The past few years haven’t been the best of times for the international banking sector. Aberrant behaviour by certain banks - and the contagion that followed - are the abiding memories of the financial crisis. More recent allegations, issues and proven misdeeds have arguably undermined the credibility and reputation of the global financial sector as a whole.
Well, not quite all of it. Because one sector growing significantly is Islamic finance. Islamic finance remains widely misunderstood and, by many, significantly underestimated. The reality is that it is a US$1.3 trillion global industry - growing annually between 15 per cent and 20 per cent in the past decade - and in markets you may not expect………………………………………..Full Article: Source

The fastest growing religion among the fastest growing population in the developing world is Islam. This is important because under Islamic law, or Shari’a, the taking of interest is forbidden, and trading and ownership are supposed to be more transparent.
Shari’a law spans much more than finance, and interprets moral codes for everything from diet to prayer to politics and economics. All things are considered God’s property and inequities in risk and reward are prohibited, as are limits on personal liability and insurance. (These are considered forms of usury.)……………………………………….Full Article: Source

Islamic finance continues to grow as a prudent alternative to conventional debt-based structures. Financial assets total more than $1.3 trillion and instruments are expanding into new countries beyond its traditional markets in the Middle East and Malaysia. At its core, Sharia principles favour the development and sharing of risk in physical assets, which contribute to the economic growth of society.
There is therefore a natural match between the Islamic finance model and the acquisition and development of real estate assets. Moreover, Islamic finance is a flexible tool which can be used for a wide range of real estate financings. This ranges from residential mortgages (such as the United National Bank of Pakistan’s lease-based mortgage, the first of its kind in the UK), to large scale financings such as Qatari Diar’s acquisition of the Chelsea Barracks and the construction of the Shard of Glass in London. ……………………………………….Full Article: Source

If Australia’s desire to become a regional financial services centre is to ever progress beyond just rhetoric, then we must come to terms with our location. On our door step sits the world’s largest Muslim population with a growing demand for Islamic financial products and services.
Australia can rise to become an important Islamic finance hub in Asia Pacific but it requires urgent regulatory and tax reform. It was two years ago that the Board of Taxation first alerted the Government to the challenges facing Islamic finance in Australia. The Board recommended a raft of regulatory reforms designed to make it easier for Islamic products to be approved and supervised………………………………………..Full Article: Source

In order to avoid a repetition of the financial crisis’ shocks, Islamic finance can be an ethical and sustainable business model in the global financial landscape, said Tirad Al Mahmoud, CEO of Abu Dhabi Islamic Bank (ADIB) Sunday.
Speaking on Bloomberg Television’s inaugural episode named ” Faith in Finance”, Mahmoud said conventional banks shall endorse the principles of Islamic finance as a non-interest, non- conventional, ethical style of investing. According to global auditing and consultancy firm Ernst and Young, there are 390 Islamic financial institutions worldwide, based in 75 countries. Islamic investments reach the mark of 1.2 trillion U.S. dollars, Ernst and Young estimated………………………………………..Full Article: Source

Abu Dhabi Islamic Bank (ADIB), a top-tier Islamic financial institution, made the case for the viability of Islamic finance as an ethical and sustainable business model in the global financial landscape.
Hosted at the inaugural episode of ‘Faith in Finance’, a new six-part series launched by Bloomberg TV and exclusively sponsored by ADIB, Tirad Al Mahmoud, CEO, Abu Dhabi Islamic Bank depicted a positive outlook for Shari’a-compliant banking as a viable, resilient and ethical business model. (Press Release)

The global financial crisis has hurt most banks, but the Islamic banking sector is doing well. The Islamic finance sector is enjoying double-digit growth and proving to be a viable economic alternative.
The Islamic faith has over one and a half billion followers–a demographic searching for the right tools combining their beliefs with the best of capitalism………………………………………..Full Article: Source

The Islamic finance and banking industry is growing at an unprecedented rate and is expected to see flourishing progression in 2012 and beyond. There are many opportunities for career growth and investments within the industry and many young entrepreneurs are tapping into the lucrative sector and finding ways to create wealth in a Shariah compliant manner.
It can often be difficult for entrepreneurs to find the best avenues for investments and business creation within the Islamic finance and banking industry. However due to the rise of various Islamic commodities and its successful framework there are more opportunities opening up for the budding entrepreneur wishing to tap into the industry………………………………………..Full Article: Source

The economic stagnation of the past year and a half has taken a toll on many businesses, but a fleet of Islamic investment banks in Egypt sees opportunity in the new emerging order. Ridge Islamic Capital, one such investment bank, has found a niche in the finance sector and made plans to capitalize on it. It offers Sharia-compliant investment banking, asset management and wealth management services to a market that experts say is primed for Islamic finance.
Launched in late September, the firm is among a slew of banks offering, or planning to offer, Islamic investment products. Others are the National Development Bank and partners EFG Hermes and QInvest………………………………………..Full Article: Source

“Let’s not give too much weight to the ravings about Islamic banking in Egypt,” Abdul Hameed Abu Musa, governor of Cairo-based Faisal Islamic Bank of Egypt, said in a phone interview Oct. 22. He dismissed as “exaggerated” estimates by groups such as the Muslim Brotherhood’s Freedom and Justice Party that Islamic deposits and lending may expand six-fold in the next five years.
Only three of the 39 banks operating in the most-populous Arab country are fully Shariah compliant. Real credit growth to private businesses and consumers may shrink 5.9 percent this year and 5.4 percent in 2013, according to HSBC Holdings Plc estimates………………………………………..Full Article: Source

The rising demand to allow Islamic banking in the country has led the Reserve Bank of India (RBI) to request the government to tweak existing banking laws. Once that happens, it is likely to fetch India billions of dollars in investments from countries in the Middle East.
RBI Governor D Subbarao said: “The Banking Regulation Act of India does not conform to Islamic banking because it allows banks to borrow from and deposit money with the RBI on interest. But we are in correspondence with the government on how our laws can be restructured or amended so that they are in conformity with Islamic banking.”……………………………………….Full Article: Source

Kuwait Finance House (Malaysia) Bhd (KFH Malaysia), a pioneering bank that was incorporated in 1975 in accordance with Islamic principles of syariah, is calling for better awareness among customers that Islamic banking is not only an alternative financial approach but also in some aspects provides better value propositions to the consumers.
In an exclusive interview with The Borneo Post, the bank’s chief executive officer (CEO) Datuk Jamelah Jamaluddin pointed out that Malaysia’s Islamic finance industry had been in existence for over 30 years………………………………………..Full Article: Source

The Development Bank of the Philippines (DBP) is to sell its stake in the country’s sole Islamic bank, the Al-Amanah Islamic Investment Bank of the Philippines (Al-Amanah), as it does not have the expertise in Islamic finance.
The DBP has now obtained the Bangko Sentral ng Pilipinas’ approval to sell its 99.88 per cent stake in Al-Amanah. “We have obtained the approval in principle for the divestment of our stake in Al-Amanah,” said Estrella E. Icasiano, DBP senior vice president and head of investment banking and capital markets group said………………………………………..Full Article: Source

Dubai Islamic Bank ( DIB ) announced that its Retail Credit Department has won the “International Credit Management” category at the “CCR Credit Excellence Awards 2012″, the world’s leading credit industry conference. The award reflects DIB ’s focus on implementing international best practices in the Credit Management field and was received by Kazi Farook Kamal, Head of Retail Credit at a high-profile ceremony in London, earlier this month.
Now in their third year, the CCR Credit Excellence Awards, held in association with the Marston Group, honour companies and individuals who have demonstrated best practice credit management over the past 12 months. (Press Release)

Al Baraka Banking Group president and chief executive Adnan Ahmed Yousif has been recognised for his leadership ability by American Finance House LARIBA. He received the award on the sidelines of an international symposium of Islamic banking and finance in Dallas, Texas.
“This award gives us the resolve and determination to provide services in Bahrain and enhance the image of the Islamic banking sector, in which we are a pioneer regionally and internationally,” said Mr Yousif………………………………………..Full Article: Source

As one of the pioneers and big players in Malaysia’s banking scene, Hussain Najadi is impressed with the progress made since he entered the local sector some 27 years ago.
The banker from Bahrain first ventured into the country as one of the founding fathers of Arab Malaysian Development Bank (AMDB) – now called Ambank – in 1975, with MIDF and Malayan Banking Bhd (Maybank) holding 55 per cent of AMDB and AIAK Group holding 45 per cent of the equity………………………………………..Full Article: Source

Sukuk issuances by GCC governments have reached record levels this year, on the back of positive regional economic developments. Sound liquidity in regional financial systems, a strong local appetite for debt as well as accommodative worldwide monetary policies, is responsible for the trend, according to a report by credit ratings agency Standard & Poor’s.
“As access to capital markets widened, several corporate issuers in the region were able to successfully refinance large amounts of debt falling due, notably by tapping the sukuk market,” said credit analyst Tommy Trask………………………………………..Full Article: Source

Bank of Khartoum, Sudan’s oldest bank, plans to start selling Islamic corporate bonds, or sukuks, again as the economic outlook for African country improves in the wake of an oil deal with South Sudan, its general manager said.
Fadi Salim Faqih said the Islamic bank, which is around a fifth-owned by Dubai Islamic Bank, expects to post a record profit this year boosted by strong lending and a substantial windfall from the devaluation of the Sudanese pound, Global Arab Network reports according to Reuters………………………………………..Full Article: Source

The Philippine Stock Exchange hopes to complete a list of Shariah-compliant stocks by next year, as this is expected to attract local and foreign Muslim investors. “We’re hoping that we can actually have an index sometime next year,” PSE President Hans Sicat said.
“We’re working with the NCMF (National Commission for Muslim Filipinos) essentially to help with this project … [and] over the last few weeks, we have invited experts or those who are already participating in these Shariah-compliant boards to talk about the processes and [act] as advisers,” he added………………………………………..Full Article: Source

The insurance, reinsurance, Takaful and cooperative markets within the Middle East and North Africa (MENA) continue to offer opportunity for growth, although the global slowdown of financial markets and political instability in the region threaten to dampen prospects for some companies, A. M. Best Co. said in its special report on Middle East & North Africa Non-Life and Life Insurance market this October.
The report noted that the two main regional markets remain the UAE and Saudi Arabia, which is indicative of their economies and the potential of their markets. Both countries benefit materially from oil revenues, which have stimulated growth, in addition to the introduction of compulsory medical schemes………………………………………..Full Article: Source

The halal market is a growing one with a potential well within the multitrillion dollar range, but only a small portion of it is utilized, according to World Halal Council’s (WHC) Turkish chairman Hüseyin Kami Büyüközer.
Halal food, which refers to goods approved by the Islamic code, is a $860 billion market spread across the world and this figure rises even higher to $2.1 trillion when textiles, cosmetics and medical products are factored into the mix, said Büyüközer, who also chairs Gimdes, Turkey’s local halal-licensing authority………………………………………..Full Article: Source