Kuwait Finance House’s Turkish operation, Kuveyt Turk, has applied for a German banking licence and aims to become the first Islamic bank in Europe’s largest economy, Chief Executive Ufuk Uyan told Reuters.
Kuveyt Turk - which issued a $350 million sukuk, or Islamic bond, last year - is waiting for a response from German financial watchdog BaFin, Uyan said. It hopes the application process will be completed next year………………………………………..Full Article: Source

The issue of the country’s Islamic banking system being in conflict with Syariah (Islamic law) requirements does not arise as any decision made has been referred to the Bank Negara Malaysia (BNM) Syariah Advisory Council.
Deputy Finance Minister Datuk Dr Awang Adek Hussin said this advisory council had high powers to ensure that the country’s Islamic banking system adhered to Syariah requirements, specifically over issues involving BNM’s financial system. “Members of the advisory council include the Penang mufti, three members of the National Fatwa Council, a former chief justice, local ulama and one from the Indonesian Council of Ulama………………………………………..Full Article: Source

A ground-breaking $1 billion Tier 1 hybrid sukuk from ADIB, sold in early November, opened the way for banks to use Islamic bonds to boost core capital. The sukuk was described as “hybrid” because it had equity-like characteristics; it was perpetual, meaning it had no maturity date.
The sukuk attracted about $15 billion of investor bids, a massive oversubscription, and ADIB was able to price it at a 6.375 percent profit rate, raising money very cheaply compared to conventional hybrid bonds issued by Western banks over the past year. The sukuk’s price has continued to rise in the secondary market since issue, showing very strong investor demand for it………………………………………..Full Article: Source

Sharjah Islamic Bank (SIB) has signed an agreement with Ruwad Establishment to facilitate enterprise finance. The signing ceremony was held at the bank’s headquarters and attended by HE Mohammed Abdullah, CEO of (SIB) 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

Capital Intelligence (CI), the international credit rating agency, announced today that it has affirmed Ahli Bank Qatar (ABQ)’s Financial Strength Rating (FSR) of ‘BBB’, on ‘Stable’ Outlook, on the basis of the recent increase in shareholders’ funds, sound asset quality, and good profitability.
The FSR is constrained by ongoing concentration risks, narrower than average interest differential, and the small Qatari banking market. The Bank’s Long and Short-Term Foreign Currency (FC) Ratings of ‘A-’ and ‘A2′, respectively, are affirmed based on the Qatari government’s demonstrated financial support for Qatari banks, and the ownership and management control by Ahli United Bank (AUB)………………………………………..Full Article: Source

As banks in much of the rest of the world struggle to shore up balance sheets ravaged by weak economies, banks in the Gulf are sucking in capital for a very different reason: To fund expansion plans. The contrast means the Gulf banks are likely to be able to raise money cheaply and relatively easily, helping them compete as they move into markets overseas and challenge some of the big international institutions.
“Our growth rates have been phenomenal in the last few years and because of that growth, we needed to refuel after a certain stage,” Tirad Mahmoud, chief executive of Abu Dhabi Islamic Bank (ADIB), said after his bank raised $1bn of capital this month………………………………………..Full Article: Source

Malayan Banking Bhd (Maybank) is counting on its new offering, which bundles together seven financial products, to help it capture more mass affluent customers as it looks to strengthen its retail banking leadership at home.
Mass affluent customers typically earn about RM3,000 a month and are one of the more profitable customer segments for banks. As it stands, 95 per cent of Maybank’s retail customer base comprises the mass afluent………………………………………..Full Article: Source

Path Solutions , the global provider of Islamic banking software, today announces that Banque Populaire de Mauritanie (BPM) has selected Path Solutions ‘ next generation iMAL as its Islamic Core Banking Solution to compete both functionally and technically on the national and international level.
The Banque Populaire de Mauritanie is 100 percent owned by Groupe Mauritanie Leasing, one of Mauritania’s largest financial services groups. After it had met all necessary conditions and requirements, the Group has received approval from the Central Bank of Mauritania to open the second Islamic bank in the country. (Press Release)

Qatar Telecom’s bond yields are set for the steepest monthly advance in almost two years as acquisitions by the Middle East’s second-largest phone company by revenue erode its cash holdings. The yield on the state-run company’s 2016 bonds, which are rated at Moody’s Investors Service’s sixth-highest investment grade of A2, has risen 20 basis points.
That contrasts with little change for the HSBC/Nasdaq Dubai’s Middle East Investment Grade US Dollar Sukuk/Bond Index………………………………………..Full Article: Source

Gulf International Bank (GIB), majority owned by the Saudi Arabian government, has picked six banks to arrange investor meetings ahead of a potential benchmark-sized, dollar-denominated bond, lead arrangers said.
Roadshows kick off today in the UAE, before meetings in Singapore and Hong Kong, and conclude on December 3 in London. Any bond following investor meetings will be issued under the bank’s recently-updated $4 billion euro ($5.2bn) medium term notes programme, the arrangers said………………………………………..Full Article: Source

Socially responsible investment (SRI), which is fast gaining currency in the global market place, will have a “significant appeal” to Islamic finance, particularly in the context of the recent global financial crisis, according to Bank Negara Malaysia (BNM) governor Tan Sri Dr Zeti Akhtar Aziz.
“Beyond financial returns, SRI also accords primary consideration to the impact on economic activity and on the broader society, thereby incorporating the important dimensions of environmental sustainability, social responsibility and governance………………………………………..Full Article: Source

Standard & Poor’s has assigned Saudi Arabia’s Weqaya Takaful Insurance and Reinsurance Company a BBB credit rating with a stable outlook.
Standard and Poor’s (S&P’s) affirmation on Weqaya Takaful Insurance and Reinsurance company’s credit rating is a result of the “ongoing and regular surveillance of Weqaya’s performance for the second year in a row by Standard & Poor’s (S&P’s) agency,” said a statement posted on the Saudi bourse………………………………………..Full Article: Source

Solidarity General Takaful, a subsidiary of one of the largest takaful groups in the world, Solidarity Group Holding, opened its largest insurance services centre in Muharraq. The centre was inaugurated by Central Bank of Bahrain executive director of financial institutions supervision Abdul Rahman Al Baker.
“We are delighted to announce the launch of our new Insurance services centre which can only strengthen our reach to be closer to our customers,” said Solidarity General Takaful chairman Saleh Hussain………………………………………..Full Article: Source