Total sukuk issuance in 2012 reached $131bn, an increase of 54 percent on the previous year, according to a new report by KFH-Research. The report said that Malaysia and the ringgit continued to dominate the market of sovereign sukuk issuance while other top countries in sukuk issuance were Saudi Arabia, UAE, and Indonesia.
KFH-Research said sukuk issuances continued “at decent levels” in December closing off a “tremendous year” for the Islamic capital markets………………………………………..Full Article: Source

The issuance of Islamic bonds is currently being pushed by the Securities and Exchange Commission (SEC), which will help the local market slowly achieve international standard. Islamic bonds are a tradable Shariah-compliant capital market products providing medium to long-term fixed or variable rates of return.
SEC Commissioner Juanita Cueto told reporters in a briefing that they are very eager to push Islamic bonds. “We are studying it now, the Islamic bonds, which have been very popular in Malaysia and we are already studying the mechanics for that,” she said………………………………………..Full Article: Source

Sime Darby Bhd, through its wholly-owned subsidiary, Sime Darby Global Bhd, has received approval from the Securities Commission for its proposed US$1.5bil multi-currency sukuk issuance programme.
This sukuk programme is a significant landmark it is Asia’s first internationally rated multi-currency sukuk programme by an Asian corporate under the syariah principle of Ijarah, according to Sime ………………………………………..Full Article: Source

Sime Darby Bhd’s US$1.5 billion (RM4.5 billion) multi-currency sukuk programme has been rated higher than Malaysia’s sovereign rating by two of the world’s top rating houses.
Standard & Poor’s Ratings Services (S&P) and Fitch Ratings Ltd gave the sukuk an “A” rating each while Moody’s Investor Service Inc gave it an “A3″. S&P and Fitch had given Malaysia’s sovereign rating an “A-” each while Moody’s rated it an “A3″………………………………………..Full Article: Source

The sovereign sukuk law is intended to organise the financing of the government, state budget, national projects and public institutions. It was released by the government but opposed by Al-Azhar and Islamic parties.
The cabinet has referred the draft sukuk law to the newly-appointed Finance Minister Al-Morsy Hegazy to be reviewed in coordination with the ministries of investment and justice, the grand mufti of Al-Azhar, the Shura Council, the Islamic studies congregation and Dar Al-Iftaa………………………………………..Full Article: Source

MARC has assigned long-term and short-term programme ratings of AA-IS and MARC-1IS respectively to Malakoff Power’s (MPower) MYR 5.6 billion Murabahah Securities Facility and MYR 300 million Islamic Commercial Paper (ICP) Programme (collectively referred as Sukuk Murabahah Facility); the outlook on the ratings is stable.
MPower is a wholly-owned subsidiary of Malakoff Corporation Berhad (Malakoff), an investment holding company that has, via its subsidiaries and associates, effective power generating capacity of 5,020 megawatt (MW) in the country……………………………………….Full Article: Source

ALIF to offer Shari’ah-compliant custody and administration service as total assets under management hit estimated $5.3 billion with growing number of Middle East investment funds. Luxembourg ranks fifth worldwide by number of Shari’ah-compliant funds and the number of Middle East-based managers launching investment funds in Luxembourg has increased constantly.
There are 41 regulated Shari’ah-compliant investment funds domiciled in Luxembourg and total Assets under Management in Shari’ah-compliant funds are estimated at $5.3 billion………………………………………..Full Article: Source

A good year in investment banking is not what it used to be. Investment bankers in the Middle East had the best year for mergers and acquisitions since 2008 last year amid a record year for sukuk sales.
But fees have failed to keep up and are less than half that of 2008 across all business lines, according to data from Thomson Reuters. “Certainly, the margins are coming in a lot,” said one banker at a regional investment bank, who asked not to be identified. “But 2012 was better than 2011.”……………………………………….Full Article: Source

Dr. Ahmad Mohamed Ali, President of the IDB Group , has expressed delight as the Group’s financing reached an all-time high of USD 9.8 billion in 1433H (2012) i.e. an increase of 18% over that of 1432H (2011), which stood at USD 8.3 billion.
He stated that the IDB Group increased its financing for its member countries significantly in a bid to satisfy their growing developmental needs and to arrest the adverse effects of recurrent financial crises on the economies of many IDB member countries. The IDB financing continued to grow annually even during and after the global financial crises. Thus, while the Group’s financing stood at USD 5.4 billion only in 1429H (2008), it had thereafter achieved an 81% increase over the five past years. (Press Release)

The Islamic Development Bank is likely to provide US$1.6 billion for Bangladesh’s development and reduce poverty in four years until 2016, officials said. Economic Relations Division (ERD) officials said the Jeddah-based lender IDB is working with them to finalise a Member Country Partnership Strategy (MCPS) to offer the financial support to Bangladesh.
“The strategy is likely to be finalised within this month. If it is done the IDB will provide the billion-dollar plus assistance for developing different sectors of the country,” additional secretary of ERD Kazi Shofiqul Azam said………………………………………..Full Article: Source

Gatehouse Bank, a UK-based Islamic bank with an asset size of $2 billion, is seeking to attract Oman’s Sharia-compliant institutions to invest their funds in the UK and vice-versa. “We are interested in having relations with all Islamic banks. We have treasury services, capital market products like sukuk and real estate financing,” Richard Thomas, Chief Executive Officer, Gatehouse Bank, told Times of Oman.
The Gatehouse Bank official will meet officials of Bank Nizwa and Bank Muscat for exploring avenues of cooperation tomorrow. Saying that London has a strong Islamic banking sector, he noted that Gatehouse Bank is interested in helping Omanis who want to invest overseas and interested in bringing treasury funds to the Sultanate………………………………………..Full Article: Source

Qatar First Investment Bank ( QFIB ), Qatar’s first independent Shari’ah compliant investment bank authorized by the QFC Regulatory Authority (QFCRA) and Saudi Printing & Packaging Co. (SPPC) announced the successful completion of the Emirates National Factory of Plastic Industries (ENPI Group) deal.
QFIB ’s 71.3% stake, a majority share in ENPI, was sold to SPPC, a publically traded Saudi firm specialized in providing printing packaging solutions. ENPI Group is the leading producer of flexible and rigid plastic packaging solutions having strong manufacturing base including 8 factories in Sharjah, Abu Dhabi and Riyadh. (Press Release)

QIB, one of the largest Islamic banks in Qatar, is introducing specific sector-related packages to meet the different needs of SMEs, starting with the key sectors of construction, trading and services.
The Islamic bank is launching a new programme aimed specifically at providing special services to the country’s small and medium sized enterprises (SMEs), and offering them exclusive financial benefits, guidance and advice………………………………………..Full Article: Source

The basic difference between Islamic and non-Islamic banks is that all Islamic Banks are required to follow Sharia principles in structuring their products and services for their customers.
Whereas Current, Savings & Time Deposits, Loans & Advances may appear to be similarly priced by both types of banks, all products and services offered by Islamic Banks will be based upon and structured in line with Islamic Modes of Financing like Mudaraba, Murabaha, Musharaka, Wakala and others………………………………………..Full Article: Source

Dubai Group, a holding company owned by the emirate’s ruler with interests in property and financial services, and four international banks have agreed to resolve their legal differences in a push to finish a $10 billion debt restructuring, two people familiar with the matter said.
Commerzbank, Royal Bank of Scotland, Standard Bank and Egypt’s Commercial International Bank in September took legal action against Dubai Group after nearly two years of fruitless debt negotiations. The offer relates to a $1.5 billion Islamic syndicated loan to Dubai Group in 2008 that includes 18 other banks. All remaining banks involved in the loan need to approve the new offer to the four banks for it to go through………………………………………..Full Article: Source

The CBN Governor Mallam Sanusi Lamido Sanusi on January 10, 2013 inaugurated the Financial Regulation Advisory Council of Experts (FRACE) at the CBN Head Office in Abuja.
The Governor in his remarks said that the establishment of the FRACE was part of the provisions of the CBN Guidelines for the regulation and supervision of institutions offering non-interest financial services based on compliance to the principles of Islamic commercial jurisprudence………………………………………..Full Article: Source

After more than a decade of coordination, Malaysia’s Islamic finance services (IFS) sector now boasts of the world’s largest sukuk market, second-largest takaful market and a major Islamic banking and securities industry.
Malaysia had also established itself as an intellectual capital in IFS globally, with many research and training initiatives in syariah law as well as finance that were unmatched elsewhere, Oxford Business Group (OBG) stated in its report recently………………………………………..Full Article: Source

As I was on DIFC’s Islamic Finance Advisory Council (2007) and presently on Malaysia’s Securities Commission International Islamic Advisory Council, hence, a number of colleagues have asked me about the recent announcement by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
Shaikh Mohammed, stated: “Our cosmopolitan outlook to doing business continues to be our economy’s driving force. Adopting a modern and scientific framework for Islamic economies worldwide, here in Dubai, meets the demand from local, regional and international investors for a central hub to invest, grow and do business.”……………………………………….Full Article: Source

The Sharia-compliant takaful (insurance) industry is on the rise, with the sector forecast to be worth US$12 billion (Dh44bn) at the end of last year, according to a report by Ernst & Young. The UAE is one of the biggest markets for takaful and it is available to Muslims and non-Muslims alike. Abdulfattah Nasri explains what it’s about and why it could be a good option for people seeking ethical insurance products.
The spreading influence of Islamic banking and insurance products is notable and of increasing interest across the world. It is now possible to get Sharia-compliant cover - known as takaful - for just about every area of risk………………………………………..Full Article: Source

Middle Eastern investment banking fees reached $536.1 million during 2012, a 19 percent increase over 2011, according to a report from Thomson Reuters. It also said M&A (mergers and acquisitions) transactions with Middle Eastern targets reached $20.0 billion last year, double the activity seen in the region during 2011 ($9.8 billion), and the strongest annual total since 2008.
Islamic debt issuance reached $37.1 billion from 91 issues during 2012, an increase of 11 percent from 2011, and marking the all-time strongest year for Islamic debt activity. The top Islamic debt issuer nation during 2012 was Malaysia with 48 percent of the activity, while the strongest industry was the financials sector………………………………………..Full Article: Source