The essence of Islamic finance is about “risk sharing over risk transfer”, as it implies a financial and economic system of checks and balances. It implies an “ethical” financial intermediation linked to the real economy for “moral” value-added output. It implies modalities of contracts whose foundations are based on transparency, where asymmetric information is minimised to prevent abuses against the weaker counter-party.
Furthermore, Islamic finance is about financial inclusion paving the path for distributive wealth and income, and ensuing economic opportunities. Finally, it’s all about business and not religion, and it about profits but against profiteering………………………………………Full Article: Source

“I think it will be good if we push the boundaries further,” says Mohd Izani Ghani, chief financial officer of Malaysia’s investment holding arm Khazanah Nasional. Perhaps it was time for the CNH (offshore renminbi) market – something that would be in line with Khazanah’s goals to expand Islamic finance. Ghani picks up the phone to speak to their investment team in Beijing to see if it was possible.
Possible, indeed. A few months later, in October, Khazanah broke new ground by successfully issuing a 500 million renminbi (US$79 million) sukuk – the first ever global offshore renminbi-denominated sukuk………………………………………Full Article: Source

The Islamic finance industry is expected to continue to enlarge and deepen its footprint in the next 11 months, an economist said. RAM Rating Services Bhd Islamic ratings head Zakariya Othman said core markets like Malaysia and Gulf Cooperation Countries (GCC) would further build on their strong performances.

He added that while Malaysia and GCC would continue to dominate, organic growth was also expected to come from markets in Indonesia, Central Asia and Africa. Zakariya said as traditional sources of funding started to dry up, diversification of financing sources was becoming vital………………………………………Full Article: Source

Malaysia has rapidly become the Islamic finance centre for Asia with smart regulation and a growing ecosystem around Islamic finance. Approximately 70% of Malaysia’s domestic debt issuance is in the form of sukuks (financial certificates, similar to bonds, that are compliant with Islamic law), making it the world’s largest Islamic bond market with over 60% of global sukuk issuance originating from Malaysia.
The recent RM30bil sukuk by Projek Lebuhraya Usahasama Bhd is the largest sukuk issue globally and has set the market abuzz………………………………………Full Article: Source

MARC has affirmed its rating of AAA-IS on special purpose vehicle Aman Sukuk Berhad’s (Aman) Islamic Medium Term Notes (IMTN) programme of up to RM10.0 billion with a stable outlook. The rating affirmation reflects the credit of the Government of Malaysia (GoM) as the single obligor and sublessee which will make contractual sublease rental payments under irrevocable sublease agreements between the GoM and Pembinaan BLT Sdn Bhd (PBLT) in respect of projects for the Royal Malaysia Police or Polis DiRaja Malaysia (PDRM).
The repayment profile of each series of IMTN issued is structured to match defined sublease rental payments from the GoM to ensure full and timely servicing and repayment of the notes. (Press Release)

BankMuscat, the flagship financial institution in the Sultanate, has commended the draft Central Bank of Oman (CBO) model of Islamic banking and finance to be adopted by Islamic banks and Islamic windows associated with conventional banks in Oman.
Sulaiman al Harthy, Group GM — Islamic Banking, expressed deep appreciation of the draft model at the fourth seminar on Islamic banking hosted by the Bank at the Ministry of Education. The BankMuscat Sharia board members — Shaikh Dr Ali Qaradaghi, Chairman, Shaikh Essam Muhammad Ishaq and Shaikh Majid al Kindi — addressed the seminar aimed at raising awareness and familiarising people with the main characteristics of Islamic finance………………………………………Full Article: Source

Qatar Islamic Bank (QIB) has opened a new branch at City Center Doha to provide a complete range of Shariah-compliant banking services for individuals and corporate customers. The opening event was attended by QIB’s acting chief executive officer Ahmad Meshri, QIB Group’s managers, executives from various departments, and a number of customers.
Hassan Sultan al-Jafali, acting assistant general manager, personal banking, said that the bank is implementing an expansion strategy in order to reach its clients in pivotal areas in Qatar, and to provide excellent banking and financing services that are Shariah-compliant………………………………………Full Article: Source

Ajman Bank reported a positive net profit of AED7mn for 2011, a year-on-year increase of 75 per cent compared to the AED4mn profit reported in 2010.
The growth in total income was fuelled by an increase of approximately 73 per cent in income from Islamic financing and a doubling of income from investment securities. The bank’s net income for 2011 was AED179.9mn compared with AED157mn in 2010, an increase of 14.5 per cent………………………………………Full Article: Source

IBQ reported a 25% rise in net profits to QAR 573 million for the year ending 31 December 2011. The figure compares with profits of QAR 458 million recorded in the previous year. The 25% increase means that IBQ achieved the 2nd highest year on year growth in profits among all banks operating in Qatar.
Growth was witnessed across all IBQ business lines as total customer deposits enjoyed a considerable rise of 22% on the previous year, finishing at QAR 19.4 Billion while the Bank’s customer loan portfolio reached QAR 16.7 Billion, a 9% increase over 2010. Non-interest income was equally strong compared with the same period in the previous year growing to QAR 233 million, a 32% increase………………………………………Full Article: Source

Her Royal Highness Princess Hajah Hafizah Sururul Bolkiah attended the official launching of the Centre for Islamic Banking, Finance and Management (CIBFM) and its first flagship, the Fiqh Mu’amalat Professional programme.

Held at the Indera Kayangan Ballroom of The Empire Hotel and Country Club, the launch opened with recitations of surah al-Fatihah and doa led by Pehin Orang Kaya Paduka Seri Raja Dato Paduka Seri Setia Ustaz Hj Awg Suhaili Hj Mohiddin………………………………………Full Article: Source

For the second time in a month, Noor Takaful, the Islamic insurance arm of Noor Investment Group, has been named the leading Takaful operator in the region, picking up the Takaful Insurer of the Year award at the 2012 MENA Insurance Awards.

The prestigious award was presented to Noor Takaful’s Chief Operating Officer Andrew Greenwood at a VIP lunch, held at The Address, in Dubai. At the end of 2011, Noor Takaful, which celebrated the third anniversary of its launch in January, was named Best Takaful Operator in the GCC region, at the CPI Islamic Business and Finance Awards………………………………………Full Article: Source

Time is not standing still at Oman Insurance Company these days and Patrick Choffel has a lot to do with that. Since he took over as CEO in the fourth quarter of last year, he has presided over an overhaul of the management structure and now is focusing on widening the company’s products and services.
All options are on the table for the country’s largest insurance services provider, and some of these could well be taken up this year. A key factor behind these coordinated moves is to lessen dependence on its core insurance lines and markets………………………………………Full Article: Source

The Secretary-General of the Islamic Financial Services Board (IFSB), Jaseem Ahmed noted that progressive transformations in theIslamic financial services industry over the last few decades have led to theindustry’s greater integration into the global financial system. “Islamicfinance shares with Europe a collectiveinterest in cross-border cooperation, in regional cooperation, and in greaterintegration with the global economy.”
Against the backdrop of the global crisishe further noted that “The expansion in Islamicfinance and the changes in the global regulatory environment in recent yearsunderscore the need for strengthened risk management within institutionsoffering Islamic financial services. These institutions face a unique set ofrisks. In addition, they frequently operate in environments in which marketsand the wider infrastructure of liquidity and risk management are still undergoingdevelopment. Risk management and monetary control are critical issues inIslamic finance and there can be no complacency in this regard. While much hasbeen achieved, much more needs to be done.” (Press Release)