Growing demand across a number of sectors, rational pricing and innovative products are trends that are shaping the future of Islamic banking and the finance industry. Despite continuing tensions across the Middle East and North Africa, key regions for this niche industry, Islamic finance continues to make headlines.
A well-publicised shortage of liquidity in the United States and European markets has resulted in organisations looking more towards funding from sources in the Middle East and South East Asia. There is a move towards more deals being funded from Islamic investors through the debt capital markets………………………………………..Full Article: Source

Saudi Hollandi Bank shareholders have agreed to issue an Islamic bond, or sukuk, worth 1.4 billion riyals ($373 million) to support the bank’s capital base, it said in a bourse statement on Sunday.
The bank did not say in its statement when the sukuk would be issued or give any other details. Saudi Hollandi said early last month its board of directors had approved the sukuk pending shareholder agreement………………………………………..Full Article: Source

Sukuk have played a crucial role in the infrastructure sector over the past decade, with proceeds raised from issuances being utilised for both low and high profile projects, according to KFH Research.
The very nature of Sukuk combined with their flexibility allows them to be structured in various different ways which has attracted corporate and sovereign entities to choose Islamic bonds as a viable alternative financing instrument. The infrastructure sector has seen a large portion of the raised Sukuk funds directed to development projects around the globe………………………………………..Full Article: Source

Kuwait Finance House’s (KFH) sukuk arm has completed a mandate for the Turkish government. Liquidity Management House for Investment, alongside Citigroup and HSBC, advised the Turkish Treasury on its debut sovereign sukuk issue, which had an order book almost five times of the issue size, raising $1.5 billion.
The issue is expected to be a gateway to further sukuk issuances by Turkey with the sovereign issue paving the way for the fast growing sukuk market in the GCC and Malaysia, in addition to new territories and markets………………………………………..Full Article: Source

Liquidity Management House For Investment (Liquidity House), the Sukuk arm of Kuwait Finance House K.S.C., continues to build its leadership as a leading provider of Islamic advisory services with a focus on global Sukuk structuring and placement.
Liquidity House has just completed a recent mandate for the Turkish government. The firm, alongside Citigroup and HSBC, advised on the Turkish Treasury’s recently concluded debut sovereign Sukuk issue, which had an order book almost five times of the issue size, ultimately raising $1.5 billion………………………………………..Full Article: Source

Qatar International Islamic Bank (QIIB) has announced the mandating of QNB Capital, HSBC and Standard Chartered Bank to arrange for meetings with investors in the Middle East, Asia & Europe from 7 October 2012 to discuss the likelihood of issuing dollar-denominated Sukuk subject to market conditions.
It has been reported that the Sukuk may take the form of a Regulation S offering. QIIB’s proposed Sukuk follows on from a $750 million Sukuk issued last week by Qatar Islamic Bank and lead managed by HSBC, Standard Chartered, Deutsche Bank and Qinvest………………………………………..Full Article: Source

Sukuk (Islamic bonds) have played a crucial role in the infrastructure sector over the past decade, with proceeds raised from issuances being utilized for both low and high profile projects.
The cumulative infrastructure projects and funding needs in both the GCC and Asian regions are expected to support the sukuk market in 2012 and 2013 given that infrastructure spending has been one of the key drivers or economic growth in the GCC over the past decade. An important dimension of the infrastructure investments has centered on efforts to turn the region into an internationally significant transportation hub………………………………………..Full Article: Source

Qatar Islamic Bank (QIB) rated A- and A by S&P and Fitch, all stable outlook, has successfully priced a 750m 5-year sukuk issued at par with a 2.5 percent semi-annual profit rate under its 1.5bn Trust Certificate Issuance Programme. Deutsche Bank, HSBC, QInvest and Standard Chartered Bank acted as joint lead managers and joint bookrunners, with Qatar International Islamic Bank and Sharjah Islamic Bank as Co-Managers on the transaction.
Bookbuilding began on October 2, 2012, with the release of official price guidance at MS 190bps area. This ensured good momentum in the bookbuilding process and on October 3 London morning, a revised price guidance of MS 175-180bps was released to investors and the deal was finally priced at the tight end of the range at MS 175bps………………………………………..Full Article: Source

New draft regulations for the issuance of sukuk - the Islamic equivalent of bonds - have been finalised by the Capital Market Authority (CMA) ahead of their proposed publication for public consultation, it is learnt.
According to an expert familiar with preparations for the imminent promulgation of a legal framework for the introduction of Islamic Banking services in the Sultanate, the sukuk draft regulations are expected to be posted on the website of the CMA for public consultation. After weighing feedback from the industry, as well as the general public, the regulations will be enacted into law via a Royal Decree, said Khalid Yousaf, Director - Islamic Finance Advisory Services, KPMG Oman………………………………………..Full Article: Source

The Islamic banking sector has a bright future in the UAE as it has been playing a major role in financing infrastructure projects, residential properties and corporate expansion, a top official of Noor Islamic Bank said.
The Islamic lender, which was established with a vision to be recognised as the financial icon from Dubai, is developing its online and mobile banking products and services to expand its reach to the customers. The bank is all set to launch its latest product ” A Bank in Your Hand - at Gitex Technology Week next week………………………………………..Full Article: Source

Financial firms are making the classroom their latest competitive battlefield, as they roll out pilot programmes on financial literacy for UAE schools. Al Hilal Bank this week signed a deal with Emirates National Schools to teach financial literacy in Islamic finance to 5,800 pupils in Abu Dhabi and Al Ain.
“We’d hope that more banks will participate in this and more schools. I hope this is the beginning for a UAE-wide programme,” said Mohammed Berro, the chief executive of Al Hilal Bank………………………………………..Full Article: Source

The positive assessment of recent progress at Sabah’s state banks underlines the confidence in the potential of its financial services sector, particularly in the area of Islamic finance. In July, Malaysia-based RAM Ratings reaffirmed the Sabah Credit Corporation’s (SCC’s) ‘AA1’ and ‘P1’ issue ratings, stating that the state financial institution had a stable outlook.
In the previous month, RAM Ratings also assigned long- and short-term issue ratings of ‘AA1’ and ‘P1’ to the Sabah Development Bank (SDB), noting the ‘strategic role’ the financial institution played in supporting the state’s goals………………………………………..Full Article: Source

Egyptian President Mohammad Mursi sought to reassure conservatives at home that a request for a loan of nearly $5 billion in aid from the IMF would be compatible with Islamic banking principles. Egypt asked for a $4.8 billion loan in August from the International Monetary Fund, which in turn urged economic reforms.
“This does not constitute Riba” the Egyptian president said, in reference to abusive interest rates as defined by Islamic jurisprudence. Islamic law prohibits usury but applying interest in some circumstances is acceptable………………………………………..Full Article: Source

A congressional bet of the Partido ng Masang Pilipino (PMP) in Maguindanao is batting for the enhancement of Islamic banking as another “development paradigm” for the country’s speedy economic growth.
Ali B. Sangki, a former chairman of the board and chief executive officer (CEO) of the Philippine Amanah Bank (PAB), said he filed his certificate of candidacy here Friday for Maguindanao’s second congressional district seat to take to the plenary hall of the national legislature nagging issues about Islamic banking and other concerns affecting Muslim Filipinos………………………………………..Full Article: Source

Oman’s new Islamic banks will struggle initially to compete with established conventional banks offering Sharia-compliant services through the Islamic windows when the country opens up its Islamic banking market, global ratings agency Fitch Ratings said.
In a statement on its website, Fitch said that the combination of well-known brand, an established network, service quality and cost-efficiency savings will give the incumbents a significant advantage over new Islamic banks………………………………………..Full Article: Source

HSBC’s decision last week to close down its Islamic retail banking operations in six markets – leaving it with a presence only in Malaysia, Saudi Arabia and, in shrunken form, Indonesia – has shone a spotlight on the contradictions of the broader sector.
Islamic banking is reckoned to be growing globally at a rate of more than 20 per cent a year, as a greater proportion of the world’s 2bn Muslims seek out finance that is compliant with sharia laws on issues such as the illegality of charging interest………………………………………..Full Article: Source

As a result of a strategic review of its Islamic finance business, the HSBC Group recently has announced that it will focus its Islamic finance offering on customers in Malaysia and Saudi Arabia, and maintain a limited presence in Indonesia.
HSBC will continue to offer wholesale Islamic financing/Sukuk products to its global client base through its operations in Malaysia and Saudi Arabia. Following the restructuring, HSBC will retain 83 per cent of the Group’s Islamic business revenues………………………………………..Full Article: Source

In my experience conferences are substantially networking events, a break from the office, perhaps an opportunity to travel, socialise — and eat richly. It might then be a way of drumming up business; the undercurrent is all about marketing. Whether very much is learned in terms of the nominal subject matter of the gathering is sometimes questionable.
At the same time, guests from international officialdom may offer a few words, maybe drop tidbits to reporters, and journalists will have all their paraphernalia at the ready in a strangely routine kind of artificial excitement………………………………………..Full Article: Source

Being at the forefront of Islamic finance development, Malaysia no doubt is like a “human capital bank”, supplying experts to other countries keen on the fast-growing Islamic financial market.
The Mauritius, an island nation off the African continent, is one of those countries and despite only 18 per cent of its population being Muslims, the government sees great prospects for it to venture into this trillion-dollar industry for the underserved Muslims in Africa………………………………………..Full Article: Source

Gulf Finance House’s (GFH) Tunis Financial Harbour (TFH) project has been backed by Tunisian Investment and International Co-operation Minister Riadh Bettaieb. The commitment came as a high profile delegation from GFH, the Bahrain-based Islamic investment bank, comprising acting chief executive Hisham Alrayes and TFH chief executive Lutfi Alzaar met the minister.
Mr Bettaieb reiterated his support for TFH and expressed his government’s commitment to ensure its development according to the plan, side by side with GFH. “The expected benefits of TFH are extraordinary for Tunisia, GFH and our investors,” said Mr Alrayes………………………………………..Full Article: Source

The Asia Pacific Brands Foundation (APBF) has awarded Takaful Malaysia Bhd (Takaful Malaysia) group managing director Datuk Mohamed Hassan Kamil with ‘The BrandLaureate Transformational Corporate Leader Brand Icon Leadership Awards 2012’.
This was in recognition of his outstanding and iconic leadership in spearheading the growth and development of Takaful Malaysia, it said. The award was presented by the chairman of the APBF, Tan Sri Dr Mohamed Hashim Mohd Ali, during the award presentation gala dinner held recently………………………………………..Full Article: Source