Islamic capital-protected products are starting to gain ground among retail investors in the Gulf, because of volatility in the equity markets and growing acceptance within the industry of how the products are created.
Traditionally, capital-protected products have been somewhat controversial among Islamic investors; although offering a defined return is acceptable in Islamic finance, investors must take some risk, so that they are not getting money for nothing. In capital-protected products, it can be argued that investors are avoiding downside risk………………………………………..Full Article: Source

Islamic banks dreamed big in early 2009 as they emerged from the global crisis. Shari’ah-compliant institutions in the Gulf were mostly insulated from global conventional banks’ toxic debt.
It followed that Islamic finance was thrust forward as a viable alternative model. Some even suggested that under Islamic principles the disaster would never have happened in the first place………………………………………..Full Article: Source

The world needs 50,000 Islamic finance experts right away to promote Islamic banking and finance. Some 38 universities around the world are producing approximately 5000 graduates in Islamic banking and finance a year but estimated that demand is potentially 10 times that number.
According to Muhammad Zubair Mughal, Chief Executive Officer of Lahore-based Al-Huda Centre of Islamic Banking and Finance, warned that If this demand / supply imbalance was not addressed in the short term it would leave Islamic banking and finance facing many obstacles in its growth and promotion. (Press Release)

The Islamic finance industry is estimated to be worth over $1 trillion (£646 billion) globally – a figure only expected to grow as the financial markets develop and expand and a rising number of stocks become Shariah-compliant.
Broadly speaking, Shariah-compliant investing can be categorised by three over-riding principles – procedural, substantive and charitable principles………………………………………..Full Article: Source

An oversubscribed sukuk from state-owned Jebel Ali Free Zone (JAFZA), sold on Tuesday, looks set to continue attracting demand in the secondary market, where it has already been bid higher post-issue.
JAFZA, an industrial park on the outskirts of Dubai and part of state-owned conglomerate Dubai World, priced its $650 million, seven-year sukuk at 7.00 percent, at the tighter end of guidance, with an order book that was more than three times oversubscribed………………………………………..Full Article: Source

AmInvestment Bank Bhd has been appointed as the sole lead manager for Kuwait-based Gulf Investment Corp GSC’s (GIC) issuance of sukuk totalling RM325 million under its existing 20-year RM3.5 billion Sukuk Wakalah bi Istithmar Medium Term Notes Programme.
The sukuk will be issued on June 18. AmIslamic Bank Bhd is appointed the transaction agent to facilitate the commodity trading via Bursa Suq Al-Sila………………………………………..Full Article: Source

Johor Corp (JCorp) has issued an Islamic medium term notes programme (IMTN) under the syariah principle of Wakalah Bil Istitmar.
The Sukuk Wakalah is irrevocably and unconditionally guaranteed by the Government for the entire nominal amount of RM3bil and any accrued profit distributions thereon………………………………………..Full Article: Source

DIFC Investments (DIFCI), the investment arm of the Dubai International Financial Centre, confirmed that it had repaid its $1.25 billion Sukuk. The Sukuk obligation was viewed by analysts as one of the most challenging repayment tests in Dubai this year.
Abdullah Mohammed Saleh, governor of DIFC and chairman of DIFC Investments said: “We are pleased to announce the successful repayment of DIFC Investments’ Sukuk. This transaction reaffirms our commitment to meeting our obligations.”……………………………………….Full Article: Source

Three-year old debt clouds hanging over Dubai dispersed this week as two of the most challenging bond maturities at its government-related entities were tackled, increasing confidence in the market and sparking renewed buying in the emirate’s secondary credit.
DIFC Investments, the company that runs Dubai’s iconic international financial centre, repaid in full a USD1.25bn sukuk which matured on June 13, using funds raised through a partially government-guaranteed Islamic loan and a programme of asset sales………………………………………..Full Article: Source

Standard Chartered Private Bank yesterday announced its forthcoming launch of a comprehensive suite of Islamic financial solutions for its clients. The solutions range from fiduciary deposits, property financing, equities and discretionary services, mutual funds (including Exchange-Traded Funds) and Islamic bonds to third-party structured products.
These solutions will become available to clients by mid-June this year across the Private Bank’s booking centres in London, Geneva, Jersey and Dubai………………………………………..Full Article: Source

National Bank of Kuwait (NBK) is offering 581 million dinars ($2.07 billion) for the remaining stake in Boubyan Bank that it does not already own, the country’s largest lender said on Thursday.
NBK, which currently owns 47.29 percent stake in the Islamic lender, will offer 630 fils per share for the stake, said in a bourse statement. Boubyan shares closed at 600 fils on the Kuwait stock exchange on Wednesday………………………………………..Full Article: Source

More than 100000 South Africans make use of the shariah-compliant banking products of local banks. Eric Enslin, head of client engagement at FNB Wealth, said the shariah customer base is not exclusively Muslim.
Enslin said shariah banking is consistent with the principles of Islamic rulings and their practical application through the development of Islamic economics………………………………………..Full Article: Source

Bank of Khartoum, Sudan’s biggest privately owned bank, is opening 15 more branches this year to expand its retail business to offset the scaling down of risky corporate activities such as Islamic bond sales, its general manager said on Thursday.
The more cautious approach of the lender, owned by Dubai Islamic Bank, is in response to severe economic crisis in Sudan, general manager Fadi Salim Faqih said………………………………………..Full Article: Source

Masraf Al Rayan’s plan to take over a loss-making bank in the UK will provide Qatar’s biggest publicly traded Islamic lender a foothold in Europe’s largest market for Sharia-compliant financial products and services.
Masraf, which also offers Islamic banking in Oman and Saudi Arabia through affiliates, plans to acquire 70 per cent of Birmingham-based Islamic Bank of Britain, while the Qatari government will buy the remaining 30 per cent, the bank said……………………………………….Full Article: Source

Syarikat Takaful Malaysia Bhd has joined the bandwagon of Malaysian entities snapping up UK properties to take advantage of the weaker pound.
“The company is now close to concluding an overseas investment deal specifically in the UK property market,” it said in a statement. When it materialises, it will be the company’s first overseas property deal………………………………………..Full Article: Source

Shariah practitioners must fully familiarise themselves with the methodologies used by Muslim jurists in deducting Islamic law in order to create more confidence in the market, said an Islamic finance expert.
Sheikh Faizal Manjoo, the director of Minarah MultiConsulting Ltd, said there is a need to train practitioners to grasp the Islamic legal ethos relating to Fiqh Al-Mu’amalat (Islamic rules on transactions) as an emerging discipline………………………………………..Full Article: Source

The Bombay high court on Wednesday admitted a petition that has challenged an order of the Reserve Bank of India cancelling the Non Banking Financial Company (NBFC) licence of Alternative Investment and Credits Limited.
The company is a ten year old NBFC operating on “Islamic Finance principles.” However, the HC bench headed by Justice D D Sinha has left the issue of maintainability on its jurisdiction open………………………………………..Full Article: Source