Posted on 19 July 2010 by Laxman | Email|Print
From Independent: Where did it all go wrong? It was supposed to be the new frontier for the giant high-street banks, attracting Britain’s two-million-plus Muslims. Many members of this prosperous minority had felt excluded from the British banking system and its zero-sum game of maximising profit and charging interest – a practice forbidden under Islamic law, or Shariah.
As a result, charities have long estimated that the proportion of Muslims who were unbanked – who didn’t have a standard current account – was higher than in the overall population……………………………………….Full Article: Source
Posted on 19 July 2010 by Laxman | Email|Print
From Arabnews.com: It is not only some South African government officials, cadres of the ruling African National Congress (ANC) and high ranking officers of state utilities, that are on the gravy train. Perhaps the biggest greed culture is amongst South African banks whose banking charges and fees are the highest in developed countries.
Unfortunately, Islamic banks and windows in South Africa are no exceptions, fueling further cynicism about Islamic banking in the country……………………………………….Full Article: Source
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From Gulfnews.com: With Islamic finance gaining ground globally, the need for international standards has gained importance. The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) is in the forefront of these effort.
The Islamic international autonomous not-for-profit corporate body prepares accounting, auditing, governance, ethics and Sharia standards for Islamic financial institutions and the industry……………………………………….Full Article: Source
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From Arabnews.com: Kazakhstan has resumed work toward issuing the first sukuk out of the CIS, although bankers stress that the issuance will take some time. The Kazakh Ministry of Finance, according to Malaysian bankers, may most likely opt to issue a debut Sukuk Al-Ijarah in the region of $300 million for benchmark purposes.
The Kazakh Ministry of Finance will be both the obligor (therefore responsible for all payments including rental and principal payments to the investors) and originator, who will originate assets for the sukuk issue……………………………………….Full Article: Source
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From Zawya.com: As global crisis continues, Islamic bonds witness a clear turnaround in the first half of 2010 (H1′10) compared to the sharp fall in 2009 and 2008. Global sukuk issuances in H1′10 reached US$20.4 billion, a 99% growth to H1′09, yet still less than H1′07 all time high at $US 24 billion, according to a report released by London based, IFIS, Islamic Finance Information Service.
The report shows that South East Asia remain to denominate the sukuk market with issuances worth US$17.35 billion in H1′10 compared to US$8.89 billion in H1′09 and even US$4.5 billion in H1′08……………………………………….Full Article: Source
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From Arabianbusiness.com: Private contractor Saudi Binladin Group has raised 700 million riyals ($187 million) from the kingdom’s first short term Islamic bond, opening a new window for credit-hungry firms amid tight lending conditions.
In a statement on Saturday, the issue’s security agent, SABB - which is HSBC’s Saudi affiliate - did not disclose the maturity of the sukuk. It said the placement was private, offered to Saudi investors and issued through Saudi BinLadin Sukuk Co……………………………………….Full Article: Source
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From Cpifinancial.net: The Saudi BinLadin Group (SBG) has issued an SAR 700 million ($187 million) Sukuk Al-Murabaha. The privately placed Sukuk was offered to Saudi sophisticated investors and issued through Saudi BinLadin Sukuk Co.
HSBC Saudi Arabia was the sole Lead Manager and Bookrunner for the transaction. SABB acted as the Security agent while SABB Securities was the Sukuk Holder’s Agent, Payments Administrator and Inter creditor Agent. The Sukuk was more than 2.5 times oversubscribed. It marked several ‘firsts’:………………………………………Full Article: Source
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From Arabnews.com: Vneshtorgbank (VTB), the Russian foreign trade bank, has confirmed that it has resumed work on a possible sukuk issuance and a range of other Islamic financial products aimed at Russian corporates and international investors.
Stanislav Yankovets, VTB’s managing director of strategic development, Middle East and North Africa, explained during the Moscow Islamic Finance Forum in May that VTB Capital, a wholly-owned subsidiary of VTB, has resumed work on issuing a sukuk through its Dubai entity VTB Capital Dubai……………………………………….Full Article: Source
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From Arabnews.com: The Saudi Electricity Company (SEC) plans to raise funds through a sukuk issuance in the international markets.
The timing and size would depend on prevailing market conditions and the internal dynamics of electricity demand and supply in the Kingdom……………………………………….Full Article: Source
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From Bloomberg: The state-run Islamic Bank of Thailand plans to raise 5 billion baht ($155 million) in the nation’s first sukuk sale, joining borrowers from Singapore to India targeting investors from minority Muslim populations.
The Thai Securities & Exchange Commission plans to publish guidelines next quarter for companies to issue Shariah-compliant securities, Charuphan Intararoong, a spokeswoman for the regulator, said in an interview yesterday in Bangkok……………………………………….Full Article: Source
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From : Bank Islam Brunei Darussalam (BIBD) is seeking more opportunities in the global sukuk market as a means to grow its expertise while waiting for potential sukuk transactions in the country, a top executive said.
Acting Managing Director Javed Ahmad told The Brunei Times the bank is trying to build the team, experience and expertise on sukuk issuances……………………………………….Full Article: Source
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From Gulf-times.com: Qatar’s private sector should explore the possibilities of launching sector-specific bonds as the country is now in overdrive on debt market reforms, according to industry sources.
The need for tapping such funds comes in the wake of the shrinking share of bank lending to the private sector in the last four years. Moreover, many in the private sector are also actively involved in the infrastructure development in the fastest growing economy……………………………………….Full Article: Source
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From Gulfnews.com: What are the expectations of the Islamic banking industry towards the 1.6 billion Muslims and interested non-Muslims? What obligations do the Muslims have towards Islamic banking?
In 40 years, the industry has finally breached the $1 trillion (Dh3.67 trillion) market, yet the larger percentage of bankable Muslims have a bias towards conventional finance, and Islamic finance has, at best, reached to 2-3 per cent of all Muslims……………………………………….Full Article: Source
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From Ummid.com: The recent statement of MS Swaminathan, the father of green revolution in India, that Islamic banking can be a solution for farmers’ suicide in Vidarbha is apt reply to those opposing it tooth and nail by terming this banking system as anti-economic growth.
It is truth, nothing but truth, that exorbitant lending rates charged by moneylenders have created a vicious cycle of debt and suicide not only in Vidarbha, but also in several parts of the country……………………………………….Full Article: Source
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From Bloomberg: Abu Dhabi Islamic Bank PJSC, the United Arab Emirates’ second-biggest bank complying with shariah banking rules, posted a 56 percent increase in second-quarter profit as it set aside less money to cover bad loans.
Net income rose to 301.6 million dirhams ($82 million) from 193.4 million dirhams in the year-earlier period, the bank said in an e-mailed statement today. Provisions dropped 21 percent to 134.6 million dirhams. The bank said it may need to take more provisions this year……………………………………….Full Article: Source
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From Thenational.ae: Abu Dhabi Islamic Bank’s (ADIB) second-quarter profits rose by more than half as it required less provisioning for bad loans in a sign that the outlook for the lender is improving.
The UAE’s second-biggest Sharia-compliant bank reported a net profit of Dh301.6 million (US$82.1m) in the June quarter, up from Dh193.1m in the same period last year, the company said yesterday……………………………………….Full Article: Source
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From Reuters: UAE lender Abu Dhabi Islamic Bank said it will post double-digit profit growth for the remainder of the year after second-quarter net profit came in above analysts’ forecasts.
The bank, the second largest Islamic lender in the UAE, made a net profit of 301.6 million UAE dirhams in the three months to June 30, up 56 percent from 193.1 million in the same period last year, helped by lower provisions……………………………………….Full Article: Source
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From Arabnews.com: The Association of Regional Banks of Russia (ARBR) has established a task force on alternative (Islamic) financial institutions and products.
“Our mandate is to come up with a draft legal and regulatory framework for alternative Islamic financial institutions and products which we would then present to the various political and financial authorities for further consideration and recommendations……………………………………….Full Article: Source
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From Bloomberg: Bahrain’s Economic Development Board said the recovery of the financial industry, which contributes about a quarter of the country’s gross domestic product, is likely to be slow as low property prices weigh on lending.
“The EDB expects the finance sector to recover only slowly from the downturn,” the government’s advisory group said in its annual report. “Given the outlook for property, wholesale banking is unlikely to expand for some time, and Islamic banking will be more constrained than expected.”………………………………………Full Article: Source
Posted on 19 July 2010 by Laxman | Email|Print
MasterCard Worldwide announced a 5 year Premium Debit MasterCard exclusivity agreement with Qatar Islamic Bank (QIB), Qatar’s first Islamic bank and a key MasterCard issuer. The strategic agreement will streamline QIB’s Premium Debit MasterCard issuance, while offering more benefits and enhanced insight as the Bank manages its premium debit portfolio.
Initiated to provide added value to QIB’s premium customers, the MasterCard-QIB agreement will give customers the flexibility, convenience and security they have come to expect when using MasterCard cards……………………………………….Full Press Release: Source
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From Gulf-daily-news.com: For the third year in a row, the Central Bank of Bahrain (CBB) was honoured with the top award at the International Takaful Summit in London.
The CBB was named Best Financial Centre for 2010, recognising Bahrain as the leading international centre for the takaful industry……………………………………….Full Article: Source
Posted on 19 July 2010 by Laxman | Email|Print
From Globalarabnetwork.com: Gulf Investment Corporation (GIC) investment funds specialized in Gulf bonds and equities revealed a positive performance in the first half of 2010.
Returns of the GIC’s Bond Fund in Kuwaiti dinar and Gulf Bond Fund in US dollar reached approximately 8.20 percent and 6.79 percent respectively……………………………………….Full Article: Source
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From Business24-7.ae: The UAE has pumped over $62 billion into fellow Arab countries over the past 15 years to emerge as the dominant investor in the region, according to official data.
The capital channeled by the UAE, the second largest Arab economy, accounted for more than a third of the total inter-Arab investment during 1995-2009, showed the figures by a key Arab League financial organization……………………………………….Full Article: Source
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From Menareport.com: PricewaterhouseCoopers (PwC), a leading international professional services organisation, has found initial public offering (IPO) activity in the Kingdom of Saudi Arabia (KSA) still to be leading the regional IPO activity in the first half of 2010 with seven of the eight taking place in KSA.
The number of IPOs was up slightly on the seven in the first half of 2009 however the total amount raised at the end of June 2010 was USD830 million, 31.4% lower than the USD1,209 million raised during the same period in 2009……………………………………….Full Article: Source
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From Guardian: Muslim advocates of the dinar believe it will stop the excesses of capitalism, but it is just another avenue for exploitation. Imagine a world trading solely in gold and silver coins. Imagine the size of your wallet.
Yet this is the ideal world envisaged by some of Malaysia’s activists championing the Islamic gold dinar and silver dirham as a new form of legal tender to replace paper money – a utopia that could see the light of day as early as the middle of next month……………………………………….Full Article: Source
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From Arabnews.com: Professor Rifaat Ahmed Abdel Karim of Sudan, the inaugural secretary general of the Islamic Financial Services Board (IFSB), was conferred the Panglima Jasa Negara (PJN) award, a knighthood that carries the title of Datuk, in conjunction with the birthday of the Malaysian monarch Yang Di-Pertuan Agong Tuanku Mizan Zainal Abidin on June 6.
Datuk Professor Rifaat has steered the IFSB to international recognition since its inception in 2002. He is to stand down at the end of this year. The IFSB’s mandate is to set prudential and supervisory standards for the global Islamic finance industry……………………………………….Full Article: Source
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