There was a time when proponents of Islamic finance sniffed opportunity in the crisis. The problems of speculative, casino-like Western banks contrasted nicely with the emphasis that sharia-compliant finance places on an ethical, risk-sharing approach. But risk-sharing looks much less appealing when issuers are defaulting.
Dubai’s debt problems badly shook investors in sukuk, a type of Islamic bond, issued by Nakheel, a troubled property developer. Although a restructuring deal announced last month should ensure that Nakheel’s bondholders will now be paid back on schedule, the saga is bound to have damaged confidence………………………………………..Full Article: Source

Libya’s central bank is preparing a law to allow lenders and issuers to sell Islamic bonds as part of its efforts to develop banking services after the fall of Muammar Qaddafi.
The regulator has formed a committee with the country’s banks to prepare the law, Ezzedin Ashur, deputy director of research and statistics at the Tripoli-based central bank, said in a telephone interview yesterday. Libya has 15 banks, all of which have Shariah-compliant “windows,” he said………………………………………..Full Article: Source

Oman may in future consider issuing Islamic bonds or sukuk, the country’s central bank head Hamood Sangour al-Zadjali said on Monday. Zadjali was speaking at a financial forum in Kuwait. Oman opened its doors to Islamic banking in May this year, after previously deciding not to introduce it.
The central bank chief also said inflation in Oman was stable and would be around 4 percent this year………………………………………..Full Article: Source

Bahrain is still planning to sell Islamic bonds, Sheikh Salman bin Isa Al Khalifa, executive director of banking operations at Bahrain’s Central Bank, said. “The issuance of the sukuk is still on track,” Sheikh Salman said. He gave no further details.
Central Bank Governor Rasheed al-Maraj said in an interview last month that Bahrain has hired Citigroup Inc., BNP Paribas SA and Standard Chartered Plc to advise on the sale of $1 billion in bonds in October………………………………………..Full Article: Source

United Arab Emirates shopping mall developer Majid Al Futtaim has appointed HSBC and Standard Chartered to structure its planned sukuk programme, three sources familiar with the matter said on Monday.
The two banks will arrange the documentation for the scheme, and create a process for banks to pitch for lead manager slots on any sukuk issue under the programme on a future date, two of the sources added……………………………………….Full Article: Source

Gulf oil producers issued bonds worth around $20.9 billion in the first nine months of 2011, slightly lower than their value in the same period of 2010. Despite the slump, the outlook remains encouraging.
The bond issuance in the six-nation Gulf Cooperation Council (GCC) began the year with full force before it started to slow down in the following months because of regional unrest and global financial upheavals, a Saudi bank said………………………………………..Full Article: Source

Gulf Cooperation Council member countries issued bonds worth around $20.9 billion in the first nine months of 2011, slightly lower than their value in the same period of 2010, the National Commercial Bank (NCB) said in a study.
“Total GCC bond issuance during the first nine months of this year reached $20.9 billion, as compared to $21.5 billion in the same period a year earlier,” the study said………………………………………..Full Article: Source

The idea of a third party sukuk guarantee fund is still being considered by the Islamic Corporation for the Insurance of Export Credits and Investment (ICIEC), the standalone export credit agency of the Islamic Development Bank (IDB) Group.
However, according to Abdel Rahman Taha, the chief executive officer of ICIEC, the corporation “has initiated work internally to design a new sukuk policy which can be offered as a means to enhance the credit structure and appeal of sukuk. It is expected that this new policy will be able to provide the much needed respite to the sukuk market.”……………………………………….Full Article: Source

Abu Dhabi National Energy Co. (TAQA) has secured regulatory approval for its 3.5 billion ($1.1 billion) Malaysian ringgit program, but may also tap the conventional bond market next year to refinance debts, its chief financial officer said.
TAQA, which invests in the energy sector globally, set up the Malaysian ringgit program in early October. The program is aimed at diversifying its funding sources……………………………………….Full Article: Source

Recent global crises have changed the sentiment for finance and investments with investors increasingly showing appetite for Shariah-compliant private equity (PE), according to a top official of Qatar First Investment Bank (QFIB).
“The growth of Islamic PE comes at a time when there is a controversy over the credibility of the conventional financial system,” Ihab Asali, QFIB head of private equity, told the recently concluded Islamic Investment and Finance Forum, in Istanbul, Turkey………………………………………..Full Article: Source

Bahraini Islamic bank Elaf has joined hands with Ohad Trust, a leading provider of fund administration, custodian and trust services based in Bahrain, to set up a joint venture in Labuan, Malaysia.
The new company Ohad Labuan said it has won a licence from Labuan Financial Services Authorities to work on trust, foundations, fund administration, registrar and custody assignments in Malaysia………………………………………..Full Article: Source

Hong Leong Islamic Bank (HLISB) has completed Malaysia’s first vesting of an Islamic Bank with EONCAP Islamic Bank Bhd (EIBB), following the recent integration between its parent-bank, Hong Leong Bank Bhd and EON Bank Bhd.
“Our teams have worked tirelessly to ensure a speedy integration to allow us to realise synergy value from this unprecedented, trailblazing corporate exercise,” said HLISB chief executive officer, Raja Teh Maimunah Raja Abdul Aziz………………………………………..Full Article: Source

Bank Muamalat Malaysia Bhd (Bank Muamalat) is expanding the Ar-Rahnu Islamic pawnbroking service to all its branches in line with the bank’s plan to improve customer services next year.
Its chairman Tan Sri Dr Munir Majid said currently the Ar-Rahnu service has been introduced in 10 out of 56 branches nationwide………………………………………..Full Article: Source

Bolstered by monumental growth in operating revenues, Meezan Bank (MEBL), the countrys largest Islamic commercial bank, reported a whopping 130 percent, year-on-year growth in its bottom line during the first nine months of CY11.
Tall profitability came on account of a higher net spread, stemming from growth in returns on investments. The financial intermediary expanded its investments base by 62 percent during the first nine months of the current year to Rs.89 billion at the end of September 2011, with Ijarah Sukuk (issued by the government) alone accounting for around 75 percent of the total investment portfolio………………………………………..Full Article: Source

Malaysia Building Society Bhd’s (MBSB) net profit for its third quarter ended Sept 30 jumped by 134.8% RM95.1mil year-on-year due to higher income from Islamic banking operations, higher conventional business net interest income and higher other operating income.
These were partially set off by impairment allowances on loans and higher other operating expenses. Revenue for the quarter also increased to RM372.7mil from RM215.8mil last year………………………………………..Full Article: Source

My venture capital fund is sharia-compliant, which means we can’t invest in gambling, alcohol and tobacco. Most importantly, there can be no leverage. The company we invest in cannot have debt on their books, or use debt in any way for expansion.
So we need to go through their operations and check. There are some really exotic financial instruments out there, so sometimes I need to find the right Islamic scholar in Malaysia to make sure it’s all right. Compare it to the Jews and their kosher laws: just like there are rabbis with food specialisations, the same is true for Islamic scholars and financial instruments……………………………………….Full Article: Source