A fledgling industry body of Islamic scholars wants to develop a global code of ethics and a professional development programme for scholars, in order to improve standards in the industry, its president told Reuters.
The plan takes aim at a weakness in Islamic finance which is slowing the industry’s growth. Boards of scholars at financial institutions rule on whether instruments and activities obey religious principles, but there is no single, commonly recognised set of qualifications for the scholars………………………………………..Full Article: Source

Axiata Group Bhd said Wednesday its Malaysian unit Celcom Axiata Bhd has raised 5 billion ringgit ($1.60 billion) via an issuance of Islamic bonds, or sukuk, to partly retire existing debt and finance capital expenditure.
The sukuk range in maturity from three to 10 years. It is the second sukuk program set up by Axiata Group this year following an earlier $1.5 billion equivalent multi-currency sukuk issued in July. The latest bond issue is estimated to save more than MYR350 million over the remaining tenure of an existing unrated sukuk, the company said in a statement to the Malaysian stock exchange………………………………………..Full Article: Source

Malaysian Rating Corporation Bhd (MARC) has assigned a preliminary rating of AAA IS with a stable outlook to Celcom Transmission (M) Sdn Bhd’s proposed RM5 billion nominal value sukuk programme. Proceeds from the sukuk offering will be largely used to retire existing debt of RM4.2 billion.
Celcom Transmission is a core subsidiary of the Celcom Axiata Bhd Group, Malaysia’s second largest wireless service provider. “The rating reflects the credit strength of the overall consolidated entity, premised on the significant financial and operational links between Celcom Transmission, parent company Celcom Axiata and fellow subsidiary, Celcom Mobile Sdn Bhd………………………………………..Full Article: Source

Saudi Electricity Co. Sukuk returned 67 per cent more than Gulf Corporate Sukuk, thanks to demand outweighing supply in Saudi Arabia. As Sukuk is on course to surpass the records set in 2011, sales in Saudi Arabia have surged with Sukuk offerings jumping to about $8.3 billion – about 47 per cent of the GCC’s total issuance this year.
According to a report by the Saudi Gazette, the yield on Saudi Electricity’s notes dropped to a record 3.1 per cent on 7 August. The Kingdom’s largest power producer is rated the fourth-best investment grade at Standard & Poor’s………………………………………..Full Article: Source

The Central Bank of Bahrain (CBB) announced that the monthly issue of the short-term Islamic leasing bonds, Sukuk Al-Ijara, has been fully subscribed by 145 per cent.
Subscriptions worth BHD 29 million were received for the BHD 20 million issue, which carries a maturity of 182 days. The expected return on the issue, which begins on 16 August 2012 and matures on 14 February 2013, is 1.36 per cent………………………………………..Full Article: Source

If it can gain approval from the regulators in time, Al Izz Islamic Bank hopes to float its Initial Public Offering (IPO) by next month. Oman’s second Islamic finance institution is waiting for the final approval from the Sultanate’s Capital Market Authority, which it has received only ‘in principle’ as yet.
However, sources told that CMA approval can be obtained in as little as a day, and the issue can be opened after a week. However, the subscription period has to remain for 30 days………………………………………..Full Article: Source

Emirates Islamic Bank (EIB), the Islamic banking arm of Emirates NBD Group, a leading financial services organisation in the region, announced the launch of a banking package for new entrants to the UAE.
The package includes personal and vehicle finance and credit cards with one monthly salary limit, along with various account options and online banking facilities. The special offers have been devised to facilitate new entrants to the UAE or New-to-Job employees to meet their financial commitments and settle into the new environment. (Press Release)

Bank of London and The Middle East , the largest fully Islamic wholesale investment bank in Europe, has announced the completion of six property development deals bringing their UK property portfolio to over £200m.
The largest of the deals, with a financing facility of £16m, was with Audley Ltd, a specialist provider and manager of luxury retirement villages across the UK. The facility will be used to finance the construction of 95 one and two bedroom apartments and redevelopment of three existing properties as part of a new retirement housing development Edgbaston, Birmingham. (Press Release)

Qatar Islamic Bank (QIB) recently organised and executed a workshop for its wholesale banking customers, namely institutional large corporates, corporate clients, small medium size (SME) clients as well as micro finance clients.
The purpose of this workshop was to present QIB trade finance products and focus on the operational guidelines for the same in an effort to enhance awareness levels amongst QIB existing and potential clients………………………………………..Full Article: Source

Saudi banks will cut their bad loan ratio to the lowest since the region’s biggest corporate default three years ago as lending grows on the back of government spending, Moody’s Investors Service said.
The ratio of non-performing loans at Saudi lenders will drop to about 2.5 percent this year, the lowest since at least 2009, Khalid Howladar, a vice-president at Moody’s, said recently. That compares with forecasts of 8.5 percent this year in the United Arab Emirates and 4.2 percent in the US last year, according to Moody’s………………………………………..Full Article: Source

Financial advisors don’t own crystal balls, or rely on gypsies to divine the direction of the financial markets. Instead, they do their homework, kick some tires, and apply the knowledge they’ve learned to make prudent and profitable investment decisions for their clients.
That, obviously, is how it should be. Financial advisors need to apply the same diligence to their practices – specifically, to focus on demographic groups that can help grow their businesses over the long haul. I call this micro-niching………………………………………..Full Article: Source

Emirates Money, the consumer finance arm of the Emirates NBD Group, and Dubai Islamic Insurance and Reinsurance (Aman) have launched a new Takaful product together with FWU Global Takaful Solutions.
Banca Takaful is a Shari’ah-compliant unit savings plan with Takaful benefits, designed to meet the needs of customers looking for Islamic financial planning solutions………………………………………..Full Article: Source

‘Zakat’ could contribute to the country’s annual development programme (ADP) by alleviating poverty and propelling the nation. Dr Kabir Hasan, professor of New Orleans University of USA, made the observation during an interview arranged by the Centre for Zakat Management (CZM) in the city recently.
The CZM, initiated by Rahimafrooz Industrial Group, has been working with an Islamic model characterised by institutional management of Zakat for poverty alleviation since 2008. “If Zakat fund is collected and managed properly, it can be used to create a pull of funds, which can be used in financing development activities and can replace government expenditures,” Dr Kabir Hasan mentioned………………………………………..Full Article: Source