Islamic finance is poised to expand over the next 10 to 15 years after surpassing the trillion-dollar mark in 2012, said Minister for Finance Tharman Shanmugaratnam at the World Islamic Economic Forum in Johor Bahru, Malaysia.
Mr Tharman, who is also Singapore’s Deputy Prime Minister, said that he was optimistic about the potential for the sector after it chalked up growth of about 19 per cent a year since 2006. This has lifted total Shariah-compliant assets to nearly US$1.3 trillion in 2012………………………………………..Full Article: Source

The Islamic finance, which continues to gain recognition from outside the Muslim world, has tremendous potential to be developed further, Prime Minister Datuk Seri Najib Tun Razak said Tuesday.
He said Islamic finance was more reflective of the real economy, less speculative, provides a long-term partnership and stability and was a good source of financing………………………………………..Full Article: Source

Islamic Finance is set to offer significant opportunities for growth and diversification in the next 10 to 15 years, says Singapore Deputy Prime Minister and Minister for Finance, Tharman Shanmugaratnam.
Shanmugaratnam, who is Minister for Finance, said he is optimistic about its prospects firstly because Islamic financial institutions have in the main escaped significant damage in the global financial crisis………………………………………..Full Article: Source

Tharman Shanmugaratnam suggests weakness and deleveraging in conventional banking systems gives Islamic finance an opportunity to expand. Islamic finance is well-placed to grow and diversify, Tharman Shanmugaratnam, the chairman of the Monetary Authority of Singapore, said.
Despite estimated annual growth of 19% a year since 2006 there was still “considerable scope” for the industry to grow, Shanmugaratnam said, as conventional banks deleverage, trade rebalances towards Asia, and consumers look for “back-to-basics” finance………………………………………..Full Article: Source

Islamic financing is a “very feasible” model for funding major projects and will benefit Brunei’s economy. Shazali Sulaiman, a local partner at KPMG (a global network of professional firms specialising in financial services), and a speaker at yesterday’s Islamic Finance News (IFN) Roadshow at the Empire Hotel and Country Club, said Islamic syariah-compliant financing for major projects would be good news for Brunei.
“It will benefit Brunei because we are using local banks and international banks, which are working together to come up with the structure of the financing, and that will help develop a more established Islamic capital market in Brunei later on,” Sulaiman said………………………………………..Full Article: Source

Indonesia is the world’s most populous Muslim nation, with close to 90% of the 250 million population Muslim. Although the country is secular, Islam plays a big role in daily life. Analysts say over the last few years there has been a marked increase in the piety of Indonesian Muslims.
This has been reflected, they say, in the way people dress, how much more regularly they go to the mosque - even in the way they choose to bank. This increased piousness has led to a demand for the services of Islamic or Sharia banks in Indonesia……………………………………….Full Article: Source

Liquidity management is a critical area for both conventional and Islamic financial institutions. The importance of liquidity management has been further highlighted through lessons from the recent global financial crisis, including that all financial institutions must not over-rely on leveraging, said the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) secretary general and chief executive Dr Khaled Al Fakih.
He went on to outline Islamic finance mechanisms which, he said, “…can be used by Islamic financial institutions to obtain liquidity from their investment account holders and depositors, including current account holders, and to mobilise such liquidity for financing and investment………………………………………..Full Article: Source

It has been reported that Islamic finance must be inclusive and accessible to all particularly the lower income groups 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 Azizsaid.
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………………………………………..Full Article: Source

Indonesia’s decision to cut sukuk sales as much as 12 percent in 2013 will extend the decline in rupiah yields from a record-low, according to Manulife Asset Management Indonesia and CIMB-Principal Asset Management.
The finance ministry will offer less than the Rp 57.1 trillion ($5.9 billion) of Shariah-compliant bonds sold in 2012 and at least Rp 50 trillion, Dahlan Siamat, Islamic finance director at the debt management office, said………………………………………..Full Article: Source

The Egyptian Financial Supervisory Authority (EFSA) has finalised a draft law to regulate Shari’a compliant debt tools (sukuk); the proposed law includes 30 articles setting a legal framework for the issuance and transaction of sukuk.
The law aims to expand the scope of activities that sukuk can finance and allow the issuance of business sukuk, whose holder agrees to contribute to the capital of the partnership in equal or varying amounts to establish a new project or share in an existing one, the holder is then considered as partner, not creditor………………………………………..Full Article: Source

NCB Capital, Saudi Arabia’s largest asset manager, is launching a range of Irish-domiciled Islamic mutual funds, as it seeks to broaden its investor base and appeal to emerging market investors, according to senior executives.
The Jeddah-based firm, which manages $12.1 billion in assets, has launched two funds which invest in Saudi Arabian and GCC (Gulf Cooperation Council) equities, with plans to launch other funds including one that will invest in sukuk, or Islamic bonds………………………………………..Full Article: Source

The National Bank of Abu Dhabi (NBAD), the Number One Bank in the UAE, declares that the NBAD Sukuk Income Fund has returned 4.78% since inception and will distribute 1.76% dividend payment toinvestors.
This is NBAD Sukuk Income Fund’s first payout since it was launched six months ago and all registered holders of the Fund on November 28, 2012 are eligible for the dividend distribution. The distribution will equal 1.76% of the Fund’s net asset value (NAV) as of November 29, 2012 (1.84% based on the initial NAV of US$5) and equals to a total return of 4.78% since its inception……………………………………….Full Article: Source

Cagamas, the Malaysian National Mortgage Corporation, has announced the issuance of MYR 125 million multi-tenured debt securities comprising Sukuk Commodity Murabahah and Conventional Medium Term Notes (CMTNs) of MYR 90 million and MYR 35 million respectively.
Issued in benchmark 3, 5, 7, 10, 12 and 15-year tenures at respective yields of 3.35 per cent, 3.50 per cent, 3.75 per cent, 3.90 per cent, 4.00 per cent and 4.14 per cent or equivalent to a 31 basis points to 45 basis points range above comparable Malaysia Government Securities (MGS), the debt securities attracted strong demand from a diverse investor base resulting in an oversubscription rate of 2.2 times………………………………………..Full Article: Source

Abu Dhabi National Energy Co (TAQA) is preparing to price a two-tranche dollar-denominated bond issue, maturing 2018 and 2023, after roadshows conclude on Tuesday, arranging banks said.
TAQA, which is 75-percent owned by the Abu Dhabi government, joins Gulf International Bank in pricing new issues as regional borrowers line up to get deals away before investors close books for the year………………………………………..Full Article: Source

Adira Dinamika Multi Finance, Bank Danamon Indonesia’s financial unit, plans to sell Rp 2.5 trillion ($104 million) worth of bonds in the first half of next year in order to expand its business.
Dewa Made Susila, Adira’s chief financial officer, said that the company wanted to strengthen its lending capabilities for consumers seeking to purchase cars and motorbikes. “We plan to issue Rp 2 trillion in conventional bonds and Rp 500 billion of sukuk [Islamic bonds] in the first half of 2013,” Made said in a text message to the Jakarta Globe on Monday………………………………………..Full Article: Source

Islamic finance has become a force to be reckoned with in the world of commercial banking. As part of a week long series we report from Indonesia, where Islamic banking is thriving as more young Muslims look for alternative, and more religious ways, to borrow and save their cash.……………………………………….Full Article: Source

The growth of Islamic (sharia) banking industry in 2013 is predicted to be higher than this year, according to bankers. To encourage the industry growth, sharia banking will also get some leeway in multiple licenses.
Nasirwan, Deputy Director/ Head of Islamic Banking Division of Research Department at Bank Indonesia, said the outlook for Islamic banking industry next year will be better than this year. In the period of January to the third week of November 2012, the financing of Islamic banking industry grew by 35 percent to Rp 138 trillion………………………………………..Full Article: Source

2013 sees the start of Maurisbank, which aims to bring superlative Islamic banking services to discerning private and corporate clients in Mauritania. Because of its vision Maurisbank has chosen SAB as its partner, not only for the technology platform but also for the Islamic banking expertise SAB provides.
The contract between Maurisbank and SAB was signed in Nouakchott recently by Mr. Ahmed Ould Megaya, President and principal shareholder of Maurisbank, and by Mr. Henri Assaf, the General Manager of SAB Group, in the presence of Mr. Mohamed Limame, General Manager of SAB Tunisia………………………………………..Full Article: Source

The Islamic Corporation for the Development of the Private Sector (ICD) recently hosted a meeting with shareholders for a new national home finance company being launched under the brand name of Bidaya.
The meeting was held at ICD headquarters to discuss the status of Bidaya’s development and to plan and agree upon on crucial next steps leading to the company’s launch, a statement from the private sector arm of the Islamic Development Bank Group said………………………………………..Full Article: Source

The Islamic Banking and Finance Institute Malaysia (IBFIM) has won three awards this year for achievements in and contributions to Islamic finance.
IBFIM is an industry-linked business entity under Bank Negara Malaysia, and provides Islamic finance professional development; Shariah advisory, audit and screening; and knowledge management services………………………………………..Full Article: Source

Ernst & Young announced the appointment of Shahid Jabbar Mughal as Senior Manager to its Islamic Financial Services team in Oman.
The Islamic Financial Services team caters to the specific needs of both Islamic and conventional financial institutions requiring Islamic financial advisory services, working across sectors and advising on banking, capital markets, insurance/takaful, asset management, regulatory and government matters………………………………………..Full Article: Source

Moody’s Investors Service has today assigned a first-time Ba1 insurance financial strength rating (IFSR) to T’azur Takaful Insurance Company K.S.C.C. (T’azur), based in Kuwait. The rating outlook is stable.
T’azur is a Takaful insurer based in Kuwait and was established in 2007. It writes a mix of non-life, health and takaful life insurance. Moody’s Ba1 rating reflects T’azur’s good market position within the domestic Takaful market, with a market share of around 8% and 5th position in terms of Takaful contributions………………………………………..Full Article: Source