Islamic Finance Briefing - Archive | February, 2013
Posted on 25 February 2013 by Laxman | Email|Print
The National Bank for Development (NBD) announced on that it has signed on to finance US$110 million in improvements for the East Delta Electricity Company, which will be the first public project financed according to principles of Islamic Sharia, according to a bank statement.
The financing will go towards parts replacements in the Shabab and Damietta stations run by the East Delta Electricity Production Company. These improvements, according to the bank, will help increase the capacity of the national electrical grid………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
The Bank of Punjab is set to achieve another milestone when it launches Islamic banking in its operations. Apart from shoring up tangible support for the bank in the last four years, the Chief Minister also engendered an environment in the bank that ensured zero tolerance for corruption and eliminated government interference in the bank’s affairs. The Chief Minister Punjab has thus been principally responsible for restoring bank’s trust and goodwill amongst its customers.
In such an environment, backed by prudent financial management through a team of committed professionals the bank has grown from strength to strength during this time leading to Growth in deposits from Rs.164billion to Rs.266 billion………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
The Summit Bank has planned to step in Islamic banking network with the launch of Noor Bank in the next few months, which is aimed at cashing in on the opportunities in commercial and domestic sectors with various Sharia-based products and services.
Summit Bank President and CEO Hussain Lawai on Saturday told Daily Times an interest-free and commercial bank is being planned to open countrywide with an exclusive banking model which caters exclusively to the business needs of Small and Medium Enterprises (SMEs) of the country………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Qatar Islamic Bank (QIB) has charted out a five-year global investments strategy to help anchor the Bank’s position as an Islamic financial institution of international stature. Presenting the Bank’s 2012 financial results at the ordinary general assembly here yesterday the Bank Chairman Sheikh Jassim bin Hamad bin Jassim bin Jabor Al Thani noted the bank’s international sector has crafted, in collaboration with specialised consultants, a five-year strategic vision for its global investments.
This will strengthen international Islamic banking and position of QIB as an Islamic financial institution of global stature. The Bank has registered substantial progress in restructuring of some of its affiliate and sister companies such as the Arab Finance House and QIB UK, he noted………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
The Gulf Finance House (GFH) announced its financial results for the fiscal year 2012. The bank posted a net profit of $10.03 million compared to $0.38 million in 2011.
The bank’s profitability in 2012 was the result of strong shareholder support, investor loyalty and a dedicated management team committed to seeing through the significant restructuring and income from profitable investments. Operating profit before provisions were $20.43 million when compared to $ 8.5 million in 2011 an increase of 140%. (Press Release)
Posted on 25 February 2013 by Laxman | Email|Print
The Qatar sovereign has ratings of Aa2 from Moody’s and AA from S&P, and was in the bond market last summer with a $4 billion sukuk issue.
The fund, which has stakes in Credit Suisse, Porsche, Harrods and Xstrata among others, will apply for a rating from both Moody’s and Standard & Poor’s. “I can confirm that Qatar Holding will be seeking a credit rating this year,” a spokesperson for the fund told IFR late on Thursday………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
With strong performance seen in 2012 and an optimistic outlook on the horizon for 2013, Malaysia will continue to dominate the global sukuk market with various issuances to mainly fund infrastructure development within the country.
Besides the PLUS issuance, RAM Ratings Services Bhd (RAM) in a special report on the subject said regular issues were made by the Malaysian government and central bank, amounting to a total of US$63 billion. “Overall, Malaysia issued US$97.1 billion of sukuk last year, accounting for 69.7 per cent of the total,” it said. “As with the global scene, Malaysian sukuk issuances have hit a record high………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
The government plans to issue its first sukuk in 2013 to fund energy and mega projects in Egypt, said Dr El-Morsy Hegazy, Minister of Finance at the 7th International Takaful Summit (ITS) in Cairo on Monday. The minister also announced that the sukuk law is in its final stages of being issued as the draft law will be proposed to the Prime Minister within this week before being submitted to the Parliament for approval.
Dr Hegazy says the government is keen to support the financial sector by introducing Shariah-compliant financial tools including sukuk and takaful to expand the range of alternatives for investors. He says these tools will not be developed at the expense of traditional financial products as each has its role………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
A new type of sukuk, introduced by a British unit of a Kuwaiti firm, could make inroads in the market by offering greater security to investors through a structure similar to conventional covered bonds. Providing recourse to a pool of assets if the originator becomes insolvent, covered bonds found a new lease of life in Europe and the United States during the global financial crisis as investors sought liquid and safe investments.
The structure could now play a role in Islamic finance, if tax and pricing issues can be resolved to the satisfaction of investors. It was used for the first time by London-based Gatehouse Bank, a subsidiary of Kuwaiti firm Securities House , through a private placement in December 2012………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
In order to consolidate Hong Kong’s position as an international financial centre and tap the fast growing market of Islamic finance, the HKSAR Government indicated in the 2009/10 Hong Kong Budget that it would work on improving Hong Kong’s regime to facilitate the development of Islamic finance in Hong Kong.
In March 2012, the HKSAR Government launched a two-month public consultation on the proposed legislative amendments to facilitate the development of the Islamic bonds (i.e. sukuk) market in Hong Kong………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Qatar Insurance Company (QIC), which is strengthening its operations both within the country and overseas, has received approval from the Ministry of Business and Trade to garner as much as QR963mn through a rights issue.
The company, which is the dominant player in the domestic sector, is offering 21.41mn shares at QR45 a share (including a premium of QR35 a piece). The rights issue will be on tap for a fortnight from March 4, 2013………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Takaful has been a haven for many Muslims around the world who consider conventional insurance policies to be haram, or religiously forbidden. Takaful, or Islamic insurance, is one Islamic financial instrument that has been growing robustly as a Sharia-compliant alternative to conventional insurance policies.
Takaful premiums amounted to $12 billion in 2012 globally, with annual growth ranging from 20 to 25 per cent, which is one of the highest growth rates in the financial world, according to Al-Morsi Hegazi, the Egyptian finance minister………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Saudi Arabia issued final regulations on real-estate financing, leasing and supervision of financial companies as the kingdom works to ease a housing shortage by opening up its mortgage market and enacting the country’s first home-loans law.
The regulations outlining three of the five laws that make up the package of changes were posted today on the website of the Saudi Arabian Monetary Agency. Rules on the enforcement of foreclosures and mortgage registrations have yet to be completed………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Tunisia plans to provide Islamic financing to small and medium-sized enterprises via a tie-up between the public and private sectors, which could serve as a model for other Arab states trying to repair their economies after political turmoil.
The Tunis-based Bank of Financing Small and Medium Enterprises has agreed with the Jeddah-based Islamic Corporation for the Development of the Private Sector (ICD), a private investment arm of the Islamic Development Bank, to aid smaller companies in Tunisia………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
KPMG has been named ‘Best Islamic Assurance and Advisory Services Provider’ in the 2012 Euromoney Islamic finance awards. This marks the sixth consecutive year KPMG has taken the top prize, which is unequalled in the assurance and advisory category.
Now in their eleventh year, the awards are widely regarded as the benchmark awards for the global Islamic finance industry. Euromoney again highlighted KPMG’s active role in promoting and supporting the development of the Islamic finance industry around the world………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Islamic finance follows the rules of Shariah, or Islamic law. The Islamic legal code is drawn from the Koran and the sayings of the Prophet Muhammad. It advises on everything from dietary laws to penalties for theft.
Common Shariah terms relevant to finance include the following: Riba: The charging of interest in any form regardless of the rate is forbidden by the Koran………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
The “Muslim travellers” is an important segment in the travel industry, however, not many hotel chains or destinations haven taken a serious look at their needs. So, many travellers have to manage their requirements while travelling or stick to familiar holiday destinations.
Now the media is full of reports on Muslim Travel market, as there are a host of destinations, hotel chains, tour operators etc., all targeting the billions of dollars of these travellers. One company stands out for driving this change of attitude by the global travel industry. Crescentrating, the Singapore startup, coined the term “Halal friendly travel” back in 2008, and launched a dedicated rating system to rate travel services and a travel portal. In hindsight, a bold move seen as a pivotal event in facilitating the development of the ignored Muslim consumer segment………………………………………..Full Article: Source
Posted on 22 February 2013 by Laxman | Email|Print
A new type of sukuk, introduced by a British unit of a Kuwaiti firm, could make inroads in the market by offering greater security to investors through a structure similar to conventional covered bonds. Providing recourse to a pool of assets if the originator becomes insolvent, covered bonds found a new lease of life in Europe and the United States during the global financial crisis as investors sought liquid and safe investments.
The structure could now play a role in Islamic finance, if tax and pricing issues can be resolved to the satisfaction of investors. It was used for the first time by London-based Gatehouse Bank, a subsidiary of Kuwaiti firm Securities House, through a private placement in December………………………………….Full Article: Source
Posted on 22 February 2013 by Laxman | Email|Print
Indonesia failed to reach its sukuk auction target for the first time since October as buyers sought higher yields to compensate for accelerating inflation. The finance ministry sold Rp 1.05 trillion ($108 million) of five- and 24-year Islamic bonds on Feb. 19, short of its Rp 1.5 trillion goal, it said in a statement.
Investors asked for rates as high as 6 percent on the five-year notes that are yielding 5.16 percent in the secondary market. Borrowing costs on Indonesia’s 10.25 percent sukuk due 2030 have risen 14 basis points to 6.38 percent in 2013………………………………….Full Article: Source
Posted on 22 February 2013 by Laxman | Email|Print
The Cabinet, under Prime Minister Hisham Qandil, stressed that the now-debated Sukuk (Sharia-compliant bonds) is not an alternative to the other financing tools.
The final blueprint of the Sukuk bill will be presented to the Cabinet next Wednesday 27/2/2013 after taking into consideration all remarks made by al-Azhar, the Central Bank of Egypt and investment associations. If approved, it will be referred to the Shura Council for endorsement on the same day………………………………….Full Article: Source
Posted on 22 February 2013 by Laxman | Email|Print
Egypt legislative is preparing a new law for issuance of Islamic Bonds hailed as an important financial instrument that should attract investment funds to take Egypt well out of its long-standing economic crisis.
Hussein Ibrahim, Freedom and Justice Party (FJP) Secretary-General, said “The Islamic Bonds law – being prepared in cooperation with the Nour Party, Watan Party and many other political parties and economic authorities – is the real beginning of serious attempts to attract huge investments that should contribute to the establishment of a genuine renaissance, as a good alternative to loans………………………………….Full Article: Source
Posted on 22 February 2013 by Laxman | Email|Print
Barwa Bank, the Qatari lender that became one of the top 10 underwriters of Gulf Islamic bonds within three years of opening, plans to seek a credit rating in the second half before a possible sukuk sale.
Qatar’s smallest Islamic bank helped issuers including the Qatar, Dubai and Turkish governments sell sukuk last year, as sales in the region tripled, according to the lender’s data. Barwa Bank arranged $863mn of notes in 2012, just behind QInvest, a unit of Qatar Islamic Bank, the nation’s biggest Shariah-compliant lender by assets, data compiled by Bloomberg show. That made it the eighth-biggest underwriter out of 25 for Gulf Co-operation Council sukuk………………………………….Full Article: Source
Posted on 22 February 2013 by Laxman | Email|Print
UMW Holdings Bhd is looking at oil and gas (O&G) acquisitions following the finalisation of its RM2bil sukuk musharakah facility. Sources told Starbiz that the money to be raised from the sukuk issuance could be used to target potential “bolt-on acquisitions” that would complement its core O&G operations.
The sources added that the previously delayed initial public offering of UMW’s O&G unit would definitely take place this year, as the division has been readied for it and is showing the right kind of earnings………………………………….Full Article: Source
Posted on 22 February 2013 by Laxman | Email|Print
Regulatory reforms are underway to help Malaysia’s Islamic banking industry expand further, but for government plans to succeed, they will need to be matched by action from some reluctant banks. The government originally aimed for 20 per cent market share for Islamic banks by 2010, but despite double-digit growth in both lending and assets, the sector has fallen shy of this mark.
Islamic banks have added RM111.6 billion in assets over the past two years, bringing their share of total banking assets in Malaysia to 19.6 per cent in December 2012, central bank data shows. Their share of loan business crossed the 20 per cent mark in January 2012, reaching 21.3 per cent last December………………………………….Full Article: Source
Posted on 22 February 2013 by Laxman | Email|Print
Scotland has the opportunity to become a global “ethical finance hub”, says the expert panel convened in Edinburgh by law firm Tods Murray and the Islamic Finance Council UK. The IFC Ethical Finance Round Table, which has attracted senior representatives from government, financial services, academia and the voluntary sector, aims to “bring together Islamic and ethical banking as the bedrock to a systemically stable and prudent banking sector”.
Islamic finance seeks to avoid the payment of interest on loans, preferring partnership, profit and risk sharing, and it also shuns certain types of investment………………………………….Full Article: Source
Posted on 22 February 2013 by Laxman | Email|Print
Malayan Banking Bhd (Maybank) reported a 15.9% increase in its earnings to RM1.459bil in the fourth quarter ended Dec 31, 2012 from RM1.259bil a year ago. It said on Thursday the board of directors proposed a final dividend of 18 sen per share and 15 sen single-tier dividend for the 8.44 billion shares, amounting to a net dividend payable of RM2.405bil.
For Q4, 2012, Maybank’s revenue increased by 4.3% to RM7.027bil from RM6.737bil while earnings per share were 17.19 sen compared with 16.72 sen………………………………….Full Article: Source
Posted on 22 February 2013 by Laxman | Email|Print
When Ahli United Bank, Bahrain’s largest lender by market value, announced this week a rise in profits for 2012, it was more than good news for the bank alone. It was a sign that the island kingdom is surviving as a regional financial center.
Two years after pro-democracy protesters inspired by the Arab Spring uprisings blockaded Bahrain’s financial district, political tensions still weigh on its banking industry. This is deterring some investment and inflows of money, and making it harder for Bahrain to compete with other centers such as Dubai………………………………….Full Article: Source
Posted on 22 February 2013 by Laxman | Email|Print
Bank Muscat board has cleared an equity investment worth OMR75.1 million from the International Finance Corporation (IFC) and IFC Capitalisation Fund on private placement basis. The move will enhance the capital base of the biggest Omani bank.
The bank also raised OMR96.7 million rials of fresh capital from existing shareholders in July last year to fund its Islamic finance business through a rights issue. Bank Muscat is anticipating a credit growth in the region of 14-15 per cent this year, thanks to high government spending, a substantial growth in number of Omanis entering the workforce and an increase in minimum salary of Omani workers………………………………….Full Article: Source
Posted on 22 February 2013 by Laxman | Email|Print
Al Baraka Banking Group (ABG) achieved a net income of $235 million last year, a noticeable increase of 11 per cent on what it achieved in 2011. Total assets also increased by 11pc, total financing and investments by 21pc, deposits including equity of investment account-holders by 12pc and total equity by 9pc.
“This was not possible without the strong financial means, human resources and technical capabilities possessed by the group, as well as its commitment to the Islamic banking model that impose the hard work for the reconstruction of the societies and serve the communities in which it operates,” said chairman Shaikh Saleh Abdullah Kamel………………………………….Full Article: Source
Posted on 22 February 2013 by Laxman | Email|Print
A major insurance company based in the Middle East intends to expand its reinsurance operations into Bermuda. Qatar Insurance Company has embarked on a five-year plan, which includes setting up operations for its reinsurance arm in Bermuda and Zurich.
The company intends to open these new Q-Re operations before the end of the year. Eonomic Development Minister Grant Gibbons said yesterday: “We are pleased to see a leading Gulf-Region insurer increasing its presence in Bermuda and bringing top quality capital to our island.”…………………………………Full Article: Source
Posted on 22 February 2013 by Laxman | Email|Print
Takaful Ikhlas Sdn Bhd’s new health product introduced in September 2012, ChoicePlus, has registered a contribution of RM12.16 million involving 57 companies and has covered 21,000 lives. ChoicePlus is a medical aid card targeting all employers in Malaysia for the purpose of looking after their employees’ health and welfare.
Is President and Chief Executive Officer, Ab Latiff Abu Bakar, said the company targets an annual contribution of RM66.5 million from ChoicePlus with the participation of more than 70,000 members and 200 companies………………………………….Full Article: Source
Posted on 21 February 2013 by Laxman | Email|Print
Dubai is aiming to become a global capital of the Islamic economy. But, while a great deal of Islamic finance business is done in Dubai and the wider UAE, the industry is very much in its infancy and needs to look to partners in other financial centres to help it to develop.
Malaysia and Indonesia are the obvious world leaders in the field and are already working closely with the growing number of Islamic institutions that have set up in the UAE………………………………….Full Article: Source
Posted on 21 February 2013 by Laxman | Email|Print
The Qatar Financial Centre (QFC) has the most Islamic finance friendly tax systems out of eight countries in the MENA region, reviewed in a study conducted by three leading experts, Mohammed Amin, Salah Gueydi and Hafiz Choudhury, and sponsored by Qatar Financial Centre Authority in partnership with the International Tax and Investment Center, based in Washington DC.
The study, Cross Border Taxation of Islamic Finance in the MENA region - Phase One, shows that while simpler Islamic finance transactions can be carried out in some countries without prohibitive tax costs, of the countries reviewed only Turkey and the QFC have a tax system that enables sukuk transactions to be carried out without excessive tax costs………………………………….Full Article: Source
Posted on 21 February 2013 by Laxman | Email|Print
A new study into the cross border tax burden on Islamic finance transactions in the Middle East and North Africa region, relative to the tax burden placed on conventional finance, underscores the importance of regional tax legislative changes to equalize the tax treatment of shariah-compliant financial options.
The study reviewed the tax treatment of four common Islamic finance structures, commodity murabaha, sukuk, salaam and istisna in eight MENA region countries: Egypt, Jordan, Kuwait, Libya, Oman, Qatar, Saudi Arabia, Turkey and also in the Qatar Financial Centre………………………………….Full Article: Source
Posted on 21 February 2013 by Laxman | Email|Print
The growth potential for Bangladesh’s Islamic finance industry is enormous, and coupled with a steadily growing economy and financial reforms. With support from the Bangladesh government, financial regulators and the central bank, Bangladesh can be poised to become the next hub for Islamic finance in Asia and on a global scale, the world Islamic scholars opined in the International Islamic Finance Roadshow held recently in Bangladesh.
In the roadshow, the panelists discussed on various issues on Islamic Finance such as Challenges & Opportunities in Bangladesh’s Islamic Finance Sector, Possibilities and Opportunities for Diversification of Islamic Products, Facilitating Shariah Compliant Investment Flows in Bangladesh and South Asia through innovative products, structures and channels, crucial steps to take Bangladesh’s Islamic Finance to the Next Level etc………………………………….Full Article: Source
Posted on 21 February 2013 by Laxman | Email|Print
The government must move quickly to shore up public confidence in the Islamic Bank of Thailand following deposit runs at the state-controlled bank due to worries about its financial stability. The bank reported some 5 billion baht worth of withdrawals over the past two weeks following reports of its weakening financial status.
Samart Maluleem, a Democrat MP for Bangkok and head of the House committee for border affairs, and Prawat Uttamote, a Pheu Thai party list MP and deputy chairman of the border affairs committee, both called on the government to move quickly to reassure the public the bank would have full government support………………………………….Full Article: Source
Posted on 21 February 2013 by Laxman | Email|Print
Bank Muscat agreed on an equity investment worth OMR75.1 (US$195.1m) from the International Finance Corp, it said on Wednesday, a move which will bolster the capital base of Oman’s largest lender.
The World Bank unit will buy into the bank through a private share placement which will represent 5.28 percent of Bank Muscat’s capital following the investment, a statement to the Oman stock exchange said………………………………….Full Article: Source
Posted on 21 February 2013 by Laxman | Email|Print
When Ahli United Bank, Bahrain’s largest lender by market value, announced this week a rise in profits for 2012, it was more than good news for the bank alone. It was a sign that the island kingdom is surviving as a regional financial centre.
Two years after pro-democracy protesters inspired by the Arab Spring uprisings blockaded Bahrain’s financial district, political tensions still weigh on its banking industry. This is deterring some investment and inflows of money, and making it harder for Bahrain to compete with other centres such as Dubai………………………………….Full Article: Source
Posted on 21 February 2013 by Laxman | Email|Print
The long history of Islamic banking has gotten remarkable embellishments in the recent years. With the industry touting a global size of $1.35 trillion in 2012; the growth engines are yet to gun, with experts predicting the industry to attain a size of $4 trillion by 2015.
Islamic banking assets have grown by 33 percent since 2010 - twice as fast as the conventional banking assets and in the wake of widespread developments ongoing in the Islamic banking industry (IBI), the gap between the conventional banking and its ethical spin - Islamic banking is narrowing substantially, with every passing moment………………………………….Full Article: Source
Posted on 21 February 2013 by Laxman | Email|Print
The Bahrain based leading Islamic banking group, Al Baraka Banking Group B.S.C. (ABG) announced that it has achieved a net income of $235m in 2012, a noticeable increase of 11% on the income achieved in 2011.
Similarly, statement of financial position items witnessed good increases. Total assets increased by 11%, total financing and investments by 21%, deposits including equity of investment account-holders by 12% and total equity be 9% at the end of December 2012 in comparison with the end of December 2011………………………………….Full Article: Source
Posted on 21 February 2013 by Laxman | Email|Print
The senior management of Sohar Islamic, the stand alone, independent Islamic window within Bank Sohar held its first Shariah Supervisory Board (SSB) meeting, chaired by Dr. Hussain Hamed Hassan, and attended by the other SSB members.
The SSB of Sohar Islamic comprises of leading Islamic scholars from Islamic finance and academic sectors from across the world: Dr Hussain Hamed Hassan, Dr Ajeel Jasem Saud Al Nishmi, Dr Mudassar Siddiqui and Sheikh Azzan bin Nasir Farfoor Al Amri. The meeting was hosted by Dr Mohammad Abdulaziz Kalmoor, CEO of Bank Sohar and was also attended by Sharia consultant, Dar Al Sharia. (Press Release)
Posted on 21 February 2013 by Laxman | Email|Print
The government raised about Rp 1.05 trillion (US$108 million) from the sales of Islamic bonds (sukuk) on Tuesday, lower than its initial target of Rp 1.5 trillion, as investors held back from entering the sharia bonds market on fears that the recent depreciation of rupiah may spark inflation.
Total incoming bids for the sukuk topped Rp 2.26 trillion, far lower than the Rp 4.1 trillion that the Finance Ministry’s debt management office received during the last sukuk auction on Feb. 5. …………………………………Full Article: Source
Posted on 21 February 2013 by Laxman | Email|Print
As per a study recently conducted by Thompson Reuters, which included all issuers and investors of Islamic Sukuk, the Sultanate of Oman came No. 1 as a preferred destination for attracting investments and issuance of Sukuk, ahead of countries, such as Egypt, Kazakhstan, Tunisia and Libya.
The Capital Market Authority (CMA) will host next Sunday “Oman Position in Islamic Banking Forum’ organized by Thompson Reuters. The organization of this forum comes within the Sultanate’s interest in the sector after the recent introduction of Islamic banking and allowing the establishment of Islamic banks………………………………….Full Article: Source
Posted on 21 February 2013 by Laxman | Email|Print
Oman United Insurance Co is planning to launch takaful operations and its board of directors has agreed in principal to incorporate a company to handle Sharia-compliant insurance products.
“The board of directors has agreed in principle to incorporate a takaful insurance company and suggested to discuss this in the annual general ordinary meeting scheduled on March 28, 2013 for consideration and approval,” the company said in a disclosure to the Muscat Securities Market on Tuesday………………………………….Full Article: Source
Posted on 21 February 2013 by Laxman | Email|Print
Al Khaleej Takaful Insurance and Reinsurance’s net profit for fiscal year ending December 31, 2012 is up to QR78.2 million, an increase by 23.34 percent over QR63.4 million achieved in 2011.
The company’s Earnings Per Share (EPS) this year are QR5.50 compared to QR4.46 in 2011, according to Qatar Exchange notification Wednesday………………………………….Full Article: Source
Posted on 21 February 2013 by Laxman | Email|Print
Takaful prospects for the African market has huge potential but also posed challenges which must be faced and met by the takaful industry if it is to get a foothold on the continent. Some of the challenges included the lack of public awareness about the takaful industry, as well as the lack of available financial infrastructure necessary for the industry to truly kick off in Africa.
Managing Director of Africa Retakaful Omar Gouda said that the industry needs to provide solutions through a variety of means that people trust and understand. “The products that we are supplying, the distribution channels we are employing, and the rules and regulations we adhere to, must all be understood clearly by everyone,” he said………………………………….Full Article: Source
Posted on 20 February 2013 by Laxman | Email|Print
Dubai Electricity & Water Authority plans to raise as much as $1 billion from the sale of Islamic bonds this month to refinance debt maturing in June, Chief Executive Officer Saeed Al Tayer said.
The state-owned utility, known as Dewa, mandated Royal Bank of Scotland Group Plc, Citigroup Inc., Standard Chartered Plc, Abu Dhabi Islamic Bank PJSC, Emirates NBD Capital Ltd. and Dubai Islamic Bank PJSC, to help manage the sale, Al Tayer said. Meetings with potential investors will be held in London and Asia next week, he said…………………………………….Full Article: Source
Posted on 20 February 2013 by Laxman | Email|Print
Indonesia’s finance ministry raised 1.05 trillion rupiah ($108.47 million) of sharia bonds at an auction on Tuesday, lower than a target of 1.5 trillion rupiah. The government sold project-based sukuk maturing in five and 24 years, with total incoming bids of 2.264 trillion rupiah.
Yields were little changed from the previous auction earlier this month.. The highest bid-to-cover ratio was 1.98 for its five-year project-based sukuk…………………………………….Full Article: Source
Posted on 20 February 2013 by Laxman | Email|Print
Shareholders of Dana Gas , the Abu Dhabi-listed energy firm, will vote on March 14 to approve a restructuring plan for its US$920m sukuk after failing to meet maturity of the Islamic bond last year.
Dana became the first company in UAE to miss repayment of a maturing bond on October 31 but agreed new terms with a creditor committee representing bondholders, which included investment firms Ashmore Group and BlackRock, a week later…………………………………….Full Article: Source
Posted on 20 February 2013 by Laxman | Email|Print
The new Sukuk law will be approved on Wednesday by the cabinet before being referred to the Shura Council on the same day, said Ahmed El-Najjar, member of the economic committee at the Freedom and Justice Party (FJP) and advisor to the minister of finance.
“The new law is entirely different from the previous one,” he said. “It will not be called an ‘Islamic sovereign sukuk law’; just ‘sukuk law’.” “This doesn’t mean that it doesn’t respect Islamic legislation,” he continued. “On the contrary, the first article of the law mentions that it is fully Sharia-compliant, and it will have a special [Sharia] committee to oversee its implementation.”……………………………………Full Article: Source
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