A consortium of Islamic banks and financial industry associations launched the industry’s first Islamic interbank rate on Tuesday, providing a sharia-compliant alternative to traditional interest-based benchmarks.
The Islamic Interbank Benchmark Rate (IIBR), based on rates contributed by 16 Islamic banks and Islamic sections of conventional banks, is the average expected return on sharia-compliant, short-term interbank funding………………………………………..Full Article: Source

Saxo Bank, the online trading and investment specialist, has enabled its clients to identify and trade Islamic compliant stocks and ETFs on more than 25 exchanges worldwide. The Bank selected IdealRatings Inc., a leading global Islamic compliant fund management service provider, as the most reliable source for identifying Islamic compliant instruments globally.
The compliance reasoning is based on commonly accepted and transparent Islamic guidelines defined by IdealRatings and Shariah Review Bureau with operations in Jeddah, Bahrain and Saudi Arabia and Manama. More than 12,000 stocks and Exchange Traded Funds (ETFs) are screened and researched on a monthly basis by IdealRatings. (Press Release)

Private client interest in Islamic financial products is growing at record levels, the Middle Eastern head of Saxo Bank said today. The Danish bank and online brokerage has begun offering Middle Eastern investors access to internationally-listed Islamic equity products, aiming to capitalise on the booming demand for Shariah-compliant cash and exchange-traded fund products.
The bank has partnered with Middle Eastern fund manager IdealRatings to identify compliant stocks and equity-based ETFs across 25 international exchanges, offering local clients access to a broader range of investment options……………………………………….Full Article: Source

Albaraka Banking Group’s Turkish unit Albaraka Türk has mandated four banks on a series of investor meetings and may issue an Islamic bond as early as next month, a banker familiar with the matter said on Monday.
“Albaraka Turk mandated Deutsche Bank, Emirates NBD, Noor Islamic Bank and QInvest to arrange fixed income meetings in Asia, Europe and the Middle East starting Nov 26,” the banker, who asked not to be named, told Reuters………………………………………..Full Article: Source

Islamic bond issues, which have outpaced the conventional bonds industry in recent months, should continue to show strength into the first quarter of 2012 as borrowers seek better pricing and alternative funding amid the global debt crisis, Islamic bankers said on Monday.
Both conventional and Islamic institutions, as well as global sovereigns, have been flocking to the Islamic bond, or sukuk, market, creating an unusually active fourth quarter. Debt woes in Europe and a rush to the market before the window for issuance closes ahead of the holidays have intensified activity, but it should regain momentum in the first quarter………………………………………..Full Article: Source

Bahrain’s $750 million Islamic bond issue last week is a part of its plan to create a yield curve, the central bank said yesterday. “Bahrain’s return to the sukuk market through a longer dated issue is a part of our desire to create a yield curve in the international sukuk market in the same way that we have in our domestic market,” said Shaikh Salman bin Isa Al Khalifa, executive director of banking operations at Central Bank of Bahrain (CBB).
The kingdom, hit by political upheaval earlier this year, drew $1.8 billion in demand for its seven-year bond, or sukuk, its first sovereign issue since March 2010, pricing it at a yield of 6.273 per cent on Wednesday………………………………………..Full Article: Source

Abu Dhabi Islamic Bank has issued an initial pricing indication for a five-year dollar-denominated benchmark-sized sukuk, or Islamic bond, with pricing set for Tuesday at the earliest, leads said on Monday.
The bank will look to price the offering in the mid-200s over midswaps area, according to a document sent out by arranging banks, seen by Reuters………………………………………..Full Article: Source

Banks have drafted a list of pointers for organisations seeking to raise new capital on credit markets. The move is intended to improve transparency and provide a stamp of approval for bonds and sukuk issued in the Gulf.
The guidelines were drafted by the Gulf Bond and Sukuk Association (GBSA), an industry body composed of 27 banks and other financial services firms………………………………………..Full Article: Source

Abu Dhabi National Energy Company (Taqa) has launched a tender offer for its $1.5 billion bond maturing 2012 and mandated four banks for a new bond issue to partly refinance the existing debt maturity.
Taqa, which is 75 per cent owned by the government of Abu Dhabi, has picked Bank of America, RBS, Standard Chartered and Mitsubishi UFJ to arrange investor meetings in Asia, London and the US after which the company may issue a bond under its global medium term notes programme, “subject to market conditions.”……………………………………….Full Article: Source

Oman’s new regulatory and legal framework for Islamic banking and finance should be completed by the end of this year. “We are building a legal and regulatory framework in consultation with the banking community. This is headed by a Special Committee who has been working on this with a top international consultancy firm for the last six months to come up with the appropriate framewrok,” explained Hilal Ali Saud Al-Barwani, vice president, Banking Control and Legal Department, Central Bank of Oman.
He confirmed that Oman will not have a standalone dedicated Islamic Banking Law and the new Islamic banking legal and regulatory framework will be incorporated into the existing Banking Law through specialized additional articles………………………………………..Full Article: Source

Central Bank of Nigeria (CBN), has formally joined International Islamic Liquidity Management Corporation with an initial investment of $5 million. The investment accords Nigeria the full membership of the body. What is not clear, however, is if the investment has the backing of the Presidency that has the power to approve such investment.
At the tail end of Chukwuma Soludo’s tenure, the CBN investment in Africa Finance Corporation became contentious as he was accused of not having Presidential approval for the investment of public funds in AFC. The matter was fully investigated………………………………………..Full Article: Source

Knowledgeable sources revealed that the Bank of Dubai may merge with the Emirates Islamic Bank NBD (EIB). A committee comprising of Emirates NBD’s executive director Rick Bender, and senior representatives of Dubai Bank and EIB found that the merger would be possible given EIB’s sophisticated system which allows it to fully absorb Dubai Bank’s operations, in addition to significantly minimizing costs as a result of adopting a unified system, Alkhaleej said.
In an unsourced report, the Sharjah-based Arabic language daily said the merger would cut costs for both banks, adding that the committee decided it would not be feasible for Dubai Bank to remain a separate entity because of the downturn in business in the country and the surge in Shariah-complaint bank services………………………………………..Full Article: Source

Many people think that Islamic banking and finance is a cure to all the financial woes. In fact that is not the case. Islamic banking and finance is as man-made as the conventional banking. The only difference is that Islamic banking and finance seeks basic guidance from Islamic sources like the Quran, Sunnah, Ijma and Qiyas.
Only because of this Islamic banking and finance is free from some of the weaknesses and problems besetting conventional banking. There is very strong theoretical evidence that the principles of Islamic banking and finance are superior to the principles of conventional banking. ……………………………………….Full Article: Source

Leading players, industry thought leaders and key regulators in the international Islamic banking and finance industry will take part in the 18th Annual World Islamic Banking Conference (WIBC 2011).
“In recent years Islamic finance has further transitioned into a dynamic, fast growing and highly competitive market servicing an increasingly international community,” said WIBC managing director David McLean………………………………………..Full Article: Source