Posted on 06 December 2012 by Laxman | Email|Print
A steady flow of women wearing hijabs, or Muslim head veils, enter HSBC’s Amanah branch in the Malaysian capital of Kuala Lumpur during lunch hour. It’s brisk business for the UK lender, which was one of the first global banks to offer Islamic finance - a field that is slowly starting to rival conventional banking in predominantly Muslim countries such as this one.
Islamic finance is based on gaining profits in a socially responsible manner. Each transaction is underpinned by real trade or business activities that do not involve anything forbidden under Sharia, such as gambling or alcohol………………………………………..Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
The Persian Gulf’s best-performing fixed-income fund manager says returns in the oil-exporting region may drop by about half in 2013 after a three-year rally drove yields and risk premiums to record lows.
Bonds and Shariah-compliant debt in the six-nation Gulf Cooperation Council have made 12 percent this year, bringing their total returns since 2009 to more than 34 percent, according to HSBC/Nasdaq Dubai’s GCC U.S. Dollar Sukuk/Bond Index………………………………………..Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
Capitalising on Malaysia’s lead in the Islamic financing market, CIMB Group Holdings Bhd is said to have held talks with Australia’s big banks about issuing the country’s first Islamic bonds.
The Australian newspaper reported that CIMB’s capital markets head in Sydney Michael Forde said major lenders Down Under could become the first Australian companies to tap Malaysia’s sukuk market next year as they sought ways to access the growing pool of cashed-up Muslim investors………………………………………..Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
SmartSukuk, a newly established Australian venture, will act as a conduit for Australian issuers to facilitate corporate bond issuance in the Malaysian capital market. Australian issuers should be paying greater attention to the Malaysian bond market given how vibrant it has become overtime since the implementation of its capital market masterplan (now in its second instalment) with particular focus on Sukuk issuance (an alternative bond instrument).
Malaysia accounts for approximately 70% of the global Sukuk issuance and even attracts issuers from the MENA region………………………………………..Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
On the funding side of an Islamic bank’s balance sheet, we are expected to find three types of equities - equity of musharakah, equity of mudharabah and equity of sukuk. Our approach to these equity types needs to be changed to respond effectively to Basel III reforms and benefit from and contribute to genuine Islamic finance.
With this spirit we suggest the perpetual participation sukuk within the framework of Basel III as additional tier-1 capital………………………………………..Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
Alkhabeer Capital, a Saudi Arabia-based investment advisory firm, plans to offer new shares worth about 30 percent of its capital in an initial public offering (IPO) on the local bourse by early 2014, its CEO said.
Alkhabeer, in which conglomerate Saudi Binladin Group is a top shareholder, is awaiting the regulatory nod to initiate the IPO process, CEO Ammar Shata said in Dubai………………………………………..Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
Early last month, Bank Negara Malaysia, together with the Ministry of Domestic Trade and Consumer Affairs and the Companies Commission of Malaysia (SSM), raided several gold trading companies with the help of the police. Among them were Genneva Malaysia Sdn Bhd, Pageantry Gold Bhd, Caesar Gold Sdn Bhd, Worldwide Far East Bhd and Bestino Group Bhd.
Genneva — probably the largest and the most high-profile of these companies — attracted much attention from the public and the media. Basically, these companies were raided as they were suspected of carrying out gold-trading schemes that the authorities claim were not sustainable………………………………………..Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
Sidra Capital (Sidra), a Saudi Arabia Capital Market Authority (CMA)-regulated Shariah- compliant financial services company and INOKS Capital SA (INOKS), an alternative investment house specialized in commodities financing in emerging markets and regulated by the Swiss Financial Market Supervisory Authority (FINMA), recently announced investments in various transactions by its jointly managed Sidra Ancile Global Structured Trade Finance Fund (STFIF) totaling $13.5 million.
STFIF, which was regulated under both the CMA and the Commission de Surveillance du Secteur Financier (CSSF) of Luxembourg, closed its first offering of subscription in September 2012 and have since approved investments in various transactions for its current assets under management………………………………………..Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
A new report by the Association of Chartered Certified Accountants (ACCA) and KPMG has called for standard setters and Islamic banks to work together to harmonise financial reporting. ACCA said the rapid global growth in Islamic finance meant that it must be reported in a way that was harmonised and more consistent.
“The report calls on the International Accounting Standards Board (IASB) and the Islamic finance industry to work together to develop guidance, standards and educate the investor community on key issues,” it said in a statement………………………………………..Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) is actively looking at revision of existing standards and to introduce new ones to keep abreast of the challenging requirements of industry in financial reporting.
“In 2012, AAOIFI issued a new standard for investment in real estate which will be effective from January 1,” KPMG Islamic Financial Services partner Mahesh Balasubramanian said………………………………………..Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
The focus of the two – day Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) World Bank Annual Conference in Bahrain was on the standardization of Shari’a, accounting, auditing, governance, ethics and risk management for Islamic finance, said Dr Khaled Al Fakih, AAOIFI Secretary General on the sidelines of the AAOIFI World Bank Annual Conference in Bahrain.
In an exclusive to Bahrain News Agency, he said that there were six sessions altogether at the conference, with three session covered on day one. The AAOIFI’s primary objectives is on standardization of Islamic finance practices………………………………………..Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
The Arab Spring has opened a new world with endless possibilities for young entrepreneurs of the region, said former deputy prime minister of Malaysia Tun Musa Hitam. “The younger demographic, especially, has the potential to bear great influence on the future of the world economy and can be harnessed through increased understanding of these opportunities which will boost investor confidence and resources they put into tapping this market,” Musa said.
It is estimated that Muslims have spent $2.1 trillion on the halal economy, $500-600 billion on food and halal related products………………………………………..Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
The Islamic finance industry is estimated to be worth $1.3tn and growing at an average of 20% a year. Malaysia is one of the leaders in in the industry because the government and banks work closely together.
But expanding Islamic finance beyond its borders is proving difficult………………………………………..Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
From a shariah perspective, it is necessary that any dispute under a shariah-compliant contract must be resolved in accordance with the principles of shariah which govern the relevant shariah-nominate contract.
This principle has been reiterated by International Fiqh Academy in its resolution on the subject of governing law for shariah-compliant transactions. Despite the resolution and the importance of the governing law for shariah-compliant transactions, the matter has not received any significant attention from stakeholders……………………………………….Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
Growing demand for executive programs are prompting the Islamic finance industry’s only dedicated university to expand into the Middle East and North Africa, the chief executive of the Malaysian institution said.
Kuala-Lumpur based International Centre for Education in Islamic Finance (INCEIF), set up in 2005 by the Malaysian central bank, plans to offer its programmes across several Arab Spring countries where Islamist parties have come into power………………………………………..Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
Jordan’s Islamic banking assets has grown at an annual rate of 13% and now accounts for 5% of the country’s total banking assets, though Islamic insurers have been more sluggish in their performance, according to a recent KFH-Research report on the Kingdom’s Islamic finance sector.
The report said that Islamic banks have outperformed conventional banks in the growth of deposits and financing, reflecting a strong demand for Islamic transactions. On the contrary, the report noted that takaful companies haven’t been performing as well, but things are expected to improve after recently receiving government backing for the growth of takaful in Jordan………………………………………..Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
It has been reported that the UHNW Islamic Banking Clients: A Growing Community, the report examines the current state of UHNW Islamic banking client population–complete with combined net worth– and provides a growth forecast of Islamic banking in traditional and non-traditional markets.
The report also gives an inside look into the profile of an average UHNW Islamic banking client in Southeast Asia and the Middle East and provides an outlook for professionals and Islamic banking institutions………………………………………..Full Article: Source
Posted on 06 December 2012 by Laxman | Email|Print
Noor Islamic Bank (Noor), a leading Islamic bank in the UAE, has announced the launch of its new product “Business Instalment Finance” package that will cater to the financial requirements of small businesses.
Small businesses that share an existing relationship with Noor Islamic Bank, can access loans at very competitive profit rates. The package includes fixed-term financing of up to Dhs750,000 for 48 months, with minimal documentation and processing time. (Press Release)
Posted on 06 December 2012 by Laxman | Email|Print
Khaleeji Commercial Bank (KHCB), one of the prominent Bahrain-based Islamic banks, has announced its launch of its new financing scheme for small and medium enterprises (SMEs) to enhance productivity and growth in the market to achieve economic development in Bahrain.
Silvan Varghese, Chief Operating Officer and Acting CEO, commented: “One of KHCB’s most vital objectives is to have a positive contribution to Bahrain’s economic development, and by providing a financing solution to SMEs and have an immense impact on Bahrain’s advancement. Tamkeen, being one of the national reforms and part of Bahrain Vision 2030, is tasked to support the development of Bahrain. We would like to thank Tamkeen’s collaboration with us in making this project available in the market, and become a provider to Bahrain’s economic growth.” (Press Release)
Posted on 06 December 2012 by Laxman | Email|Print
A.M. Best Europe – Rating Services Limited has assigned a financial strength rating of C++ (Marginal) and an issuer credit rating of “b” to Boubyan Takaful Insurance Company K.S.C. (Closed) (BTIC) (Kuwait). The outlook assigned to both ratings is positive.
The ratings of BTIC reflect its strong risk-adjusted capitalisation on a consolidated basis (shareholders’ and policyholders’ funds), sound, yet somewhat untested, distribution lines through its shareholders and the efforts currently being made by management to introduce best practices throughout the firm. (Press Release)
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