The $1 trillion global Islamic finance market still has a bright future, barring any sharp turns in the world’s economic crisis, with the Arab Spring pushing investors into Asia. Barring a sharp global downturn, Islamic financial asset growth will likely maintain its current growth clip over the next 5-10 years as new markets emerge, an industry body said on Wednesday.
The $1 trillion sector has bright growth prospects in Asia, the Middle East and Africa driven by increasing populations, natural resources and policies that encourage expansion, the Islamic Financial Services Board (IFSB) said……………………………………….Full Article: Source

Malaysia’s Islamic finance sector is further consolidating its position as a market leader, moving to broaden its product range and expand its reach, though it may need to keep an eye on rivals aspiring to emulate its success.
At a recent seminar on Islamic finance held in Istanbul, Mehmet Asutay, the director of the Durham Centre for Islamic Economics and Finance at UK-based Durham University, said Malaysia was positioning itself to capture 25% of the market share in the Islamic banking and finance sectors by 2012……………………………………….Full Article: Source

Malaysia has the potential to be the number one player in the global Halal food, cosmetic and pharmaceutical industry, says Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed.
He said Malaysia had proven its capabilities in many areas of the Halal industry, and that it could repeat the success in the Halal food industry as well……………………………………….Full Article: Source

Bond Pricing Agency Malaysia and Thomson Reuters have joined hands to launch a family suite of 108 Malaysian ringgit sukuk and bond indices, providing a global gateway for Malaysian sukuk and bonds.
The Thomson Reuters-Bond Pricing Agency (BPA) Malaysia sukuk and bond ringgit indices are based upon market and industry standards and aimed at investors, money managers and analyst……………………………………….Full Article: Source

Bond Pricing Agency Malaysia Sdn Bhd (BPAM) has teamed up with global business information provider Thomson Reuters to launch a suite of indices for the Malaysia ringgit bond and sukuk market aimed at investors, money managers and analysts.
“Thomson Reuters will provide a new global window to Malaysia’s bond and sukuk markets,” BPAM chief executive officer Meor Amri Meor Ayob said……………………………………….Full Article: Source

HSBC Amanah Malaysia Bhd plans to open 16 new branches by 2013 to tap the increasing demand for Islamic financial services, said HSBC Bank Malaysia Bhd CEO and HSBC Amanah Global CEO Mukhtar Hussain.
He said five new branches will be opened by year-end in Old Klang Road, Kuala Lumpur; Bangi, South Cheras and Sungai Buloh in Selangor and Kota Kinabalu in Sabah. Currently, the bank has 10 branches nationwide……………………………………….Full Article: Source

Five major Saudi banks posted third-quarter net profits, three of which beat analysts forecasts, citing lower operational costs as well as increased income from banking fees and investments, the lenders said on Wednesday.
Saudi Arabia’s biggest Islamic Bank, Al Rajhi Bank posted an 18-percent rise in its third-quarter net profit to 1.9 billion riyals ($506 million) from 1.6 billion, attributing the rise in profit to higher revenue from banking fees and investment income……………………………………….Full Article: Source

Bahrain Islamic Bank has implemented the international bank account number, or IBAN, standard for all customer accounts as part of compliance with the ISO system.
Commenting on the implementation of IBAN, Mr Abdul Rahman Mohamed Turki, Retail Banking General Manager said: “We are pleased to announce the implementation of the International Bank Account Number (IBAN) in response to the instructions of the Central Bank of Bahrain with the aim of increasing the efficiency of electronic transfers and payments in addition to ensuring the accuracy of local and international financial transactions.”………………………………………Full Article: Source

Standard & Poor’s Ratings Services assigned its ‘BB+’ long-term foreign currency issue rating to the proposed issue of benchmark-sized global Sukuk trust certificates by Perusahaan Penerbit SBSN Indonesia II, a fully-owned special purpose vehicle of the Republic of Indonesia.
The rating on the certificates reflects S&P’s view that, under the related lease and repurchase agreement between the Government and PPSI-II, the Government is obliged to make all payments to PPSI-II to ensure that the issuer has sufficient funds to make full and timely periodic distribution and principal payments to certificate holders……………………………………….Full Article: Source

RAM Ratings has downgraded the enhanced long-term rating of Sarawak Power Generation Sdn Bhd’s Serial Sukuk Musharakah (Sukuk) of up to RM215 million, from AA1(s) to AA2(s), with a stable outlook. SPG, a wholly owned subsidiary of Sarawak Energy Berhad, is an independent power producer (IPP) that operates a 320-MW combined-cycle, gas-turbine (CCGT) facility (the Plant) in Bintulu, Sarawak.
The rating action is premised on RAM Ratings’ downgrading of Syarikat SESCO Berhad’s (SESCO) corporate credit rating - from AAA to AA1, with a stable outlook - in May 2011. SPG’s enhanced rating is anchored by a strongly worded letter of support (LoS) from SESCO, which states that the latter will ensure - either by equity, loans, grants and/or other means - that the Company fully and promptly meets all its financial obligations on the Sukuk throughout its tenure. (Press Release)

Proposed setting up of a regional fund by the Malaysia Technology Development Corporation (MTDC) and Indonesian Investment Agency (IIA) can cater to increasing financing needs of technology-based companies in the region, Datuk Seri Najib Tun Razak said.
A high technology start-up in Malaysia, as in other developing economies, especially one with a technology that was nascent but nevertheless novel probably did not fit conventional lending criteria, the Prime Minister said……………………………………….Full Article: Source

Economic uncertainty and the availability of Islamic finance is driving Middle Eastern real estate investors to look East to markets such as Malaysia, it is claimed.
Middle Eastern investment into Malaysian real estate projects has risen 11.4% in the third quarter of 2011 compared with the same period in 2010, according to figures from IP Global, , a property investment company which specialises in emerging and recovering markets. Malaysia’s well regulated real estate market has grown 5.3% and Kuala Lumpur is the country’s hotspot with a property house index growth of 11.4% year on year, it says in its latest report……………………………………….Full Article: Source

The International Summit on Islamic Corporate Finance (ICFS 2011) in Abu Dhabi, saw leading Islamic bankers and corporate borrowers engage in innovative discussions that focused on boosting deal flow in the Islamic corporate finance space.
“There is no doubt that Islamic finance is maturing into a global phenomenon as highlighted by the increasing appetite for Islamic instruments and deal structures across international capital markets, corporate loans and asset finance,” said conference organiser David McLean……………………………………….Full Article: Source