From Reuters: A wave of debt defaults is set to hit Islamic banks as deals sour amid the global slowdown, testing the legal framework and stability of an industry already facing the biggest slump in its 30-year history.

The global economic downturn that punctured Islamic banking’s growth bubble is also expected to bring many sharia financing structures under the legal microscope for the first time in centers such as Dubai, Bahrain and Malaysia……..Full Article: Source

From Business24-7.ae: A wave of debt defaults is set to hit Islamic banks as deals sour amid the global slowdown, testing the legal framework and stability of an industry already facing the biggest slump in its 30-year history, experts said.

The global economic downturn that punctured Islamic banking’s growth bubble is also expected to bring many Shariah-financing structures under the legal microscope for the first time in centres such as Dubai, Bahrain and Malaysia……..Full Article: Source

From Thenational.ae: Bahrain’s Islamic banks increased assets by 50 per cent to US$24.6 billion (Dh90.35bn) last year despite adverse market conditions, according to figures issued by the country’s central bank.

“Bahrain is well positioned to remain at the forefront of developments through the application of prudent regulatory standards,” said Rasheed al Maraj, the bank’s governor……..Full Article: Source

From Businessweek.com: The roughly $700 billion Islamic finance market is expected to “resume its rapid growth” after taking a drubbing last year because of the global financial meltdown, a leading international credit rating agency said Tuesday.

Standard & Poor’s said while global sukuk issuances fell by over 50 percent in 2008, to $14.9 billion, compared to the previous year because of the global financial crisis, the outlook for Islamic finance remains strong and the market is expected to rebound. Sukuk are bonds structured to avoid paying interest, in line with Islamic law……..Full Article: Source

From Celent.com: Currently, Islamic banking assets in the Asia-Pacific region account for about US$450 billion, which represents 60 percent of global Islamic banking assets.

A new Celent report, Rise of Islamic Banking in the Asia-Pacific Region, examines the recent growth of Islamic banking in major countries in the region. The last five years have seen overall development in the economy, resulting in a faster growth of GDP per capita……..Full Article: Source

From Reuters: Kuwait’s Islamic firm Investment Dar said it had defaulted on a $100 million Islamic debt issue, the first such default for a major, public Islamic instrument in the region.

The firm made the notification through its Bahraini unit The Investment Dar Sukuk Company, which said on Tuesday that an event of default of more than 14 days had occurred in the payment of a periodic distribution amount on its sukuk maturing in 2010, according to a bourse statement……..Full Article: Source

From Bloomberg: Investment Dar Co., the owner of half of Aston Martin Lagonda Ltd., missed a payment on $100 million of debt, becoming the first Persian Gulf company to default on Islamic bonds.

Investment Dar failed to pay a “periodic distribution” due on April 27 to holders of its Islamic bonds maturing in 2010, it said in a statement today. The Kuwait-based company had 1.08 billion dinars ($3.73 billion) of total debt outstanding as of September 2008, according to Bloomberg data……..Full Article: Source

From Maktoob.com: The global economic downturn is expected to bottom out later this year with a rebound starting around 2011 led by the oil-rich Middle East nations, BNP Paribas S.A.’s chief economist said on Tuesday.

“It’s safe to say we have not bottomed out yet,” Philippe D’arvisenet told Zawya Dow Jones in an interview Tuesday. “We may do later in the year but we may stay at the bottom for many quarters.”…….Full Article: Source

From Tradearabia.com: The Arab World is yet to get over the current global financial crisis, said Amr Moussa, the secretary-general of the League of Arab States.

In an interview with CNBC Arabiya, during the Arab Media Forum 2009 held in Dubai this week, Moussa said that the region is still recovering from the impact of the financial crisis……..Full Article: Source

From Ameinfo.com: All GCC markets begin 2009 on a negative note but see a revival by the end of first quarter market.
Funds registered for sale in the GCC decreased almost 6% for first quarter 2009…….Full Article: Source

From Cpifinancial.net: The Bank of New York Mellon has been appointed by Indonesia to provide multiple corporate trust services for Indonesia’s first ever Shari’ah-compliant mandatory exchangeable Sukuk priced at $650 million in a five-year deal.

The Bank of New York Mellon will act as delegate trustee, principal paying agent, transfer agent, and registrar……..Full Article: Source

From Gulf-times.com: QInvest will soon launch a $250mn private equity fund and another sector-specific fund as well as two other funds by the third quarter of this year.
The Qatar Financial Centre-based firm, whose principal shareholders are Qatar Islamic Bank and Gulf Finance House, also said it would also embark on brokerage and wealth management services……..Full Article: Source

From Thenational.ae: Nakheel made headlines around the world with its Palm island projects and the planned Hong Kong-sized Waterfront development, while its advertising billboards dotted around Dubai asked “What next?”

What next is the question now being asked by investors as one of the Middle East’s largest property developers contends with a US$3.5 billion (Dh12.85bn) Islamic bond due in December, which helped fund projects that included the world’s biggest man-made islands……..Full Article: Source

From Leasinglife.co.uk: Bahrain-based ABC Bank has announced that it will begin marketing Islamic financial products to European clients that have found themselves constrained by the sustained gridlock in the credit markets.

“We are aiming to target the wholesale market, especially companies in Europe that are interested in seeking Islamic finance solutions, for example sukuk, leasing, and general corporate facilities,” said Faisal Alshowaikh, the newly- appointed head of Islamic financial services at ABC International……..Full Article: Source

From Reuters: Private equity houses are eyeing acquisitions in the Gulf Arab region, but deal-making is challenging in a region dominated by family owned conglomerates, bankers said.

The Gulf Arab region has been a hunting ground for private equity firms raising oil money from rich individuals and institutions to finance deals elsewhere……..Full Article: Source

From Thestar.com.my: HSBC Bank Malaysia Bhd plans to open more Islamic banking branches under its unit HSBC Amanah Malaysia Bhd this year after carrying out a post-implementation review on its four branches.

“There are plans to increase our branches this year but, more importantly, we have to review our existing four branches so that we can avoid any possible hiccups and improve our future undertakings……..Full Article: Source

From Theasianbanker.com: HSBC Bank (Mauritius) Limited has launched Islamic banking products for business customers. The bank is introducing two products under the HSBC Amanah brand: a current account and a term investment account. It is expected that more products will be added over time in line with customers’ requirements.

With this launch, HSBC Bank Mauritius becomes the first bank in Mauritius to offer Shariah-compliant banking services……..Full Article: Source

From Gulf-daily-news.com: In spite of the global financial downturn Bahrain-based Ithmaar Bank was comfortably in the black in the first quarter of the year.

The Bahrain-based Islamic finance house made $16.4 million in profit during the period and the net profit attributable to equity holders of the bank amounted to $3.8m……..Full Article: Source

From Gaapweb.com: HSBC Amanh and the Chartered Institute of Management Accountants (CIMA) have extended their partnership aimed at promoting CIMA’s Certificate in Islamic Finance.

Under the scheme, more staff from the bank will be able to take the qualfiication……..Full Article: Source

From Tradearabia.com: KFH Automall, a unit of Kuwait Finance House (KFH), a leading provider of Islamic commercial and investment banking services, has announced a special car financing promotion for all its customers.

KFH banking group head and Automall executive manager Khalid Rafea said customers can benefit from the new finance deal, which promises better interest rates, gives customers a free mobile phone, free petrol vouchers, registration, rust proofing, insurance up to BD250 ($663) and window tinting……..Full Article: Source

From Albawaba.com: Dubai Islamic Bank (DIB) announced today that it has won the overall Best Sukuk Bank Award and the UAE Country Award in Global Finance’s second global “World’s Best Islamic Financial Institutions” competition.

The winners were chosen among entries evaluated by Global Finance editors after extensive consultations with bankers, corporate finance executives and analysts throughout the world……..Full Article: Source

From Somalilandpress.com: To recap, one of the basic principles of Islamic banking is the prohibition of usury or interest. Up until the 1980s interest was generally interpreted to only apply to usury but it is now accepted practice to refer to all interest.

Other principles are based on simple morality and common sense, which are by no means unique to Islam. For example, usury was also prohibited by the Old as well as the New Testament. Even literary heavyweights such as Shakespeare weighed in against the practice……..Full Article: Source