Ringgit-denominated sukuk issuances dominated fund-raising activities approved by the Securities Commission (SC) in2011, accounting for RM78.9 billion out of RM118.9 billion total funds approved through the capital market.
In its Fourth Quarter 2011 Scorecard released today, the SC said more than half of the amount to be raised from sukuk issuances was approved during the fourth quarter, through 15 ringgit-denominated sukuk issues which were set to raise RM41.7 billion from the market………………………………………..Full Article: Source

The yield on Dana Gas PJSC (DANA)’s $1 billion Islamic bonds jumped to the highest level in two weeks as the United Arab Emirates energy company reported full-year results without providing an update on the sukuk repayment.
The rate on the 7.5 percent sukuk due in October climbed 79 basis points to 64.69 percent, the highest since Jan. 16, at 5:35 p.m. in Dubai, according to data compiled by Bloomberg. The price dropped to 68.17 cents on the dollar………………………………………..Full Article: Source

Profits at Dana Gas, an oil and gas producer based in Sharjah, more than trebled last year on the back of increased production and surging crude prices. The reaction on the stock market remained muted, however, as the company remained silent on its strategy to repay a US$1 billion (Dh3.67bn) sukuk maturing in October.
Net income rose to Dh506 million from Dh158m in 2010. Gross revenue jumped 43 per cent to Dh2.53bn………………………………………..Full Article: Source

Nasdaq Dubai has become the first securities exchange to join the Gulf Bond and Sukuk Association (GBSA) in a move that will strengthen the development of the region’s debt markets.
Nasdaq Dubai is the region’s largest exchange for sukuk, with 15 listings with a total nominal value of $10.6 billion. It has seven conventional bond listings with a total nominal value of $5.1 billion………………………………………..Full Article: Source

Kazakhstan plans to borrow about $2.2 billion this year from external markets to fund a series of projects, including a transport corridor from China to Europe, its finance minister said. Bolat Zhamishev told a government meeting that state-owned corporations would probably set a benchmark for foreign borrowing before the state itself would consider issuing a Eurobond or Islamic bond.
“We don’t have any need to plug a budget deficit right now,” Zhamishev said. “The issue of Eurobonds or sukuk depends on the market and the external borrowing plans of the corporate sector, so we are monitoring the situation on world financial markets.”……………………………………….Full Article: Source

More must be done to promote Islamic banking to non-Muslims, Bank Muamalat chairman Tan Sri Dr Munir Abdul Majid said. He said while the country’s Islamic banking industry had grown, it had not reached its full potential.
“I’m shocked that many non-Muslims in Malaysia think that Islamic banking is only for the Muslims whereas in overseas, some 80% of the sukuk market investors are non-Muslims. “The challenge for us is to get non-Muslims to use our banking services by showing them how Islamic banking products can grow their business,” he said………………………………………..Full Article: Source

The Islamic Development Bank (IDB) will invest in the construction projects, said the bank’s representative in Iran. Speaking in a ceremony to sign an agreement between the bank and Hormuzgan Regional Water Company on Saturday, Ali Fallahi said the investment, which amount to $3 billion, will be made in the next three years, IRNA reported.
He noted that based on earlier plans, his bank is to invest $650 million in four basic construction projects in the Islamic Republic of Iran in 2012……………………………………….Full Article: Source

Elaf Bank has concluded an Ijarah Muntahia Bittamalluk facility to Serba Dinamik Sdn Bhd to finance a 5-year contract awarded by Petronas Carigali Sdn Bhd. SDSB is a Malaysian based company providing fully integrated and specialized engineering and maintenance services to oil and gas, petrochemical, and utilities companies in Malaysia, Indonesia and the Middle East and North Africa region.
Elaf Bank is the lead arranger and advisor for the USD5.0 million funding exercise, and the underwriter for Tranche 1 of the financing………………………………………..Full Article: Source

UAE lender First Gulf Bank PJSC (FGB) said, it has posted 8 per cent growth in net profits reaching Dh3.70 billion in 2011, higher than it did last year. Its net profits for the fourth quarter amounted to Dh1.02 billion, 18 per cent higher than same quarter of 2010 at Dh865 million, and 11 per cent higher than the third quarter of 2011.
Due to the growth in the asset book, the net interest and islamic financing income for the full year 2011 was at Dh5.07 billion, 19 per cent higher than 2010, the corporate and retail fees and commissions stood at Dh1.20 billion, 19 per cent lower than 2010, mainly on the back of regulatory changes to the retail lending framework implemented in May 2011………………………………………..Full Article: Source

Despite the global economic crisis and the challenging period for Bahrain, the Kingdom had attracted investments worth $300 million in 2011, according to data released by the country’s economic development board.
The Bahrain Economic Development Board (EDB) said the Kingdom continued to secure significant foreign investment throughout the year, with a significant number of businesses setting up in the country through its direct outreach activities………………………………………..Full Article: Source

Let’s take a break from sukuk structuring and stock screening, and talk about the children of parents in Islamic finance. They may well be the industry’s future. I suspect many of us in Islamic finance do not come from Islamic banking parents or banking family dynasties.
We come from parents that were traditional bankers, engineers, physicians, scientists, journalists, merchants, civil servants, politicians, regulators, academics, and so on. And growing up, Islamic finance was probably not on our radar screen as a career………………………………………..Full Article: Source

While the National Treasury is considering issuing Islamic bonds and has asked interested banks to submit bids, some local banks and the JSE already offer Sharia-compliant financial instruments. These include the JSE Sharia All Share index and the JSE Shariah Top 40 (Tradeable).
Other instruments include Mudarabah, a form of investment partnership between banks and businesses that shares the risk and losses. There is also Murabah, a transaction in which the bank buys the asset then immediately sells it to the customer at a pre-agreed higher price, payable by instalments………………………………………..Full Article: Source

The State Bank of Pakistan (SBP) and the Islamic Corporation for Insurance of Investment and Export Credit (ICIEC) – a member of the Islamic Development Bank (IDB) Group – have signed a memorandum of understanding (MoU) to cooperate in promoting trade and investment in Pakistan.
The MoU, which was signed by SBP Governor Yaseen Anwar and ICIEC Chief Executive Officer Dr Abdul Rehman Taha at the SBP here on Monday, is aimed at establishing a basis for the exchange of information between the two entities on banking industry’s condition and operating performance and ICIEC exposure on banks operating in the country………………………………………..Full Article: Source

ING Public Takaful Ehsan Bhd (Takaful Ehsan) is eyeing a 10 per cent market share of the takaful industry by 2015 from the current two per cent.
Its chief executive officer Saiful Yazan Ahmad said today that the company plans to boost its banca takaful segment by tying up with two more banks and increasing the number of agents to 1,500 this year………………………………………..Full Article: Source