Jordan’s Capital Bank has completed the sale of a $120 million Islamic bond, or sukuk, to Saudi Arabia’s Rajhi Cement to finance the firm’s capital expansion projects in the kingdom, bankers said on Wednesday.
The sukuk transaction, the first of its kind in the kingdom, was made possible despite the absence of local laws for issuance of sukuk that allow a borrower to forgo title to assets or property when they borrow as required under Islamic compliant Sharia-terms……………………………………….Full Article: Source

There is one advantage to Islamic finance that other banking niches can’t quite claim. “Islamic finance is the completion of a person’s identity,” said Fares Mourad, head of Islamic banking at Bank Sarasin. “A Muslim client may feel the need to have financial transactions permissible by Islamic law, if everything else in life follows the Islamic way.”
Islamic banking provides products and services that comply with Islamic, or Sharia, law. Broadly, Islamic finance tries to include concepts of social benefits of the individual and the overall wellbeing of society into banking and financial transactions……………………………………….Full Article: Source

The Qatari Central Bank , has recently announced its decision in relation to closing the “Islamic banking windows” of commercial banks. It is too early to foresee the impact of this decision on the Qatari banking sector and existing costumers of commercial banks which provide Islamic banking products.
According to a memo issued by the QCB following its decision, all commercial banks which have Islamic branches have been requested to stop opening new Islamic branches, accepting Islamic deposits and dispensing new Islamic finance operations……………………………………….Full Article: Source

The Arab banking conference which concluded here yesterday has asked the Islamic banking industry to follow international standards and rules regarding capital adequacy and transparency.
It is important that the Islamic banking industry adheres to Basel III, Arab bankers said at the close of their two-day convention……………………………………….Full Article: Source

The Islamic banking community needs to focus on financial planning, according a report launched by Bank Sarasin in Bahrain. It also calls for the industry to move forward by developing the Sharia framework, diversifying products and differentiating its offerings.
Bank Sarasin’s Islamic Wealth Report 2011 provides investors with an in-depth overview of developments in the Islamic wealth arena in 2010 and explains how best to manage assets according to religious requirements……………………………………….Full Article: Source

Global leaders in Islamic finance gathered this week at the Amanie-Failaka Symposium and Failaka Islamic Fund Awards, held at the Intercontinental Hotel in Abu Dhabi, which drew key decision-makers from some of the world’s biggest Islamic financial institutions and Islamic divisions of some of the world’s largest banks.
“The Amanie-Failaka Symposium and Failaka Islamic Fund Awards are extremely valuable events in terms of bringing together leading fund managers and bankers who are active in this space,” said Mark Smyth, Managing Director, UAE-based Failaka Advisors……………………………………….Full Article: Source

The asset base of Islamic banking industry expanded by 30 percent to Rs477 billion in 2010 from Rs366 billion in 2009, State Bank of Pakistan (SBP) said in a report.
Their non-performing finances (NPF) increased by 38.2 percent to Rs13.8 billion from Rs10 billion in 2009, the report added……………………………………….Full Article: Source

Dr Zeti Akhtar Aziz has been reappointed Governor of Bank Negara Malaysia (Malaysia’s Central Bank) for another five-year term, effective May 1.
She spearheaded the development of Islamic finance domestically and globally, and participating in efforts to enhance the contribution of small and medium enterprises to the country’s economy……………………………………….Full Article: Source

Dr. Ahmed Mohamed Ali, President of the Islamic Development Bank Group and Prof. Andrew D. Hamilton, Vice Chancellor of the University of Oxford recently signed a Memorandum of Understanding with the Oxford University to launch the Islamic Development Bank-University of Oxford Clarendon Scholarships.
The signing of the MoU took place at the University of Oxford in presence of senior officials and dignitaries of the University of Oxford and IDB, together with a number of beneficiaries of IDB scholarships currently studying in UK universities……………………………………….Full Article: Source

Capital Intelligence (CI), the international credit rating agency, announced today that it has affirmed Qatar Islamic Bank’s (QIB’s) Long-Term and Short-Term Foreign Currency Ratings at ‘A’ and ‘A2′, respectively.
The ratings are based on the Bank’s intrinsic financial strength and, as is the case with other Qatari banks, a very high level of support from the highly rated State of Qatar (CI Long-Term and Short-Term Sovereign Ratings of ‘AA-’ and ‘A1+’). The Support Rating of ‘2′ is also affirmed, as is the Financial Strength Rating (FSR) of ‘A’. All Ratings carry a ‘Stable’ Outlook……………………………………….Full Article: Source

Sukuk (the Arabic word for legal instrument or a name for a financial certificates) is Islamic equivalent of bonds. Islamic finance does not recognize fixed income or income bearing bonds, as such sukuk securities are structured to comply with Islamic laws and investment principles, which does not allow charging or paying of interest.
Financial assets which comply with Islamic finance can be classified in accordance with tradability in the secondary markets. It is asset class that enables organizations to raise capital in a shariah compliant manner………………………………………Full Article: Source

Where there is more opportunity for growth is in the development of Islamic financial products. Takaful is a particular area where the UAE could lead the way. It will have to battle through structural problems that still exist, however, such as the general lack of popular understanding of shari’a-compliant products and the shortage of suitably qualified shari’a scholars.
In the second half of 2010, Salama and Aman accounted for AED329mn of the AED619mn growth from H110 in gross written premiums achieved by the listed Emirati companies for which reports were available. (Press Release)

Islamic Finance Kuwait stands out for the local importance of its takaful insurance providers. Despite the general underdevelopment of the Kuwaiti insurance sector, official resources are mobilised to promote Islamic finance, ensuring continued growth.
Forecasts suggest there is little appetite for change in the short term, with foreign investors largely steering clear of any fresh investments in the country’s insurance industry. Recent results point to growth in premiums of 18% for 2010 as a whole. This compares favourably with the 8% growth achieved by the same companies in 2009. (Press Release)