Islamic finance assets around the world are expected to climb 33 percent from their 2010 levels to $1.1 trillion by the end of 2012, boosted by the aftermath of the Arab Spring uprisings and dissatisfaction with conventional finance in the wake of the global debt crisis, consultants Ernst & Young said in a report on Tuesday.
Growth in the Middle East and North Africa will be particularly strong, with assets rising to a projected $990 billion by 2015 from $416 billion in 2010, as new countries open up to Islamic finance, the report predicted………………………………………..Full Article: Source

A group of 16 banks resolved a quandary that has dogged the $1 trillion Islamic financing market for nearly three decades: how to represent rates on interbank funding when Islamic principles prohibit firms from charging interest.
The banks—working with industry associations and data provider Thomson Reuters—created a reference rate called the Islamic Interbank Benchmark Rate, or IIBR, which was put into use for the first time Tuesday. The banks say the solution, which complies with Islamic moral codes, known as Shariah, lies in considering money flowing between banks as investments that depend on the performance of underlying assets, rather than as interest-bearing loans………………………………………..Full Article: Source

A consortium of Islamic banks and financial industry associations launched the industry’s first international Islamic interbank rate on Tuesday, offering 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

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.
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………………………………………..Full Article: Source

RB-Hicom Bhd is planning to sell RM500mil of Islamic bonds to fund working capital and refinance debts, according to a note sent to investors.
The syariah-compliant debt, or sukuk, which pay returns from assets that comply with the religion’s ban on interest, was part of an existing RM1.8bil medium-term programme, the note said………………………………………..Full Article: Source

Senegal plans to meet investors before the end of the year before a potential debut sovereign Islamic bond, or sukuk, a senior executive at a unit of the Islamic Development Bank said on Tuesday.
The sukuk will be a dual-currency offering, in Senegalese francs and a foreign currency, possibly euro, Khaled Mohammed Al-Aboodi, chief executive of the Islamic Corporation for the Development of the Private Sector, said………………………………………..Full Article: Source

Abu Dhabi Islamic Bank has issued price guidance for a $500 million five-year Islamic bond, or sukuk, which will price later on Tuesday, arranging banks said.
Pricing guidance has been set at 250 basis points over midswaps, plus or minus 5 bps, with books due to close at lunchtime London time and final pricing earmarked for soon after, a source at a lead said………………………………………..Full Article: Source

MMC Corp Bhd’s wholly-owned subsidiary Senai Airport Terminal Services Sdn Bhd has established an Islamic medium-term notes programme worth RM330mil.
The proceeds will be used to finance, among others, the development of Sultan Ismail International Airport in Johor Baru and 1,100ha at the airport into a cargo and logistics hub, high-tech industries park and mixed development known as Senai Airport City………………………………………..Full Article: Source

Qatar may issue a new sovereign bond in coming weeks as it seeks to take advantage of healthy demand for high-rated Gulf debt and lock in funding at attractively low interest rates.
The world’s top liquefied gas importer and one of its wealthiest nations has mandated six banks to conduct roadshows with investors and a bond issue may follow, according to lead managers. ……………………………………….Full Article: Source

Islamic banking’s market share of all banking assets in Gulf crossed the 25 per cent threshold in 2011, according to Ernst & Young’s inaugural World Islamic Banking Competitiveness Report 2011 published on Tuesday.
Islamic banking assets in the Middle East and North Africa (Mena) increased to $416 billion in 2010, a five-year compounded annual growth rate of 20 per cent compared to less than nine per cent for conventional banks. Currently the segment has a market share of 14 per cent in the region………………………………………..Full Article: Source

Islamic banks operating in the UAE have objected to new lending rules enforced by the Central Bank early this year and requested amendments for their own business, saying some of the new rules violate Shariah banking.
The higher coordination committee for the Islamic banks said it had submitted proposals to the central bank asking for common standards for all dealings in Shariah-compliant banks in the second largest Arab economy………………………………………..Full Article: Source

Bahrain is keen to further establish partnerships with international Islamic finance centres including Malaysia to develop the industry further, said Central Bank of Bahrain, Banking Supervison executive director Khalid Hamad.
He said the central bank will remain active in developing industry standards and the standardisation of market practices via the Islamic Financial Services Board, Accounting and Auditing Organisation for Islamic Financial Institutions and International Islamic Financial Market………………………………………..Full Article: Source

Khalid Hamad Abdul-Rahman Hamad, Executive Director - Banking Supervision, Central Bank of Bahrain said, “Bahrain has a long and proud history in supporting the progress of Islamic finance. The Kingdom continues to play a pioneering role in the advancement of industry standards, best practices and in developing a strong regulatory structure. We look forward to welcoming back the global stage of the 18th Annual World Islamic Banking Conference to the Kingdom of Bahrain and to continuing its tradition of supporting growth and innovation in the international Islamic finance industry.
Shaikh Mohamed Bin Essa Al-Khalifa, Chief Executive of the Bahrain Economic Development Board said, “Bahrain continues to be widely recognised as a global leader in Islamic Finance, and is also home to a number of central bodies which set the standards for the industry across the globe………………………………………..Full Article: Source

The Council of the Islamic Financial Services Board (IFSB) has appointed the Governor of the Central Bank of Bahrain (CBB), HE Rashid Mohammed Al Maraj as Chairman, effective January 2012.
This is the second time the IFSB chair is with Bahrain. HE Sheikh Ahmad Al Khalifa, then Governor of Bahrain Monetary Agency was the inaugural Chairman of the IFSB Council for 2003. The Governor of the Qatar Central Bank, HE Sheikh Abdullah Saoud Al-Thani will be Deputy Chairman for 2012. The Chairmanship of the IFSB Council is on an annual rotational basis………………………………………..Full Article: Source

Fitch Rating has affirmed Abu Dhabi Islamic Bank’s (ADIB) Long-term Issuer Default Rating (IDR) at ‘A+’ with a Stable Outlook and downgraded its Viability Rating (VR) to ‘bb’ from ‘bb+’
The downgrade of the bank’s VR reflects concerns about ADIB’s weaker asset quality trends, particularly its high exposure to real estate and rising unreserved impaired loans. The bank’s Fitch core capital (FCC) ratio is also low compared to peers. The VR also reflects ADIB’s sound balance sheet liquidity, healthy pre-impairment operating profit and strong franchise in the UAE………………………………………..Full Article: Source

Doha Bank, Qatar’s fifth largest bank by market capitalization, sees a profit growth of 8 to 10 percent next year and is looking at options to sell its Islamic finance division, its deputy chief financial officer said on Tuesday.
“Our profit growth will be in line with the market … 2012 will be bit quiet,” Sanjay Jain, deputy chief financial officer for Doha Bank told reporters on the sidelines of a conference in Dubai………………………………………..Full Article: Source

Hong Leong Bank Bhd has extended the group’s voluntary separation scheme (VSS) to employees of Hong Leong Islamic Bank (HLISB). This follows the completion of the merger with EONCAP Islamic Bank on Nov 1, said HLISB CEO Raja Teh Maimunah Raja Abdul Aziz.
“Like in any merger, there will be streamlining of operations, support services, and infrastructure for synergies of productivity and efficiency,” she said………………………………………..Full Article: Source

Al Baraka Banking Group (ABG) has become a registered user of Bait Al Bursa, the Islamic finance division of the Bahrain Financial Exchange (BFX). The BFX Bait Al Bursa’s e-Tayseer, aMurabaha liquidity management platform, will help streamline Al Baraka Banking Group scheduling and execution of its Murabaha transactions.
Adnan Ahmed Yousif, President & Chief Executive & Member of the Board of Directors of ABG said, “We are very pleased with our decision to become a registered user of Bait Al Bursa. Our group will benefit greatly from the advantages of its first product e-Tayseer which we trust will further strengthen our Murabaha dealings efficiencies and we wish the BFX as a whole all the best in delivering their future plans.”……………………………………….Full Article: Source

Maybank Islamic Berhad has joined forces with Maybank MEACP of Singapore to launch a $500 million Asia-focused clean energy private equity fund.
In a statement announcing the fund, Maybank Investment Bank CEO Tengku Dato’ Zafrul Tengku Abdul Aziz said the 10-year private equity vehicle will invest in wind, solar, geothermal, small hydroelectric, biomass, biofuels and energy efficiency projects. The fund will invest in the Asia-Pacific region with a focus on countries like China, India, Indonesia, Malaysia, Thailand, the Philippines, Vietnam, Cambodia and Laos………………………………………..Full Article: Source

Keeping an eye on the world underprivileged, Malaysia is planning to set up a global zakat fund to help millions of poor people around the globe.
“The Endowment, Zakat and Haj Department (JAWHAR) is in the midst of setting up the World Zakat Organization and is in need of sponsorship from other Muslim countries,” said Jamil Khir Baharom, a Minister in the Prime Minister’s Department, Bernama news agency reported Tuesday, November 22………………………………………..Full Article: Source

Financial organisations from Bermuda and Luxembourg will be making their first appearance at this year’s World Islamic Banking Conference. And there will be a return of representation from Singapore as well as a strong turnout from Malaysia.
“This year’s event will be at least as strong as last year’s with forums being hosted by both the UK and, for the first time, France, reflecting the growing importance of Islamic finance in Europe,” said event organiser David McLean………………………………………..Full Article: Source

King and Spalding and its affiliated office in Riyadh, the Law Office of Mohammad Al-Ammar, advised Jeddah-based AlAhli Takaful Company in its proposed 80 million Saudi Arabian Riyal ($21m) capital increase through a rights issue.
The company published a prospectus for the rights issue after receiving approval from the Saudi Arabian Capital Markets Authority………………………………………..Full Article: Source

Takaful Emarat, the UAE’s first dedicated life and health takaful provider, has strengthened its offering with the launch of individual health insurance plans. The new health insurance plans will be economical with an extended scope of cover including international coverage, catering to the diverse health care needs of individuals and their families.
Earlier this year Takaful Emarat signaled its intent to grow its market share in the UAE with the launch of a suite of individual life saving plans. The personalised protection and saving plans offer customers flexible terms of protection as well as access to a wide range of Shariah compliant investment funds managed by renowned global fund managers………………………………………..Full Article: Source