The Shari’ah-compliant funds industry may prove to be the dark horse of Islamic finance as it gains ground outside the Muslim world. The Islamic funds industry may still be dwarfed by the likes of Takaful, Islamic banking and Sukuk but, after a troubled start, it is finally coming into its own. However, it will take a long time for the industry to recover from its tough upbringing.
In 2007 173 funds were launched, then in 2008 the recession set in and the Islamic funds industry suffered alongside ailing Western markets, with the number of funds launched falling to 78. In 2009, that figure plummeted to just 29. Islamic equity funds, which make up 10 per cent of the market, returned 10 per cent in 2010, compared with the 15 per cent return on the global equity index and significantly less than the 22 per cent average of 2009………………………………………..Full Article: Source

75 per cent of the world’s UHNW (Ultra-High Net Worth) population who engage in Shari’ah-compliant finance is represented by UHNWIs in MENA, South Asia and Southeast Asia. By 2017, we expect an additional 960 UHNWIs to adopt Islamic banking, representing an average annual increase of 7.7 per cent.
With the global Islamic banking market forecast to exceed $2.6 trillion by 2017 there is immense potential in engaging UHNWIs who wish to invest in Islamic finance………………………………………..Full Article: Source

After the inception of Islamic banking in Bangladesh in 1983 there was a consistent growth and today out of 47 commercial banks in Bangladesh 7 are full-fledged Islamic banks. In addition, 15 other regular commercial banks and two foreign banks are offering Islamic products through their Islamic banking branches/windows.
Currently, the combined share of Islamic banks accounts around 25 per cent of the total banking market of Bangladesh. Thus, Islamic part of banking sector contributing greatly in the development of national economy. Special contribution of Islamic banks is the inclusion of those un-banked in the banking sector who kept themselves away from the conventional banking system because of Riba or interest. ……………………………………….Full Article: Source

Malaysia is the only Muslim country offering Islamic banking and finance services extensively, from the pawn system to sukuk issuance. It is among the country’s leading edge which resulted from Umno’s efforts in championing Islam, Umno president Datuk Seri Najib Tun Razak said.
“We are proud for a global forum has recognised Malaysia’s success as the world’s leading Islamic financial centre,” he said………………………………………..Full Article: Source

The banking sector could grow at double the country’s gross domestic product (GDP) rate in 2013 based on strong third-quarter (3Q) growth this year and various projects under the Economic Transformation Programme (ETP) that will be implemented, says Malayan Banking Bhd (Maybank) president and chief executive officer Datuk Seri Abdul Wahid Omar.
The products offered are savings, financing and insurance which are under conventional banking model and it is planning an early 2013 offering of Islamic banking products………………………………………..Full Article: Source

Barwa Bank’s newly launched The First Investor GCC Equity Opportunities Fund attracted nearly QAR 90 million during its first month of subscription. Going forward, subscriptions will be on a monthly basis.
The Shari’ah-compliant fund, launched at the end of September, has started investing in equities and equity-related securities listed on exchanges within the Gulf Cooperation Council countries………………………………………..Full Article: Source

Fitch Ratings Lanka has downgraded the Housing Development Finance Corporation Bank of Sri Lanka’s (HDFC) National Long-Term Rating to ‘BBB(lka)’ from ‘BBB+(lka)’. The Outlook is Stable. Its LKR195m outstanding senior unsecured redeemable debentures have also been downgraded to ‘BBB(lka)’ from ‘BBB+(lka)’.
The downgrade reflects the bank’s inability to swiftly re-price its existing housing loan portfolio to avert deterioration in profits as market interest rates started to rise since end-2011………………………………………..Full Article: Source

Birmingham-based Islamic Bank of Britain plc (IBB), is bringing the final leg of its national ‘Sharia Finance Question Time’ tour to Birmingham on 5th December 2012. The event, open to all members of the local community, will be held at Islamic Bank of Britain, 394 Coventry Road, Small Heath, Birmingham, B10 0UF from 6.00 pm – 7.30 pm.
‘Sharia Finance Question Time’ will be hosted by Kashif Mehboob, Deputy Branch Manager at Islamic Bank of Britain in Birmingham. It will consist of an informal debate giving attendees the opportunity to pose their questions to Samir Alamad, IBB’s dedicated Sharia Compliance Officer and a trained expert in Islamic finance………………………………………..Full Article: Source

Mention microfinance and immediately Nobel laureate Mohammad Yunus and his successful Grameen Bank in Bangladesh comes to mind. Little is known of the microfinance sector in Palestine, inspired by Yunus, but when Faten (Palestine for Credit & Development) won the Grameen Jameel Leadership Award for 2012, “for having demonstrated leadership in its local sector, client retention, human resources, new product offerings, poverty focus and operating in a difficult environment”, the focus turned to Anwar Jayosi, the Palestinian equivalent of Yunus.
“We operate on loans obtained from the World Bank and various European Banks, and, to some extent, local banks.” Jayosi says. “We’ve adopted the Islamic banking system so as to provide each borrower with a tailor-made service”………………………………………..Full Article: Source

Idealratings with its widespread network of clients in more than 15 countries and MCG LTD as a prominent Sharia financial advisory firm in the Sub Saharan Africa region with an extensive experience in the Islamic Finance arena signed a partnership agreement to offer Sharia Services Cooperation (SSC) to the financial institutions in the Sub Saharan Africa market.
The new partnership will be offering Shariah advisory services through Mash Consulting expertise as well as IdealRatings Shariah screening and purification state of the art services.(Press Release)

GCC bond sales jumped to a record this week after International Petroleum Investment (Ipic) seized on low borrowing costs to raise US$2.9 billion in the region’s biggest corporate offering this year.
Debt issuances in the GCC, which supplies about a fifth of the world’s oil, reached $37.4bn after the Abu Dhabi state-owned energy investor Ipic sold dollar and euro-denominated notes. That took regional sales almost 4 per cent above the previous record in 2009, according to data compiled by Bloomberg. Ipic’s offering topped the $2bn raised by Qatar National Bank this year………………………………………..Full Article: Source

MARC has assigned a final rating of AA-IS with a stable outlook to Weststar Capital’s (Weststar Capital) MYR 900 million Sukuk Mudharabah Programme upon the receipt of final documentation for its forthcoming issuance.
The terms and conditions of the Sukuk Mudharabah Programme remain substantially unchanged from the draft documents on which the earlier preliminary rating of AA-IS was based………………………………………..Full Article: Source

More innovative products are being offerred by banks which are still keen to lend despite tightening of lending policieser. Islamic Lending will also become another powerhouse in the Banks’ lending arena. You can see that today, Islamic banking is getting a lot of attention by the Government. More and more people are also taking up Islamic loans nowadays.
Islamic Loan packages have evolved and have gone through a lot of improvements compared with 10 years ago. Gone are the days when Islamic Interest rates are fixed in nature………………………………………..Full Article: Source

Aman Union members have contributed 17.4 billion in investment and export insurance for OIC countries this year, said its Secretary-General Dr. Abdel-Rahman Taha.
“The insurance support given by the union this year is 17.6 percent more than that of 2010 when it gave 15.06 billion,” he pointed out. Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is an affiliate of Islamic Development Bank………………………………………..Full Article: Source

Sri Lankan Takaful insurance industry is exhibiting a tremendous growth potential. With the entry of various banks as Sri Lanka’s first fully fledged Islamic Bank & two commercial banks in 2011, the industry is showing a promising market for Takaful insurance, as most of the need for General insurance still stems from the banking and finance industry. At present, Amana Takaful is Sri Lanka’s only takaful insurer. On the back of more and more acceptance among the consumers coupled with rapid economic growth and sizable underinsured population, takaful insurance market is anticipated to attain a significant growth in future.
Insurance Industry in Sri Lanka is dominated by general insurance segment that witnessed 23% growth in its gross written premium in 2011, compared to the previous year. The industry is expected to grow at a significant rate in the coming years with gross written premium (GWP) growing at a CAGR of around 21% during 2012-2015. (Press Release)