Saudi-based Islamic Development Bank (IDB) picked five banks to arrange roadshows ahead of a potential dollar-denominated Islamic bond, or sukuk, which would be its first trade in over a year, lead arrangers said on Wednesday.
The supranational bank mandated BNP Paribas, CIMB , HSBC, National Commercial Bank and Standard Chartered to arrange the meetings and to act as bookrunners on the sukuk, which will print subject to market conditions………………………………………..Full Article: Source

Renowned Shari’ah scholar Sheikh Nizam Yaquby has said that the controversy surrounding Goldman Sachs’ ill-fated Sukuk was based on a misunderstanding stoked by the media.
“It is a misunderstanding from the part of the media,” Yaquby said. “This Sukuk was never issued – it was only in the development stage. Goldman Sachs is a very famous institution and it has a proper Shari’ah board that can guide and advise them on any future Sukuk. I’m sure they are careful and keen to do it in the right way. It was a misinterpretation; perhaps journalists enjoy that sort of controversy.”……………………………………….Full Article: Source

Indonesia will sell dollar-denominated sukuk toward the end of the year, according to Dahlan Siamat, a director of Islamic financing at the debt management office, provided it gets approval from the finance minister.
Dahlan declined to disclose the size of the offer, saying on Monday that “we have figures for the amount in the report we sent to the finance minister, but he will be the one to decide.”……………………………………….Full Article: Source

The Islamic finance sector has become a dynamic, fast-growing global phenomenon. 2011 proved to be a watershed moment for the industry as global Shariah-compliant assets crossed the USD 1,000 billion mark.
According to ‘The Banker’, the number of institutions reporting Shariah-compliant activity has increased from 221 in 2007 to 348 in 2011. Similarly, the number of institutions registered to conduct Shariah-compliant activities has risen from 525 in 2007 to 675 in 2011. The industry is expected to record a compound annual growth rate (CAGR) of 15% to 20% until 2015………………………………………..Full Article: Source

Bonds in the Gulf Arab oil exporters are outperforming fixed income markets in many other countries as the world’s economic climate darkens, suggesting the Gulf may have turned a corner in convincing investors of its financial stability.
During the last bout of Gulf market jitters in mid-2011, sukuk outperformed conventional bonds because Islamic instruments were seen as less vulnerable to speculation and were believed to attract a more committed investor base than conventional debt………………………………………..Full Article: Source

Bank Negara is introducing an Islamic overnight funding facility which could encourage commercial banks from the Gulf to trade more in the country’s syariah-compliant money market.
The collateralised murabahah facility, announced last week, “will add diversity to the existing liquidity management tools and further promotes greater liquidity in the Islamic financial market,” the central bank said………………………………………..Full Article: Source

Zain Saudi Arabia, the country’s third-largest mobile operator, has mandated Al Rajhi Bank, Banque Saudi Fransi, Credit Agricole, Arab National Bank and Standard Chartered to lead the refinancing of its $2.5 billion Islamic syndicated loan that matures in July, bankers close to the deal said.
Saudi British Bank, National Bank of Kuwait and Gulf Bank are also expected to join the five-year facility, which includes different pricing for the U.S. dollar and Saudi riyal tranches………………………………………..Full Article: Source

Noor Islamic Bank, a lender controlled by Dubai’s government, said it’s seeking business in Singapore and Malaysia as it aims to benefit from growth in Southeast Asia.
“I’ll be interested in any transaction that comes up,” Hussain Al Qemzi, chief executive officer of the United Arab Emirates-based lender, said in an interview in Singapore today. “Malaysia is the world’s biggest sukuk market. I understand companies are looking to finance infrastructure projects.”……………………………………….Full Article: Source

Jamsheed Hamza, Senior Manager-Branch Network Expansion in the Islamic Banking Division, Bank Dhofar urged Islamic bankers to “go the extra mile” in appreciating the client’s success and helping him make appreciative investment choices.
If the customer is coming to the bank with a Halal need, the bank must genuinely take it upon itself to meet their needs. A bank is not here to sell but to develop awareness and build relationships………………………………………..Full Article: Source

The Central Bank of Oman (CBO) has proposed amendments to the country’s banking law to the concerned authorities to provide for the conduct of Islamic banking and we look forward to early finalisation, Hamood Sangoor Al Zadjali, CBO executive president said.
On its part, the CBO has also formulated a draft Islamic Banking Regulatory Framework which will provide a comprehensive working platform/unique model based upon sound and best practices, he added………………………………………..Full Article: Source

HE Hamoud Bin Sangour Al Zadjali, Executive President of the Central Bank of Oman (CBO) says that Islamic banks play an important role in the development of the economy through attracting deposits and financing economic activities.
Islamic banking is not about money, but seeks to finance real assets and project implementation and through it individuals can contribute to the development of investments and at the same time achieve public interest on religiously and legally accepted foundations………………………………………..Full Article: Source

Meezan Bank – the leading and largest Islamic Bank of Pakistan, has been awarded Pakistan’s ‘Best Islamic Bank’, ‘Best Islamic Retail Bank’ and ‘Best Islamic Trade Finance Bank’ by Asset Triple A Awards, Hong Kong.
The Bank has also been awarded, ‘Best Islamic Deal – Pakistan’ as a Joint arranger for Pakistan Mobile Communications syndicated Islamic finance facility, and ‘Highly Commended Deal – Pakistan’ as the Lead adviser and arranger for the Kot Addu Power Company short-term sukuk………………………………………..Full Article: Source

BBK along with BMI Bank, through its Islamic banking division, has signed an agreement to provide a syndicated Murabaha BD18 million ($47.8 million) financing facility for Bahrain-based Arabian Sugar Company.
As part of the agreement, BBK will be acting as the facility agent bank whilst BMI Bank will be the security agent, documentation bank and investment agent for the facility………………………………………..Full Article: Source

The Syria International Islamic Bank (SIIB), placed under sanctions by the U.S. last week, said the measure hasn’t affected operations because the bank has no assets in the U.S.
The bank said on its website June 5 that its transactions are legally “flawless” and it has the documents to prove that. The U.S. designated the bank on May 30 as “acting for or on behalf of” the Commercial Bank of Syria and providing services to the Syrian Lebanese Commercial bank, both of which are subject to U.S. sanctions………………………………………..Full Article: Source

Islamic Development Bank Group President Ahmad Muhammad Ali yesterday called for integrating Islamic finance with real economic activities of trade and industrial production.
Through such integration, finance could be directed toward real activities rather than used for the build-up of unbearable debt or harmful speculation. “From this perspective, international connectivity will help nations build their economies and diversify their investments,” Ali said……………………………………….Full Article: Source

The growth of Islamic finance products and the benefits they bring to Brunei will increase rapidly if new innovative products can be created, and the country also has the potential to market itself internationally in this regard.
Dr M Ishaq Bhatti, Associate Professor of La Trobe University Melbourne, Australia, said this in an interview with the Bulletin following the launch of the first FBEPS-AGBEP PhD Colloquium at Universiti Brunei Darussalam………………………………………..Full Article: Source

With an estimated yearly growth between 15-20%, the Islamic investment sector is one of the biggest growers in the financial world, and delegates at the conference, which took place in Manama, Bahrain, in May, picked out the socially responsible investment (SRI) model as something for the Islamic investment industry to aspire to.
On the face of it, the two investment styles are similar. But whilst the investments made by SRI funds are selected based on a predetermined criteria, Islamic funds look to Sharia law – Islam’s legal system………………………………………..Full Article: Source

Daud Vicary Abdullah, Chief Executive Officer of INCEIF, signed a proposal to the Governor of the Central Bank and to the Prime Minister of Turkey which outlines how the country can develop its next generation of Islamic finance talent.
“The issue in Turkey is that now you’ve had this separation between politics, state and religion – now that participation banking is coming back – Islamic finance is not taught in the universities,” he said………………………………………..Full Article: Source

For many years, Islamic institutions, especially takaful companies, have struggled to invest according to the traditional balanced investment approach.
In many cases familiarity with equities and comfort with vanilla deposits have meant that many institutions have been forced to adopt a somewhat barbell-type approach to investing, somewhat skewed toward cash and equities………………………………………..Full Article: Source

The Islamic Republic of Iran, after encountering frequent disqualification in its efforts to be a reliable partner in the international arena, specifically in oil, gas and pipeline transactions, is now entering a fresh game in delivering natural gas to Europe, in spite of the heavy sanctions imposed by the United Nations, United States, and European Union.
Only this time around it is trying to team up with the Islamic Arab states, bypassing its old trade partner Turkey………………………………………..Full Article: Source

Egypt’s Muslim Brotherhood has drawn up a strongly free-market economic plan and pledges to move fast to negotiate a loan from the International Monetary Fund (IMF) if it forms a government after this month’s presidential election.
Rivals portray the Brotherhood as a nebulous organisation obsessed with religion, but its wide-ranging plan, details of which were revealed during the build-up to last month’s first-round presidential vote, projects a pragmatism that puts rapid economic growth ahead of ideology………………………………………..Full Article: Source