Posted on 31 December 2010 by Laxman | Email|Print
From Voanews.com: In India, the launch of a new share index of companies which meet the Islamic legal code has opened new investment opportunities for Muslims. India is a predominantly Hindu country, but it has one of the largest Muslim populations in the world.
India’s stock market has grown rapidly in recent years. But trading in stocks has posed a problem for Muslims, because of restrictions imposed by Islamic law, which does not allow investment in companies that sell goods such as alcohol and tobacco, or those which charge interest…………………………………….Full Article: Source
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From Abcnews: The Bombay Stock Exchange has launched a new stock index of companies that are compliant with the Islamic legal code, encouraging Muslims to invest in India’s fast-growing stock market. Islamic law imposes restrictions on investing in companies that charge interest and those that sell products such as alcohol, weapons or tobacco.
The index, called BSE TASIS Shariah 50, is composed of the 50 largest and most liquid stocks that adhere to Islamic law. The companies were chosen by the Taqwaa Advisory and Shariah Investment Solutions (TASIS), a Mumbai-based Islamic finance firm whose board members include legal experts and Islamic scholars…………………………………….Full Article: Source
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From Arabnews.com: The reported failure of the strategy and finance committee of the South Korean National Assembly chaired by Kang Ghil Boo in December to approve a finance bill introduced by the Ministry of Finance which would have given tax neutrality to alternative financial products such as sukuk (Islamic securities) is a wake-up call for the global Islamic finance industry.
The Ministry of Finance had proposed a revision to the taxation regulations with the aim of affording sukuk the same tax relief as conventional bonds to ensure that South Korean issuers would receive the same tax advantages as those applied to conventional bond issuers…………………………………….Full Article: Source
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From Gulf-times.com: Yemen, hit by rising security concerns and economic woes, will increase a planned 2011 Islamic bond to $500mn, the impoverished country’s finance minister said yesterday, but investors will have to pay high premiums.
Yemen had originally planned to raise about $250mn to $300mn from Islamic bonds, or sukuk, to diversify government financing and help lower a budget deficit currently running at around 8% of gross domestic product…………………………………….Full Article: Source
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From Reuters: Troubled property developer Nakheel said on Thursday that it would repay its $750 million Islamic bond that matures next month, following funds being made available by Dubai.
The company said in a statement to emirate’s bourse that sufficient funds has been made available by the Dubai Financial Support Fund for repayment of the Islamic bond that is due on Jan 16, 2011…………………………………….Full Article: Source
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From Bloomberg: Dubai shares advanced for a second day as Nakheel PJSC, the developer of palm-shaped islands off the city’s coast, said it received funds from the Dubai government to repay Islamic bonds maturing in January.
Emaar Properties PJSC, the United Arab Emirates biggest property developer, gained the most since Nov. 9. Arabtec Holding Co., the biggest construction company in the U.A.E. by market value, gained 1.6 percent. The DFM General Index advanced 0.5 percent to 1,630.52 at the 2 p.m. close in the emirate. The measure retreated 9.6 percent this year, its worst annual performance since 2008…………………………………….Full Article: Source
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From Thenational.ae: A brightening global economic outlook and a shift in investor appetite towards emerging market debt helped to spur US$32.6 billion (Dh119.74bn) of bond sales in the Gulf this year.
That was down from the $42.9bn borrowed by companies and governments from investors last year, according to Bloomberg data. But it was still more than double the $15bn of bond sales in 2008 during the worst stretch of the financial crisis…………………………………….Full Article: Source
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From Bloomberg: The following borrowers are expected to sell Islamic bonds, which use asset returns to pay investors to comply with the religion’s ban on interest. Global sales of sukuk fell 24 percent to $15.3 billion so far this year from the same period in 2009, according to data compiled by Bloomberg.
Issuance totaled $20.2 billion last year, up from $14.1 billion in 2008…………………………………….Full Article: Source
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From Cpifinancial.net: MARC said it has downgraded its rating on Vastalux Capital Sdn Bhd’s (VCSB) MYR 100 million Sukuk Musharaka facility to DIS from BB+IS following VCSB’s failure to redeem the remaining outstanding MYR 3.96 million of Sukuk on the final redemption date of 23 December 2010.
VCSB had redeemed MYR 21.04 million of MYR 25 million of outstanding Sukuk on 10 December 2010, prior to the final redemption date. VCSB had earlier proposed to restructure the Sukuk but had been unable to complete the restructuring prior to the final redemption date…………………………………….Full Article: Source
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From Pakobserver.net: Qatar’s largest investment bank QInvest sees Islamic bond issuances continuing to gain momentum in 2011 while initial public offerings may also see some revival, the company’s chief executive said.
Shahzad Shahbaz said the firm is working with potential issuers in Qatar who are looking to tap the Islamic bond, or sukuk, market in 2011 after Qatar Islamic Bank’s oversubscribed $750 million sukuk demonstrated growing appetite and set a benchmark for other corporates to raise capital on favorable terms…………………………………….Full Article: Source
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From Btimes.com.my: The year 2010 saw the expansion of Islamic finance in Malaysia as the Islamic banking, takaful and Islamic capital market grew, in line with the economic recovery. During the year, the country strengthened its position as a global hub for Islamic finance, supported by the Malaysia International Islamic Financial Centre (MIFC) initiative.
The highlight of the achievements in the local Islamic finance sector last year (2010) has to be the recognition given to Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz locally and abroad…………………………………….Full Article: Source
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From Arabnews.com: Malaysian Prime Minister Mohd Najib Tun Abdul Razak last week reiterated in the Dewan Rakyat (the Parliament) that the country’s New Economic Policy (NEP), which promotes the economic empowerment of the indigenous peoples and the Bumiputeras (Malays) and their poverty alleviation through affirmative action, will continue and is still relevant today.
The NEP was first introduced in 1971 by no other person than the father of Najib, the much-revered late Tun Abdul Razak Hussein, Malaysia’s second prime minister since independence from the British…………………………………….Full Article: Source
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From Thestar.com.my: There are roughly 1.3 billion Muslims in the world, with 138 million in India and roughly 30 million in China. These are growing markets in terms of income and wealth. As the Muslim community seeks to invest in interest-free banking, Islamic funds have been growing in leaps and bounds.
Today, there are roughly US$800bil in Islamic banking funds, US$100bil in the sukuk (or Islamic bond) market and another US$100bil in takaful (Islamic insurance) and fund management business. Hong Kong, of course, introduced the Hang Seng Syariah Compliant China Index Fund in 2008 to attract Muslim investors…………………………………….Full Article: Source
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From Kippreport.com: Islamic lenders operating in the United Arab Emirates have so far invested 3.5 billion dirhams ($954 million) in sharia-compliant certificate of deposits, a central bank official said in published remarks.
Proceeds from such Islamic certificates were very close to the revenue of conventional instruments in which commercial banks invest, Seif al-Shamsi, executive director for the treasury department at the UAE Central Bank, told the Arabic language daily Al-Khaleej…………………………………….Full Article: Source
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From Reuters: Malaysia’s central bank said on Wednesday it was still reviewing offers to set up mega Islamic banks, suggesting it could miss its target of awarding a licence this year as the industry struggles to create a well-capitalised sharia lender.
Bank Negara Malaysia is offering up to two new Islamic banking licences to foreign firms to set up banks with at least $1 billion of paid-up capital, a move that the industry hopes will spur more lending and create bigger Islamic banks that can compete with global lenders…………………………………….Full Article: Source
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From Tradearabia.com: Kuwait’s central bank denied a request by Islamic lenders to grant them exceptions from liquidity ratio requirements and allow for the withdrawal of excess liquidity, a newspaper reported on Tuesday.
Kuwaiti Arabic daily Al-Rai said this was the second time the country’s central bank rejected such a proposal - a move some banks say put them at a disadvantage to conventional banks…………………………………….Full Article: Source
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From Arabianbusiness.com: Bahrain’s Ithmaar Bank has signed a five-year $167m Islamic loan facility with Ahli United Bank, it said on Monday, marking its return to the credit markets since the financial crisis.
Hit by a 2008 regional real estate crash and a freeze in financing, Ithmaar had suffered heavy losses in 2009. In October 2009 the company said it planned to raise between $400m to $500m to repair its balance sheet, through a rights issue and by placing a convertible Islamic bond…………………………………….Full Article: Source
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From Poten.com: The last few years have been volatile for banks around the globe, but Islamic banking has managed to steer a more steady course and is growing fast. The sector is worth billions of dollars and, according to some estimates, has grown by 20 per cent.
The concept of Islamic banking is based on making profit through trade rather than interest, which is against Islamic religious law. Almost every bank in Qatar is boasting its Islamic credentials, and they are not alone…………………………………….Full Article: Source
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From Pakistantimes.net: A meeting of experts at the Islamic Development Bank (IDB) urged member countries to fulfill their pledges to the capital of the Islamic Solidarity Fund for Development (ISFD), which was established for poverty alleviation in the Islamic world.
The two-day meeting came up with a number of recommendations including establishment of a group of eminent figures to act as a high- level advocacy and resource mobilization vehicle for the ISFD, which will be mandated to undertake road shows for mobilizing resources for the fund…………………………………….Full Article: Source
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From Tradearabia.com: Emirates NBD has been ranked the largest bank in the Middle East by Global Finance, which also recognised Emirates NBD as one of the top 50 banks across all international emerging markets.
These independently compiled rankings by Global Finance, a monthly magazine headquartered in New York, confirm the status of Emirates NBD as the leading bank in the region – and as an increasingly significant presence globally at a time when key emerging markets continue to drive the global economy out of recession…………………………………….Full Article: Source
Posted on 31 December 2010 by Laxman | Email|Print
From Znbc.co.zm: The Central Bank has developed a framework for supervision of Islamic Banking in Zambia. Islamic Banking is a system which offers interest free loans to customers. Central Bank Governor Caleb Fundanga says the Bank has also trained staff in Islamic banking.
Dr. Fundanga says is also still waiting for the private sector to come forth and apply to establish an Islamic Bank in Zambia…………………………………….Full Article: Source
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From Daily-mail.co.zm: Bank of Zambia (BoZ) governor Caleb Fundanga has challenged local and foreign financial institutions to submit proposals to the bank for consideration on the operation of Islamic banking in Zambia.
Islamic banking is a financial service that meets the requirement of Shariah or Islamic law. It is designed to meet specific religious requirements of Muslims and there is no interest charged…………………………………….Full Article: Source
Posted on 31 December 2010 by Laxman | Email|Print
From Cpifinancial.net: Dubai Islamic Bank (DIB) said it has made some “strategic appointments” to support its growth and expansion strategy. Under the new management restructure, Dr. Adnan Chilwan has been appointed Deputy CEO - Chief of Consumer and Wholesale Banking, while Mohammed Al Nahdi has been appointed Deputy CEO - Chief Operating Officer.
“Addressing the needs of a constantly changing environment, the bank recognises the significance and value of streamlining its operations. Hence, it has announced the formation of a Business Group and a Support Group to ensure the successful implementation of its strategy through an effective organisation structure,” the bank said…………………………………….Full Article: Source
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From Tradearabia.com: Ithmaar Bank, an Islamic retail and commercial bank, and Ahli United Bank (AUB), a full commercial bank based in Bahrain, have signed a $167 million (BD63 million) five-year secured Morabaha facility. The Morabaha facility (Sharia-compliant Islamic finance) is fully underwritten by Ahli United Bank.
The transaction marks the return of Ithmaar Bank to the credit markets after its reorganisation and transformation into an Islamic retail-focused bank earlier this year…………………………………….Full Article: Source
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From Ahram.org.eg: Islamic insurance has been steadily growing as a “Halal” alternative for commercial insurance that some believe to be illegal and risky. “If you want to invest in Halal items, with fair interest. If you want to insure your home without opposing God, come and let’s all cooperate and invest in Halal.”
So reads a statement on the facebook group page of Saudi Egyptian Insurance House, one of Egypt’s takaful insurance companies, in Latin letters…………………………………….Full Article: Source
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From Tradearabia.com: T’azur Company, the Bahrain-based Islamic insurance company, was honoured with the prestigious ‘Best Takaful Operator’ award by CPI Financial, the international magazine for Islamic Business & Finance.
“We are deeply honoured to receive this award. This is another confirmation of t’azur’s financial stability, high level of service standards together with a highly competitive product range,” said t’azur’s chairman of the board of directors, Sheikh Dr Abdulaziz Bin Naif Al Orayer…………………………………….Full Article: Source
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From Bernama: Prudential BSN Takaful Bhd (PruBSN) has launched the PruBSN Ummah, a first of its kind product aimed at Muslims.
“We are very pleased with the response to PruBSN Ummah. Our products are designed with our consumers in mind and are packaged with our customers’ interests and needs at heart,” said PruBSN chief executive officer Azim Mithani…………………………………….Full Article: Source
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