Gulf investment funds dedicated to sukuk are increasing in size and number, but the growth spurt may not be enough to solve the concentration and liquidity issues facing the Islamic bonds market.
Assets of sukuk funds based in the Gulf now exceed $500 million, a 31 percent increase since last year, according to Reuters calculations based on data from fund companies. This remains small compared to the total Islamic bonds market; global sukuk issuance was $86 billion in 2011, and $43 billion in the first quarter of this year, according to Thomson Reuters data………………………………………..Full Article: Source

Saudi Arabia is one of the main contributors to the Islamic finance industry, with an estimated $94 billion in Islamic finance assets representing 26 per cent of the GCC total, a report said.
Saudi Arabia’s contribution is also valued at 8.2 percent out of total global Islamic finance assets, added the Deloitte Middle East Islamic Finance Knowledge Center (IFKC) report entitled ‘Empowering Risk Intelligence in Islamic Finance’………………………………………..Full Article: Source

A recent study conducted by Deloitte Middle East Islamic Finance Knowledge Center (IFKC) put Saudi Arabia as a major contributor to the global Islamic finance, representing 8.2 percent of the total Islamic finance assets, Trade Arabia reported.
The study, entitled “Empowering Risk Intelligence in Islamic Finance”, also placed the oil-rich Kingdom on top of GCC contributors to the Islamic finance industry, with an estimated USD94 billion in Islamic finance assets, representing 26 percent of GCC’s total contribution………………………………………..Full Article: Source

The Development Bank of Kazakhstan is in the final stages of preparing to issue the country’s first sukuk, or Islamic bond. The quasi-sovereign issue by the state development bank is expected to set a benchmark for Kazakh sukuk, opening the way for corporate Islamic bonds to be placed in future.
The DBK, which is 100% state owned, is planning a Malaysian ringgit-denominated Islamic Medium Term Note Programme with a limit of MYR1.5bn ($500m)………………………………………..Full Article: Source

Dubai’s sovereign bonds have rallied this week, benefitting from good liquidity in the market as well as a rise of investor confidence in the high-flying emirate’s ability to repay debts and sustain growth.
Traders cited a general improvement in investor sentiment towards Dubai over the last several months, thanks to its progress in restructuring corporate debt and its image as a safe haven amid regional instability………………………………………..Full Article: Source

Dubai-based Islamic mortgage lender Tamweel has picked three banks to arrange investor meetings ahead of a possible asset-backed dollar Islamic bond, or sukuk, arrangers said. A potential issue would be the second for Tamweel this year.
The lender, a unit of Dubai Islamic Bank, last tapped global debt markets with a $300 million 5-year sukuk in January, fully-guaranteed by its parent………………………………………..Full Article: Source

Indonesia is scheduled to sell sovereign Islamic bond on 26 June at indicative value of 1-T Rupiah (about US$106.4-M), aiming at financing the state budget this year, a statement released by the financial ministry said.
The sale of the Islamic bond would be conducted through auction basis, to sell 4 series of the bond, maturing from Y’s 2018 to 2037 and providing rate of returns between 4.45 to 6.10%………………………………………..Full Article: Source

Barwa Bank, one of Qatar’s fastest growing Shari’ah compliant banks, acted as joint lead manager on the recent $800m five-year Sukuk for Saudi-based Islamic Development Bank (IsDB).
Steve Troop, CEO, Barwa Bank, commented on the deal which marks the bank’s first Sukuk involvement as joint lead manager and its increasing presence in the Debt Capital Markets , “We are extremely proud to be lead arrangers for this transaction which is IsDB’s first public debt issuance in over a year. Our aim is to associate Barwa Bank with the leading institutions and IsDB, the highest rated institution in the Middle East (AAA), represents one of the most prestigious names in Islamic Finance. (Press Release)

Al Rajhi Bank Malaysia on Monday introduced Collateralised Commodity Murabahah-i (CCM-i) as a new instrument for its Treasury use and is pleased to be the first Islamic financial institution to adopt such instrument in managing its daily money market transactions.
The announcement was made at their Kuantan Branch launching ceremony which was graced by YAB Dato’ Seri DiRaja Adnan Yaakob, Menteri Besar Pahang………………………………………..Full Article: Source

In yet another case of musical chairs, Absa has confirmed the resignation of its head of Islamic banking, who has left the group to pursue other interests.
The resignation of Amman Muhammad as MD of Absa Islamic Banking, is the latest high-profile departure of a senior executive from the Barclays-owned group, which has already confirmed its group deputy CEO Louis von Zeuner is stepping down at the end of the year………………………………………..Full Article: Source

Capital Intelligence (CI), the international credit rating agency, announced that it has affirmed Bahrain-based AlBaraka Islamic Bank (AIB)’s Financial Strength Rating (FSR) at ‘BB’ on the basis of its comfortable liquidity and increased capital adequacy ratio at end Q1 2012.
The FSR remains constrained by a high ratio of impaired financings, concentration risks, very weak profitability and increased risk exposure to Pakistan. In view of the Bank’s strong ownership through AlBaraka Banking Group (ABG), the Bank’s Long and Short-Term Foreign Currency ratings are maintained at ‘BB+’ and ‘A3′ respectively. (Press Release)

Fitch Ratings has affirmed the Islamic Development Bank’s (IsDB) Long-term Issuer Default Rating (IDR) at ‘AAA’ with a Stable Outlook and Short-term IDR at ‘F1+’.
IsDB’s ratings are underpinned by strong intrinsic features, primarily by excellent capitalisation. IsDB is one of the most highly capitalised multilateral development banks (MDBs) covered by Fitch………………………………………..Full Article: Source

Libya’s Islamic cleric Sheikh Al-Sadok Ghariani has called on Libyan citizens to embrace banking and use cheques for transactions, amid reports that a huge chunk of the money in circulation in the country are outside the banking system.
Sheikh Ghariani’s call, in a statement issued here, came against the background of a disclosure by officials of the Central Bank of Libya (BCL) that more than 14 billion dinars (about US$10 billion) are in circulation outside the banking system………………………………………..Full Article: Source

The Islamic Development Bank (IDB) has signed a financing agreement with the Republic of Mali to provide an amount of US$ 12.4 Million to fund a social housing project in Bamako, Mali.
The IDB’s total amount of funding to Mali amounts to US$756 M, inclusive of 90 financing operations to developmental projects, trade, and private sector. The agreement was signed by each of Mali’s Minister of Finance and economy Tiena Coulibaly and the IDB head Ahmad Muhammad Ali, according to a statement disclosed by the IDB………………………………………..Full Article: Source

Bank Negara will host the third Global Islamic Finance Forum (GIFF), beginning Sept 18, to discuss and exchange views on the growth and opportunities in the internationalisation of Islamic finance and strengthening cross-border economic interlinkages.
The GIFF 2012 is a high-level multi-track event that brings together regulators, scholars and financial industry players who are key drivers in the global development of Islamic finance………………………………………..Full Article: Source