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 $18.8 billion in 2011, from $12.7 billion a year earlier, according to data compiled by Bloomberg.

Majid Al Futtaim Holdings: The Dubai-based operator of Carrefour SA stores in the Middle East plans to issue a sukuk in “a few weeks” barring a further decline in global market conditions, Iyad Malas, the chief executive officer, said in an interview in Jordan………………………………………Full Article: Source

Tenaga Nasional Bhd, Malaysia’s biggest power producer, is seeking to price its RM4.85 billion (US$1.55 billion) Islamic bond to yield between 3.8 percent and 4.95 percent, according to a person familiar with the matter.

Proceeds from Islamic bonds, or sukuk, which pay returns from assets that comply with the religion’s ban on interest, will be used to finance the company’s coal-fired plant in the state of Perak, north of Kuala Lumpur, the person said, declining to be identified because the details are private………………………………………Full Article: Source

Arrangers, Lead managers and Structuring Advisors of the National Industries Company for Building Materials (NICBM) Sukuk; Kuwait Finance House, Liquidity Management Centre, Gulf International Bank, and Standard Bank are pleased to announce that the US$ 100 million Sukuk for The Building Materials Company has been successfully settled and paid for in full on its Maturity date 18 October, 2011.

The Sukuk was underwritten by Kuwait Finance House (Kuwait), Liquidity Management Centre, Gulf International Bank and Standard Bank………………………………………Full Article: Source

Axis Real Estate Investment Trust (REIT) is expected to issue sukuk bonds worth RM300 million in the near-term to refinance its short-term debt, extend its debt expiry profile and lock in lower interest rate.

As at September 30, Axis REIT short-term debt stood at RM340 million, with RM198 million due this year. However, it was likely REIT might draw down a portion first, given the revolving credit due to the maturity in 2011, and planned unit placement, HwangDBS Vickers Research Sdn Bhd (HwangDBS Research) said………………………………………Full Article: Source

Saudi Arabia will not need to tap into its reserves this year to finance additional budget spending but it is considering whether to issue Islamic or conventional bonds to help fund specific projects, the country’s Finance Minister Ibrahim Alassaf told Reuters. Responding to a wave of social unrest across the region, the world’s top oil exporter pledged early this year to spend an estimated $130 billion, or nearly 30 percent of its economic output, on housing and other social measures for its citizens over an unspecified period.

That came on top of a record 2011 government budget of 580 billion riyals ($154 billion), raising the possibility that Saudi Arabia might have to dip into its fiscal reserves, estimated by analysts at about $280 billion, to fund spending………………………………………Full Article: Source

Albaraka Banking Group BSC (ABG), the Islamic banking group based in Bahrain, has announced the acquisition of 60 percent of the issued shares of Al-Tawfeek Financial Group through its subsidiary in Bahrain, Al-Baraka Islamic Bank.

Al-Tawfeek Financial Group Company is a closed joint stock company registered in Saudi Arabia and licensed by the Capital Market Authority. The company engages in asset and portfolio management, custody, debt and equity arranging, as well as research and advisory services. All products and services offered by the company are in compliance with the provisions of Shariah. The company’s authorized capital is SR360 million………………………………………Full Article: Source

On 12 October, the Islamic Financial Services Board (IFSB), a standards setting body for Islamic Financial Institutions (IFIs), issued an Exposure Draft presenting their proposed principles on liquidity risk management.
As a global standard setter for IFIs, the IFSB principles are often adopted by the relevant supervisory authorities and hence are an important step in improving stability of financial systems where IFIs operate. This draft is credit-positive for IFIs as it translates a set of globally recognised best practices for liquidity management into the Shari’ah-compliant banking context………………………………………Full Article: Source

Abu Dhabi Islamic Bank (Adib) reported flat third quarter profits on Tuesday, citing the impact of central bank limits on lending on revenues, and warned of subdued sector growth next year.

The bank had net profit of Dh319.1 million ($86.9 million) in the three months ended Sept. 30, up slightly from Dh314.52 million a year earlier, it said in a statement. The Islamic lender’s results still beat analysts’ average forecast for profit of Dh286.50 million………………………………………Full Article: Source

Abu Dhabi Islamic Bank reported flat third quarter profits on Tuesday, citing the impact of central bank limits on lending on revenues, and warned of subdued sector growth next year.

The bank had net profit of AED319.1m ($86.9m) in the three months ended September 30, up slightly from AED314.52m a year earlier, it said in a statement………………………………………Full Article: Source

Abu Dhabi Commercial Bank , the fourth largest bank in the UAE by market value, nearly doubled its third-quarter net profit on Tuesday, beating analysts forecasts, helped by lower impairment provisions and higher net interest income.

ADCB, 58-percent owned by the government of Abu Dhabi, posted a net profit of 607.6 million dirhams ($165.5 million) in the third quarter, compared with 317.7 million dirhams in the year earlier period, the bank said in a statement………………………………………Full Article: Source

Dubai Emirates NBD took a conservative stand on its provisioning policy in the third quarter of 2011 as it expects a moderate increase in its non-performing loans (NPLs) ratio in the next two years, bank officials said.

The bank reported an impairment charge of Dh1.57 billion in the third quarter of 2011 driven by a specific provision of Dh950 million made in relation to the Dh4.7 billion exposure to a Dubai-based government related entity (GRE)………………………………………Full Article: Source

The Islamic Development Bank (IDB) has assigned $75 million line of finance to Turkey’s Islamic Bank, Turkye Finans Participation Bank. At the 27th meeting of the Standing Committee for Economic and Commercial Cooperation of the Organization of Islamic Cooperation, (COMCEC), in Istanbul, IDB Group President Dr. Ahmad Mohamed Ali signed an agreement with the one of Turkey’s largest Islamic Banks.

The agreement, counter-signed by CEO of the Turkish bank, Mr. Derya Gurerk, provides long term financing opportunities to small and medium enterprises in Turkey through Installment Sale, Ijara and Istisna’a modes of Islamic finance………………………………………Full Article: Source

Kuwait Finance House (KFH) AGM for Investment Sector Abdul Nasser Al-Subeih said that KFH achieved $6.5m (KD1.8m) as profit when exiting Asia 2 real estate fund.
He added that the operation achieved internal return that reached 15.8% yearly, and stressed that the fund that is in Malaysia began operating in 2010 by investing in the development of one of the major real estate projects in Malaysia, which is Pavilion 2 in Kuala Lempur………………………………………Full Article: Source

Hong Leong MSIG Takaful Bhd (HLM Takaful), which entered into a strategic bancatakaful distribution partnership with Malaysia Building Society Bhd (MBSB), is eyeing some 60% revenue contribution from the bancatakaful segment by 2014.

HLM Takaful appointed representative Abdul Khalid Salleh said the bancatakaful segment is currently contributing 40% to its revenue while the other 60% is from the corporate, agency and retail segment………………………………………Full Article: Source

The Central Bank of Bahrain (CBB) delighted to present the Insurance Decennial Report 2010, which is the first such report of its kind in the region, the report highlights the performance of the insurance industry in Bahrain for a ten years period from 2001-2010 and analyses the insurance (both “conventional insurance & reinsurance” and “Takaful & Retakaful” business) by class of business in the Kingdom with touching upon the origin and the historical background of the insurance market in Bahrain.
The Bahrain insurance market posted continues annual growth over the period 2001-2010, with gross premiums increase steadily at a compound annual growth rate (CAGR) of around 15% to register BD 210.5 million in Bahrain Insurance Market in 2010 compared to BD 58.6 million in 2001………………………………………Full Article: Source

Despite the existence of Shariah advisory councils, Islamic banks and financial institutions in Malaysia may be failing to carry out their duties. An article in this month’s JSSH investigates transactions on purchasing houses specifically on transactions involving houses pending completion using the current practice of ’sale by deferred payment’ also known as Bay’ Bithaman al-Ajil (BBA).

Islamic banking gained foothold in Malaysia, with the establishment of Bank Islam Malaysia Berhad in 1983 and facilities have since expanded……………………………………..Full Article: Source