Posted on 19 April 2010 by Laxman | Email|Print
From Bloomberg: Islamic retail banking is in the “stone ages” as many financial institutions fail to provide services that cater to an increasing number of Shariah-compliant customers, according to Barclays Plc.
Only a “handful of simple” products, such as savings accounts, Islamic loans and debit cards are available to the world’s 1.6 billion Muslims, Harris Irfan, the Dubai-based head of Islamic finance products at Barclays Capital and Barclays Wealth, said in an interview last week…………………………………..Full Article: Source
Posted on 19 April 2010 by Laxman | Email|Print
From Dawn.com: Islamic finance has emerged relatively unscathed from the global economic crisis and Dubai’s turmoil, but experts say the dramas have exposed the need for tighter regulations and higher standards.
The Sharia finance industry, which abides by religious laws that prohibit the payment and collection of interest, is worth an estimated 800-950 billion dollars and expanding rapidly in the Muslim world and in the West…………………………………..Full Article: Source
Posted on 19 April 2010 by Laxman | Email|Print
From Arabnews.com: The “Islamic Finance: Global Financial Stability Report” presented last week in Khartoum, by its joint publishers, the Islamic Financial Services Board (IFSB), the Islamic Development Bank (IDB) and the Islamic Research and Training Institute (IRTI), suggests eight building blocks in three key areas to promote financial stability in the global Islamic financial industry.
In addition, it recommends the establishment of an Islamic Financial Stability Forum (IFSF) which would essentially “be a broad-based and constructive strategic platform for IFSB members to achieve the primary objective of building cross-border dialogue in efforts to promote financial stability within the Islamic financial system.”………………………………….Full Article: Source
Posted on 19 April 2010 by Laxman | Email|Print
From AFP: Muslim nations are “laughing” at European efforts to grapple with a debilitating debt crisis in Greece, which has serious ramifications for the world’s biggest open market, the head of the World Islamic Economic Forum has said.
Former Malaysian deputy prime minister Tun Musa Hitam spoke to AFP in Brussels as European Union plans for a backstop bailout enabling Athens to refinance tens of billions of euros of debt repayments and budget commitments were being thrashed out among eurozone officials…………………………………..Full Article: Source
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From Btimes.com.my: Islamic finance has emerged relatively unscathed from the global economic crisis and Dubai’s turmoil, but experts say the dramas have exposed the need for tighter regulations and higher standards.
The syariah finance industry, which abides by religious laws that prohibit the payment and collection of interest, is worth an estimated US$800 to US$950 billion (US$1 = RM3.20) and expanding in the Muslim world and in the West…………………………………..Full Article: Source
Posted on 19 April 2010 by Laxman | Email|Print
From Middle-east-online.com: The missing ingredients of “responsibility, transparency and accountability,” glaringly absent throughout fraudulent Greek reporting to the EU, were instead to be found in Islamic finance, the head of the World Islamic Economic Forum has said.
“The methodology of Islamic banking will become more acceptable, even without being in Islam,” Former Malaysian deputy prime minister Tun Musa Hitam said…………………………………..Full Article: Source
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From Arabnews.com: “There is nothing more powerful in the world than an idea whose time has come. Islamic finance is not a Muslim-only affair. It shows qualities which are beneficial to all kinds of customers.
For all the Shariah-compliant products we sell in countries such as Malaysia, some 70 percent of our clients are non-Muslim,” said Manfred Dirrheimer, chairman of the executive board, FWU AG, a German financial services company which has pioneered a number of Takaful products…………………………………..Full Article: Source
Posted on 19 April 2010 by Laxman | Email|Print
From Aawsat.com: Three years ago, there was fierce competition between the Gulf region, Dubai in particular, and Malaysia over the sukuk market. The competition caused a rapid growth in this new kind of Islamic tool, as the Dubai government and its subsidiary companies issued numerous consecutive sukuk between January 2006 and December 2007.
The property and real estate company Al Nakheel issued the largest number of sukuk when it issued 3.5 billion dollars worth…………………………………..Full Article: Source
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From Economist.com: Dubai’s recent financial troubles have shaken investors’ confidence in sukuk, a type of Islamic bond, we report this week.
Although a restructuring deal announced last month should ensure that Nakheel’s bondholders will be paid back on schedule, the affair has highlighted some worries surrounding Islamic finance…………………………………..Full Article: Source
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From Business24-7.ae: National Bonds Corporation (NBC), the Shariah-compliant savings scheme, is targeting a growth of 30 per cent in 2010 and is close to inking deals with some Dubai Government-related entities for enrolment with its employee savings scheme, according to the company CEO.
“We have approached the Dubai Government entities and are almost there… just a signature away with some government-related entities,” Mohammed Qasim Al Ali said…………………………………..Full Article: Source
Posted on 19 April 2010 by Laxman | Email|Print
From Business24-7.ae: The price of the Dubai Department of Finance’s 2014 Islamic bond, issued last November, increased significantly and yields dropped by more than 40 basis points (bps) during the issuance of Dewa’s $1 billion (Dh3.67bn) bonds, as markets anticipate positive trends in Dubai’s economy.
Dewa’s bond, maturing in 2015, was more than 11 times oversubscribed on Thursday by investors in the United States, Europe, Asia and the Middle East in just two hours and 15 minutes…………………………………..Full Article: Source
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From IPE: Normally, hedge funds are so-called because they are highly leveraged, use derivatives and are able to employ short selling. They have no ethics-based restrictions, which is not meant as an insult. Islamic finance grates against all of these supposed freedoms.
Despite that, Islamic hedge funds have begun to trickle into the sharia funds marketplace lately…………………………………..Full Article: Source
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From Arabnews.com: The total assets of Islamic financial institutions (IFIs) in the GCC (Gulf Cooperation Council), according to the Bahrain-based Capinnova Investment Bank, showed a sustained growth between 2003 and 2008, representing $288.2 billion at the end of 2008.
Capinnova, the Shariah-compliant investment banking arm of BBK, is upbeat about the Islamic finance industry in the region and predicts that it will grow more this year…………………………………..Full Article: Source
Posted on 19 April 2010 by Laxman | Email|Print
From Gulfnews.com: Many Islamic retail banks do not provide services that cater to an increasing number of Sharia-compliant customers, according to Barclays.
Only a “handful of simple” products, such as savings accounts, Islamic loans and debit cards are available to the world’s 1.6 billion Muslims, Harris Irfan, the Dubai-based head of Islamic finance products at Barclays Capital and Barclays Wealth, said…………………………………..Full Article: Source
Posted on 19 April 2010 by Laxman | Email|Print
From Todayszaman.com: Several countries have started to place an emphasis on a consumer-friendly banking system that has evidently proven its ability to avoid the harsh effects of the global economic crisis.
Islamic banking created a shelter for these countries, though a small one, when their economies were hit by the worst economic depression in 80 years. Having proven its robustness, many pundits confidently claim today that Islamic finance has a bright future ahead with growing recognition all around the world…………………………………..Full Article: Source
Posted on 19 April 2010 by Laxman | Email|Print
From Cpifinancial.net: Capinnova Investment Bank, the Shari’ah-compliant investment banking arm of BBK takes minority investment of $20 million in EBLA Computer Consultancy; GulfMerger acted as the sell-side adviser to EBLA.
EBLA was established in Kuwait in 1993, and currently has subsidiaries in Qatar, UAE, Saudi Arabia, and Egypt and branch offices in Syria, Jordan and Bahrain…………………………………..Full Article: Source
Posted on 19 April 2010 by Laxman | Email|Print
From Thepeninsulaqatar.com: International Islamic (QIIB) has posted a net profit of QR141m and earned a total income of QR252m in the first quarter (Q1) of 2010. The bank recorded a net profit of QR137m in the corresponding period last year.
Announcing QIIB’s first quarter of 2010 results, Chairman and Managing Director Dr Sheikh Khalid bin Thani Al Thani said the first quarter results proved that International Islamic has been able to effectively contribute to the national economy and enjoy the confidence bestowed on it by the financial system and the country at large…………………………………..Full Article: Source
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From Business24-7.ae: Two more Saudi banks – Al Rajhi Bank and Bank Al Jazira – yesterday announced decline in profits due to rise in provisions.
Al Rajhi Bank, the Gulf region’s largest Islamic bank by market value, yesterday said first-quarter net profit fell 2.8 per cent, below analysts’ forecasts, as provisions continue to weigh…………………………………..Full Article: Source
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From Albawaba.com: Emirates NBD, the largest banking group in the Middle East in terms of assets, announced today the introduction of a seed capital initiative, which will facilitate UAE nationals to start up their own business. The initiative will enable Emirati entrepreneurs to fund the initial capital requirement to start their own enterprise.
The move by Emirates NBD comes at a time when self-employed nationals are increasingly recognised for their contribution to the UAE economy and the government plans to introduce a new law to help streamline and speed-up the process of setting up new businesses…………………………………..Full Article: Source
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From AFP: National Bank of Kuwait, the emirate’s largest lender, on Saturday reported a 20-percent rise in net profits for the first quarter of this year after a decline in the same period of 2009.
NBK posted a net profit of 264 million dollars in the first three months of 2010 against 218 million dollars in the same period last year. Its 2009 first-quarter results represented a decline compared with the year before…………………………………..Full Article: Source
Posted on 19 April 2010 by Laxman | Email|Print
From Arabnews.com: The global Takaful industry is well on course to surpass $8.8 billion in contributions in 2010, according to a report. Contributions grew by 29 percent in 2008 to reach $5.3 billion, reveals Ernst & Young’s World Takaful Report 2010.
Saudi Arabia, with contributions totaling $2.9 billion in 2008, and Malaysia with $900 million, are seen as the top two Takaful markets in the world. Sudan is the most significant market outside of the Gulf Cooperation Council (GCC) region and Southeast Asia, with contributions totaling $280 million in 2008…………………………………..Full Article: Source
Posted on 19 April 2010 by Laxman | Email|Print
From IPE: Bai Bithaman Ajil: A contract for deferred payment on the sale of goods. A bank buys goods requested by the client. The bank sells the goods to the client at cost plus profit. They client settles payment in instalments within a predetermined period or in lump sum.
Gharar Lit: The sale of something with unknown consequences, which opens the transacting parties to risk or uncertainty. Examples include selling goods the seller cannot deliver; selling known or unknown goods at an unknown price; or making a contract conditional on an unknown event. Risk and uncertainty are forbidden in sharia…………………………………..Full Article: Source
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