There does not look like there’s much hope for Islamic finance breaking through in South Korea anytime soon, according to Min Kyung Kim senior manager of the Korean Deposit Insurance Corporation.
Kim, who is writing a book on Islamic finance in Korea with Azerbaijani Islamic finance specialist Mahir Humbatov, spoke to The Islamic Globe and claimed that there was little hope of legislation to equalize the tax treatment of Islamic finance - introduced last September and reintroduced this February - passing through parliament at this time of asking………………………………………..Full Article: Source

The stricter, more ethical rules of Islamic finance helped many countries avoid the worst of the 2008 economic meltdown. Now officials in the Russian republic of Tatarstan are hoping that Islamic finance can help them attract direct investment from Muslim nations around the world.
Last week a summit on Islamic finance in Kazan, the capital of Tatarstan, welcomed delegates from as far afield as Malaysia, Saudi Arabia, Turkey, Azerbaijan and the United Arab Emirates………………………………………..Full Article: Source

The uncertainty and disparity in some areas of Islamic finance can at times be an added cost for industry players or turn them away from it. Zainal Izlan Zainal Abidin, the SC executive director, said the legal, regulatory and tax frameworks for Islamic finance sometimes differ from one market jurisdiction to another, and this poses a challenge when one goes into cross border situations.
“As a result, going through the Islamic finance route may, at times, be less clear or economical than the conventional route……………………………………….Full Article: Source

The governor of the Central Bank of Nigeria is fielding criticism for exacerbating the country’s sectarian problems by allowing Islamic banking to make its debut in Nigeria.
Since last week, English and Hausa media in Nigeria have been closely following a controversy over Islamic banking in the country. At the center of the controversy is Sanusi Lamido Sanusi, the dynamic and outspoken governor of the Central Bank of Nigeria (CBN)………………………………………..Full Article: Source

Delta State chapter of the Christian Association of Nigeria (C.A.N.) has alleged that the decision to establish the first Islamic bank in Nigeria was in furtherance of the plot to Islamize the country.
The state branch of the authoritative umbrella of Christian groups in Nigeria further accused the Governor of the Central Bank of Nigeria (CBN), Alhaji Lamido Sanusi of planning to destabilize the country’s banking sector through the unwarranted establishment of an Islamic bank………………………………………..Full Article: Source

The newly introduced non-interest banking especially Islamic banking, can lead to financing of religious fanaticism and terrorism, says economic experts.
“Nigeria has, and continues to suffer from religious fanaticism and sectionalism. With the financial systems still suffering from the consequence of, amongst other factors, weak supervision, the CBN and other regulatory bodies to be charged with supervising Non-Interest Financial Institutions (NIFIs) must be well prepared and trained. Failure in proper regulation of NIFIs might not only lead to financial losses but perhaps financing for religious fanatics and terrorism. This must be prevented by all means”, they said in Lagos last week………………………………………..Full Article: Source

More reactions have the introduction of Islamic Banking by the governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, as the Director, Post-Graduate Studies, Crowther Graduate Theological Seminary, Venerable (Professor) Andrew Igenoza, argued that the said introduction will not do the nation any good.
Igenoza said this on Sunday while delivering his sermon entitled: “Answering the Divine Call For Our Lives,” at the trinity ordination of nine deacons and two priests, held at the All Souls’ Church, GRA, Abeokuta, that the Holy Bible was also in support of lending money without interest………………………………………..Full Article: Source

The CentralBank of Nigeria, CBN, has allayed fears that the introduction of non-interest banking into the system would turn Nigeria into an Islamic country, stressing that Islamic banking is one of so many non-interest banking systems contained in the CBN laws.
Deputy Governor, Economic Policy of CBN, Mrs Sera Omotunde Alade, said this, weekend, in Ilorin while speaking with newsmen at a retreat organised for the Financial Market Department with the theme: ”Transforming the Nigerian Financial Market: Prospects and Challenges.‘’……………………………………….Full Article: Source

In the last two years, the myriad of reform policies initiated by the Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, have come to acquire a life of its own. The clamour for more far-reaching reforms in the banking sector has continued unabated.
One of the raging issues at the moment is the planned introduction of an Islamic banking model into the Nigerian financial landscape, which has naturally raised apprehensions………………………………………..Full Article: Source

Islamic Development Bank President Ahmed Mohamed Ali called for a new economic order to promote global progress and prosperity at the group’s annual conference here Monday.
“I call upon Islamic financial institutions to make use of the available opportunity to establish international investment banks in order to present a new vision and a different methodology to the world in asset management and fund investment … and contribute to the reform of global financial system and stability,” Ali said……………………………………….Full Article: Source

Turkmenistan plans to borrow more than $240 million on favourable terms from the Islamic Development Bank and the Asian Development Bank for railway and water-supply projects, a government source said on Monday.
“The loans will be used to develop the Turkmen part of a rail link to Iran and for providing water to Balkan province in the west of Turkmenistan,” the source told Reuters………………………………………..Full Article: Source

HSBC Holdings, Europe’s biggest bank, will merge its Saudi Arabian wholesale and investment banking business with Saudi British Bank’s SABB Securities, it said on Monday.
SABB would own 51 percent of the new entity, to be known as HSBC Saudi Arabia, but HSBC would retain full management control, HSBC said in a statement posted on the Hong Kong stock exchange………………………………………..Full Article: Source

The Kuala Lumpur Regional Centre for Arbitration (KLRCA) is making robust efforts to expand its role in promoting Islamic arbitration globally and will launch Islamic arbitration rules to cover other sectors such as construction and maritime.
Currently, the centre serves as a platform to deal with cases involving Islamic banking and finance, takaful, Islamic development financial business, Islamic capital market products or services, and other transaction business based on syariah principles………………………………………..Full Article: Source

Thomson Reuters and IdealRatings has launched the Thomson Reuters IdealRatings Islamic Indices, the first Islamic benchmark offering research-based Shariah screening based on globally accepted standards, to investors, money managers and analysts across a range of Islamic instruments.
The indices, which will provide the most transparent Islamic guidelines for investors around the world, will also as a transaction channel for potential investment to Malaysia………………………………………..Full Article: Source

While the global sukuk market has made great strides, much remains to be done. Highlighting the challenges that need to be addressed, RAM Ratings opines that there is still a dearth of secondary trading in sukuk.
Speaking at the 6th annual Islamic Market Programme 2011 organised by the Securities Commission, RAM Ratings’ head of Islamic Ratings, Zakariya Othman, emphasises that an active secondary trading platform for capital-market instruments is vital to the development of capital markets, including Islamic finance………………………………………..Full Article: Source

Dubai-based global port operator DP World has announced the periodic profit distribution on its $1.5b sukuk and coupon payments on its $1.75b conventional notes, for the six-month period ending June 30, 2011.
In two separate statements posted on the Nasdaq Dubai bourse today, the ports operator said it was doling out almost $60m in coupon payments for its conventional notes, calculated at the rate of 6.85 per cent, while it was paying out another $46.8m for its Sukuk, calculated at the rate of 6.25 per cent………………………………………..Full Article: Source

Dubai Islamic Bank (DIB) unveiled a new opportunity for regional investors to participate in the rapidly growing economy of Asia. The Prudential Shariah Opportunities - Asia Pacific Equity Fund (the Fund), endeavors to provide medium to long-term capital appreciation by investing in Sharia-compliant companies within the Asia Pacific region (excluding Japan).
Capitalising on the sustained economic growth and increasing wealth across the APAC region, the Fund is offered by Prudential Asset Management Limited, based at DIFC. The Fund will seek to invest in Sharia-compliant companies in the APAC region, excluding Japan………………………………………..Full Article: Source

Bank of London and The Middle East (BLME) have launched the BLME High Yield Fund, which targets institutional and high net worth investors in Gulf countries seeking to generate higher returns than those targeted by BLME’s US Dollar Income Fund.
The BLME High Yield Fund targets a net return of three-month US$ Libor (London Interbank Offered Rate) in addition to a five per cent return per annum by investing up to 85 per cent in Sukuk (often referred to as Islamic bonds) and 15 per cent in Ijarah (a lease contract on an asset)………………………………………..Full Article: Source

Portfolio manager Taurus Asset Management said it would provide customers advisory services for Shariah-compliant investments.
Taurus Asset Management under its portfolio management services (PMS) umbrella, in association with Multigain Shariah Investment Services, has launched its Shariah compliant PMS strategy branded as ‘TM Shariah Strategy’, Taurus said in a statement………………………………………..Full Article: Source

Takaful companies in Malaysia have been advancing rapidly in the last five years, recording a five-year compounded annual growth rate of 16 per cent for the assets of takaful funds, doubling that of conventional insurers.
According to a statement released by RAM Ratings, the takaful industry’s assets expanded 17 per cent to RM14.7 billion last year, accounting for 8.7 per cent of the combined asset base of insurance and takaful industries………………………………………..Full Article: Source

RAM Rating Services Bhd expects takaful fund assets to continue post double-digit growth this year driven by growing consumer awareness.
Its head of financial institution ratings, Promod Dass, said the takaful industry, a rapidly expanding sector, was expected to see an increasing acceptance of its products along with the increase in the population’s wealth and greater understanding of such offerings………………………………………..Full Article: Source

The Federal Board of Taxation has received submissions following last year’s release of a Discussion Paper entitled “Review of the Taxation Treatment of Islamic Finance”.
Various stakeholders made contributions including: Australian law firms; accountancy firms; academics; individuals; industry bodies (ie the Financial Services Council, CPA Australia and a joint submission from the Tax Institute of Australia and the AFMA); and the Department of NSW Treasury and Department of Industry & Investment NSW………………………………………..Full Article: Source

Lots of studies conducted by major stakeholders showed Islamic microfinance as a huge untapped market. The figures suggested to jump into any new pattern of microfinance. The pitfalls of conventional microfinance also pushed the serious players of the sector towards Shariah compliant model along with a new commence of SME.
The incentive for MFIs to graduate into Microfinance Banks ( The department of Microfinance, State Bank of Pakistan is working smartly on this move ) and the decisions of G20 policy makers proved that the expectations from conventional microfinance could not bring-in the targeted results and devastated their confidence upon the sector……………………………………….Full Article: Source