Converting a conventional business to a Shariah-compliant entity can increase the value of a company by 18-25 per cent due to the scarcity of genuine Islamic investments, but the process involves various risks, said Swiss banking group, Bank Sarasin.
The bank, releasing its Islamic Wealth Management Report, said while the conversion process is arduous, “extending from the design to distribution and beyond, to how the company spends its profits,” the market potential is massive, with the global Muslim population expected to increase by 26 per cent to 2030, to 2.2 billion, rivalling China and India in terms of market size………………………………………..Full Article: Source

The UAE residents are estimated to be third richest in the Muslim world with per capita income of $49,600 (Dh182, 000), according to the latest study on Islamic finance and wealth management.
Qatar leads the Muslims world with per capita income of $79,000 followed by Brunei at $51,600, said Bank Sarasin’s report titled “The path to corporate transformation – converting a company to Islam”………………………………………..Full Article: Source

On the day-to-day level it is much more about finding the best Sharia interpretation for a given product, often comprised of unique features, and offered in markets that have country-specific laws that must be followed.
So in summary, while best practice develops across the globe, the highest international standards must be applied each day within the current frameworks for growth and success to take hold………………………………………..Full Article: Source

Abu Dhabi National Energy Co (TAQA) raised $215 million from the sale of a Malaysian ringgit-denominated Islamic bond, or sukuk, it said on Sunday, as part of plans by the state-run oil and gas utility to diversify its funding sources.
The ten-year sukuk carried a 4.65 percent profit rate with a full swapped rate to U.S. dollars of 5.3 percent, the company, which owns assets in Canada and Europe, said in a statement………………………………………..Full Article: Source

Turkey’s government plans its first-ever issue of Islamic bonds this year, overcoming sensitivities about Islamic finance in the secular republic as it seeks to tap a rich pool of investors flush with oil money.
A sovereign sukuk issue from an economy regarded as one of the most progressive and successful in the Muslim world would signal intent on Turkey’s part to play a bigger role in Islamic finance. The size of the global sukuk market is estimated at more than $100 billion………………………………………..Full Article: Source

Islamic bonds are lagging behind developing-nation debt for a second quarter as investors seek higher yields in non-investment grade securities.
Shariah-compliant notes returned 1.5 per cent this year, according to the HSBC/Nasdaq Dubai US Dollar Sukuk Index, while non-Islamic bonds in emerging-market countries gained 4.1 per cent, JPMorgan Chase’s EMBI Global Composite Index shows………………………………………..Full Article: Source

With the barrage of results coming in, investors chasing for more returns and yields are still on the lookout for that big one, as hints of more bumper dividends allure in the face of a volatile market rocked by external headwinds.
The latest will be the move by Maxis Bhd, which had recently secured approval from the authorities for the proposed 10-year sukuk issuance amounting to RM2.45bil………………………………………..Full Article: Source

Maxis Bhd does not intend to source additional funding from the debt capital market in its financial year ending Dec 31, 2012 (FY12), according to chief financial officer Nasution Mohamed.
The company which had its RM2.45bil worth of sukuk with a maturity of 10 years approved by the Securities Commission last week said it needed the additional funding as a part of its “active capital management,” according to Nasution………………………………………..Full Article: Source

On March 5, Takaful Emarat will unveil the first investment fund conceived and developed in-house, which the company sees as a milestone in its fourth year of operations. All the necessary approvals have been obtained, including the crucial one from the company’s Sharia board.
To be managed by Riyadh Capital, the open-ended fund — with up to 90 per cent of the investor’s funds being guaranteed — has a multi-year tenure. Takaful Emarat currently has more than 70 savings and protection funds on offer, but developed by others………………………………………..Full Article: Source

Small and medium-sized Islamic banks may need to merge if they want to become bigger regional players capable of filling the funding hole left by shrinking Western banks, the head of Islamic finance at Deutsche Bank, told Reuters.
“There are mismatch challenges,” Salah Jaidah said on the sidelines of the Euromoney Islamic finance summit in London. “Their size, their appetite for long term funding, their ability to finance at competitive pricing………………………………………..Full Article: Source

Libya is amending its banking laws to attract foreign investment and stimulate its private sector as it seeks to create an investor-friendly environment following last year’s war that ousted Muammar Qaddafi, the central bank governor said.
In an interview with Reuters, Saddeq Omar Elkaber said the new Libyan leadership was working on creating the legal framework and necessary infrastructure, including updating a 2005 banking law which first allowed foreign banks in the North African country………………………………………..Full Article: Source

StanChart Saadiq Bhd (Saadiq Malaysia) aims to grow its contribution to Standard Chartered Bank Bhd (StanChart Malaysia)’s business from the current 13 per cent to 20 per cent.
StanChart Malaysia managing director and chief executive officer Osman Morad said this is expected to be achieved within two years. He said Islamic banking is the highest growth sector of Malaysia’s financial industry………………………………………..Full Article: Source

It is, of course, to be expected of Standard Chartered to open an Islamic bank in Sabah. It is after all, the first foreign bank to offer Islamic banking services in Malaysia in 1992.
But coming on the heels of Saudi Arabia’s Al Rajhi, the world’s biggest Islamic bank which opened its first branch in Kota Kinabalu last December, Stanchart Saadiq’s first branch at 1Borneo Hypermall in Kota Kinabalu underscores the scope of Islamic finance in the resource-rich Borneo island state………………………………………..Full Article: Source

Ahlibank Qatar plans to raise capital to meet its growing business in view of the strong macroeconomic growth of the country.
“The board of directors has decided to increase the capital of the bank in order to bolster the financial competence and upgrade its competitiveness,” Ahlibank Qatar chairman Sheikh Faisal bin Abdul-Aziz bin Jassem al-Thani told the annual general assembly………………………………………..Full Article: Source

Sharjah Islamic Bank has won recently the ‘Best Structure Award’ under the Islamic banks category and received a Certificate of Excellence by Pan Arab Web Awards 2012.
Pan Arab Web Awards was created to recognize excellence in web design, development and web ownership skills to showcase their creativity in a competition for the best website in the Pan Arab Region. (Press Release)