The winds of change in Islamic finance are really blowing across the southern tip of the African continent - South Africa to be precise. At close of business on Dec. 21 the deadline for financial institutions to submit proposals for advising the South African government on the structuring and issuance of its debut sovereign Sukuk will expire.
Shortlisted bidders will be informed by Jan. 20, 2012, which means that the global mandate may take a few more months to be issued………………………………………..Full Article: Source

Sukuk markets in Saudi Arabia have seen steady, albeit unspectacular growth, as leading blue chip names — notably Saudi Electricity Co. and SABIC (Saudi Basic Industries Corp.) —have repeatedly tapped the market and a handful of others have followed suit.
The Saudi Stock Exchange Tadawul now has secondary trading platform for sukuk with a total eight of listed issuances at present………………………………………..Full Article: Source

Saudi Arabia is the somewhat reclusive economic superpower of the MENA region. It has the largest population, GDP and oil reserves in the GCC region and is strategically and militarily important on both a regional and global scale.
However, unlike its neighbors the UAE or Bahrain, Saudi Arabia is not a culturally or economically-welcoming place for international business and as such much of Saudi Arabia’s non-oil related business is an internal market………………………………………..Full Article: Source

The Turkish unit of Bahrain’s Albaraka Banking Group has postponed its planned $200 million Sukuk issue. Albaraka had previously said on Dec 11 that it hoped to raise $200 million in an Islamic bond by the end of the week, citing interest from Asian and Arab Gulf investors.
Last month, Albaraka Turk Katilim Bankasi had mandated Deutsche Bank, Emirates NBD, Noor Islamic Bank and QInvest for the Sukuk. It appears the issuance has been postponed because the yields investors expected were too high………………………………………..Full Article: Source

Commercial Facilities Company (CFC), a leading Kuwaiti consumer finance company, has announced the successful completion of a KD50 million ($180 million) local bond issuance in which NBK Capital acted as the lead manager.
CFC is the largest non-bank consumer lender in Kuwait, with gross installment debtors’ portfolio of approximately KD297 million ($1,067 million) as of December 31, 2010, a statement from the company said………………………………………..Full Article: Source

The government will borrow around Rs50 billion through sales of instruments to Islamic financial institutions, a statement said. The State Bank of Pakistan (SBP) will invite tenders on December 20 for sale of three-year government of Pakistan Ijara Sukuk (GIS) from the designated primary dealers, according to the communique issued by the central bank.
The maximum value of the asset under the present issuance programme of the Ijara Sukuk is Rs234.6 billion, the communique said………………………………………..Full Article: Source

Last year Malaysia accounted for 72.5% of total sukuk issued globally. The trend continues unabated this year though the country still has some way to go to become a truly international hub.
Nonetheless, it has become a singular entity with clear prospects, based on a robust regulatory infrastructure, a buoyant domestic issuance market and related institutions, which have set a consistent and enviable run of benchmarks for sukuk issuance. The success of Malaysia in establishing a pre-eminent position in Islamic finance is not happenstance………………………………………..Full Article: Source

Even in retirement he remains the most popular politician to the Muslim “man-and-woman-in-the-street”. Now as an elder statesman, Mahathir Mohamed, the former Malaysian prime minister, continues to give advice whether on the global financial crisis, on the future of the Islamic banking industry, on the Islamic gold dinar, on the future of US dollar as an international trading currency, and on his celebrated spat with arch speculator and fund manager, George Soros, in the aftermath of the Asian financial crisis in 1998.
There definitely is a future for Islamic finance. It would not be spectacular; it would not be the cause of booms and busts………………………………………..Full Article: Source

Qatari commercial banks must transfer accounts from Islamic windows into a portfolio to be held by the central bank until they mature but commentators concerned over future competition in banking.
Qatar Central Bank (QCB) will manage the Islamic assets separately. “These will be carried in a portfolio, outside the activity of their business,” Qatar Central Bank Governor Sheikh Abdullah bin Saud Al Thani told Bloomberg News. “We are not in the business of mixing the Islamic with the non- Islamic by the end of the year.”……………………………………….Full Article: Source

The cost of covering mounting debt is expected to eat into profits at Emirates NBD for years to come, analysts warned as they slashed estimates for the UAE’s biggest bank.
HC Securities lowered its target price by 20.4 per cent to Dh3.90 yesterday after warnings from the bank’s management that higher provisions for bad debts may be necessary………………………………………..Full Article: Source

Emirates NBD PJSC, the United Arab Emirates’ biggest bank by assets, had its price estimate cut 20 percent at HC Brokerage, citing rising loan-loss charges and a possible acquisition of mortgage lender Amlak Finance PJSC.
“We think an Emirates NBD acquisition of Amlak has become more likely and believe Emirates NBD may also have to absorb some of the refinancing needs of government owned entities in 2012, particularly if European and U.S. banks reduce their exposure to the region,” analysts Jaap Meijer and Kareem Ghaly wrote………………………………………..Full Article: Source

Emirates NBD, the UAE’s largest bank by assets, could take over Islamic property finance company Amlak next year. This along with the recent takeover of Dubai bank will adversely impact the bank’s profitability and capitalisation levels, HC Securities, a brokerage firm, said.
The acquisition of Dubai Bank, according to the brokerage, lowered the shareholder value slightly and has a negative impact of one percentage point on Tier 1 capital. The report said there is a chance of Emirates NBD buying Amlak………………………………………..Full Article: Source

Emirates NBD could see its Tier 1 capital ratio fall by nearly 1.1 percentage points if it is forced to absorb embattled property lender Amlak Finance, HC Securities said on Sunday.
ENBD, which is 56-per cent owned by the government of Dubai, has already taken on one debt-ridden financial institution, Dubai Bank, at the behest of the authorities — resulting in a Tier 1 drop of 1 percentage point under the Bank of International Settlements (BIS) ratios, the brokerage said in a research note………………………………………..Full Article: Source

HSBC plans to double the number of branches its Islamic banking arm, HSBC Amanah has in Malaysia as it looks to build a $1bn business in the country and neighboring Indonesia.
The group has identified the two countries as key markets in Asia that will help drive its growth in the coming four to five years, and it is keen to take a lead in the region’s booming Islamic finance sector………………………………………..Full Article: Source

Executive President of the Sultanate of Oman predicts rapid growth for Islamic finance in the Sultanate as the Central Bank develops rules and regulations. HE Hamoud Bin Sangour Al Zadjali, Executive President of the Central Bank of Oman, was speaking at the Oman Islamic Economic Forum, which took place in Muscat on 17 and 18 December.
He said, “These banks need to follow assorted accounting standards in certain cases that are acceptable by the parties who are trading in the stock markets and are in line with international standards………………………………………..Full Article: Source

Islamic banking services in the Sultanate will witness robust growth in the coming days as the central bank will develop general rules and regulations to ensure good governance in these banks, said HE Hamoud Bin Sangour Al Zadjali, Executive President of the Central Bank of Oman.
However, Islamic banks should ensure that their banking transactions are sharia compliant, he added. ……………………………………….Full Article: Source

Given the steady progress strategy of the Sultanate coupled with its dependability on diversified economic sources and the all around efforts in developing its capabilities in Islamic finance, Takaful and the factors in relation to the social responsibility in the Islamic finance sector, the country has a commendable potential to be a pioneer in Islamic banking.
Apart from the current issues in Islamic law covering finance, economic development, role of Zakat and the corporate social responsibility were also discussed. Six working sessions were conducted with special focus on the nation’s potential to be a pioneer in this area………………………………………..Full Article: Source

India must re-examine its stand on Islamic finance and Islamic banking system for inclusive growth, said experts at a workshop, where a group of business and community leaders discussed ways to economically empower Muslims by going beyond government schemes and handouts.
Islamic finance refers to interest free finance/banking and encourages profit-loss sharing. It is banking activity that is consistent with the principles of Islamic law or Shariah which prohibits payment and receipt of interest. Investing or deriving benefits from activities like alcohol, pork, tobacco, gambling, adult entertainment etc. are also prohibited………………………………………..Full Article: Source

Bank Islam Malaysia Bhd (Bank Islam) is working towards its third initial public offer (IPO) in sync with efforts to increase its non-fund based income.
Managing director Datuk Seri Zukri Samat said the bank completed listing of two companies on Bursa Malaysia earlier this year and has been working hard in getting more mandates to increase its non-fund based income………………………………………..Full Article: Source

Dubai Islamic Bank Pakistan (DIBP) has launched the country’s first Islamic priority banking solution, offering customers ’a gateway to an exquisite banking experience’.
A statement from the bank said DIBP’s specially designed priority lounges will provide its customers with a hassle-free banking experience with its dedicated relationship managers. Dubai Islamic Bank Pakistan is offering both a Priority and Platinum Banking solution………………………………………..Full Article: Source

Kuwait Finance House (KFH) CEO Mohammed Al-Omar asserted that the development of skills of KFH employees has no ceiling, and noted that all employees are aware of the importance of improving and upgrading their skills.
It is worth noting that the Development and Research Manager Unit at KFH Adnan Al-Mulla has obtained a PhD degree in his field of work, which prompted Al-Omar to receive him and take a copy of his studies. He went on to say that such academic efforts are highly appreciated, since they allow KFH to offer its clients innovative Islamic services and products………………………………………..Full Article: Source

Takaful Insurance for Africa’s largest shareholder, Cooperative Insurance Company (CIC) is relishing its decision to invest in Kenya’s first Takaful company.
CIC’s GM, Kenneth Kimani, citied TIA’s strong progress and the fact that Takaful in Kenya offers better opportunities for growth than conventional insurance………………………………………..Full Article: Source

Bahrain’s BMI Bank has signed a strategic agreement with regional insurer Medgulf Allianz Takaful. The partnership between Allianz and Medgulf will allow the bank to offer customers a suite of life and non-life Takaful products through its branch network.
The bank’s CEO Jamal Al Hazeem [below] said in a statement: “We are confident that the alliance with Medgulf Allianz Takaful will help us achieve our vision of providing our customers with a comprehensive range of products from a leading insurer… We believe that retail services like bancassurance, amongst others, help enhance our product offering and make our bank a stronger choice for customers within Bahrain.”……………………………………….Full Article: Source

New Jersey-based insurance ratings firm A.M. Best has come out with a set of draft guidelines for rating Takaful firms. The new guidelines address a number of concerns that Takaful firms have, but none more important than the limitations of the Shari’ah compliance rules on the investments available to Takaful firms and the lack of Shari’ah compliant fixed income products like Sukuk.
A.M. Best said: “Takaful companies need to develop and demonstrate that they can apply an adequate risk-based approach to investment management because of the reduced investment opportunities.”……………………………………….Full Article: Source

Eyeing a bigger share of halal industry pie, the Malaysian government has invited all Malaysians to participate in promoting halal industry in the country, regardless of race and religion.
“I encourage Muslims and non-Muslim entrepreneurs to enter the industry even if they start small,” Chief Minister Tan Sri Abdul Taib Mahmud said before launching the Halal Transformation Program 2011 on Saturday………………………………………..Full Article: Source