Posted on 27 September 2010 by Laxman | Email|Print
From Gulfnews.com: For Islamic finance, 2009 and 2010 may be categorised as the years of ‘R-Cubed’ — reflection, reassessment, and reality check. Since the beginning of 2009, there have been 42 liquidations of Islamic funds, defaults by 34 sukuks, rating downgrades of Takaful operators, and increase in layoffs in the sector.
A recent Deloitte study, the ME Islamic Finance (IF) Leaders Survey, arrived at some interesting conclusions: 64 per cent of respondents agreed that IF is lagging in risk management; 65 per cent believe IF institutions are not properly capitalised; 66 per cent expect change in existing business models in the foreseeable future……………………………………….Full Article: Source
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From Ameinfo.com: To compete better with conventional finance, Islamic finance will need to move beyond the retail market and develop its capital markets globally, an official from consultancy Deloitte told reporters in Dubai at the launch of the firm’s Middle East Islamic finance leaders survey.
“Islamic finance still represents less than 1 percent of the global market. It’s not yet punching its weight,” Daud Vicary Abdullah, global leader of Deloitte’s Islamic finance group, was quoted as saying by Reuters……………………………………….Full Article: Source
Posted on 27 September 2010 by Laxman | Email|Print
From Thenational.ae: Excess risk, excess reward, excess concern with short term results. More than any other word, excess gets to the root of the last financial crisis. Islamic law has long cautioned against excesses in the marketplace. Sharia-compliant finance prohibits “riba”, translated into English as usury, and also attempts to keep financial transactions and markets in balance.
The application of these principles helped to give birth to a thriving market economy in the Arab world that predated western capitalism and modern banking by centuries. The lessons of Islamic finance have a particular poignancy today……………………………………….Full Article: Source
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From Arabnews.com: The South African government’s recent confirmation that it is in the process of introducing tax neutrality laws for Mudaraba (trust financing), Murabaha (cost-plus financing) and Diminishing Musharaka (diminishing shared ownership) contracts is a long overdue recognition of the potential Islamic finance has for the country and the region.
Financial services industry sources stress that the proposed tax neutrality measures are just the start and the wider objective is to introduce a comprehensive regulatory and legal framework to facilitate Islamic finance in the country both for financial inclusion and market liberalization and development reasons……………………………………….Full Article: Source
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From Arabnews.com: The perceived sustainability and attractiveness of Islamic finance as an alternative financial management model in a post global financial crisis continues to flourish in new regions and countries trying to change banking regulations and laws to facilitate the introduction of such institutions and products in their respective jurisdictions.
The latest region which is trying to open up to Islamic finance is East Africa, including Ethiopia, where local reports suggest that the National Bank of Ethiopia (NBE), the central bank, is in the process of finalizing a banking regulation and business directive that would allow the authorization of a bank operating under interest-free (Islamic finance) principles……………………………………….Full Article: Source
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From Tradearabia.com: A majority of Islamic Finance leaders in the Middle East region believe the Islamic Finance industry is under regulated, said a recent survey by Deloitte, a leading accounting and consulting firm.
Deloitte, in its first ‘ME Islamic Finance Leaders Survey’ reveals insight from experts on a wide range of pressing issues and prevailing trends within five key areas of regulatory and Sharia’a compliance, risk management, corporate structuring and capital management strategy, investment and capital markets and human capital management……………………………………….Full Article: Source
Posted on 27 September 2010 by Laxman | Email|Print
From Nytimes.com: With the Islamic finance industry worth an estimated $1 trillion and growing rapidly, it is perhaps no surprise that a number of Asia-Pacific nations are among a growing band of countries worldwide to signal their intention to carve out a larger share of the market.
Countries like Malaysia, Indonesia and Singapore, along with Hong Kong, have set their sights on becoming hubs for Islamic finance, where investments are made according to Islamic principles……………………………………….Full Article: Source
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From KUNA: The Islamic banking sector in the Gulf Cooperation Council (GCC) member states grows by 20 percent a year representing 17 percent of the total assets of the banking industry in the region, a report said here on Sunday.
Kuwait ranked first among the GCC countries in terms of total assets while Saudi Arabia and the United Arab Emirates (UAE) have risen among the countries that promote Islamic finance products and services, according to the report issued by KFH Research Ltd - the Islamic investment research arm of Kuwait Finance House (KFH)……………………………………….Full Article: Source
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From Ameinfo.com: A report released by Kuwait Finance House Research Limited revealed that the Islamic banking industry accounted for 35% of the total banking assets of Kuwait and about 17% of the GCC banking system total assets as a whole.
It is expected that this industry will to continue to grow at an annual average rate of 15 - 20%, should four main factors including the regulatory framework, increase in the GDP, government development plans continue to drive growth rates forward and add momentum representing increased demand and further expanding related areas of business……………………………………….Full Article: Source
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From AFP: Dubai’s government said on Sunday it has given the green light to Dubai Islamic Bank for a majority stake in Tamweel, one of the emirate’s largest property finance groups.
DIB would now become the largest stakeholder in Tamweel with a 57.33-percent share, the government said in a statement, in a move to revive the property lending market that has suffered the worst by the global financial crisis……………………………………….Full Article: Source
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From Arabianbusiness.com: Dubai Islamic Bank raised its stake in Islamic mortgage firm Tamweel to 57.33 percent, Dubai’s government said on Sunday, in a move that will help revive lending in Dubai’s battered property market.
Dubai Islamic Bank, the emirate’s third-largest bank by market value, had said in June it may increase its one-fifth stake in Tamweel……………………………………….Full Article: Source
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From Businessweek.com: Dubai Islamic Bank assumed control of troubled mortgage provider Tamweel on Sunday, boosting its stake in a bid to spur real-estate lending in the debt-laden emirate.
The deal carried the blessing of Dubai’s government, which announced the transaction before the bank itself did……………………………………….Full Article: Source
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From Saudigazette.com.sa: The pre-crisis moves toward developing the concept of Shariah-compliant investment banking (SCIB) were brought to a halt by the onset of the global financial crisis and severely undermined by the spectacular defaults of a few SCIBs mid-crisis, Moody’s Investors Service said in a special comment on GCC Islamic investment banks.
“The SCIBs’ unsound risk-management architecture is reflected by their concentration risks, poor sector allocation, imprudent liquidity management and imbalanced ALM,” it pointed out……………………………………….Full Article: Source
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From Pakobserver.net: Pakistan, Afghanistan and Senegal, among the world’s 50 poorest nations, are turning to Islamic banking to spur economic growth by encouraging people to take out loans and open savings accounts.
Outstanding domestic bank lending accounted for 3.5 percent of Afghanistan’s gross domestic product in 2008, 25 percent in Senegal, 27 percent in Nigeria and 46 percent in Pakistan, according to data compiled by the World Bank. The rates compare with 224 percent in the U.S. and 115 percent in Malaysia, a global hub for finance that conforms with Shariah principles……………………………………….Full Article: Source
Posted on 27 September 2010 by Laxman | Email|Print
From Bloomberg: Hong Leong Islamic Bank Bhd. and Manulife Asset Management (Malaysia) Sdn. say they are avoiding some toll-road Islamic debt in Malaysia after two highway operators submitted debt restructuring plans this year.
Senai-Desaru Expressways Bhd., the builder of Malaysia’s third-longest highway, plans to conclude talks on reorganizing 1.46 billion ringgit ($471 million) of debt by year end, Chief Executive Officer Mustaza Salim, said……………………………………….Full Article: Source
Posted on 27 September 2010 by Laxman | Email|Print
From Ameinfo.com: Fitch Ratings has today assigned an expected Long-term Rating of ‘A’ to QIB Sukuk Funding Limited’s senior unsecured trust certificates, due in 2015.
QIB Sukuk Funding Limited is a special purpose vehicle established to act as the issuer and trustee for the certificate holders. The final rating is contingent on receipt of final documentation conforming to information already received……………………………………….Full Article: Source
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From Bernama: Malaysia Rating Corp Bhd (MARC) has downgraded its rating on Vastalux Capital Sdn Bhd’s (VCSB) RM100 million Sukuk Musyarakah facility to BB+IS from A+IS and placed it on MARCWatch Negative.
VCSB is a special purpose company and wholly-owned subsidiary of Vastalux Sdn Bhd (Vastalux), incorporated for the purpose of issuing the Sukuk Musyarakah, largely to fund its working capital in relation to oil and gas service contracts awarded by the Petronas group, the rating agency said……………………………………….Full Article: Source
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From Nytimes.com: Fozia Amanulla, one of the first women to lead an Islamic bank in Malaysia, has had no shortage of reminders that her industry — in which investments are made according to Islamic principles — is a male-dominated one.
But while some women in more conservative corners of the Islamic world are still fighting for the right to work outside the home in the booming Islamic finance sector, the number of female faces is multiplying……………………………………….Full Article: Source
Posted on 27 September 2010 by Laxman | Email|Print
From Arabnews.com: Malaysia has introduced several measures to boost the development of human capital in the Islamic finance industry under the Malaysia International Islamic Finance (MIFC) initiative. Developing the next generation of Islamic finance executives and experts remains a major priority of the government and the Bank Negara Malaysia, the central bank.
Malaysian Prime Minister Mohd Najib bin Abdul Razak, in his capacity as the minister of finance, accorded the “Project of National Interest” (Projek Berkepentingan Negara) status to INCEIF University in July 2010 in recognition of its role in the development of the human capital for Malaysia’s growing Islamic finance industry……………………………………….Full Article: Source
Posted on 27 September 2010 by Laxman | Email|Print
From Reuters: A Middle East group led by Gulf Petroleum Ltd Qatar is looking to invest up to 5 billion ringgit ($1.4 billion) in Malaysia, as the country’s efforts in attracting the petrodollars appear to be paying off.
The group, which include investment and banking firms from Saudi Arabia, Kuwait, Bahrain and the United Arab Emirates, is eyeing investments in oil and gas, property and Islamic banking sectors, Gulf Petroleum President Abdul Aziz Hamad Al-Delaimi told reporters in the Malaysian capital on Monday……………………………………….Full Article: Source
Posted on 27 September 2010 by Laxman | Email|Print
From Albawaba.com: Though the Islamic finance industry has enjoyed rapid growth over the past few years despite the effects of the global financial slowdown, a key challenge is to ensure that this growth is sustainable, even more so given the challenges inherent in the new global economic landscape.
According to world-renowned investment leader and emerging markets guru, Mark Mobius, “since the bottom of the markets in early 2009, prices have risen from those very low levels. Nevertheless attractive valuations can be found since, on the average, those valuations are in the middle of their long term range.”………………………………………Full Article: Source
Posted on 27 September 2010 by Laxman | Email|Print
From Bernama.com: The Islamic Banking and Finance Institute Malaysia (IBFIM) and the Malaysia Venture Capital and Private Equity Association (MVCA) will host the 3rd Islamic Venture Capital and Private Equity Conference (IVCPEC) 2010 scheduled to be held from 28 to 29 September 2010 at Nikko Hotel Kuala Lumpur.
Arguably one of the most comprehensive coverage of the professional practice of Islamic Venture Capital firm, the Conference presents itself as a springboard for venture capitalists and private equity investors to keep abreast of international market trends and developments that impact the structuring and planning of Islamic alternative investments in the region……………………………………….Full Article: Source
Posted on 27 September 2010 by Laxman | Email|Print
From Independent.com.mt: The Malta Institute of Management is organising the “Malta Islamic Finance Conference: A New Beginning 2010” which will be addressing the latest challenges for Islamic Finance operations in a European jurisdiction.
For this landmark event various Scholars and Islamic Finance experts from different parts of the World are being invited as speakers, offering a unique opportunity for participants to keep adjourned with latest developments and guidelines……………………………………….Full Article: Source
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