The merger of three Bahrain-based Islamic banks has been completed to create a new financial institution with total equity of about $340m, it was announced on Monday. KFH-Bahrain, which acted as transaction and lead advisor to the deal, said the new entity would also have assets totalling more than $400m spanning the Middle East and North Africa, Europe and Asia.
Capivest, Elaf Bank and Capital Management House were given the green light to merge after the extraordinary general meetings of the three banks approved the deal last year………………………………………..Full Article: Source

At the end of 2012, the Egyptian economy is in a shambles, having worsened considerably over recent months. With a budget deficit expected to reach some LE200 billion and dwindling foreign reserves of $15 billion, the government is exploring all the options available to bridge the financing gap, including a $4.8 billion IMF loan that is currently on hold.
One such option is the issuing of sukuk, or Sharia-compliant Islamic bonds, and the country’s Islamist forces have been throwing their weight behind the issuing of these bonds, claiming that they offer the country a way out of its economic plight………………………………………..Full Article: Source

The final draft of a sukuk law has been sent to the finance ministry before it will be examined by parliament according to the head of the Egyptian Financial Supervisory Authority (EFSA) Ashraf ElSharkawy.
ElSharkawy said social dialogue with political parties and economic associations was the aim of the government and not the EFSA, which is an independent entity and can be approached by political entities but not vice versa, state-owned MENA reported Monday………………………………………..Full Article: Source

The Shura Council has not officially received yet the bill on Islamic Sukuk (bonds) from the government and would draft one if a delay was made in the government’s presentation, said chairman of the council’s financial committee Mohamed el-Fiqqi. On Saturday 6/1/2012, the Finance Ministry refuted accusations by two Islamist Parties on its draft law on issuing Sukuk.
The ministry denied that the bill has loopholes that allow people to acquire state-owned property for Sukuk without confining this to usufructs as alleged by the Muslim Brotherhood”s Freedom and Justice Party and Salafist Al-Nour Party………………………………………..Full Article: Source

Dubai’s Nakheel issued an Islamic bond worth 121 million dirhams ($32.94 million) on Monday, the third tranche of a sukuk that forms part of the developer’s billion-dollar restructuring plan.
The bond will go towards part settlement of trade creditor claims against the company worth around 5.3 billion dirhams. This tranche takes the total amount of sukuk issued to 4.15 billion dirhams, Nakheel said in an emailed statement………………………………………..Full Article: Source

Dubai Financial Market (DFM) has launched the draft of its ‘Standard for Issuing, Acquiring, Trading Sukuk’ on its website. The exchange invited various Islamic finance professionals to counsel and feedback on the first of its kind comprehensive standard.
The consultation period will be concluded on February 28, 2013, ahead of a hearing session to be held early March and eventually issuing the standard later in the same month………………………………………..Full Article: Source

Malaysian construction company Eversendai Corp Bhd will issue RM500 million worth of Islamic bonds, or sukuk, after getting approval from the securities commission, the firm said.
Eversendai, which focuses on construction jobs in the Middle East, said it has mandated Standard Chartered Saadiq Bhd as the principal adviser, lead arranger and the lead manager for the seven-year sukuk programme………………………………………..Full Article: Source

Proposals to issue sukuk and other Islamic financial instruments in the Omani banking sectorare now in the public consultation stage, according to a statement released by the Capital Market Authority (CMA). The CMA has recently completed a set of regulatory draft provisions to be considered by the government, licensed companies, law firms, audit firms, academics, professional parties and the public following the announcement last year by the Omani government to introduce Islamic finance.
The draft proposals come at a time of increasing investor demand for these products as banks seek to manage their liquidity. Oman is currently the only country in the Gulf Cooperation Council (GCC) yet to introduce Islamic finance………………………………………..Full Article: Source

The Nigerian Stock Exchange (NSE) has witnessed a number of stimulating initiatives in 2012, initiatives designed to encourage growth in capital market activities and give the market depth. For instance, market makers were finally introduced early in the year to provide liquidity, following on the heels of an exchange traded fund, ABSA NewGold, introduced late last year as “cost-effective diversification opportunities for investors”.
In April 2012, The stock exchange signed on with NASDAQ OMX to upgrade its trading platform early in 2013, The NSE Lotus Islamic Index was launched to track Shariah-compliant stocks, listing rules were revised, and recently, the central government stopped value added tax (VAT) and stamp duties charged on market transactions……………………………………….Full Article: Source

Kuwait Finance House-Bahrain (KFH-Bahrain) announced Monday the successful closing of the merger between three Bahrain-based Islamic banks, Elaf Bank, Capital Management House and Capivest, creating a strengthened financial institution with a total equity of approximately $340 million and total assets in excess of $400 million spanning the Middle East and North Africa, Europe and Asia.
As Transaction and Lead Advisor, KFH-Bahrain, after having initiated discussions with the three banks in late 2011, worked closely with them to create a robust merged entity that is able to better compete in the dynamic and growing global Islamic banking and investment industry………………………………………..Full Article: Source

The possible takeover of Birmingham-based Islamic Bank of Britain has moved a step further with the board confirming it is in direct negotiations with its would-be purchaser. The bank said it was now holding talks with Masraf Al Rayan (MAR) regarding a possible offer for the whole of the issued share capital of IBB.
IBB said before Christmas that while it had not received a direct approach from MAR, its main shareholder Qatar International Islamic Bank (QIIB) was progressing talks with MAR regarding the sale of its IBB shares, which represent 88.41% of the Birmingham bank’s issued share capital of IBB………………………………………..Full Article: Source

Bank Alfalah, has surpassed the centennial branch mark with the opening of its 100th branch at Bokhari Commercial, DHA Phase VI, Karachi. Today, the Bank boasts a nation-wide network of 110 Islamic banking branches and is ranked the no.2 Islamic Bank in Pakistan.
Bank Alfalah’s Chief Executive Officer, Atif Bajwa said, ‘We are pleased to cross the century mark for our Islamic Banking branches - this is a major milestone for the Bank. Since inception in 2003, Bank Alfalah’s Islamic banking has evolved into a vibrant entity………………………………………..Full Article: Source

Dhaka Bank Ltd (DBL) Monday launched three new Islamic deposit products as the brand name ‘Tawfeer’ under its Islamic Banking Division. The new products are: Tawfeer Mudaraba Savings Bond Account, Tawfeer Mudaraba Deposit Pension Scheme, Tawfeer Mudaraba Foreign Remittance Account.
Prof Moulana Muhammad Salahuddin, Khatib of Baitul Mukarram National Mosque, M Azizul Huq, chairman of Dhaka Bank Shariah Supervisory Committee, and Khondker Fazle Rashid, Managing Director of the bank together launched the products at a city hotel………………………………………..Full Article: Source

Arcapita Bank has sold its interests in five retirement homes outside London, as the Bahraini investment bank liquidates assets to raise money for its creditors. Arcapita and its investors sold the 80 per cent ownership in the property to Health Care REIT, a publicly traded property investment trust in the United States, it said in a statement. It invested in the property in 2003 through a joint venture with Sunrise Senior Living, the statement added.
Arcapita, which manages property and other investments that it says are Sharia-compliant, had assets of US$3.06 billion (Dh11.24bn) and liabilities of $2.5bn when it sought Chapter 11 protection on March 19, 2011………………………………………..Full Article: Source

At its regular session the Board of Executive Directors of the Islamic Development Bank resolved to submit a memorandum on the fifth general increase in the Bank’s authorized and subscribed capital to the annual meeting of the IDB Board of Governors scheduled to take place in Dushanbe, Tajikistan, during 21-22 May 2013.
The Bank reports that an increase in the IDB capital aims to enable to bring comprehensive development in member countries and Muslim communities in non-member countries………………………………………..Full Article: Source

The Malaysian takaful sector is expected to grow by 20% per year for the next two years as consumer acceptance grow and regulatory changes provide infrastructure for syariah-compliant insurance.
According to an industry report by OSK Investment Bhd, more people and companies will buy into takaful products, providing liquidity in sukuk and syariah-compliant instruments even as the industry is able to increase capacity to cater to the demand………………………………………..Full Article: Source

Resolution Ltd has disposed of its 30% stake in AmLife, AmFamily Takaful to its joint venture partner, AmBank Group for RM245mil. It said on Monday following the sale and the benefit of a currency hedge, Friends Life Group plc would receive about £50mil cash.
“Following discussions with the AmBank Group, Friends Life concluded that the business required a greater level of short term investment and commitment to meet its growth potential than was appropriate for Resolution to provide,” it said………………………………………..Full Article: Source