It has been reported that Hong Kong’s bill to facilitate the issuance of sukuk, or Islamic bonds, is expected to be ready early next year but initially at least, it may attract little interest among issuers. In March, the government asked for industry feedback on the subject and this month, it said it aimed to introduce a bill in early 2013.
A draft bill could take three months to prepare and then be passed quickly into law provided there is no controversy, said Marcellus Wong, co-chairman of the taxation policy committee at the Taxation Institute of Hong Kong, an association of tax professionals………………………………………..Full Article: Source

The GCC foreign bonds have grown at an annual rate of 21 percent since Q1 2007. The rapid growth has happened partly to compensate for the decline in international syndicated loans, which fell from $112bn in 2007 to $32bn in 2011 and just $8bn in the first half of 2012.
The decline in the international loans is most probably a result of global banks, reducing their international exposure following the 2008 financial crisis. The governments and corporations in the GCC are increasingly looking to the bond markets as an alternative source of financing for the substantial projects and corporate expansions underway in the region………………………………………..Full Article: Source

Iranian Oil minister Rostam Qasemi has said that the National Iranian Oil Company will start selling oil bonds in the near future. According to the national budget law, the Oil Ministry’s subsidiaries are obliged to sell bonds totally to the ceiling of $5 billion in the current Iranian calendar year, which ends on March 20, 2013.
On November 7, Iranian Offshore Oil Company’s Managing Director Mahmoud Zirakchianzadeh said the company will issue $500 million worth of bonds to finance oil projects in the current Iranian calendar year, which ends on March 20, 2013………………………………………..Full Article: Source

The rapid global growth in Islamic finance means that action must be taken to ensure that the way in which it is reported financially is harmonised and made more consistent, a report, based on a series of high level international roundtables, by KPMG and ACCA (the Association of Chartered Certified Accountants) has concluded.
The report calls on the International Accounting Standards Board (IASB) and the Islamic Finance industry to work together to develop guidance, standards and educate the investor community on key issues. The IASB should consider issuing guidance on the application of International Financial Reporting Standards (IFRS) when accounting for certain Islamic financial products which are offered by Islamic financial institutions and conventional banks………………………………………..Full Article: Source

HSBC Amanah Malaysia Bhd (HSBC Amanah) is set to complete its footprint in Malaysia ahead of schedule with plans to open three more branches in Melaka, Seremban and Kelantan by the end of the year after the launch of its Kuching branch.
According to HSBC Amanah chief executive officer (CEO), Rafe Haneef, “We were given a time frame by Bank Negara when we first started in 2007 to open 26 branches by 2013. “Given the overwhelming response from our customers and the business community, we have been able to complete the 26 branches ahead of time………………………………………..Full Article: Source

Sharjah Islamic Bank (SIB) has allocated a Dh1 billion to finance all small-scale corporations that run small and medium size enterprises in the country. The move came after the signing of an agreement between SIB and Ruwad Establishment. The agreement was signed by Mohammad Abdullah, SIB Chief Executive, and Ahmad Mohammad Al Medfa, Ruwad Board Chairman.
Under the agreement, SIB will finance all enterprises carried out by Ruwad Establishment due to the growth witnessed by the small and medium size enterprises (SME) sector as well as the great attention it enjoys on the international level………………………………………..Full Article: Source

Public Bank Bhd’s unit Public Mutual Bhd, has launched six private retirement scheme (PRS) funds comprising conventional and shariah-based series to help individuals accumulate savings for retirement.
Public Mutual said the funds under the conventional series were PRS Growth Fund, PRS Moderate Fund and PRS Conservative Fund. The shariah-based funds comprise PRS Islamic Growth Fund, PRS Islamic Moderate Fund and PRS Islamic Conservative Fund………………………………………..Full Article: Source

The Islamic fi nance sector is growing faster than the supply of talent. Professionals highly qualifi ed in Islamic fi nance are in short supply. This shortage of qualifi ed professionals is slowing product development and preventing the industry from growing at an even faster rate.
As an industry we need to come together to collectively discuss how to close this supply-demand gap and how academic and professional programs can deliver specific skill sets, such as legal documentation, financial engineering, shari’a audit, risk management, treasury and liquidity management………………………………………..Full Article: Source

It has been reported that the Minister for Jobs, Enterprise and Innovation, Richard Bruton, today announced that a global advisory firm in Islamic Finance, Amanie Advisors is to establish an operation in Dublin.
The move by Amanie into Ireland is significant for Ireland’s financial services sector as it will enable Irish and European companies to access a relatively new source of funding through the Islamic Capital Markets. The investment is supported by the Department of Jobs, Enterprise and Innovation through IDA Ireland………………………………………..Full Article: Source

The opening up of new markets and launch of new products are driving the $1 trillion global Islamic finance & Islamic cosmetics industry to new heights, and the growth prospects of the industry will be the highlight of an upcoming industry event in Sharjah.
The increasing recognition of its value propositions has made Islamic finance more widely accepted in many countries, including the UK, Singapore, Germany and Central Asia, and new markets such as China and other emerging countries………………………………………..Full Article: Source

Syarikat Takaful Malaysia Berhad (Takaful Malaysia) continuously delivering its brand promise with RM20,000.00 death claim benefit payment to the beneficiary of its agent. This death claim benefit payment fulfils the Company’s brand promise ‘We Protect, We Care and We Share’ as it symbolizes the Company’s apprehension towards its departed agent’s family.
The cheque was presented to the beneficiary following the Business Opportunity Sharing Session (BOSS) at De Palma Hotel, Shah Alam by Takaful Malaysia s Retail Agency General Manager, Encik Mohd. Suhaimi Ahmad………………………………………..Full Article: Source

Gulf governments, spending their oil wealth on $1tn of projects from airports to soccer stadiums, will fuel a second year of record Islamic bond sales in 2013 as private companies remain reliant on bank loans.
Sukuk issuance by governments and state-linked companies in the six-nation Gulf Co-operation Council made up more than 80% of the $20bn of notes sold this year, data compiled by Bloomberg shows. That is about 10 percentage points more than in Malaysia, home to the biggest global sukuk market………………………………………..Full Article: Source

The GCC foreign bonds have grown at an annual rate of 21 percent since Q1 2007. The rapid growth has happened partly to compensate for the decline in international syndicated loans, which fell from $112bn in 2007 to $32bn in 2011 and just $8bn in the first half of 2012.
The decline in the international loans is most probably a result of global banks, reducing their international exposure following the 2008 financial crisis. The governments and corporations in the GCC are increasingly looking to the bond markets as an alternative source of financing for the substantial projects and corporate expansions underway in the region, a QNB Group analysis noted……………………………………….Full Article: Source

National Bank of Abu Dhabi (NBAD) has issued a 500 million Malaysian ringgit ($163.4 million) Sukuk, its third issuance denominated in currency, the bank announced in a statement. The new Sukuk is the first ever issue of a subordinated debt by a non-Malaysian FI in Malaysia.
It was issued for 15 years at a coupon of 4.75 per cent following strong investor demand, the bank said. HSBC Amanah Malaysia Berhad, Maybank Investment Bank Berhad, Standard Chartered Saadiq Berhad, and National Bank of Abu Dhabi Malaysia Berhad were the joint lead managers……………………………………….Full Article: Source

Soaring investor demand for UAE and Arabian Gulf sukuk shows little sign of abating as the region heads for its most active year of bond sales on record.
National Bank of Abu Dhabi said this weekend that it had raised 500 million Malaysian ringgit (Dh600.3m) through a sale of subordinated Islamic bonds, the latest in a string of debt sales aimed at Asian investors. The 15-year sukuk was priced with a coupon of 4.75 per cent following strong investor demand, said the bank………………………………………..Full Article: Source

A shortage of Islamic sovereign debt saw Indonesia’s new dollar-denominated sukuk rally two times faster than non-Islamic securities this week after the sale attracted $5 billion in orders for $1 billion on offer.
The Southeast Asian nation sold the bonds maturing in 2022 at a coupon of 3.3 percent, its third issuance since 2009. The yield fell 17 basis points to 3.13 percent from Nov. 19, compared with an eight basis point decline to 2.91 percent on the 2022 notes that don’t comply with religious tenets. In the international market, Shariah-compliant borrowing costs are at a record-low 2.82 percent………………………………………..Full Article: Source

A $1 billion sukuk issue by Abu Dhabi Islamic Bank this month may start a trend that was probably not contemplated by the founders of modern Islamic finance: Islamic bonds may become a key tool for banks to meet tightening capital rules.
The trend could add further momentum to a global boom in sukuk issuance. It could also ease pressure on banks which find it hard to raise capital from equity issues as global financial instability depresses stock markets………………………………………..Full Article: Source

RAM Ratings has received confirmation from the Facility Agent that Golden Crop Returns fully redeemed its MYR 242 million Tranche 3 Sukuk Ijarah on the expected maturity date of 22 November 2012.
This follows the exercise of the third call option by the Boustead group of companies - the Lessees (or the Originators) in the transaction - to repurchase the remaining 13 estates and 4 mills from the Issuer………………………………………..Full Article: Source

Turkish Airlines is considering various options, including Sukuk, to raise funds of around $500 million to fund plane orders from 2014. The airline is reportedly considering using Enhanced Equipment Trust Certificates (EETCs) for the first time – financial securities issued by banks under which the airline gets ownership of the planes when the certificates mature, bankers familiar with the negotiations told Reuters.
Turkish Airlines was also considering issuing Sukuk or eurobonds next year to finance its aircraft acquisition plans from 2014, the bankers are quoted as saying………………………………………..Full Article: Source

Turkish Airlines is in talks with banks about a leasing arrangement worth around US$500m to help fund its plane orders from 2014, bankers familiar with the negotiations said.
The airline is considering using Enhanced Equipment Trust Certificates (EETCs) for the first time - financial securities issued by banks under which the airline gets ownership of the planes when the certificates mature, the bankers said………………………………………..Full Article: Source

Dana Gas, in talks to restructure a $920 million Islamic bond, is offering bondholders cash and an average 8 per cent coupon on two new sukuks to replace the existing one, two sources said.
The natural gas producer became the first United Arab Emirates company to miss a bond redemption when the sukuk matured on 31 October. Dana reached the restructuring deal on 7 November, potentially averting the seizure of its Egyptian assets………………………………………..Full Article: Source

The long term ratings of MRCB Southern Link’s RM845mil secured senior sukuk (2008/2025) and RM199mil junior sukuk (2008/2027) have been downgraded. RAM Rating Services Bhd said the ratings of the two sukuk were lowered to C3 from BB3 and C1 but remained on negative Rating Watch.
MRCB Southern Link is a funding conduit for the 8.1-km Eastern Dispersal Link Expressway (EDL) in Johor Baru. Although it opened to the public on April 1 this year, the Government had stated EDL would not start collecting toll despite the terms of its concession agreement………………………………………..Full Article: Source

Like traditional socially responsible investing, Islamic finance has tended to focus on excluding ‘sin’ businesses rather than making a positive impact. Because lending money on interest and sale of risk are widely considered to be prohibited in Islamic finance, it is concerned with the structure and not just the purpose of financing.
Academic literature and news reports suggest growing interest in Islamic finance in making and measuring positive impact, such as through micro finance and this rapidly growing sector is also a possible source of growth for impact investing………………………………………..Full Article: Source

Islamic banking is growing at more than double the pace of conventional banking in Kuwait and strong demand is expected throughout the Arab region, according to the chairman of Boubyan Bank.
Credit volumes at Islamic banks in Kuwait reached 11.1 billion Kuwaiti dinars ($39.3 billion) in the first nine months of 2012, up 13.2 per cent on last year, Boubyan chairman and managing director Adel Abdul Wahab Al Majid told the Reuters Middle East Investment Summit………………………………………..Full Article: Source

Syndicated lending by Saudi Arabian banks has more than doubled in 2012 as companies fund projects. “Family-owned businesses or privately held businesses haven’t to a large extent embraced those kind of things like corporate governance and disclosure and transparency,” said Abdul Kadir Hussain, Mashreq Capital’s Dubai-based chief executive officer.
Syndicated lending has slowed overall in the Middle East and North Africa, falling 5 percent this year to $28.5 billion, taking the total below regional bond sales for the first time since 2009. Issuances of sukuk and non-Islamic notes jumped 58 percent to $36bn in the same period, data compiled by Bloomberg noted………………………………………..Full Article: Source

Alizz islamic bank, one of Oman’s first Islamic banks, recently hosted its Constitutive General Meeting, where the Bank’s first board of directors was elected. The board constitutes experienced directors with extensive expertise in financial services. Trading of the Bank’s shares on the Muscat Securities Market is expected to commence on December 3, 2012.
More than 87 per cent of shareholders voted in person or by proxy at the CGM to elect the first board, which includes His Highness Sayyid Taimur bin Asaad bin Tareq al Said, Ahmed al Khonji, Shabib Mohamed al Darmaki, Mohamed Badawy al Husseiny, Mohammed al Fahim, Mohamed Ghanem and Khalifa al Mehairi………………………………………..Full Article: Source

Saudi Arabia is studying draft regulations that could see the creation of a real estate refinancing company similar to US firm Fannie Mae, according to proposals published by the central bank this week.
The regulations are part of long-awaited government efforts to develop a housing mortgage sector in the conservative kingdom where the restrictions of Islamic sharia law have made it difficult to secure lending against property………………………………………..Full Article: Source

Reserve Bank Governor D Subbarao has ruled out introduction of Islamic banking in the country but said other methods for channelising funds based on the principles of Islamic law can be looked at. “Islamic banking is not possible”, he said, adding the central bank could look at other vehicles based on Islamic banking principles to channelise NRI funds.
Replying to a question on the issue, Subbarao said: “There are some legal problems. We have studied the issue. We appreciate the objectives behind the request. But there are some legal problems. It can be got around not through banking, but other vehicles”. He said that introduction of such banking was not possible in absence of a separate law for Islamic banking………………………………………..Full Article: Source

Growth in the Islamic bond market, or sukuk, has been inching higher in the region. Sukuk issued in Asia accounts for about 40 percent or US$17 billion out of the total global issuance of US$43 billion this year.
Such Islamic bonds are popular with investors from the Middle East and has opened up new opportunities for Asian companies. Singapore-listed Noble Group is the latest to consider Islamic bonds for its financing needs. The commodities trading firm has announced that it will issue some 300 million Malaysian ringgit (US$98 million) of two-year Islamic bonds at 4.22 per cent per annum profit rate………………………………………..Full Article: Source

A $1 billion sukuk issue by Abu Dhabi Islamic Bank (ADIB) this month may start a trend that was probably not contemplated by the founders of modern Islamic finance: Islamic bonds may become a key tool for banks to meet tightening capital rules.
The trend could add further momentum to a global boom in sukuk issuance. It could also ease pressure on banks which find it hard to raise capital from equity issues as global financial instability depresses stock markets………………………………………..Full Article: Source

International legal practice Norton Rose has advised the Republic of Indonesia for a second time on another large scale international Sukuk issuance. The firm advised the Republic of Indonesia on the establishment of a $3 billion Sukuk issuance programme and the initial issuance of $1 billion of Sukuk under the programme.
The issuance, which closed on November 21, 2012, has a maturity of ten years, with periodic distributions of 3.3 per cent per annum. The issuance was governed by English laws and was offered under Rule 144A and Regulation S of the US Securities Act to a broad range of investors based inside and outside the US………………………………………..Full Article: Source

Dana Gas PJSC (DANA) plans to pay bondholders about $100 million in cash as part of the $920 million debt restructuring accord the United Arab Emirates company agreed this month, a person familiar with the deal said.
The cash would be paid to holders of the Shariah-compliant notes, or sukuk, once a lockup agreement between Dana Gas and its creditors is signed, likely later this month, according to the person, who asked not to be identified because the information is private………………………………………..Full Article: Source

Latham & Watkins advised Abu Dhabi Islamic Bank PJSC, one of the leading Islamic banks in the Middle East, in connection with the region’s first perpetual and Basel III compliant tier 1 sukuk issuance.
The initial benchmark size for the issuance of US$500 million was more than 30 times oversubscribed, with an order book of US$15.5 billion, and the expected profit rate of 6.375% is the lowest ever coupon for an instrument of this type. The transaction has allowed Abu Dhabi Islamic Bank PJSC to strengthen and diversify its capital base in line with international best practice in capital management………………………………………..Full Article: Source

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 278%.
The expected return on the issue, which begins on 28 November 2012 and matures on 27 February 2013, is 1.00%. The securities are issued by the CBB on behalf of the Government of the Kingdom of Bahrain………………………………………..Full Article: Source

Gulf firms and state-backed investors, flush with petrodollars and facing limited growth options at home, are stepping into emerging markets in Africa and Asia to get a foothold in key sectors such as banking and telecommunications.
Investors from the Gulf have for years put their oil wealth into developed markets in the United States, Europe and Japan. The consistent focus on less developed countries is new, and may have big implications for the economies receiving the money………………………………………..Full Article: Source

Thriving with a staggering pace of over 20 percent year on year, the global Islamic finance industry now touts a vibrant size of 1.35 trillion dollars. Islamic banking industry (IBI), having a network of 430 banks and financial institutions and around 191 conventional banks conducting Islamic banking window operations, records its footprints in more than 75 countries across the globe.
With its concentration in GCC countries, followed by non-GCC, MENA, Asia and Sub-Saharan Africa, S&P anticipates global IBI to grow by 20 percent YoY between CY13-CY15, consequently surpassing of two trillion dollars by CY15………………………………………..Full Article: Source

Oman’s Al Izz Islamic Bank, the sultanate’s second Islamic bank, has elected members of its board a month after the initial public offer of its shares, a bank statement said on Thursday.
Taimur Bin As’ad Al Said was elected chairman to lead a six-member board. Last month, Al Izz raised 40 million rials ($104 million) by selling 40 percent of its capital through a month-long IPO. The bank, which counts Abu Dhabi state-fund Aabar Investments as a founding shareholder, will list on the Muscat Securities Market on Dec. 3………………………………………..Full Article: Source

RHB Capital Bhd recorded a 14.37% gain in net profit to RM487.48mil in the third quarter ended Sept 30, 2012 (Q3′12) compared with RM426.22mil in the corresponding period a year ago.
The rise in net profit was attributed to higher net interest income, other operating income and income from Islamic banking business, as well as lower allowance for impairment on loans and financing. RHB’s Islamic banking business reported a lower profit by 1.3% to RM77.3mil caused by higher allowances for impairment on financing and higher overhead costs. This was partially offset by higher trading income, fee income and net interest income………………………………………..Full Article: Source

QInvest has appointed Tamim Hamad al-Kawari as its new CEO following the resignation of Shahzad Shahbaz from the position of the company’s chief executive officer. However, Shahbaz will remain with the firm for some time to facilitate a smooth transition.
Al-Kawari previously served as QInvest’s Deputy CEO. Prior to joining QInvest, al-Kawari was Goldman Sachs managing director and country head (Qatar). Under Shahbaz’s leadership, the bank expanded its global footprint from the United Kingdom to India with strategic investments in Panmure Gordon and Ambit Holdings………………………………………..Full Article: Source

Deputy Prime Minister Tan Sri Muhyiddin Yassin has urged country members of the D-8 group of Islamic developing nations to explore the full potential of Islamic banking and finance.
He said as Muslim countries, members of the D-8 can provide the best example to the world that there is an alternative system to the already-proven flawed and vulnerable conventional financial system………………………………………..Full Article: Source

Stressing the need for continued collaboration amongst the D-8 central banks, Governor State Bank of Pakistan (SBP) Yaseen Anwar Wednesday said the member countries need to explore ways to promote Islamic financing in the wake of challenging global economic landscape.
While opening and chairing the 2nd meeting of central bank governors of the D-8 countries in Islamabad, Anwar said there was aneed for exploring sustainable models to promote Islamic finance in the Developing-8 (D-8) economies………………………………………..Full Article: Source

The Jeddah-based Indian Forum for Interest-Free Banking is to meet Prime Minister Manmohan Singh, seeking changes in laws so as to allow functioning of Islamic banks and financial institutions in the country.
Forum secretary V.K. Abdul Aziz said here that with the country seeking funds for major infrastructure projects, Islamic Finance had the potential to meet the needs of the sector. When the State looks at massive investments for major infrastructure projects in ports, airports and high-speed rail corridor, he said Shariah-compliant funds would prove beneficial………………………………………..Full Article: Source

Saudi Arabia is studying draft regulations that could see the creation of a real estate refinancing company similar to U.S. firm Fannie Mae, according to proposals published by the central bank this week.
The regulations are part of long-awaited government efforts to develop a housing mortgage sector in the conservative kingdom where the restrictions of Islamic sharia law have made it difficult to secure lending against property. The world’s top oil exporter faces a housing shortage, particularly among lower and middle-income people, as land prices rise rapidly. In July, the government passed laws to regulate mortgage and lease lending………………………………………..Full Article: Source

Islamic banking is growing at more than double the pace of conventional banking in Kuwait and strong demand is expected throughout the Arab region, the chairman of Boubyan Bank said on Wednesday.
Credit volumes at Islamic banks in Kuwait reached 11.1 billion Kuwaiti dinars ($39.3 billion) in the first nine months of 2012, up 13.2 percent on last year, Boubyan Chairman and Managing Director Adel Abdul Wahab al-Majed said………………………………………..Full Article: Source

Pakistan’s central bank has issued new rules for Islamic bank deposits backed by asset pools using mudaraba, a form of investment partnership that is common in Islamic finance.
The pools will have to maintain at least 20 percent of their assets in liquid securities, though this level can be reduced to 10 percent with the approval of sharia scholars. The rules allow banks to aggregate pools to help them manage liquidity in the short-term money market………………………………………..Full Article: Source

State Bank of Pakistan Deputy Governor Abdul Muktadir has said true spirit of Islamic financial system is the way forward that may help the global financial system to recover and regain the lost trust of stakeholders. ‘The Islamic banking industry is expected to grow considerably to play its critical role towards the economic growth in any economy.
He said that we need to deliberate on sustaining growth in the New Economic Order and enhancing cooperation through trade and capital inflows among the D-8 countries. Kazi outlined four key aspects for D-8 central banks’ cooperation for promoting inclusive economic growth amongst the D-8 countries………………………………………..Full Article: Source

One of the main conditions of Islamic finance is a Shariah Council every Islamic financial institution. On principles of Islamic financing in an exclusive interview with the Agency BNews.kz told Deputy Chairman of the National Bank of Kazakhstan Daniyar Akishev.
“It is one of the first conditions, the existence of principles of Islamic financing, the so-called Shariah Council every Islamic financial institution, and, in fact, the Islamic financial transaction. The Shariah Council exists in order to decide whether the activities and operations carried out, the principles of Islamic financing, i.e., whether they are first of all the precepts of Islam, “said Akishev………………………………………..Full Article: Source

Bolton Bhd has inked two agreements to raise fresh funds amounting to RM370mil to expand its business where the property outfit is now well poised to expand its landbank in areas where property, especially residential is in high demand.
The funds were made up of RM230mil Islamic medium-terms notes programme guaranteed by Danajamin Nasional Bhd and a RM140mil revolving credit facility by Affin Bank Bhd. The proceeds of Bolton’s inaugural sukuk issuance will be largely utilised to finance land acquisitions while the five-year revolving credit facility would be used mainly for project financing………………………………………..Full Article: Source

Attijari Al Islami, Commercial Bank of Dubai’s Islamic banking department, has introduced an improved version of its Ijarah home products. The Islamic mortgage products, which include new features, were launched to address the UAE’s growing demand for Shari’ah-compliant financial instruments.
CBD’s Ijarah Home products offer transparent and competitive rates that guarantee great value to our clients. The products are meant for UAE nationals and salaried expats between the age of 21 to 65 (or retirement age); a minimum monthly income of AED 20,000; and a minimum employment of two years………………………………………..Full Article: Source

Secura India Real Estate Fund, the first Sharia compliant venture capital fund has launched its second scheme of real estate fund with a size of Rs 50 crore. It is promoted by Kozhikode based by Secura Investment Management (India) Pvt. Ltd.
MA Mehaboob, managing director of the Secura Investment Management, said the fund seeks to make investments in privately negotiated equity and equity linked investments in unlisted or listed companies in sectors related to real estate activities in Kozhikode and Kochi primarily………………………………………..Full Article: Source