Non-bank lender Firstmac and banks rumoured to be preparing to issue Islamic bonds, or sukuk, will be beaten by solar panel and heating installer the Solar Guys. The company is part of the fast rise in demand for this form of finance, with issuance forecast to triple to $US900 billion by 2017, a report by Ernst & Young claims.
Sukuk is being promoted as ideal for Australia’s capital-intensive industries such as construction or mining, but tax rules and pricing are still limiting access. Some also see sukuk as a way to help meet the huge shortfall in infrastructure funding Australia is facing………………………………………..Full Article: Source

FWU AG Group (FWU), a Munich-based financial services company, recently issued a US$55,000,000 Sukuk – the first ever Sukuk issuance by a German corporate and the largest ever Sukuk from a European Corporate. This is also the first Sukuk to utilize a computer software programme and intellectual property rights under an Ijara structure.
FWU, which primarily offers global Takaful (Islamic insurance) solutions through strategic cooperation and distribution arrangements in Europe, the Middle East and Malaysia, entered into the transaction through the Dubai branch of its subsidiary FWU Dubai Services GmbH………………………………………..Full Article: Source

A key issue for the sukuk Islamic bank market in the region is the time that it takes to bring an issue to the market. That is the view of Thomson Reuters global head of Islamic finance Rushdi Siddiqui. “Malaysia has developed its sukuk market in a manner that an issue can be issued swiftly and that is something this region needs to be able to replicate,” he said. “A key issue here is to come to the market faster.”
He said that the sukuk market was currently where the eurobank market was in the 1960s and 1970s and it has to move forward and raise efficiency so that non-Islamic financial institutions will come to this market to raise money………………………………………..Full Article: Source

Nakheel Properties has made a AED210m (US$57m) payment to sukuk holders as part of its debt restructuring deal which repays trade creditors 40 percent in cash and 60 percent via the Islamic bond.
The sum takes the total amount paid to trade creditors to AED9.6bn (US$2.6bn) since November 2009, the developer said. The Dubai-based real estate firm also said that property prices in Dubai are starting to show signs of stability………………………………………..Full Article: Source

Saudi Arabia will probably boost its dollar-denominated debt sales next year amid more than $500 billion of expansion projects in the largest Arab economy, Deutsche Bank AG said.
Less than 30 per cent, or $2.5bn, of the kingdom’s record issuance Islamic bond sales this year were denominated in the US currency, data compiled by Bloomberg show. In the UAE, the second-largest Arab economy, the majority of sukuk offerings this year were denominated in dollars as Gulf yields drop to a record, the data show………………………………………..Full Article: Source

Wealth management will be the next area of development for Islamic finance. The availability of products and services for Muslim high net worth individuals is still limited. “There is a lot of wealth parked in the conventional space, especially in the GCC,” Standard Chartered Saadiq consumer banking global head Wasim Saifi said.
“This wealth could easily move into the Islamic space if customers can find a Sharia-compliant option that can provide them with a diversity of risk and manage it properly.” Banks would need to innovate to wean customers away from conventional banking towards Islamic finance………………………………………..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.
The total of all commercial banks’ Islamic assets is estimated to reach $1.55 trillion this year, $1.8 trillion in 2013 and over $2 trillion mark, the report said. Gulf-based Islamic banks now have $450 billion in assets, about 30 percent of the total………………………………………..Full Article: Source

HSBC’s decision this year to stop offering Islamic products in many of its markets has sent shock waves through the Gulf region, one of the global hubs for Islamic finance. The move underscored the difficulties facing even the largest conventional lenders that have tried to lure new customers to bank in compliance with Muslim sharia law.
While the Islamic finance industry is forecast to expand at a tremendous pace, a broader question is emerging as to how to make Islamic banking profitable………………………………………..Full Article: Source

Pre-tax profit at HSBC Bank Malaysia Berhad for the nine months ending September 30th was 18.6 per cent higher than in the corresponding period last year. Profit before tax for the period rose to MYR 1,193m [Malaysia Ringgit] (£242.27m), MYR 187m (£37.98m) more than in the same period in 2011.
Operating income grew to MYR 2,267m (£460.45), an increase of 9% compared to the corresponding nine months in 2011. This was mainly due to higher income from Islamic banking operations of MYR425m (£86.30) and increase in net interest income………………………………………..Full Article: Source

Islamic assets held by commercial banks are set to hit $1.8 trillion next year, partly spurred by growth in the Gulf region, according to research by Ernst & Young.
However, the profitability of the Islamic sector still lags behind that of conventional banking. Saudi Arabia is the biggest market for Islamic banking followed by Malaysia and UAE, according to Ernst & Young’s World Islamic Banking Competitiveness Report 2013………………………………………..Full Article: Source

BankDhofar is ready to launch ‘Maisarah’ Islamic Banking Services subject to the Central Bank of Oman (CBO) approval. ‘Maisarah’, meaning ease or comfort, will be a fully serviced Islamic window which will enable customers to access Sharia’a compliant products and services through its highly skilled Islamic banking division which was established at the start of the year.
An extensive feasibility study into Islamic banking was conducted by BankDhofar as a direct response to the Royal Decree issued by His Majesty Sultan Qaboos bin Said in order to ensure that the bank offers its customers a best in class Islamic banking experience………………………………………..Full Article: Source

South African banking group, Absa which will soon take-over Barclays Africa, has indicated it plans to start Islamic banking in Ghana and other African countries.
Absa sealed a £1.3 billion deal with Barclays December 6, 2012 to takeover the British bank’s Africa operations. The move will enable Absa to acquire the operations of Barclays in nine African countries including Ghana where it will take over 100% of the bank’s operation in the country………………………………………..Full Article: Source

Gatehouse Bank plc, a Shariah compliant investment bank based in London, was a key representative at this year’s “Karaganda Invest” forum, the third international investment forum for Kazakhstan’s Karaganda region. The main objective of this one-day conference is to attract foreign and domestic capital into the local economy, and the event was attended by more than 600 representatives of ministries and departments, heads of banks and financial institutions, leading international experts and lawmakers, as well as over 60 news outlets from around the world.
Ms Azeemeh Zaheer, Vice President at Gatehouse Bank, was a key speaker at the event, co-organised by CSME Global, joining a high profile panel comprising key officials from the Government of the Republic of Kazakhstan, including the Deputy Prime Minister and Minister of Industry and New Technologies, Mr Asset Issekeshev, and the Governor of the Karaganda region, Mr Abelgazi Kussainov. (Press Release)

Standard Chartered Bank has announced the launch of an Islamic version of its award-winning online banking platform, Straight2Bank. The enhanced platform expands client access to the Bank’s Islamic products by providing its growing Islamic customer base a secure online portal that is compliant with Shariah laws.
The existing Straight2Bank platform was enhanced to meet the needs of the Bank’s Islamic clients, presenting a convenient, branchless access channel to cash management, trade, securities services and reporting. (Press Release)

Dubai Islamic Bank (DIB) announced that it has been named “Best Sukuk Arranger” and “Best Private Bank” at the 2012 Islamic Business & Finance Awards, a leading event for the global Islamic financial community. The awards were received by Dr. Adnan Chilwan, Deputy Chief Executive Officer, DIB and reflect the bank’s sustained focus on playing a vital role in the nation’s economy.
Speaking at the awards ceremony, Dr. Adnan Chilwan, said: “From handling the issuance of Islamic bonds for organisations that are integral to the UAE economy, to providing exclusive and unmatched private banking services for our high net-worth customers, we continue to innovate and set higher benchmarks for the Islamic finance sector. DIB has been a pioneer in Sukuk issuance and Islamic banking products and services, in general, and we are very pleased to receive these awards for continuing to provide the best Shariah-compliant alternatives to conventional banking services on the market today. We take pride in leading from the front, and look forward to continued success for years to come.” (Press Rlease)

Tourism Development ‘&’ Investment Company (TDIC), the master developer of major tourism, cultural and residential destinations in Abu Dhabi, has signed an exclusive home finance deal with Abu Dhabi Islamic Bank (ADIB).
The deal means that potential buyers of villas at its newly-developed Saadiyat Beach Villas will be offered home finance worth up to 100% of the value of a property - to a maximum level of $8.2m (AED: 30m)………………………………………..Full Article: Source

Takaful Ikhlas Sdn Bhd aims to achieve RM66mil in contribution from its health insurance products for the financial year 2012/2013. This compares with RM41mil in the financial year 2011/2012.
“Our collaboration with the National Heart Institute (IJN) and several other hospitals, will act as a catalyst for our efforts in achieving the target through our ChoicePlus product,” executive vice-president Wan Mohd Fadzlullah Wan Abdullah said………………………………………..Full Article: Source

Prudential BSN Takaful Bhd (PruBSN), the country’s largest takaful operator by new business, has launched a new medical plan to address the need for a comprehensive health and medical coverage for all Malaysians.
Dubbed “Takaful Health2″, the plan is available with the company’s investment-linked products under the PruBSN Link Series plan. “Under the latest enhancement, customers may now choose the zero deductible option where all the eligible benefits under Takaful Health2 will be fully covered,” said PruBSN CEO Azim Mithani………………………………………..Full Article: Source