Combining social principles with the power to provide financial assistance, Islamic microfinance has huge, untapped potential. Islamic finance is becoming one of the most rapidly growing segments of the global finance industry. There is growing interest from financial institutions in designing Islamic or “sharia-compliant” products and services to attract Muslim investors.
These products are designed to conform with Islamic financing principles that include linking transactions to tangible economic activities, excluding financial speculation and excessive uncertainty, and funding only socially productive activities, in addition to the well-known stipulation against charging or paying interest………………………………………Full Article: Source

When Dr. Sri Mulyani Indrawati, managing director of the World Bank claimed that “Islamic banking was a priority” for the bank, it showed that the industry is starting to gain credibility even at the top table of global banking. However it is a big ask for the industry to take the leap from what is fringe to mainstream.
Fundamentally, many Islamic institutions are prudently run - whether this is a direct result of Shari’ah compliance and its inbuilt prohibition on some of the more high-octane elements of casino capitalism, or whether Islamic bankers are a cut above is a hugely moot point………………………………………Full Article: Source

The concept of Islamic Finance is currently expanding globally at an astronomical rate and gaining grounds in various Islamic and non-Islamic markets alike. This is evident in a recent forecast by Moody’s rating agency, which estimates that the current size of the Islamic Banking Industry at the global level is $1 trillion, and could grow to $5 trillion over time.
Nigeria is disposed to this global trend, as relevant regulatory frameworks have in recent times been put in place to enhance the effective growth of the concept of Islamic Finance in the country……………………………………….Full Article: Source

The European Union is emerging as a major center of Islamic finance, based on Islamic Shariah law, and which critics say amounts to “financial Jihad” by Islamists intent on Islamifying the West.
The spectacular growth prospects for the Islamic financial services industry in many European countries is being fuelled by Muslim mass immigration; despite a difficult economic climate on the continent, Islamic banking is growing faster in Britain, France and Germany than it is in many Islamic countries in the Middle East and Asia……………………………………….Full Article: Source

The Grand Duchy is now making a play to become Europe’s leader in Islamic finance and has already assembled an impressive set of tools in its box, as Daud Vicary Abdullah, global leader for Islamic finance for Deloitte said: “I think that Luxembourg is going to be an important Islamic finance centre because there is a commitment from the regulators to become involved in Islamic finance and a close partnership between the public and private sector and whatever Luxembourg has turned its hand to in the past has always been successful.”
The Grand Duchy recently nosed ahead of London in terms of European domicile for Islamic funds, but this is hardly surprising as the country has a history of innovation and ‘firsts’ for Islamic finance……………………………………….Full Article: Source

Kazakhstan is considering issuing sovereign sukuk worth at least $500 million, Finance Minister Bolat Zhamishev said on Thursday.
“We are looking to issue Islamic bonds in order to fix a benchmark, but the prospects for this will depend on the market,” Zhamishev said on the sidelines of an economic conference in Astana……………………………………….Full Article: Source

An oversubscribed bond offering from a small Emirati bank shows that although the Gulf bond market remains subdued, there’s still demand out there, particularly for sharia-compliant investments.
Sharjah Islamic Bank had announced in March that it would seek capital to fund an expansion of the business. Initial reports suggested demand for the issue was strong……………………………………….Full Article: Source

Malaysia is said to be planning a 10- year dollar-denominated Islamic bond, its second sovereign sale of Shariah-compliant debt in a year, four people familiar with the matter said.
Three local investment banks submitted pitches proposing a size of $500 million to $1.7 billion, said the people who couldn’t be named as the matter is confidential. The deadline for the request for proposals from bankers has closed, they said……………………………………….Full Article: Source

Speculation Indonesia’s credit rating will be raised to investment grade may drive demand for the government’s second sale of global Islamic bonds.
“I’d be interested because there’s the possibility of an investment-grade rating,” Mohd Noor Hj A Rahman, chief executive officer at Kuala Lumpur-based OSK-UOB Islamic Fund Management Bhd., said in an interview May 12. “Indonesia is a big market with potential for economic growth.”………………………………………Full Article: Source

Bank Muamalat of Indonesia hopes to issue a global dollar denominated Sukuk worth between $50m and $100m before the end of the year.
Bank Muamalat is the second largest Islamic bank in Indonesia- as well as its oldest - and would use the funds to help implement its overseas expansion plans……………………………………….Full Article: Source

Bahrain’s Al Baraka Bank expects to sell $300 million worth of Islamic bonds by September as it looks to secure long-term financing to fund its expansion plans, its chief executive said.
Previous plans to issue Islamic bonds, or sukuk, were thwarted by the onset of the financial crisis and, more recently, the regional unrest, said Adnan Ahmed Yousif in an interview. The Islamic lender had previously announced plans for a $500m sukuk programme but had shelved that, he said……………………………………….Full Article: Source

Qatar Islamic Bank’s planned sale of Islamic bonds may benefit from the government’s backing of local banks ahead of the World Cup in 2022, helping keep yields near the sovereign benchmark rate.
QIB, the country’s largest Shariah-compliant bank, will sell sukuk maturing in more than five years to repay debt, acting chief executive officer Ahmad Meshari said on May 12……………………………………….Full Article: Source

Islamic banking takes a step closer to reality in Oman with approval from the central bank to establish Bank Nizwa to provide Shari’ah-compliant banking services inside the Sultanate.
A statement from the Central Bank of Oman (CBO) reported the approval for Bank Nizwa and went on to say that the CBO ‘will consider any application to open windows for Islamic banking by any bank operating in the Sultanate wishing to provide such services. This will be governed by the regulations stipulated in the Banking Law, as well as, the related CBO bylaws’……………………………………….Full Article: Source

Ebrahim Fayez Al Shamsi has stepped down as Chief Executive Officer of Emirates Islamic Bank, a statement to the Dubai Financial Market (DFM) said; no reason for his resignation was given.
Deputy Chief Executive Officer Abdulla Showaiter, who also acts as General Manager Corporate and Investment Banking has been appointed as Acting CEO by Emirates Islamic Bank……………………………………….Full Article: Source

The global financial crisis, which has troubled almost all nations around the world for the past two years, has helped Islamic participation banking gain more prestige worldwide, the top executive of Bank Asya, Turkey’s leading participation bank, said on Thursday.
Speaking at a Cihan TV Network program broadcast on Thursday morning, the bank’s general manager, Abdullah Çelik, noted that this increasing prestige has also translated into growing public interest in participation banks……………………………………….Full Article: Source

Emaar Properties said it will write off its investment in Dubai Bank, valued at about 172 million dirhams ($46.8 million), a move expected to further erode the company’s profits in the short-term, analysts said.
The decision comes after the Dubai government announced on Monday that it would take over the troubled Islamic lender, thereby completely diluting the holdings of Dubai Bank’s current shareholders……………………………………….Full Article: Source

Mohammed Abdullah, CEO of Sharjah Islamic Bank has announced that the bank will issue a global dollar-denominated Sukuk that will be listed on the London Stock Exchange.
The size of the issue will be decided “subject to market conditions” and market response after the investor road show which is taking place in the Middle East, Asia and Europe. HSBC and Standard Chartered have been appointed joint lead managers……………………………………….Full Article: Source

The Abu Dhabi National Islamic Finance (ADNIF), the Islamic finance and banking arm of NBAD, announced its sponsorship of 2011 ADNIF Grand Prix Blitz Chess Tournament, organised by Abu Dhabi Chess and Culture Club (ADCC).
2011 Abu Dhabi National Islamic Finance Grand Prix Blitz Chess Tournament begins on 29 May(Press Release)

Local news sources have claimed that the Malaysian Takaful market is on the cusp of a wave of M&As. The Malaysian Star quoted Ernst & Young’s Brandon Bruce Sta Maria, who said the smaller Islamic insurers will continue to be targets for foreign entities keen to enter Malaysia’s booming Takaful industry.
Since changes in January to ownership rules, allowing foreign firms to take up to a 70% stake in Malaysian insurers, large foreign insurers, including Axa and Fairfax, Zurich and Alliance have all staked claims in Malaysian insurance and Takaful firms……………………………………….Full Article: Source

ING Public Takaful Ehsan Bhd on Thursday launched its innovative investment-linked takaful plan, Takaful Salam. The company’s Chief Executive Officer, Saiful Yazan Ahmad said Takaful Salam aims to help ease the financial burden of those suffering illnesses.
“Due to rising medical costs, people afflicted by any critical illness, often find if difficult to bear the expenses for treatment if they do not have adequate protection……………………………………….Full Article: Source

Though Islamic finance has achieved significant growth in the last few years, it still represents only about one per cent of the total global banking assets.
As Islamic finance further expands its global scale, the Islamic financial markets still remain fragmented and insulated with little cross-border activities and that will be one of the key issues discussed at the World Islamic Funds and Financial Markets Conference, which will be organised in Bahrain on September 26 and 27……………………………………….Full Article: Source

Deep divisions over the future of Islam in Australia have emerged after calls for the adoption of sharia law in submissions to a federal parliamentary inquiry into multiculturalism.
Citing existing Government support for Islamic banking and laws governing halal meat - and backing from the Archbishop of Canterbury - Muslim organisations have urged recognition of the religious law to boost integration……………………………………….Full Article: Source