The Islamic asset management industry has experienced remarkable growth over the past decade. From the structuring and launching of funds it has evolved towards a more comprehensive wealth management service.
Despite the growth, the industry hasn’t focused yet on defining a proper asset allocation framework for Islamic investments. Historically, the Islamic portfolio approach has been mainly “return driven”, paying less attention to the risk and liquidity profile. The lack of some clusters may have justified this. Increasing allocation to sukuk, the selected use of Shariah-compliant derivatives and a risk parity approach to asset allocation can represent the base for a more effective Islamic portfolio management………………………………………..Full Article: Source

Abu Dhabi Islamic Bank is set to become the first Gulf Arab company to issue a hybrid Islamic bond this week, but investors are likely to demand a big premium for the rare structure.
The bank is expected to raise at least $500 million to shore up its core capital, to comply with tighter Basel III global standards for Tier 1 capital which will be introduced in the United Arab Emirates in coming years. In recent years, Gulf lenders including Commercial Bank of Qatar, Burgan Bank and Saudi Hollandi Bank have sold instruments to raise Tier 2 capital………………………………………..Full Article: Source

Kuala Lumpur-based KFH-Research reports that the Sukuk market in October saw a month-on-month decline in issuance of 24.5 per cent to $8.8 billion but was up 61.3 per cent on year-ago levels.
Total Sukuk issuance in the first ten months of the year reached $112 billion, up 59.4 per cent on the same period in 2011 and has already exceeded full year 2011 issuance by 31.5 per cent. Total Sukuk issuance for 2012 is expected to reach $130 billion by end of the year………………………………………..Full Article: Source

Dana Gas, a natural gas producer based in the United Arab Emirates, formally ackowledged on Monday that it had failed to redeem a $920 million Islamic bond and asked holders of the sukuk to decide on their course of action.
Privately-owned Dana, headquartered in the emirate of Sharjah, did not repay the five-year sukuk on maturity last Wednesday, becoming the first UAE company to miss a bond redemption………………………………………..Full Article: Source

Tilal Development Company, the premier real estate firm that developed the prestigious Muscat Grand Mall, has approached the Sultanate’s market watchdog Capital Market Authority (CMA) to raise funds by way of Islamic debt instrument or sukuk, which will be the first such issue in the country.
“The company officials have unofficially approached us. We have no problem in granting them an approval to raise money by way of a sukuk issue, once they are ready with the plan. They are yet to submit a formal application for the issue,- CMA executive president Abdullah bin Salem Al Salmi, told Times of Oman………………………………………..Full Article: Source

The Asian credit markets were focused on new issues, with the overall mood subdued ahead of the US presidential elections.
With the Republic of Indonesia having mandated banks for a potential Global sukuk, attention switched to Indonesian bonds which continue to be bid up. “We are waiting to see which tenors the government is planning the sukuk issuance as the sukuk is expected to be cheaper than the conventional bonds,” said a credit trader………………………………………..Full Article: Source

To mark the conclusion of the first-ever Muscat International Islamic Finance Forum (MIIFF), the organisers have compiled key recommendations which have resulted from the discussions among senior industry figures, global investors, takaful operators, bankers, as well as top Shariah scholars who participated in the event.
Over the diverse categories covered, the recommendations are as follows: In regulatory framework, they recommended that as the industry is in its early stage of development, it is essential to form a solid regulatory framework and incorporate learning from the experiences of other regulators………………………………………..Full Article: Source

Keen to build the underpinnings of a strong Sharia-compatible Islamic window, Bank Sohar has signed an agreement with Dar al Sharia, the Dubai-based subsidiary of Dubai Islamic Bank - the world’s first Islamic financial institution.
The pact tasks Dar al Sharia with supporting Bank Sohar in its aspirations to emerge as a frontrunner in the provision of Islamic banking services in Oman, a press release said………………………………………..Full Article: Source

Yemen’s Saba Islamic Bank and Djibouti-based Dahabshil Bank are both planning to start operations in Somalia next year. Basel Haj-Issa, who took over as CEO of Saba Islamic Bank five months ago, explained that client demand is driving the bank’s expansion into Somalia.
“Djibouti does a lot of trade with Somalia, and many of our clients need our Islamic services in the country, Haj-Issa said. “They [our clients] have been coming to us and asking why we do not have a presence in Somalia.” Dahabshil Bank, which is a subsidiary of Dahabshil Remittance Service, was established in 2010 to be the main bank for all Somalis after the collapse of the country’s central government left Somalia without an official banking institution………………………………………..Full Article: Source

The Islamic Corporation for the Development of the Private Sector (ICD) is planning to open two new Islamic banks in Mali and Benin in 2013. H.E. Khaled Mohammed Al-Aboodi, CEO of the ICD, revealed that it will open two new Islamic banks in Mali and Benin in 2013, providing Islamic financial services in an area which is currently greatly underserved.
He also stated that it is planning to issue a $200 million Sukuk for the Government of Senegal to provide liquid Islamic products for Islamic banks………………………………………..Full Article: Source

The Islamic Development Bank (IDB) is hosting a three-day community development workshop for Muslim NGOs to accelerate social and economic development of member countries and Muslim communities in nonmember countries.
Essam Noor Fadel Al-Shanqiti, manager of Special Assistance Department at IDB, spoke at the opening session and said the workshop would help NGOs exchange ideas and experiences and share knowledge. “Muslim communities around the world have been benefiting from the bank’s special assistance program that enables them to carry out educational, social and health projects,” he said………………………………………..Full Article: Source

Amana Bank, Sri Lanka’s only full-fledged Islamic lender, plans to double its branches by expanding in rural areas, forecasting a six-fold growth in demand. The company, which started in August 2011, will add five outlets this year to its existing 14 and nine in 2013, Colombo-based chief executive officer Faizal Salieh said.
Sri Lankan Islamic banking assets could reach $1.5bn from $250mn now, he added, without specifying a timeframe. Amana posted a net profit of 178mn Sri Lankan rupees ($1.4mn) in the nine months through September and had assets of SLR18bn, according to Salieh.Amana is targeting unbanked individuals and the small-to-medium sized enterprises that are driving the nation’s growth, Salieh said………………………………………..Full Article: Source

Commenting on the opportunity and challenges for Islamic finance in Africa, Dr. Suleiman Walhad, Chief Executive Officer of Dahabshil Bank International said that “Africa has a population climbing to some 1 billion people and a substantial number of the continent’s citizens are Muslims.
This large population needs to be served and it is on the onus of Islamic finance institutions and industry leaders to bring Islamic financial services to the continent and its large Muslim population………………………………………..Full Article: Source

With insurance firms gearing at ways of entering the takaful market in Oman, experts in the field have said that Oman could achieve RO42 million in the takaful segment by 2015.
Giving the figure, Gautam Datta, chief executive of Al Madina Insurance said, “The opportunities in takaful are immense and the market is worth $12 billion according to Ernst and Young report 2012. Though there is great potential, it comes with challenges. It depends on how the operators take this opportunity in their stride and move ahead………………………………………..Full Article: Source