With its assets estimated to total nearly $1 trillion globally, Islamic finance remains tiny compared to conventional finance with its tens of trillions of dollars. The market in Islamic bonds, or sukuk, is believed to total about $50 billion, roughly 1 percent of global bond issuance.
But proponents of Islamic finance can point to impressive gains. Ashar Nazim, Islamic financial services leader at consultants Ernst & Young said it had expanded at a compound annual growth rate of 20 percent over the past three years, compared to 9 percent for conventional finance. That performance gap has probably widened further in the last two months as much new business in the West has ground to a halt………………………………………..Full Article: Source

French academics have shown their keenness to make use of Saudi expertise and experience in Islamic banking and finance, said Saudi Ambassador to Paris, Muhammad bin Ismail Al-Asheikh.
The ambassador made this comment while holding a reception in Paris on the occasion of the launch of an academic chair titled “Financial morals and principles: Islamic banking as a model.”……………………………………….Full Article: Source

The Indonesian government will begin offering retail Islamic debt papers (sukuk) to individual investors in March, after previous issuances drew strong interest, despite the shaky global financial market.
The Finance Ministry’s Debt Management Office (DMO) on Monday began accepting applications from banks and brokerages to be sales agents for the government’s fourth issue of Syariah-compliant bonds, English daily, The Jakarta Post, quoted DMO Chief Rahmat Waluyanto as saying………………………………………..Full Article: Source

Danajamin Nasional Bhd announced that it is guaranteeing the 13-year RM350 million Islamic Medium Term Notes (sukuk) programme issued by Mydin Mohamed Holdings Bhd.
The funds raised from the sukuk issue will be used to finance the construction and development of three Mydin hypermarkets, which is part of Mydin’s Entry Point Project under the Economic Transformation Plan, Danajamin said in a statement………………………………………..Full Article: Source

Qatar, the world’s biggest natural gas exporter, has raised $5 billion with its first sovereign bond issue in two years, capitalising on investors’ appetite for safe havens as the European debt crisis destabilises global markets.
The international bond sale, priced late on Tuesday, was the biggest from the Gulf this year. The tiny Arab state sold $2 billion in five-year bonds at a yield of 3.184 percent, $2 billion of 10-year bonds with a yield of 4.63 percent, and $1 billion of 30-year bonds yielding 5.825 percent………………………………………..Full Article: Source

Dubai Islamic Bank (DIB) and its mortgage unit Tamweel plan to hold fixed income roadshows beginning in Asia, followed by the United Arab Emirates and Europe, eyeing a potential bond sale for the unit guaranteed by the bank.
The roadshow will kick off in Kuala Lumpur on Thursday, with meetings in Singapore on Friday, the UAE on Sunday and London on Monday, a lead arranger told Reuters……………………………………….Full Article: Source

Shuaa Capital started another round of job cuts as the investment bank controlled by Dubai’s ruler moves away from retail brokerage business after markets in its home base declined and losses mounted.
“The redundancy program will take a number of weeks to complete,” the Dubai-based company said in an emailed statement. “In the first phase 29 people will be affected.”……………………………………….Full Article: Source

Saudi- based Alahli Takaful Companyannounced that it had mandated US law firm, King & Spalding as advisor toits SAR80m ($21.3m) rights issue and which opened for subscription.
King & Spalding joined Saudi financialadvisor Aldukheil Financial Group, which is leading the transaction, which isbeing underwritten by Al Rajhi Capital. Alahli is a joint venture between SaudiArabia’s largest bank, National Commercial Bank, German insurance firm FWUGroup, Hannover-based Vereinigte Hannoversche Versicherung and US-basedInternational Finance Corporation………………………………………..Full Article: Source

The instability that is transforming the Middle East and North Africa at various levels has left business in its largest economy largely unscathed. Generous spending plans announced by the Kingdom of Saudi Arabia in February and March have helped strengthen its stability. According to the last Regional Economic Outlook published by the International Monetary Fund in October, the economy of Saudi Arabia will grow by 6.5% in 2011, the second highest rate after Qatar’s.
In harmony with the country’s leading position in terms of GDP, the kingdom is home to the largest mutual funds industry in the MENA region………………………………………..Full Article: Source