One of the great mysteries of economic history concerns how the Islamic world lost its mojo. A thousand years ago, the Middle East was richer and more influential in the global economy than Europe.
According to data compiled by the late economist and statistical wizard Angus Maddison, the Middle East accounted for about 9.5% of global GDP in the year 1000 while Western Europe’s share was less than 9%. By 1700, however, the situation had totally reversed, with Western Europe commanding a hefty 22% of global GDP and the Middle East a pathetic 3%……………………………………….Full Article: Source

Capital markets are crying out for a shiny new funding machine free of the problems that have beset the conventional model. But Islamic finance must choose a different path from the one it has previously followed if it hopes to assume that function and wire in sustainable growth.
Practitioners of Islamic finance have within their grasp an opportunity unlike any their industry has known before or indeed may have again. Conventional markets in Europe and the US could remain in disarray for years to come. Growth rates are low, bank weakness endemic, political risk rife. Sovereign and corporate issuers face the possibility of a returning liquidity crisis……………………………………….Full Article: Source

Indonesia is firmly on course to expand on its entrance into the Islamic finance market with the issue of its second sukuk in two years. The move will take it a step closer to rival Malaysia, and provide the country’s coffers with an alternative source of income amid the international financial turmoil.
The final timing hasn’t been confirmed. Fluctuating fortunes in the financial markets are no doubt playing a part over the issue, which is expected to raise more than $500 million, mainly from the Middle East. According to reports, the plan has been mandated by HSBC, Citigroup and Standard Chartered……………………………………….Full Article: Source

HSBC Amanah Securities Services, part of HSBC Holdings, will more than double the value of the Islamic funds it services to exceed $10bn after it helps to set up funds in the next 12 to 18 months.
Demand for Islamic funds has risen in the past three to six months as the global economic slowdown prompted investors to seek alternative investments to help manage risk, according to Germain Birgen, Luxembourg-based global head of HSBC Amanah Securities. The unit will help set up more than 30 Sharia-compliant funds globally……………………………………….Full Article: Source

Malaysia’s state-owned Employees Provident Fund increased holdings of global Islamic bonds to $1.75 billion this year from $650 million in October 2010, when it set up a program to invest in the debt, according to the head of treasury.
“We are also looking to increase our mandate to include the Islamic space in the region,” Wan Kamaruzaman Wan Ahmad, who is also general manager at the fund, said at an Islamic conference in Kuala Lumpur today, without elaborating……………………………………….Full Article: Source

The World Bank is exploring the potential in a number of developing countries to issue the first Green Sukuk in the world to fund low carbon development or environmental projects.
World Bank senior counsel, Sau Ngan Wong, said the bank was discussing with governments on the viability of issuing the sukuk. She said Malaysia, as a leader in the sukuk market, has a good infrastructure and capability as well as potential to offer Green Sukuk……………………………………….Full Article: Source

The following borrowers are expected to sell Islamic bonds, which use asset returns to pay investors to comply with the religion’s ban on interest. Global sales of sukuk climbed to $18.1 billion in 2011, from $12.7 billion a year earlier, according to data compiled by Bloomberg.
KUVEYT TURK KATILIM BANKASI AS: A Turkish Islamic bank part-owned by Kuwait Finance House (KFIN) KSC got approval to sell $350 million of Islamic bonds, the market regulator in Ankara said in a weekly report published on its website……………………………………….Full Article: Source

Linklaters has advised (as international legal counsel) Deutsche Securities Saudi Arabia, Samba Capital & Investment Management Company and Saudi Fransi Capital as joint lead managers and joint bookrunners on the issuance of SR3.749bn (approximately $1bn) sukuk certificates by Arabian Aramco Total Services Company (AATSC).
The transaction represents the first ever Sharia compliant “greenfield” project bond (sukuk). The sukuk certificates are listed on the Saudi Stock Exchange (Tadawul). (Press Release)

Islamic trade finance has benefited from shifting preferences towards Sharia-compliant banking and could serve as one of the key growth drivers to help the nearly US$1-trillion Islamic finance industry double in size, according to the World Islamic Economic Forum Foundation.
“Trade finance is the lifeblood of global commerce, underpinning 60%-80% of the US$12-US$13-trillion trade in global merchandise,” the WIEF Foundation said at a briefing on Tuesday……………………………………….Full Article: Source

CIMB Group launched its Islamic securities services today at the sidelines of the IFN 2011 Investors & Issuers Asia Forum. With the launch, the Group is reinforcing its position as a fully-integrated service provider that offers shariah-compliant securities services on a single platform to institutions and individuals, both domestic and abroad.
The Group’s Islamic securities services leverages on the expertise of its four business units comprising Trustee Services and Products, Custody, Corporate Agency, and Fund Accounting. (Press Release)

Leading Qatari bank Al khaliji has recorded a net profit of QR359 million ($98.5 million) for the first nine months marking an increase of 22 per cent over the same period last year.
Announcing the results after a board meeting, Al khaliji chairman and managing director Sheikh Hamad Bin Faisal Bin Thani Al Thani said the net operating income reached QR698 million, up 21 per cent over the corresponding period in 2010……………………………………….Full Article: Source

Bahrain-based Arab Banking Corporation (ABC) said its consolidated group net profit for the first nine months rose to $157 million, up 40 per cent over the same period last year.
Announcing the results on Tuesday, ABC said the total operating income for the third quarter amounted to $200 million, marginally below $207 million in the previous quarter, whilst operating expenses decreased to $97 million compared to $102 million, in part due to the impact of exchange rates……………………………………….Full Article: Source

Sharjah Islamic Bank announced this year nine months results yesterday with a net profit of AED 204.7 million, compared to 191.6 million achieved in the same period last year with an increase of 7 percent.
The balance sheet grew since December 2010 with total Assets reaching AED 18.9 billion compared with AED 16.7 billion which is 14%……………………………………….Full Article: Source

The State Bank of Pakistan (SBP) has announced that it has developed a model Islamic product based on the concept of “Salam” to meet production finance (working capital) needs of the farming community.
In a circular issued on Tuesday, the SBP said the model product, developed in consultation with all stakeholders, would facilitate Islamic banking institutions (IBIs) in improving access to agricultural Islamic financing for the farming community……………………………………….Full Article: Source

Member countries of the West African Institute for Financial and Economic Management (WAIFEM) are currently on a weeklong regional training course on rudiments of interest free banking under the Islamic Law.
The course which opens on Monday 17th October 2011, at the Paradise Suites Hotel is meant to provide participants a broad understanding on rudiments of Islamic Banking. It will also give them the clarity on the Sharia requirements and the avoidance of “RIBA” in modern day banking business……………………………………….Full Article: Source

A five-day regional course on the rudiments of interest-free Islamic banking kicked-off Monday at the Paradise Suites Hotel in Banjul. The course, organised by the West African Institute for Financial and Economic Management (WAIFEM) and attended by bankers from the sub-region is geared towards exposing bankers in the region to the basic tenets of Islamic banking.
Welcoming participants to the course, Professor Akpan H Ekpo, director general of WAIFEM explained that Islamic banking is a banking model based on profit and loss sharing system and rests on the Islamic doctrine of ‘universal permissibility’ in business dealings, which states that everything is permissible unless it is clearly prohibited……………………………………….Full Article: Source

The US-Qatar Business Council and the US-Arab Chamber of Commerce recently hosted the second Annual Islamic Finance Forum in Washington, providing participants with insights into the burgeoning use of Islamic financing and Shariah-compliant business contacts in the US.
“At this year’s forum, practitioners as well as theoreticians helped demystify the complexities of Islamic finance,” said USQBC president, executive director and ambassador Patrick N Theros. “We saw a greater emphasis on the application by investors of the principles of Islamic finance and addressed the lack of facts and context in most conversations in the US on this issue.”………………………………………Full Article: Source

In order to maintain economic growth and sustain their surging populations, Asian nations need to develop and upgrade their infrastructure and Islamic finance can play a key role in this, Standard & Poor’s Ratings Services has said in a recently published report.
Titled, ‘Will Islamic Finance Play A Key Role In Funding Asia’s Huge Infrastructure Task?’, the report said Islamic finance would be a good match for financing Asia’s infrastructure funding gap, especially sukuk bonds……………………………………….Full Article: Source

In her keynote address to the recent IFN 2011 Issuers & Investors Asia Forum in Kuala Lumpur, Nik Ramlah Mahmood, the Managing Director of the Securities Commission Malaysia (SCM), said that, for the Islamic capital market to make further progress, more jurisdictions would need to put uniform tax frameworks into place.
She disclosed that, as at end-2010, the size of Malaysia’s Islamic capital market stood at MYR1.05 trillion (USD336bn), or 52% of the size of the overall Malaysian capital market, as compared to only MYR294bn as at end-2000……………………………………….Full Article: Source

Malaysia’s competitive advantage in Islamic finance is its comprehensive regulatory framework, according to a German economics professor.
“Malaysia has the necessary ingredients to be a hub for Islamic finance, such as its capital adequacy requirements, good governance and disclosure policies that are able to meet European financial standards,” said International Centre for Education in Islamic Finance (INCEIF) governing council member Prof Dr Volker Nienhaus……………………………………….Full Article: Source

Pak-Qatar General Takaful Ltd. (PQGTL) and Tajweez Advisory Co. WLL Bahrain, in cooperation with the International Islamic Financial Consultant (IIFC) jointly organized a three-day intensive workshop titled ‘Islamic Product Structuring and Pricing, Tools and Techniques’ at the Institute of Bankers Pakistan, conducted by a team of Shari’ah scholars and technicians.
Pak-Qatar General Takaful Limited (PQGTL), the Qatari-sponsored Takaful Operator, was the lead Sponsor of the workshop……………………………………….Full Article: Source