Islamic finance may face its biggest shake-up in years as a top standard-setting body seeks to reform the way the industry does business, including the role of highly paid scholars in enforcing religious principles.
Khaled Al Fakih, the new secretary-general of the Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI), outlined plans for a sweeping review of its guidelines in an interview with Reuters………………………………………..Full Article: Source

They have been around for many years, if not decades, and it’s only now they are being noticed because of a variety of factors.
Times recently interviewed several American Muslims, including me, working in the financial arena for an article Muslims on Wall Street, Bridging Two Traditions. It explored two ‘conflicts’: Muslims working in conventional finance may encounter ‘interest’ against their faith, and challenges of abiding by Islamic ‘traditions’ in a secular workplace………………………………………..Full Article: Source

Goldman Sachs Group Inc’s $2 billion (Dh7.34 billion) Islamic debt debut is leading scholars to call for stricter supervision. Goldman said in an Oct-ober 18 prospectus that it would use proceeds for general corporate purposes and financing needs.
Non-Islamic banks need to make investment plans clearer, while approvers need to supervise more rigorously, Rusni Hassan and Mohammad Akram Laldin, who sit on the Malaysian central bank’s Sharia Advisory Council, said in separate interviews………………………………………..Full Article: Source

Proceeds from Dubai’s new $1.25 billion, two-tranche Islamic bond provide enough funds for the emirate to manage its budget deficits and refinancing plans, a senior government official said.
Dubai priced on Wednesday a $600 million 5-year tranche at 4.9 percent and a $650 million 10-year tranche at 6.45 per cent and the department of finance said the issues drew orders of more than $4.5 billion………………………………………..Full Article: Source

The Dubai government’s $1.25 billion (Dh4.59 billion) Islamic bond sale sets the stage for issuers in the emirate to take advantage of near record-low borrowing costs as they complete the refinancing of $15 billion this year.
The emirate which narrowly escaped a default in 2009 priced five-year Islamic bonds at 4.9 per cent and ten-year sukuk at 6.45 per cent. The five-year pricing is Dubai’s lowest on record for a dollar-denominated international sale, data compiled by Bloomberg show………………………………………..Full Article: Source

Fast forward to April 2012, and as chairman Ali Rashid Lootah sits down to announce Nakheel’s latest annual results, it appears things have changed - at least in terms of the developer’s fortunes anyway.
“We achieved profit of AED1.28bn (US$348.5m)… It has been a good year. We have been doing fantastic across the board, across all of our areas… It is a big sign of the recovery of the market,” he says. He also said that a third tranche sukuk is likely to be issued in two months’ time………………………………………..Full Article: Source

Bahrain Islamic Bank reported net profit of BHD 543,000 ($1.4 million) for Q1 2012, compared with BHD 1.5 million a year ago. Operating profit dropped from BHD 2.5 million to BHD 2 million. The bank says it took provisions of BHD 1.5 million as a precaution against any ‘unforeseeable deterioration’ in asset values compared with BHD 1 million last time.
Chairman Khalid Abdulla Al-Bassam noted an increase in customer deposits by BHD 30 million in the first three months, equivalent to five per cent of total deposits. ……………………………………….Full Article: Source

Dubai Islamic Bank, DIB, the oldest Islamic bank in the region, on Sunday reported an 11 per cent surge in net profit to Dh245 million for the first quarter of 2012 from Dh222 million in the same 2011 period.
The bank said the result demonstrated its “sustained growth across core operations.” DIB’s total revenue during the first quarter was Dh1.23 billion compared to Dh1.28 billion in the first quarter of 2011 while the bank’s assets stood at Dh92.5 billion as customer deposits reached Dh68.1 billion, an increase of five per cent compared with Dh 64.7 billion as of December 31, 2011………………………………………..Full Article: Source

Capital Intelligence (CI), the international credit rating agency, announced that it has affirmed Qatar Islamic Bank’s (QIB’s) Financial Strength Rating (FSR) of ‘A’, which reflects the Bank’s overall strong credit metrics, a robust operating environment and QIB’s franchise as the leading Islamic bank in Qatar.
Notwithstanding substantial consolidation of the Bank’s core business activities last year, a ‘Negative’ Outlook is assigned to the FSR, in view of the continued decline in the Bank’s profitability over the past three years………………………………………..Full Article: Source

The buzz of activity at Maybank Islamic Bhd is a sign that’s most welcome to its CEO Muzaffar Hisham. It is the largest Islamic bank in the country which had seen assets grow to US$23bil (RM70.32bil) at the end of last year and the hectic movement within the corridors of the bank is an indication of the momentum it has built.
Having built its position through the Islamic window at parent Malayan Banking Bhd’s branches, Maybank Islamic is now looking to branch out its success formula into the region………………………………………..Full Article: Source

Islamic banking has grown reasonably fast in the last decade in Pakistan. People invest religiously trusting the fatwa of the so-called Sharia boards of these banks.
Are these financial instruments really riba-free (interest-free)? Do these instruments conform to the juristic and ethical frameworks laid down by the Quran, the Holy Prophet (PBUH) and the imams of the leading schools of thought?……………………………………….Full Article: Source

Islamic banking has indeed won market shares in some GCC markets in recent years, according to Reinhold Leichtfuss, senior partner and managing director at Boston Consulting Group’s (BCG’s) Dubai office, and head of BCG’s Financial Institutions Practice in the Middle East.
“We observe, however, that for many customers the product features as well as the overall service quality play a big role in their selection of banks. Thus, Islamic banks also have to make sure that they are providing a better customer experience if they want to outgrow the market,” Reinhold Leichtfuss said……………………………………….Full Article: Source

Professor Ross Haniffa, Director of the Centre for Accounting and Accountability Research, believes Yorkshire should be taking the lead for Islamic finance in the UK.
In a statement posted on Hull University Business School’s website, Haniffa talks about the opportunities for Yorkshire businesses to get involved in Islamic finance. “A significant proportion of the UK Muslim community lives and works in the Yorkshire region. Yet banks offering the Shari’ah-compliant services of Islamic finance are still few and far between,” he said………………………………………..Full Article: Source

The College of Banking and Financial Studies (CBFS) has launched four in-house training offerings in Islamic Finance for the banking and financial sector leading to globally recognised certifications — the Islamic Finance Qualification (IFQ) of the Chartered Institute of Securities and Investment (CISI), the Diploma in Islamic Finance of Certified Institute of Management Accountants (CIMA), UK, Certified Islamic Public Accountant (CIPA) and Chartered Sharia Auditor and Adviser (CSAA) of the Accounting and Audit Organisation of Islamic Financial Institutions (AAOIFI), Bahrain.……………………………………….Full Article: Source

Contributions by an Islamic insurance firm has enabled students of some schools in Sabah to improve their grasp of the English language.
Ever since he started reading The Star, Form Three student Richie Ronaldo Jibon has found it easier to understand the news. The SMK Bandaraya, Kota Kinabalu, Sabah, student said that the paper is interesting with its stories and pictures………………………………………..Full Article: Source

The Bahrain Financial Exchange (BFX), the first multi-asset exchange in the Middle East and North Africa (MENA) region, has announced achieving a key milestone with the cumulative (single-side) trading turnover value crossing the $1 billion mark on April 24, with the total trading volume increasing to 24,046 contracts.
The highest (single-side) daily trading turnover was $58.27 million, with a trading volume of 1,189 contracts achieved on April 23………………………………………..Full Article: Source