As shaky prospects for the global economy continue, Malaysia’s bond market stands out by becoming the Islamic finance center for Asia with smart regulation and a growing ecosystem around Islamic finance, said Standard & Poor’s Ratings Services in a report today, titled “Development Of Malaysia’s Bond Market Is Still Assured Despite Global Turmoil.”

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………………………………………Full Article: Source

Dubai’s Jebel Ali Free Zone is in talks with banks about how to repay its 7.5 billion dirhams ($2 billion) Islamic bond due November, with most of the liability set to be rolled over using a syndicated loan and a new sukuk, sources said.

The Dubai government-owned free zone is in talks with Dubai Islamic Bank, National Bank of Abu Dhabi and Standard Chartered about how to meet the obligation, two sources told Reuters on Monday, although the banks have not been formally appointed to any role……………………………………….Full Article: Source

The Development Bank of Kazakhstan, a state-owned lender that promotes industry, is preparing to issue Islamic and Samurai bonds in 2012 to “diversify its loan portfolio and implement new financial instruments.”

The bank expects to offer $862 million in loans to finance Kazakhstan’s industrial projects this year, according to a statement posted on its website on Feb. 3……………………………………….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……………………………………….Full Article: Source

The total amount outstanding of corporate and sovereign bonds issued by GCC entities stood at $181.9 billion (Dh667.93 billion) as of December 31, according to a new report. “Sovereign issuances amount to $61.9 billion or 33.9 per cent of the total amount,” said the report.
The aggregate primary issuance of bonds and sukuk in the GCC jumped 34.1 per cent last year to reach Dh308 billion. This includes both commercial sovereign and corporate bonds and sukuks and Central Bank Local Issuances (CBLI) — debt securities issued by GCC central banks to regulate the levels of domestic liquidity……………………………………….Full Article: Source

Egypt, which plans to offer debt to nationals living abroad, sold 31 percent less of treasury bills and bonds than it sought today as yields rose. Egypt plans to raise at least $2 billion from the sale of Islamic bonds and certificates of deposits to Egyptians living overseas as the government seeks to reduce record borrowing costs, Finance Minister Momtaz El-Saieed said.
The offerings are planned to take place within two weeks, he said. The government had sought to raise 6.5 billion pounds at the auctions today……………………………………….Full Article: Source

Ethica’s entry into India may be a critical turning point for bringing Islamic finance to a growing economic powerhouse with over 150 million Muslims. In the industry, only Ethica’s e-learning platform is 100% online and fully AAOIFI-compliant. That means whether Ethica is training one user, a group of college students, or the entire staff of a bank, training duration remains only 4 months. For a country with limited professionals trained in Islamic finance, the Ethica-Infinity partnership could prove historic.
Saif Ahmed, Managing Partner at Infinity and a former Islamic banker said, “In less than 4 months, Indian residents now get a globally recognized certificate in Islamic finance at a cost that is affordable from the comfort of their own home or office - something which was not possible before. This is a critical step for Shariah-compliant liquidity to find its way into India through infrastructure and private equity investments.” (Press Release)

Pakistan has been acknowledged as a leader of Islamic microfinance with more than 20 institutions providing microfinance services.

In an international summit on Islamic microfinance in Istanbul, AlHuda Centre of Islamic Banking and Economics chief executive officer Muhammad Zubair Mughal said that conventional microfinance has badly failed and its examples can be clearly seen in India and Latin America……………………………………….Full Article: Source

A five-member Sharia board, exclusive branches for window operation, clear cut segregation of conventional and Islamic banking with separate teams of people and accounts and a 12 per cent capital adequacy ratio are the main highlights of the Islamic Banking Draft Framework (IBRF) presented by the Central Bank of Oman before chief executives of banks in Oman.

CBO has organised a consultative meeting for top officials of banks on January 25 for presenting the draft Islamic banking rules, which the apex bank’s consultants Ernst & Young termed as a ‘unique model.’………………………………………Full Article: Source

The draft Central Bank of Oman (CBO) guidelines for the Islamic banking and finance industry in the sultanate have elicited a mixed response from bankers.

Presented by consultants Ernst & Young (E&Y) to banks on behalf of the CBO, banking executives have praised the compliance safeguards, but have concerns with risk management. BankMuscat, the largest financial services provider in the sultanate, commended the draft guidelines in a press release……………………………………….Full Article: Source

The State Bank of Pakistan (SBP) on Monday amended its earlier instructions with regard to obtaining invoices in the name of bank in Murabaha transactions.

IBD Circular No 2 of 2008 (Appendix-A- Essentials of Islamic Modes-Murabaha, Sub Clause VI) requires Islamic Banking Institutions (IBIs) to obtain invoices in the name of bank in Murabaha transactions. However, considering the practical difficulties in obtaining invoices, particularly, in transactions like purchase of phutti, raw hides, milk, sugarcane, etc, the instructions on obtaining invoices have been reviewed and amended:………………………………………Full Article: Source

Qatar’s banking sector has grown a whopping 22.3% to $190.6bn in 2011, said HE the QCB Governor Sheikh Abdulla bin Saud al-Thani as he expressed confidence in the country’s ability to finance more than $100bn worth of projects to be completed in line with the 2030 vision.
Addressing the first session at the Qatar Projects 2012 yesterday Sheikh Abdulla said customer deposits with the country’s commercial banks increased by more than 18.5% to $100bn and credit facilities to customers rose 28.2% to $103.5bn in 2011……………………………………….Full Article: Source

Merrill Lynch Wealth Management said it has further strengthened its business in the Middle East region with the appointment of five financial advisors.

The new hires are Sahba Hadipour, Sandip Aggarwal, Zahoor Hussain, Mustapha Sinno (who will all be based at Dubai office) and Ayad Hachem in the Beirut office……………………………………….Full Article: Source