Posted on 28 January 2010 by Laxman | Email|Print
From Reuters: It’s a myth to assume Islamic finance products are safer than conventional products and underlying risks should be studied more carefully, Qatar’s top regulator said on Wednesday.
Despite being billed as a safer alternative to traditional banking because assets must underpin deals, Islamic bondholders have found they may not have any more legal safeguards than conventional counterparts in the event of default……………………………….Full Article: Source
Posted on 28 January 2010 by Laxman | Email|Print
From Indiatimes.com: Aggressively pitching for $1 trillion worth of Sharia-compliant funds from the Gulf countries for investments in its infrastructure development, the UPA government has drafted a report on Islamic banking even as RBI and the finance ministry are jointly working on necessary legislative changes to implement the same.
A committee headed by the Cabinet Secretary and comprising secretaries from other ministries, including finance, submitted a report to the government recently on the prospects of Islamic banking in the country and on drawing investments from abroad, Rajya Sabha deputy chairperson K Rahman Khan said on Wednesday……………………………….Full Article: Source
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From Livemint.com: Islamic economic groupings are asking the Congress-led United Progressive Alliance (UPA) government to allow alternative financial institutions that comply with the Shariah, or Islamic law, to operate in the country.
The Indo-Arab Economic Co-Operation Forum has asked Prime Minister Manmohan Singh to institutionalize an alternative financing system to attract investment from Muslims, according to K. Rahman Khan, deputy chairman of the Rajya Sabha……………………………….Full Article: Source
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From ANI: In what could spark off another controversy and provide fresh ammunition to the opposition BJP on the issue of minority appeasement, the Deputy Speaker of the Rajya Sabha ( or the ‘Council of States’ is the upper house of the Parliament of India) and senior Congress party leader K Rahman Khan today urged the government to create a Sharia-compliant institutional mechanism in the banking sector. He called it “Participatory Banking”.
Khan told media that Sharia-compliant banks should work as an alternate banking system, similar to what existed in the UK, Russia and the U.S. “Mutual funds and venture capital funds are in tune with Islamic laws,” Khan added……………………………….Full Article: Source
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From Newswire.ca: The Toronto Financial Services Alliance (TFSA) welcomed the release of a report prepared for Canada Mortgage and Housing Corporation (CMHC) that concludes that Islamic financing products - and, in particular, housing loans - can be accommodated under Canadian legal and accounting rules.
“The TFSA has recently established a working group to consider challenges and opportunities for Toronto related to Islamic finance,” said TFSA president Janet Ecker, “and these findings will be encouraging to our members.”………………………………Full Article: Source
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From Mortgagebrokernews.ca: Shariah-compliant mortgages and other types of Islamic financing would be legal in Canada, but the CMHC has no plans to insure them or change any legislation or administrative practices to accommodate them, concluded a report.
“Islamic financial products should not present any particular difficulties under Canadian accounting standards,” said a study conducted by the CMHC that noted the growing demand for these types of loans……………………………….Full Article: Source
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From Opalesque Industry Update: International legal practice Norton Rose LLP hosted its ‘New Year - New Opportunities in Islamic Finance’ seminar on Wednesday 20 January 2010 with keynote addresses from Sarah McCarthy-Fry MP, Exchequer Secretary to the Treasury and Mark Hoban MP, Shadow Financial Secretary to the Treasury.
In her opening talk Mrs McCarthy-Fry confirmed the Government’s support for Islamic finance, which has been evidenced by the tax law changes made through the Finance Act 2009. She did however state that there is currently no intention to launch a UK Government sukuk. In response to questions from the floor in this regard, Mrs McCarthy-Fry highlighted the current market conditions and the Government’s concern that a UK Government sukuk would not offer value for money as amongst the reasons behind this decision……………………………….Full Article: Source
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From Di-ve.com: Malta should be in a position to issue guidelines on securities under Islamic finance law by the middle of the year, but there were still legal and technical problems to sort out with respect to banking, Finance Minister Tonio Fenech said.
Mr Fenech was replying to a Parliamentary Question posed by MP Leo Brincat. A consultation document on the introduction of Islamic finance in Malta was issued last year by the Malta Financial Services Authority……………………………….Full Article: Source
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From Arabianbusiness.com: The planned merger between troubled Dubai Islamic mortgage companies Tamweel and Amlak is still possible in the first quarter as progress is being made, Tamweel’s chairman said on Wednesday.
Tamweel and Amlak have both been hit hard by the collapse of Dubai’s once booming property sector and shares in the two companies were suspended in 2007 and have not traded since……………………………….Full Article: Source
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From MNI: The medium-term growth prospects for the world Islamic bond — Sukuk — market are good in 2010, although tight liquidity in the capital markets and the weakness of the dollar means is unlikely to regain its dominant position in Sukuk issuance until the following year.
In a report published Wednesday, Standard & Poor’s predicted steady growth in Islamic bond issuance in 2010, with about $20 billion of Sukuk publicly announced in the past that is likely to come to market if conditions permit……………………………….Full Article: Source
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From Albawaba.com: The Board of Directors of First Gulf Bank (FGB) today announced its full year 2009 financial results with Net Profit reaching a new record at AED 3,310 million, representing a 10% increase over the bank’s 2008 results.
Abdulhamid Saeed, Board Member and Managing Director commented on the results, “Once again, FGB delivers an outstanding financial performance in 2009. At a time where the world is challenged by the global economic crisis, FGB emerges stronger and delivers record results. This reaffirms the bank’s leading position as a very solid financial institution built on strong fundamentals.”………………………………Full Article: Source
Posted on 28 January 2010 by Laxman | Email|Print
From Khaleejtimes.com: Leading investment bank Credit Suisse has predicted that earnings of the six national banks would be affected by heavy provisioning in the fourth quarter of the year 2009.
In a forecast on country’s top banks for the upcoming Q4 09 results, Credit Suisse predicted that margins would be more resilient than initially expected, but the increase from interest income is likely to be offset by rising credit costs……………………………….Full Article: Source
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From Bernama: AmIslamic Bank Bhd is confident of achieving a double-digit growth in its Islamic banking business for the financial year ending March 31, 2010.
Managing director and chief executive officer Datuk Mahdi Murad, in stating this Wednesday, said the bank expected to see a 30 per cent growth in assets and profitability……………………………….Full Article: Source
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From NNN-KUNA: The Bank of Kuwait and the Middle East (BKME) expects 2010 to prove a year of major and strategic changes towards operation as an Islamic Sharia-compliant bank as of the second quarter, upon completion of procedures to obtain the required Amiri Decree approving the conversion.
A statement by the bank Tuesday said that the preliminary procedures are complete, and the approval of the Central Bank of Kuwait had been obtained, and this enables a conversion in record time……………………………….Full Article: Source
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From Ameinfo.com: Emirates NBD announced that the company has elected to discontinue use of Standard & Poor’s Investors Service for rating of its banking subsidiaries, Emirates Bank International PJSC (EBI) and National Bank of Dubai PJSC (NBD).
Following the successful completion of the integration and the migration to the Emirates NBD core banking platform, all assets, liabilities and operations of Emirates Bank International and National Bank of Dubai have been assumed by Emirates NBD PJSC……………………………….Full Article: Source
Posted on 28 January 2010 by Laxman | Email|Print
From Thepeninsulaqatar.com: The Qatari banking sector is currently the fastest growing among GCC economies, with over 30 percent year on year growth expected for 2010, George Nasra (pictured), IBQ Managing Director said.
“We believe this momentum is likely to continue to continue in 2010 as recovery broadens out across the region,” he said……………………………….Full Article: Source
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From Sify.com: The chief executive of The International Banking Corp (TIBC) has been detained by Bahrain authorities on allegations of embezzling more than $2 billion.
The public prosecutor ordered the detention of the executive, who may not be named according to Bahraini law, after he was charged with breach of trust and theft following two days of interrogation, the Arabic-language daily al-Bilad said……………………………….Full Article: Source
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From Maktoob.com: Thousands of investors have been swindled out of a total of 88 million rials ($220 million), Oman’s prosecutor’s office said on Wednesday, in what one analyst said could be the Gulf Arab countries biggest securities portfolio fraud.
“So far, as many as 3,254 people fell prey to the swindlers and the total amount swindled by the cheats so far stands at 88.4 million rials,” the public prosecutor’s office said in a statement……………………………….Full Article: Source
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From Menafn.com: The Dubai Multi Commodities Centre, part of Dubai World, plans to pay the final installment on its five-year $200 million sukuk in the second quarter of 2010, its chief executive officer said on Tuesday.
Malcolm Wall Morris said DMCC would pay the final installment of $20 million when it is due in the second quarter this year. Speaking at a Press conference, Morris said DMCC’s large-scale Jumeirah Lakes Towers development, a mixed-use real-estate project covering 87 towers, was going ahead as planned and was due for completion in 2011……………………………….Full Article: Source
Posted on 28 January 2010 by Laxman | Email|Print
In line with its commitment to be at the forefront of innovation & service excellence, EIB, one of the leading financial institutions in the region, in alliance with AMAN Insurance Co., has introduced Al Hesn Takaful, a new bankassurance cover for a contribution of as little as AED 1 per day !
Al Hesn Takaful consists of 4 different plans with monthly contributions ranging from AED 30 to AED 265 to suit the various requirements of the diverse customer base……………………………….Full Press Release: Source
Posted on 28 January 2010 by Laxman | Email|Print
From Albawaba.com: Economic Development Board Chief Executive, Shaikh Mohammed bin Essa Al Khalifa, welcomed today the latest addition to Bahrain’s financial sector, Zurich Insurance Company (ZIC).
Earlier this week, the international firm was granted a general insurance license by the Central Bank of Bahrain to operate from Bahrain and expand its activities throughout the Gulf region to provide services to a larger corporate client-base……………………………….Full Article: Source
Posted on 28 January 2010 by Laxman | Email|Print
From Myfinances.co.uk: Shariah law prohibits paying or receiving interest, which means taking out a mortgage is difficult for many Muslims living in the UK. There are, however, a range of mortgages which have been created to enable Muslims to pay back a loan without compromising Islamic principles.
There are three types of Islamic mortgages. Ijara Mortgages are the most common and are essentially lease-to-own contracts. The would-be buyer finds a home, agrees a price but then the lender pays for the property and becomes the owner……………………………….Full Article: Source
Posted on 28 January 2010 by Laxman | Email|Print
From Eyeofdubai.com: According to the old traders’ bonmot, “as January goes, so goes the year”. The stock market performance of the first four weeks is supposed to give us an idea of how indices will develop throughout the entire year.
If this theory holds, then 2010 will be a mixed and volatile period which will not mark the long expected recovery. In January (as of the close of trading on January 25), only 10 out of a selection of 25 equity indexes of the Dow Jones Islamic Market (DJIM) universe achieved positive rates of returns……………………………….Full Article: Source
Posted on 28 January 2010 by Laxman | Email|Print
From Thefinancialexpress-bd.com: Malaysia achieved a spectacular success with Islamic finance. At end June last year, it accounted for about 19 per cent of the country’s banking assets. At end-August, the Islamic capital market reached 803 billion Malaysian ringgit, representing 54 per cent of market capitalisation of the Malaysian stock market.
The total financing estimated at 115 billion ringgit constitutes 15.5 per cent of the total financing portfolio of the banking industry. Net non-performing financing remains low at 2.4 per cent……………………………….Full Article: Source
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