Islamic trade finance has benefitted from shifting preferences towards Sharia-compliant banking and could serve as one of the key growth drivers to help the nearly $1 trillion Islamic finance industry double in size.
The global Islamic finance industry, which has been growing between 15 to 20 percent a year, is widely expected to reach $2 trillion in the next three to five years………………………………………..Full Article: Source

Islamic finance is growing at an average annual rate of 20 per cent and is one of the fastest growing sections of the finance industry. That was the claim by World Islamic Banking Conference managing director David McLean at the opening of the two-day Second Annual World Islamic Banking Conference: Asia Summit (WIBC Asia 2011) in Singapore.
Today there are more than 600 financial institutions operating in more than 75 countries,” he said. “The increasing presence of Islamic financial institutions in new jurisdictions and the increased international interest in Islamic financial markets represents a tremendous opportunity for cross-border flows that are Sharia-compliant………………………………………..Full Article: Source

Strong oil prices will spark renewed interest in Islamic finance but the $1 trillion industry is unlikely to garner broad acceptance in the long term, eclipsed by the products and pricing offered by conventional banks.
With oil at over $100 a barrel, investors are expected to flock to Islamic finance in hopes of another Gulf petrodollar boom, similar to 2008 when record energy prices propelled the industry into the global spotlight. ……………………………………….Full Article: Source

There is a need to extend the focus of developmental efforts in Islamic finance beyond the legal form and towards the economic substance of financial transactions, said the Crown Prince of Perak, Raja Dr Nazrin Shah.
He said this meant moving beyond the path of adaptation and compliance, towards approaches that would strengthen the nexus between Islamic finance and the real economy………………………………………..Full Article: Source

Islamic finance may have grown at a 15 per cent rate per year in the last decade, but the industry still faces a shortage of skilled and experienced professionals. The shortage is rather critical which needs to be addressed, Malaysian Securities Commission chairman Tan Sri Zarinah Anwar said.
Although she did not elaborate on the human capital issue, she noted in her speech of the need to expand the cross-border growth of Islamic finance by lawmakers, regulators and market participants………………………………………..Full Article: Source

The global Sukuk market recently crossed US$134 billion in issuances with Malaysia leading the way with a 65 per cent share followed by Middle East countries with 26 per cent market share.
Bank Indonesia Deputy Governor Dr. Halim Alamsyah commenting on this growing trend for Islamic banks and the Islamic capital market, notably Sukuk market, he said the market was “emerging” in various countries in the Middle East and Asia………………………………………..Full Article: Source

Indonesia is still planning a sale of dollar-denominated Islamic bonds in the second half even though it has yet to get approval for state-owned land and office buildings to be used to back the debt, the finance ministry said.
The ministry is seeking parliamentary approval to allow 30 trillion rupiah ($3.5 billion) of land and buildings to be used for the sukuk offerings, Dahlan Siamat, director of Islamic finance at the ministry, said……………………………………….Full Article: Source

Some trade creditors of Nakheel are offering a potential $1.6 billion Islamic bond by the developer at a discount in the secondary market as a desperate need for cash outweighs hopes for a full repayment.
Nakheel, which is restructuring $10.9 billion in debt, plans to repay 60 percent of its outstanding debt to trade creditors through the sale of a 6 billion dirhams ($1.63 billion) Islamic bond, expected by the end of the first half………………………………………..Full Article: Source

More Singapore companies are keen to raise Islamic financing after a landmark sharia REIT and local currency sukuk from Malaysia’s Khazanah Nasional stirred the city-state’s interest in wholesale Islamic banking, OCBC Al-Amin said.
Companies were exploring sukuk and Islamic private equity deals as an avenue to reach a broader class of investors, including those who could only put their money in assets that complied with religious principles, OCBC Al-Amin’s chief executive said………………………………………..Full Article: Source

Four companies are involved in the final stage of a tender to attract a consultant to create a specialized structure for providing services and products of Islamic banking in the International Bank of Azerbaijan (IBA).
“Four of the seven companies reached the final part of the tender - the consortium Ekvita & Islamic Finance Advisory Assurance Services, Ernst & Young with Baker McKenzie, PriceWaterHouse and the consortium of Salans, Pinsent Masons and KPMG,” the bank said………………………………………..Full Article: Source

Tender proposals were opened in head office of Azerbaijan International Bank on Monday, 6 June, 2011.
The IBA reports that the tender was announced to attract a consultant for creation of specialized agency on provision of Islamic banking’s services and products………………………………………..Full Article: Source

Gulf states are working towards the creation of a single Sharia board for the region’s Islamic financial institutions, said Hussain Hamed Hassan, head of Dubai Islamic Bank PJSC’s Sharia committee and chairman of the Sharia Coordination Committee of the Islamic Financial Institutions in the UAE.
Speaking at the launch of Hawkamah Institute’s policy brief on corporate governance of Islamic banks and Islamic financial institutions, Hassan said creation of a supreme Sharia council will help in co-ordinating the rulings of various Sharia councils and supervisory boards in the region and will reduce the possibility of differences………………………………………..Full Article: Source

Islamic finance is growing, but politics, and perhaps prejudice, might be hamstringing this business in the United States.
In the past few years bills have been introduced in at least 20 states to forbid courts from invoking foreign laws in rulings. Proponents have touted the bills as a way to prevent Sharia, a code derived from Islamic law, from becoming the law of the land — a risk that many attorneys say is nonexistent. Arizona, Louisiana and Tennessee have passed “Sharia ban” laws, which critics call a way of scoring political points by exploiting anti-Muslim sentiment………………………………………..Full Article: Source

Dubai’s Noor Islamic Bank could break even in 2011, a year ahead of target, and will consider merger and acquisition opportunities later to expand overseas, its chief executive said on Wednesday.
Business has been unaffected by the Middle East conflict and the bank posted a profit of AED58m ($16m) in the first four months of 2011, Hussain Al Qemzi said………………………………………..Full Article: Source

Tamkeen’s initiative in providing support to micro-finance has 61 beneficiaries enrolled since the signing of the financial portfolio agreement in late February.
The programme has been structured to be Shari’ah-compliant and suitable for the Bahraini market as per a special agreement to aid micro enterprises that are otherwise unable to benefit from lending schemes provided by commercial banks………………………………………..Full Article: Source

Maybank Islamic, Asia-Pacific’s largest syariah lender, will grow its business in the Asean region and may offer Islamic stockbroking services through Singapore stockbroker Kim Eng, which its parent recently acquired.
Islamic finance is gaining traction in a region where traditionally it has been most popular in Malaysia and Indonesia, said Muzaffar Hisham, Maybank Islamic’s chief executive………………………………………..Full Article: Source

Bank Muamalat Malaysia Bhd is still keen to merge with a rival to build a mega Islamic bank, despite its failed attempt at courting Bank Islam Malaysia Bhd.
Its chief executive officer Datuk Mohd Redza Shah Abdul Wahid said the bank’s pursuit of Bank Islam was driven by its largest shareholders’ need to pare its stake in the bank and the desire by both its shareholders to create a bigger entity that is more relevant in the market………………………………………..Full Article: Source

Alliance Islamic Bank Bhd, a subsidiary of Alliance Bank Malaysia Bhd, launched today the Alliance Family Takaful Investment-Linked Plan, a Shariah-compliant family takaful investment-linked product.
“This product launch is a collaboration between Alliance Islamic Bank Bhd with Takaful Ikhlas Sdn Bhd, and FWU Malaysia Sdn Bhd, a subsidiary of German-based financial services provider, FWU Group,” Alliance Bank said………………………………………..Full Article: Source

Market talks of MAA Holdings Bhd selling its takaful business may have contributed to the over 19 per cent decline in its price on Bursa Malaysia Thursday, an analyst said.
MAA had already been given the green light by the Finance Ministry to dispose of its 100 per cent stake in Malaysian Assurance Alliance Bhd (MAAB) to Zurich Insurance Co Ltd for RM344 million………………………………………..Full Article: Source

Takaful is fast-becoming one of the most recognised forms of alternative insurance, rivalling conventional insurance brands. Takaful works in a similar way to a mutual insurance fund, and hence appeals to a global audience who prefer this form of ethical finance. It is especially attractive due to its mandatorily-employed principles of mutuality and transparency.
Complaints surrounding murky dealings in conventional insurance have promulgated Takaful and Retakaful products worldwide, giving rise to an appetite for Shariah compliant insurance products. (Press Release)

The first Islamic fund in Kazakhstan started today to lure capital from Muslims who plan to travel to Mecca, Saudi Arabia, for the Islamic pilgrimage.
The Hajj Fund, co-managed by AmanahRaya Capital Group Sdn Bhd, part of Amanah Raya Berhad, and Astana-based Fattan Finance, will be invested in portfolios that consist of properties, equities and other Shariah-compliant instruments mostly outside of Kazakhstan, said Ahmad Rodzi Pawanteh, group managing director of Kuala Lumpur-based Amanah Raya………………………………………..Full Article: Source

Islamic finance rules have approved exposure to Source products, Financial Times reports. Islamic investors seeking exposure to precious metals commodity products are now allowed to invest in the new Source Physical Gold P-ETC and the Source Physical Silver P-ETC.
After approval from the Board of Sharia Scholars, the Source Physical Gold P-ETC has become one of the largest Shariah-compliant physical gold products globally, with more than $1.2 billion in assets………………………………………..Full Article: Source

Chris O’Donnell, the chief executive who led the developer Nakheel through a period of unprecedented growth and struggles, has left the company.
Mr O’Donnell had completed the terms of his contract after five years, the company said. Sanjay Manchanda, the company’s chief financial officer, has been named acting chief executive “until further notice”………………………………………..Full Article: Source