service and satisfaction and it is extremely satisfying to see that our esteemed customers place such a high value on the services we provide.” (Press Release)

Amana Bank further strengthened its Independent Sharia Supervisory Council with the inclusion of Ash-Sheik Mufti Muhammad Hassan Kaleem, an established Islamic banking academic and practitioner from Karachi, Pakistan.
Ash-Sheik Hassan Kaleem is a permanent faculty member of Jamiah Darul-Uloom Karachi (a leading Institute of Islamic Sciences in Pakistan) and the Centre of Islamic Economics, Karachi. He is also a trainer of Sharia standards at the Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI), Bahrain and a visiting faculty member of the National Institute of Banking and Finance (State Bank of Pakistan)………………………………………..Full Article: Source

Loss-making Malaysia Airlines on Tuesday said it planned to raise up to 2.5 billion ringgit ($800 million) in Islamic bonds as part of an ambitious plan to escape financial difficulties.
In February the flag carrier said it lost 2.52 billion ringgit last year largely due to soaring fuel costs, admitting it was “in crisis”. The new funding plan comes after budget carrier AirAsia and Malaysia Airlines scraped their controversial share swap deal early this month………………………………………..Full Article: Source

Malaysia Airlines (MAS) has proposed to launch a Sukuk programme of up to RM2.5 billion to shore up its capital base, with the proposal currently pending regulatory approval.
The Sukuk programme is part of the airline’s funding plan which consists of three main pillars, with the first being to address its working capital requirements………………………………………..Full Article: Source

Dubai Islamic Bank priced a five-year, $500 million Islamic bond, or sukuk, on Tuesday, the first time the bank has tapped debt capital markets since 2007. The deal priced at par with a profit rate of 4.752 percent at a spread of 365 basis points over midswaps, arranging banks said.
The spread was 10 basis points tighter than initial price guidance released the previous day, indicating good demand for the issue………………………………………..Full Article: Source

Dubai Islamic Bank has launched a $500 million (Dh1.8 billion), five-year sukuk sale after receiving good demand, a banker aware of the transaction said. The launch spread of 365 basis points over mid swaps is tighter than the initial guidance, the banker, who declined to be identified, told Zawya Dow Jones.
Deutsche Bank, DIB, Emirates NBD, HSBC and National Bank of Abu Dhabi are helping arrange the Regulation S transaction, after DIB met fixed-income investors in Asia, Middle East and Europe over the past few days. Fitch Ratings last week said it has assigned DIB’s $2.5 billion trust certificate issuance program a ‘A ‘expected rating………………………………………..Full Article: Source

Saudi Arabia’s banks may follow Banque Saudi Fransi and sell bonds denominated in dollars to better meet the long-term funding needs of infrastructure and industrial projects in the biggest Arab economy.
The world’s top oil exporter is executing more than $500 billion of projects to reduce its reliance on crude exports, modernise the country and create jobs. Some of this project financing needs to take place in dollars as companies seek to import equipment for power plants and refineries………………………………………..Full Article: Source

Despite the idea of platforms to resolve Islamic finance disputes gaining popularity, introducing the schemes could involve hidden risks that few have considered.
“This potential platform would work for day to day retail banking products such as shariah-compliant home or personal finance,” said Debashis Dey of Clifford Chance in Dubai. “But it might run into investor resistance if applied to bigger ticket transactions with global participants.”……………………………………….Full Article: Source