Posted on 17 February 2011 by Laxman | Email|Print
From Euromoney.com: Although Islamic finance has performed better in Asia than in the Middle East, the sector faced one of its tougher years in 2010. The industry’s future is not secured yet, and the boasts of the boom years have been replaced by introspection and a focus on sustainability.
Bankers involved in Islamic finance have become a more subdued bunch of late. After the sub-prime crisis they bragged about how the Shariah ban on interest and other Islamic prohibitions had shielded their businesses from toxic structured debt securities……………………………………….Full Article: Source
Posted on 17 February 2011 by Laxman | Email|Print
From Reuters: Kuwait-based Gulf Investment Corporation (GIC) has launched a 500 million ringgit ($164 million) sukuk issue in Malaysia as part of an existing funding programme, one of a growing number of Middle East issuers to seek alternative sources of funding.
GIC, which was set up to drive private enterprise and economic growth in the Gulf region, had earlier established a 3.5 billion ringgit sukuk programme in the Southeast Asian country……………………………………….Full Article: Source
Posted on 17 February 2011 by Laxman | Email|Print
From Bloomberg: South Korea will renew its push to allow tax exemptions on Islamic bonds issued by companies to help local borrowers tap growing Muslim wealth.
The government’s “top priority” at a parliament session starting on Feb. 18 will be to pass a bill on Islamic bonds and another to impose a levy on banks’ foreign-currency debt, Park Cheol Kyu, deputy minister for planning & coordination at the finance ministry, said by telephone today from Gwacheon, south of Seoul……………………………………….Full Article: Source
Posted on 17 February 2011 by Laxman | Email|Print
From Arabianbusiness.com: Investment Dar Co’s agreement to change Shariah-compliant debt terms last week may help revive sukuk sales after their 2010 tumble. The Kuwaiti owner of half of Aston Martin Lagonda reached an accord with creditors to pay KD1bn ($3.6bn) of Islamic bonds and loans over as long as eight years.
The company’s debt climbed to a bid price of 38 cents on the dollar from 33 cents before the agreement was reached, according to London-based investment bank Exotix Ltd. Moody’s Investors Service says the case sets a “good precedent” for Islamic bond restructurings worldwide……………………………………….Full Article: Source
Posted on 17 February 2011 by Laxman | Email|Print
From Reuters: A planned $1 billion Bahrain sovereign bond issue is likely to be delayed as anti-government protests shook the Gulf Arab kingdom on Wednesday while jittery investors, worried about their exposure, sold off state bonds.
Bahrain’s debt insurance costs hit fresh 18-month highs on Wednesday as thousands of Shi’ite protestors, inspired by popular revolts that toppled rulers in Tunisia and Egypt, poured into Bahrain’s capital to mourn for a second demonstrator killed in clashes this week……………………………………….Full Article: Source
Posted on 17 February 2011 by Laxman | Email|Print
The Central Bank of Bahrain (CBB) announces that the monthly issue of the short-term Islamic leasing bonds, Sukuk Al-Ijara, has been oversubscribed by 680%.
Subscriptions worth BD68 million were received for the BD10m issue, which carries a maturity of 182 days……………………………………….Full Press Release: Source
Posted on 17 February 2011 by Laxman | Email|Print
From Reuters: A long-touted Islamic megabank has received approval from Bahrain and a preliminary green light from Malaysia to begin operations, an organizer said on Wednesday.
Saudi Arabia’s Sheikh Saleh Kamel — who is founder and chairman of Bahrain-based Islamic bank Al Baraka BARKA.BH and spearheaded the megabank initiative — said the venture is still in discussions with Qatar to obtain a licence……………………………………….Full Article: Source
Posted on 17 February 2011 by Laxman | Email|Print
From Arabianbusiness.com: Bahrain, the Middle Eastern country with the largest number of Islamic banks, has no plans to shut the Islamic units of commercial banks, said Abdul Rahman Al Baker, executive director of financial institutions supervision at the Central Bank of Bahrain.
“We are allowing Islamic lenders for a long time,” he said in said in Abu Dhabi on Wednesday. “Conventional banks add value to Islamic banking.”………………………………………Full Article: Source
Posted on 17 February 2011 by Laxman | Email|Print
From Gulf-times.com: The Qatar Central Bank has highlighted the ‘overlapping of non-Islamic and Shariah activities’ of conventional banks, which QCB said created difficulties for them to manage their risks.
“Islamic finance is characterised by certain risks of more diversified and complex nature than conventional financing, particularly with regard to the return, liquidity, credit and market risks relating to Mudaraba, Musharaka, Istisnaa and Ijara finance methodologies,” QCB said in a recent note……………………………………….Full Article: Source
Posted on 17 February 2011 by Laxman | Email|Print
From Gulf-daily-news.com: Qatar’s central bank will meet conventional banks to discuss options for their Islamic operations, including pooling Islamic assets into a newly created Islamic bank, a Qatari newspaper said yesterday.
Under the proposal, conventional banks, which were told by the central bank to close their Islamic operations by the end of the year, would move their Islamic assets to a new Islamic bank and stakes in the bank would be set by deposits and funds transferred, the daily Al Sharq said, citing banking sources……………………………………….Full Article: Source
Posted on 17 February 2011 by Laxman | Email|Print
From Onislam.net: Eyeing a share in the booming Islamic banking, the largely Christian Uganda is mulling new amendments in its financial system to allow Islamic banking services.
“We’ve been studying amendments to the current banking rules to allow Islamic banks to own assets,” Titus Mulindwa, deputy legal counsel at Bank of Uganda, told the Nigerian paper The Nation on Wednesday, February 16……………………………………….Full Article: Source
Posted on 17 February 2011 by Laxman | Email|Print
Ajman Bank, an award-winning financial services institution committed to transforming the experience of Islamic banking, announced today that has entered into a strategic partnership with Manazel Real Estate PJSC, one of the UAE’s leading real estate developers.
The agreement, which will see Ajman Bank provide Islamic home finance to customers, was signed in a ceremony by Mr. Ali Al Nuaimi, Deputy CEO of Ajman Bank, and on behalf of Eng. Mohamed M. Al Mazrouei, CEO of Manazel, Mr. Saeed Al Khazaraji, Head of Support Services……………………………………….Full Press Release: Source
Posted on 17 February 2011 by Laxman | Email|Print
From Arabnews.com: Saudi businessmen will establish a development bank in Egypt with a capital of 1 billion Egyptian pounds to finance investment projects in the country, Saleh Kamel, a prominent businessman and chairman of the Council of Saudi Chambers of Commerce and Industry announced on Wednesday.
Kamel, who is also chairman of the Jeddah Chamber of Commerce and Industry, said details about the bank would be announced within two months, adding that it would make long-term investments in Egypt creating new job opportunities for Egyptians……………………………………….Full Article: Source
Posted on 17 February 2011 by Laxman | Email|Print
From Reuters: Bahrain may be tiny, and fairly insignificant as an oil producer, but nearly $10 billion parked in mutual funds in the kingdom mean plenty is at stake if protests inspired by Egypt and Tunisia spiral out of control.
It is the Gulf Arab state seen as most vulnerable to unrest because of deep-rooted discontent among its majority Shi’ite population against the ruling Sunni dynasty, the al-Khalifas. The populace complains of economic hardships, lack of political freedoms and discrimination in jobs in favor of Sunnis……………………………………….Full Article: Source
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