From Reuters: Indonesia’s fourth-largest lender by assets, PT Bank Negara Indonesia Tbk, plans to set up its sharia banking business as a separate unit later this year, an executive said on Thursday.

Ismi Kushartanto, head of BNI’s sharia unit, told Reuters via a mobile text message that BNI would set aside 500 billion rupiah ($49 million) in minimum paid-up capital for separating the unit, as required by the central bank………Full Article: Source

From Saudigazette.com.sa: Moody’s Investors Service identified various characteristics found in strategies adopted by Islamic banks which enhance their financial strength ratings in a new report.
These include strategies that improve franchise value, risk positioning and financial fundamentals………Full Article: Source

From Gulf-daily-news.com: Emirates Islamic Bank (EIB), a unit of Emirates NBD, proposed a 1.1 billion dirham ($299.6 million) rights issue yesterday in the latest move by Gulf banks to raise capital in the wake of the financial crisis.

EIB said that shareholders would review the issue at an extraordinary meeting scheduled for June 28, and would vote on cancelling a previous proposal to issue 565.6m shares at the same time………Full Article: Source

From Yobserver.com: The Central Bank of Yemen (CBY) is working on preparations to implement Islamic financial instruments which will help Islamic banks in opening a window to use their liquidity surplus as well as provide funds to finance social and economic projects in Yemen, the Governor of the Central Bank of Yemen, Ahmed al-Smawi said.

He delivered a speech at the Fourth Conference of Islamic banks and financial institutions, which was hosted in the Syrian capital, Damascus, during 1st and 2nd of June………Full Article: Source

From Bernama: The Islamic Development Bank (IDB) should emulate Asean’s integration in assisting less fortunate member countries to face the global economic crisis.

In calling for this, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah urged IDB to consider adopting the approach to bolster the spirit of helping fellow Muslim countries and to eventually uplift their social and economic strength………Full Article: Source

From Guardian: Ezdan Real Estate Co, Qatar’s largest developer by market value, said on Thursday it planned to sell some of its real estate portfolio as it seeks to raise funds for billion-dollar projects in the next five years.
Ezdan’s deputy chief executive officer, Samer Wahbeh, said the company, which complies with Islamic law, would build schools, hotels, residential units and hospitals in Qatar, the world’s biggest exporter of liquefied natural gas………Full Article: Source

From Arabianbusiness.com: The CEO of Noor Islamic Bank on Thursday called for greater consolidation of the UAE’s banking sector and said he would not rule out a merger in the future.

Hussain Al Qemzi said that the UAE needed fewer and larger banks if it was to compete with other financial economies across the world. “When you live in an isolated economy you don’t need it, but today we are facing the world…we need bigger banks to survive,” said Al Qemzi………Full Article: Source

From Reuters: Russia, entrenched in economic woes, is positioning itself as a firm trading partner with Arab nations who are keen to rekindle their Soviet-era alliance, government officials said on Thursday.

Trade between the Arab world and Russia currently totals $8 billion a year — a figure dwarfed by that of Russia’s heavyweight partner, the European Union, amounting to hundreds of billions of dollars — but Russia hopes a wave of new investments will cement trade for years to come………Full Article: Source

From Ameinfo.com: National Bank of Kuwait announced that the Islamic KD Ijara Fund I offering was fully subscribed in the first two days of its offering period with a fund size of KD40m.

This announcement reflects NBK’s ability to successfully meet investor needs by providing Islamic investment solutions. The Fund was launched in response to the increased demand for NBK’s Ijara funds which have been successful in achieving attractive returns to NBK’s clients………Full Article: Source

From Arabianbusiness.com: The Islamic financing structure of organised tawarruq should be allowed, a top Malaysian religious scholar said on Thursday, weighing in on an issue that has divided the $1 trillion industry.

Tawarruq is widely used as a financing and liquidity management tool but sharia jurists differ on its permissibility………Full Article: Source

From Thejakartapost.com: To speed up the development of infrastructure projects, highly needed in Asian countries, the Asian Development Bank (ADB) and the Islamic Development Bank (IDB) have agreed to set up Asia’s first major multi-country Islamic infrastructure fund.

The Islamic infrastructure fund is expected to reach US$500 million, and will contribute sharia-compliant equity investments in 12 Asian countries - all of which are borrowing members of both development banks, ADB and IDB said in a joint statement………Full Article: Source

From Middle-east-online.com: Islamic banking and finance cannot take off in countries like Indonesia, in high population and high poverty Muslim countries, unless the range of banking and financial instruments deployed are diversified to facilitate volume.

The latest initiative of the Islamic Development Bank (IDB), working jointly with the Asian Development Bank (ADB), to set up Asia’s first major multi-country Islamic infrastructure support fund is a good step forward………Full Article: Source

From Bernama: The private sector has been urged to help develop skilled labour in Islamic banking in line with the country’s aim of emerging as an Islamic financial hub, respected by the world.

The Minister in the Prime Minister’s Department Mejar Jeneral (R) Datuk Jamil Khir Baharom said although Malaysia was already known as an Islamic nation, it was important to continue this effort more effectively………Full Article: Source

From Zawya.com: The GCC and Asian Sukuk market is once again showing activity and brimming with cautious optimism. Growing market confidence as underlined by a number of planned sovereign Sukuk issuances in the GCC; a huge improvement in the average price of and yield from Sukuk over the last four months, and the benefits of economic and fiscal stimulus packages, is expected to kick start the Middle Eastern Islamic debt and capital market later this year.

Several banks and allied services concur that activity in the Islamic debt market is beginning to pick up and that they are now advising a number of funds and investment banks on investment structures to invest in Sukuk………Full Article: Source

From Todayszaman.com: Ahmet Tıktık, deputy president of the Islamic Development Bank (IDB) and former undersecretary of the State Planning Organization (DPT), has said Gulf capital may help Turkey satisfy its need for foreign investments.
The wealthy owners of capital in the Gulf region will likely be interested in investments in the fields of agriculture, education and health, he added………Full Article: Source

From Tradearabia.com: Bahrain-based The International Banking Corporation (TIBC) has already met its creditors to request a temporary standstill period, the troubled Saudi Ahmad Hamad Algosaibi & Brothers Company (AHAG) has said.

In a statement yesterday, AHAG said the purpose of the standstill period at its subsidiary is to enable TIBC’s external advisers, AHAG and its external advisers to continue gathering, reviewing and assessing information regarding TIBC’s financial commitments and future outlook………Full Article: Source

From Gulfnews.com: Tighter lending by UAE banks and a waning appetite for debt led to a decline of more than 10 per cent in personal loans in the first quarter of 2009 compared with the end of 2008, according to data released by the Central Bank.

At the end of March, the level of personal loans stood at Dh202.7 billion, compared with Dh226.4 billion last December………Full Article: Source

From Maktoob.com: Abu Dhabi’s state-owned International Petroleum Investment Co (IPIC) has sold securities in British bank Barclays worth 1.25 billion pounds (1.44 billion euros, $2.05 billion), the Financial Times reported on Thursday.

Demand for the reserve capital notes - similar to preference shares - was three times the amount on offer when they were sold on Wednesday, the Financial Times reported citing people close to the matter………Full Article: Source

From Menareport.com: Bahrain Stock Exchange (BSE) announced that it has signed a Depository Participant (Custodian) agreement with Standard Chartered Bank Bahrain on 3 June 2009. The agreement allows the Bank to offer custody services to local, regional and international investors.
The signing was attended by Fouad Rashid, Director of BSE and Jonathan Morris, CEO of Standard Chartered Bank Bahrain, and is in line with both organisations efforts to provide best-in-class solutions to investors in the securities industry in Bahrain………Full Article: Source

From Indiancatholic.in: Bara-based Lashkar-e-Islam (LI, an Islamic militant group) has imposed jazia, an Islamic tax, to the non-Muslim communities, including Sikhs, Hindus and Christians living in Khyber Agency, a tribal agency of North West Frontier Post (NWFP) near Afghanistan’s border and which is under the control of militants.

“Sources said LI had asked the non-Muslim communities in Bara, Chora, Karamna, Bazaar Zakhakhel and Tirah Valley of Khyber Agency to pay jazia or leave the agency.”……..Full Article: Source