Islamic finance has grown significantly in the past few years and could become the largest segment in a number of banking systems in the Middle East by 2020 with a penetration rate in excess of 50 percent of the local banking assets. In Malaysia and Bangladesh, it would be close to 50 percent, based on a research by HSBC Amanah using historical compound annual rate of growth.
Yakub Bobat, global head of HSBC Amanah Commercial Banking, on September 20 told a Sibos conference being held in Toronto, Canada that at the end of 2010, the penetration rate of Islamic assets in Saudi Arabia and Kuwait was more than 30 percent, Malaysia 22 percent, and United Arab Emirates and Bangladesh 18 percent……………………………………….Full Article: Source

Non-Muslims are increasingly showing an interest in Islamic education and financial products, according to panellists at the first-ever Sibos session dedicated to Islamic finance.
Daud Vicary Abdullah, president and chief executive of the International Centre for Education in Islamic Finance, which offers post-graduate education in Islamic finance, said at the Sibos panel yesterday that more than a third of students to the university were non-Muslims and he expected this to increase……………………………………….Full Article: Source

National Bonds Corp, the Dubai-owned Islamic savings scheme, may invest in the Nakheel sukuk issued to trade creditors in part-payment for outstanding bills, its CEO said.
The Islamic bonds issued under the government-owned developer’s $16.1bn restructuring plan tumbled in their first week of trading as holders flooded the market……………………………………….Full Article: Source

Nakheel PJSC, the Dubai government- owned developer that issued Islamic bonds last month, based 3.8 billion dirhams ($1 billion) of sukuk on a seabed off the emirate’s coast, two people familiar with the transaction said.
The underlying assets are plot 502 in the Persian Gulf and plot 513 in the desert, the people said, declining to be identified because the information is confidential. Property, which typically back sukuk, is leased out and payments to investors are usually in the form of rental income or profit……………………………………….Full Article: Source

Much of the land backing a $1.03 billion sukuk bond from Dubai property developer Nakheel is unreclaimed seabed, Reuters quoted bank sources as saying, leaving trade creditors holding the paper with scant recourse to tangible assets in the event of a default.
The Islamic bond, or sukuk, is part of Nakheel’s $16 billion debt restructuring deal which repays trade creditors 40 percent in cash and 60 percent via the bond……………………………………….Full Article: Source

Malaysia’s sovereign wealth fund is to sell the first renminbi-denominated Islamic bond, a move that underscores the growing diversification the products available in the Chinese currency.
The issuance is relatively small to test the interest in the unusual offering, say fund managers and analysts of Islamic markets. The fund, Khazanah, is said to be targeting Rmb500 million (USD 78 million)……………………………………….Full Article: Source

It’s not just porky dim sum dumplings that are off-limits for religious Muslims. Dim sum bonds, or debt issued in renminbi, are also verboten for Islamic investors for whom conventional bonds conflict with religious prohibitions on interest.
Enter Khazanah, Malaysia’s sovereign wealth fund, which is launching the first-ever Islamic bond in renminbi. Halal dim sum anyone?………………………………………Full Article: Source

The continuing expansion of the Saudi economy should underpin the steady growth of the insurance sector. However, the main catalyst for growth in recent years - the rise of compulsory health insurance remains miniscule, the “Saudi Arabia Insurance Report Q3 2011” said.
Of the G20 economies, few have experienced growth in their insurance sectors that could match that of Saudi Arabia between 2005 and 2010. Life premiums have soared from SR193 million to SR1.40 billion……………………………………….Full Article: Source

Along with Islamic banking windows within commercial banks in Oman, the two new specialised Islamic banks would be able to start Sharia-compliant banking activities from early next year, according to the apex bank.
Both Bank Nizwa and Al Izz International Bank, which have got licences to operate as full-fledged Islamic banks, are expected to float initial public offerings (IPO) by the end of this year to list on the Muscat Securities Market (MSM)……………………………………….Full Article: Source

The Sharjah Government will work with Emirates Islamic Bank to provide grants and loans for all public housing projects. The agreement is one of the first major moves by the year-old Department of Housing.
The programme is the first time the Government has worked with a private bank to provide public housing, said Eng Khalifa Al Tunaiji, the director general of the Department of Housing……………………………………….Full Article: Source

Jeddah based Islamic Development Bank (IDB) has expressed its keenness to cooperate with India to uplift the conditions of Indian Muslims.
K Rahman Khan, deputy chairman of Rajya Sabha, met senior bank officials including its president Ahmad Muhammad Ali in Jeddah. Khan said that the bank officials are eager to explore new fields of co-operation with India……………………………………….Full Article: Source

The Banking institution is a place where individuals or corporate organizations alike deposit their money for personal or business transactions for the purpose of savings, current or fixed transactions that would yield profit over a particular period of time.
Nigeria as one of the growing economies of the world has taken the right step to restructure the banking system in the country………………………………………..Full Article: Source

A statement from Asian Finance Bank (AFB) said that Salah was ‘one of the earliest directors to be appointed on AFB Board and has been instrumental in steering the growth and development of AFB’.
The bank added, “Having served as a Committee member/ Chairman of several AFB committees, Mr Salah has been exposed to the Malaysian Financial and Capital Markets, regulatory authorities and met several Malaysian Ministers including the Prime Minister.”………………………………………Full Article: Source

Al Hilal Bank, a progressive Islamic bank, has on Tuesday, September 20, 2011 held a groundbreaking ceremony for its flagship commercial development located at the heart of the Sowwah Island mixed-use development in Abu Dhabi. The 120 metre-high tower will offer exceptionally efficient, Class A office space to leading national and global firms.
Sowwah Island and adjacent edges of Al Mina, Al Reem and the Abu Dhabi Islands are designated as Abu Dhabi City’s Central Business District under the Capital 2030 urban structure framework plan. (Press Release)

Islamic scholars have disputed on whether credit cards are permissible or prohibited in Islam. Some are of the opinion that credit cards can be used as long as there is no delay in the payment.
Others strictly forbid the use of credit cards, especially when the bank requests an annual charge for the card. This cost is a form of interest and is paid by the user regardless of whether he/she pays the bills on time or not. Also, the user enters into a contract with the bank which means that he/she is obliged to pay interest if the payment is postponed……………………………………….Full Article: Source

Former justice of Pakistan Mufti Taqi Usmani said on Wednesday that the ongoing global financial crisis gave credence to the Islamic financial system, which prohibited interest and short sale.
Speaking at the inaugural session of a two-day World Islamic Finance Summit, Usmani said that debt-based financing, sale of debt, derivatives and short sale were the primary reasons for the international financial crisis. “The worth of world’s total derivatives is 12 times the global GDP. This is virtual money, which discourages real economic growth,” he said……………………………………….Full Article: Source