Albaraka Banking Group and Qatar Islamic Bank aim to acquire Sharia-compliant lenders in Indonesia as the central bank estimates the nation’s Islamic assets will increase by as much as 55 per cent this year.

Albaraka, Bahrain’s biggest publicly traded bank, plans to spend $100 million on an acquisition, Chief Executive Officer Adnan Ahmad Yousuf said in a March 28 interview in Istanbul. Asian Finance Bank Bhd, Qatar Islamic’s Malaysian business, has identified two or three lenders, while Standard Chartered Saadiq plans to open more branches at its Indonesian joint venture, according to the CEOs of the companies……………………………………..Full Article: Source

Islamic banking is growing rapidly in the aftermath of the global financial crisis, but it desperately needs a global set of standards that every country and institution accepts. Speaking to the Hürriyet Daily News in Istanbul, an expert says the Turkish Central Bank might ‘take the lead’ in this effort. ‘Risk has no religion,’ says Khalid Ferdaus Howladar of Moody’s, adding that he likes the Turkish term ‘participation bank’

Noting the often-contradictory interpretations of the principles of Islamic banking, Khalid Ferdaus Howladar, the vice president and senior credit officer of Moody’s in the Middle East, suggested that the Turkish Central Bank might “take the lead” in establishing a global standard that would help Islamic banking become more transparent……………………………………..Full Article: Source

A new potential revenue stream for independent financial advisers (IFAs) has been created with the availability of a Discretionary Portfolio Service (DPS) accredited by Islamic Bank of Britain (IBB) as Sharia compliant. The DPS is a service that provides a range of investment portfolios comprising Sharia compliant assets. The DPS allows IFAs to tap into a large pool of customers looking to maximise their wealth with Sharia compliant and ethical returns.

The service is provided by Praemium, the portfolio administration specialists. IFAs can offer this service to their clients by registering on the Praemium platform. Encouraged by the market potential the DPS offers, leading city IFA firm Radcliffe & Newlands is already offering its clients the service……………………………………..Full Article: Source

Noor Islamic Bank, as initial mandated lead arranger and book runner with ABC Islamic Bank, National Bank of Abu Dhabi and Standard Chartered Bank, has closed a $300 million (Dh1.1 billion) dual currency Islamic structured Murabaha syndicated facility for Bank Asya, one of Turkey’s leading Islamic banks.

The announcement marks Noor Islamic Bank’s second successful transaction for Bank Asya and the third for a Turkish bank in the last 12 months……………………………………..Full Article: Source

The Islamic Development Bank has granted a $222.7 million (156 million euros) loan to Albania for building a road linking the capital with the southern town of Elbasan, the finance ministry said Thursday.

“The loan will be used for financing the construction of the road between Tirana and Elbasan, with a total cost of $400 million and which will shorten the distance between our two towns to around 26 kilometres (15 miles),” the ministry said in a statement……………………………………..Full Article: Source

Following the line of Dubai Bank, Amlak Finance, an Islamic mortgage company, has agreed to waive the additional rental payment for the period beyond “the expected date of delivery” for a project in Dubailand.

In an email sent to an investor on earlier this month, and seen by Emirates 24|7, Amlak said: “We are pleased to inform you that the additional rental payment will be calculated till official completion date as per the sales and purchase agreement and the permitted extension; ie December 31, 2009.”…………………………………….Full Article: Source

Qatar National Bank (QNB), the Gulf state’s largest lender by market value, posted a 34.8 percent rise in first-quarter net profit on Wednesday boosted by strong loan growth and a jump in interest income.
Net profit in the three months to March 31 rose to QR1.7bn ($467.3m), the company said in a statement, compared with QR1.27bn in the prior year period……………………………………..Full Article: Source

Islamic banks extend investment (Credit/ Loans & Advances) under different modes. Under trading modes they can sell commodities on credit to its clients at a profit over cost price. Our topic would be to talk about their recording procedure thereon.
As usual, a sale in the book of bank is recorded in the name of the purchaser in the form of respective investment account, say, Murabaha (Muajjal) for the sale price. Bank records it to the debit of the concerned investment account with corresponding 2 entries, separately for cost price and the profit ……………………………………..Full Article: Source

Indonesian finance ministry planned to sell Islamic bonds or “Sukuk” in auctions on April 12 with the target to raise one trillion rupiah (some 115,407 million U.S. dollars), the ministry said in a statement here Wednesday.

The proceeds would be used to plug budget deficit this year. The four series of the bonds has maturity of 6, 14, 19 and 24 years, with yields at 9, 10 and 10.25 percents……………………………………..Full Article: Source

Dubai’s Department of Finance on Thursday said it would raise $800 million (Dh2.9 billion) by monetising road toll receipts and will use proceeds to fund infrastructure projects in the emirate.

A press statement said the dual currency, six-year financing, would support the Roads and Transport Authority’s infrastructure projects and was expected to have a conventional and Islamic tranche……………………………………..Full Article: Source

Financial institutions, banks and insurance companies in Bahrain have been urged to spare no effort to revitalise the economy. His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa made the call as he received heads of banks and insurance companies.

He urged them to do all they can for Bahrain to preserve its financial and banking hub status in regional and global arenas……………………………………..Full Article: Source

Now might not be the best time to sell Americans on the benefits of Islamic finance. American military forces are bogged down in three Muslim countries and Congress is holding hearings on the potential threat to the U.S. posed by radical Islamists.

Yet shrewd investors know that emotion-filled decisions can be the ruination of any portfolio. Which is why sukuk – Islamic bonds – are among their newest investments despite the current political climate here and abroad……………………………………..Full Article: Source