New Islamic bonds from Nakheel will face a test today in a debt auction amid falling prices and rising yields since trading began two weeks ago. The Dubai property giant is issuing the Islamic bonds, or sukuk, as part of a US$16 billion (Dh58.76bn) financial restructuring it began putting in place late last month.
The sukuk initially yielded about 13 to 15 per cent, well below what many observers expected. Yesterday, however, the security was yielding 16.37 per cent, according to a major bank trading the sukuk……………………………………….Full Article: Source

Nakheel’s Islamic bonds, which were issued to contractors and suppliers instead of cash as part of a $16.1bn restructuring plan, fell in their first week of trading as holders flooded the market.
The state-owned builder of man-made islands off Dubai’s coast saw the yield on its sukuk soar 108 basis points since Sept 9, or 1.08 percentage points, to 17.08 percent on Sept 16, according to prices at Standard Chartered……………………………………….Full Article: Source

Bahrain has set up a framework to issue up to 3.5 billion dinars ($9.3 billion) in bonds, the state news agency BNA reported on Monday, after the Gulf Arab state faced ratings downgrades following civil unrest.
“The finance minister is authorised to issue in accord with Bahrain’s central bank up to 3,500 million dinars in public treasury bonds … called development bonds and Islamic sharia-compliant instrument in the kingdom or abroad,” said a decree issued by Bahrain’s King Hamad bin Isa al Khalifa, BNA said……………………………………….Full Article: Source

In terms of Islamic Finance, Brunei is a speed boat while other economies are like oil tankers, which means the Sultanate has the ability to move faster than any other country if it desires to, putting the country in a prime position to be the industry leader.
Kuala Lumpur based Arsalaan “Oz” Ahmed, associate director of HSBC Amanah’s Wholesale Banking, said that other economies, compared to Brunei, can move and make waves, but their movement will be slower because of the size of their economy, what they have to integrate to make sure things go accordingly, and so on……………………………………….Full Article: Source

Malaysia aims to capture 25 percent of the market share in the Islamic banking and finance sectors by 2012, according to an expert speaking in Istanbul.
“Islamic banking and finance has experienced substantial and unprecedented growth in recent years, growing at a rate of 10-15 percent annually,” Mehmet Asutay, the director of the Durham Centre for Islamic Economics and Finance at British-based Durham University, said………………………………………Full Article: Source

The umbrella body of Pentecostal Christians in the South West, the Pentecostal Fellowship of Nigeria, PFN, has advised Governor Abiola Ajimobi of Oyo State against turning the state into a theatre of war through his plan to introduce Islamic Banking in the state.
National Vice President of PFN in the zone, Bishop Francis Wale Oke, spoke at the weekend in Ibadan……………………………………….Full Article: Source

Barclays Bank announced today that it has received approval to operate an Islamic Window in the Dubai International Financial Centre (DIFC), enabling it to base its global Islamic products team in the DIFC, and to offer Islamic financial products and services from there.
Well-established as a global leader in Islamic finance, Barclays has been active in promoting the Islamic banking sector for well over a decade……………………………………….Full Article: Source

Sharia-compliant insurance company Amana Takaful will issue 800,000 shares in an initial public offering (IPO) on the Maldives Stock Exchange (MSE).
In a first for the country, 20 percent of the shares will be made available to expatriates and 15 percent to overseas applicants. The remaining 65 percent will be offered to Maldivians……………………………………….Full Article: Source

Dubai’s economy is back in business,c said in its latest economic report on the region, outlining data that suggests that even as the emirate’s core economic sectors of trade and tourism are roaring back to life, the worst impacted real estate sector too witnessing green shoots of recovery.
In the just published Middle East focus economic report, Standard Chartered analysts Shady Shaher and Victor Lohle maintain that the UAE’s first-half performance was driven by increased hydrocarbon output from Abu Dhabi and strong non-oil growth in Dubai……………………………………….Full Article: Source

Mufti Talha Ahmad Azami, associate Sharia manager BMB Islamic, a global player in the Shariah advisory sector, outlines the guiding principles of Islamic finance.
The basic function that underlines all economic activity in the finance arena -both Islamic and conventional - is that of allocating finite resources to its most productive use. In Islamic finance, this allocation is inextricably bound by concepts of religion, law and ethics; also known as the Sharia. ………………………………………Full Article: Source