Islamic banks could be boosted by a nearly doubling of assets within five years, as borrowers seek alternative methods of financing due to a cutback in lending at European and US banks. Analysts at Deutsche Bank, led by Ryan Ayache, have predicted in a report that global Islamic banking assets could reach $1.8 trillion by the end of 2016 – up 90% on the $939bn of assets in 2010.

The analysts argued that Islamic banks would benefit from the regulatory burden on banks in developed markets, such as Europe and the US, which will curtail bank lending. They also argued that there is growing awareness and acceptance of Islamic finance and sharia-compliant products………………………………………Full Article: Source

Indonesia sold $1 billion of seven- year Shariah-compliant bonds to yield 4 percent yesterday, helping the nation revive Islamic debt sales amid the slowest half in three years. The securities sold at 100 cents on the dollar, according to data compiled by Bloomberg. HSBC Holdings Plc, Citigroup Inc. and Standard Chartered Plc managed the sale.

Indonesia, which is rated BB+ by Standard & Poor’s, one level below investment grade, sold a debut $650 million worth of dollar-denominated sukuk in April 2009. The bonds, due in April 2014, sold to yield 8.8 percent………………………………………Full Article: Source

Abu Dhabi’s Al Hilal Bank has picked three banks to arrange its debut Islamic bond, or sukuk, three sources familiar with the matter said on Monday, with the deal expected to emerge in the first quarter of 2012, one of them added.

Standard Chartered, HSBC and National Bank of Abu Dhabi have been mandated by unlisted Al Hilal for a benchmark-sized deal under a bond programme which could be worth up to $3 billion, one source with knowledge of the matter told Reuters………………………………………Full Article: Source

Abu Dhabi Commercial Bank has picked four banks for a potential Islamic bond, or sukuk, which could be launched this week, making it the second lender from the emirate currently eyeing a chunk of Islamic liquidity amid dicey global markets.

ADCB has picked itself as well as Bank of America, J.P. Morgan Chase and Standard Chartered as joint lead arrangers and bookrunners for a debut dollar-denominated sukuk, a document from arranging banks showed on Monday………………………………………Full Article: Source

Abu Dhabi’s banks are increasingly trying to diversify their funding base by tapping the international bond market, their activity in recent weeks suggests.In doing so, the banks, backed by the Abu Dhabi government’s phenomenal capital strength, may reinforce the global investor perception that they are less risky than some major European banks, say analysts.

Earlier this month, Union National Bank (UNB) announced that it had completed a $400 million bond issue………………………………………Full Article: Source

International Bank of Qatar (IBQ) plans to issue up to $750 million in bonds late next year as part of a strategy to increase long-term debt on its balance sheets, the bank’s managing director said on Monday. The bank will also seek a credit rating in early 2012, Managing Director George Nasra said.

“IBQ plans to sell up to $750 million in bonds in the second half of next year. This is part of the bank’s long term strategy for growth. We want to increase the long-term debt on our balance sheets. We will also be seeking credit rating early next year,” Nasra said………………………………………Full Article: Source

Shariah-compliant funds, which promote investment along lines similar to the niche ethical funds available to Western consumers, are yet to gain the desired recognition in India, one of the largest demographical economies for Islam.

However, these funds, based on Islamic principles and currently managing a meagre Rs 140 crore in assets, hold potential to garner more investment as financial service providers seek to tap into the increasing demand for investment products that respect the principles of Islam………………………………………Full Article: Source

Shariah-compliant funds, which promote investment along lines similar to the niche ethical funds available to Western consumers, are yet to gain the desired recognition in India, one of the largest demographical economies for Islam.

However, these funds, based on Islamic principles and currently managing a meagre Rs 140 crore in assets, hold potential to garner more investment as financial service providers seek to tap into the increasing demand for investment products that respect the principles of Islam………………………………………Full Article: Source

Conventional and Islamic finance may co-operate or even compete to produce the best outcome for common projects such as the provision of cheap banking for the world’s poor or for investment in environmental undertakings, say two eminent economists.

Ajit Singh, Emeritus Professor of Economics at the University of Cambridge, UK and Tan Sri Andrew Sheng, president of Hong Kong-based Fung Corporation, said at a public lecture here today that co-operation between these two systems is not only feasible but also desirable………………………………………Full Article: Source

Shares of National Takaful Company or Watania were listed on the Abu Dhabi Securities Exchange, or ADX, on Monday. Watania is the 17th insurance company to be enlisted on the bourse out of total 67 companies. Watania’s Initial Public Offering of Dh82.5 million launched in May this year proved highly successful, being oversubscribed seven fold to Dh620 million.

Shares closed at a price of Dh1.13 a share after opening at Dh1.08 a share. A total of 1.43534 million shares valuing Dh1.62 million changed hands on the first day………………………………………Full Article: Source