In the countries swept by the Arab Spring, recent elections were dominated by Islamist parties. This will further encourage the development of the Islamic finance market, experts believe.
“The recent free elections in a number of the affected countries have shown a desire by the people to organise their financial affairs in a manner that reflects their religious beliefs,” notes Tariq Hameed, managing associate at Simmons & Simmons in Dubai. Hameed notes that the parties winning the most seats in the recent elections in Tunisia, Morocco, Egypt and Libya have all stated their support for Islamic finance………………………………………..Full Article: Source

In over 70 countries, from financial centers in Malaysia to the Middle East, Islamic finance has been growing rapidly around the world. In fact, Shariah-compliant financial assets have increased from about US$5 billion in the late 1980s to about US$1 trillion in 2010.
Even more impressive is that this class of financial instruments appears to have avoided many of the worst effects of the recent crisis, making it an increasingly attractive investment vehicle………………………………………..Full Article: Source

Muslims have been implored to pool their resources and know-how to establish interest-free investment schemes and co-operatives in order to improve their financial situation and fulfil the will of Allah.
The state Missioner of MUTAN, Alhaji Tajudeen Oladoyin, charged Muslims who have been engaging in interest-bearing investments to desist in order to avert the wrath of Allah. He enjoined well-to-do Muslims to take advantage of economy of number to cooperate with others in establishing interest-free cooperative and business ventures………………………………………..Full Article: Source

Growing trade in Islamic bonds or sukuk in the Gulf region this year could be driven further by increased private sector interest in sukuk on the back of strong activity by banks.
More than $6 billion of sukuk have been sold in the GCC so far in 2012, compared to issuance of $7.3 billion for all in 2011, with the UAE’s Majid Al Futtaim Group paving the way for more private sector involvement in Islamic finance through a recent sukuk sale, according to Emirates NBD head of fixed income research Nick Stadtmiller………………………………………..Full Article: Source

Allen & Overy has advised HSBC Saudi Arabia as arranger and dealer on the establishment of Saudi Arabia’s first domestic Sukuk programme. The SAR 2.3 billion programme was established by Almarai Company, one of the largest integrated consumer food producers in the Middle East. Allen & Overy also advised HSBC on the first offering under the programme, a seven-year SAR 1 billion Sukuk.
The Allen & Overy team in Riyadh was led by Riyadh-based managing partner Julian Johansen and senior associate Jonathan Ibraaheem Marshall………………………………………..Full Article: Source

Dubai government-owned Jebel Ali Free Zone (Jafza) has submitted a three-part refinancing plan to creditors as it looks for a way to repay a Dh7.5bn ($2.04bn) sukuk.
This follows the company in late February asking Citi on how best to meet the looming November maturity………………………………………..Full Article: Source

Malaysia could see up to RM80 billion worth of corporate bonds issued this year, driven by key pump-priming projects like the MY Rapid Transit, says AmInvestment Group Bhd.
“We expect issuance to be on the high side, in the region of RM60 billion to RM80 billion. The bulk of it has already been issued with the PLUS (Project Lebuhraya Utara-Selatan) issue. Islamic bonds, or sukuk, could form a large part of the . PLUS issued a RM23.35 billion sukuk in January………………………………………..Full Article: Source

Emirates NBD’s new $1 billion dollar bond sale reportedly received $3 billion in bids from investors on Thursday. Two weeks ago, the bank, the UAE biggest by assets, received overwhelming response to its yuan bond sale, the first by a Middle East bank.
In January this year, Emirates NBD’s Islamic subsidiary EIB sold a $500 million sukuk. The sukuks were priced to yield 350 basis points over the mid-swap rate………………………………………..Full Article: Source

Yields on Dubai government’s dollar-denominated bonds dropped to record lows amid speculation state-owned companies will repay obligations this year.
Business park operator Jebel Ali Free Zone put forward a fundraising plan to help repay a Dh7.5 billion sukuk maturing in November, MEED reported on March 20. “News reports about DIFC and JAFZ working toward refinancing their maturing sukuk this year have improved sentiment for Dubai’s credit,” said Nick Stadtmiller, head of fixed-income research at Emirates NBD………………………………………..Full Article: Source

Indonesian finance ministry plans to raise 1 trillion rupiah (some 109.9 million U.S.dollars) in Islamic bond auction on March 27, in an effort to develop market for the Islamic instrument, the ministry said. The proceeds would be used to help plug the country’s budget deficit this year.
Sales of Indonesia’s Islamic bond on March 14 was oversubscribed with the amount of funds raised exceeding target with the number of bid received reaching 5.284 trillion rupiah ( some 576.54 million dollars) and the number of approval at 1.66 trillion rupiah (about 181.11 million dollars), higher than the initial target of 1 trillion rupiah (equal with 109.10 million dollars)………………………………………..Full Article: Source

Al Baraka Banking Group was the latest Bahrain-based financial institution to forecast an upturn in the economic climate. Speaking after the bank’s annual meeting at the Diplomat Radisson Blu Hotel, Residence and Spa, bank president and chief executive Adnan Ahmed Yousif said 2012 had started well.
“We have had a good first two months and it looks like 2012 will be a good year for the bank,” he said………………………………………..Full Article: Source

Abu Dhabi-listed Finance House is to buy privately-owned investment bank CAPM Investment to expand into investment banking and asset management, three sources familiar with the matter said on Thursday.
Under an agreement between the two parties, Finance House will acquire CAPM’s investment banking and asset management licence, offering a premium of between 5 to 10 percent to the value of those businesses, one of the sources said speaking on condition of anonymity………………………………………..Full Article: Source

Malaysian banks, including Islamic banks, continued to show improvement in profitability last year, Bank Negara Malaysia’s (BNM) latest annual report shows. Pre-tax profits increased by 14.2 per cent to RM26.2 billion. The growth rate was, however, slower than the previous year’s 35.1 per cent.
Return on equity - a measure of how well banks use shareholders’ money to generate more money - rose by 17.4 per cent compared with 16.6 per cent in the previous year………………………………………..Full Article: Source

Malaysia’s Islamic banking and takaful is close to gaining a 20 per cent share in the total banking and insurance market in near future. Malaysia Takaful Association (MTA) said the takaful industry has been steadily closing ground over its conventional peers with strong growth from both the family and general segments.
Under the Financial Sector Masterplan (FSMP) for 2000- 2010, Bank Negara Malaysia had targeted the Islamic banking and takaful to reach a fifth of the total banking and insurance market in 2010. ……………………………………….Full Article: Source

The country’s Takaful industry must energize and solidify itself to be competitive, dynamic and resilient to withstand the challenges faced by globalization and liberalization of the financial market.
Takaful Malaysia Association (MTA) President Datuk Syed Moheeb Syed Kamarulzaman said Malaysia can become a hub for the banking industry and Global Islamic Finance by stimulating the Takaful industry to be strong, sustainable and counter productive to withstand any financial crisis………………………………………..Full Article: Source

Germany’s Gothaer Insurance Group is in talks to buy a majority stake in Turkish insurer Isik Sigorta from Bank Asya, four sources close to the process told Reuters, as it seeks to tap a potential growth market.
Turkey’s Bank Asya, which offers banking services that comply with Islamic law, holds a 65.42 percent stake in Isik Sigorta, according to the insurer’s website. Other shareholders may also sell their stakes, the sources said………………………………………..Full Article: Source