Although the size of Islamic financial assets are roughly US$1.2 trillion (RM3.72 trillion) to US$1.3 trillion (RM4.03 trillion) globally, it is only about 1% of the entire global financial system and hence, there are huge opportunities for growth.
Over the last five years, it has been growing at a rate of 10% to 15% per annum, said World Bank managing director Dr Mahmoud Mohieldin. He added that for now, Islamic finance was being driven by supply side factors. However, opportunities to grow were emerging especially with the commodity boom, quality inprovements in the Islamic products, more Islamic finance windows and the availability of syariah compliant indices………………………………………..Full Article: Source

Global Islamic Finance is set to double in size between 2011 and 2015 with the sector increasingly viewed as a real alternative to conventional finance, according to Standard & Poor’s (S&P). The global prospects for the Islamic Finance industry will be the subject of a conference to be hosted by S&P in Dubai on 25 September, 2012.
Stuart Anderson, Managing Director & Regional Head, Middle East at Standard & Poor’s said: “The global crisis faced by conventional finance has led to Islamic Finance increasingly being viewed as a credible alternative. Issuers and investors have realised that the risk-reward balance in both conventional and Islamic Finance are not fundamentally different.” S&P expects the $1 trillion global Islamic Finance industry to grow 20% over 2011-2015, doubling in size over the period. (Press Release)

The Islamic finance market is poised to expand despite the lingering global economic uncertainty as companies, banks and even countries tap a pool of Muslim investors who are flush with cash to secure long-term funding, policy makers said.
Islamic financing differs from conventional financing in its adherence to Shariah, or Islamic law, which among other things bans the charging of interest. Speculation or benefiting to the detriment of the public good is also taboo………………………………………..Full Article: Source

Islamic finance does not need any rebranding with its rapid recognition across the world, says Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz. Zeti said she had been asked at several global forums on separate occasions in the past that Islamic finance be rebranded to rid it of an image of a conduit for terrorism.
“Islamic finance is based on profit sha-ring which involves risk sharing and requires high level of disclosure of information in financial transactions, hence the transparency is greater. Because of its very nature and principles, it is less vulnerable to terrorist financing than conventional banking.”……………………………………….Full Article: Source

Ireland’s Electricity Supply Board (ESB) is considering whether to become the first large non-financial company from Europe to sell Islamic bonds by issuing a sukuk in Malaysia.
The issue could help to develop a new source of funding for European firms as the euro zone debt crisis constrains sources of finance at home. Sukuk are bought by cash-rich Islamic funds in the Gulf and southeast Asia……………………………………….Full Article: Source

London-based QIB UK, a subsidiary of Qatar Islamic Bank, plans to launch two structured products this month including a note linked to a sukuk, its head of asset management told Reuters.
It will be the first time in the industry that a structured note uses a sukuk as an underlying asset, Anouar Adham, head of asset management at QIB UK, told Reuters late on Wednesday. The capital-protected note will be based on a five-year sukuk which Qatar Islamic Bank is expected to issue soon, he said………………………………………..Full Article: Source

The Islamic religion forbids lending money at interest, a practice traditionally also frowned on by many Christian sects. Islamic — or Sharia — law does not prohibit investments as such and many Islamic investors have been keen in recent years to shift money out of oil and other local markets.
Western companies, meanwhile, have been keen to tap into the vast wealth of not only oil-rich Arabian states but emerging economies in Indonesia and Malaysia………………………………………..Full Article: Source

Abu Dhabi Islamic Bank seeks shareholder ok to renew sukuk programme * ADIB bank says any total bond issue will not exceed $5 billion.……………………………………….Full Article: Source

Middle Eastern investors snapped up most of Turkey’s $1.5 billion debut sukuk, the Treasury said, while Deputy Prime Minister Ali Babacan said the government hopes the deal will encourage other Turkish borrowers to sell Islamic bonds.
The 5-1/2 year bond attracted an order book of nearly five times the issue size, the Treasury said late on Tuesday, with Middle Eastern accounts taking 58 percent of the issue. European investors bought 13 percent and Asian accounts 12 per cent, while 9 percent was sold in Turkey and 8 percent to USinvestors………………………………………..Full Article: Source

Malaysia’s corporate Islamic bonds are returning twice as much as government sukuk this quarter as economic stimulus spending boosts investors’ risk appetite.
The Bloomberg-AIBIM Bursa Malaysia Corporate Index, a benchmark started this week that tracks 57 local-currency issues, gained 1.6% since June 30 to 101.062, while a similar gauge for sovereign notes rose 0.7% to 109.165. Global dollar-denominated syariah-compliant debt advanced 2.3%………………………………………..Full Article: Source

CIMB Group Holdings Bhd said that its wholly-owned unit CIMB Islamic Bank Bhd successfully completed its issuance of RM300 million tier-2 junior sukuk under its RM2 billion tier-2 junior sukuk programme last Tuesday.
The proceeds from the issue will be made available for the Islamic banking operations of CIMB Islamic or any other syariah-compliant use as approved by the syariah adviser. The tier-2 junior sukuk, which is rated “AA+” by Malaysian Rating Corp Bhd, has a maturity of 10 years and is callable on any periodic payment date falling on or after the 5th anniversary of the issue date………………………………………..Full Article: Source

Malaysia’s Islamic banks need to expand further into Southeast Asia to play a greater role in the management of international Islamic bonds, or sukuk, Malaysia’s Central Bank Governor Zeti Akhtar Aziz said on Thursday.
“We encourage Islamic banks to venture out and participate, they need to enter into strategic partnerships with other (regional banks),” Zeti told a media roundtable at the Global Islamic Finance Forum (GIFF) in Kuala Lumpur………………………………………..Full Article: Source

The Islamic Banking and Finance Institute Malaysia (IBFIM) aims to strengthen its presence in China and Hong Kong with the establishment of a strategic partnership with NOVA Training and Education Institue (NOVA).
NOVA is a finance training agency based in Hong Kong. IBFIM Chief Executive Officer Datuk Dr Adnan Alias said the collaboration with NOVA will provide a springboard for IBFIM to export its expertise and provide training courses on Islamic finance overseas, mainly in China………………………………………..Full Article: Source

The Minister of state for Finance, Dr Yerima Ngama, is asking for increased awareness on Islamic banking to prevent economic crisis and boost the nation’s economic development.
Dr Ngama listed various challenges obstructing the growth of Islamic banking in Nigeria, noting that the banking system will help position Nigeria as the financial hub of Africa………………………………………..Full Article: Source

Ridge Islamic Capital, the first company in Egypt specialized in offering full-fledged modern Sharia-compliant investment banking; asset management; and wealth management services announced at a press conference its official inauguration and launch of its activities in the Egyptian market.
Ridge Islamic Capital is the Islamic financial arm of the Dubai-based regional investment company Ridge Solutions International Holdings, which is part of Angola-based Ridge Solutions Group. The company was established following the successful acquisition of the Egyptian investment banking and asset management firm El Rashad by Ridge Solutions International Holdings to expand its Islamic investment business across the region. (Press Release)

The Jeddah-based Islamic Development Bank (IDB) Group set up its office of business forum (Thiqah) at the Investment Coordinating Board (BKPM) in Jakarta. With its first office outside of Saudi Arabia, IDB is hoping to further mobilize its resources and promote Indonesia as a major investment destination for its members.
Khaled Al-Aboodi, CEO of the Islamic Corporation for Development of Private Sector (ICD), IDB’s arm which focuses on private sector cooperation, said that the move would be important to connect more investors from fellow Muslim countries with Indonesia, a vibrant economy that offers lots of investment potential………………………………………..Full Article: Source

The global takaful industry continued to demonstrate a strong growth rate in 2010 at a rate of 22.9pct (USD13.7 billion) as compared to the previous year’s 17.7pct (USD11.1 billion), said KFH Research Limited on Thursday.
The Gulf Cooperation Council (GCC) market contributed USD5.7 billion, Middle East (Non-Arab) at USD5.3 billion and South East Asia contributions stood at USD1.9 billion, said KFH, quoting the 2012 Global Islamic Financial Forum (GIFF) report………………………………………..Full Article: Source

The global takaful industry continued to demonstrate a strong growth rate in 2010 at rate of 22.9% ($13.7bn) as compared to previous year ‘in year 2009 growth rate stands at 17.7% with total contribution value of $11.1bn’ according to the World Islamic Insurance Directory 2012. The Gulf Cooperation Council countries ‘GCC’ market contributed $5.7bn, Middle East ‘Non-Arab’ at $5.3bn and South East Asia ‘SEA’ contributions stood at $1.9bn.
Amongst the key markets, Malaysia, Indonesia and UAE achieved growth rates of over 24.0%, whilst Saudi Arabia saw its gross contributions increase by 9.7%. In 2010, growth in the GCC slowed to 16.3%, from a CAGR of 44.7% in 2004-2009, as the implementation of compulsory medical Takaful in Abu Dhabi and Saudi Arabia was completed earlier. (Press Release)

An investment fund which meets all of the requirements of Shariah law and the principles articulated for “Islamic finance.” Shariah-Compliant Funds must follow a variety of rules, including investing only in Shariah-compliant companies, appointing a Shariah board, carrying out an annual Shariah audit and purifying certain prohibited types of income, such as interest, by donating them to a charity.
Shariah-Compliant Funds have expanded in popularity only recently, even though the concept was first developed in the late 1960s………………………………………..Full Article: Source

Australian Minister for Foreign Affairs Bob Carr says Arab governments should fund explanations of Islam in western languages to avoid a “nightmarish clash” of civilisations. He was responding to increased tensions between Islam and the West following the release of a US anti-Muslim film and satirical cartoons of the Prophet Mohammed in a French magazine.
The tensions have led to violent protests around the world. Senator Carr said there were other ways that Muslims could react to Western expressions they found disrespectful or blasphemous………………………………………..Full Article: Source