The GCC sukuk markets have made particularly impressive progress as an alternative funding sources at a time when bank financing has been relatively scarce, Dr. Jarmo T. Kotilaine, chief economist, National Commercial Bank, said.
He said a number of factors suggest that the sukuk market is likely to continue to see significant positive momentum in the Gulf. The wave of default-type situations appears to have passed, at least for now, and has left a legacy of a much better understanding of how to deal with them, as well as a pool of qualified professionals needed for such tasks. Consequently, risks are better understood and likely to be dealt with much more quickly………………………………………..Full Article: Source

Dubai’s Jebel Ali Free Zone (JAFZA) has picked seven banks to arrange a new Islamic bond, lead managers said on Friday, with at least $500 million likely to be raised to part-repay the firm’s 2012 sukuk obligation.
Along with a $1.25 billion sukuk issued by another state-owned entity, DIFC Investments, due in June, the JAFZA redemption was considered crucial to assess the ability of Dubai Inc firms to meet their debt maturities………………………………………..Full Article: Source

Dubai’s Jebel Ali Free Zone Authority (Jafza) has picked seven banks to arrange a series of investor meetings, with a possible Islamic bond, or sukuk, transaction to follow, lead managers said.
The firm, fully-owned by the Dubai government, mandated Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Citigroup, Dubai Islamic Bank, Emirates NBD, National Bank of Abu Dhabi and Standard Chartered to arrange the roadshows, a document from the banks said………………………………………..Full Article: Source

The Islamic Development Bank (IDB) will go to the market this month to raise between $500 million and $1 billion to finance its activities during the year. Dr. Ahmad Mohamed Ali, IDB President, who is on a visit to the United Kingdom, confirmed that because of increasing demands from member countries for financing, the multilateral development bank (MDB) of the Muslim World plans to issue regular annual sukuk tranches ranging from $500 million to $1.5 billion under its Medium Term Notes (MTN) program going forward………………………………………..Full Article: Source

Companies in the Gulf region are looking at issuing Islamic bonds that target Malaysian investors as a way to diversify funding sources and tap Asian demand for Middle East debt.
Bahrain-based lender Gulf International Bank, owned by the government of Saudi Arabia, announced this week it had set up a new 3.5 billion Malaysian ringgit Islamic bond, or sukuk, program, and could potentially issue a bond soon………………………………………..Full Article: Source

The long-standing debate on whether India should allow Islamic banking has taken a twist with the National Commission for Minorities, or NCM, stepping into the picture and strongly supporting the model in Asia’s third-largest economy.
Following a proposal from NCM to permit interest-free banking—a variant of Islamic banking—the finance ministry has asked the Reserve Bank of India (RBI) to take a fresh look at the matter………………………………………..Full Article: Source

There is no doubt that Islamic banking and finance must always fulfil the requirements of Islamic jurisprudence. However, it is increasingly being felt that Islamic banking must go beyond the law and imbue the ethical spirit of Islam to remain relevant to the needs of Muslim communities around the world.
While there has been tremendous growth in Islamic banking and finance in the last decade or so, it is also true that it has become increasingly capitalistic in its approach and operations………………………………………..Full Article: Source

The Malaysian government has codified in law the duality of its banking system — an Islamic financial system operating-side-by-side with a conventional banking system — cooperating but not inter-acting.
Malaysia is the first country to go this way although the Dual Banking Model which Kuala Lumpur first introduced unofficially in 1983 has been followed by many countries including Bahrain, Qatar, the UAE, Pakistan, Indonesia, Turkey Brunei and Bangladesh………………………………………..Full Article: Source

The existence of healthy competition in the local Islamic banking sector – not just among Malaysian players but also between international Islamic banks operating here – proves to be the right push for growth for industry peers.
According to Ernst & Young Malaysia’s (E&Y) director of Assurance Services, Syarizal Rahim, competition for market share has indeed provided the incentive for local players to continue developing more innovative products that would appeal to the greater population………………………………………..Full Article: Source

A new type of call money market — Islamic Inter-bank Fund Market (IIFM) — for sharia-based banks started its journey. In such a market, transactions are based on profit instead of interest.
Bangladesh Bank Governor Atiur Rahman inaugurated the IIFM at the central bank. On the first day, Islami Bank Bangladesh Ltd offered funds worth Tk 100 crore, while four banks applied for taking Tk 60 crore from the funds………………………………………..Full Article: Source

Islamic Banks are increasing in developing countries and as well as developed countries all over the world. Recently, more than 1100 institutions provide a service of Islamic banking in the worldwide and In future the number of superior banks such as HSBC, Standard Charted and Deutscheare are also provide a services of Islamic banking.
The globally aim of Islamic Banking is to offer an option of Islamic banking which is according to Shariah………………………………………..Full Article: Source

It has been reported that Noor Islamic Bank is backing what could be Islamic finance’s biggest shake up in years, lending its support to the announcement of seven new standards from the Middle East’s leading Islamic finance regulator, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
The new standards govern key areas of Islamic finance, including financial rights and their management, liquidity management; bankruptcy, capital and investment protection, agency investment, calculation of profits transaction and options of trust………………………………………..Full Article: Source

A symposium has recently explored the future of Islamic banking in light of regional, Arab, Islamic and international experiences. The seminar was organized by the Center of Banking Studies and Islamic Finance (CBSIF), an affiliate of King Fahad University for Petroleum and Minerals (KFUPM).
The symposium was aimed at exploring views on the future of Islamic banking industry in light of the current situation and how to develop the industry, Head of the CBSIF Dr. Salah Al-Shalhoub said……………………………………….Full Article: Source

Dr Jameel al Jaroodi, Executive President of Nizwa Islamic Bank, has said that Islamic banks will play a greater role in economic development in the Sultanate. The main purpose of Islamic banks is financing small and medium enterprises which lack funds and management expertise.
Al Jaroodi said that Nizwa bank, being the first one introducing Islamic monetary services, will, like any other bank, offer standard services such as current accounts and cheques, but it will also proceed with basic Islamic monetary services involving profitability, speculation and asset leasing………………………………………..Full Article: Source

EFG-Hermes Holding, the biggest publicly traded Arab investment bank, rejected a $1.1bn bid from an Egyptian company backed by billionaire Naguib Sawiris in favour of a venture with Qatar’s QInvest.
Planet IB Ltd’s 13.5 Egyptian pounds-a-share offer lacked details on the “financing resources” as well as information about the investors, Cairo-based EFG-Hermes said yesterday. The bid is 23% more than the stock’s May 31 close………………………………………..Full Article: Source

Sharjah Islamic Bank has signed a cooperation agreement with the University Hospital Sharjah to offer financing packages to patients, making it possible to pay treatment fees to the University Hospital in convenient installments.
The signing ceremony was attended by HE Mohammed Abdullah, CEO of Sharjah Islamic Bank and HE Dr Omar Abdul Hamid, Consultant of His Highness Ruler of Sharjah for Higher Education Affairs, who signed the agreement on behalf of their respective organizations in presence of a number of senior officials from both sides. (Press Release)

Ajman Bank, the award-winning Islamic financial services institution committed to transforming the experience of Islamic banking, announced today that it has officially inaugurated its new branch in China Mall, Ajman.
The Branch was inaugurated on 31st May by HE Ali Al Hamrani, Board Member of Ajman Bank, in a special ceremony attended by HE Dr. Ali Al Nuaimi, Board Member and Managing Director of Ajman Bank and other members of the Bank’s top Executive team………………………………………..Full Article: Source

Barwa Bank, Qatar’s growing Shari’ah compliant banking service provider is offering a unique Shari’ah Compliant 3-year Capital Protected Notes linked to the Turkey and Indonesia equity markets.
The Turkey Indonesia Equity Capital Protected Note is an investment opportunity for investors seeking potentially higher returns with 100% capital protection. The growth is based on the performance of a selected basket of stocks in two high growth emerging markets: Indonesia and Turkey. (Press Release)

The Islamic Cooperation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group (IDB), has signed an agreement with the government of Maldives (GOM), to jointly develop and carry out Islamic banking services in the Maldives. The signing ceremony was held during the World Bank Group/International Monetary Fund annual meeting in Istanbul.
Representing the GOM, its Minister of Finance Ali Hashim, emphasized the GOM and the ministry were very pleased with the level of cooperation with the ICD that resulted in signing the agreement………………………………………..Full Article: Source

Al Kifah Holding, a family-owned Saudi firm, raised 600 million riyals ($159.99 million) from a syndicated Islamic loan facility, mandated lead arranger, Gulf International Bank (GIB) said in an e-mailed statement.

GIB, National Commercial Bank, Samba Financial Group and Banque Saudi Fransi acted as lead arrangers while GIB Capital, the investment arm of GIB, was the financial advisor to the building and construction materials producer on the murabaha facility………………………………………..Full Article: Source

International Polymers Company (IPC), a unit of Saudi International Petrochemical Company (Sipchem) won a USD373 million Islamic loan, Arabian Business reported. Sipchem said that IPC signed the financing deal with local lenders, and the loan was repayable over 2.5 years in semi-annual installments.
IPC will use the cash to finance a plant currently being built in Jubail Industrial City, scheduled to start commercial production in the second half of 2013, Sipchem added………………………………………..Full Article: Source

The Islamic investment sector can widen its customer base by adopting a socially responsible model, according to industry experts, but distribution channels, a sophisticated investor base and incentive schemes need to be enhanced first.
The links between Islamic finance and socially responsible investments (SRI) are not new, but the former needs a similar transformation which brought SRI into the mainstream………………………………………..Full Article: Source

Arab states Saturday agreed to set a “financial safety net” for the Palestinian Authority if Israel freezes due monthly revenue estimated at around $100 million, Palestinian chief negotiator Saeb Erakat said.
The Palestinian side had asked for the assistance during a meeting of the special ministerial Arab League’s Peace Initiative Committee, meeting in the Qatari capital Doha………………………………………..Full Article: Source