Standard Chartered Private Bank has launched a suite of Islamic financial solutions for its clients, including fiduciary deposits, property financing, equities, Islamic fixed income instruments (Sukuk), mutual funds (including Exchange-Traded Funds), third-party structured products and discretionary services.
These solutions are now available to clients across the Private Bank’s booking centres in London, Geneva, Jersey and Dubai………………………………………..Full Article: Source

Standard Chartered Plc will begin offering Islamic financial products to its private-banking clients to boost its share of a fast-growing market.
The products, which comply with Islam’s ban on interest, include deposit accounts, property financing, equities, Islamic bonds or sukuk and mutual funds, the London-based lender said………………………………………..Full Article: Source

The controversial plan by regulator Bank Negara Malaysia (BNM) to set up an Islamic mega bank using public funds could involve the purchase of an existing lender, Asian Finance Bank (AFB), say industry sources. The AFB is one of three foreign Islamic banks in Malaysia.
But perhaps likely to be more troubling than the use of public funds is a move to offer Islamic banking expert Professor Datuk Dr Rifaat Ahmed Abdel Karim and other “promoters” of the idea up to nine per cent of the shares in the super bank, which is to be capitalised at US$1 billion (RM3.2 billion)………………………………………..Full Article: Source

Taking its name from an Arabic term translated as ‘house of money’ or ‘house of wealth’, privately-held Bayt Al Mal Investment was historically a financial institution responsible for the administration of taxes in Islamic states, particularly in the early Islamic Caliphate.
It served as a royal treasury for the caliphs and sultans, managing personal finances and government expenditures, and was the department that dealt with the revenues and all other economical matters of the state………………………………………..Full Article: Source

Instead of charging interests on a monetary loan, Islamic finance companies generally offer homebuyers a sale, rent or partnership contract on the home.
In the sale model, the Islamic bank purchases the home, immediately sells it to its customer at a mark-up and the customer pays the bank in installments, according to Georgetown University law professor Babback Sabahi, who lectures widely on Islamic financing………………………………………..Full Article: Source

Bank Muscat, Oman’s largest bank by market value, is planning to raise 96.7 million rials ($251.17 million) from selling shares to existing holders, as the lender seeks to fund its credit growth and venture into Islamic finance.
Bank Muscat, in which Dubai Financial Group has a 14.7 percent stake, is offering 226.5 million shares at 0.427 rials per share as part of the issue, a document from the lender seen by Reuters showed………………………………………..Full Article: Source

Pakatan Rakyat (PR) MPs are demanding Bank Negara Malaysia (BNM) explain why it is proposing that Petronas and pension funds be used to set up a mega Islamic bank, saying that foreign institutions should instead be used to underwrite some of the US$1 billion (RM3.2 billion) in start-up capital.
Opposition lawmakers are also questioning BNM’s role in the matter, pointing out that the central bank has no business to get involved in the setting of a new bank………………………………………..Full Article: Source

Maybank Kim Eng Investment Research said much as it continues to view Bank Islam’s and Syarikat Takaful’s (RM6.12, Not Rated) prospects positively, the recent run-up in BIMB’s share price is cause to pause and take stock.
It said on Monday its sum-of-parts derived target price of RM3 for BIMB prices Bank Islam at a price-to-book value (PB/V) of 1.6 times (2012 returns on equity: 12.7%) and Syarikat Takaful at its current P/BV of 2.0 times, valuations which we believe are fair at this stage………………………………………..Full Article: Source

Islamic Banking and Finance is currently popular among banking and financial organisations around the world for practicing non-interest financing and adopting the principle of profit sharing. As a Muslim country, Malaysia acknowledges this concept and encourages local banking organisations to implement this concept into their banking operations.
This industry is currently experiencing rapid growth, resulting in an increased demand for skilled professionals to contribute their knowledge and experience to support and facilitate this continued expansion………………………………………..Full Article: Source

Fitch Ratings has assigned Development Bank of Kazakhstan’s (DBK) forthcoming Islamic Medium Term Note (IMTN) Programme a ‘BBB-(exp)’ expected rating.
The IMTN Programme expected rating is equalised with DBK’s Long-term foreign-currency Issuer Default Rating (IDR). Assignment of the final rating is contingent upon receipt of the final documentation from the issuer. Fitch notes, however, that issues under the Programme may not necessarily be assigned a rating and the issues may not necessarily be assigned the same ratings as the rating of the Programme………………………………………..Full Article: Source

Pos Malaysia has agreed a deal with the Islamic bank Bank Muamalat Malaysia to form a joint venture to provide Islamic loans under the Ar-Rahnu system.
The new company Pos Ar-Rahnu will offer Islamic pawn broking services in Malaysia’s network of more than 700 post offices. The Malaysian postal operator has acquired the entire capital of a company by the name of Bright Emerald Sdn Bhd, through which the joint venture will operate, renamed Pos Ar-Rahnu………………………………………..Full Article: Source

The delegation, led by New South Wales premier Barry O’Farrell and including financial services professionals, will explore regulatory and legal issues at a roundtable discussion with the Dubai Export Development Corp.
“The event will discuss business opportunities in New South Wales, with particular attention given to Islamic finance,” an Australian government official, who declined to be named under briefing rules, told Reuters. The delegation will also visit Abu Dhabi and Lebanon………………………………………..Full Article: Source

The setting up of mega Islamic banks in Malaysia will not merely serve the needs of the domestic economy but also position the country as the benchmark in Islamic global finance, said Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.
It would also place Malaysia far ahead of other competing countries, he said. “Bank Negara has issued one licence. Why is there such a need… we need to see in the context of the country’s economy………………………………………..Full Article: Source

Tun Dr Mahathir Mohamad has voiced his support for a proposal to set up a mega Islamic bank with Petronas and pension funds being used to underwrite some of the US$1 billion (RM3.2 billion) in start-up capital.
The influential former prime minister insisted last night there would be nothing wrong should the government decide to go ahead with Bank Negara Malaysia’s (BNM) proposal to use an injection from the cash-rich state oil firm as “Petronas money is government money.”……………………………………….Full Article: Source

Oman’s Bank Nizwa, a newly-formed Islamic lender which sold shares to the public in June, failed to elect a new board after it was unable to get the required quorum at a general meeting last week, three sources familiar with the matter said.
Bank Nizwa, the sultanate’s first Islamic bank, attracted 681 million rials ($1.77 billion) of bids in its initial public offering, 11 times the sum it planned to raise, signalling strong interest from investors………………………………………..Full Article: Source

Shareholders of National Bank of Oman have approved the Board of Directors’ recommendation for the appointment of the Fatwa and Sharia Supervisory Board for the Bank’s Islamic Banking Services.
The approval came at NBO’s Extraordinary General Meeting (EGM) held at the Crowne Plaza Muscat recently. Attendees also approved the Board’s proposal to amend certain articles in the Bank’s Articles of Association including the incorporation of Islamic Banking activities in compliance of Sharia Law, through the establishment of an Islamic Banking Window………………………………………..Full Article: Source

When the Supreme Council for the Armed Forces, which has ruled the country for the last 16 months, decided to dissolve parliament, the ramifications of the decision were not limited to the political arena, but also encompassed Islamic banking which had begun to benefit from the rise of Islamist political currents.
The parliament, in which Islamists controlled 70% of the seats, created powerful pressures on the Central Bank to allow more freedom to banks to provide Islamic Banking services. It also encouraged a greater number of banks to apply for licenses in order to provide such services. Such requests had been automatically rejected in previous years………………………………………..Full Article: Source

Equity Bank, the largest local bank by consumer base, plans to start offering shariah compliant products and services by the end of this year. Chief executive, James Mwangi said the bank has received the necessary approval and is putting up supporting systems to further grow its consumer base.
He said offering Islamic banking products was also a way of extending its financial inclusion agenda in the region. “This is also a good business opportunity and we also do not want to be a bank that’s inclined to only one religion,” Mwangi said. He was meeting global officials of Infosys, providers of Finacle technology used by the bank………………………………………..Full Article: Source

Dr. Ahmad Mohamed Ali, president of the Jeddah-based Islamic Development Bank (IDB) and Tiena Coulibaly, Mali’s minister of economy and finance signed an agreement worth $ 12.4 million for implementing a social housing project in Mali’s capital city of Bamako.
According to the agreement, by 2014 the project is expected to provide suitable housing along with basic facilities such as water, electricity and sanitation services for around 1000 families with limited income inBamako. The project will also provide around 8600 job opportunities during the construction period………………………………………..Full Article: Source

NASDAQ Dubai welcomed the listing of a $650 million Sukuk by Jebel Ali Free Zone ( JAFZ ) on its market. The listing confirms the exchange’s status as the largest in the Middle East for Islamic bonds, bringing the total nominal value of its listed Sukuk to $7.1 billion.
Jeff Singer, Chief Executive of NASDAQ Dubai, said: “As the international exchange serving the UAE and the region, NASDAQ Dubai is delighted to be chosen by JAFZ for its Sukuk listing. NASDAQ Dubai offers Sukuk issuers and their investors a well regulated, effective and internationally visible platform………………………………………..Full Article: Source

Dubai state-owned industrial hub Jebel Ali Free Zone (Jafza) repaid in full a 7.5 billion dirhams ($2.04 billion) Islamic bond, or sukuk, on June 21, five months ahead of maturity, a regulatory filing from the company said on Sunday.
The early redemption of the sukuk certificates was expected after the company, a unit of state conglomerate Dubai World , secured agreement from bondholders to change the terms of the notes last month. The sukuk was refinanced through a $1.2 billion sharia-compliant loan, along with a new sukuk issue of $650 million and the company’s own cash resources………………………………………..Full Article: Source

Bahrain is sounding out investor appetite at roadshows this week for an international conventional bond issue of up to $1.25 billion and analysts are already suggesting that the issue should attract support at a time when some Western bonds look questionable.
Bankers said Bahrain’s first conventional debt offering since 2010 would be open to qualified investors in the US and elsewhere. They said the bond might be as large as Bahrain last tapped the international market in November with a $750 million, seven-year sukuk, which was largely sold to investors in the Middle East………………………………………..Full Article: Source

Gulf investment funds dedicated to sukuk are increasing in size and number, but the growth spurt may not be enough to solve the concentration and liquidity issues facing the Islamic bonds market.
Assets of sukuk funds based in the Gulf now exceed $500mn, a 31% increase since last year, according to Reuters calculations based on data from fund companies. This remains small compared to the total Islamic bonds market; global sukuk issuance was $86bn in 2011, and $43bn in the first quarter of this year, according to Thomson Reuters data………………………………………..Full Article: Source

The S&P/OIC COMCEC 50 Shariah Index is designed to measure the performance of 50 leading Shari’ah-compliant companies from the member states of the Organisation of Islamic Cooperation (OIC). The Index has been designed in partnership with the OIC.
Companies from all 19 countries and territories whose exchanges are members of the OIC Exchanges and are covered by S&P Indices are eligible for the index. These are: Bahrain, Bangladesh, Côte d’Ivoire, Egypt, Indonesia, Jordan, Kazakhstan, Kuwait, Lebanon, Malaysia, Morocco, Nigeria, Oman, Pakistan, Qatar, Saudi Arabia, Tunisia, Turkey and the United Arab Emirates………………………………………..Full Article: Source

Bahrain-based Takaful International has launched a new mobile application available on iPhone and Android allowing customers to arrange insurance at the touch of an on-screen button.
Younis J. Al Sayed, CEO of Takaful International said, “This new ‘Mobile Takaful’ application reflects Takaful’s commitment to support its customers in their mobility needs. Development of digital services is a key component of our strategy to be a leading and innovative mobility actor………………………………………..Full Article: Source

Brunei will have to wait for “some time” before human resource investments in Islamic finance begin to pay full dividends despite the sector already profiting from 20 years of experience and a generation of professionals that have grown up inside the industry, according to the Oxford Business Group.
Having introduced the Islamic finance option more than two decades ago, Syariah-compliant banking now accounts for around 40 per cent of the local market, a figure some experts believe would rise to 60 per cent by 2017, the OBG said in its latest economic update on the country………………………………………..Full Article: Source

Saudi Arabia’s Crown Prince Salman bin Abdulaziz said the kingdom will remain on its “Islamic path without deviation,” Arab News cited him as saying.
Salman, who also serves as defense minister, said he would try to strengthen the kingdom’s security and stability, the Jeddah-based newspaper reported. The crown prince made the comments as princes, Islamic scholars and senior military officials pledged their allegiance to him, the newspaper said………………………………………..Full Article: Source

The Muslim Brotherhood’s Mohamed Mursi was elected Egypt’s first Islamist civilian president, capping an acrimonious race that divided a nation whose economy is reeling and where the military has curbed his authority.
Mursi, 60, defeated Ahmed Shafik, who served as Hosni Mubarak’s last premier, election commission head Farouk Sultan said in a televised press conference. Mursi won 13.2 million votes or 51.7 percent, beating Shafik who garnered 12.3 million votes or almost 48.3 percent, Sultan said………………………………………..Full Article: Source

Gulf investment funds dedicated to sukuk are increasing in size and number, but the growth spurt may not be enough to solve the concentration and liquidity issues facing the Islamic bonds market.
Assets of sukuk funds based in the Gulf now exceed $500 million, a 31 percent increase since last year, according to Reuters calculations based on data from fund companies. This remains small compared to the total Islamic bonds market; global sukuk issuance was $86 billion in 2011, and $43 billion in the first quarter of this year, according to Thomson Reuters data………………………………………..Full Article: Source

Saudi Arabia is one of the main contributors to the Islamic finance industry, with an estimated $94 billion in Islamic finance assets representing 26 per cent of the GCC total, a report said.
Saudi Arabia’s contribution is also valued at 8.2 percent out of total global Islamic finance assets, added the Deloitte Middle East Islamic Finance Knowledge Center (IFKC) report entitled ‘Empowering Risk Intelligence in Islamic Finance’………………………………………..Full Article: Source

A recent study conducted by Deloitte Middle East Islamic Finance Knowledge Center (IFKC) put Saudi Arabia as a major contributor to the global Islamic finance, representing 8.2 percent of the total Islamic finance assets, Trade Arabia reported.
The study, entitled “Empowering Risk Intelligence in Islamic Finance”, also placed the oil-rich Kingdom on top of GCC contributors to the Islamic finance industry, with an estimated USD94 billion in Islamic finance assets, representing 26 percent of GCC’s total contribution………………………………………..Full Article: Source

The Development Bank of Kazakhstan is in the final stages of preparing to issue the country’s first sukuk, or Islamic bond. The quasi-sovereign issue by the state development bank is expected to set a benchmark for Kazakh sukuk, opening the way for corporate Islamic bonds to be placed in future.
The DBK, which is 100% state owned, is planning a Malaysian ringgit-denominated Islamic Medium Term Note Programme with a limit of MYR1.5bn ($500m)………………………………………..Full Article: Source

Dubai’s sovereign bonds have rallied this week, benefitting from good liquidity in the market as well as a rise of investor confidence in the high-flying emirate’s ability to repay debts and sustain growth.
Traders cited a general improvement in investor sentiment towards Dubai over the last several months, thanks to its progress in restructuring corporate debt and its image as a safe haven amid regional instability………………………………………..Full Article: Source

Dubai-based Islamic mortgage lender Tamweel has picked three banks to arrange investor meetings ahead of a possible asset-backed dollar Islamic bond, or sukuk, arrangers said. A potential issue would be the second for Tamweel this year.
The lender, a unit of Dubai Islamic Bank, last tapped global debt markets with a $300 million 5-year sukuk in January, fully-guaranteed by its parent………………………………………..Full Article: Source

Indonesia is scheduled to sell sovereign Islamic bond on 26 June at indicative value of 1-T Rupiah (about US$106.4-M), aiming at financing the state budget this year, a statement released by the financial ministry said.
The sale of the Islamic bond would be conducted through auction basis, to sell 4 series of the bond, maturing from Y’s 2018 to 2037 and providing rate of returns between 4.45 to 6.10%………………………………………..Full Article: Source

Barwa Bank, one of Qatar’s fastest growing Shari’ah compliant banks, acted as joint lead manager on the recent $800m five-year Sukuk for Saudi-based Islamic Development Bank (IsDB).
Steve Troop, CEO, Barwa Bank, commented on the deal which marks the bank’s first Sukuk involvement as joint lead manager and its increasing presence in the Debt Capital Markets , “We are extremely proud to be lead arrangers for this transaction which is IsDB’s first public debt issuance in over a year. Our aim is to associate Barwa Bank with the leading institutions and IsDB, the highest rated institution in the Middle East (AAA), represents one of the most prestigious names in Islamic Finance. (Press Release)

Al Rajhi Bank Malaysia on Monday introduced Collateralised Commodity Murabahah-i (CCM-i) as a new instrument for its Treasury use and is pleased to be the first Islamic financial institution to adopt such instrument in managing its daily money market transactions.
The announcement was made at their Kuantan Branch launching ceremony which was graced by YAB Dato’ Seri DiRaja Adnan Yaakob, Menteri Besar Pahang………………………………………..Full Article: Source

In yet another case of musical chairs, Absa has confirmed the resignation of its head of Islamic banking, who has left the group to pursue other interests.
The resignation of Amman Muhammad as MD of Absa Islamic Banking, is the latest high-profile departure of a senior executive from the Barclays-owned group, which has already confirmed its group deputy CEO Louis von Zeuner is stepping down at the end of the year………………………………………..Full Article: Source

Capital Intelligence (CI), the international credit rating agency, announced that it has affirmed Bahrain-based AlBaraka Islamic Bank (AIB)’s Financial Strength Rating (FSR) at ‘BB’ on the basis of its comfortable liquidity and increased capital adequacy ratio at end Q1 2012.
The FSR remains constrained by a high ratio of impaired financings, concentration risks, very weak profitability and increased risk exposure to Pakistan. In view of the Bank’s strong ownership through AlBaraka Banking Group (ABG), the Bank’s Long and Short-Term Foreign Currency ratings are maintained at ‘BB+’ and ‘A3′ respectively. (Press Release)

Fitch Ratings has affirmed the Islamic Development Bank’s (IsDB) Long-term Issuer Default Rating (IDR) at ‘AAA’ with a Stable Outlook and Short-term IDR at ‘F1+’.
IsDB’s ratings are underpinned by strong intrinsic features, primarily by excellent capitalisation. IsDB is one of the most highly capitalised multilateral development banks (MDBs) covered by Fitch………………………………………..Full Article: Source

Libya’s Islamic cleric Sheikh Al-Sadok Ghariani has called on Libyan citizens to embrace banking and use cheques for transactions, amid reports that a huge chunk of the money in circulation in the country are outside the banking system.
Sheikh Ghariani’s call, in a statement issued here, came against the background of a disclosure by officials of the Central Bank of Libya (BCL) that more than 14 billion dinars (about US$10 billion) are in circulation outside the banking system………………………………………..Full Article: Source

The Islamic Development Bank (IDB) has signed a financing agreement with the Republic of Mali to provide an amount of US$ 12.4 Million to fund a social housing project in Bamako, Mali.
The IDB’s total amount of funding to Mali amounts to US$756 M, inclusive of 90 financing operations to developmental projects, trade, and private sector. The agreement was signed by each of Mali’s Minister of Finance and economy Tiena Coulibaly and the IDB head Ahmad Muhammad Ali, according to a statement disclosed by the IDB………………………………………..Full Article: Source

Bank Negara will host the third Global Islamic Finance Forum (GIFF), beginning Sept 18, to discuss and exchange views on the growth and opportunities in the internationalisation of Islamic finance and strengthening cross-border economic interlinkages.
The GIFF 2012 is a high-level multi-track event that brings together regulators, scholars and financial industry players who are key drivers in the global development of Islamic finance………………………………………..Full Article: Source

Islamic finance is usually described as an infant market with domestic focus and supported by the government, hence, much like a baby reliant upon it parents in a home environment of nutrition, nurturing, and natural growth.
“To be competitive in the new world order, one has to think like an immigrant, create like an artisan, work like a start-up and provide service like a waitress, and continuously create a unique value add.” Thomas Friedman, Foreign Affairs Correspondent of the NY Times. In a “hyper-connected world, the age of ‘average’ is officially over”. Is Islamic finance hearing and, more importantly, listening?……………………………………….Full Article: Source

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Barwa Bank has said its involvement in the $800mn five-year sukuk for Saudi-based Islamic Development Bank (IDB) as joint lead manager indicates its strong presence in the debt capital markets.
On the deal, which marks the bank’s first sukuk involvement as joint lead manager, Barwa Bank CEO Steve Troop said: “We are extremely proud to be lead arrangers for this transaction, which is IDB’s first public debt issuance in more than a year. Our aim is to associate Barwa Bank with the leading institutions and IDB, the highest-rated institution in the Middle East (AAA), represents one of the most prestigious names in Islamic finance………………………………………..Full Article: Source

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Dubai-based Islamic mortgage lender Tamweel plans to raise $235 million from the sale of a mortgage-backed sukuk secured on properties in the emirate and related receivables, according to a rating statement from Moody’s.
The certificates are due to mature in 2046, according to the agency’s provisional rating, released on Tuesday. Tamweel, a unit of Dubai Islamic Bank, has not disclosed a target size for the proposed sale. It kicked off investor meetings on Tuesday in Abu Dhabi and roadshows are due to end on June 25………………………………………..Full Article: Source

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With reference to a rating statement from Moody’s, Tamweel is on the verge of beginning a project based on the sale of a mortgage-backed sukuk (Islamic bond) secured in the emirate and related receivables to gather an amount of $235 million.
Tamweel, a unit of Dubai Islamic Bank (DIB), is a well established Islamic mortgage lender situated in Dubai. Investors meetings have begun since yesterday but the supposed sale’s target size is yet to be released with the road shows scheduled to come to an end on the 25th of this month………………………………………..Full Article: Source

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As struggling European banks scale back their worldwide operations, cash-rich Gulf lenders see a chance to expand by snapping up the Middle East assets of European rivals at attractive prices.
After years of building operations in the fast-growing Middle East and North Africa region, European lenders are shrinking back due to a crippling debt crisis at home and the need to raise capital to meet regulatory requirements………………………………………..Full Article: Source

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The first tranche of QIB (UK)’s sharia compliant structured note programme, Hemaya, investing in the Qatari stock market, has matured posting a positive return of 10.09% on investors’ invested capital.
QIB (UK) was the first institution to launch a Sharia’a compliant capital protected structured note, in May 2010………………………………………..Full Article: Source

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National Bank of Kuwait’s planned takeover of Kuwait’s Boubyan Bank moved a step closer on Wednesday, when the Islamic bank’s board gave NBK its backing, leaving a disputed stake held by another bank as the main remaining obstacle to the $2.1 billion deal.
The Boubyan board described NBK’s offer for the 52.7 percent stake it does not already own as “fair and suitable”. However, NBK must still resolve the issue of a 19.2 percent stake held by Commercial Bank of Kuwait………………………………………..Full Article: Source

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