Posted on 28 November 2012 by Laxman | Email|Print
Morocco is drafting a law to allow the sale of Islamic bonds, joining North African neighbours seeking to lure more investors to their debt after global sukuk offerings surged to a record.
The government, led by the Islamist Justice and Development Party, will put the bill to parliament as soon as the draft is completed, Budget Minister Driss Elazami Eldrissi said by phone on November 20. He wouldn’t say when that would happen. Tunisia and Egypt, two other North African countries ruled by Islamist parties after last year’s uprisings, are also drafting laws to pave the way for possible sukuk sales in 2013………………………………………..Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
Saudi Hollandi Bank, the kingdom’s eighth-largest bank, has completed a SR1.4 billion ($373.3 million) Islamic bond issue. The subordinated sukuk, which will boost the bank’s Tier two capital ratio, has a seven-year maturity but can be redeemed by the issuer after the end of the fifth year, the statement added.
No detail was provided on what the bank’s Tier two ratio was before and after the offering. Tier two is a measure of the bank’s supplementary capital reserves………………………………………..Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
Singapore investors dipped heartily into the world’s first syariah- compliant Tier 1 perpetual sukuk (Islamic bonds) despite the financial centre not being known for its appetite for Islamic finance.
So keen were Singapore investors on the offering that they accounted for 23 per cent or US$3.5 billion of the US$15.5 billion order book for Abu Dhabi Islamic Bank’s (ADIB) US$1 billion Tier 1 perpetual sukuk. In the end, however, allocations were scaled back and they ended up with 18 per cent of the issue………………………………………..Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
Islamic funds have come through a difficult period, registering a growth of seven per cent last year; however, compared to the conventional market, they remain a poor relation.
Sukuk is soaring, with issuances set to surpass the record levels set in 2011. Issuances in the first quarter of 2012 have already reached approximately $43 billion worldwide, which is nearly half of the total issuance in 2011………………………………………..Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
Islamic finance remains widely misunderstood and, by many, significantly underestimated. The reality is that it is a USD1.3 trillion global industry – growing between 15 to 20% p.a. in the past decade – and in markets you may not expect.
The face of Islamic banking has changed markedly in just the past several years. Only five or so years ago, when I would seek points-of-view on Islamic finance, inevitably I would find myself talking to a researcher or an academic………………………………………..Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
Islamic finance must be inclusive and accessible to all particularly the lower income group and small businesses so as to achieve a more balanced global economic growth with reduced income disparities, Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz said.
To this end, she said Islamic financial institutions must strive to enhance the access of their financial services to all segments of society by meeting the demand for more Islamic microfinance products. “In emerging as a new market niche, Islamic microfinance would meet the differentiated demands of low income communities and provide support to entrepreneurial activities,” she said………………………………………..Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
Sharia banking has been experiencing extraordinary developments in several countries including Indonesia, home to 191 sharia banks. In Indonesia, this particular banking system has been enjoying an average growth-rate of 40.2 percent per year from 2007 to 2011.
“The potential of sharia banking is big,” director of the Risk Management Insurance Indonesia, Salustra Satria, said. Roslan Abdul Razak of the INCEIF said that the combined assets of 1,000 sharia financial institutions in 75 countries currently was US$ 1.2 trillion………………………………………..Full Article: Source
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Despite the challenging global economic environment, leading Islamic financial institutions have been able to sustain their growth ambitions, according to an expert.
“The industry, with its increasingly international footprint, continues to demonstrate its resilience and competitiveness, while the range of Shari’ah-compliant products and services available globally has significantly widened and deepened,” David Mclean, the organiser of the World Islamic Banking Conference 2102, said………………………………………..Full Article: Source
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Islamic finance reporting requirements need more harmonisation and consistency, according to a report by KPMG and ACCA. Guidance is needed on applying international financial reporting standards (IFRS) when accounting for some Islamic financial products. Further help is needed to deal with the reporting to stakeholders of information on an entity’s Sharia-compliant operations.
The calls follow a series of KPMG and ACCA roundtable discussions, which included representatives of Islamic finance experts, bankers and other finance professionals………………………………………..Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
Turkey’s national carrier Turkish Airlines is in talks with banks about a leasing arrangement worth around $500 million to help fund its plane orders from 2014, bankers familiar with the negotiations said.
Turkish Airlines was also considering issuing sukuk — Islamic bonds — or eurobonds next year to finance its aircraft acquisition plans from 2014, they said………………………………………..Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
Islamic banking may have been born in the GCC, but it grew up in Malaysia. To the casual observer, this has much to do with its supportive Government and majority Muslim population, who we are led to believe demanded banking products that complied with their faith.
However, a wide cultural divide exists between the GCC and Malaysia; while the Middle East banks on faith, Malaysia appears to have faith in banking; its more relaxed population, unlikely to be swayed simply by an Islamic brand, haven’t just demanded Shari’ah-compliant banking, they’ve demanded more for their money………………………………………..Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
Tirad Mahmoud, chief executive of Abu Dhabi Islamic Bank, defies Gulf stereotypes. As a Qatari citizen, he has chosen not to take the easy route to work for one of Doha’s banks. Neither does he opt for the traditional white-collared dress of the country and instead wears a suit.
He makes no attempt to hide behind the oft-quoted jargon of Islamic finance. “This is not a mosque,” says Mr Mahmoud, sipping an espresso in his office, which looks out to the centre of Abu Dhabi, the capital of the United Arab Emirates………………………………………..Full Article: Source
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Why is it that while Bahrain and Malaysia have successfully established themselves as Islamic banking hubs with over 20% market share, others like Egypt and Turkey languish at 5% or below despite having had a head start? Regulatory clarity is the answer.
Experience shows that in countries where the regulator recognises the uniqueness of Islamic banking vis-à-vis conventional banking and creates a separate regulatory framework for Islamic banks, the industry responds with accelerated growth and market share gains………………………………………..Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
The need to reassess the opportunities provided by the Islamic finance system in combating the current financial crisis is a welcome development. The collapse of leading Wall Street institutions, notably Lehman Brothers, and the subsequent global financial crisis and economic recession, are encouraging economists around the world to consider alternative financial solutions. Nigeria has however stuck to its traditional western styled banking system.
Until recently discussions on Islamic banking and finance as an alternative model have been in muted tones and the reason is simple. Nobody wanted to stir the hornet nest and spun religious jingoism. In real terms, Islamic banking is actually an economic practice that has proven successful even in the United Kingdom and United States of America among others………………………………………..Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
Kuwait Finance House (KFH), the Gulf state’s largest Islamic lender, will recommend a 20 percent capital hike to shareholders, the company said in a bourse filing on Tuesday, which will help boost capital ratios and fund expansion.
The company’s board of directors decided on Monday to make the recommendation when it holds its annual general meeting, with proceeds to fund the bank’s expansion both at home and internationally, KFH said. Any capital issue also requires approval from the country’s regulator. A potential capital increase will boost KFH’s paid-up capital to 348.5 million dinars ($1.24 billion) from 290.4 million dinars, Al Watan newspaper reported on Tuesday………………………………………..Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
Sharjah Islamic Bank ( SIB ) has announced signing an agreement with Ruwad Establishment. The signing ceremony was held at the bank’s headquarters and attended by HE Mohammed Abdullah, CEO of Sharjah Islamic Bank and HE Ahmed Mohammed Al Midfa, Chairman of Ruwad, who signed the agreement on behalf of their respective organisations in presence of Ruwad’s deputy chairman and members of the board as well as a number of senior officials from both parties.
As per the agreement, the bank will finance the enterprises agreed with Ruwad and that meet the criteria stipulated in the agreement………………………………………..Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
Bahrain (KFH) signed an agreement with International Turnkey Systems (ITS) Group to deploy the latter’s Ethix Core Solution for Islamic banking which will provide new IT solutions to the bank’s financial services.
Abdulhakeem Alkhayyat, managing director and CEO of Kuwait Finance House-Bahrain, said: “ITS will support the optimization of our core banking systems and make it more efficient and cost-effective. This will enhance our services and will allow us to provide more distinctive and versatile solutions that meet market demands.”……………………………………….Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
Sharjah Islamic Bank (SIB) was honoured with ‘The Best Contribution to the Mediterranean by Islamic Bank’ award at the MIM Mediterranean Awards for Excellence 2012, held under the patronage of the President of Malta, H.E George Abela.
The awards aim to reward entities for their efforts towards the developments of the Mediterranean region in multiple fields. ……………………………………….Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
Qatar Islamic Bank (QIB) has announced that it received two awards for ‘Al Dhameen’ programme during the Global Entrepreneurship Week 2012 (GEW 2012), which took place at Doha’s Crowne Plaza Hotel from November 11 to 17.
In January 2011, QIB signed the ‘Al Dhameen’ accord with Qatar Development Bank (QDB). Al Dhameen is a finance programme for Small and Medium Enterprises (SMEs) designed to support and encourage businesses to start up and thrive………………………………………..Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
Dubai is reviving massive real estate projects as its economy recovers from a corporate debt crisis, but this time around, constraints on financing are likely to slow the pace of its building boom.
Sukuk (Islamic bonds) from Dubai have attracted massive demand, partly because of a huge supply/demand imbalance among cash-rich Islamic funds. So sukuk could play a big role in Dubai’s financing activities. However, bond market traders and investors said the Dubai government might not be able to raise more than roughly $3 billion through bond issues in a single year………………………………………..Full Article: Source
Posted on 28 November 2012 by Laxman | Email|Print
The takaful industry is capable of registering positive growth despite facing uncertain economic conditions, says Takaful Ikhlas Sdn Bhd, Business Operations Executive Vice President, Wan Mohd Fadzlullah Wan Abdullah.
He said although the regional economy at present was experiencing slow growth, the takaful industry was created to face all sorts of economic changes. “The opportunities for the takaful industry will always be good, irrespective of whether the economy is expanding or otherwise, as the service provided, is a need,” he said……………………………………….Full Article: Source
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