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Islamic Finance Briefing - Archive | December, 2012

Maurisbank selects SAB as technology partner

Posted on 10 December 2012 by Laxman  |  Email|Print

Maurisbank will launch its Islamic banking offering to both retail and corporate clients in Mauritania in 2013, having chosen SAB as its technology partner.
The contract between Maurisbank and SAB was signed in Nouakchott recently by Ahmed Ould Megaya, President and principal shareholder of Maurisbank, and by Henri Assaf, the General Manager of SAB Group, in the presence ofMohamed Limame, General Manager of SAB Tunisia………………………………………..Full Article: Source

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Bank Sohar introduces GCC Fixed Income Fund

Posted on 10 December 2012 by Laxman  |  Email|Print

Close on the heels of declaring strong third quarter results, Bank Sohar was awarded with an Investment Banking License by the Capital Markets Authority of Oman. “This license is very important because it allows Bank Sohar to offer more products and services to its clients and relationships”, said Dr Kalmoor, CEO of Bank Sohar.
Bank Sohar GCC Fixed Income Fund (“Fund”), which is a separate share class within the Rasmala GCC Fixed Income Fund, seeks to provide investors with regular coupon distributions and capital appreciation by investing primarily in investment grade bonds issued by governments, government related entities and corporates. (Press Release)

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Khalifa Fund provides its financial services through Ajman Bank

Posted on 10 December 2012 by Laxman  |  Email|Print

Khalifa Fund for Enterprise Development signed a Memorandum of Understanding with Ajman Bank which will allow Khalifa Fund to give its financial services to the Emiratis through the Bank branches, which will increase the number of banks providing credit management services to 6 national banks.
By signing this MOU, Ajman Bank with provide our applicants with the credit management services they require and all other financial services required by our applicants in addition to provide a special center for them. “This MOU allow Khalifa Fund to provide different financial programs under the Islamic Finance in order to provide various options for the different society segments”, said H. E. Abdullah Al Darmaki the CEO of Khalifa Fund. (Press Release)

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World Islamic banking conference eyes int’l development

Posted on 10 December 2012 by Laxman  |  Email|Print

The 19th World Islamic Banking Conference (WIBC) opened Sunday in Bahrain with participants eyeing the international development of the Islamic banking industry.
As the world’s largest and most significant annual gathering of the Islamic banking industry, the WIBC is set to convene more than 1,200 industry leaders representing over 50 countries this year. In his speech at the opening of WIBC 2012, Khaled Mohammed Al- Aboodi, head of Saudi Islamic Development Bank’s private sector branch, stressed building the Islamic banking’s capacity and supporting its international development. (Press Release)

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Malaysia: New Islamic banking and Takaful acts to be effective next year

Posted on 07 December 2012 by Laxman  |  Email|Print

The new Islamic banking and Takaful Acts, currently undergoing legislative process towards its enactment, will be effective next year, says Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz.
It has already gone for first and second reading in Parliament, she said, adding that it would be called the Islamic Financial Services Act and Islamic Finance and Takaful Act……………………………………….Full Article: Source

Sukuk boosting Islamic finance

Posted on 07 December 2012 by Laxman  |  Email|Print

The success of sukuk issuances by financial institutions underlinine the tremendous potential of Islamic finance industry, which has shown healthy growth despite the global financial crisis and the lull after it, said an expert.
“The present and future of Islamic finance and banking industry are very promising,” Ernst & Young Bahrain senior director Imtiaz Ibrahim said. “Islamic financial institutions are offering various deposit products on the basis of Wakala and Mudaraba, which are reliable sources of Sharia-compliant income for depositors and provides continuous liquidity stream to such institutions,” he said………………………………………..Full Article: Source

Malaysia: Refinancing fuels record sukuk

Posted on 07 December 2012 by Laxman  |  Email|Print

Malaysian companies are taking advantage of all-time low yields to refinance local-currency sukuk, accounting for 55% of 2012’s record issuance.
Average costs for 15-year top-rated corporate debt fell 48 basis points this year to 4.6%, according to a Bank Negara index. Of the RM91bil of syariah-compliant securities issued in 2012, RM50bil was for refinancing, data compiled by Bloomberg show. Sime Darby Bhd, the world’s biggest palm-oil producer, sold RM700mil of Islamic bonds on Nov 28 as part of a restructuring, pricing the portion due in 2027 at 4.35%………………………………………..Full Article: Source

Savola EGM approves sukuk issuance

Posted on 07 December 2012 by Laxman  |  Email|Print

The Savola Group, a leading conglomerate in Saudi Arabia, recently held an extraordinary general meeting (EGM) which approved issuance of sukuk with total value not exceeding the company’s paid-up capital.
The EGM also voted to delegate to the Board the authority to issue such tradable debt instruments without reverting to the General Assembly (GA), said Dr Abdulraouf M Mannaa, managing director of the company………………………………………..Full Article: Source

IILM to issue maiden Sukuk early next year, says Zeti

Posted on 07 December 2012 by Laxman  |  Email|Print

International Islamic Liquidity Management Corporation (IILM) is likely to issue its maiden sukuk by early next year, Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz said.
She said the IILM Board will be having a board meeting next week in the Middle East, of which she will be attending.”Hopefully, following the board meeting, it will look into early next year for such an issuance,” she said………………………………………..Full Article: Source

Cagamas issuance grows 76 pct to reach 5 bln ringgit in 2012

Posted on 07 December 2012 by Laxman  |  Email|Print

Cagamas Bhd, Malaysia’s second-largest issuer of debt securities, saw total issuance grow 76 percent to 5 billion Malaysian ringgit ($1.64 billion) this year.

The company met its expected total issuance this year after the recent sale of a 1.45 billion Islamic bond, the company said in a statement on Thursday………………………………………..Full Article: Source

Kuwait Finance House set to return to black

Posted on 07 December 2012 by Laxman  |  Email|Print

Kuwait Finance House (Malaysia) Bhd (KFH), the first foreign Islamic bank to set up operations in Malaysia, is on track to return to the black for the full year, having registered three straight profitable quarters.
Chief executive officer Datuk Jamelah Jamaluddin said the group looks set to meet its target of a pre-tax profit of at least RM80 million for the full year, after three years of losses. “We just got our third quarter results approved yesterday and we are still in the black,” she said, without revealing details of the results………………………………………..Full Article: Source

Kuwait Finance House bullish about consumer banking segment

Posted on 07 December 2012 by Laxman  |  Email|Print

Kuwait Finance House (M) Bhd (KFH), the first foreign Islamic bank in the country, is optimistic of the growth of its consumer banking supported by its partnership with Animonsta Studio Sdn Bhd, an animation content developer, as well as its gold investment products.
Consumer banking business is one of the two components alongside commercial banking business under the umbrella of retail banking. Chief executive officer Datuk Jamelah Jamaluddin said when the bank re-launched its retail banking in 2010 consumer banking was less than 3% out of the total bank’s portfolio………………………………………..Full Article: Source

KFH expects gold sales under gold savings account portfolio to touch three tonnes

Posted on 07 December 2012 by Laxman  |  Email|Print

Kuwait Finance House (M) Bhd (KFH Malaysia) aims to expand its gold savings account portfolio with sales to touch three tonnes of gold next year.
Its head of retail and consumer banking, Attar Salleh, said currently, the Islamic bank has slightly less than two tonnes of gold, accumulated from savings in KFH Malaysia’s products — KFH Gold Account-i and KFH Junior Gold Account………………………………………..Full Article: Source

Emirates Islamic Bank completes migration of Dubai Bank

Posted on 07 December 2012 by Laxman  |  Email|Print

Emirates Islamic Bank announced today that, as of November 30, 2012, it has successfully completed the integration of Dubai Bank customers, branches and operations into its platform. To date, most branches have been converted to Emirates Islamic Bank systems and brand, with the remainder to follow during the first weeks of December.
Following the completion of the transition, Emirates Islamic Bank is now the third-largest Islamic Bank in the country, laying the foundations for a future of aggressive, sustained growth in 2013 and beyond. (Press Release)

ZICOlaw lays groundwork to develop Islamic finance abroad

Posted on 07 December 2012 by Laxman  |  Email|Print

ZICOlaw recently signed an agreement with the National Bank of Tajikistan (NBT) to develop the country’s Islamic banking legislation. ZICOlaw is an integrated network of independent legal and related professional service providers in the Asean region and the first of its kind originating from an indigenous Asian law firm.
In a statement, ZICOlaw said the project is supported by technical assistance funding from the Islamic Development Bank (IDB)………………………………………..Full Article: Source

Malaysia’s Zeti urges greater harmonisation of Islamic finance

Posted on 07 December 2012 by Laxman  |  Email|Print

Zeti Akhtar Aziz says there is much common ground in different jurisdictions’ sharia interpretations, but a lack of understanding is holding back the growth of Islamic finance. Jurisdictions should work together to promote greater harmonisation of sharia-compliant financial products, according to Zeti Akhtar Aziz, governor of the Bank Negara Malaysia.
Zeti said it was “imperative” that jurisdictions worked towards a greater understanding of different justifications for Islamic financial products. The governor referred to a study that found there were “more similarities than differences” between regions, but a lack of awareness was holding back growth in the sector………………………………………..Full Article: Source

Qatar National Bank launches debt fund

Posted on 07 December 2012 by Laxman  |  Email|Print

The Qatar National Bank has launched a debt fund, becoming the first bank in Qatar to launch a fund of this kind. The QNB Debt Fund will invest in debt securities issued by GCC-based sovereign and corporate entities and is open to retail and institutional investors.
QNB said GCC bonds offer a “combination of attractive rates of return (and superior levels of underlying credit risk) which is not generally available elsewhere”………………………………………..Full Article: Source

Saudi asset manager launches Ucits-compliant funds

Posted on 07 December 2012 by Laxman  |  Email|Print

NCB Capital, the largest asset manager in Saudi Arabia, has decided to widen its investor base by launching a range of Dublin-domiciled Islamic mutual funds.
NCB Capital, which manages more than $12bn in assets, has launched two Ucits-compliant funds that invest in Saudi Arabian and Gulf Co-operation Council (GCC) equities, according to Reuters………………………………………..Full Article: Source

MoF and Sharjah Chamber of Commerce and Industry sign MoU

Posted on 07 December 2012 by Laxman  |  Email|Print

The Ministry of Finance (MoF) signed a Memorandum of Understanding (MoU) with Sharjah Chamber of Commerce & Industry (SCCI). The MoU aims to enhance the mutual cooperation between the two parties and to establish a permanent exhibition for Islamic countries’ in Sharjah in collaboration with the Islamic Development Bank group; one of the development organisations that the United Arab Emirates contribute in.
The MoU was signed in Dubai by HE Younis Haji Al Khouri, Undersecretary of MoF, and HE Mohammed Sultan Ben Houidn First Deputy Chairman of Chamber of Commerce and Industry. (Press Release)

Islamic finance faces growth challenges

Posted on 06 December 2012 by Laxman  |  Email|Print

A steady flow of women wearing hijabs, or Muslim head veils, enter HSBC’s Amanah branch in the Malaysian capital of Kuala Lumpur during lunch hour. It’s brisk business for the UK lender, which was one of the first global banks to offer Islamic finance - a field that is slowly starting to rival conventional banking in predominantly Muslim countries such as this one.
Islamic finance is based on gaining profits in a socially responsible manner. Each transaction is underpinned by real trade or business activities that do not involve anything forbidden under Sharia, such as gambling or alcohol………………………………………..Full Article: Source

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Top gulf fund manager says bond rally to fizzle: Islamic finance

Posted on 06 December 2012 by Laxman  |  Email|Print

The Persian Gulf’s best-performing fixed-income fund manager says returns in the oil-exporting region may drop by about half in 2013 after a three-year rally drove yields and risk premiums to record lows.
Bonds and Shariah-compliant debt in the six-nation Gulf Cooperation Council have made 12 percent this year, bringing their total returns since 2009 to more than 34 percent, according to HSBC/Nasdaq Dubai’s GCC U.S. Dollar Sukuk/Bond Index………………………………………..Full Article: Source

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CIMB eyes Aussie bonds

Posted on 06 December 2012 by Laxman  |  Email|Print

Capitalising on Malaysia’s lead in the Islamic financing market, CIMB Group Holdings Bhd is said to have held talks with Australia’s big banks about issuing the country’s first Islamic bonds.
The Australian newspaper reported that CIMB’s capital markets head in Sydney Michael Forde said major lenders Down Under could become the first Australian companies to tap Malaysia’s sukuk market next year as they sought ways to access the growing pool of cashed-up Muslim investors………………………………………..Full Article: Source

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New Australian venture to promote Malaysian alternative bond market

Posted on 06 December 2012 by Laxman  |  Email|Print

SmartSukuk, a newly established Australian venture, will act as a conduit for Australian issuers to facilitate corporate bond issuance in the Malaysian capital market. Australian issuers should be paying greater attention to the Malaysian bond market given how vibrant it has become overtime since the implementation of its capital market masterplan (now in its second instalment) with particular focus on Sukuk issuance (an alternative bond instrument).
Malaysia accounts for approximately 70% of the global Sukuk issuance and even attracts issuers from the MENA region………………………………………..Full Article: Source

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Perpetual participation Sukuk - A proposed additional tier-1 capital under Basel III

Posted on 06 December 2012 by Laxman  |  Email|Print

On the funding side of an Islamic bank’s balance sheet, we are expected to find three types of equities - equity of musharakah, equity of mudharabah and equity of sukuk. Our approach to these equity types needs to be changed to respond effectively to Basel III reforms and benefit from and contribute to genuine Islamic finance.
With this spirit we suggest the perpetual participation sukuk within the framework of Basel III as additional tier-1 capital………………………………………..Full Article: Source

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Saudi’s Alkhabeer eyes 2014 IPO

Posted on 06 December 2012 by Laxman  |  Email|Print

Alkhabeer Capital, a Saudi Arabia-based investment advisory firm, plans to offer new shares worth about 30 percent of its capital in an initial public offering (IPO) on the local bourse by early 2014, its CEO said.
Alkhabeer, in which conglomerate Saudi Binladin Group is a top shareholder, is awaiting the regulatory nod to initiate the IPO process, CEO Ammar Shata said in Dubai………………………………………..Full Article: Source

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Gold investment and shariah-compliant claims

Posted on 06 December 2012 by Laxman  |  Email|Print

Early last month, 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. Basically, these companies were raided as they were suspected of carrying out gold-trading schemes that the authorities claim were not sustainable………………………………………..Full Article: Source

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Saudi-Swiss fund investing in soft commodity markets

Posted on 06 December 2012 by Laxman  |  Email|Print

Sidra Capital (Sidra), a Saudi Arabia Capital Market Authority (CMA)-regulated Shariah- compliant financial services company and INOKS Capital SA (INOKS), an alternative investment house specialized in commodities financing in emerging markets and regulated by the Swiss Financial Market Supervisory Authority (FINMA), recently announced investments in various transactions by its jointly managed Sidra Ancile Global Structured Trade Finance Fund (STFIF) totaling $13.5 million.
STFIF, which was regulated under both the CMA and the Commission de Surveillance du Secteur Financier (CSSF) of Luxembourg, closed its first offering of subscription in September 2012 and have since approved investments in various transactions for its current assets under management………………………………………..Full Article: Source

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Call for harmonised Islamic financial reporting

Posted on 06 December 2012 by Laxman  |  Email|Print

A new report by the Association of Chartered Certified Accountants (ACCA) and KPMG has called for standard setters and Islamic banks to work together to harmonise financial reporting. ACCA said the rapid global growth in Islamic finance meant that it must be reported in a way that was harmonised and more consistent.
“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,” it said in a statement………………………………………..Full Article: Source

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AAOIFI is eyeing new reporting standards

Posted on 06 December 2012 by Laxman  |  Email|Print

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) is actively looking at revision of existing standards and to introduce new ones to keep abreast of the challenging requirements of industry in financial reporting.
“In 2012, AAOIFI issued a new standard for investment in real estate which will be effective from January 1,” KPMG Islamic Financial Services partner Mahesh Balasubramanian said………………………………………..Full Article: Source

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Standardisation of accounting, auditing, risk management is key focus of AAOIFI World Bank conference in Bahrain, said AAOIFI Secretary Gen. Dr Fakih

Posted on 06 December 2012 by Laxman  |  Email|Print

The focus of the two – day Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) World Bank Annual Conference in Bahrain was on the standardization of Shari’a, accounting, auditing, governance, ethics and risk management for Islamic finance, said Dr Khaled Al Fakih, AAOIFI Secretary General on the sidelines of the AAOIFI World Bank Annual Conference in Bahrain.
In an exclusive to Bahrain News Agency, he said that there were six sessions altogether at the conference, with three session covered on day one. The AAOIFI’s primary objectives is on standardization of Islamic finance practices………………………………………..Full Article: Source

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Arab Spring opens a new world for entrepreneurs

Posted on 06 December 2012 by Laxman  |  Email|Print

The Arab Spring has opened a new world with endless possibilities for young entrepreneurs of the region, said former deputy prime minister of Malaysia Tun Musa Hitam. “The younger demographic, especially, has the potential to bear great influence on the future of the world economy and can be harnessed through increased understanding of these opportunities which will boost investor confidence and resources they put into tapping this market,” Musa said.
It is estimated that Muslims have spent $2.1 trillion on the halal economy, $500-600 billion on food and halal related products………………………………………..Full Article: Source

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Malaysia to expand Islamic finance (Video)

Posted on 06 December 2012 by Laxman  |  Email|Print

The Islamic finance industry is estimated to be worth $1.3tn and growing at an average of 20% a year. Malaysia is one of the leaders in in the industry because the government and banks work closely together.
But expanding Islamic finance beyond its borders is proving difficult………………………………………..Full Article: Source

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Choice of law in shariah-compliant transactions

Posted on 06 December 2012 by Laxman  |  Email|Print

From a shariah perspective, it is necessary that any dispute under a shariah-compliant contract must be resolved in accordance with the principles of shariah which govern the relevant shariah-nominate contract.
This principle has been reiterated by International Fiqh Academy in its resolution on the subject of governing law for shariah-compliant transactions. Despite the resolution and the importance of the governing law for shariah-compliant transactions, the matter has not received any significant attention from stakeholders……………………………………….Full Article: Source

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Malaysian Islamic finance university eyes MENA growth

Posted on 06 December 2012 by Laxman  |  Email|Print

Growing demand for executive programs are prompting the Islamic finance industry’s only dedicated university to expand into the Middle East and North Africa, the chief executive of the Malaysian institution said.
Kuala-Lumpur based International Centre for Education in Islamic Finance (INCEIF), set up in 2005 by the Malaysian central bank, plans to offer its programmes across several Arab Spring countries where Islamist parties have come into power………………………………………..Full Article: Source

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Jordan’s Islamic sector continues to expand

Posted on 06 December 2012 by Laxman  |  Email|Print

Jordan’s Islamic banking assets has grown at an annual rate of 13% and now accounts for 5% of the country’s total banking assets, though Islamic insurers have been more sluggish in their performance, according to a recent KFH-Research report on the Kingdom’s Islamic finance sector.
The report said that Islamic banks have outperformed conventional banks in the growth of deposits and financing, reflecting a strong demand for Islamic transactions. On the contrary, the report noted that takaful companies haven’t been performing as well, but things are expected to improve after recently receiving government backing for the growth of takaful in Jordan………………………………………..Full Article: Source

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Global Islamic banking market to exceed $2.6 trillion by 2017

Posted on 06 December 2012 by Laxman  |  Email|Print

It has been reported that the UHNW Islamic Banking Clients: A Growing Community, the report examines the current state of UHNW Islamic banking client population–complete with combined net worth– and provides a growth forecast of Islamic banking in traditional and non-traditional markets.
The report also gives an inside look into the profile of an average UHNW Islamic banking client in Southeast Asia and the Middle East and provides an outlook for professionals and Islamic banking institutions………………………………………..Full Article: Source

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Noor Islamic Bank launches ‘Business Instalment Finance’ for small business entities

Posted on 06 December 2012 by Laxman  |  Email|Print

Noor Islamic Bank (Noor), a leading Islamic bank in the UAE, has announced the launch of its new product “Business Instalment Finance” package that will cater to the financial requirements of small businesses.
Small businesses that share an existing relationship with Noor Islamic Bank, can access loans at very competitive profit rates. The package includes fixed-term financing of up to Dhs750,000 for 48 months, with minimal documentation and processing time. (Press Release)

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Khaleeji Commercial Bank provides financing to SMEs in partnership with Tamkeen

Posted on 06 December 2012 by Laxman  |  Email|Print

Khaleeji Commercial Bank (KHCB), one of the prominent Bahrain-based Islamic banks, has announced its launch of its new financing scheme for small and medium enterprises (SMEs) to enhance productivity and growth in the market to achieve economic development in Bahrain.
Silvan Varghese, Chief Operating Officer and Acting CEO, commented: “One of KHCB’s most vital objectives is to have a positive contribution to Bahrain’s economic development, and by providing a financing solution to SMEs and have an immense impact on Bahrain’s advancement. Tamkeen, being one of the national reforms and part of Bahrain Vision 2030, is tasked to support the development of Bahrain. We would like to thank Tamkeen’s collaboration with us in making this project available in the market, and become a provider to Bahrain’s economic growth.” (Press Release)

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A.M. Best assigns ratings to Boubyan Takaful Insurance Company K.S.C. (Closed)

Posted on 06 December 2012 by Laxman  |  Email|Print

A.M. Best Europe – Rating Services Limited has assigned a financial strength rating of C++ (Marginal) and an issuer credit rating of “b” to Boubyan Takaful Insurance Company K.S.C. (Closed) (BTIC) (Kuwait). The outlook assigned to both ratings is positive.
The ratings of BTIC reflect its strong risk-adjusted capitalisation on a consolidated basis (shareholders’ and policyholders’ funds), sound, yet somewhat untested, distribution lines through its shareholders and the efforts currently being made by management to introduce best practices throughout the firm. (Press Release)

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Islamic finance to surpass trillion-dollar mark in 2012: Tharman

Posted on 05 December 2012 by Laxman  |  Email|Print

Islamic finance is poised to expand over the next 10 to 15 years after surpassing the trillion-dollar mark in 2012, said Minister for Finance Tharman Shanmugaratnam at the World Islamic Economic Forum in Johor Bahru, Malaysia.
Mr Tharman, who is also Singapore’s Deputy Prime Minister, said that he was optimistic about the potential for the sector after it chalked up growth of about 19 per cent a year since 2006. This has lifted total Shariah-compliant assets to nearly US$1.3 trillion in 2012………………………………………..Full Article: Source

Islamic finance can be further develop, says Najib

Posted on 05 December 2012 by Laxman  |  Email|Print

The Islamic finance, which continues to gain recognition from outside the Muslim world, has tremendous potential to be developed further, Prime Minister Datuk Seri Najib Tun Razak said Tuesday.
He said Islamic finance was more reflective of the real economy, less speculative, provides a long-term partnership and stability and was a good source of financing………………………………………..Full Article: Source

Islamic finance to grow significantly in 10-15 years: Singapore DPM

Posted on 05 December 2012 by Laxman  |  Email|Print

Islamic Finance is set to offer significant opportunities for growth and diversification in the next 10 to 15 years, says Singapore Deputy Prime Minister and Minister for Finance, Tharman Shanmugaratnam.
Shanmugaratnam, who is Minister for Finance, said he is optimistic about its prospects firstly because Islamic financial institutions have in the main escaped significant damage in the global financial crisis………………………………………..Full Article: Source

MAS chairman says Islamic finance can exploit post-crisis landscape

Posted on 05 December 2012 by Laxman  |  Email|Print

Tharman Shanmugaratnam suggests weakness and deleveraging in conventional banking systems gives Islamic finance an opportunity to expand. Islamic finance is well-placed to grow and diversify, Tharman Shanmugaratnam, the chairman of the Monetary Authority of Singapore, said.
Despite estimated annual growth of 19% a year since 2006 there was still “considerable scope” for the industry to grow, Shanmugaratnam said, as conventional banks deleverage, trade rebalances towards Asia, and consumers look for “back-to-basics” finance………………………………………..Full Article: Source

Brunei: Islamic financing ‘very feasible’ model for project funding

Posted on 05 December 2012 by Laxman  |  Email|Print

Islamic financing is a “very feasible” model for funding major projects and will benefit Brunei’s economy. Shazali Sulaiman, a local partner at KPMG (a global network of professional firms specialising in financial services), and a speaker at yesterday’s Islamic Finance News (IFN) Roadshow at the Empire Hotel and Country Club, said Islamic syariah-compliant financing for major projects would be good news for Brunei.
“It will benefit Brunei because we are using local banks and international banks, which are working together to come up with the structure of the financing, and that will help develop a more established Islamic capital market in Brunei later on,” Sulaiman said………………………………………..Full Article: Source

Indonesia’s pious Muslims boost Islamic finance

Posted on 05 December 2012 by Laxman  |  Email|Print

Indonesia is the world’s most populous Muslim nation, with close to 90% of the 250 million population Muslim. Although the country is secular, Islam plays a big role in daily life. Analysts say over the last few years there has been a marked increase in the piety of Indonesian Muslims.
This has been reflected, they say, in the way people dress, how much more regularly they go to the mosque - even in the way they choose to bank. This increased piousness has led to a demand for the services of Islamic or Sharia banks in Indonesia……………………………………….Full Article: Source

Liquidity management critical for Islamic financial institutions

Posted on 05 December 2012 by Laxman  |  Email|Print

Liquidity management is a critical area for both conventional and Islamic financial institutions. The importance of liquidity management has been further highlighted through lessons from the recent global financial crisis, including that all financial institutions must not over-rely on leveraging, said the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) secretary general and chief executive Dr Khaled Al Fakih.
He went on to outline Islamic finance mechanisms which, he said, “…can be used by Islamic financial institutions to obtain liquidity from their investment account holders and depositors, including current account holders, and to mobilise such liquidity for financing and investment………………………………………..Full Article: Source

Malaysia: Islamic finance must include lower income groups for more balanced growth: Zeti

Posted on 05 December 2012 by Laxman  |  Email|Print

It has been reported that Islamic finance must be inclusive and accessible to all particularly the lower income groups and small businesses so as to achieve a more balanced global economic growth with reduced income disparities, Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Azizsaid.
To this end, she said Islamic financial institutions must strive to enhance the access of their financial services to all segments of society by meeting the demand for more Islamic microfinance products………………………………………..Full Article: Source

Manulife sees records as Indonesia cuts sales: Islamic finance

Posted on 05 December 2012 by Laxman  |  Email|Print

Indonesia’s decision to cut sukuk sales as much as 12 percent in 2013 will extend the decline in rupiah yields from a record-low, according to Manulife Asset Management Indonesia and CIMB-Principal Asset Management.
The finance ministry will offer less than the Rp 57.1 trillion ($5.9 billion) of Shariah-compliant bonds sold in 2012 and at least Rp 50 trillion, Dahlan Siamat, Islamic finance director at the debt management office, said………………………………………..Full Article: Source

EFSA finalises new Sukuk law

Posted on 05 December 2012 by Laxman  |  Email|Print

The Egyptian Financial Supervisory Authority (EFSA) has finalised a draft law to regulate Shari’a compliant debt tools (sukuk); the proposed law includes 30 articles setting a legal framework for the issuance and transaction of sukuk.
The law aims to expand the scope of activities that sukuk can finance and allow the issuance of business sukuk, whose holder agrees to contribute to the capital of the partnership in equal or varying amounts to establish a new project or share in an existing one, the holder is then considered as partner, not creditor………………………………………..Full Article: Source

Saudi Arabia’s NCB Capital plans Islamic equity and sukuk funds

Posted on 05 December 2012 by Laxman  |  Email|Print

NCB Capital, Saudi Arabia’s largest asset manager, is launching a range of Irish-domiciled Islamic mutual funds, as it seeks to broaden its investor base and appeal to emerging market investors, according to senior executives.
The Jeddah-based firm, which manages $12.1 billion in assets, has launched two funds which invest in Saudi Arabian and GCC (Gulf Cooperation Council) equities, with plans to launch other funds including one that will invest in sukuk, or Islamic bonds………………………………………..Full Article: Source

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