From Khaleejtimes.com: Aggregate asset growth of global Islamic banking is poised to slow from 10 to 15 per cent in 2009, signaling a tough year ahead for the sector, Moody’s Investor Services said.

Combined assets of global Islamic financial institutions (IFIs), which are expected to post a growth of 20 to 30 per cent this year, have already shown signs of deceleration….. Full Article: Source

From Dawn: Islamic finance signifies financial services, mechanisms, practices, transactions, and instruments that comply with provisions given in the fundamental Islamic texts. Thus, Islamic finance not only includes banking, but also capital formation, capital markets and all types of financial intermediation.

In recent years, Islamic finance has not only increased in size, but has also become complex as finance professionals compete furiously to produce new shariah-compliant transactions and instruments. Becoming a segment within the global financial market, it has gained considerable interest as an alternative model of financial intermediation…. Full Article: Source

Malaysian sharia lender RHB Islamic Bank Bhd will no longer use a contract rejected as un-Islamic by Middle Eastern scholars, in a bid to adopt globally accepted sharia standards.

RHB Islamic, the sharia banking arm of Malaysia’s fourth-largest lender RHB, has dropped the use of the bai bithaman ajil structure, the Malaysian Reserve said, quoting RHB Islamic’s head of sharia division Ahmad Suhaimi Yahya….. Full Article: Source

From Saudigazette.com.sa: UAE will be able to dodge a severe blow from the global economic crisis as the country is viewed to still maintain fiscal surplus in 2008 and 2009 since it has the lowest break-even oil price in the GCC of $23 (Dh84.48) per barrel against the IMF’s baseline petroleum price projection of $68 per barrel for 2009.

According to IMF estimates, inflation is expected to drop to 10.8 percent next year from 12.9 percent this year, while the current account surplus would reach $55.3 billion against $60.9 billion in 2008….. Full Article: Source

From Ribh.wordpress.com: Once seen as a marginal industry by some, Islamic finance is now recognised as a vital and thriving market. It has been widely acclaimed as the fastest growing sector within the world of finance and positions itself as an alternative model.

Some suggest much of the current problems might have been avoided in an Islamic system (for example, because short selling and derivatives are generally prohibited). Advocates of this view point to the fact that funds adhering to Islamic (Shari’ah) investment principles have so far avoided the worst effects of the credit crisis….. Full Article: Source

From Europenews.dk: Women cannot open a bank account, interests are taboo - the moral laws of the Koran affect the financial markets and even the West cannot and does not want to elude them.

The makers of the financial markets are worried about Muslim savers’ clear conscience for Koran forbids Riba – accumulation of money, and also interests. The banks and borrowers have therefore created special financial products in order to open the the equity market to the faithful….. Full Article: Source

From Njbiz.com: Roma Financial Corp., a banking organization started by a group of Italian-Americans in 1920, is looking to grow by setting up a new program targeting another ethnic group: religious Muslims.

One big challenge is that a Sharia-compliant institution — one that conforms to Islamic principles — cannot charge interest on commercial and residential loans. “The Islamic community in New Jersey is growing, and we believe this is an untapped niche,” said Peter A. Inverso, Roma Financial chief executive officer and a former state senator. …. Full Article: Source

From Tradefinancemagazine.com: Al Tamimi & Company, the largest independent law firm in the Middle East, has announced the opening of its latest office in Riyadh, Saudi Arabia. The firm now has eight offices across the Middle East in Dubai, Abu Dhabi, Sharjah, Qatar, Baghdad and Jordan with 24 partners and over 150 lawyers in total.

Al Tamimi is the only foreign law firm licensed to practice in Saudi Arabia in its own name without a local association….. Full Article: Source

From Gulf-daily-news.com: Turkish officials will travel to Gulf states to attract foreign investment, Prime Minister Tayyip Erdogan said. Turkey, which has grown strongly since 2001, is highly susceptible to external shocks and has seen a rapid flight of capital since the current global economic crisis turned investors sour on riskier emerging markets.

Turkey has attracted some $12 billion in the first 10 months of the year and is targeting $15bn by the end of the year, sharply lower than investment of $22bn last year….. Full Article: Source

From Arabnews.com: Major new ideas or radical change tend not to happen in normal times when systems are running smoothly and people are generally content. It is in times of crisis that great change is usually triggered. We are in a time of crisis.

Hardly a day passes without new tidings of financial disaster. The latest grim news is from the German insurance industry that predicts that 200,000 businesses will go bust in Europe and 62,000 in the US next year — which suggests that 2009 will not see the start of an economic recovery….. Full Article: Source

From AP: This year, they are a carefully wrapped prize tucked under Zeinab Mansour’s arm in an embarrassing reminder of the meat that her family cannot afford much of during this Eid al-Adha, one of Islam’s most important holidays.

“One of (the bones) has a few small chunks of meat. It’ll be good for soup, and to flavor the fatta,” says Mansour, a 32-year-old mother of three, referring to a traditional Eid dish of rice, bread and meat. But the bones, supplemented with a pound of fatty meat she also picked up, are a meager substitute this year….. Full Article: Source

From Arabnews.com: In light of the global financial crisis, several parties started to question the ability of MENA region economies to stay solid and continue on their growth trajectory.

We strongly believe that the region enjoys a solid economic base with robust fundamentals; the IMF has recently issued revised estimates of various economic indicators for countries across the globe, most developed economies growth expectations were cut significantly estimating that many of them will face recession in the 4th quarter of this year and in 2009 while others will achieve growth rates marginally above zero…. Full Article: Source

From Arabnews.com: Bankers in London were disappointed by last-week’s announcement by British Chancellor of the Exchequer Alistair Darling in the Pre-Budget Report (PBR), He said that the UK Treasury would not be issuing a debut sovereign sukuk (Islamic securities) in the wholesale sterling market at the present time.

However, some Islamic bankers in the City advise that given the current financial crisis and the recession in the UK, the Treasury’s action is perhaps understandable and should not be construed as the Brown government’s getting cold feet in its commitment to issuing a sukuk or toward developing Islamic finance in the UK. …. Full Article: Source

From Arabnews.com: The Saudi stock market last week trimmed its losses incurred over the past weeks mainly in response to remarks by Custodian of the Two Holy Mosques King Abdullah that the Saudi economy was still “strong” and that there was nothing to worry about.

The Tadawul All-Share Index (TASI) gained 5.21 percent last week, closing at 4,654.88 points. The TASI is currently 57.83 percent lower than the year’s start….. Full Article: Source