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Islamic Finance Briefing - Archive | December, 2012

Demand for Islamic bonds seen rising strongly

Posted on 12 December 2012 by Laxman  |  Email|Print

Demand for sukuk, or Islamic bonds, is expected to almost double in value over the next four years, driven by strong economic growth in the Middle East and Asia and their spread to new markets, according to a report by Thomson Reuters.
Sukuk are Islamic investment certificates that pay returns on money invested, instead of interest, to obey Islam’s ban on interest. They are a major funding tool for both banks and corporates in the Islamic finance industry, which has its core markets in the Middle East and southeast Asia………………………………………..Full Article: Source

Malaysia is a key driver of sukuk growth

Posted on 12 December 2012 by Laxman  |  Email|Print

Over the past few years, Malaysia’s positive reputation among financiers in the Middle East, US, Europe and greater Asia has grown. Malaysia’s dedication to the Islamic finance market, strong and stable economy, and increasingly liquid local bond market are attractive to an expanding range of issuers and investors.
Islamic finance stands out among the many opportunities in Malaysia, and it continues to lead the world in Islamic finance development………………………………………..Full Article: Source

Strong demand drives growth at Islamic Bank of Britain

Posted on 12 December 2012 by Laxman  |  Email|Print

Islamic Bank of Britain plc (IBB), the UK’s only wholly Shari’ah-compliant retail bank, reported a 63 per cent increase in home financing and a 43 per cent increase in long-term savings deposits for the first three quarters of 2012.
Growth and demand, has been driven through the launch and development of new savings products, the IBB Home Purchase Plan and Buy to Let Purchase Plans, supported by effective sales and marketing strategies………………………………………..Full Article: Source

Global Shariah banking to hit $1.8 trillion by 2013

Posted on 12 December 2012 by Laxman  |  Email|Print

Financial instruments — cash, bearer bonds, etc. — in line with Islamic law or Shariah are predicted to hit $1.8 trillion (U.S.) globally by 2013, up 38.5 percent year on year, according to American corporate auditors Ernst & Young’s World Islamic Banking Competitiveness Report 2013 released Monday. But some wonder if this growth will help radical Islamist groups.
According to the report, the top 20 Islamic banks have registered an annual growth of 16 percent over the last 3 years………………………………………..Full Article: Source

Islamic banks to expand, compete for mainstream clients

Posted on 12 December 2012 by Laxman  |  Email|Print

Islamic banks are set to expand as they compete increasingly with conventional lenders in attracting mainstream customers, according to a report by consultancy Ernst & Young released on Monday.
Pakistan ranked 17 out of the 57 Organisation of Islamic Cooperation (OIC) Islamic finance markets in terms of assets, according to statistics from the OIC. Its total asset base is $6.8 billion or 7.7% of the total banking assets in March 2012, according to the State Bank of Pakistan………………………………………..Full Article: Source

What you must know about Islamic banking in Bangladesh

Posted on 12 December 2012 by Laxman  |  Email|Print

Islamic banking in Bangladesh will celebrate Golden Jubilee in the year 2033 on the eve of its accomplishment of 50 year of banking. And the present shape of the Islamic Banking is being modernized in terms of this changing scenario forecasting on world economy in the year 2033.
Understanding realizing this importance, the central bank (Bangladesh Bank) of the country introduced the ‘Guidelines for Islamic Banking’. The central bank stated that as Islamic banking has become a part of mainstream banking in Bangladesh, it has become necessary to introduce the guidelines to bring greater transparency and accountability to the Islamic Banking………………………………………..Full Article: Source

Seedat takes over Islamic banking unit

Posted on 12 December 2012 by Laxman  |  Email|Print

Absa has been appointed Afzal Seedat to run its Islamic banking unit with effect from January. Seedat is currently head and executive director of Absa Trust Limited. Arrie Rautenbach‚ head of Absa Retail Markets‚ said Seedat’s appointment was in line with Absa’s approach to the development and promotion of internal talent.
“In order for us to effectively execute on our retail market priorities‚ we need to have strong leadership that has the necessary skills to successfully implement our strategy and achieve business objectives‚” Rautenbach said………………………………………..Full Article: Source

SAB gains second Islamic taker, Maurisbank in Mauritania

Posted on 12 December 2012 by Laxman  |  Email|Print

A start-up Islamic bank in Mauritania, Maurisbank, has opted for the core banking system of French supplier, SAB. The system, SAB AT, will be deployed on a Software as a Service (SaaS) basis and the implementation, starting on 2nd January 2013, is expected to take six months.
In selecting SAB, the bank has rejected a number of systems that are already live in the country, including Path Solutions’ iMAL, which supports Mauritania’s first Islamic bank and has recently clocked up second and third Islamic takers here, Banque Populaire de Mauritanie (BPM) and Bank Al Muamelat Assahiha………………………………………..Full Article: Source

Alfi reveals how to service Islamic funds in Luxembourg

Posted on 12 December 2012 by Laxman  |  Email|Print

The Association of the Luxembourg Fund Industry (ALFI) published a collection of best practices for setting-up and servicing Islamic funds to provide a greater level of understanding of a growing market sector.
Marc Saluzzi, chairman of ALFI, said: “2012 has been a very active year for the Luxembourg Islamic finance community with several new Shariah-compliant funds launched. Luxembourg currently ranks No. 5 worldwide and first in Europe in the number of Shariah-compliant domiciled funds, at 41 funds with €4 billion in assets under management.”……………………………………….Full Article: Source

American firms must focus on partnerships with Bahraini Islamic firms

Posted on 12 December 2012 by Laxman  |  Email|Print

American firms should aim for partnership with Bahraini Islamic financial institutions to tap into the sector’s lucrative growth opportunity. Islamic banks, which offer loans based on real, tangible assets, have seen more takers in the US following the subprime crisis.
“There hasn’t been sufficient interest from US institutions in terms of partnering with Bahraini Islamic finance companies,” US Chamber of Commerce chief operation officer and executive vice-president David Chavern said………………………………………..Full Article: Source

Quality of growth vital for Islamic finance industry

Posted on 12 December 2012 by Laxman  |  Email|Print

The quality of growth in Islamic finance is more important than merely its numbers, said an expert as the industry moves towards greater regional penetration and branches into frontier markets such as South Asia and Africa.
“The industry is still concentrated in a few core markets such as Saudi Arabia, Iran, Malaysia and the UAE,” Ernst and Young global Islamic banking centre partner Ashar Nazim said. “Islamic finance will be rolled out to new frontier markets such as Nigeria, Egypt, Iraq, Mauritania and Uganda, which are introducing legislations for the industry at this point.”……………………………………….Full Article: Source

TDIC, Abu Dhabi Islamic Bank launch exclusive 100 pct home finance

Posted on 12 December 2012 by Laxman  |  Email|Print

Tourism Development & Investment Company (TDIC), master developer of tourism, cultural and residential destinations in Abu Dhabi, and Abu Dhabi Islamic Bank (ADIB), have launched an exclusive home finance scheme for high-end residential communities on Saadiyat island.
This scheme, which applies to purchases of the luxury Saadiyat Beach Villas, offers a simple home finance package for potential Saadiyat island residents that includes 100 per cent finance up to AED 30 million repayable over a period of 25 years with a competitive profit rate starting from 4.99 per cent………………………………………..Full Article: Source

ICD-AGF agreement boon for SMEs in Sub-Saharan Africa

Posted on 12 December 2012 by Laxman  |  Email|Print

Islamic Corporation for the Development of Private Sector (ICD), the private sector arm of the Islamic Development Bank Group (IDB), and The African Guarantee Fund (AGF) signed a Memorandum of Understanding (MoU) to collaborate in the development of the SME sector in ICD’s member countries in the Sub-Saharan Africa region.
As per the MoU, ICD and AGF will join forces to cooperate in the development of the SME sector in Africa particularly in the Sub-Saharan region through providing term financing, equity investment, lines of financing or guarantees………………………………………..Full Article: Source

Islamic banking assets to cross $1.8 trillion

Posted on 11 December 2012 by Laxman  |  Email|Print

Global Islamic banking assets held by commercial banks are set to cross $1.8 trillion in 2013, up from the $1.3 trillion of assets held in 2011 according to Ernst & Young’s World Islamic Banking Competitiveness Report 2013. This forecast is significantly higher than some of the earlier industry estimates.
Globally, the Islamic banking industry continues to record robust growth, with the top 20 Islamic banks registering a growth of 16 percent in the last three years and Saudi Arabia emerging as the largest market for Islamic assets. Top 20 Islamic banks hold over 50 percent of global Islamic banking assets……………………………………….Full Article: Source

Global sukuk issuances hit $121bln in 2012

Posted on 11 December 2012 by Laxman  |  Email|Print

The global sukuk market is expected to grow 141.32 per cent to reach $292 billion (Dh1.07 trillion) in issuances by 2016, up from $121 billion (Dh444 billion) in 2012, according to a latest report by Thomson Reuters.
The value of global aggregate sukuk for the period January 1996 to September 2012 is $396.4 billion, attributed to 2,790 issues. “More than 60 per cent of this total value comes from sukuk issued between 2010 and 2012, when 1,486 sukuk were issued to the tune of $248.5 billion,” the report says………………………………………..Full Article: Source

Qatar issued $25bln sukuk this year

Posted on 11 December 2012 by Laxman  |  Email|Print

Qatar has issued Islamic bonds (sukuks) worth a staggering $25bn this year, with more than 50 percent of the subscribers representing conventional institutions — a development that indicates increasing investor confidence in Shariah-compliant investment avenues worldwide, a conference on Islamic banking and finance was told here yesterday.
Sheikh Mohamed bin Hamad bin Jassim Al Thani, Chairman of Barwa Bank, said while the world is still fighting economic downturn Islamic banking and financing activities have been witnessing growth………………………………………..Full Article: Source

Bond sales by state-linked firms in GCC will ‘pick up’

Posted on 11 December 2012 by Laxman  |  Email|Print

The Middle East’s biggest debt underwriter said bond sales by government-related companies in the Gulf will pick up at the start of the new year 2013 to support more than $1 trillion in planned spending.
There’s reason to be ‘optimistic’ for sales by government-related enterprises at the start of next year, said Georges Elhedery, head of global markets for the Middle East and North Africa at HSBC. Issuance this year by so-called GREs fell to about $9.9 billion from about $13 billion in 2011 and compared to $8 billion a year earlier, according to data………………………………………..Full Article: Source

Dana Gas completes restructuring Sukuk owned by BlackRock

Posted on 11 December 2012 by Laxman  |  Email|Print

Dana Gas PJSC, whose bondholders include BlackRock Inc (BLK) and Ashmore Group Plc (ASHM), completed the restructuring of $920 million of Islamic bonds after agreeing to pay twice the average yield on emerging markets corporate sukuk.
Dana Gas, which missed sukuk payments in October, will pay bondholders $70 million in cash and split the remaining Shariah- compliant debt into $425 million of convertible bonds and an ordinary sukuk of equal value, the United Arab Emirates fuel producer said in a statement. The five-year convertible bonds will pay a profit rate of 7 percent and the ordinary sukuk 9 percent. That compares with 7.5 percent on the existing sukuk……………………………………….Full Article: Source

First Resources issues second ringgit-denominated sukuk of RM400mln

Posted on 11 December 2012 by Laxman  |  Email|Print

First Resources Limited, a leading palm oil company listed on the Main Board of the Singapore Exchange, today successfully issued its second ringgit-denominated sukuk of RM400 million under its Sukuk Musharakah Programme of up to RM2 billion, established on July 9 this year.
OSK Investment Bank Bhd and RHB Investment Bank Bhd are the Joint Principal Advisers and Joint Lead Arrangers for the Sukuk Musharakah Programme and Joint Lead Managers for the distribution of the IMTNs in Malaysia………………………………………..Full Article: Source

Bintulu Port unit to raise RM1.35 bln

Posted on 11 December 2012 by Laxman  |  Email|Print

The Samalaju Industrial Port Sdn Bhd (SIPSB) plans to raise up to RM1.35bil from a share placement and issuance of Islamic securities or sukuk to fund the development of the Samalaju port project in Bintulu. The company is a wholly-owned subsidiary of Bintulu Port Holdings Bhd (BPHB).
BPHB chief executive officer Datuk Mior Ahmad Baiti Mior Lub Ahmad said the parent holding was expected to raise RM400mil via the placement of up to 15% of its issued and paid-up capital to its major shareholder(s)/(offerors(s), and up to RM950mil from the issuance of sukuk………………………………………..Full Article: Source

RAM Ratings assigns AAA(bg)/P1(bg) ratings to Aspion’s sukuk

Posted on 11 December 2012 by Laxman  |  Email|Print

RAM Ratings has assigned respective enhanced long- and short-term ratings of AAA(bg) and P1(bg) to Aspion Sdn Bhd’s (”Aspion” or “the Group”) RM150 million Islamic Commercial Papers/Islamic Medium-Term Notes Programme (2012/2018) (”ICP/IMTN” or “Sukuk”); the long-term rating has a stable outlook.
The enhanced ratings reflect the unconditional and irrevocable guarantee extended by Maybank Islamic Berhad, which improves the credit profile of the Sukuk beyond Aspion’s stand-alone credit profile. (Press Release)

Islamic Development Bank opens clean-energy fund in Central Asia

Posted on 11 December 2012 by Laxman  |  Email|Print

Islamic Corp. for the Development of the Private Sector, the investment arm of the Saudi Arabia-based Islamic Development Bank, started a fund to finance renewable- energy projects in Central Asia and plans another in Africa.
The $35 million Central Asian fund is based in Kazakhstan, Islamic Corp.’s Chief Executive Officer Khalid al-Aboodi said today in Manama, Bahrain. The North Africa fund, expected to be about $35 million to $50 million in size, will open soon………………………………………..Full Article: Source

Saudi Arabia overtakes Malaysia as biggest mart for Islamic banking: EnY

Posted on 11 December 2012 by Laxman  |  Email|Print

Global Islamic banking assets held by commercial banks are set to cross $1.8 trillion in 2013, up from the $1.3 trillion of assets held in 2011, Ernst & Young’s World Islamic Banking Competitiveness Report 2013 revealed Monday.
Ashar Nazim, Partner, Global Islamic Banking Center of Excellence at Ernst & Young, said: “The top 20 Islamic banks hold 57 percent of the total global Islamic banking assets and are concentrated in the seven core markets for Islamic banking which include: Saudi Arabia, Kuwait, UAE, Bahrain, Qatar, Malaysia and Turkey.” According to the report, in 2011, the Islamic banking industry in Saudi Arabia, with an estimated $207 billion of Islamic assets, was ranked first. Malaysia, ranked second with total assets of $106 billion in 2011 and UAE ranked third with total assets of $75 billion………………………………………..Full Article: Source

Islamic finance grows 50 pct faster than overall banking sector in key markets

Posted on 11 December 2012 by Laxman  |  Email|Print

The 2012/13 edition of the World Islamic Banking Competitiveness Report 2011/12 was launched at a specially convened session at the World Islamic Banking Conference in Bahrain. Developed in collaboration with Ernst & Young, the report entitled Growing Beyond: DNA of a Successful Transformation, was presented by Ashar Nazim, Partner, Head of Islamic Banking Excellence Center, Ernst and Young and Shoaib Qureshi, Senior Manager Islamic Financial Services MENA, Ernst and Young.
The report notes that, “Islamic banking growth outlook continues to be positive, growing 50 per cent faster than overall banking sector in several core markets with the Islamic banking assets with commercial banks globally grew to $1.3 trillion in 2011, suggesting an average annual growth of 19 per cent over past four years………………………………………..Full Article: Source

Islamic banks to expand, compete for mainstream clients: study

Posted on 11 December 2012 by Laxman  |  Email|Print

Islamic banks are set to expand as they compete increasingly with conventional lenders in attracting mainstream customers, according to a report by consultancy Ernst & Young released on Monday.
The total of all commercial banks’ Islamic assets is estimated to reach $1.55 trillion this year, $1.8 trillion in 2013 and over $2 trillion mark, the report said. Gulf-based Islamic banks now have $450 billion in assets, about 30 percent of the total………………………………………..Full Article: Source

Absa ‘to lead Islamic banking along its African path’

Posted on 11 December 2012 by Laxman  |  Email|Print

ABSA would expand its Islamic banking franchise in South Africa and the region using the same strategies that would make it the “go to” bank as coined last week by group CEO Maria Ramos. Islamic banking is operated under the principles of Sharia law which, among other practices, prohibits the charging of interest on loans.
Arrie Rautenbach, Absa’s head of retail markets, said in an interview Islamic banking had always been a strategic initiative for Absa. This was shown by what he said were the “pioneering” propositions that the Barclays-owned bank had brought to the market………………………………………..Full Article: Source

IBFIM to maintain supplying 30 pct Malaysia’s Islamic finance workforce

Posted on 11 December 2012 by Laxman  |  Email|Print

Islamic Banking and Finance Institute Malaysia (IBFIM) aims to maintain supplying an annual average of 30 per cent of Malaysia’s Islamic Finance industry workforce.
Chief Executive Officer Datuk Dr Adnan Alias said the institute would forge more partnerships with educational organisations such as the memorandum of agreement (MoA) signed with Binary University of Management and Entrepreneurship………………………………………..Full Article: Source

Global overview of financial regulatory reforms among topics at IFSB summit

Posted on 11 December 2012 by Laxman  |  Email|Print

A global overview of financial regulatory reforms as well as innovation and inclusive growth in Islamic finance, are among the topics to be discussed at the 10th Annual Summit of the Islamic Financial Services Board (IFSB).
To be held from May 14-17, 2013, the Summit is themed, “The Future of the Islamic Financial Services Industry: Resilience, Stability and Inclusive Growth”. Bank Negara Malaysia is hosting the landmark IFSB Summit……………………………………….Full Article: Source

Islamic International Rating Agency reaffirms Shariah quality rating of Jordan Islamic Bank

Posted on 11 December 2012 by Laxman  |  Email|Print

Islamic International Rating Agency (IIRA) has reaffirmed its Shari’a Quality Rating of AA (SQR) assigned to Jordan Islamic Bank (JIB). This rating indicates JIB’s conformance to very high standards of Shari’a compliance in all aspects of Shari’a quality analysis.
Owned in majority by the Al Baraka Banking Group (ABG), one of the most prominent Islamic Banking Groups in the world, JIB is the largest Islamic bank in Jordan. Commitment to maintaining and enhancing the level of compliance with the spirit of Shari’a rulings in Islamic finance, stems from the vision of ABG and the Board of Directors of JIB, as well as the bank’s managerial leadership………………………………………..Full Article: Source

Bank Indonesia : Islamic economic advocacy and communication forum (ForKAES) established

Posted on 11 December 2012 by Laxman  |  Email|Print

The Islamic Economic Advocacy and Communication Forum (ForKAES) was formed as mandated by the PKES National Members Convention (KNA) on 13th July 2012 to optimize the achievement of Islamic financial/economic communication and socialization targets. ForKAES is a communication forum for associations formed by professionals and practitioners linked to the Islamic economy and observers of the Islamic economy in Indonesia.
ForKAES aims to coordinate and synchronize socialisation programs and activities, publications and communication conducted by related associations like the Islamic Economic Community (IEC), the Islamic Banking Association of Indonesia (ASBISINDO), the Indonesian Association of Islamic Economics (IAEI), the Indonesian BMT Association (ABSINDO), the Islamic Insurance Association of Indonesia (AASI) and the Islamic Economic Communication Centre (PKES). (Press Release)

BMS the third Islamic bank in Mauritania to choose Path Solutions

Posted on 11 December 2012 by Laxman  |  Email|Print

Bank Al Muamelat Assahiha (BMS), one of Mauritania’s most recently-established Islamic banks, has chosen Path Solutions’ Enterprise Islamic Banking System - iMAL to support the launch of its Islamic banking operations across four initial branches.
BMS, which has its headquarters in Nouakchott, selected Path Solutions’ iMAL package as its preferred Islamic Core banking solution following an intensive bidding process among three shortlisted contenders………………………………………..Full Article: Source

TDIC and Abu Dhabi Islamic Bank launch exclusive 100pct home finance program

Posted on 11 December 2012 by Laxman  |  Email|Print

Tourism Development & Investment Company (TDIC), master developer of major tourism, cultural and residential destinations in Abu Dhabi, and Abu Dhabi Islamic Bank (ADIB), launched an exclusive home finance scheme for high-end residential communities on Saadiyat island.
This scheme, which applies to purchases of the luxury Saadiyat Beach Villas, will offer a unique and simple home finance package for potential Saadiyat island residents that includes 100% finance up to Dhs30m repayable over a period of 25 years with a competitive profit rate starting from 4.99%………………………………………..Full Article: Source

Wakala new alternative to Murabaha deals

Posted on 11 December 2012 by Laxman  |  Email|Print

Islamic interbank lending is now starting to move away from Murabaha contracts to Wakala, which is seen as a stronger Sharia-compliant process, said report.
The International Islamic Financial Market (IIFM), the global standardisation body for the Islamic capital and money market, is currently working on standardised agreements in the use of Wakala contracts, a key issue in interbank lending in the industry……………………………………….Full Article: Source

Teraju, RHB Islamic team up to provide RM520mln financing under Teras Fund

Posted on 11 December 2012 by Laxman  |  Email|Print

The Bumiputra Agenda Steering Unit (Teraju) and RHB Islamic Bank Bhd will collaborate to provide financing of up to RM520mil under the Teras Fund to bumiputra companies. Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop said that 250 companies had received funding to-date, including 150 firms under Teraju’s initial collaboration with SME Bank.
“Over RM1bil has been credited into the Teras Fund to benefit companies,” Nor Mohamed, who is also Teraju chairman, said……………………………………….Full Article: Source

Arab investors mull legal action over $516mln fund

Posted on 11 December 2012 by Laxman  |  Email|Print

Arab investors in a €400m (US$516m) French property fund operated by Dubai Islamic Bank (DIB) are considering legal action after claiming they have not received any dividend or audited financial statements on the fund’s status since 2009.
The Al Rayyan II French Property Fund was launched in 2005 and is managed by Qatar Islamic Bank (QIB) on behalf of DIB. The €400m (US$516m) fund invested in a number of income-producing properties in France and initially gave investors a yearly return of around 8 percent………………………………………..Full Article: Source

Azerbaijan’s biggest bank plans $150 mln Islamic loan

Posted on 10 December 2012 by Laxman  |  Email|Print

International Bank of Azerbaijan (IBA), the country’s biggest lender, plans to raise $150 million through an Islamic syndicated loan early next year and double its Islamic banking assets by the end of 2013, according to a senior executive.
Behnam Gurbanzada, IBA’s director of Islamic banking, said the bank planned to sign a mandate in January and close the deal in April. The one-year private syndication would be the first of its kind in Azerbaijan and would help IBA cater to the estimated 93 percent of its 9 million population who are Muslim………………………………………..Full Article: Source

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Turkish bank plans to issue $300mln sukuk

Posted on 10 December 2012 by Laxman  |  Email|Print

Turkey’s largest Islamic lender Bank Asya plans to issue a dollar-denominated sukuk, or Islamic bond, of around $200-$300 million within the next two to three months, chief executive Abdullah Celik said.
The Islamic lender will also finalise the issuance of its lira-denominated sukuk of between 100-150m lira ($56-84m) within the next month-and-a-half, Celik said in an interview………………………………………..Full Article: Source

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Cagamas debt issuance increases 76 pct to MYR 5.0 bln for 2012

Posted on 10 December 2012 by Laxman  |  Email|Print

Cagamas Berhad, the Malaysian National Mortgage Corporation announced a 76 per cent increase in debt securities issuance to MYR 5.0 billion for 2012 following the successful sale of MYR 1.45 billion Sukuk comprising MYR 250 million Sukuk Wakalah bil Istithmar and MYR 1.2 billion Sukuk Commodity Murabahah.
The Sukuk are in three-month, one, two, three, four and five-year tenures and will be issued at 3.21 per cent, 3.30 per cent, 3.40 per cent, 3.50 per cent, 3.58 per cent and 3.66 per cent respectively………………………………………..Full Article: Source

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Egypt’s Sukuk law draft completed

Posted on 10 December 2012 by Laxman  |  Email|Print

The Egyptian Financial Supervisory Authority (EFSA) is reported to have finished the draft of a law governing the issuance of Sukuk in the country.
Egyptian newspaper Al Ahram reports an EFSA statement as saying the draft legislation was put together after studying international experiences in such regulations. The draft includes activities that may be financed by Sukuk and the different kinds of financing instruments available. The bill stipulates the approval of a committee of three Shari’ah scholars on any Sukuk offering before it is issued………………………………………..Full Article: Source

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Saudi Savola Group EGM gives debt issuance the nod

Posted on 10 December 2012 by Laxman  |  Email|Print

Following the extraordinary general meeting held on 5 December, Savola Group reports that the EGM approved the proposed amendment to the company’s by-laws, giving it the green light to issue debt instruments.
The company may now issue any type of tradable debt instruments such as bonds or Sukuk whether within or outside the Kingdom of Saudi Arabia in accordance with the applicable laws and regulations, and the General Assembly (GA) has the right, pursuant to a resolution issued by it, to delegate to the Board the authority to issue such debt instruments including bonds or Sukuk ……………………………………….Full Article: Source

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GIB raises $ 500 mln through debut bond issue

Posted on 10 December 2012 by Laxman  |  Email|Print

Gulf International Bank (GIB) has announced the successful completion of its senior unsecured $ 500 million 5-year debut issue under its $ 4 billion Euro Medium Term Note Program. The notes were issued at a spread of $ 5-year mid-swap plus 165 basis points with a coupon rate of 2.375 percent.
This highly successful Reg S transaction achieved one of the lowest coupons for a $ 5-year senior unsecured transaction by a bank in the MENA region, clearly reflecting investors’ high confidence in GIB’s financial strength and credit story………………………………………..Full Article: Source

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Gold investment and shariah-compliant claims

Posted on 10 December 2012 by Laxman  |  Email|Print

Early in October, Bank Negara Malaysia, together with the Ministry of Domestic Trade and Consumer Affairs and the Companies Commission of Malaysia (SSM), raided several gold trading companies with the help of the police.
Among them were Genneva Malaysia Sdn Bhd, Pageantry Gold Bhd, Caesar Gold Sdn Bhd, Worldwide Far East Bhd and Bestino Group Bhd. Genneva — probably the largest and the most high-profile of these companies — attracted much attention from the public and the media………………………………………..Full Article: Source

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Islamic finance driving force in world growth

Posted on 10 December 2012 by Laxman  |  Email|Print

Saudi banks are doing a good job in the field of Shariah-compliant financing and are creating more excitement in the world about the industry, says SEDCO Capital CEO Hasan S. AlJabri.
SEDCO Capital has worked with some of the leading global managers to develop Shariah-compliant investments that are as sophisticated and at often times more rewarding than conventional investments due to its low leverage, he says.“The virtue of Islamic finance is the creation of real value in the economy thus creating real growth and jobs,” he said………………………………………..Full Article: Source

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Malaysia: Islamic finance industry sets talent target

Posted on 10 December 2012 by Laxman  |  Email|Print

Malaysia needs talents to fill 35,000 Islamic finance vacancies by 2030 to cope with the rapid growth of the industry, said Islamic Banking and Finance Institute (IBFIM) CEO Datuk Dr Adnan Alias.
He said the institute planned to provide training in Islamic finance to meet the growing needs of the industry. “IBFIM is proud to see such great take up for certified qualification in Islamic Finance and specialised certification programmes and a high level of talent as can be seen from the programmes’ assessment results,” he said……………………………………….Full Article: Source

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Malaysia a progressive Islamic country, says Awang Adek

Posted on 10 December 2012 by Laxman  |  Email|Print

The government is planning on modeling Malaysia as a progressive and advanced Islamic country in the long run along with having the largest Islamic financial system in the world.

Deputy Finance Minister, Datuk Dr Awang Adek Hussin said such an aspiration was not impossible considering the achievement of Islamic finance accounting for 24 per cent of the country’s total financial system………………………………………..Full Article: Source

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Reuters launches Islamic Finance Gateway

Posted on 10 December 2012 by Laxman  |  Email|Print

Thomson Reuters, a leading source of intelligent information for businesses and professionals, has launched the new Islamic Finance Gateway (IFG) community, a multi-platform forum for experts and professionals in the Islamic finance industry.
The IFG Community gathers the industry online, and face-to-face at roundtable sessions and conferences. The online community forum gives members free access to the latest market reports, insider information, and market news and analysis. Community members also receive daily and weekly briefings that contain essential daily news and market movement coverage of all relevant Islamic asset classes. (Press Release)

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Misconceptions on cost of Islamic products

Posted on 10 December 2012 by Laxman  |  Email|Print

Islamic products and services are currently in the process of being rolled out to the markets by respective Islamic banks and windows, pending the promulgation of Islamic Finance Regulatory Framework (IBRF). Islamic banking is indeed ‘Riba-free’ because Riba is Haram in Islam. However, it is a misconception that Islamic banking is free of any costs to the borrowing clients.
There are both the ‘operating costs’ and ‘profits’ charged by the banks providing Islamic products and services to their customers. These charges are roughly the same as those charged by the conventional banks for their products and services………………………………………..Full Article: Source

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Kuwait Finance House makes $89 mln profit from land sale

Posted on 10 December 2012 by Laxman  |  Email|Print

Kuwait Finance House (KFIN) made a 25 million-dinar ($89 million) profit from a property deal as the country’s biggest Islamic lender reorganizes its business.The bank sold 16 units of land for 84 million dinars, it said in an e-mailed statement. Profit from the sale will be included in 2012 financial results.
Kuwait Finance House said last month it plans to boost capital by 20 percent to help finance its five-year plan and support expansion. The lender said in March it will restructure, merge or sell unprofitable units to boost earnings………………………………………..Full Article: Source

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CBO revises banking law to include Shariah operations

Posted on 10 December 2012 by Laxman  |  Email|Print

The board of governors of the Central Bank of Oman (CBO) has revised the legal framework of the sultanate’s banking system for the implementation of Islamic banking activities in the country. According to a statement issued on Saturday, the board decided to introduce amendments to the existing banking law in relation to Islamic banking.
A Royal Decree issued last week amended provisions of the banking law to allow for the inclusion of Islamic banking as a licensed banking activity through either specialised banks or independent windows at existing commercial banks………………………………………..Full Article: Source

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Islamic banking likely to start soon

Posted on 10 December 2012 by Laxman  |  Email|Print

Oman has paved the way for Islamic banks to start operations with the announcement of a Royal Decree amending the banking law to accommodate Sharia-compliant financial products. The two Islamic banks bank Nizwa and alizz islamic bank and window operations of conventional banks are expected to start within two months from now.
The Central Bank of Oman (CBO) may announce the detailed regulation, said a banking source. “We have all submitted application for starting window operation. Now the central bank can issue licence for us to offer Sharia compliant products. But I don’t know the timeframe,” said a senior banker………………………………………..Full Article: Source

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