Gulf States and Asia are leading the growth in Islamic finance, which is being considered most credible alternative to conventional banking in the wake of global financial crisis, a senior banker said. Standard & Poor’s expects the $1 trillion global Islamic finance industry is set to double in size between 2011 and 2015, recording an annual 20 per cent growth driven by increasing demand for this “credible alternative” to conventional banking in the GCC and Asia.
“Young, fast-growing Muslim populations, robust macroeconomic environments, and large infrastructure projects that require financing are the main drivers of this increasing growth. The UAE is surely a predominant force in the region,” Mohammad J.A. Zaqout, executive vice-president, Personal Banking Group of Al Hilal Bank 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

Corporate and infrastructure issuers in the Gulf region may increasingly rely on sukuk, the Islamic equivalent of bonds, as a source of funding in coming quarters, Standard & Poor’s Ratings Services said Monday in its report titled “Sukuk Are Surpassing Conventional Bond Issuance in the Gulf Countries as Yields Tighten”.
Sukuk issuance in Gulf Cooperation Council countries (GCC) has reached a record high this year, propelled by positive developments in the region’s economy and capital markets………………………………………..Full Article: Source

Corporate and infrastructure issuers in the Gulf region may increasingly rely on sukuk as a source of funding in coming quarters, says a report published by Standard & Poor’s Ratings Services.
The report - Sukuk Are Surpassing Conventional Bond Issuance in the Gulf Countries as Yields Tighten - said sukuk issuance in the GCC has reached a record high this year, propelled by positive developments in the region’s economy and capital markets. Yields have fallen dramatically on both conventional and sukuk capital market issuance in the past year………………………………………..Full Article: Source

The issuance of global sukuk, bond-like instruments that are compliant with Islamic Shariah law, is expected to break previous volume records in 2012, but the Middle East may not be the centre stage for the boom of Islamic financial products.
Recent initiatives by banks, service providers and regulators suggest that the Malaysian financial market is in the best position to take advantage of the ‘sukuk fever’. Data published by the Zawya Sukuk Monitor show that the largest amount of issuance (70%) comes from South-East Asia, and Malaysia in particular………………………………………..Full Article: Source

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 $1.5bn.
It is expected that the issue will be a gateway for further Sukuk issuances from Turkey with the sovereign issue having paved the way for a fast growing Sukuk market across the already GCC region and Malaysia, in addition to new territories and markets………………………………………..Full Article: Source

Financial experts discussed current trend and put spotlight on the future of Islamic retail banking in Gulf countries and across the globe in Dubai on Tuesday. Welma Williams, deputy production director at Fleming Gulf, said: “Islamic retail banking is one of the fastest growing banking sectors in the MENA region rivaling traditional banks.
It is a progressive and robust industry in itself, for this reason, competition is mounting, with more banks eager to get a share of the growing market.”……………………………………….Full Article: Source

Emirates Islamic Bank (EIB), one of the leading Islamic financial institutions in the region and the Islamic banking arm of Emirates NBD Group, announced today the launch of a three weeks-long “Indian Rupee (INR) Remittance Campaign,” which offers customers the opportunity to remit funds to India at a reduced exchange rate and zero processing fee.
The campaign, which will continue till October 31, 2012, enables existing and walk in Indian customers of both Emirates Islamic Bank and Dubai Bank, to take advantage of the reduced exchange rate available on Indian remittance transactions during this period………………………………………..Full Article: Source

The regulatory framework for Islamic Banking has been finalised, Hamoud Bin Sangour Al Zedjali, executive president of the Central Bank of Oman (CBO), announced while addressing delegates at the two-day Oman Investment Forum 2012, which ended on Tuesday.
He added that amendments to the Banking Law — a prerequisite for the rollout of Islamic Banking services in the Sultanate — are currently under way. Two new local banks, Bank Nizwa and Al Izz Islamic Bank, have been granted initial approvals while almost all local banks have evinced interest in establishing windows for practicing Islamic banking, Al Zedjali said………………………………………..Full Article: Source

Gatehouse Bank plc, a Kuwaiti-owned wholesale Shariah compliant investment bank based in the City of London, has completed the £165m acquisition of the law firm SJ Berwin’s offices at 10 Queen Street Place in London, in collaboration with a flourishing Malaysian Sovereign Wealth fund.
Gatehouse acted as Investment and Shariah Adviser for the deal, which marks the Malaysian client’s first investment into the London real estate market and is a key part of its wider global investment strategy………………………………………..Full Article: Source

A high profile delegation from Gulf Finance House (GFH), the Bahrain-based Islamic Investment Bank, comprising Hisham Alrayes, acting chief executive officer (CEO) and Lutfi Alzaar, chief executive officer of Tunis Financial Harbour (TFH), met Riadh Bettaieb, the Tunisian Minister of Investment and International Co-operation to review the progress and discuss plans for building the Tunis Financial Harbour (TFH).
During the meeting, Bettaieb reiterated his support for the project and expressed his government’s resolve to ensure its completion on time………………………………………..Full Article: Source

A boutique finance brokerage and leading specialist short term lender are celebrating their new partnership following the successful completion of back-to-back second charge bridging loans with a combined value of more than £4 million.
Mayfair-based Arc & Co selected Omni Capital as its preferred lending partner for both deals. Time was of the essence in each case, which required clear, unfussy decision-making and a focused effort by all parties. No other brokers were involved………………………………………..Full Article: Source

As banking in line with Islamic law matures, partnerships not rivalry feed the industry’s growth. 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 that his bank applied for an Islamic banking license. “We plan to launch Islamic banking in Q-1 of Y 2013.”……………………………………….Full Article: Source

One senior Islamic banker based in the UAE had some very sobering words indeed: “In my view the key problem with the industry is a general lack of graduate training programmes and internships, even at large banks. Without such schemes, the industry will find it difficult to absorb the increasing number of graduates/job seekers.”
Clearly this is a systemic issue that the institutions themselves would have to get grips with before students and job seekers can hope to see any improvement in their job prospects………………………………………..Full Article: Source