Posted on 02 December 2009 by Laxman | Email|Print
From BBC: Amid the confusion and consternation of the global financial crisis, Islamic banking had a gilt-edged chance to step into the breach. It is hard to remember amid screaming headlines proclaiming record bonuses for the bankers of Wall Street and the City.
But just over a year ago, the conventional financial system was on its knees. “When Western banking collapsed, one sector should have escaped unscathed: Islamic banking,” says Mohammad Saeed Rahman, chairman of a US-based think tank, the Institute for Halal Investing……………………………Full Article: Source
Posted on 02 December 2009 by Laxman | Email|Print
From WSJ: Only days ago, Islamic bonds were getting talked about in the same sentence as General Electric Co. Now they are synonymous with the worst storm to hit global markets in months.
At the center of the troubles facing Dubai’s state-run conglomerate, Dubai World, is $3.52 billion in Islamic bonds, or sukuk, that will mature Dec. 14……………………………Full Article: Source
Posted on 02 December 2009 by Laxman | Email|Print
From Businessinsider.com: Islamic religious prohibitions on guaranteed debt may be complicating negotiations to bail out Dubai World. The market has recovered from the initial panic over a possible default on debt issued by Dubai World, and many are assuming that the United Arab Emirates will stand behind the bonds.
But under Islamic financing rules, creditors may be required to take a haircut……………………………Full Article: Source
Posted on 02 December 2009 by Laxman | Email|Print
From Forbes: Global investors were caught off guard last week when the sovereign fund that invests in businesses and building projects for the Dubai government asked to have its payments on some of its $60 billion in debt delayed.
For a sense of how this crisis might affect investors in the U.S., we recently spoke with Nicholas Kaiser, who runs the two largest mutual funds in the country that invest based on Islamic law……………………………Full Article: Source
Posted on 02 December 2009 by Laxman | Email|Print
From Tradearabia.com: The Ruler of Dubai said on Tuesday the emirate was ’strong and persistent’, despite the global reaction to its plans to restructure a conglomerate that he said manifested a lack of understanding.
Dubai, one of seven members of the UAE federation, alarmed global markets last week when it asked for a six-month repayment freeze on debt issued by Dubai World and its unit Nakheel, two of its flagship developers……………………………Full Article: Source
Posted on 02 December 2009 by Laxman | Email|Print
From Thejakartaglobe.com: The Finance Ministry said on Tuesday that it remained upbeat about investor appetite for sukuk , or Shariah bonds, and had not changed its plans to issue more next year, but acknowledged that the Dubai crisis could affect the market.
“[Dubai World subsidiary] Nakheel’s problems will add to the list of corporate Islamic bonds that have defaulted” in the past year, said Rahmat Waluyanto, the ministry’s director general for debt management……………………………Full Article: Source
Posted on 02 December 2009 by Laxman | Email|Print
From FT Alphaville: Largely untested Islamic finance structures have, as we all know, been drawing unwanted scrutiny due to Dubai World’s recent debt-standstill antics.
However, that hasn’t stopped western corporates from adopting Islamic debt structures in a bid to raise much needed financing from alternative non-Western sources……………………………Full Article: Source
Posted on 02 December 2009 by Laxman | Email|Print
From Nytimes.com: The threat of Dubai’s billion-dollar debt default is casting a shadow here in Malaysia, the would-be global center of the fast-growing Islamic finance industry.
Islamic finance is designed to comply with Shariah law, forbidding interest on loans and investment in gambling, alcohol and other industries deemed unethical in Islam. It substitutes profit-sharing for interest, though profit shares can be pre-set to mirror interest on conventional loans……………………………Full Article: Source
Posted on 02 December 2009 by Laxman | Email|Print
From Reuters: Profit at Bahraini banks will likely be affected by Dubai’s debt woes due to provisions booked on their exposure and hits on their investment portfolios, an analyst and a banking executive said on Tuesday.
Dubai said last week it would ask creditors of Dubai World and Nakheel to agreed to a standstill on billions of dollars of debt, shocking international investors and bankers……………………………Full Article: Source
Posted on 02 December 2009 by Laxman | Email|Print
From Globalarabnetwork.com: Fitch Ratings has published a new report today assessing the ability of United Arab Emirates’ (UAE) banks to absorb higher impairments following Dubai World’s (DW) recent announcement about restructuring its debts.
Given the impact of DW’s announcement, impairments at most UAE banks, in terms of lending and investments, will rise further than had been previously anticipated as a result of direct exposures to DW and Nakheel and because of the secondary effect of a loss of confidence in the Dubai economy……………………………Full Article: Source
Posted on 02 December 2009 by Laxman | Email|Print
From Nation.com.pk: The branch network of Islamic banks in Pakistan expanded to 528 in June 2009 compared with around 326 branches in June 2008.
According to the State Bank recent document, over the last few years, the Islamic finance industry is reportedly growing at around 15 percent globally……………………………Full Article: Source
Posted on 02 December 2009 by Laxman | Email|Print
From Nation.com.pk: IGI Funds Limited, the Asset Management Company of IGI Financial Services and Packages Group, has launched the ‘IGI Islamic Income Fund’.
The IPO dates for this Fund are 1st - 3rd December 2009 inclusive. This latest offering is the third fund to be launched by IGI Funds Limited……………………………Full Article: Source
Posted on 02 December 2009 by Laxman | Email|Print
From Bloomberg: Russia may set up a venture with Iran to help fund joint investment projects in the Islamic republic, Russian Energy Minister Sergei Shmatko said.
The two countries, which together hold 40 percent of the world’s natural gas and almost a fifth of its oil, have untapped potential to “significantly” increase energy cooperation, Shmatko said in Tehran, according to a statement e-mailed by the Energy Ministry today……………………………Full Article: Source
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