When Ahmed El Naggar opened the world’s first Islamic bank in Egypt in 1963, the country looked as if it could harness that legacy to grow into one of the biggest Islamic finance hubs in the world.
But years of suspicion that the Muslim Brotherhood, illegal at that time, would use Islamic finance as a way to gain prominence in the country has left Egypt trailing behind its Arabian Gulf neighbours mainly because no tight regulation or laws have been implemented………………………………………..Full Article: Source

The human and talent factor is very much needed to ensure that Malaysia consolidates its position as a global Islamic financial hub.
“Islamic finance has grown rapidly in recent years and so has the demand for knowledge,” Islamic Banking and Finance Institute Malaysia (IBFIM) chief executive officer Datuk Adnan Alias said………………………………………..Full Article: Source

A multinational group of companies dedicated to the Islamic banking industry has announced the first nominee for the Islamic Banking & Finance internship, cosponsored by Bank of London & the Middle East in London, Wafi International in Riyadh and Safa Investment Services in Geneva and Riyadh.
Thomas R. Woods, graduating end 2012 from Durham University (U.K.) with a Master’s degree in Islamic Finance, was chosen to serve for six months………………………………………..Full Article: Source

Al Omaniya Financial Services, Oman’s largest non-banking financial company (NBFC), announced its approved un-audited half-yearly results for the period ended June 30, 2012.
The company has announced a pre-tax pre-provision profit of RO3.76 million as compared to RO3.4 million in the same period last year. The company made a net profit after tax and provisions of RO2.378 million as compared to RO2.068 million in the same period last year, resulting in a growth of 15 per cent………………………………………..Full Article: Source

AmIslamic Funds Management Sdn Bhd (AIFM) has been named Islamic Asset Management House of Malaysia in the Islamic asset management category by The Asset at the annual Triple A Awards 2012 ceremony recently.
“Our total assets under management (AUM) for the last financial year has recorded a yearly growth of 35%, which was the second highest among its peers. The growth was seven times more than the yearly average growth of 5% achieved by our Islamic peers in Malaysia,” AmInvestment Bank Group’s Funds Management Division CEO Datin Maznah Mahbob said……………………………………….Full Article: Source

When Ahmed El Naggar opened the world’s first Islamic bank in Egypt in 1963, the country looked as if it could harness that legacy to grow into one of the biggest Islamic finance hubs in the world.
But years of suspicion that the Muslim Brotherhood, illegal at that time, would use Islamic finance as a way to gain prominence in the country has left Egypt trailing behind its Arabian Gulf neighbours mainly because no tight regulation or laws have been implemented………………………………………..Full Article: Source

Indonesia raised 460 billion rupiah ($48.65 million) from a sukuk auction on Tuesday, lower than a target of 500 billion rupiah, the debt office said.
The country only sold 25-year project-based sukuk at a weighted average yield of 6.69 percent. There were no winning bids for one-year sharia T-bills and six-year, 10-year as well as 15-year project-based sukuk………………………………………..Full Article: Source

The yield premium for Indonesia’s dollar-denominated Islamic bonds over Malaysia’s dropped by the most in a year this month as falling oil prices eased the burden on the budget and made room for economic stimulus.
The spread between Indonesia’s 8.8 percent Islamic debt due April 2014 and Malaysia’s 3.928 percent note due June 2015 narrowed 33 basis points in June to 56 basis points. The yield on the Indonesian securities fell 42 basis points, while the Malaysian rate declined five basis points………………………………………..Full Article: Source

Independent power producer Tanjung Bin Power Sdn Bhd has proposed a Sukuk Ijarah programme of up to RM4.5bil in nominal value (2012/2029).
RAM Rating Services Bhd said on Tuesday it had assigned a preliminary AA2 long-term rating to the proposed programme while the long-term rating had a stable outlook………………………………………..Full Article: Source

RAM Ratings has assigned a preliminary AA2 long-term rating to Tanjung Bin Power Sdn Bhd’s proposed Sukuk Ijarah Programme of up to RM4.5 billion in nominal value (2012/2029).
The long-term rating has a stable outlook. Tanjung Bin Power is an independent power producer that has been granted the right to construct, own and operate a 2,100-MegaWatt coal-fired power plant in Tanjung Bin, Johor, for 25 years, under a Power Purchase Agreement (PPA) with Tenaga Nasional Bhd (TNB) that expires on Sept 27,2031………………………………………..Full Article: Source

This is the year of the sukuk. A jumbo Islamic offering from Qatar last week helped push total international issuance for 2012 to more than US$12.5bn, well above the US$10.6bn high watermark set for the whole of last year. Limitations remain, but the market is showing signs of deepening as well as expanding.
Boosted by local demand, which far outstrips supply, Sharia-compliant instruments have become one of the Gulf’s most popular exports. An increasing proportion of sukuk are being placed abroad, helped by regional issuers adopting larger sizes and longer tenors………………………………………..Full Article: Source

The Central Bank of Bahrain (CBB) said the monthly issue of the Sukuk Al-Salam Islamic securities for the BHD 18 million issue, which carries a maturity of 91 days, has been oversubscribed by 188 per cent.
The expected return on the issue, which begins on 25 July 2012 and matures on 24 October 2012, is 1.18 per cent. The securities are issued by the CBB on behalf of the Government of the Kingdom of Bahrain. This is issue No. 135 of Sukuk Al-Salam securities………………………………………..Full Article: Source

The Islamic Bank of Britain is targetting savers of all faiths with a table-topping account. Islamic Bank of Britain (BB) has stepped up its efforts to attract consumers by launching a table-topping 4pc expected profit rate for its two-year fixed account. The account is open to “customers of all faiths” the bank said.
As an Islamic Bank, IBB does not pay interest to its savers. Instead, the rate is offered as an ‘expected profit rate’, because the Bank invests the funds into Sharia compliant and ethical trading activities………………………………………..Full Article: Source

The fallout from the Barclays scandal has left many pondering the allure of so-called “ethical” alternatives to the big high-street brands.
Navigating the various ethical banking options can be arduous, while different organisations may have different ideas of what constitutes an “ethical” option. The following explanations may help you to understand what is available………………………………………..Full Article: Source

Some Islamic banks are looking to support renewable energy including hydropower, solar and wind energy. Finance is a crucially important component of building a green infrastructure and this is even more true in the context of economic difficulty. Islamic lending institutions that create financial mechanisms will benefit the growth of renewable energy.
In the Middle East and North Africa (MENA) solar power projects are driving major new investment. With projects like Abu Dhabi’s Masdar City and the German-led Desertec Industrial Initiative (DII) it is expected that the region will be able to export energy throughout the region and into Europe. ……………………………………….Full Article: Source

The Malaysia government would like to see citizens saving more and having larger pensions. One of those new efforts being promoted by the government is the option of putting pension money in Islamic banks.
New regulations are allowing the Employees Provident Fund (EPF) to give those with pensions the option of putting portions, not all, of their pension into Islamic Sharia-compliant areas including sukuk and halal stocks………………………………………..Full Article: Source

Al Omaniya Financial Services SAOG, Oman’s largest non-banking financial institution has posted a pre-tax pre-provision profit of RO 3.76 million as compared to RO 3.4 million in the same period last year.
Announcing its approved un-audited half yearly results for the period ended June 30, 2012, the company reported a net profit after tax and provisions of RO 2.378 million as compared to RO 2.068 million in the same period last year, resulting in a growth of 15 per cent………………………………………..Full Article: Source

Ahlibank SAOG, the recently voted No1 Best Bank and No1 Best Performing Company in the Sultanate announced its un-audited results for the six months ended June 30, 2012.
The bank achieved a net profit of RO 11.835 million in the 1st half of 2012 as against a net profit of RO 8.70m reported during the same period in 2011, demonstrating the bank’s ability to record exceptional growth………………………………………..Full Article: Source

Ahlibank is planning to initially launch four branches under its Al Hilal Islamic Banking brand, with the bank planning to open up to ten branches over the following 12 months.
The bank will allocate AED 191 million ($52 mn) as initial capital for its Al Hilal window and the launch of more branches will depend on business opportunity and requirements………………………………………..Full Article: Source

The Freedom and Justice Party, the parliamentary arm of Egypt’s Muslim Brotherhood, aims to develop the practice of waqf or religious endowments as part of its plans to expand the use of Islamic finance, a party official said.
In waqf, people contribute a portion of their wealth, in cash or other assets, to sharia-compliant and charitable projects such as mosques and schools. But the management of such endowments in Egypt has been widely criticized as inefficient………………………………………..Full Article: Source

Within days of regulators announcing that conventional insurance firms would be allowed to set up “Islamic windows”, State Life Insurance Corporation – the largest insurance company in the country – has made clear its intentions of launching its own brand of Shariah-compliant insurance products.
State Life Chairman Shahid Aziz Siddiqi said that the insurance giant, which is wholly owned by the federal government, would launch its new range of Islamic insurance within a year. “The launch could be by mid-2013. We’re currently assessing the target market for Takaful (Islamic insurance). We have to fulfil various conditions that the SECP has imposed for Takaful window operators in its recent rules,” he said………………………………………..Full Article: Source

The Pakistani Securities and Exchange Commission (SECP) has set out new rules to regulate the country’s Takaful business in light of recommendations made by a committee originally set up five years ago.
SECP Chairman Mohammad Ali unveiled the new regulations on 20 July. The Takaful Rules 2012 replace regulations established in 2005. Over the past seven years, stakeholders had brought to the notice of the authorities a number of problems with these rules………………………………………..Full Article: Source

Malaysians will have more room to allocate part of their retirement contributions to Islamic investments under sweeping government reforms to the pension system.
At present, the Employees Provident Fund (EPF) receives public pension contributions and invests the money. Some of that investment is in sharia-compliant areas such as sukuk and halal stocks, but contributors have limited scope to ensure the money is being used that way. A maximum 20 percent of savings can be placed through the EPF into a single mutual fund………………………………………..Full Article: Source

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The Saudi insurance market is projected to grow by 15 percent per annum in total volume of gross premiums written (GPW) across the sector, driven primarily by demand from the Kingdom’s young population, especially for motor and medical insurance, Standard & Poor’s Rating Services said in its recent report titled “Cooperative & Takaful Insurance in Saudi Arabia in 2012″.
Author of the report David Anthony said “the sector constitutes an already large and still expanding market in a country, which in many ways dominates the region………………………………………..Full Article: Source

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The Development Bank of Kazakhstan has launched the country’s first ever Islamic bond. The quasi-sovereign issue could set a benchmark for Kazakh sukuk, opening the way for corporate Islamic bonds to be placed in future.
The paper, issued in Kazakhstan and Malaysia, has a value of MYR240m ($76.6m). Halyk Finance, the bookrunner for the issue, says the bond has been placed for five years and has a yield of 5.5% a year. Thirty eight percent of the issue was placed within Kazakhstan, with the bulk in Kuala Lumpur. ……………………………………….Full Article: Source

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The investment sector has not recovered from the 2008 global financial crisis and investors have found themselves in difficulties to refinance the debt they borrowed on short term bases during the boom years because of the rise in borrowing cost.
Investors such as Investment Dar, co-owner of luxury carmaker Aston Martin, International Investment Group, International Leasing and Investment Co. and Global Investment House all had a bad experience. Another Kuwaiti firm investment firm, National Industries Group Holding, which is part of the Kharafi group, has called for its maturing Sukuk next month to be extended to 2016 ……………………………………….Full Article: Source

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Small and Medium Enterprises Bank Bhd (SME Bank) will issue a RM3 billion government- guaranteed Islamic medium-term notes programme (IMTN) with a tenure of up to 20 years for its Shariah- compliant working capital requirements.
Its managing director (MD) Datuk Mohd Radzif Mohd Yunus said the first issuance of the IMTN programme would employ the wakalah structure, an investment structure that was widely accepted in the Gulf Cooperation Council (GCC) region………………………………………..Full Article: Source

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The Central Bank of Bahrain (CBB) announces that the monthly issue of the Sukuk Al-Salam Islamic securities for the BD18m issue, which carries a maturity of 91 days, has been oversubscribed by 188%.
The expected return on the issue, which begins on 25 July 2012 and matures on 24 October 2012, is 1.18%. The securities are issued by the CBB on behalf of the Government of the Kingdom of Bahrain………………………………………..Full Article: Source

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The government plans to reallocate dormant hajj funds from the Finance Ministry into project-based sukuk in order to help raise money for urgently needed infrastructure development. Project-based sukuk are Shariah-compliant government bonds backed by infrastructure projects.
“Now [the money] is merely entrusted to the Finance Ministry. But it would be better if it generated revenue from projects,” said Anggito Abimanyu, director general of hajj pilgrimage management at the Religious Affairs Ministry, adding that his institution managed Rp 44 trillion ($4.7 billion) in pilgrimage funds………………………………………..Full Article: Source

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Bank Muamalat Malaysia Bhd has teamed up with Bank of Shi Zui Shan of China to set up its first Islamic bank in China - in Ningxia Province, in two years, and develop and promote Islamic banking there.
Bank Muamalat’s chief executive officer Mohd Redza Shah Abdul Wahid said the two banks will work together in setting up a framework for Islamic banking in China and aim to offer syariah-compliant products in Ningxia via a window at Bank of Shi Zui Shan’s network of 23 branches………………………………………..Full Article: Source

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Ahlibank is planning to initially launch four branches under its Al Hilal Islamic Banking brand, with the bank planning to open up to ten branches over the following 12 months, according to a senior official.
Abdullah al Jabri, DGM and head of operations at Ahlibank, said that the bank will allocate RO20mn as initial capital for its Al Hilal window and the launch of more branches will depend on business opportunity and requirements………………………………………..Full Article: Source

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The Islamic Bank of Britain’s Sharia’a Compliant Fixed Term Deposit rate for 24 months has increased by 0.95%. Now paying a quarterly indicative profit rate of 3.95%, this deal has stormed to the top of the two year bond market.
Savers can invest between £1,000 and £100,000. Further additions and early access are not permitted. The account can be operated in branch, by post, telephone or online by savers aged 16 and over………………………………………..Full Article: Source

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Qatar Islamic Bank (QIB) - the benchmark Shari’a-compliant bank in Qatar - announced it has been named the best Islamic bank in Qatar by the Asset Magazine in yet another recognition for its leading position in the country. QIB also received an award for the best Islamic deal in Qatar for its role as the Facility agent for the Islamic tranche in Barzan $10.3bn gas project.
The bank was handed the awards at a ceremony held recently in Malaysia’s capital, Kuala Lampur………………………………………..Full Article: Source

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Takaful Industry is growing rapidly around the world with 230 Takaful companies and 13 re-Takaful companies with the total volume of $11 billion. Takaful was started in 2005 in Pakistan when Securities and Exchange Commission of Pakistan (SECP) introduced Takaful rules 2005 according to which only full fledge Takaful companies had the permission to operate and in this regard, 5 Takaful companies came into being due to efforts of investors of Malaysia, Qatar, Kuwait, UAE, Saudi Arabia and Pakistan.
Among these 5 companies, 3 Takaful companies are general whereas 2 companies are providing the services of Shari’ah compliant life insurance………………………………………..Full Article: Source

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The Sustainable Resources Fund, headquartered in Luxembourg, launches later this month and, according to the PR, ‘brings together considerable experience and expertise with its professional team of Fund Advisors.’ Sustainable Capital aims to raise $100m in the open-ended fund that will invest in agricultural, biomass and forestry.
The ultimate aim is to raise $250m and the fund will seek at least two distributors in the GCC with one focused on KSA………………………………………..Full Article: Source

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Of the many things that the Gulf is famous for, two that would have to stand out would be Islamic finance and successful airlines.
Emirates Airline has proved to be something of a beacon of hope for the regional aviation industry and has won plaudits both for its excellent service and its robust business model. Other airlines in the region have followed Emirates lead and the list of wannabees grows, including both Etihad and Qatar Airways………………………………………..Full Article: Source

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People in Saudi Arabia are feeling less threatened by economic worries in the West. While data on personal savings is unavailable, overall deposits in the Kingdom’s banking system have been rising over the past year, leaving banks with more money than they know what to do with.
The figures for Saudi Arabia indicate that consumers are more confident than it would first appear, Said Paul Gamble, chief economist and head of research at the local Jadwa Investments………………………………………..Full Article: Source

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National Industries Group Holding (NIG), a Kuwaiti investment firm controlled by one of the country’s biggest family conglomerates, has asked creditors for a four-year extension on a $475-million Islamic bond, or sukuk, maturing next month.
The request from NIG, part of the Kharafi Group, is the latest debt issue to surface in the Kuwaiti investment sector, which was hard hit by the 2008 global financial crisis………………………………………..Full Article: Source

SME Bank Bhd, a development financial institution, has made its maiden foray into the Islamic capital market with a RM3 billion government-guaranteed Islamic Medium Term Notes (IMTN) programme.
Managing director Datuk Mohd Razif Mohd Yunus said proceeds from the sukuk with tenure of up to 20 years will be used as working capital………………………………………..Full Article: Source

Gulf region’s issuance activity is likely to remain fairly robust in the coming quarters, partly because of refinancing requirements, partly thanks to formally approved issuance programs by a growing number of regional companies, most notably banks, the National Commercial Bank said in its latest GCC Financial Market Quarterly.
The report noted that a number of regional governments are interested in using bonds and sukuk as a liquidity management tool while stimulating the development of the capital markets more broadly………………………………………..Full Article: Source

The continuing negative prospects for the eurozone and mixed macroeconomic indicators for emerging markets will fuel growth in shariah-compliant funds, as investors turn to Islamic finance to diversify their exposures.
As the Islamic world marks the start of Ramadan, Western investors are increasingly turning their eye to various financial products and services run in line with its religious precepts………………………………………..Full Article: Source

The Finance Ministry is considering the establishment of a special-purpose Buddhist bank similar to the Islamic Bank of Thailand, says Deputy Finance Minister Wirun Techapaiboon. The ministry estimates that temples across the country have a combined savings of more than 200 billion baht, driven by those large temples famed for merit-making and donations such as Wat Sothorn in Chachoengsao province.
Mr Wirun said the first stage will involve a particular outlet of the Government Savings Bank as an alternative for temples to make deposits………………………………………..Full Article: Source

Bank Muamalat Malaysia Bhd has teamed up with Bank of Shi Zui Shan of China to set up its first Islamic bank in China — in Ningxia Province — in two years, and develop and promote Islamic banking there.
Bank Muamalat CEO Datuk Mohd Redza Shah Abdul Wahid said the two banks will work together in setting up a framework for Islamic banking in China and aim to offer syariah-compliant products in Ningxia via a window at Bank of Shi Zui Shan’s network of 23 branches………………………………………..Full Article: Source

The bank helped another bank with suspected links to terror - Islami Bank Bangladesh had opened a US dollar clearing account with HSBC India. The Bangla bank, one of the largest private sector lenders in that country, has strange shareholders: members of the Al Rajhi group held a 37% direct ownership in Islami Bank Bangladesh.
The Al Rajhi Bank of Saudi Arabia was suspected to be a conduit for Islamic finance, according to a 2003 report by CIA…………………………………………Full Article: Source

Islammi Bank Bangladesh Ltd has denied any link with terror financing or money laundering as it was appeared in a section of press print and electronic media on 17 & 18 July, 2012 implicating it with HSBC.
“This has confused millions of bank’s stakeholders and people in general”, Md. Ataur Rahman, Executive Vice President of IBBL said in a press statement Saturday. The report of US Senate sub-committee investigating HSBCs involvement in transferring of illegal money into US economy from drug business of Mexico contains no allegation against Islami Bank Bangladesh Limited’s link with any terrorists financing or illegal transaction, the statement said………………………………………..Full Article: Source

Despite a growing interest in Islamic banking, several obstacles lie in the path of its development. With President Mohamed Mursi, a former member of the Muslim Brotherhood, in office, Islamic banking is expected to grow rapidly and acquire a larger market share, competing with its conventional counterpart.
Islamic banking refers to a financial system that is consistent with the principles of Islamic Sharia law, which prohibits interest through lending, gambling and investing in businesses that are related to goods or services considered against Islamic principles, like alcohol and tobacco………………………………………..Full Article: Source

Islamic Bank of Britain have announced the launch of a 4% fixed term account to coincide with the beginning of Ramadan.
As consumer dissatisfaction with the UK banking sector continues, the Islamic Bank of Britain plc has stepped up its efforts to attract consumers interested in offerings from ethical providers by launching a table-topping 4% expected profit rate for its Two Year Fixed Term Deposit account. The launch of the promotional rate has been timed with the start of the Muslim holy month of Ramadan………………………………………..Full Article: Source

Qatar Islamic Bank (QIB) has announced a new auto financing scheme to coincide with the holy month of Ramadan.
The bank said in a statement that the scheme involves a very competitive profit rate, and a five-month payment ‘holiday’ (1st instalment in January 2013), a comprehensive auto Takaful, windows tinting voucher and a co-branded QIB/Qatar Airways card for the first year among other attractions………………………………………..Full Article: Source

HE Sheikh Dr Khalid bin Thani bin Abdullah Al-Thani said, “International Islamic maintains its strong growth in line with the national economy.” Qatar International Islamic Bank (QIIB) reported net profit of QAR 340.1 million compared with QAR 322.3 million in the same period last year, representing a growth of 5.5 per cent.
Net operating income earned by the bank in H1 this year amounted to QAR 581.9 million compared with QAR 566.2 million earned in the same period in 2011………………………………………..Full Article: Source

Dubai Islamic Bank (DIB), as part of its contribution to the UAE community, announced the launch of an annual Iktaseb professional summer training programme for young UAE nationals.
Emiratis — 105 in all — from high schools, colleges and universities across the UAE have embarked on the Iktaseb programme, which offers professional training opportunities to young people aspiring to a career in Islamic banking and finance………………………………………..Full Article: Source