Posted on 16 November 2012 by Laxman | Email|Print
The Islamic finance industry’s growth has continued to defy global economic malaise in 2012. And, with more government interest, increasingly complex products and a large untapped customer base, future forecasts are no longer concerned with the industry’s ability to continue growing but instead are focusing on the more complex issue of how it will evolve.
An old Egyptian proverb comes to mind when reviewing the 2012 figures for the Islamic finance industry: “At the time of a test, a person rises or falls.” This may well be said to reflect a current dilemma – that a bank’s real worth is known only through the trials and tribulations of the global financial crisis………………………………………..Full Article: Source
Posted on 16 November 2012 by Laxman | Email|Print
Rapidly expanding Islamic finance suffers from a dearth of skilled human resource with syariah-compliance knowledge. The Institute of International Finance (IIF) described it as a challenge for the industry, which has grown at a time when conventional banking and finance have undergone crises, offering a more resilient alternative.
“Further improvements in oversight, the development of secondary markets, regulatory issues and risk management remain,” says Lauren Clark an analyst from IFF’s Africa/Middle East Department and George T. Abed, senior counselor and director of the department, in a report………………………………………..Full Article: Source
Posted on 16 November 2012 by Laxman | Email|Print
While Shariah-compliant banking is not widespread in the United States, Islamic financial institutions are making headway in gaining a foothold in North American banks to bring services to customers. “I have no doubt that investment in a purely Islamic-compliant banking is growing in the US, where there is a lot of openness, I guess, through a Shariah-compliant investment,” said Benjamin Newland, partner with King & Spalding.
The firm has offices in Riyadh and specializes in Islamic Financing. “I can see even before coming over here (to Saudi Arabia) that there was a shift by the time I left in 2006,” he added. “There was a lot of recognition in the market for Islamic structure and investment due to the presence of the Muslim community in the US.”……………………………………….Full Article: Source
Posted on 16 November 2012 by Laxman | Email|Print
While it was suggested that the Egyptian government stands to gain from developing Islamic finance and meeting it ambitious target, it does face significant challenges. New regulatory structures would be needed and the proposed incentives would require significant capital that the government currently does not have.
Added to that, the traditional banking sector is doing well, so it may be tough to get the religiously motivated reforms implemented………………………………………..Full Article: Source
Posted on 16 November 2012 by Laxman | Email|Print
Nigel Denison, executive director of Bank of London & Middle East, says Islamic Finance is increasingly attracting non Muslims in the UK as it is perceived as a safer and more ethical alternative. He spoke as part of Bloomberg Television’s “Faith in Finance.”.………………………………………Full Article: Source
Posted on 16 November 2012 by Laxman | Email|Print
Hong Kong’s bill to facilitate the issuance of sukuk, or Islamic bonds, is expected to be ready early next year but initially at least, it may attract little interest among issuers. In March, the government asked for industry feedback on the subject and this month, it said it aimed to introduce a bill in early 2013.
A draft bill could take three months to prepare and then be passed quickly into law provided there is no controversy, said Marcellus Wong, co-chairman of the taxation policy committee at the Taxation Institute of Hong Kong, an association of tax professionals………………………………………..Full Article: Source
Posted on 16 November 2012 by Laxman | Email|Print
The Republic of Indonesia last night priced its latest Global offering of Islamic bonds at 3.30%, the tight end of final guidance of 3.35% area (plus/minus 5bp), selling US$1bn of 10-year paper on a strong order book of over US$5bn.
The final pricing was also 20bp inside initial guidance of 3.5% area………………………………………..Full Article: Source
Posted on 16 November 2012 by Laxman | Email|Print
Oman’s Al Madina Real Estate plans to issue the country’s first sukuk or Islamic bond in the first quarter of next year, its chief executive said. The sultanate is about to introduce Islamic finance, becoming the last of the Gulf states to do so, and the government is expected to issue regulations covering the industry in coming months.
The company plans to issue a five-year, $130 million sukuk through its sister firm Tilal Development Company, said chief executive Abdlrehman Awadh Barham………………………………………..Full Article: Source
Posted on 16 November 2012 by Laxman | Email|Print
The Republic of Indonesia (RoI) continues to push the envelop on its sukuk fund raising when it priced on November 14 a 10-year, US$1 billion offering, which achieved a lower yield than the conventional bonds it printed earlier this year.
The Reg S/144A issue was priced at par with a periodic distribution of 3.30%. This is at the tight end of the final guidance of 3.35% area (+/- 5bp) and well inside the initial guidance of 3.50% area. The sukuk was quoted at 99.75 to par in the morning of November 15………………………………………..Full Article: Source
Posted on 16 November 2012 by Laxman | Email|Print
The Islamic finance industry in Sri Lanka achieved another milestone in its fast evolving history, with the launch of Sri Lanka’s first-ever Shariahbased income fund recently. Structured as a unit trust, the Comtrust - Adl Mudarabah Fund is the second unit trust to be launched under the combined expertise of Adl Capital Limited and Comtrust Asset Management (Pvt.) Limited.
In 2011, Adl Capital and Comtrust successfully pioneered Sri Lanka’s first open-ended Shariah compliant equity fund, ‘The Crescent i-Fund’ and the launch of this income fund, which would invest only in Shariahcompliant money market instruments rather than equity, would offer investors with an alternative investment opportunity that offers regular returns………………………………………..Full Article: Source
Posted on 16 November 2012 by Laxman | Email|Print
Heraymila Capital (Pvt) Ltd. (HCL) and Amana Capital Ltd. (ACL) jointly launched the Amana-Heraymila Shariah Fund, a balanced unit trust fund that will invest in Shariah-compliant listed equity and income securities. The initial unit offerperiod is from November 12, 2012 till 4.30 p.m. on November 18, 2012, and a unit is priced at LKR 10 during this period. The minimum investment in the Fund is LKR 10,000.
The Fund will offer easy accessibility, diversification, liquidity and stringent Shariah compliance to local and foreign investors. The Islamic financial services industry is gathering momentum in Sri Lanka in line with its growing popularity overseas. Global Islamic financial assets are expected to reach US$ 5 trillion in 2012………………………………………..Full Article: Source
Posted on 16 November 2012 by Laxman | Email|Print
Fitch Ratings has affirmed Abu Dhabi Islamic Bank’s (ADIB) Long-term Issuer Default Rating (IDR) at ‘A+’ with a Stable Outlook and Viability Rating (VR) at ‘bb’.
ADIB’s IDRs are driven by potential state support from the UAE authorities. A change in Fitch’s view of the willingness or ability of the UAE authorities to support ADIB would be negative for its IDRs and its Support Rating Floor………………………………………..Full Article: Source
Posted on 16 November 2012 by Laxman | Email|Print
International Bank of Azerbaijan has borrowed $60 mln from Islamic Development Bank and other Islamic financial organizations, said the BoD Chairman Jahangir Hajiyev. Note that Islamic Banking Department in the structure of the IBA was established in September.
Islamic banking will be realized in stages. So, placement to new office, full formation o personnel, subordination of financing lines and current projects to department management, formation of investment portfolio and other issues must be solved. So, financing of legal entities and individuals and services to clients are planned to start from January, 2013………………………………………..Full Article: Source
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