The Islamic insurance industry has demonstrated substantial growth in recent years with gross written premiums (GWPs) estimated to reach $12 billion in 2012, said an expert. This growth will be coupled with a compound annual growth rate of up to 25 per cent, added Dr Metaib Al Rawqi, CEO of Saudi Arabia-based Weqaya Takaful Insurance and Reinsurance Company.
Al Rawqi was speaking ahead of the seventh International Takaful Summit (ITS) set to take place on February 18 and 19 at the InterContinental CityStars Cairo and expected to attract participation from over 25 countries………………………………………..Full Article: Source

Saudi Arabian Mining Co. (Ma’aden), which has an aluminum joint venture with Alcoa, raised SR9 billion ($2.4 billion) through an Islamic loan facility to help fund its future projects, it said in a statement Tuesday.
The murabaha-structured revolving credit facility has a life of five years and was increased from the SR7 billion initial target amount which the bank announced in June, Ma’aden said. A murabaha is a Shariah-compliant cost-plus-profit arrangement………………………………………..Full Article: Source

Islamic finance continues to grow as a prudent alternative to conventional debt-based structures. Financial assets total more than US$1.3 trillion and instruments are expanding into new countries beyond its traditional markets in the Middle East and Malaysia.
At its core, Shariah principles favour the development and sharing of risk in physical assets, which contribute to the economic growth of society. There is therefore a natural match between the Islamic finance model and the acquisition and development of real estate assets. Moreover, Islamic finance is a flexible tool which can be used for a wide range of real estate financings………………………………………..Full Article: Source

The assets of Islamic banking in Indonesia will continue their rapid growth next year despite Bank Indonesia’s more stringent rules, according to a central banker. Bank Indonesia required the country’s shariah-compliant lenders to increase the down payment for auto and housing purchases, according to a central banker.
“The global economy is expected to recover and the domestic economy is going to remain positive, providing a conducive business environment for domestic banking,” said Halim Alamsyah, a deputy governor of Bank Indonesia………………………………………..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.
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. Islamic banks will grow as they focus on customers who expect more than just sharia-compliance in terms of products and service and have traditionally relied on conventional banks………………………………………..Full Article: Source

Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, recorded a momentous year in 2012, bracing itself for innovative Islamic banking operations, subject to approval from the Central Bank of Oman.
With the Royal Decree issued by His Majesty Sultan Qaboos bin Said, establishing Islamic banking operations, Meethaq is well positioned to provide Islamic financial expertise to diverse segments and thereby promote the good of society as a whole………………………………………..Full Article: Source

Noor Islamic Bank (Noor), has announced the launch of a unique home finance package with a fixed profit rate for two years, which insulates customers from any EIBOR* (Emirates Interbank Offered Rate) fluctuation during the period.
Noor’s home finance package, which is available to both Muslims and non-Muslims, provides up to 85% finance to the value of Dhs10m for a period of up to 30 years. The profit rates start from 4.75% for all types of transactions. (Press Release)

Abu Dhabi -based Al Hilal Bank joined international discussions on the state and future of Islamic banking during the World Islamic Banking Conference (WIBC) held recently in Bahrain. More than 50 countries were represented and over 1,200 industry leaders and 65 strategic partners, sponsors and exhibitors in attendance to provide a global perspective on Islamic banking and finance.
A Platinum Strategic Partner of WIBC - the world’s largest forum for Islamic financial leaders - Al Hilal Bank actively participated in talks on the dramatic growth of the global Islamic finance sector, which is estimated to be worth more than $1 trillion. (Press Release)

United Arab Bank (UAB), UAE’s fastest growing bank has opened its latest branch in Matajer Mall - Juraina, Sharjah that coincided with the inauguration of the mall.
The occasion was graced by His Royal Highness Sheikh Sultan bin Mohammad bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah and Chairman of the Executive Council and His Excellency Majid Al Futtaim, Founder and President of Majid Al Futtaim Holding. The event was also attended by senior management of the bank. (Press Release)

Imran Maqbool, a former Bank of America’s official, took the held of the MCB Bank as the banks’ president and Chief Executive Officer, it emerged Tuesday. After securing approval of the State Bank of Pakistan, Maqbool would be taking his new charge from the 22nd of this month, said a bank official.
“This is to inform you that State Bank of Pakistan has granted, in-principle, approval for the appointment of Mr. Imran Maqbool as President/CEO of MCB Bank Limited,” Abdus S. Sami, MCB’s company secretary, told the bank’s shareholders at the country’s three stock exchanges………………………………………..Full Article: Source

Banque Saudi Fransi, which is part-owned by Credit Agricole, will close a 1.9 billion riyals ($506.6 million) Lower Tier 2 Islamic bond issue on Tuesday, a source familiar with the matter said.
The subordinated sukuk will boost Banque Saudi Fransi’s supplementary capital reserves, or Tier 2 capital. Bonds and sukuk issued to raise Tier 2 capital are usually classed as subordinated debt, meaning they would be below secured creditors in the event of any restructuring………………………………………..Full Article: Source

The Gulf Bond and Sukuk Association (GBSA), the trade association representing the Arabian Gulf fixed income market announced a new Chair of the association’s Steering Committee at its annual dinner held in Dubai yesterday. The GBSA also announced the creation of a sub-committee to further promote asset management within the region as well as the launch of a new Islamic Finance Practice Group.
Giambattista Atzeni, Senior RM Corporate Trust MENA and Turkey for BNY Mellon, has been named the new Chair of the GBSA Steering Committee for 2013, succeeding Andrew Dell , Head of Central and Eastern Europe Middle East Africa Debt Capital Markets and CEO Africa for HSBC………………………………………..Full Article: Source

Malaysia Airlines (MAS) is in no rush to issue the third tranche of its sukuk programme, says Chairman Tan Sri Md Nor Yusof. “We don’t need the funding for now,” he said during the visit of International Trade and Industry Minister Datuk Seri Mustapa Mohamed to MAS-GMR Aerospace Engineering Company Ltd’s maintenance, repair and overhaul facility in Hyderabad, India.
The recovery plans are in place already and going on well. “We will do it when the need arises,” he said when asked when MAS would issue its next sukuk………………………………………..Full Article: Source

The Central Bank of Bahrain (CBB) announces that the monthly issue of the short-term Islamic leasing bonds, Sukuk Al-Ijara, has been subscribed by 100%. Subscriptions worth BD20m were received for the BD20m issue, which carries a maturity of 182 days.
The expected return on the issue, which begins on 20 December 2012 and matures on 20 June 2013, is 1.10%. The Sukuk Al-Ijara are issued by the CBB on behalf of the Government of the Kingdom of Bahrain………………………………………..Full Article: Source