Another sign that the mainstream banks in South Africa are taking Islamic finance as a serious niche market business is the acquisition last week of the local Islamic insurance company, Takafol SA, by Absa, one of the republic’s largest banking groups.
In a deal which could have implications for the reach of Takaful (Islamic insurance) beyond the borders of South Africa to southern, central, West and East Africa, Absa Insurance Company Limited (AIC), a wholly-owned subsidiary of Absa Financial Services Limited (AFS), bought the book of business of Takafol South Africa (Pty) Limited (Takafol SA), which is a subsidiary of the Hannover Reinsurance Group, a major global reinsurer, and which was established in 2003……………………………………….Full Article: Source

The Malaysian government investment arm Khazanah Nasional is planning to issue renminbi-denominated sukuk, making it the first-ever Islamic financing in Hong Kong’s booming Dim Sum market, according to IFR.

IFR said that Khazanah was rumoured to be targeting 500 million renminbi ($77.5 million) with a tenor of five years, although a three-year piece is also being talked about……………………………………….Full Article: Source

Arab Gulf banks and corporates are expected to issue more Islamic bonds, or sukuk, denominated in local Gulf and Asian currencies in the coming months, driven by increased appetite for regional and Asian debt at a time of heightened concerns over the health of the US and European economies, bankers and analysts say.
As international financial markets, uncertain about the global economy and Europe’s debt crisis, continue to hamper global lenders’ ability to finance projects and deals in the Arab Gulf region, potential borrowers from the Middle East are targeting wealthy oil-rich GCC (Gulf Cooperation Council) governments and Asian fans of Islamic debt instruments for fund raising………………………………………Full Article: Source

Malaysia’s rapidly growing AmBank Group, almost 24 per cent owned by ANZ, plans to exploit the global connections of its major investor for its next phase of growth. ANZ has invested almost $900 million in the mid-tier Malaysian bank, its single largest investment in Asia.

Ashok Ramamurthy, AmBank’s deputy group managing director and chief financial officer, said the first six months were “tough” but the relationship was now going well. “We’ve demonstrated we can deliver,” he said……………………………………….Full Article: Source

Kuwait Finance House (KFIN), the country’s largest Islamic lender, said it has no expoosure to derivatives, according to a statement to the Kuwait bourse today in reacction to a newspaper report.

The lender said it was committed to regulations that govern the banking industry and is not in violation of central bank rules, according to the statement……………………………………….Full Article: Source

Kuwait’s biggest lenders National Bank of Kuwait and Kuwait Finance House have denied reports that they were putting customers’ money at risk by trading in derivatives.

Kuwaiti daily newspaper Al-Seyassah said earlier in a report, citing unnamed parliamentary and economic sources, that several lawmakers were planning to investigate derivatives trading by some banks. The trades took place away from the central bank’s supervision, it reported, and put clients’ deposits at risk……………………………………….Full Article: Source

Noor Islamic Bank has signed an agreement with flydubai, Dubai’s low-cost airline,to enable travellers to make payments through the bank’s multiple payment channels available throughout the UAE.
flydubai customers will be able to pay for their flight bookings at the designated Noor Islamic Bank branches during working hours, or 24 hours a day through the bank’s online banking system. Existing Noor Islamic Bank card customers can also redeem Noor Points for flydubai vouchers, which can be used to purchase flights and other ancillary products and services……………………………………….Full Article: Source

At this year’s NBAD’s Global Financial Markets Islamic Forum in Abu Dhabi, I was requested to make a presentation on an Islamic sovereign wealth fund (SWF). That’s an appropriate topic for an appropriate audience at the appropriate time.

The Islamic finance industry, as part of Islamic finance 2.0, needs to move away from product pushing to a more holistic approach, which includes big “ticket” offerings while becoming “conventionally efficient.” An Islamic SWF would fill both roles for asset management……………………………………….Full Article: Source

The Central Bank of Oman (CBO) has appointed Ernst & Young to advise the apex bank on formulating a separate set of rules and regulation for Islamic banking institutions.

The international audit firm, which has an Islamic Financial Services Centre in Bahrain, has already started working on the project. Ernst & Young Islamic banking professionals are already in Muscat to work on the project……………………………………….Full Article: Source

Sarasin-Alpen (Oman) LLC, a subsidiary of Bank Sarasin (Switzerland), says it has developed an entire suite of Wealth Management solutions based on guidelines in Quran. “The bank is targeting high net worth individuals in Oman,” Fares Mourad, Head of Islamic Finance, Bank Sarasin, said in an exclusive interview with the Observer.
The Islamic Wealth Management suite provides a full spectrum of Shariah-compliant banking products and services, estate and succession planning, financing and asset management, offering money market and structured products such as Wakala, Murabaha and Maraya, he added……………………………………….Full Article: Source

The Islamic Development Bank (IDB) is keen to develop Wakf properties in India, said K. Rahman Khan, deputy chairman of India’s upper house of Parliament, while lauding the bank’s enthusiasm to boost ties with India.
“The bank is optimistic of working with the Indian government for the uplift of Muslims and the people of India,” Khan said at a press conference. Khan, who held a series of meetings with IDB officials including its chief Ahmad Muhammad Ali, said they explored ways to cooperate in different fields……………………………………….Full Article: Source

The National Vice-President of the Pentecostal Fellowship of Nigeria and presiding Bishop, Sword of the Spirit Ministries, Bishop Wale Oke, has asked the Oyo State government to forget Islamic banking and its proponents so as to allow peace reign in the state.

Oke, in a press statement made available to our correspondent in Ibadan said, “My attention has been drawn to a news item both in the print and electronic media on the ongoing move of the Oyo State Government to partner with Saudi Arabia to establish Islamic banking in the state……………………………………….Full Article: Source

HSBC Saudi Arabia has launched its new HSBC Amanah Commodity Index Fund. The objective of this open-ended Shariah compliant fund over the long term is capital growth by investing in commodities in a Shariah compliant manner, whereby the fund will track the performance of a commodity index.

Commodities are raw materials used for creating products from petroleum to household items……………………………………….Full Article: Source

Cape Town-based Oasis Group Holdings is the pioneer of Shariah-compliant asset management, retirement and investment fund products - both equity and property funds and REITs - in South Africa since it launched its first Islamic fund in August 1998, the Oasis Crescent Global Equity Fund.
Over the last few years, the group has ventured abroad and now aims to build the first global Shariah-investment fund brand, complete with a global distribution capability and a global asset management capacity……………………………………….Full Article: Source

Islamic financial institutions in general are playing a “wait-and-see” game regarding Egypt, one of the laboratories of the contemporary Islamic finance movement and currently in political and economic transition with elections - both parliamentary and presidential - due later this year.

This despite the fact that in June the board of directors of the Egyptian Financial Supervisory Authority (EFSA) approved a proposal to amend the Executive Regulation of Capital Market Law No. 95 of 1992 regarding the rules governing issuing and trading in sukuk………………………………………Full Article: Source

The government of Gabon is to change its financial laws to authorize Islamic finance, in order to attract Shari’ah compliant FDI as part of the economic reforms it is currently implementing.

Gabon, one of the most sparsely populated African countries, with only 1.7m people, boasts rich oil reserves, significant forestry resources and major gold, diamond and manganese deposits. The government this week inaugurated its first Special Economic Zone, an initiative that has already attracted investments of $1.8bn and now has an eye on SWFs and MENA government money……………………………………….Full Article: Source

The total amount of foreign investments in Azerbaijan’s economy hit 1.586 billion manat in January-August 2011, or 42.4 percent more compared to the same period of last year.
Some 9.6 percent or 152 million manat of total foreign investments in the country was made by the international financial institutions (IFIs). This is 43.6 percent more compared to the same period of 2010……………………………………….Full Article: Source

Two universities will launch master’s degrees in Islamic finance, hoping to fill a void in a market desperate for qualified professionals.

The Canadian University in Dubai and Hamdan Bin Mohammed e-University have introduced the specialist master’s of business administration (MBA), geared towards one of the fastest growing financial sectors, to meet demand at home and abroad……………………………………….Full Article: Source

Kuwait Finance House (KFH) received an American delegation from UCLA University. The students met several KFH officials from various sectors, and a lecture was organized for the students to familiarize them with KFH’s long experience in Islamic banking, in addition to its achievements and contributions to the markets it operates in.
The students were also introduced to the differences between Islamic and conventional banking, Islamic services and products, and the outstanding success Islamic banking has achieved during the past few years. (Press Release)

Prime Minister of Malaysia, YAB Datuk Seri Mohd Najib Tun Abdul Razak, presided over the opening of Sasana Kijang, Bank Negara Malaysia’s new knowledge centre. Sasana Kijang is also home to the Islamic Financial Services Board (IFSB).
The SEACEN Centre, a regional learning and research Centre for Central Banks in Asia is also located in Sasana Kijang. The SEACEN Centre, represents Malaysia’s commitment to training in areas including central banking, banking supervision, Islamic finance, executive learning as well as research and development……………………………………….Full Article: Source