The Islamic finance industry has great potential for global expansion after achieving the most rapid growth among global financial services sectors. “The total value of Islamic financial assets is expected to reach USD 1.6 trillion this year, and the financial sector is expected to continue its robust growth in 2013,” reads a report released by Kuwait Finance House Research (KFHR).
“(This expansion) is underpinned by: an increase in the demand for Shariah-compliant assets and an active role played by some jurisdictions around the world to promote the development of Islamic financial markets in their respective countries.”……………………………………….Full Article: Source

Qatar Islamic Bank (QIB), the country’s largest Sharia-compliant lender by market value, could sell $750 million of Islamic bonds as early as next month, part of its $1.5 billion sukuk program that its board approved Sunday, a company executive said.
The executive, who didn’t wish to be named, said the issue could come in two tranches of $750 million and that HSBC Holdings PLC, Standard Chartered PLC, QInvest LLC and Deutsche Bank AG were advising on the deal………………………………………..Full Article: Source

Qatar Islamic Bank (QIBK), the country’s biggest Shariah-compliant lender by assets, plans to raise as much as $750 million by issuing Islamic bonds, its first sale since 2010. The Shariah-compliant bank hired HSBC Holdings Plc (HSBA), Standard Chartered Plc, QInvest LLC and Deutsche Bank AG to manage the issuance of at least $500 million of debt, the lender said.
The securities, which are known as sukuk and comply with Islam’s ban on interest, may have maturities of as much as seven years, Ahmad Meshari, the bank’s acting chief executive officer said………………………………………..Full Article: Source

A long-awaited law allowing Jordan to issue sukuk has been cleared by both houses of its parliament, paving the way for the government to tap strong global appetite for Islamic bonds as it tries to repair public finances.
The law, which had been in development since 2010, was passed by the lower house of parliament earlier this month and approved by the upper house at the end of last week. It may take effect in about 30 days, after the government promulgates it, Sufian Elhassan, director of the research and information department of the house of representatives, said by telephone………………………………………..Full Article: Source

The upcoming launch of sharia-compliant financial products and services in the Sultanate augurs well for the growth of sukuk – the Islamic equivalent of bonds, says a leading expert on Islamic Banking.
Khalid Yousaf, Director — Islamic Finance Advisory Services, KPMG Oman, envisions significant demand for sukuk in the financing of, among other things, infrastructure projects, housing schemes, real estate ventures, tourism resorts, and other development projects. Additionally, sukuk will open the way for new fund-raising opportunities via the Capital Market and provide a new investment vehicle for investors in the Sultanate………………………………………..Full Article: Source

Several recent landmark corporate and infrastructure sukuk by companies in the GCC issuing in Malaysian ringgit may signal the start of a trend that could help develop and globalise the market, according a new report from Standard & Poor’s, or S&P.
In an era when the world’s conventional banks are producing fewer and shorter loans and companies are considering other options for finance, S&P believes that Islamic financial instruments could become a key funding source, especially in GCC and Asian countries, S&P said in a report entitled, “Beyond Borders: The GCC And Asia Could Rev Up Their Economies - And The Islamic Finance Market”………………………………………..Full Article: Source

MARC has affirmed its rating on ANIH Berhad’s (ANIH) MYR 2.5 billion Senior Sukuk Musharakah Programme at AAIS with a stable outlook. The affirmed rating reflects consistent traffic growth for ANIH’s portfolio of mostly matured toll concessions, namely the Kuala Lumpur-Karak Highway (KL-Karak), Phase 1 of the East Coast Expressway (ECE1) and the Kuala Lumpur-Seremban Expressway (KL-Seremban), the adequacy of its cash flow generation for the financial year ended March 31, 2012 (FY2012) and projections of future cash flow.
The rating is also supported by the subordination of the RM620.0 million unrated Junior Bonds which buffers Sukuk holders against adverse scenarios. Meanwhile, the rating is moderated by the company’s high gearing level and susceptibility to delays in toll hikes………………………………………..Full Article: Source

Al Baraka Turk Participation Bank, the Turkish subsidiary of Bahrain-based Al Baraka Banking Group, has concluded a record Islamic finance deal in Turkey worth $450 million with the participation of a group of major international banks.
Thirty-two banks from 16 countries covering the main financial centres in the world took part in the facility, including Standard Chartered Bank, Noor Islamic Bank, ABC Islamic Bank and Emirates NBD. Bank Islam Brunei Berhad Darussalam and Al Hilal Bank were nominated as mandated lead arrangers………………………………………..Full Article: Source

Al Baraka Turk Participation Bank, which is a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), announced its success in concluding the largest Islamic finance deal in history of Islamic banking in Turkey worth $450m with the participation of a group of major international banks.
After the two successful deals for $240m in 2010 and $350m in 2011, Albaraka Turk has successfully concluded the year 2012 Murabaha Syndication Facility in dual currencies with a breakdown of $293.2$ and EUR124.5m for a total USD equivalent of $450m with the participation of 32 banks from 16 countries. (Press Release)

A recent Islamic Finance Industry Leaders Round Table Discussion has pointed out that as Islamic banks are generally more liquid than their conventional counterparts, Islamic banks end up earning lower returns on short-term investments.
The forum, hosted by KPMG Sri Lanka and addressed by Neil Miller, KPMG’s Global Head of Islamic Financial Services who is an International expert in the field of Islamic Finance however highlighted that this is because there are fewer short term liquidity management options available to them to manage their surplus liquidity………………………………………..Full Article: Source

Alizz islamic bank will launch its initial public offering (IPO) of 400,000,000 shares on Saturday 22 September 2012. alizz islamic bank is promoted by Huriah Company owned by HH Sayyid As’ad bin Tarik Al Said, aabar Investments which is 95 per cent owned by the International Petroleum Investment Company of Abu Dhabi, First Energy Oman, wholly owned subsidiary of First Energy Bank.
Bahrain and Tasameem Real Estate Company, an investment company headquartered in the UAE. The Promoters have a strong track record of global financial services investment including Islamic banking………………………………………..Full Article: Source

If the latest developments around BIMB Holdings Bhd are anything to go by, the Islamic financial services group may be shaping up to be one to watch.
Just last week, after it came to light that legal proceedings have been lobbed at Dubai Group over its US$10bil debt, tongues got wagging about what would become of the 30.5% interest it held in Bank Islam, of which 51% belongs to BIMB………………………………………..Full Article: Source

Salman Raza, General Manager Branch Banking of KASB Bank, which is one of the leading banks of the country, has said KASB Bank has evolved an aggressive marketing strategy for the year 2013 under which we have planned to further expand our branch network apart from expanding KASB products.
Salman Raza, who is one of the country’s leading bankers and among those few executives in KASB Bank who has taken the bank to new height through his devotion, hard work and commitment said, “KASB Bank is now serving clients through 104 branches in 43 cities of Pakistan, offering unique and innovative financial solutions to large portfolio of investment, corporate and consumer banking customers………………………………………..Full Article: Source

Warba Bank, the most recently opened Islamic bank in Kuwait, announced the launch of ‘Murabaha’ service to finance customers’ needs with entire flexibility via basic monthly installments.
The new service, which is compliant with the Islamic Shari’ah principles, allows customers to enjoy purchasing their goods and pay their easy installments within a period that starts from six months up to 15 years………………………………………..Full Article: Source

Kuwait International Bank (KIB) has recently hosted Doctorates Student and Researcher at Durham University - England, Daniel Suleiman, who is currently conducting a comparison study about the level of customers’ satisfaction with services provided in Islamic and non-Islamic banks in both Qatar and Kuwait.
Suleiman’s visit to KIB was considered a major step towards building his research study as well as completing the requirements of his Doctorates degree………………………………………..Full Article: Source

There should be a balanced regulation for Islamic finance, one that does not impede its growth or allow for abuse, according to leading industry players. CIMB Islamic Bank Bhd CEO Badlisyah Abdul Ghani says the Islamic finance industry needs a balanced regulation, adding that there is always fear for any industry to be over regulated.
“We need regulation and the financial regulator must always strive for a balanced regulation so that it is not too rigid as to choke the industry or too slack, thus allowing for abuse,” he said……………………………………….Full Article: Source

Tokio Marine Middle East Ltd, the Dubai-based regional hub of Japanese insurance giant Tokio Marine, plans to launch its new Saudi joint venture which will spearhead its activities in the Kingdom and beyond.
Ajmal Bhatty, President and CEO, Tokio Marine Middle East Limited, confirmed to Saudi Gazette that the Alinma Tokio Marine KSA, the joint venture between Tokio Marine Middle East; Saudi Basic Industries Corporation (SABIC), the world’s largest petrochemicals exporter; Saudi Arabia’s Alinma Bank; and some local smaller investors, will start operations very soon. The new company is capitalized at SR100 million………………………………………..Full Article: Source

The Capital Market Authority surveyed the opinions of the insurance companies, the auditing firms and legal consultancy offices on the contents of the primary draft of the Takaful Insurance Law. The Takaful Insurance Law was drafted following the Royal directives of His Majesty Sultan Qaboos to start Islamic banking in the Omani banking sector, which requires long term Islamic funding tools and Takaful insurance.
The CMA researched and studied the legislative, audit and procedural tools related to the finance tools that are compatible with the tenets of the Sharia and prepared the initial draft for the regulations that regularise the tools of the capital market and insurance………………………………………..Full Article: Source

Dar Al Takaful , formerly known as Takaful House , is confident to achieve premium targets set for 2012 as it plans to introduce various products to target small and medium enterprises, travel, medical and institutional business to bring profitable volumes.
The Islamic insurance firm intends to grow by at least 40 per cent each year for the next two years. It has achieved an 85 per cent year-on-year growth in its premium business during the first seven months of this year………………………………………..Full Article: Source