A year after Qatar ordered conventional banks to stop offering Islamic financial services, an expected windfall for its Islamic banks has yet to materialise. Nor is it clear that banks’ customers are benefitting from the policy.
The episode illustrates the difficulties that countries face as they manage the relationship between conventional and Islamic banking. Trying to adjust that relationship carries risk, for both regulators and the banks themselves………………………………………..Full Article: Source

Banque Saudi Fransi, the kingdom’s fifth biggest bank by market capitalization, plans to issue its first dollar-denominated Islamic bond, or sukuk, depending on market conditions, and has picked banks to arrange investor meetings.
The lender has picked Citi, Deutsche Bank and Credit Agricole to arrange global roadshows starting in the Saudi capital Riyadh on May 7, the banks said………………………………………..Full Article: Source

Banque Saudi Fransi has mandated Citi, Deutsche Bank and Credit Agricole to arrange global fixed income meetings starting May 7, the arranging banks said in an announcement on Wednesday.
A benchmark dollar-denominated Islamic bond, or sukuk, may follow subject to market conditions. Benchmark is usually understood to mean at least $500 million………………………………………..Full Article: Source

Jebel Ali Free Zone FZE, a business park operator in Dubai, will seek approval from holders of its 7.5 billion-dirham ($2 billion) Islamic bonds to redeem the trust certificates ahead of their maturity in November.
Jebel Ali “is in advanced discussions with a group of financial institutions in relation to a financing package,” the company said in a statement to Nasdaq Dubai. “The use of proceeds will be solely for the redemption of the certificates ahead of the scheduled redemption date.”……………………………………….Full Article: Source

DIFC Investments, the investment arm of the company running Dubai’s financial free zone, swung to a full-year profit in 2011, financial statements showed, and is close to a bank deal to refinance an upcoming Islamic bond maturity.
The firm is “committed” to the repayment of its $1.25 billion Islamic bond, or sukuk, Chairman Abdulla Mohammed Saleh said in a statement to Nasdaq Dubai………………………………………..Full Article: Source

Traditionally, Islamic banks have outperformed their conventional peers in most markets. However, a closer look suggests the market dynamics are changing, demonstrating a new trend. Two key indicators are cause for reflection: slowing growth rates and eroding profitability, according to A.T. Kearney, a global management consultancy.
Declining growth rates are occurring in key geographies including KSA, Bahrain and the UAE, where growth rates have dropped to between 3% and 8% from double-digit figures. In parallel cost income ratios are increasing in most markets, putting pressure on profitability………………………………………..Full Article: Source

As the concept of Islamic finance captivates the international market, a paper released by Malawian researchers has supported the idea of introducing such banks in Malawi.
The paper, authored by scholars Abdul Sheriff Kaunde and Abdullah Omar I. Mdala, titled “A Case for Islamic Banking in Malawi” and released in April this year argues that Islamic banking and finance run in accordance with Islamic principles and the law of the land………………………………………..Full Article: Source

The banking system in the Sultanate has witnessed substantial growth last year as assets of banks reached 18.2 billion rials as against 15.4 billion rials in the previous year, said HE Hamoud Bin Sangour Al Zadjali, Executive President of the Central Bank of Oman (CBO).
Total credit of banks stood at 12.2 billion rials at the end of 2011 compared with 10.4 billion rials in 2010 and total deposit stood at 13 billion rials in 2011 compared to 10.6 billion rials in the previous year, he said………………………………………..Full Article: Source

The Sharia board of Meethaq, the Islamic banking division of BankMuscat , has approved the RO150mn capital assigned by BankMuscat for its Islamic banking window.
The board endorsed the authenticity of capital allocation from BankMuscat shareholders’ fund for Meethaq Islamic banking operations………………………………………..Full Article: Source

Maybank Investment raised the target price of Islamic lender BIMB Holdings to RM2.95 per share from RM2.55 on higher valuations and rising profitability.
The investment bank said it expected Bank Islam net profit to rise in 2012-13 due to an upward revision in fee incomes. There was also growth potential from its Indonesian operations, which were still in their infancy, Maybank Investment said………………………………………..Full Article: Source

Emirates Islamic Bank, one of the leading Islamic financial institutions in the region, announced that its operating profits rose to Dhs138m at the close of the first quarter of 2012. This is a 56% and 68% growth over Q1 and Q4 2011, respectively. The results see Emirates Islamic Bank deliver its highest operating profit for the past two years.
Total net income rose to Dhs228m for Q1 2012, a 21% increase from the same period one year ago. Likewise, customer accounts grew by 5% during the first quarter of 2012, while assets grew by 13% from year-end, 2011………………………………………..Full Article: Source

Islamic Bank of Britain plc (IBB) has held an exclusive event, entitled Islamic Finance Question Time – an open, public Q&A session hosted by the Bank’s Shar’ah Scholars. Islamic Finance Question Time is the first event of its kind, and the only time a UK Islamic bank has given public access to the Scholars that form its Shari’ah Supervisory Committee (SSC).
IBB, a wholly-owned subsidiary of Qatar International Islamic Bank, is the UK’s only wholly Shari’ah-compliant retail bank in the UK. It was originally established in 2004 and has attracted over 50, 000 customers………………………………………..Full Article: Source

Sidra Capital (Sidra), a CMA regulated Shariah compliant financial services company based in Saudi Arabia and Gatehouse Bank (Gatehouse), an FSA regulated UK-based Shariah compliant bank specialising in UK real estate, have announced the first closing of The Sterling United Kingdom Real Estate Fund (SURF) and their first property acquisition in Cambridge, UK at GBP23.55m.
SURF aims to complete purchases in the Shariah compliant commercial real estate in the UK. The Fund will acquire a diverse real estate portfolio which covers the office, retail, logistics, student accommodation and light industrial sectors, to reach its target equity size of GBP 100 million. (Press Release)

Khaled Al Fakih, the new secretary-general of the Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions, outlined plans for a sweeping review of its guidelines in an interview with Reuters.
“We would like to see insightful debate … that can help us develop standards that can benefit the industry,” Fakih told Reuters, ahead of AAOIFI’s annual meeting on 7 and 8 May………………………………………..Full Article: Source

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has issued clarification of recent news reports. Referring in particular to news carried by Reuters, AAOIFI said, “In particular, Thomson Reuters had included the following sentences in their reports:
AAOIFI plans to improve the operations of sharia boards by strengthening the certification process for scholars, Fakih said………………………………………..Full Article: Source