Posted on 07 December 2009 by Laxman | Email|Print
From Thenational.ae: How the landscape has changed for Islamic finance, a sector once viewed as an asset-rich haven for risk-averse investors.
The global reverberations of Dubai World’s decision to seek a “standstill” on its financial obligations have thrown the spotlight on the most imminent and pressing of those commitments: the US$4 billion (Dh14.69bn) bill on a sukuk payable by Dubai World’s property company, Nakheel, in just seven days…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Aawsat.com: The tsunami of the global financial crisis finally struck the coast of the Arab Gulf, after it managed to avoid this for more than one year, to the point that many believed that the region had emerged from the crisis without suffering any losses.
However the world, and the Gulf States, woke up last Wednesday following the closure of the Dubai markets to the news that Dubai World had requested a six-month halt to debt payments that amount to around $3.5 billion, and this is in the framework of restructuring the company’s debts that total around $59 billion…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Siasat.com: The government is considering changing banking law to introduce an interest-free Islamic banking system in the country, sources said.
The Shariat prohibits the collection and payment of interest, so many Muslims now avoid opening bank accounts or refuse to claim the interest, which goes to a suspended account…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Arabnews.com: Over the last few years, the Saudi sukuk market has grown considerably, and could have the potential to become an important source of funding for major companies, as well as an alternative investment and diversification arena for investors and traders.
In June, the FTH report said, we saw the introduction of an automated order-driven sukuk market, however many have argued that this by itself will not lead to the growth and development of the Saudi sukuk market…………………………….Full Article: Source
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From Bi-me.com: Zawya announced the launch of its first ever collaborative Sukuk report with the aim of addressing the barriers faced by the global Sukuk industry.
The credit crisis has opened many new avenues for Islamic finance, and it has emerged as an ethical and risk-averse investment opportunity for many investors (professionals) globally…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Btimes.com.my: Islamic finance can grow at a faster rate if industry players from this region and the Gulf get their act together and become more innovative, said a Bahrain banker.
Ithmaar Bank chairman Khalid Abdulla-Janahi said more “kitchen work” should come from countries like Malaysia in developing Islamic finance rather than the West…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Khaleejtimes.com: The inaugural forum on “Islamic Finance and Global Financial Stability,” which will be held in Khartoum in April 2010, will explore the scope of bolstering the framework of cooperation among Islamic financial institutions to address the new challenges posed by the global financial crisis.
Zeti Akhtar Aziz, Governor of Bank Negara Malaysia, is heading a panel to prepare the agenda for the forum on Islamic finance and global stability. The forum will be held under the auspices of the Council of the Islamic Financial Services Board, or IFSB…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Gulf-daily-news.com: More than 1,200 delegates from 50 countries will take part in the World Islamic Banking Conference (WIBC), which opens today at the Gulf Hotel.
Themed New Strategies for New Economic Realities, the event has attracted leading figures from the Islamic finance industry to debate the way forward following the credit crisis and the global economic downturn…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Arabnews.com: Islamic Financial Institutions (IFIs) have been less affected by the global recession, according to a survey carried out by MTI Consulting. Around 62 percent of the survey respondents cited they had experienced little or no impact from the recent crisis which has ravaged banks and financial institutions worldwide.
The survey was conducted as MTI prepares to present at the 16th Annual World Islamic Banking Conference 2009-10 for the fourth consecutive year opens at Gulf Hotel in Manama this week……………………………Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Seekingalpha.com: Islamic followers can be capitalists too. Although oil prices (currently around $77 per barrel) have fallen from the peak near $150 per barrel in 2008, oil rich nations have gotten creative in how they raise debt-like financing.
Critical to fueling the speculative expansion in some oil rich areas has been the growth in sukuk bonds, which have been created as a function of loophole exploitation in Islamic finance principles…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Financeasia.com: Like with so many other things, when Dubai’s credit-crazed corporations decided to tap the global sukuk market to raise funds few investors thought twice about the Shar’iah-compliant bonds.
It’s taken the threat of default to shake investors out of their complacency with regard to these structures…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Reuters: Risk aversion in the wake of Dubai’s massive debt woes caused investors to slow their move into emerging market equity and riskier bond fund groups in the week ended Dec. 1, EPFR Global said.
The Boston-based fund tracker said that investors did not completely run for safety after government-owned Dubai World requested a payment standstill on a maturing Islamic bond as it works out how to restructure $26 billion worth of debt…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Saudigazette.com.sa: Saudi stocks closed down one percent on Saturday as investors shrugged off neighboring Dubai’s debt crisis in the first trading day on the Riyadh market in nearly two weeks.
The Gulf’s largest equities market sank 2.3 percent when trading opened for the first time after the Eid Al-Adha holiday break, but recovered and was off only 1.06 percent at the close at 6,288.27…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Btimes.com.my: Oman’s top banks said yesterday that they had a total exposure of US$77 million (US$1 = RM3.38) to troubled conglomerate Dubai World, sending their shares down nearly 6 per cent.
Government-owned Dubai World requested a payment standstill on November 25 for US$3.52 billion worth of Islamic bonds maturing this month as it looks to restructure US$26 billion worth of debt…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Arabianbusiness.com: Qatar Islamic Bank said on Thursday it had exposure to a Dubai World Islamic bond maturing in 2017 worth QR54m ($14.84m).
The lender is the first Qatari bank to announce its exposure to the Dubai state-owned conglomerate, which is restructuring debts worth $26bn…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Gulfnews.com: British banks’ exposure to the UAE has reached $49.9 billion (Dh183.13 billion), according to the Bank for International Settlements (BIS) data, including $29.3 billion owed to HSBC and Standard Chartered Bank.
HSBC’s exposure, according to BIS data, stood at $17 billion while Standard Chartered Bank’s claim is expected to be around $12.3 billion to Dubai World — a minuscule amount compared to their global businesses…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Maktoob.com: Kuwait’s Investment Dar, part-owner of luxury British carmaker Aston Martin, said Sunday it’s seeking agreement with creditors for a debt restructuring plan by Dec. 23.
Dar proposed restructuring 1 billion Kuwaiti dinars ($3.5 billion) of debt at meetings held in Dubai and Kuwait in November…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Maktoob.com: Kuwait’s sovereign wealth fund said on Sunday it had sold its stake in U.S. bank Citigroup, becoming the latest Gulf investor to sell foreign shares as markets improve.
Kuwait Investment Authority (KIA) transferred the preferred stocks it owned in Citigroup to normal stocks and sold all of them for $4.1 billion, KIA said in a statement…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Saudigazette.com.sa: Qatar aims to have most of a 17 billion euro ($22.79 billion) rail project with Deutsche Bahn built by 2022, officials said recently after signing one of the biggest-ever foreign deals for German industry.
The whole project - which includes freight and passenger trains and a metro - is expected to be completed in 2026…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Ameinfo.com: Simmons and Simmons has been awarded “Islamic Finance Law Firm of the Year” at the Middle East Legal Awards 2009. Simmons and Simmons won the award by demonstrating that it has made a profoundly significant impact on the field of Shariah compliant business in the Middle East region over the previous 12 months.
The commercial and social impact of relationships and deals brokered over the last 12 months was considered highly in the judging of the award by an independent panel of experts…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Zawya Dow Jones: Aidan Birkett, the man charged with sorting out Dubai World’s $26 billion debt pile, could face an uphill struggle to restructure the company that’s at the heart of the emirate’s financial crisis.
“It’s a very large and complex restructuring with an enormous amount of debt so it’s not a small assignment,” said Chris Ward, chief executive of financial advisory services at Deloitte in the Middle East. “There will be challenges.”……………………………Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Arabnews.com: Malaysia has shortlisted two foreign banks to be licensed as mega-Islamic banks with a minimum capital of $1 billion each. At the same time the country currently has 14 wholly-owned foreign banks (both conventional and Islamic) and may give another five banking licenses by 2012.
Zeti Akhtar Aziz, governor of Bank Negara Malaysia, the central bank, confirmed that the applications for the two mega-Islamic banks are still being processed and an announcement to this effect would be made by the end the first half of 2010…………………………….Full Article: Source
Posted on 07 December 2009 by Laxman | Email|Print
From Islamicfinanceasia.com: It is really a simple matter of supply and demand, and in this case, Malaysia has stepped in to offer up its expertise and experience in Islamic finance to South Korea, a republic brimming with potential.
The South Korean government in recent months has begun pushing to create a haven for potential Islamic finance investors, almost at breakneck speed; working overtime on amending its tax laws and studying the market for a potential Sukuk issuance…………………………….Full Article: Source
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