Emirates Telecommunications Corp’s $8bn bond and sukuk program is on hold and won’t be used this year, Chairman Mohammed Omran said Monday in Amman.
The company, known as Etisalat, will revisit a plan to seek Syria’s third mobile telephone license if terms were changed, he said. Etisalat, the Middle East’s largest telephone operator, will focus on the expansion of networks in the United Arab Emirates, Saudi Arabia and Egypt and not acquisitions and new licenses, he said at a conference……………………………………….Full Article: Source

Egypt will issue its first Islamic debt guidelines and amend its capital market law in a drive to spur Arab investment and open itself to investment from the Persian Gulf and Southeast Asia. The move will allow oil-rich countries to invest in the roughly 180 companies listed on the Egyptian stock market.
“The Board of Directors for the Egyptian Financial Supervisory Authority (EFSA) has issued today its initial approval of the amendment proposal to the Capital Market Law No. 95 of 1992 that involves issuance and organising Islamic Bonds [sukuk],” says a statement published by the financial watchdog………………………………………Full Article: Source

In simple terms, sukuks can be considered the Islamic equivalent of conventional bonds, although the concept and structuring for both are very different. For Oman’s economy, sukuks represent a new source of funds for sovereign entities, corporates and small and medium size enterprises. They are currently in high demand given the growing Islamic wealth pool with banks, high net worth individuals, takaful companies, fund managers and general public.
Sukuks are asset-backed, income generating, tradable, Sharia compliant investment product……………………………………….Full Article: Source

Hoping to attract Arab capital, Russia will take its first step into the world of Islamic finance in June by issuing sukuk, Islamic bonds which comply with Muslim religious rules. The bonds are to be issued by the majority Muslim Russian republic of Tatarstan in the Volga region, which has embarked on an ambitious drive to attract foreign investment.
“Russia will show that it can be interesting for Muslim countries,” one of the project bankers, Linar Yakupov told AFP………………………………………..Full Article: Source

Once touted as a viable alternative to traditional banking, Islamic finance has failed to make a mark outside its core markets as countries from Britain to Hong Kong and Australia put on hold sukuk issuance plans and proposed regulatory changes to accommodate sharia banking.
Its reputation stained by Dubai’s $26 billion debt crisis in 2009, Islamic finance is struggling to attract investors’ attention with emerging markets flush with funds, in contrast to 2008 when the global crisis shut down credit markets and prompted a search for alternative sources of finance………………………………………..Full Article: Source

The $1 trillion Islamic banking industry has stalled while legal uncertainties cloud the role of sukuk (a form of Islamic bonds) as funding tools, according to top banking officials that will meet to discuss these issues in Singapore this week.
When the global crisis hit in 2008, Islamic banking was hailed as a viable alternative to conventional banking, prompting investors to search for alternative sources of finance………………………………………..Full Article: Source

Malaysia is ready to cooperate with Kazakhstan in the sphere of Islamic financing. Prime Minister of Malaysia Najib Razak made it public.
‘One of the spheres we have defined for cooperation is Islamic banking. There is great interest from Kazakhstan Government in experience of Malaysia in development of Islamic banking,’ Najib Razak said it at the press conference upon the completion of the talks with President of Kazakhstan Nursultan Nazarbayev………………………………………..Full Article: Source

Assets and liabilities held by Islamic financial institutions within the United Arab Emirates (UAE) reached AED 269 billion ($73.1 billion) as at the end of 2010, equivalent to 17 per cent of the total assets and liabilities of the country’s banking system.
The number of Islamic banks operating in the UAE now stands at eight (not including those conventional institutions operating Islamic ‘windows’) with some 260 branches………………………………………..Full Article: Source

Doha Islamic, Doha Bank’s Islamic banking window, has been certified with ISO 9001:2008 certification for its Quality Management System. Doha Bank is the first in Qatar to obtain this certification for its Islamic Banking division.
“The certification marks yet another milestone in Doha Bank’s progressive growth, in ensuring superior quality services to its customers,” the bank said………………………………………..Full Article: Source

A $5bn railway plan to transform Jordan into a centre for regional trade and commerce received a major boost recently when the Islamic Development Bank (IDB) announced that it is in talks with global financial institutions to fund the mega-project.
The IDB said on May 27 that it was working with the World Bank and the European Investment Bank on the deal………………………………………..Full Article: Source

Al Amanah Islamic Investment Bank of the Philippines (Amanah Islamic Bank) is co-financing an P80-million term loan for the General Santos City Water District.
The Development Bank of the Philippines (DBP) is the co-financier of the project that plans to provide potable and affordable water supply in the progressive city. DBP is the majority stakeholder of Amanah Islamic Bank………………………………………..Full Article: Source

Pointon York has launched a range of Shari’ah-compliant Self-Invested Personal Pensions (SIPPs) to meet growing demand from UK Muslims for a suitable retirement vehicle. The specialist SIPP provider is the first to receive Shari’ah-compliant accreditation by the Islamic Bank of Britain (IBB) for its full range of SIPPs.
Sultan Choudhury, Commercial Director, IBB said, “People are being alerted to the risks of not putting enough aside in pensions for their retirement. British Muslims in particular have had very limited choices of Shari’ah-compliant products to invest within their pensions………………………………………..Full Article: Source

With a robust regulatory and legal framework, the Malaysian Takaful industry has demonstrated strong continued growth and is now positioned as one of the largest Takaful markets in the world with an estimated 26% percent of global Takaful assets.
A recent report published by Bank Negara Malaysia noted that the Malaysian Takaful industry has experienced a compound average growth rate of 27% per annum in terms of net premium contributions, with family Takaful policies leading the way. Family Takaful grew 28% annually over the last 5 years and now represents more than 80% of Malaysia’s total Takaful market. (Press Release)

Contrary to common perceptions, insurance as a concept is acceptable under Sharia financial principles. However, similar to the banking system, Islamic financial laws do have reservations on the way the conventional insurance business is practiced and the way the rights and obligations of different parties are defined under conventional insurance.
Conventional form of insurance is prohibited under Islamic law since it contains elements of riba (interest), gharar (uncertainty) and maysir (gambling)………………………………………..Full Article: Source