Corporate and infrastructure issuers in the Gulf region may increasingly rely on Islamic bonds (sukuk) as a source of funding in coming quarters, Standard & Poor’s Ratings Services said.
Sukuk issuance in the GCC has peaked so far in 2012 at more than $19 billion following a lull in activity between 2009 and 2011. Not only has sukuk issuance in the first nine months of the year surpassed total issuance for full-year 2011, it also exceeded conventional bond issuance for the first time………………………………………..Full Article: Source

Malaysian banks are targeting Islamic bond sales from the top three palm-oil producers, which have almost triple the amount of debt due in the three years through 2014 than in the last three and need funds for replanting.
Hong Leong Islamic Bank Bhd, Maybank Investment Bank Bhd and Affin Investment Bank Bhd are chasing an expected surge in underwriting deals, senior executives at the lenders said in separate interviews last week………………………………………..Full Article: Source

Pakistan has drafted rules to develop the Islamic capital market as the central bank seeks to increase assets that comply with religious tenets to 15 percent of the total in five years.
The “Issuance of Sukuk Regulations 2012” allows companies to sell Shariah-compliant notes so long as they have no overdue loans, the Securities Exchange Commission of Pakistan, said in an e-mailed statement Oct. 4. The issuer and the underlying assets should also not be rated lower than BBB-, it said………………………………………..Full Article: Source

The government has launched a campaign to encourage more agricultural-sector companies to fund through Islamic bonds. The move is seen as a bid to develop the country’s sukuk market and stimulate its agricultural industry.
In the 2013 Budget, tabled on September 28, Prime Minister and Finance Minister Datuk Seri Najib Razak detailed a number of steps to stimulate and strengthen the country’s capital markets. These include tax breaks, the creation of retail bonds and an additional RM400 million allocation to state-owned guarantee agency Danajamin Nasional………………………………………..Full Article: Source

With 62% of the world’s Muslim population on our doorstep, Islamic finance offers vast opportunities to Australia’s financial services sector. These include opportunities to develop innovative Shariah compliant funds and superannuation products as well as banking and insurance products.
The development of a strong Islamic finance industry in Australia could be the ‘innovation’ that Australia needs to tap into the growing global Islamic finance market and to establish itself in the Asian Century. Ultimately, this is all tied to Australia’s ambitions of becoming a financial services hub in the Asia Pacific region………………………………………..Full Article: Source

As banking in line with Islamic law matures, partnerships rather than rivalry feed the industry’s comeback. According to global consultancy Ernst and Young, there are more than 390 Islamic banks and financial institutions based in 75 countries. The emirate of Dubai will soon have a new player in the field of banking in line with Islamic law or Shari’ah.
Earlier this month H. H. Sheikh Maktoum bin Hasher Al Maktoum, executive chairman of the United Arab Emirates’ (UAE) oldest investment bank, Shuaa Capital, said on request by Xinhua that his bank applied for an Islamic banking license. “We plan to launch Islamic banking in the first quarter of 2013,” he said………………………………………..Full Article: Source

Islamic finance has grown and expanded rapidly in recent years. It was recently announced that, following in the footsteps of some of its European neighbours, Germany will soon have its first Islamic bank — which is ironic if you think about the history of the country. Ireland, a country of arguably staunch Catholics, is also making a bid to be a global hub for Islamic finance.
The global growth of Islamic finance in recent years is, in part, a response to the demand for a more ethical financial system. But is Islamic finance just an ethical “spin” on “conventional” finance? Or can it offer more tangible solutions beyond the Muslim community?……………………………………….Full Article: Source

The National Bank of Abu Dhabi, the second-largest bank in the United Arab Emirates (UAE) by assets, plans to triple its contribution from Islamic banking by introducing sharia-compliant services in Egypt, Oman and Malaysia.
NBAD aims to derive up to 10 percent of its operating income from Islamic banking by 2020, from 3 percent presently, chief executive Michael Tomlin told reporters at the launch of its Malaysian subsidiary on Monday………………………………………..Full Article: Source

The National Bank of Abu Dhabi (NBAD) has chosen to focus on being a conventional wholesale bank in Malaysia first, before expanding into Islamic finance later.
The bank, which launched its Malaysian subsidiary National Bank of Abu Dhabi Malaysia Bhd (NBAD Malaysia) yesterday, was reported in September to have been interested in seeking an Islamic banking licence for NBAD Malaysia………………………………………..Full Article: Source

The Manila-based Asian Development Bank (ADB) has signed an agreement with the Islamic Financial Services Board (IFSB) to help member countries adopt the IFSB’s prudential standards.
The five-year agreement, signed earlier this week, will see the ADB support member countries in legal and regulatory aspects of meeting the IFSB’s standards, Ashraf Mohammed, assistant general counsel at the ADB, told Reuters………………………………………..Full Article: Source

The five-year agreement, signed earlier this week, will see the ADB support member countries in legal and regulatory aspects of meeting the IFSB’s standards, Ashraf Mohammed, assistant general counsel at the ADB, told.
IFSB guidelines are widely used in the Islamic finance industry, but they are not mandatory – it is up to national regulators to decide whether to adopt them. “The real test of all this is for financial institutions to apply these standards,” Mohammed said. “We will review mid-term in two years to see how it has been effective.”……………………………………….Full Article: Source

The regulatory framework for Islamic Banking has been finalised, Hamoud bin Sangour al Zadjali, Executive President of the Central Bank of Oman (CBO), announced. Addressing delegates during the opening of the Oman Investment Forum 2012, he added that amendments to the Banking Law — a prerequisite for the rollout of Islamic Banking services in the Sultanate — are currently in process.
“Islamic banking is considered as a new chapter in the banking sector in Oman, which would diversify banking services and augment financial inclusion,” Al Zadjali said. “The advent of Islamic banking is expected to complement the current conventional banking in promoting growth in the economy during 2012 and beyond,” the executive president stated………………………………………..Full Article: Source

HE Hamoud Bin Sangour Al Zadjali, Executive President of Central Bank of Oman, urged all Islamic banks and commercial banks, which plan to set up separate branches to provide Islamic banking service in accordance with Sharia, to be careful and take necessary precaution before implementing the same as these service are new in the Sultanate.
The launching of Islamic banking will be an addition to existing banking service provided by the commercial banks, and this will increase deposit, credit and profitability of banks, he said in an interview to Oman Tribune………………………………………..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

HSBC bank will focus its Islamic financing operations in Saudi Arabia. Here’s the bad news: It’s dropping its Islamic banking operations in seven other countries, including the United Kingdom, and has already divested its assets in nearly 30 other countries.
HSBC’s reasons for getting out of the Islamic banking game in some countries is because of the pitiful state UK banks have been in since the global economic meltdown of 2008 and the restructuring efforts now underway to revive the industry. But HSBC, as a conventional bank, also could not really compete against the big Islamic banks………………………………………..Full Article: Source

National Bank of Abu Dhabi (NBAD), the biggest bank in UAE by assets, plans to seek an Islamic banking licence in Malaysia in the future, said its top executive. The Abu Dhabi-based lender wants to expand after starting conventional commercial banking operations here.
“In due course we will apply for an Islamic licence,” its group chief executive Michael H. Tomalin said at a media briefing prior to the official launch of the unit here. He said the company will actively consider Islamic banking in the long term but for now it would focus on building the local market first………………………………………..Full Article: Source

Qatar First Investment Bank ( QFIB ), Qatar’s first independent Sharia compliant investment bank authorized by the QFC Regulatory Authority, and Kuwait Energy, one of the fastest growing independent oil and gas exploration and production companies in the Middle East, announced today the signing of a $150 million strategic investment agreement.
The deal is structured in the form of a Convertible Murabaha which will be utilized to support Kuwait Energy’s ongoing expansion and growth plans and facilitate its continuous emergence as a leading independent player in the oil and gas exploration and production sector………………………………………..Full Article: Source

Islamic financial services group BIMB Holdings Bhd has received consent from Bank Negara to start negotiations with Dubai Financial Group LLC (DFG) and Lembaga Tabung Haji (LTH) for its proposed acquisition of DFG’s stake in Bank Islam Malaysia Bhd.
In a filing with Bursa Malaysia, BIMB said it had received a letter from Bank Negara on Oct 5 saying that the central bank “has no objection in principle” for the negotiations, which should be completed on or before March 31, 2013………………………………………..Full Article: Source

Islamic banking, Islamic finance and takaful in its modern form was born in late twentieth century out of the desire of pious Muslims to try avoiding committing a sin in their financial transactions. We should not lose sight of that intention, otherwise Islamic finance could lose its direction, get corrupted or even hijacked.
It should be syariah-compliant from beginning to end. There is no point buying halal meat if you add wine in the cooking!……………………………………….Full Article: Source

Safa Investment Services is the newest part of the growing financial market activities at The Investor for Securities, a CMA-licensed investment company founded in 2007 in Riyadh. Over the last two years The Investor has grown as an investment business and now has more than $1 billion in total Assets Under Management (AUM).
The Four Seasons Hotel in downtown Riyadh will be the site of the grand opening launch ceremonies for Safa Investment Services later today, 8 October 2012. The event will include presentations from leading specialists in Saudi banking and finance………………………………………..Full Article: Source

Tamim Al Kawari said he left as head of Goldman Sachs Group Inc.’s Qatar office to join Qinvest as the Qatari company’s deputy chief executive officer. Al Kawari didn’t say when the transfer occurred in a telephone interview from the Qatari capital Doha.
Al Kawari joins Qinvest, which counts Qatar Islamic Bank (QIBK) as its biggest shareholder, as it seeks to form a joint venture with Cairo-based EFG-Hermes Holding SAE in which the Qatari investment bank will hold a 60 percent stake………………………………………..Full Article: Source

The economic performance of the GCC countries is robust with an expected growth of 6 percent for the region, a specialized economic report showed Sunday. The report, by Gulf Investment Corporation, highlighted two forces which helped the GCC to shoulder the weight of the global sluggishness.
“First, is the continued expansive fiscal policy on an assortment of investment projects as well as current expenditure that act as safety nets for consumers and wage earners. Secondly, firm oil prices and increased oil and natural gas exports are helping the economies achieve sustained economic growth and achieve robust surpluses in trade and fiscal accounts,” reads the report………………………………………..Full Article: Source