Such is the quiet of the Middle East sukuk market following the Islamic holiday period that all returning investors can hear beyond the sound of fans whirring is the faint, distant rumble of Malaysian domestic issuance. Yet despite these outward signs of serenity, there is every reason to be excited about the gathering storm of deals.
It’s deathly quiet in the GCC sukuk market. While European markets have been quick to shrug off the summer lull, Middle East issuers and investors are still, seemingly, in holiday mode. Yet there is a clear and rising frustration among those investors at their desks at not having suitable outlets to put their cash holdings to work………………………………………Full Article: Source

Limitless, the indebted property arm of Dubai World, is aiming to conclude its $1.2 billion debt deal with creditors by the end of September, the company said on Tuesday. The state-owned firm, which was hard hit by the global financial crisis, has rolled over the Islamic debt facility, owed to a syndicate of banks, several times. The loan was originally due to mature in March 2010.
“Discussions continue and we aim to conclude the deal by the end of September,” Limitless said in an emailed statement. The company was close to reaching a debt deal with creditors, sources told Reuters in July………………………………………Full Article: Source

The aggregate primary issuance of bonds and sukuk in the GCC totaled $37.6 billion in H1 2012, an 18.7 percent decrease from the total amount raised in during H1 2011, Kuwait Financial Centre (Markaz) said in its recent research report “GCC Bonds & Sukuk Market Survey”.
June dominated the issuance with a frequency of 32; however, May witnessed the highest value as $7.3 billion was issued, representing 19.6 percent of the total amount issued, through 28 issuances. In terms of GCC central banks local issuances, - Central Bank of Kuwait Raised $25.8 Billion - 51 percent of the total CBLI issuance………………………………………Full Article: Source

Hong Leong Investment Bank Bhd (HLIBB), in a research report dated Sept 3, indicated that the government’s takeover of the Eastern Dispersal Link (EDL) project from Malaysian Resources Corp Bhd (MRCB) could spell good news for the company as it had issues in servicing its RM1.2 billion sukuk repayment.
The company had problems commencing toll operations at the EDL, which could potentially disrupt its cashflow to honour its debt obligations………………………………………Full Article: Source

Communications and consultancy firm Sustainable Options Ltd has announced the launch of the Sustainable Resources Fund, an open ended hedge fund that offers appeal to both green and Islamic investors. The fund aims to raise $100m for investment in a mix of agro-forestry, land and sustainable agricultural sectors.
In an e-mailed statement, Sustainable Options’ Founder and Managing Director Stuart Andrews said that the fund has appointed Alpha Wealth Management as investment manager and Apex Fund Services as fund administrator. The combined skills of Alpha Wealth Management and Apex Fund Services are expected to provide prudent diversified investments across geographically diverse regions, different species and plantations to reduce project specific risk. “Utilising tough ethical, environmental and commercial criteria to each investment, their mission statement is to generate wealth through sustainable resources,” Andrews said………………………………………Full Article: Source

Bahrain-based Gulf Finance House (GFH) is looking to acquire stakes in asset management and real estate firms and increase ownership in its portfolio companies, it said in a statement on Tuesday.
The sharia-compliant investment house, heavily impacted by the global debt crisis, is assessing various opportunities to acquire new stakes and is also looking to increase the stake in its group companies subject to regulatory approval, it said in a regulatory filing in Dubai………………………………………Full Article: Source

Islamic lender Tamweel on Tuesday said UAE home finance transactions in 2012 were likely to be 30 percent higher than in 2011, adding that it estimates that the home finance market will surpass AED8bn ($2.17bn) this year.
It also said it has seen a 26 percent increase in home finance applications in the first half of 2012 as compared to the same period last year. Tamweel said in a statement that prices of UAE real estate that it has financed over the past 18 months has increased by between 10-15 percent………………………………………Full Article: Source

Bank Muamalat Malaysia will offer Islamic financing in China through booths as a step toward setting up the first full-fledged syariah-compliant lender in the world’s fastest-growing economy.
Malaysia’s second-oldest syariah bank plans to start offering loans and deposits by December at branches of local partner Bank of Shizuishan in the north-western region of Ningxia once it gets approval from regulators, Kuala Lumpur- based chief executive officer Mohd Redza Shah Abdul Wahid said………………………………………Full Article: Source

Iran and Turkey should start working on establishing new banks to support mutual trade, as some companies from the Islamic republic are heading to Turkey to continue their activities due to restrictions they face in Dubai’s banking system, an Iranian business leader told the Anatolia news agency.
“Iranian companies have begun to head for regions such as Korea, Hong Kong and India, as they have had difficulty in their activities in Dubai. Some of them have come to Turkey. They came to Turkey when their activities were restricted due to the banking system in Dubai,” said Turkish-Iranian Business Association President Hamid Kian………………………………………Full Article: Source

State Bank of Pakistan (SBP) Deputy Governor Kazi Abdul Muktadir has said the central bank is developing a new five-year (2013-17) strategic plan for the Islamic banking industry.
“The new plan will set the strategic direction for the Islamic banking industry. This would define the strategies and action plans to move the industry to the next level of growth and SBP would expect active and meaningful involvement of the industry in development of the plan,” Muktadir said………………………………………Full Article: Source

BankIslami Pakistan Limited announced its half yearly results today by reporting a profit after tax of Rs. 229 million. The Bank continued its upward trajectory by registering a growth of 22.6% in deposits, 21.6% in assets and 80.1% increase in earning per share. The Bank also commenced its network expansion after 3 years of consolidation with a target to take the network to 200 by end of 2013.
The significant feature of this impressive financial performance is BankIslami becoming the first start-up Bank to clear all its accumulated losses. When in beginning 2003, State Bank started issuing new commercial banking licenses and allowing conversion of foreign banking operations into local Banks at least 10 new Banks came to the market with four on the Islamic side………………………………………Full Article: Source

The global takaful industry has seen tremendous growth in the last few years. Recent figures from the Ernst & Young World Takaful Report 2012 confirm that global takaful contributions grew by 19 per cent to $8.3 billion in 2010.
The GCC contributed $5.68bn, but the report notes that maintaining growth momentum while boosting profitability remains a key challenge for takaful players in the Middle East………………………………………Full Article: Source

MARC has affirmed its short-term and long-term Islamic debt ratings of MARC-1ID/AAAID on UMW Holdings Berhad (UMW) with a stable outlook. The rating actions affect MYR 800 million of outstanding notes issued under the investment holding company’s MYR 300 million Islamic Commercial Paper/Islamic Medium Term Notes (ICP/IMTN) Programme and RM500 million IMTN Programme.
The affirmed ratings and outlook reflect the sustained performance of UMW’s automotive business segment supported by leading market shares of 51 per cent-owned UMW Toyota Motor and 38 per cent-owned Perusahaan Otomobil Kedua in the domestic non-national and national passenger car segments……………………………………..Full Article: Source