A combination of developments in the world of Islamic finance and banking suggest that integration, consolidation, rational pricing and innovative products, led by a demanding consumer are likely trends that will shape things to come.
Globally, Islamic banking assets are said to be growing twice as fast as conventional banking assets and expected to reach $1.1 trillion (Dh4.04 trillion) in 2012, up 33 per cent from 2010, according to a Ernst & Young study………………………………………..Full Article: Source

Japan’s Sumitomo Mitsui Banking Corp. has arranged a syndicated loan of USD 750 million for an airport project in Saudi Arabia that meets Islamic financing principles, a top-selling business daily here reported Monday.
The deal is believed to be the largest-ever Islamic financing facility arranged by a Japanese bank, the Nikkei Shimbun said.With European banks having become cautious about lending, Japan’s second-biggest banking group hopes to enhance its presence in the Middle East through Islamic financing, which prohibits interest, the report said………………………………………..Full Article: Source

Analysts have mixed views on Affin Holdings Bhd’s surprise plan to buy a stake in Bank Muamalat Malaysia Bhd, one of the country’s two stand- alone Islamic banks. While they note that the move could strengthen Affin’s foothold in the Islamic banking sector, they don’t see much synergies being derived.
Details remain scant as negotiations with Bank Muamalat’s two shareholders - DRB-Hicom Bhd and Khazanah Nasional Bhd - are at an early stage………………………………………..Full Article: Source

Fitch Ratings has affirmed Qatar Islamic Bank’s (QIB) Long-termIssuer Default Rating (IDR) at ‘A’ with a Stable Outlook and Viability Rating (VR) at ‘bbb’. A full list of rating actions is at the end of this release.
QIB’s IDRs, Support Rating and Support Rating Floor reflect Fitch’s view that there would be an extremely high probability of support from the Qatari Authorities, if needed. The ratings consider the authorities’ strong history of support for the Qatari banking system as well as the strong ability and willingness to support Qatari banks………………………………………..Full Article: Source

Singapore is struggling to make inroads into Islamic finance even as neighbouring Malaysia is on the cusp of another record-busting year. Bankers say Singapore is hobbled by a lack of a domestic market for Islamic finance products, while Middle East investors are still US dollar-based and conservative.
The situation appeared to be improving when Malaysian sovereign wealth fund Khazanah in 2010 sold S$1.5 billion sukuks or Islamic bonds here, and Sabana, the world’s largest Syariah-compliant real estate investment trust (Reit), raised S$664 million through its initial public offer………………………………………..Full Article: Source

Southeast Asian universities are adding Islamic finance courses as Bank Negara Malaysia’s Shariah Advisory Council warns a skill shortage in the industry is hampering growth.
Universitas Muhammadiyah in Malang, Indonesia and Kuala Lumpur-based International Centre for Education in Islamic Finance (INCEIF) said this month they plan to start new programs. Malaysia needs 40,000 more qualified people in the industry by 2020, Dzuljastri Abdul Razzaq, head of the International Islamic University Malaysia’s finance department, said. Indonesia will require 17,000 more over three to five years, according to a central bank survey………………………………………..Full Article: Source

A fledgling industry body of Islamic scholars wants to develop a global code of ethics and a professional development program for scholars, in order to improve standards in the industry, its president said.
The Malaysian-based Association of Shariah Advisers in Islamic Finance (Asas), set up in April last year, plans this year to launch a test for the financial literacy of scholars, and ask its members to sign up to a code of ethics; if they break the code, they may be reprimanded by Asas………………………………………..Full Article: Source

RAM Ratings has assigned final long-term rating of AA1 to Kuala Lumpur Kepong Berhad’s (KLK) proposed 10-year Multi-Currency Islamic Medium-Term Notes Programme of up to MYR 1 billion (or its equivalent in foreign currencies), with a stable outlook.
At the same time, the ratings of the Group’s existing MYR 300 million Sukuk Ijarah Commercial Paper/Medium-Term Notes Programme (2011/2016) have been reaffirmed at AA1/Stable/P1………………………………………..Full Article: Source

Global takaful contributions are forecast to reach $12 billion by the end of 2012, after expanding by an annual average growth rate of 19 percent in the past two years.
Takaful is an Islamic insurance concept, which is grounded in Islamic muamalat (Islamic banking), observing the rules and regulations of Islamic law, otherwise known as Shari’ah. There are an estimated 230 takaful companies and another takaful re-insurer with an estimated $11 billion in volume………………………………………..Full Article: Source

Since Egypt’s January 2011 uprising, the country has suffered from heavy falls in foreign direct investment (FDI), international foreign reserves (IFR) and tourism revenues.
FDI fell 124 per cent in the first quarter of 2011 against the final quarter of 2010, representing $1.9 billion. IFR, which was almost $36 billion in early 2011, fell to $14.4 billion (including $4 billion in gold bullion) in July 2012………………………………………..Full Article: Source