The Asian Development Bank (ADB) said Tuesday it will help grow access to Islamic finance in Afghanistan, Bangladesh,Indonesia, and Pakistan with a USD 750,000 technical assistance grant.
In response to requests for assistance from the governments of the four countries, the grant will be used, amongst others, to develop an e-module platform to build capacities of officials in those countries on prudential standards developed by the Islamic Finances Services Board (IFSB), the
Manila-based lender said……………………………………….Full Article: Source

BlackRock Inc. (BLK) and Ashmore Group Plc (ASHM) will receive a premium on their Dana Gas PJSC (DANA) sukuk holdings after the fuel producer finished an agreement to revamp $920 million of Islamic bonds. Dana shares soared 10 percent.
Dana Gas, which missed sukuk payments in October, said it will split $850 million of debt into convertible bonds and an ordinary sukuk and pay creditors $70 million in cash. The five-year convertible bonds will pay a profit rate of 7 percent and the ordinary sukuk 9 percent……………………………………….Full Article: Source

According to the Forecast Study conducted by Thomson Reuters and Zawya in November 2012 study, global captive sukuk demand is expected to double from $240 billion in 2012 to reach $421 billion by 2016. Supply is also forecasted to grow but the spread between demand and supply is expected to widen even further to more than $280 billion within the next four years.
As Thomson Reuters reported, on the demand side, investors expect 50 percent of their portfolios to be allocated to Islamic finance investments, out of which between $200 million and $800 million, or an average of 35 percent to 40 percent, would be allocated to sukuk………………………………………..Full Article: Source

Demand for sukuk, or Islamic bonds, is expected to almost double in value over the next four years, driven by strong economic growth in the Middle East and Asia and their spread to new markets, according to a report by Thomson Reuters.
Sukuk are Islamic investment certificates that pay returns on money invested, instead of interest, to obey Islam’s ban on interest. They are a major funding tool for both banks and corporates in the Islamic finance industry, which has its core markets in the Middle East and southeast Asia………………………………………..Full Article: Source

Over the past few years, Malaysia’s positive reputation among financiers in the Middle East, US, Europe and greater Asia has grown. Malaysia’s dedication to the Islamic finance market, strong and stable economy, and increasingly liquid local bond market are attractive to an expanding range of issuers and investors.
Islamic finance stands out among the many opportunities in Malaysia, and it continues to lead the world in Islamic finance development………………………………………..Full Article: Source

Islamic Bank of Britain plc (IBB), the UK’s only wholly Shari’ah-compliant retail bank, reported a 63 per cent increase in home financing and a 43 per cent increase in long-term savings deposits for the first three quarters of 2012.
Growth and demand, has been driven through the launch and development of new savings products, the IBB Home Purchase Plan and Buy to Let Purchase Plans, supported by effective sales and marketing strategies………………………………………..Full Article: Source

Financial instruments — cash, bearer bonds, etc. — in line with Islamic law or Shariah are predicted to hit $1.8 trillion (U.S.) globally by 2013, up 38.5 percent year on year, according to American corporate auditors Ernst & Young’s World Islamic Banking Competitiveness Report 2013 released Monday. But some wonder if this growth will help radical Islamist groups.
According to the report, the top 20 Islamic banks have registered an annual growth of 16 percent over the last 3 years………………………………………..Full Article: Source

Islamic banks are set to expand as they compete increasingly with conventional lenders in attracting mainstream customers, according to a report by consultancy Ernst & Young released on Monday.
Pakistan ranked 17 out of the 57 Organisation of Islamic Cooperation (OIC) Islamic finance markets in terms of assets, according to statistics from the OIC. Its total asset base is $6.8 billion or 7.7% of the total banking assets in March 2012, according to the State Bank of Pakistan………………………………………..Full Article: Source

Islamic banking in Bangladesh will celebrate Golden Jubilee in the year 2033 on the eve of its accomplishment of 50 year of banking. And the present shape of the Islamic Banking is being modernized in terms of this changing scenario forecasting on world economy in the year 2033.
Understanding realizing this importance, the central bank (Bangladesh Bank) of the country introduced the ‘Guidelines for Islamic Banking’. The central bank stated that as Islamic banking has become a part of mainstream banking in Bangladesh, it has become necessary to introduce the guidelines to bring greater transparency and accountability to the Islamic Banking………………………………………..Full Article: Source

Absa has been appointed Afzal Seedat to run its Islamic banking unit with effect from January. Seedat is currently head and executive director of Absa Trust Limited. Arrie Rautenbach‚ head of Absa Retail Markets‚ said Seedat’s appointment was in line with Absa’s approach to the development and promotion of internal talent.
“In order for us to effectively execute on our retail market priorities‚ we need to have strong leadership that has the necessary skills to successfully implement our strategy and achieve business objectives‚” Rautenbach said………………………………………..Full Article: Source

A start-up Islamic bank in Mauritania, Maurisbank, has opted for the core banking system of French supplier, SAB. The system, SAB AT, will be deployed on a Software as a Service (SaaS) basis and the implementation, starting on 2nd January 2013, is expected to take six months.
In selecting SAB, the bank has rejected a number of systems that are already live in the country, including Path Solutions’ iMAL, which supports Mauritania’s first Islamic bank and has recently clocked up second and third Islamic takers here, Banque Populaire de Mauritanie (BPM) and Bank Al Muamelat Assahiha………………………………………..Full Article: Source

The Association of the Luxembourg Fund Industry (ALFI) published a collection of best practices for setting-up and servicing Islamic funds to provide a greater level of understanding of a growing market sector.
Marc Saluzzi, chairman of ALFI, said: “2012 has been a very active year for the Luxembourg Islamic finance community with several new Shariah-compliant funds launched. Luxembourg currently ranks No. 5 worldwide and first in Europe in the number of Shariah-compliant domiciled funds, at 41 funds with €4 billion in assets under management.”……………………………………….Full Article: Source

American firms should aim for partnership with Bahraini Islamic financial institutions to tap into the sector’s lucrative growth opportunity. Islamic banks, which offer loans based on real, tangible assets, have seen more takers in the US following the subprime crisis.
“There hasn’t been sufficient interest from US institutions in terms of partnering with Bahraini Islamic finance companies,” US Chamber of Commerce chief operation officer and executive vice-president David Chavern said………………………………………..Full Article: Source

The quality of growth in Islamic finance is more important than merely its numbers, said an expert as the industry moves towards greater regional penetration and branches into frontier markets such as South Asia and Africa.
“The industry is still concentrated in a few core markets such as Saudi Arabia, Iran, Malaysia and the UAE,” Ernst and Young global Islamic banking centre partner Ashar Nazim said. “Islamic finance will be rolled out to new frontier markets such as Nigeria, Egypt, Iraq, Mauritania and Uganda, which are introducing legislations for the industry at this point.”……………………………………….Full Article: Source

Tourism Development & Investment Company (TDIC), master developer of tourism, cultural and residential destinations in Abu Dhabi, and Abu Dhabi Islamic Bank (ADIB), have launched an exclusive home finance scheme for high-end residential communities on Saadiyat island.
This scheme, which applies to purchases of the luxury Saadiyat Beach Villas, offers a simple home finance package for potential Saadiyat island residents that includes 100 per cent finance up to AED 30 million repayable over a period of 25 years with a competitive profit rate starting from 4.99 per cent………………………………………..Full Article: Source

Islamic Corporation for the Development of Private Sector (ICD), the private sector arm of the Islamic Development Bank Group (IDB), and The African Guarantee Fund (AGF) signed a Memorandum of Understanding (MoU) to collaborate in the development of the SME sector in ICD’s member countries in the Sub-Saharan Africa region.
As per the MoU, ICD and AGF will join forces to cooperate in the development of the SME sector in Africa particularly in the Sub-Saharan region through providing term financing, equity investment, lines of financing or guarantees………………………………………..Full Article: Source