The growth of Bahrain’s takaful (Islamic insurance) sector dipped to single digits in 2011 for the first time in a decade, while still outpacing growth in conventional insurance, according to data released on Sunday by the country’s central bank.
Takaful gross contributions grew by 4.25 percent to 40.2 million dinars ($107 million) in 2011, the central bank said in a statement. This compares to 18 percent growth in 2010, with double-digit growth registered in all of the previous 10 years, central bank data shows………………………………………..Full Article: Source

After a decade of growth that transformed Islamic finance from an obscure niche into a mainstream alternative, the industry has suffered its first major setback. The market for sukuk, or Islamic bonds, tanked last year, as the global economic slowdown hit the Gulf region hard and forced governments to bail out many lenders, including Islamic financial institutions.
These problems, although very real, haven’t diminished bankers’ enthusiasm about the sector’s long-term prospects. Indonesia and Bahrain have issued major new sukuk in recent weeks, raising hopes for an imminent rebound in issuance………………………………………..Full Article: Source

Malaysia is closer to achieving its goal to be the preferred destination for arbitration as it introduces Islamic Arbitration Rules and Fast Track Arbitration Rules. This was revealed by Datuk Sundra Rajoo, the director of the Kuala Lumpur Regional Centre for Arbitration (KLRCA).
Currently, Hong Kong and Singapore are the sought-after locations in the region for arbitration settlement. Arbitration is where parties in a dispute decide to settle their differences with an impartial person (the arbitrator) sitting in to listen and award. This method of not going to the court to settle usually saves time and money but the decision by the arbitrator is final………………………………………..Full Article: Source

Sharia compliance is the key factor driving savings decisions by United Arab Emirates nationals, where an ageing population is expected to boost demand for Islamic savings products, the chief executive of Dubai-based National Bonds Corp said.
“Sharia compliance has been the number one driver of choice of savings instruments among Emiratis and Arab expats,” Mohammed Qasim al-Ali said in an interview late last week. “We are seeing a definite increase in product demand.”……………………………………….Full Article: Source

National Bonds Corporation PJSC has called on the UAE’s public and private sectors to join hands in the efforts to develop a savings culture in the UAE, following the announcement of the results of the 2012 National Bonds UAE Savings Index.
The country’s leading Shariah-compliant savings scheme urged companies and authorities across the country to play a bigger part in increasing the financial awareness of the UAE population after research revealed that 87% of UAE residents do not believe that their current savings are adequate for the future. (Press Release)

Tamkeen and Bahraini retail and commercial banking institution, BMI Bank announced an extension to their alliance providing Shari’ah-compliant financing for enterprises within the local private sector to fulfill their financial needs at a competitive cost.
Initially launched in November 2010, the joint scheme offers a suite of Shari’ah-compliant financial products under the umbrella of the Islamic banking division within the bank. The new agreement marks the third contribution of BHD 10 million made by the bank expanding the total portfolio to a total of BHD 30 million………………………………………..Full Article: Source

KPMG Oman has said conventional banks in Oman that fail to offer Islamic banking services risk an exodus of customers in favour of market rivals offering Shari’ah-compliant financial services in the Sultanate.
“Conventional banks are likely to lose some customers, if they do not offer Islamic banking services through window operations,” said Khalid Yousaf, Director of Islamic Finance Advisory Services, KPMG Oman………………………………………..Full Article: Source

A Turkish financial institute wants to open an Islam-compliant bank in Germany. Experts say it’s a conventional model of banking that could appeal to Muslims and non-Muslims alike.
With the effects of the ongoing euro crisis impossible to discern, many people in Europe would probably be willing to sign on to a banking institute that offers only transactions backed by tangible assets rather than highly speculative financial management………………………………………..Full Article: Source

The Bank of Khyber (BoK) opened Raast Islamic Banking Branch at the Bank Square here on Friday after Islamic banking showed considerable growth in profit.Minister for Finance Muhammad Humayun Khan inaugurated the branch.
Bilal Mustafa, Managing Director BoK, Mir Javed Hashmat, Executive Director BoK, government officials and group and divisional heads of the bank and members of local business community were present on the occasion………………………………………..Full Article: Source

Capital Standards Rating Co (CSR) has upgraded the Insurer’s Financial Strength Rating (IFSR) to ‘ BB ‘ and the national rating to ‘B BB ‘ of Boubyan Takaful Insurance Company KSC (closed). The outlook for the rating remains Stable.
Boubyan Takaful Insurance Company ( BTIC ) has shown remarkable improvements in the Financial Year 2011, reflecting the company’s growing market position in the midst of the intense competition. BTIC has implemented a new strategy that may effectively turnaround the business in current year 2012………………………………………..Full Article: Source