Afghanistan plans to sell Islamic bills for the first time early next year, as it prepares for a reduction in international aid after the withdrawal of foreign troops in 2014.
Draft laws will be submitted to the government “soon” and an offering of longer-maturity sukuk will take place at the end of 2013, Noorullah Delawari, the head of Da Afghanistan Bank, said……………………………………….Full Article: Source

Kazakhstan is finalizing its debut sukuk which will be issued by the Development Bank of Kazakhstan (DBK) in the Malaysian market. The DBK, which is 100 percent owned by the government of Kazakhstan, is working with HSBC and Royal Bank of Scotland (RBS) to manage the ringgit-denominated issuance which is effectively a quasi-sovereign offering.
According to Timur Omarov, Head of Financial Education at the National Bank of Kazakhstan, the central bank, the decision for DBK to raise funds from the Malaysian market was finalized during the visit of President Nursultan Nazarbayev of Kazakhstan to Malaysia in April 2012 where he had discussions with Malaysian Prime Minister Mohd Najib Abdul Razak………………………………………..Full Article: Source

Dubai’s Jebel Ali Free Zone has released initial price thoughts in the low 7% area for its forthcoming Reg S sukuk, according to two sources.
The deal is being arranged by Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Citigroup, Dubai Islamic Bank, Emirates NBD, National Bank of Abu Dhabi and Standard Chartered………………………………………..Full Article: Source

Loss-making Malaysia Airlines (MAS) will be the first company in Malaysia to establish an Islamic perpetual bond totalling RM2.5 billion for its operations even as concern rises in the region over the growing demand of the higher risk bonds.
This comes after reports that the Monetary Authority of Singapore is increasingly concerned over the unprecedented demand for perpetual bonds, also known as perps, which typically entice investors with higher coupon rates in exchange for accepting a higher level of risk as there is a possibility their capital may not be repaid, hence the term perpetual………………………………………..Full Article: Source

Saudi’s Dar Al Arkan (4300.SA), the kingdom’s second-biggest property company, now has sufficient liquidity to repay a 3.75 billion Saudi riyal ($1 billion) Islamic bond, or sukuk, due in July, ratings agency Standard & Poor’s said on Monday.
S&P, in a statement, affirmed Dar Al Arkan’s ‘B+’ long-term corporate credit rating and removed it from CreditWatch after downgrading the developer in February, arguing at the time that its high level of debt left it exposed to swings in property demand………………………………………..Full Article: Source

Kingdom Holding, the investment vehicle of Saudi billionaire Prince Alwaleed bin Talal, has picked two banks to manage its maiden debt issue, a local currency bond, two sources said on Monday.
No date has been set for the issue, which is not seen as imminent. The firm, which is 95-percent owned by Prince Alwaleed, a nephew of Saudi Arabia’s king and a shareholder in Citigroup Inc., has mandated Banque Saudi Fransi and Deutsche Bank to arrange the riyal-denominated transaction, the sources said………………………………………..Full Article: Source

Islamic private-equity investments are poised to quadruple in Malaysia to US$3.1 billion (RM9.8 billion) in five years on government incentives, according to the industry’s biggest fund manager.
CIMB Islamic Bank Bhd, which oversees RM1.7 billion of funds that invest in unlisted companies, is handling more cash for state institutions and benefiting from tax exemptions on fees until 2016, chief executive officer Badlisyah Abdul Ghani said. Syariah-compliant regulations and fund-raising options are developed enough to support growth in the market, which has about RM2.5 billion in assets, he said………………………………………..Full Article: Source

As the global economy struggles with slow growth and high debt, Islamic finance looks to the CIS for opportunities. Amanie Advisors recently registered its new subsidiary – Amanie Advisors CIS in Astana, Kazakhstan.
The CIS presents a huge potential market for Islamic Finance with a population of nearly 100 million Muslims, accounting for roughly 30 per cent of the total population. Recently Kazakhstan adopted a special law on Islamic banking and finance and is vying for the regional leadership role in the development of Islamic financial instruments………………………………………..Full Article: Source

Malaysia is the best Islamic finance hub as it offers all the required facilities such as research, training as well as the laws that are in place, said Tan Sri Azman Hashim.
Azman, who is a member of the International Centre for Education in Islamic Finance (INCEIF), said as far as the advancement of Islamic finance is concerned, the more hubs there are in the world, the better………………………………………..Full Article: Source

Islamic institutions around the world should move past sukuk and build a unified platform that promotes the essence of Islamic finance – trading, said the head of Kuwait Finance House (KFH) in Malaysia.
CEO of KFH Malaysia Jamelah Jamaluddin said trading was the purest form of any business transaction and was what traditional syariah-compliant financial regulations were built upon………………………………………..Full Article: Source

Ethica Institute of Islamic Finance, the most heavily-enrolled Islamic finance program in the world, will be the first globally recognized institute to bring fully AAOIFI-compliant certification to Australia, Malaysia, Singapore, and New Zealand. AAOIFI is the Accounting and Auditing Organization for Islamic Financial Institutions, the de facto standard for over 90% of the world’s jurisdictions.
“Because of the vast distance between the Gulf and South East Asia, the two regions historically developed their industries quite separately from each other. With Ethica’s 100% online platform, we finally bridge the distance with globally recognized certification that harmonizes standards across regions,” said Ethica’s spokesperson. The institute leads the Islamic finance certification industry with over 20,000 paying users in 44 countries and a network of resellers in 10 countries. (Press Release)

The political party of Egypt’s Muslim Brotherhood, which has the biggest bloc in parliament, is proposing changes to the banking law with the goal of boosting the market share of Islamic banks to 35 percent in five years from 5 percent now, a party member said.
Ahmed al-Najjar, a member of the Freedom and Justice Party’s economic committee, told Reuters that the proposals envisaged a new Islamic banking section being added to the law, which now has no specific regulations covering Islamic banks………………………………………..Full Article: Source

Egyptian Parliament is drafting amendments to the Central Bank of Egypt (CBE) law, including the creation of an interbank market for Islamic banks, Al Mal reported, citing Mohamed Gouda, a member of the Freedom and Justice Party’s economic committee, according to Bloomberg.
The regulations will aim at increasing the market share of Islamic banks to 35 per cent in five years, compared with 4 per cent now, the Cairo-based newspaper cited Gouda as saying………………………………………..Full Article: Source

Bahraini islamic banks Capivest, Elaf Bank and Capital Management House are set to vote on a potential three-way merger later this month. Kuwait Finance House-Bahrain, acting as transaction advisor, said the vote would take place at shareholder meetings to be held by the end of June.
If approved, the newly created entity will have a shareholders’ equity of almost $350m and assets in excess of $400m, a statement said………………………………………..Full Article: Source

Kuwait Finance House - Bahrain (KFH-Bahrain), the Transaction Advisor to Capivest, Elaf Bank and Capital Management House on a potential merger, said that the three Bahrain-based Islamic banks will be voting on the merger in shareholder meetings to be held by the end of the month.
If approved, the newly created entity will have a shareholders’ equity of almost $350 million and assets in excess of $400 million, which would give them a scale that would make them more competitive in the market. The transaction is the first three way merger to take place in the Kingdom of Bahrain………………………………………..Full Article: Source

UAE’s top-tier Islamic bank has opened its first branch in London to largely cater to its Emirati clientele who operate in the British capital.
The Abu Dhabi Islamic Bank (ADIB), UAE’s second largest lender, is the first financial institution from the country to receive a banking operations license from the UK Financial Services Authority (UKFSA)………………………………………..Full Article: Source

Fitch Ratings has affirmed Banque Saudi Fransi’s (BSF) Long-term Issuer Default Rating (IDR) at ‘A’ with a Stable Outlook and Short-term IDR at ‘F1′. The agency has also affirmed BSF’s Viability Rating (VR) at ‘a’. A full list of rating actions is at the end of this release.
The affirmation of BSF’s ratings reflects the bank’s strong corporate franchise, sound financials and risk profile………………………………………..Full Article: Source

Fitch Ratings has affirmed Bank Aljazira’s (BAJ) Long-term Issuer Default Rating (IDR) at ‘A-’ with a Stable Outlook and its Viability Rating (VR) at ‘bb+’. The agency has also affirmed Aljazira Capital’s (AJC) Long-term Issuer Default Rating (IDR) at ‘A-’ with a Stable Outlook. A full list of ratings is at the end of this comment.
BAJ’s IDRs, Support Rating and Support Rating Floor reflect Fitch’s view that there would be an extremely high probability of support from the Saudi authorities, if needed………………………………………..Full Article: Source

Malaysia’s family takaful market is poised to grow to some RM7.2bil in two to three years from RM4.2bil currently, given the low insurance penetration rates among the general populace, including the Muslim community, according to Etiqa Insurance & Takaful.
Chief commercial officer Shahril Azuar Jimin said only 54% of the population had life insurance or family takaful policy, with takaful having a penetration rate of about 11%………………………………………..Full Article: Source