The culture of Islamic finance contributed mainly to maintain Saudi resilience in the face of global economic downturn, Prince Turki Al-Faisal, chairman of King Faisal Center for Research and Islamic Studies, said.
“Saudi Arabia’s success and resilience in the current global economic downturn was due in large part to the Kingdom’s culture of Islamic finance — most notably Islam’s insistence on debt being tied to real equity and real assets,” said Prince Turki,recalling that there was a genuine connection between risk and reward that forced participants to maintain reasonable levels of leverage………………………………………..Full Article: Source

Around $900 billion in assets across the globe are managed by Islamic banks that operate according to sharia, an interpretation of Islamic law. In recent years, so-called Islamic finance has been growing at a rate of 15-20 per cent a year, and proved remarkably resilient to the financial crisis.
Proponents of the relatively new sector point to its back-to-basics financial structures, which have made it popular with a number of non-Mulsim clients who have little appetite for risk. Critics, though, say the restrictions it comes with–prohibitions, for example, on paying interest and investing in anything that involves porn, pork or booze–are archaic and unworkable………………………………………..Full Article: Source

Will 2012 be the year of “come together” consolidation for Islamic banks? Size is often the justification for achieving economies of scale, used to access deals for league table prominence, used as a buffer in a challenging environment, used as defensive measure to ward off unwanted suitors, and so on.
Islamic banks are very much like Islamic (equity) funds. There are hundreds of Islamic banks and funds, but the paid-up capital and assets under management, respectively, is too small to be meaningful. Yet, both, more so Islamic banks, present a unique situation (of an industry risk) of “too small to fail”………………………………………..Full Article: Source

Citigroup Europe is interested in entering into the sukuk, or Islamic bond, market in Turkey, the group’s Middle East and Africa (EMEA) board director Alberto Verme told Hürriyet.
Citigroup is one of the pioneers of the sukuk market in the Middle East Verme said, adding that it had worked with three banks in the region, while also pursuing activities in Indonesia and Malaysia. ……………………………………….Full Article: Source

HSBC Saudi Arabia said it had led a very successful SR15 billion ($4 billion) 10-year Sukuk issuance for the General Authority of Civil Aviation (GACA). The funds from the Sukuk issuance will be used for the construction of the new King AbdulAziz International Airport in Jeddah.
Walid Khoury, CEO of HSBC Saudi Arabia, ‘We are extremely proud and honoured to be part of this historic transaction, that is globally the largest single-tranche Sukuk ever issued.’……………………………………….Full Article: Source

Plans by sovereigns outside the Middle East and other largely Islamic regions to tap the sukuk market could meet pent-up demand from Islamic institutional investors and banks to diversify their bond holdings, making the sukuk market a useful source of additional funding over time, Fitch Ratings said.
The opportunity to buy Shariah-compliant debt from investment grade sovereigns that have not yet tapped the market would be likely to generate strong investor appetite………………………………………..Full Article: Source

Abu Dhabi government-owned Al Hilal Bank has confirmed the appointment of three banks to manage its debut $500 million Islamic bond issue, which will be issued later this year, its chief executive said on Monday.
“We have started the preparatory work for issuing our first sukuk for which we are still at an early stage. We hope that this year we can tap the market,” CEO Mohamed Berro said in an interview on the sidelines of an Islamic finance and banking conference in the capital of Oman………………………………………..Full Article: Source

The United Kingdom is no where nearer to going to the wholesale sterling market to raise financing through a debut benchmark sovereign sukuk in 2012 than it was in January 2011 when Treasury last confirmed that it would not be “value for money” for the UK taxpayer to do so.
The latest minister to reiterate the “not-value-for-money” explanation is Lord Sassoon, Commercial Secretary to the Treasury, and the minister in overall charge of the coalition government’s Islamic finance policy………………………………………..Full Article: Source

NASDAQ Dubai and the Dubai Financial Services Authority (DFSA) explained the advantages of listing conventional bonds and Sukuk on the region’s international exchange, at a forum attended by leading investment banks and law firms.
The event held at the Dubai International Financial Centre (DIFC) provided details of the new listing and admission framework, following the transfer of NASDAQ Dubai’s Official List of Securities to the DFSA in October 2011. This framework gives issuers the ability to list debt in a streamlined manner under an aggressive timetable, comparable to listing regimes on other international exchanges. (Press Release)

Plans by South Africa’s National Treasury to introduce Islamic bonds are gaining a strong support in the African country, amid expectations the move would help boost the state’s economy.
“I am sure this was at the request of those Middle Eastern countries because SA has a small Muslim population,” Kokkie Kooyman, head of Sanlam Investment Management: Global,said………………………………………..Full Article: Source

The Central Bank of Bahrain (CBB) announces that the monthly issue of the Sukuk Al-Salam Islamic securities for the BD18 million issue, which carries a maturity of 91 days, has been subscribed by 208%.
The expected return on the issue, which begins on 25 January 2012 and matures on 25 April 2012, is 1.25%. The securities are issued by the CBB on behalf of the Government of the Kingdom of Bahrain………………………………………..Full Article: Source

Tebyan Asset Management (Tebyan), the joint venture asset management arm of Qatar First Investment Bank (QFIB), yesterday announced its debut Tebyan CHIME Opportunities Fund (Fund). This is the first of its kind Shari’ah-compliant product to offer investors a gateway to the emerging economic axis of the Arab-Indo-China regions.
QFIB is Qatar’s independent Islamic investment bank, authorised by the QFC Regulatory Authority………………………………………..Full Article: Source

Oman’s two Islamic banks will float 40 percent of their shares by June, the sultanate’s central bank Executive President Hamood Sangour al-Zadjali said on Monday.
“Bank Nizwa will issue an initial public offering of 40 percent of its capital of 150 million rials ($389.61 million), while Al Izz International Bank will issue 40 percent of its 100 million rials capital by June this year,” Zadjali told reporters on the sidelines of an Islamic finance conference………………………………………..Full Article: Source

Darwish bin Ismaeel al Balushi, Minister Responsible for Financial Affairs, has ruled out any government plans to invest in the Islamic banking sector. Speaking at the opening of the First Islamic Banking here yesterday, Al Balushi said that conditions are ripe for Islamic banking in the Sultanate where the society considers the monetary system as part of its values.
The sector looks lucrative due to limited financing by traditional monetary institutions, thus paving the way for other investors to operate. Al Balushi expected that the Islamic banking sector will provide new employment opportunities for youth………………………………………..Full Article: Source

His Highness Sayyid Fahd bin Mahmood al Said, Deputy Prime Minister for the Council of Ministers, received here yesterday Dr Ahmed Mohammed Ali al Madani, Chairman of the Islamic Development Bank Group, who is currently taking part in a conference hosted by the Sultanate.
HH Sayyid Fahd hailed the role of the international Islamic banking institution in supporting communication among the 56 member states of the Organisation of Islamic Co-operation. He expressed appreciation for the Islamic Development Bank Group’s efforts in supporting social and economic development and trade financing in member states………………………………………..Full Article: Source

ahlibank, one of the leading financial institutions of the Sultanate, unveiled the logo of its Islamic banking services in Oman. The logo of the Islamic banking services under the brand name of Al Hilal Islamic Banking Services, were inaugurated by His Highness Sayyed Faisal bin Turki Al Said, COO, Brand Oman Management Unit.
The members of ahlibank’s board of directors, the Sharia Board, CEO and senior officials of the bank were also present at the ceremony………………………………………..Full Article: Source

Mohamed Hamed Rashid is confident on his investment structure. Already, he has thrown over $100,000 into funding a new alternative energy project, but instead of looking for interest on his savings and start-up capital, he prefers the Islamic banking structure, which he argues delivers more freedom and more security than traditional Western banking.
“When I looked at the possibilities and where to put our money, the Islamic bank was the best option for us,” Rashid told Bikyamasr.com……………………………………….Full Article: Source

The profit of Islamic banking industry (IBI) reached Rs 8 billion by end of the first quarter of 2011-12, showing growth of over 58 percent, as earning’s growth rate of conventional banks having Islamic banking branches is significantly higher than the growth rate of full-fledged Islamic banks.
The study ‘Islamic Banking Bulletin July-September 2011’ released by the State Bank of Pakistan (SBP) revealed that the share of full-fledged banks in overall profit of IBI though declined marginally over this quarter still constitutes major share (55 percent share) of overall profit of the industry………………………………………..Full Article: Source

Qatar International Islamic Bank’s (QIIB) net profit jumped to QR653m, a growth of 17 percent, for the year ending 2011. Announcing the results, QIIB Chairman and Managing Director Sheikh (Dr) Khalid bin Thani bin Abdullah Al Thani said the results indicate the bank has improved its overall performance and equipped it to play a major role in the Qatari economy. QIIB is working towards achieving the top position in Islamic banking, he added.
The full year results were announced after a meeting at the QIIB Board of Directors here yesterday. The Board recommended to the General Assembly of shareholders the distribution of dividend 35 percent of it’s paid up capital equivalent to QR3.5 per each share………………………………………..Full Article: Source

Barclays Wealth, the UK lender’s private bank, said on Sunday it has named Faisal Shaker head of its business in Saudi Arabia, the Arab world’s largest economy. Shaker will report to Rory Gilbert who is managing director, head of Middle East and North Africa.
Gilbert said the appointment reflects the “mounting focus” on Saudi Arabia, which is one of the region’s most appealing private banking hotspots. Prior to joining Barclays, Shaker was head of wealth management for Audi Capital Saudi Arabia………………………………………..Full Article: Source

The Islamic Development Bank (IDB) will provide around $3 billion to Pakistan during 2012-15 to help it achieve sustainable socio-economic development. The IDB plans to provide the funding under a new partnership strategy, a copy of which has been obtained by Dawn.
The assistance will be used for infrastructure development in energy and transport sector; supporting sustainable agriculture and rural development; and enhancing human development in education and health sectors………………………………………..Full Article: Source

Majid Al Futtaim Holding on Monday announced 10 per cent year-on-year increase in revenues and indicated expansion in both existing and new markets during 2012. The leading shopping mall, retail and leisure pioneer across the Middle East and North Africa (MENA), said the company has strong liquidity and waiting for right time to go for Islamic or conventional bond.
Revenues reached Dh18.7 billion in 2011, at the same time its Earnings before Interest, Taxes Depreciation and Amortization (EBITDA) from recurring operations grew by 18 per cent year-on-year to reach over Dh2.7 billion, according to the company………………………………………..Full Article: Source

Islamic Holding Group has announced its full year results for the period that ended on December 2011. The announcement came after meeting of the board of directors held here yesterday under the chairmanship of Sheikh (Dr) Khalid bin Thani bin Abdullah Al Thani, Chairman of the Board of Directors.
The results showed that the net profit of the Group by the end of December, 2011 was QR4.6m, compared with QR4m by the end of 2010, a growth of 16 percent………………………………………..Full Article: Source