Iran will issue $15 billion in sukuk bonds in the current Iranian calendar year (to end on March 20, 2012) to be invested in the domestic oil industry, oil minister Rostam Qasemi said. He added that the bonds will soon be offered on the stock market, the Shana news agency reported.
Sukuk is an Islamic financial certificate, similar to a bond that complies with Sharia, Islamic religious law. Sukuks must be able to link the returns and cash flows of the financing to the assets purchased, or the returns generated from an asset purchased………………………………………..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 $18.9 billion in 2011, from $13.5 billion a year earlier, according to data compiled by Bloomberg.
Bahrain: The country is still “on track” to sell $1 billion of Shariah-compliant debt, Sheikh Salman bin Isa Al Khalifa, executive director of banking operations at Bahrain’s Central Bank, said……………………………………….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

Almost a year after we saw the first corporate sukuk out of Turkey, and in line with our expectations in “Sukuk set record in first 9 months” that Turkey might surprise the market with a series of sukuk issues in 4Q 2011, the market welcomed the second issuance by Kuwait Finance House’s Turkish subsidiary.
The five-year USD 350 million sukuk, the second by the Turkish bank, was sold in the international markets and listed on London Stock Exchange. It pays 5.875% semi-annually………………………………………..Full Article: Source

The groundbreaking planned sukuk issuance of USD 2 billion by Goldman Sachs will set new heights for the Islamic finance industry. Goldman might use the Saudi and UAE currencies. One reason why they have not confirmed such usage is the fact that there might be concerns over the reaction of the Muslims during their upcoming GCC roadshow.
Such reaction might revolve around the usage of their funds in funding conventional activities of the bank………………………………………..Full Article: Source

The Vice Chairman and CEO of Liquidity Management House (LMH), Emad Y. Al-Monayea, stated that LMH managed to arrange and distribute an Ijara/Wakala Sukuk for Kuveyt Turk for an amount of $350m over a tenor of 5 years. The Sukuk issuance was rated BBB- by Fitch and will be listed on the London Stock Exchange.
Al-Monayea stated that the issuance was concluded in a record time with a competitive rate during a difficult market period; all while adhering to the recent law issued by the Capital Market Authority in Turkey to organize the issuance of Sukuks. (Press Release)

Standard Chartered Plc (STAN) is reviewing a large number of bond mandates, of which some will go to market before the end of the year, according to Chris Papadopoulos, Chief Executive Officer for the Middle East.
Papadopoulos declined to specify how many bonds were being studied by the bank or might be sold. The bank is eyeing the sukuk market and expects the pace of mergers and acquisitions in the region to be slow, he told reporters in Kuwait………………………………………..Full Article: Source

Standard Char-tered has enhanced its Islamic banking offer for customers who want high quality Shariah-compliant banking products and services. ‘Saadiq’, which means truthful, is the global Islamic banking brand of the bank.
The enhanced Saadiq suite includes new products such as the Saadiq Platinum and PIA Co Brand Platinum Debit Cards; Saadiq Platinum and PIA Co Brand Platinum Credit Cards; and Saadiq Saver Plus Monthly Savings Account. Standard Chartered is the only bank to offer Shariah-compliant credit cards to its customers………………………………………..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 Berhad and EON Bank Berhad.
“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

Following the recent vesting order received from the High Court of Malaya transferring the entire business including all assets and liabilities of EONCAP Islamic Bank Berhad into Hong Leong Islamic Bank on 24 October 2011, HLISB has announced YM Raja Teh Maimunah Raja Abdul Aziz as its Chief Executive Officer, effective immediately.
Raja Teh Maimunah, with over 18 years of experience in the financial industry focusing in Investment Banking and Islamic Finance, was the Global Head of Islamic Markets at Bursa Malaysia prior to her appointment in HLISB. She was also the Chief Corporate Officer and Head of International Business at Kuwait Finance House Malaysia and CEO of Bank AlKhair Malaysia (previously Unicorn Investment Bank). (Press Release)

According to company data for the first nine months of the year, net profit before taxes reached 1,460,076 USD, compared with a net profit before taxes of 675,334 USD from the first nine months of 2010, a net increase of 116.2%. Total assets of the company have reached 377,617,279 USD as of September 30th, 2011, compared to total assets of 357,433,736 USD as of December 31st, 2010, a net increase of 5.6%.
Total liabilities of the company have reached 127,040,534 USD as of September 30th, 2011, compared to total liabilities of 110,362,149 USD as of December 31st, 2010, a net increase of 15.1%. Equity of Unrestricted Investment Account holders totaled 201,910,313 USD as of September 30, 2011, compared with 199,025,230 USD at the end of 2010, a net increase of 1.4%. Net ownership equity of the company has reached 48,666,432 USD as of September 30th, 2011, compared with a net ownership equity of 48,046,357 USD as of December 31st, 2010, a net increase of 1.3% in the last nine months. (Press Release)

Amid calls for greater reporting transparency and more engagement with the lower end of the economic pyramid, Islamic finance is experiencing a revival. But for sharia-compliant institutions to take advantage of the trends emerging in the marketplace, several key events need to take place.
As the global economy continues to evolve in the second decade of the 21st century, world events are providing an opportunity to evaluate the underlying value proposition of the Islamic finance industry and the trends that are reshaping what banks are offering customers. During the past five years, Islamic finance has undergone a rebirth………………………………………..Full Article: Source

The recent global financial crises has changed the sentiment for finance and investments. An increased appetite for Islamic Private Equity has surfaced with its own challenges and trends. Joined by over 50 expert regional and global speakers, Ihab Asali, QFIB Head of Private Equity addressed the global rise of Islamic Private Equity at the recently concluded Islamic Investment and Finance Forum, in Istanbul, Turkey.
“The growth of Islamic Private Equity comes at a time when there is a controversy over the credibility of the conventional financial system. Islamic Private Equity is the purest form of Shari’ah-compliant financing since it is structured on a partnership basis. We will continue to see an increased focus on the value and potential contribution of Islamic Private Equity as new markets emerge,” said Ihab Asali, QFIB Head of Private Equity. (Press Release)

Despite an impressive 12 months for Islamic finance, the view from the industry is that results could be even greater if hurdles concerning taxation, regulation, legal frameworks, market challenges and a lack of qualified scholars are tackled.
Islamic finance, from a very humble beginning in 1963, has become a global phenomenon. Today, the industry covers many dimensions – such as asset classes, product types, industry players, issuers and investors – and spans various markets and regulators as well as jurisdictions. Such expansion and growth is undoubtedly welcome………………………………………..Full Article: Source

Several emerging markets with large Muslim populations combine low bank penetration and a high return on assets with a relatively small market share for Islamic banking, and thus provide further opportunities for growth in the Islamic finance sector.
In a speech in the US at the end of September 2011, Islamic Development Bank president Ahmad Mohamed Ali restated the theme he has emphasised ever since the financial crisis took hold in 2008. “The principles of Islamic finance are capable of minimising the severity and frequency of financial crises by introducing greater discipline into the global financial system and requiring the financier to bear or share in the risk,” he told his audience………………………………………..Full Article: Source

With no single interpretation of Islamic law, differences in rulings between scholars over whether products are sharia-compliant has led to a lack of standardisation in the industry. Resolving this issue is key to bringing about greater efficiency, transparency and cohesion – ultimately helping to raise the curtain for more Islamic business, says AAOIFI deputy secretary general Khairul Nizam.
Established as an industry body responsible for international Islamic finance standards on sharia, accounting, auditing, governance and ethics, Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) plays an important role in promoting standardisation and harmonisation of Islamic finance practices………………………………………..Full Article: Source

With seven Takaful companies currently operating in the UAE and five new Takaful providers set to launch shortly, the Takaful industry in the UAE has witnessed remarkable growth over the last five years.
Against this backdrop of unparalleled growth, experts from the local Takaful industry debated whether the rise of Takaful companies are enhancing or cannibalizing the local insurance market, at the 8th Middle East Insurex 2011………………………………………..Full Article: Source

Technical Profit for the period ended 30 September 2011 was AED 35.2 million compared to AED 29.9 million for the period ended 30 September 2010, representing a growth of 18%. Gross Takaful Contributions increased from AED 117.6 million as at 30 September 2010 to AED 164.4 million as at 30 September 2011, representing a growth of 40%.
Basic Earnings per Share for the period ended 30 September 2011 of AED 0.23 compared to AED 0.18 for the period ended 30 September 2010, representing a growth of 28%………………………………………..Full Article: Source

The Muslim-majority region of Tatarstan has proved to be an attractive investment destination for funds – for both Russian Muslims and foreign investors based in Muslim countries.
Two Islamic funds have recently launched operations in Tatarstan. The first is the Malaysian private equity firm AmanahRaya Capital Group, which has already launched several projects in the republic. “We bypassed Moscow and came to Kazan, as it offers the most attractive investment climate,” says managing director Dato Ahmad Rodzi Pawanteh………………………………………..Full Article: Source